Document:

Exhibit 4.13

      

      
        

        

        COMPENSATION POLICY

        GAMIDA CELL LTD.

        

        

      

      
        Compensation Policy for Executive Officers and Directors

        (As Adopted by the Shareholders on October 24, 2018, Effective as of October 26, 2018)

        

        

      

      	 	
              Page

            
	 	 
	
              A. Overview and Objectives

            	
              1

            
	 	 
	
              B. Base Salary and Benefits

            	
              3

            
	 	 
	
              C. Cash Bonuses

            	
              5

            
	 	 
	
              D. Equity Based Compensation

            	
              7

            
	 	 
	
              E. Retirement and Termination of Service Arrangements

            	
              8

            
	 	 
	
              F. Exculpation, Indemnification and Insurance

            	
              9

            
	 	 
	
              G. Arrangements upon Change of Control

            	
              10

            
	 	 
	
              H. Board of Directors Compensation

            	
              11

            
	 	 
	
              I. Miscellaneous

            	
              11

            

      

      

      
        
          	
                  A.

                	
                  Overview and Objectives

                

        

        

        

      

      
        
          	1.	
                  Introduction

                

        

      

      

      

      This document sets forth the Compensation Policy for Executive Officers and Directors (this “Compensation Policy” or “Policy”) of Gamida Cell Ltd. (“Gamida” or the “Company”), in accordance with the requirements of the Companies Law, 5759-1999 (the “Companies Law”).

      

      

      Compensation is a key component of Gamida’s overall human capital strategy to attract, retain, reward, and motivate highly skilled individuals that will
          enhance Gamida’s value and otherwise assist Gamida to reach its long-term goals. Accordingly, the structure of this Policy is established to tie the compensation of each officer to Gamida’s goals and performance.

       

      

      For purposes of this Policy, “Executive Officers” shall mean “Office Holders” as such term is defined in Section 1 of the Companies Law, excluding, unless otherwise expressly indicated herein, Gamida’s directors.

       

      

      This policy is subject to applicable law and is not intended, and should not be interpreted as limiting or derogating from, provisions of applicable law
          to the extent not permitted.

       

      

      This Policy shall apply to compensation agreements and arrangements which will be approved after the date on which this Policy is approved by the
          shareholders of Gamida and shall serve as Gamida’s Compensation Policy for the maximum period of time permitted by any applicable law, commencing as of the closing of the initial public offering of Gamida’s shares.

       

      

      The Compensation Committee and the Board of Directors of Gamida (the “Board”)

          shall review and reassess the adequacy of this Policy from time to time, as required by the Companies Law.

       

        

      
        
          

      

      
      
        
          	2.	
                  Objectives

                

        

      

      

      

      Gamida’s objectives and goals in setting this Policy are to attract, motivate and retain highly experienced leaders who will contribute to Gamida’s
          success and enhance shareholder value, while demonstrating professionalism in a highly achievement-oriented culture that is based on merit and rewards excellent performance in the long term, and embedding Gamida’s core values as part of a
          motivated behavior. To that end, this Policy is designed, among others:

      

      

      
        
          	2.1.	
                  To closely align the interests of the Executive Officers with those of Gamida’s shareholders in order to enhance shareholder value;

                

        

      

       

      

      
        
          	2.2.	
                  To align a significant portion of the Executive Officers’ compensation with Gamida’s short and long-term goals and performance;

                

        

      

       

      

      
        
          	2.3.	
                  To provide the Executive Officers with a structured compensation package, including competitive salaries, performance-motivating cash and equity incentive programs and
                      benefits, and to be able to present to each Executive Officer an opportunity to advance in a growing organization;

                

        

      

       

      

      
        
          	2.4.	
                  To strengthen the retention and the motivation of Executive Officers in the long term;

                

        

      

       

      

      
        
          	2.5.	
                  To provide appropriate awards in order to incentivize superior individual excellency and corporate performance; and

                

        

      

       

      

      
        
          	2.6.	
                  To maintain consistency in the way Executive Officers are compensated.

                

        

      

      

      

      This Compensation Policy was prepared taking into account the Company’s nature, size and business and financial characteristics.

      

      

      
        
          	3.	
                  Compensation Instruments

                

        

      

      

      

      Compensation instruments under this Policy may include the following:

      

      

      
        
          	3.1.	
                  Base salary;

                

        

      

      

      

      
        
          	3.2.	
                  Benefits;

                

        

      

      

      

      
        
          	3.3.	
                  Cash bonuses (short-to-medium term incentive);

                

        

      

       

      

      
        
          	3.4.	
                  Equity based compensation (medium-to-long term incentive); and

                

        

      

       

      

      
        
          	3.5.	
                  Retirement and termination terms.

                

        

      

      

      

      
        
          	4.	
                  Overall Compensation - Ratio Between Fixed and Variable Compensation

                

        

      

      

      

      
        
          	4.1.	
                  This Policy aims to balance the mix of “Fixed Compensation” (comprised of base
                      salary and benefits) and “Variable Compensation” (comprised of cash bonuses and equity based compensation, which are based on the fair value on
                      the date of grant, calculated annually, on a linear basis, excluding adjustment period/retirement bonuses, granted in accordance with section 16 below) in order to, among others, appropriately incentivize Executive Officers to meet
                      Gamida’s short and long term goals while taking into consideration the Company’s need to manage a variety of business risks.

                

        

      

      

      

      
        
          	4.2.	
                  The total Variable Compensation of each Executive Officer shall not exceed 90% of the total compensation package of such Executive Officer on an annual basis. The Board
                      believes that such range expresses the appropriate compensation mix in the event that all performance objectives are achieved and assumes that all compensation elements are granted with respect to a given year.

                

           

          

        

      

      
        -2-

        
          

      

      
        
          	4.3.	
                  It should be clarified, that the Fixed Compensation may constitute 100% of the total compensation package for an Executive Officer in any year (under circumstances in
                      which a variable component will not be approved for that year and/or in the event of a failure to meet the set goals, if and when determined).

                

        

      

      

      

      
        
          	5.	
                  Inter-Company Compensation Ratio

                

        

      

      

      

      
        
          	5.1.	
                  In the process of drafting this Policy, Gamida’s Board and Compensation Committee have examined the ratio between employer cost associated with the engagement of the
                      Executive Officers ((the “Executive Officers Cost”), including directors, and the average and median employer cost associated with the engagement
                      of Gamida’s other employees, including contractor employees as defined in the Companies Law (the “Other Employees Cost” and the “Ratio”, respectively).

                

        

      

      

      

      
        
          	5.2.	
                  The Board believes that the current Ratio does not adversely impact the work environment in Gamida. The

                      possible ramifications of the Ratio on the daily working environment in Gamida were examined and will continue to be examined by Gamida from time to time in order to ensure that levels of executive compensation, as compared to the
                      overall workforce will not have a negative impact on work relations in Gamida.

                

        

      

      

      

      
        
          	
                  B.

                	
                  Base Salary Benefits

                

        

        

        

      

      
        
          	6.	
                  Base Salary

                

        

      

      

      

      
        
          	6.1.	
                  A Base Salary provides stable compensation to Executive Officers and allows Gamida to attract and retain competent executive talent and maintain a stable management team.
                      The base salary varies among Executive Officers, and is individually determined according to the educational background, prior vocational experience, qualifications, company’s role, business responsibilities and the past performance
                      of each Executive Officer.

                

        

      

      

      

      
        
          	6.2.	
                  Since a competitive base salary is essential to Gamida’s ability to attract and retain highly skilled professionals, Gamida will seek to establish a base salary that is
                      competitive with base salaries paid to Executive Officers in a peer group of companies relevant to Gamida’s field of business, while considering, among others, Gamida’s size and field of operation and the geographical location of the
                      employed Executive Officer. To that end, Gamida shall utilize as a reference, comparative market data and practices, which may include among others a compensation survey that compares and analyses the level of the overall compensation
                      package offered to an Executive Officer of the Company with compensation packages in similar positions to that of the relevant Executive Officer in other companies operating in business sectors that are similar in their
                      characteristics to Gamida’s, as much as possible, while considering, among others, such companies’ size and characteristics including their revenues, profitability rate, number of employees and operating arena (in Israel or globally).
                      Such compensation survey may be conducted internally or through an external consultant.

                

        

      

       

      

      
        
          	6.3.	
                  The Compensation Committee and the Board may periodically consider and approve base salary adjustments for Executive Officers. The main considerations for salary
                      adjustment are similar to those used in initially determining the base salary, but may also include among others, educational background, prior vocational experience, expertise and qualifications, change of role, business authorities
                      and responsibilities, past performance and previous compensation arrangements with such Executive Officer, recognition for professional achievements, regulatory or contractual requirements, budgetary constraints or market trends. The
                      Compensation Committee and the Board will also consider the previous and existing compensation arrangements of the Executive Officer whose base salary is being considered for adjustment. When determining the Base Salary, the Company
                      may also decide to consider, at the sole discretion of the Compensation Committee and the Board and as required, the prevailing pay levels in the relevant market, Base Salary and the total compensation package of comparable Executive
                      Officers in the Company, the proportion between the Executive Officer’s compensation package and the salaries of other employees in the Company and specifically the median and average salaries and the effect of such proportions on the
                      work relations in the Company.

                

           

          

        

      

      
        -3-

        
          

      

      
        
          	7.	
                  Benefits

                

        

      

      

      

      
        
          	7.1.	
                  In addition to the Base Salary, the following benefits may be granted to the Executive Officers
                      (subject to any applicable approval procedures), in order, among other things, to comply with legal requirements. It shall be clarified, that the list below is an open list and Gamida (subject to the applicable required approvals) may
                      grant to its Executive Officers other similar, comparable or customary benefits, subject to the applicable law.

                

        

      

      

      

      
        
          	

                	7.1.1.	
                  Vacation days in accordance with market practice and the applicable law up to a cap of 30 days per annum;

                

        

      

      

      

      
        
          	

                	7.1.2.	
                  Sick days in accordance with market practice and the applicable law; However, the Company may decide
                      to cover sick days from the first day;

                

        

      

      

      

      
        
          	

                	7.1.3.	
                  Convalescence pay according to applicable law;

                

        

      

      

      

      
        
          	

                	7.1.4.	
                  Medical Insurance in accordance with market practice and the applicable law;

                

        

      

       

      

      
        
          	

                	7.1.5.	
                  With respect to Executive Officers employed in Israel, Monthly remuneration for a study fund, as allowed by applicable law and with reference to Gamida’s practice and the
                      common market practice;

                

        

      

       

      

      
        
          	

                	7.1.6.	
                  Gamida shall contribute on behalf of the Executive Officer to an managers’ insurance policy or a pension fund, as allowed by applicable law and with reference to Gamida’s
                      policies and procedures and the common market practice; and

                

        

      

       

      

      
        
          	

                	7.1.7.	
                  Gamida shall contribute on behalf of the Executive Officer towards work disability insurance, as allowed by applicable law and with reference to Gamida’s policies and
                      procedures and to the common market practice.

                

        

      

       

      

      
        
          	7.2.	
                  Non-Israeli Executive Officers may receive other similar, comparable or customary benefits as applicable in the relevant jurisdiction in which they are employed. Such
                      customary benefits shall be determined based on the methods described in Section 6.2 of this Policy (with the necessary changes).

                

        

      

       

      

      
        
          	7.3.	
                  In the event of relocation of an Executive Officer to another geography, such Executive Officer may receive other similar, comparable or customary benefits as applicable
                      in the relevant jurisdiction in which he or she is employed. Such benefits shall include reimbursement for out of pocket one-time payments and other ongoing expenses, such as housing allowance, car allowance, and home leave visit, etc.

                

        

      

       

      

      
        
          	7.4.	
                  Gamida may offer additional benefits to its Executive Officers, which will be comparable to customary market practices, including but not limited to: cellular and land
                      line phone benefits, company car and travel benefits, reimbursement of business travel including a daily stipend when traveling and other business related expenses, insurances, other benefits (such as newspaper subscriptions, academic
                      and professional studies), etc., provided, however, that such additional benefits shall be determined in accordance with Gamida’s policies and procedures.

                

           

          

        

      

      
        -4-

        
          

      

      
        
          	7.5.	
                  Gamida may reimburse its Executive Officers for reasonable work-related expenses incurred as part of their activities, including without limitations, meeting
                      participation expenses, reimbursement of business travel, including a daily stipend when traveling and accommodation expenses.

                

        

      

      

      

      
        
          	7.6.	
                  At the discretion of the Compensation Committee and the Board (and with respect to the CEO- also the Company’s general meeting of shareholders), Gamida may grant a newly
                      recruited Executive Officer a signing bonus. Such bonus may be granted in cash, equity or a combination of both. The signing bonus will not exceed: (1) 50% of such Executive Officer’s annual Base Salary, if the signing bonus is
                      granted in cash; (2) 100% of such Executive Officer’s annual Base Salary, if the signing bonus is granted by equity; (3) In case the signing bonus is a combination of cash and equity, its limit shall be proportional to the cash and
                      equity components, calculated in accordance with the ratios mentioned in sections (1) and (2) above.

                

        

      

      
        

        

        
          	
                  C.

                	
                  Cash Bonuses

                

        

        

        

      

      
        
          	8.	
                  Annual Cash Bonuses – The Objective

                

        

      

      

      

      
        
          	8.1.	
                  The Company (subject to the approvals of the Compensation Committee and the Board, and with respect to the CEO- also the Company’s general meeting of shareholders) may
                      grant cash bonuses to its Executive Officers on a quarterly or annually basis, or on a shorter or longer period basis, in accordance with the principles detailed below.

                

        

      

      

      

      
        
          	8.2.	
                  Compensation in the form of an annual cash bonus is an important element in aligning the Executive Officers’ compensation with Gamida’s objectives and business goals.
                      Therefore, a pay-for-performance element, as payout eligibility and levels are determined based on actual financial and operational results, as well as individual performance.

                

        

      

      

      

      
        
          	8.3.	
                  An annual cash bonus may be awarded to Executive Officers upon the attainment of pre-set periodical objectives and individual targets determined by the Compensation
                      Committee (and, if required by law, by the Board) at the beginning of each calendar year, or upon engagement, in case of newly hired Executive Officers, taking into account Gamida’s short and long-term goals, as well as its compliance
                      and risk management policies. The Compensation Committee and the Board may also determine any applicable minimum thresholds that must be met for entitlement to the annual cash bonus (all or any portion thereof) and the formula for
                      calculating any annual cash bonus payout, with respect to each calendar year, for each Executive Officer. In special circumstances, as determined by the Compensation Committee and the Board (e.g., regulatory changes, significant
                      changes in Gamida’s business environment, a significant organizational change and a significant merger and acquisition events), the Compensation Committee and the Board may modify the objectives and/or their relative weights during
                      the calendar year.

                

        

      

      

      

      
        
          	8.4.	
                  In the event the employment of an Executive Officer is terminated prior to the end of a fiscal year, the Company may pay such Executive Officer a full annual cash bonus
                      or a prorated one. Such bonus will become due on the same scheduled date for annual cash bonus payments by the Company.

                

        

      

       

      

      
        -5-

        
          

      

      
        
          	9.	
                  Annual Cash Bonuses - The Formula

                

        

      

      

      

      Executive Officers other than the CEO

      

      

      
        
          	9.1.	
                  The annual cash bonus of Gamida’s Executive Officers, other than the chief executive officer (the “CEO”), will be based on performance objectives and a discretionary evaluation of the Executive Officer's overall performance by the CEO and subject to minimum thresholds. The performance objectives will be
                      recommended by Gamida’s CEO and approved by the Compensation Committee (and, if required by law, by Gamida’s Board) at the commencement of each calendar year (or upon engagement, in case of newly hired Executive Officers or in special
                      circumstances as indicated in Section 8.3 above) on the basis of, but not limited to, company and individual objectives. Notwithstanding the above, the Company may determine that, with respect to any Executive Officer subordinated to
                      the CEO, which does not serve as a director, a portion or all of his or her annual cash bonus will be based on the evaluation of the CEO.

                

        

      

      

      

      
        
          	9.2.	
                  The target annual cash bonus that an Executive Officer, other than the CEO, will be entitled to receive for any given calendar year, will not exceed 50% of such Executive
                      Officer’s annual base salary.

                

        

      

       

      

      
        
          	9.3.	
                  The maximum annual cash bonus including for overachievement performance that an Executive Officer, other than the CEO, will be entitled to receive for any given calendar
                      year, will not exceed 100% of such Executive Officer’s annual base salary.

                

        

      

       

      

      CEO

       

      

      
        
          	9.4.	
                  The annual cash bonus of Gamida’s CEO will be mainly based on performance measurable objectives and subject to minimum thresholds. Such performance measurable objectives
                      will be determined annually by Gamida’s Compensation Committee (and, if required by law, by Gamida’s Board) at the commencement of each calendar year (or upon engagement, in case of newly hired CEO or in special circumstances as
                      indicated in Section 8.3 above) on the basis of, but not limited to, company and personal objectives. These performance measurable objectives, which include the objectives and the weight to be assigned to each achievement in the
                      overall evaluation, will be categorized as described below:

                

        

      

       

      

      
        
          	

                	9.4.1.	
                  Between 40%-60% will be based on overall company performance measurable objectives;

                

        

      

       

      

      
        
          	

                	9.4.2.	
                  Between 20%-50% will be based on goals set forth in the Company’s annual operating plan and long-term plan;

                

        

      

      

      

      
        
          	

                	9.4.3.	
                  The less significant part of the annual cash bonus granted to Gamida’s CEO, and in any event not more than 25% of the annual cash bonus, may be based on a discretionary
                      evaluation of the CEO’s overall performance by the Compensation Committee and the Board.

                

        

      

       

      

      
        
          	9.5.	
                  The target annual cash bonus that the CEO will be entitled to receive for any given calendar year, will not exceed 100% of his or her annual base salary.

                

        

      

      

      

      
        
          	9.6.	
                  The maximum annual cash bonus including for overachievement performance that the CEO will be entitled to receive for any given calendar year, will not exceed 150% of his
                      or her annual base salary.

                

        

      

      

      

      
        -6-

        
          

      

      
        
          	10.	
                  Other Bonuses

                

        

      

      

      

      
        
          	10.1.	
                  Special Bonus. Gamida may grant its Executive Officers a special bonus as an award for
                      special achievements (such as in connection with mergers and acquisitions, offerings, achieving target budget or business plan under exceptional circumstances or special recognition in case of retirement) at the CEO’s discretion (and
                      in the CEO’s case, at the Board’s discretion), subject to any additional approval as may be required by the Companies Law (the “Special Bonus”).
                      The Special Bonus will not exceed 30% of the Executive Officer’s total compensation package on an annual basis.

                

        

      

       

      

      
        
          	10.2.	
                  Signing Bonus. Gamida may grant a newly recruited Executive Officer a signing bonus at the
                      CEO’s discretion (and in the CEO’s case, at the Board’s discretion), subject to any additional approval as may be required by the Companies Law (the “Signing

                        Bonus”). The Signing Bonus will not exceed three (3) monthly entry base salaries of the Executive Officer.

                

        

      

       

      

      
        
          	10.3.	
                  Relocation Bonus. Gamida may grant its Executive Officers a special bonus in the event of
                      relocation of an Executive Officer to another geography (the “Relocation Bonus”). The Relocation bonus will include customary benefits associated with such relocation and its monetary value will not exceed 30% of the Executive Officer’s annual base salary.

                

        

      

      

      

      
        
          	11.	
                  Compensation Recovery (“Clawback”)

                

        

      

      

      

      
        
          	11.1.	
                  In the event of an accounting restatement, Gamida shall be entitled to recover from its Executive Officers the bonus compensation in the amount in which such bonus
                      exceeded what would have been paid under the financial statements, as restated (“Compensation

                        Recovery”(, provided that a claim is made by Gamida prior to the third anniversary of fiscal year end of the restated financial statements.

                

        

      

       

      

      
        
          	11.2.	
                  Notwithstanding the aforesaid, the compensation recovery will not be triggered in the following events:

                

        

      

       

      

      
        
          	

                	11.2.1.	
                  The financial restatement is required due to changes in the applicable financial reporting standards;

                

        

      

       

      

      
        
          	

                	11.2.2.	
                  The Compensation Committee has determined that Clawback proceedings in the specific case would be impossible, impractical or not commercially or legally efficient; or

                

        

      

      

      

      
        
          	

                	11.2.3.	
                  The amount to be paid under the clawback proceedings is less than 10% of the relevant bonus received by the Executive Officer.

                

        

      

       

      

      
        
          	11.3.	
                  Nothing in this Section 11 derogates from any other “Clawback” or similar
                      provisions regarding disgorging of profits imposed on Executive Officers by virtue of applicable securities laws.

                

        

      

      

      

      
        
          	D.	
                  Equity Based Compensation

                

        

      

      

      

      
        
          	12.	
                  The Objective

                

        

      

      

      

      
        
          	12.1.	
                  The equity-based compensation for Gamida’s Executive Officers is designed in a manner consistent with the underlying objectives in determining the base salary and the
                      annual cash bonus, with its main objectives being to enhance the alignment between the Executive Officers’ interests with the long term interests of Gamida and its shareholders, and to strengthen the retention and the motivation of
                      Executive Officers in the long term. In addition, since equity-based awards are structured to vest over several years, their incentive value to recipients is aligned with longer-term strategic plans.

                

        

      

       

      

      
        -7-

        
          

      

      
        
          	12.2.	
                  The equity-based compensation offered by Gamida is intended to be in a form of share options and/or other equity based awards, such as RSUs, in accordance with the
                      Company’s equity incentive plan in place as may be updated from time to time.

                

        

      

      

      

      
        
          	12.3.	
                  All equity-based incentives granted to Executive Officers, other than performance-based incentives, shall be subject to vesting periods in order to promote long-term
                      retention of the awarded Executive Officers. Unless determined otherwise in a specific award agreement approved by the Compensation Committee and the Board, grants to Executive Officers, other than directors and performance-based
                      incentives, shall vest gradually over a period of between three (3) to five (5) years. Performance based incentives shall vest upon the Executive Officer achieving
                      of performance measurable objectives.

                

        

      

       

      

      
        
          	12.4.	
                  All other terms of the equity awards shall be in accordance with Gamida’s incentive plans and other related practices and policies. Accordingly, the Board may, following
                      approval by the Compensation Committee, extend the period of time for which an award is to remain exercisable and make provisions with respect to the acceleration of the vesting period of any Executive Officer’s awards, including,
                      without limitation, in connection with a corporate transaction involving a change of control, subject to any additional approval as may be required by the Companies Law.

                

        

      

      

      

      
        
          	13.	
                  General guidelines for the grant of awards

                

        

      

      

      

      
        
          	13.1.	
                  The equity-based compensation shall be granted from time to time and be individually determined and awarded according to the performance, educational background, prior
                      business experience, qualifications, role and the personal responsibilities of the Executive Officer.

                

        

      

       

      

      
        
          	13.2.	
                  The fair market value of the equity-based compensation for the Executive Officers will be determined according to acceptable valuation practices at the time of grant
                      based on a straight line approach.

                

        

      

      

      

      
        
          	E.	
                  Retirement and Termination of Service Arrangements

                

        

      

      

      

      
        
          	14.	
                  Advanced Notice Period

                

        

      

      

      

      
        
          	14.1.	
                  Gamida may provide an Executive Officer, pursuant to an Executive Officer’s employment agreement and
                        according to the Company’s decision per each case, a prior notice of termination of up to six (6) months, except for the CEO whose prior notice may be of up to twelve (12) months (the “Advance Notice Period”), during which the Executive Officer may be entitled to all of the compensation
                        elements, and to the continuation of vesting of his/her equity awards.

                

        

      

      

      

      
        
          	14.2.	
                  During the Advance Notice Period, an Executive Officer will be required to keep performing his/her duties pursuant to his/her agreement with the Company, unless the
                      Company has waived the Executive Officer’s services to the Company during the Advance Notice Period and pay the amount payable in lieu of notice, plus the value of benefits.

                

        

      

      

      

      
        
          	15.	
                  Adjustment Period

                

        

      

      

      

      Gamida may provide an additional adjustment period to an Executive Officer, other than the CEO, according to his/her
          seniority in the Company, his/her contribution to the Company’s goals and achievements and the circumstances of retirement and to the CEO, during which the Executive Officer may be entitled to all of the compensation elements, and to the
          continuation of vesting of his/her options (the “Additional Adjustment Period”). The maximum adjustment period/retirement bonus that may be paid to each Executive Officer shall be up to six (6) month Base Salaries and may only be granted to Executive Officers who have served in the Company for at least
          one year.

      

      

      
        -8-

        
          

      

      
        
          	16.	
                  Additional Retirement and Termination Benefits

                

        

      

      

      

      Gamida may provide additional retirement and terminations benefits and payments as may be required by applicable law (e.g.,
          mandatory severance pay under Israeli labor laws), or which will be comparable to customary market practices.

      

      

      
        
          	17.	
                  Non-Compete Grant

                

        

      

      

      

      Upon termination of employment and subject to applicable law, Gamida may grant to its Executive Officers a non-compete grant as an
          incentive to refrain from competing with Gamida for a defined period of time. The terms and conditions of the Non-Compete grant shall be decided by the Board and shall not exceed such Executive Officer’s monthly base salary multiplied by twelve
          (12).

      

      

      
        
          	18.	
                  Cap for Retirement and Termination of Service Arrangements

                

        

      

      

      

      The maximum non-statutory retirement and termination of service arrangements payment to be granted to an Executive Officer will not
          exceed 200% of his or her annual base salary.

      

      

      
        	
                F.

              	
                Exculpation, Indemnification and Insurance

              

      

      

      

      
        
          	19.	
                  Exculpation

                

        

      

      

      

      Subject to the provisions of the Companies Law, the Company may releases, in advance, any director or Executive Officer from
          liability towards the Company for any damage that arises from the breach of the director or Executive Officer duty of care to the Company (within the meaning of such terms under Sections 252 and 253 of the Companies Law), other than breach of the
          duty of care towards the Company in a distribution (as such term is defined in the Companies Law).

      

      

      
        
          	20.	
                  Insurance and Indemnification

                

        

      

      

      

      
        
          	20.1.	
                  Gamida may indemnify its directors and Executive Officers to the fullest extent permitted by applicable law, for any liability and expense that may be imposed on the
                      director or the Executive Officer, as provided in the Indemnity Agreement between such individuals and Gamida, all subject to applicable law and the Company’s articles of association.

                

        

      

       

      

      
        
          	20.2.	
                  Gamida will provide directors’ and officers’ liability insurance (the “Insurance Policy”) for its directors and Executive Officers as follows:

                

        

      

       

      

      
        
          	

                	20.2.1.	
                  The annual premium to be paid by the Gamida shall not exceed $500,000 ;

                

        

      

      

      

      
        
          	

                	20.2.2.	
                  The limit of liability of the insurer shall not exceed the greater of $50 million or 25% of the Company’s shareholders equity based on the most recent financial
                      statements of the Company at the time of approval by the Compensation Committee; and

                

        

      

       

      

      
        
          	

                	20.2.3.	
                  The Insurance Policy, as well as the limit of liability and the premium for each extension or renewal shall be approved by the Compensation Committee (and, if required by
                      law, by the Board) which shall determine that the sums are reasonable considering Gamida’s exposures, the scope of coverage and the market conditions and that the Insurance Policy reflects the current market conditions, and it shall
                      not materially affect the Company’s profitability, assets or liabilities.

                

        

      

       

      

      
        -9-

        
          

      

      
        
          	20.3.	
                  Upon circumstances to be approved by the Compensation Committee (and, if required by law, by the Board), Gamida shall be entitled to enter into a “run off” Insurance
                      Policy of up to seven (7) years, with the same insurer or any other insurance, as follows:

                

        

      

       

      

      
        
          	

                	20.3.1.	
                  The limit of liability of the insurer shall not exceed the greater of $50 million or 25% of the Company’s shareholders equity based on the most recent financial
                      statements of the Company at the time of approval by the Compensation Committee;

                

        

      

       

      

      
        
          	

                	20.3.2.	
                  The annual premium shall not exceed 400% of the last paid annual premium; and

                

        

      

       

      

      
        
          	

                	20.3.3.	
                  The Insurance Policy, as well as the limit of liability and the premium for each extension or renewal shall be approved by the Compensation Committee (and, if required by
                      law, by the Board) which shall determine that the sums are reasonable considering the Company’s exposures covered under such policy, the scope of cover and the market conditions, and that the Insurance Policy reflects the current
                      market conditions and that it shall not materially affect the Company’s profitability, assets or liabilities.

                

        

      

       

      

      
        
          	20.4.	
                  Gamida may extend the Insurance Policy in place to include cover for liability pursuant to a future public offering of securities as follows:

                

        

      

       

      

      
        
          	

                	20.4.1.	
                  The additional premium for such extension of liability coverage shall not exceed 50% of the last paid annual premium; and

                

        

      

       

      

      
        
          	

                	20.4.2.	
                  The Insurance Policy, as well as the additional premium shall be approved by the Compensation Committee (and if required by law, by the Board) which shall determine that
                      the sums are reasonable considering the exposures pursuant to such public offering of securities, the scope of cover and the market conditions and that the Insurance Policy reflects the current market conditions, and it does not
                      materially affect the Company’s profitability, assets or liabilities.

                

        

      

      

      

      
        	
                G.

              	
                Arrangements upon Change of Control

              

      

      

      

      
        
          	21.	
                  The following benefits may be granted to the Executive Officers in addition to the benefits applicable in the case of any retirement or termination of service upon a “Change of Control”, following of which the employment of the Executive Officer is terminated or adversely adjusted in a material way:

                

        

      

      

      

      
        
          	

                	21.1.	
                  Vesting acceleration of outstanding options;

                

        

      

       

      

      
        
          	

                	21.2.	
                  Extension of the exercising period of options, restricted shares, restricted share units (RSUs) and/or other equity based awards for Gamida’s Executive Officer for a
                      period of up to five (5) years, following the date of employment termination; and

                

        

      

       

      

      
        
          	

                	21.3.	
                  Up to an additional six (6) months to the additional adjustment period. For avoidance of doubt, such Additional Adjustment Period shall be in addition to the Advance
                      Notice Period and Additional Adjustment Period pursuant to Sections 14 and 15 of this Policy.

                

        

      

       

      

      
        
          	

                	21.4.	
                  A cash bonus not to exceed 100% of the Executive Officer’s annual base salary in case of an Executive Officer other than the CEO and 150% in case of the CEO.

                

        

      

      

      

      
        -10-

        
          

      

      
        
          	H.	
                  Board of Directors Compensation

                

        

      

      

      

      
        
          	22.	
                  All Gamida’s Board members shall be entitled to an equal annual and per-meeting compensation. Alternatively, Gamida’s Board members may receive only an annual payment with respect to their services on the Board and additional annual payments for serving on
                      board committees and as chairperson of the Board or its committees, without regard to their participation in meetings of the Board or its committees.

                

        

      

       

      

      
        
          	23.	
                  The compensation of the Company’s external directors, if elected, shall be in accordance with the Companies Regulations (Rules Regarding the Compensation and Expenses of
                      an External Director), 5760-2000, as amended by the Companies Regulations (Relief for Public Companies Traded in Stock Exchange Outside of Israel), 5760-2000, as such regulations may be amended from time to time (“Compensation of Directors Regulations”) and, in any event, the annual payment and the per-meeting payment shall not be greater than two (2) times the
                      maximal annual payment and per-meeting payment, respectively, allowed under the Compensation of Directors Regulations, in the case of Gamida.

                

        

      

      

      

      
        
          	24.	
                  The director’s cash fee per calendar year shall not exceed an annual cash fee in the amount of $120,000 plus VAT.

                

        

      

       

      

      
        
          	25.	
                  Notwithstanding the provisions of Sections 23 and 24 above, in special circumstances, such as in the case of a professional director, an expert director or a director who
                      makes a unique contribution to the Company, such director’s compensation may be different than the compensation of all other directors and maybe greater than the maximal amount allowed above.

                

        

      

      

      

      
        
          	26.	
                  Each member of Gamida’s Board, other than the chairperson, may be granted an annual equity-based compensation with an annual fair market value of up to $100,000. The
                      chairperson of the Board may be granted an annual equity-based compensation equal to the higher of (i) an annual fair market value of up to $100,000, or (ii) one percent (1%) of the fully diluted share capital of the Company.

                

        

      

      

      

      
        
          	27.	
                  In addition, members of Gamida’s Board may be entitled to reimbursement of expenses when traveling abroad on behalf of Gamida.

                

        

      

       

      

      
        
          	28.	
                  It is hereby clarified that the compensation stated under Section H will not apply to directors who serve as Executive Officers.

                

        

      

      

      

      
        
          	I.	
                  Miscellaneous

                

        

      

      

      

      
        
          	29.	
                  It is hereby clarified that nothing in this Policy shall be deemed to grant any of Gamida’s Executive Officers or employees or any third party any right or privilege in
                      connection with their employment by the Company. Such rights and privileges shall be governed by the respective personal employment agreements. The Board may determine that none or only part of the payments, benefits and perquisites
                      detailed in this Policy shall be granted, and is authorized to cancel or suspend a compensation package or part of it.

                

        

      

      

      

      
        
          	30.	
                  This Policy is subject to applicable law and is not intended, and should not be interpreted as limiting or derogating from, provisions of applicable law to the extent not
                      permitted, nor should it be interpreted as limiting or derogating from the Company’s Articles of Association.

                

        

      

      

      

      
        
          	31.	
                  This Policy is not intended to affect current agreements nor affect obligating customs (if applicable) between the Company and its Executive Officers as such may exist
                      prior to the approval of this Compensation Policy, subject to any applicable law.

                

           

          

        

      

      
        -11-

        
          

      

      
        
          	32.	
                  An Immaterial Change in the Terms of Employment of an Executive Officer other than the CEO may be approved by the CEO, provided that the amended terms of employment are
                      in accordance with this Compensation Policy. An “Immaterial Change in the Terms of Employment” means a change in the terms of employment of an
                      Executive Officer with an annual total cost to the Company not exceeding an amount equal to three (3) monthly gross salaries of such employee.

                

        

      

      

      

      
        
          	33.	
                  In the event that new regulations or law amendment in connection with Executive Officers and directors compensation will be enacted following the approval of this
                      Compensation Policy, Gamida may follow such new regulations or law amendments, even if such new regulations are in contradiction to the compensation terms set forth herein.

                

        

      

      

      

      
        
          	34.	
                  It should be clarified, that the compensation components detailed in this Policy do not relate to various components that the Company may provide to all or part of its
                      employees and/or its Executive Officers, such as: parking spaces, entry permits for its assets, reimbursement for meals and accommodation expenses, vacations, company events, etc.

                

        

      

      

      

      ***

       

        

      This Policy is designed solely for the benefit of Gamida and none of the provisions thereof are intended to provide any rights or
          remedies to any person other than Gamida.

       

        

      

        -12-aldr-ex1026_323.htm

Exhibit 10.26

 

 

 

 

November 2, 2018

 

Elisabeth A. Sandoval, M.B.A.

VIA EMAIL AND DOCUSIGN

 

 

Re:Transition Agreement 

 

Dear Elisabeth:

As you know, you have informed Alder BioPharmaceuticals, Inc. (the “Company”) of your desire to resign your employment, and we have been discussing the terms of your resignation.  This letter sets forth the terms of the transition agreement (the “Agreement”) that the Company is offering to you to aid in your employment transition.

	
 
	
1.
	
Transition Period.  

(a) Resignation.  As part of this Agreement, your employment will continue until March 31, 2019 (the “Separation Date”), unless your employment ends earlier pursuant to this section.  If your employment ends earlier than March 31, 2019 pursuant to this provision, the actual last day of your employment shall become the “Separation Date” for purposes of this Agreement.  (If you do not accept this offer, then your last day of employment will be the date that is twenty-one (21) days after the date of this Agreement.)  By executing this Agreement, you hereby acknowledge that you have resigned from every position you hold with the Company and its affiliated entities, effective as of the Separation Date, and you hereby agree to execute any necessary documentation to memorialize such resignation as the Company may request from time to time.

(b) Transition Period.  From the date of this Agreement through the Separation Date (the “Transition Period”), you must continue to abide by all Company policies and procedures and any agreements between you and the Company (including, without limitation, your signed Proprietary Information and Inventions Agreement with the Company).  During the Transition Period, you will continue to be employed in your role of “Chief Commercial Officer and Executive Vice President of Corporate Strategy,” provided, however, that if a new Chief Commercial Officer (“CCO”) commences employment with the Company prior to the Separation Date (the date such CCO commences employment being the “Successor CCO Start Date”), then, automatically and without further action by either party, your role will be changed to “Executive Vice President” beginning on the Successor CCO Start Date and continuing until the Separation Date.  In either of such roles, you will perform duties as requested by, and you will report to, Bob Azelby, the Chief Executive Officer (“CEO”). Beginning January 1, 2019, you will work primarily from your office in your home in Orange County, California.

(b) Compensation and Benefits.  During the Transition Period, you will be paid your current base salary and you will continue to be eligible to participate in the Company’s employee benefit plans pursuant to the terms of those plans.  Notwithstanding the foregoing, effective immediately you hereby acknowledge and agree that you will no longer be a participant in the Severance Plan (as defined in Section 3), and you are, and will during the Transition Period, no longer be eligible for any benefits under the Severance Plan.    

(c) Termination of Employment.  As part of this Agreement, the Company agrees that it will not terminate your employment other than for Cause (as defined below) during the Transition Period.  If prior to March 31, 2019 you resign your employment for any reason, or the Company terminates your employment with Cause, then you will no longer be eligible for participation in any Company benefit plans and you will not be entitled to the Severance Benefits (as defined below).  For purposes of this Agreement, “Cause” for termination will mean any one or more of the following:  (i) commission of any felony or crime involving dishonesty; (ii) participation in any fraud against the Company; (iii) material breach of your contractual, statutory or common law duties to the Company 

 

 

 

(including violation of any provision or obligation under this Agreement); (iv) intentional damage to any property of the Company; or (v) misconduct or other violation of Company policy that causes or reasonably could cause harm.

2. Accrued Salary and Vacation.  On or shortly after your last day of employment with the Company, the Company will pay you all accrued salary and all accrued and unused vacation time earned through the last day of your employment, subject to standard payroll deductions and withholdings.  You will receive these payments regardless of whether or not you sign this Agreement. 

3. Severance Benefits.  You acknowledge and agree that the termination of your employment as described herein does not entitle you to any severance benefits, including and without limitation, any severance benefits under the terms of that certain Alder BioPharmaceuticals, Inc. Executive Severance Benefit Plan, as amended and restated effective December 15, 2016 (the “Severance Plan”).  If (i) you timely return this fully signed Agreement to the Company and allow it to become effective; (ii) you comply fully with your obligations hereunder; (iii) on or before March 31, 2019, your employment with the Company has not been terminated for Cause and you have not resigned your employment with the Company; and (iv) you sign the Separation Date Release attached hereto as Exhibit A on or within twenty-one (21) days after the Separation Date and allow that release to become effective, then the Company will provide you with the following as your sole severance benefits (the “Severance Benefits”):

(a)Severance Pay.  The Company will pay cash severance calculated as eight (8) months of your current base salary in effect as of the Separation Date, in the total amount of $298,891.68, less applicable deductions and withholdings (the “Severance Pay”), and payable within sixty (60) days following March 31, 2019.

 

(b)2018 Annual Target Bonus.  As part of this Agreement, if you remain employed by the Company in good standing through March 31, 2019, then the Company will pay you your full target annual bonus for 2018 (in the amount of $201,751.88, less applicable deductions and withholdings), which (if owed) will be paid at the same time as the Company pays annual bonuses to other similarly situated employees, but in no event later than sixty (60) days following March 31, 2019.     

 

(c)Expense Reimbursement.  You will continue to remain eligible for the reimbursement of certain relocation expenses in accordance with the first bullet point under Section 1 of the “Promotion and Amendment to Offer of Employment At Alder BioPharmaceuticals, Inc.” dated January 2, 2018 between you and the Company as in effect as of the date of this Agreement (the “Relocation Benefits”) through December 31, 2018. The Company acknowledges that you will have no obligation to reimburse the Company for any Relocation Benefits as a result of your resignation. Effective as of January 1, 2018, your eligibility for the reimbursement of Relocation Benefits shall cease and you will become eligible for reimbursement of reasonable travel and related expenses actually incurred by you related to your business travel between the Orange County, California area and the Company’s headquarters in Bothell, Washington, through the Separation Date, subject to applicable tax withholdings and deductions, if any.  Such reimbursement will only be payable to you upon submission of appropriate documentation of payment.  To the extent that reimbursement of any such travel expenses, whether paid to you or on your behalf directly to a vendor, is required to be reported as income to the appropriate federal and state agencies, such reimbursements and vendor payments will be included in your gross earnings on your Form W-2 for the year of payment. Alder will provide tax assistance to offset the tax impact to you. For the avoidance of doubt, to the extent that any reimbursements payable to you are subject to the provisions of Section 409A of the Internal Revenue Code of 1986, as amended:  (a) any such reimbursements will be paid no later than December 31 of the year following the year in which the expense was incurred, (b) the amount of expenses reimbursed in one year will not affect the amount eligible for reimbursement in any subsequent year, and (c) the right to reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit.  

4. Consulting Agreement.  If (i) you timely return this fully signed Agreement to the Company and allow it to become effective; (ii) you comply fully with your obligations hereunder; (iii) on or before March 31, 2019, your employment with the Company has not been terminated for Cause and you have not resigned your employment with the Company; and (iv) you sign the Separation Date Release attached hereto as Exhibit A on or within twenty-one (21) days after the Separation Date and allow that release to become effective, then the Company will retain you as a consultant under the terms specified below.  

2

 

 

(a)Consulting Period.  The consulting relationship will be deemed to commence on the day after the Separation Date and will continue for a period of three (3) months (i.e., until June 30, 2019), unless terminated earlier pursuant to Paragraph 4(h) below or extended by agreement of you and the Company (the “Consulting Period”).  Any agreement to extend the Consulting Period after the initial period must be set forth in writing signed by you and the CEO or a duly authorized member of the Board of Directors of the Company. 

(b)Consulting Services.  You agree to provide consulting services to the Company in any area of your expertise, including but not limited to, providing strategic advice regarding special projects and areas of your expertise (the “Consulting Services”).  During the Consulting Period, you will report directly to the CEO.  You agree to exercise the highest degree of professionalism and utilize your expertise and creative talents in performing these services.  You agree to make yourself available to perform such Consulting Services throughout the Consulting Period, on an as-needed basis, up to a maximum of five (5) hours per month.  You will not be required to report to the Company’s offices during the Consulting Period, except as specifically requested by the Company.  When providing such services, you shall abide by the Company’s policies and procedures.  

(c)Independent Contractor Relationship.  Your relationship with the Company during the Consulting Period will be that of an independent contractor, and nothing in this Agreement is intended to, or should be construed to, create a partnership, agency, joint venture or employment relationship after the Separation Date.  Other than the Severance Benefits, you will not be entitled to any of the benefits which the Company may make available to its employees, including but not limited to, group health or life insurance, profit-sharing or retirement benefits, and you acknowledge and agree that your relationship with the Company during the Consulting Period will not be subject to the Fair Labor Standards Act or other laws or regulations governing employment relationships. 

(d)Consulting Compensation.  Vesting of your outstanding stock options, restricted stock units and any other equity awards, if any (the “Equity”), will continue during the Consulting Period.  Your Equity, including the terms and conditions of the Equity and your rights and obligations with respect to the Equity, will continue to be governed by the terms of your stock option grant notices, restricted stock unit grant notices and applicable plan documents pursuant to which you acquired the Equity.  You understand and agree that the tax treatment of certain of your stock options may change depending upon when you exercise them and that the Company makes no representation as to the tax treatment that will be afforded to any of your options. In addition, during the Consulting Period and provided that you remain in compliance with this Agreement, you will receive as consulting fees $2,000 per month for the Consulting Services you are approved to perform and actually perform for the Company (the “Consulting Fees”), paid on or before the 15th day of the month following the month of services.  Because you will be providing the Consulting Services as an independent contractor, the Company will not withhold any amount for taxes, social security or other payroll deductions from the Consulting Fees.  The Company will report the Consulting Fees on an IRS Form 1099.  You acknowledge that you will be entirely responsible for payment of any taxes that may be due on the Consulting Fees, and you hereby indemnify, defend and save harmless the Company, and its officers and directors in their individual capacities, from any liability for any taxes, penalties or interest that may be assessed by any taxing authority with respect to the Consulting Fees.     

(e)Limitations on Authority.  You will have no responsibilities or authority as a consultant to the Company other than as provided above.  You will have no authority to bind the Company to any contractual obligations, whether written, oral or implied, except with the written authorization of the CEO.  You agree not to represent or purport to represent the Company in any manner whatsoever to any third party unless authorized by the Company, in writing, to do so.

(f)Proprietary Information and Inventions.  You agree that, during the Consulting Period and thereafter, you will not use or disclose any confidential or proprietary information or materials of the Company, including any confidential or proprietary information that you obtain or develop in the course of performing the Consulting Services.  Notwithstanding the foregoing, pursuant to 18 U.S.C. Section 1833(b), you shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that:  (1) is made in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (2) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  Any and all work product you create in the course of performing the Consulting Services will be the sole and exclusive property of the Company.  You hereby assign to the Company all right, title, and interest in all inventions, techniques, processes, materials, and other 

3

 

 

intellectual property developed in the course of performing the Consulting Services.  You further acknowledge and reaffirm your continuing obligations under your signed Proprietary Information and Inventions Agreement, a copy of which is attached hereto as Exhibit B.

(g)Other Work Activities.  Throughout the Consulting Period, you retain the right to engage in employment, consulting, or other work relationships in addition to your work for the Company.  The Company will make reasonable arrangements to enable you to perform your work for the Company at such times and in such a manner so that it will not interfere with other activities in which you may engage.  In order to protect the trade secrets and confidential and proprietary information of the Company, you agree that, during the Consulting Period, you will notify the Company, in writing, before you obtain employment with or perform competitive work for any business entity, or engage in any other work activity that is competitive with the Company.

(h)Termination of Consulting Period.  Without waiving any other rights or remedies, the Company may terminate immediately the Consulting Period upon your breach of any provision of this Agreement or your Proprietary Information and Inventions Agreement, or upon your performing competitive work for any business entity or engaging in any other work activity that is competitive with the Company.  Upon termination of the Consulting Period, the Company will pay those fees incurred through and including the effective date of such termination.

5.No Other Compensation or Benefits.  

You acknowledge that payment of the Severance Benefits and provision of other benefits set forth in this Agreement fulfills and exceeds all of the Company’s obligations to pay you severance or other benefits pursuant to any agreement, plan or policy applicable to you, including without limitation the Severance Plan, and that this Agreement supersedes and extinguishes the Company’s severance obligations to you under any other plan, policy or agreement.  You further acknowledge that, except as expressly provided in this Agreement, you have not earned, will not earn by the last day of your employment, and will not receive from the Company any additional compensation, severance, or benefits on or after the last day of your employment, with the exception of any vested right you may have under the express terms of any applicable written ERISA-qualified benefit plan (e.g., 401(k) account).  By way of example, you acknowledge that you have not earned and are not owed any equity, bonus, incentive compensation, or commissions. 

6.Expense Reimbursements.  You agree that, within thirty (30) days after the Separation Date, you will submit your final documented expense reimbursement statement reflecting all business expenses you incurred through the last day of your employment, if any, for which you seek reimbursement.  The Company will reimburse you for reasonable business expenses pursuant to its regular business practice.   

7.Return of Company Property.  Within fifteen (15) days after the Separation Date (or earlier if requested by the Company), you shall return to the Company all Company documents (and all copies thereof) and other Company property in your possession or control, including but not limited to Company files, notes, financial and operational information, customer lists and contact information, product and services information, research and development information, drawings, records, plans, forecasts, reports, payroll information, spreadsheets, studies, analyses, compilations of data, proposals, agreements, sales and marketing information, personnel information, specifications, code, software, databases, computer-recorded information, tangible property and equipment (including but not limited to computers, facsimile machines, mobile telephones, tablets, handheld devices, and servers), credit cards, entry cards, identification badges and keys; and any materials of any kind which contain or embody any proprietary or confidential information of the Company and all reproductions thereof in whole or in part and in any medium.  You agree that you will make a diligent search to locate any such documents, property and information within the timeframe referenced above.  In addition, if you have used any personally owned computer, server, or e-mail system to receive, store, review, prepare or transmit any confidential or proprietary data, materials or information of the Company, then within fifteen (15) days after the Separation Date (or earlier if requested by the Company), you must provide the Company with a computer-useable copy of such information and then permanently delete and expunge such confidential or proprietary information from those systems without retaining any reproductions (in whole or in part); and you agree to provide the Company access to your system, as requested, to verify that the necessary copying and deletion is done.  Your entitlement to and receipt of the Severance Benefits described in this Agreement are expressly conditioned upon return of all Company property. 

4

 

 

8.Mutual Nondisparagement.  You agree not to disparage the Company, its respective officers, directors, employees, stockholders, agents and affiliates, in any manner likely to be harmful to them or their business, business reputation or personal reputation. Similarly, the Company agrees to instruct its officers and directors not to disparage you in any manner likely to be harmful to you or your business or personal reputation.  Notwithstanding the foregoing in this paragraph, you and the Company (including the officers and directors of the Company) may respond accurately and fully to any question, inquiry or request for information when required by legal process or in connection with a government investigation. In addition, nothing in this provision is intended to prohibit or restrain any party in any manner from reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice and the Securities and Exchange Commission (“SEC”), or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. 

9.No Admissions.  The promises and payments in consideration of this Agreement shall not be construed to be an admission of any liability or obligation by either party to the other party, and neither party makes any such admission.

10.Release of Claims.

(a) General Release.  In exchange for the consideration provided to you under this Agreement to which you would not otherwise be entitled, you hereby generally and completely release the Company and its affiliated, related, parent and subsidiary entities, and each of its and their current and former directors, officers, employees, stockholders, partners, agents, attorneys, predecessors, successors, insurers, affiliates, and assigns (collectively, the “Released Parties”) 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 or on the date you sign this Agreement (collectively, the “Released Claims”).  

(b) Scope of Release.  The Released Claims include, but are not limited to:  (i) all claims arising out of or in any way related to your employment with the Company, or the decision to terminate that employment; (ii) all claims related to compensation or benefits from the Company, including salary, bonuses, commissions, vacation, paid time off, expense reimbursements, severance pay, fringe benefits, stock, stock options, restricted stock units, or any other ownership, equity, or profits interests in the Company; (iii) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (iv) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (v) 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, the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (the “ADEA”), the Washington Law Against Discrimination (RCW chapter 49.60; WAC 162-04-10, et seq.), the Washington Family Leave Act and the Washington Minimum Wage Act.

(c) Excluded Claims/Protected Rights.  Notwithstanding the foregoing, the following are not included in the Released Claims (the “Excluded Claims”):  (i) any rights or claims for indemnification you may have pursuant to (A) any written indemnification agreement with the Company to which you are a party, (B) the Company’s articles of incorporation, bylaws, or other governing documents, or (C) applicable law; (ii) any rights which cannot be waived as a matter of law; (iii) any rights you have to file or pursue a claim for workers’ compensation or unemployment insurance; and (iv)  any claims for breach of this Agreement. You understand that nothing in this Agreement limits your ability to file a charge or complaint with the Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the SEC, the Washington State Human Rights Commission, or any other federal, state, or local government agency or commission (collectively, “Government Agencies”).  You further understand that this Agreement does not limit your ability to cooperate with, communicate with, or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, (including providing documents or other information without notice to the Company).  While this Agreement does not limit your right to receive an award for information provided to the SEC, you understand and agree that, to the maximum extent permitted by law, you are otherwise waiving any and all rights you have to individual relief based on any claims that you have released and waived by signing this Agreement. You represent and warrant that, other than the Excluded Claims, you are not aware of any claims you have or might have against any of the Released Parties that are not included in the Released Claims.

5

 

 

(d) ADEA Waiver.  You acknowledge that you are knowingly and voluntarily waiving and releasing any rights you may have under the ADEA, and that the consideration given for the waiver and release in this section is in addition to anything of value to which you are already entitled.  You further acknowledge that you have been advised, as required by the ADEA, that:  (i) your waiver and release do not apply to any rights or claims that may arise after the date that you sign this Agreement; (ii) you should consult with an attorney prior to signing this Agreement (although you may choose voluntarily not to do so); (iii) you have twenty-one (21) days to consider this Agreement (although you may choose voluntarily to sign it earlier); (iv) you have seven (7) days following the date you sign this Agreement to revoke it (by providing written notice of your revocation to me); and (v) this Agreement will not be effective until the date upon which the revocation period has expired, which will be the eighth day after the date that this Agreement is signed by you provided that you do not revoke it (the “Effective Date”).  

11.Release of Unknown Claims.  YOU UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS, EVEN IF THOSE UNKNOWN CLAIMS THAT, IF KNOWN BY YOU, WOULD AFFECT YOUR DECISION TO ACCEPT THIS AGREEMENT.  In giving the release herein, which includes claims which may be unknown to you at present, you hereby expressly waive and relinquish all rights and benefits under any law of any jurisdiction with respect to your release of any unknown or unsuspected claims herein.

12.Representations.  You hereby represent that you have been paid all compensation owed and for all hours worked, you have received all the leave and leave benefits and protections for which you are eligible pursuant to the federal Family and Medical Leave Act, the Washington Family Leave Act, or otherwise, and you have not suffered any on-the-job injury for which you have not already filed a workers’ compensation claim.  You further acknowledge and understand that the Company may disclose this Agreement, including without limitation by publicly filing it in connection with any corporate or public disclosure or filing requirements.

13.Miscellaneous.  This Agreement, including its exhibits, constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to the subject matter hereof.  It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other agreements, promises, warranties or representations concerning its subject matter.  This Agreement may not be modified or amended except in a writing signed by both you and a duly authorized officer of the Company.  This Agreement will bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns.  If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the provision in question will be modified so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible under applicable law.  This Agreement will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of Washington as applied to contracts made and to be performed entirely within Washington.  This Agreement may be executed in counterparts, each of which will be deemed an original, all of which together constitutes one and the same instrument.  This Agreement may be signed and delivered by facsimile signature, PDF or any electronic signature complying with the U.S. federal ESIGN Act of 2000 (e.g., www.docusign.com).

6

 

 

If this Agreement is acceptable to you, please sign and date below within twenty-one (21) days and send me the fully signed Agreement.  The Company’s offer contained herein will automatically expire if we do not receive the fully signed Agreement within this timeframe.

I wish you good luck in your future endeavors.

Sincerely,

Alder BioPharmaceuticals, Inc.

By:  /s/ Robert W. Azelby

Robert W. Azelby 

President and Chief Executive Officer

 

Understood and Agreed:

/s/ Elisabeth A. Sandoval

Elisabeth A. Sandoval, M.B.A.

 

November 2, 2018

Date

 

 

 

7

 

Exhibit A

SEPARATION Date Release

(To be signed and returned on or within 21 days after the Separation Date.)

In exchange for the severance benefits provided to me by Alder BioPharmaceuticals, Inc. (the “Company”) under the terms of the transition agreement between me and the Company dated November 2, 2018 (the “Agreement”), I agree to the terms below.

In exchange for the consideration to which I am not otherwise entitled, as defined in and to be provided to me by the Company under the terms of the Agreement, I hereby generally and completely release the Company and its affiliated, related, parent and subsidiary entities, and each of its and their current and former directors, officers, employees, stockholders, partners, agents, attorneys, predecessors, successors, insurers, affiliates, and assigns (collectively, the “Released Parties”) 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 or on the date that I sign this Separation Date Release (the “Release”).  

This general release includes, but is not limited to:  (i) all claims arising out of or in any way related to my employment with the Company, or the termination of that employment; (ii) all claims related to my compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, paid time off, expense reimbursements, severance pay, fringe benefits, stock, stock options, restricted stock units, or any other ownership, equity, or profits interests in the Company; (iii) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (iv) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (v) 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, the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act (as amended) (the “ADEA”), the Washington Law Against Discrimination (RCW chapter 49.60; WAC 162-04-10, et seq.), the Washington Family Leave Act and the Washington Minimum Wage Act.

Notwithstanding the foregoing, I am not releasing the following claims (the “Excluded Claims”):  (i) any rights or claims for indemnification I may have pursuant to (A) any written indemnification agreement with the Company to which you are a party, (B) the Company’s articles of incorporation, bylaws, or other governing documents, or (C) applicable law; (ii) any rights which cannot be waived as a matter of law; (iii) any rights I have to file or pursue a claim for workers’ compensation or unemployment insurance; and (iv)  any claims for breach of this Agreement. I understand that nothing in this Agreement limits my ability to file a change or complaint with the Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Securities and Exchange Commission (“SEC”), the Washington State Human Rights Commission, or any other federal, state, or local government agency or commission (collectively, “Government Agencies”).  I further understand that this Agreement does not limit my ability to cooperate with, communicate with, or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, (including providing documents or other information without notice to the Company).  While this Agreement does not limit my right to receive an award for information provided to the SEC, I understand and agree that, to the maximum extent permitted by law, I am otherwise waiving any and all rights I have to individual relief based on any claims that I have released and waived by signing this Agreement. I represent and warrant that, other than the Excluded Claims, I am not aware of any claims I have or might have against any of the Released Parties that are not included in the Release herein.

I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the ADEA (“Release ADEA Waiver”).  I also acknowledge that the consideration given for the Release ADEA Waiver is in addition to anything of value to which I am already entitled.  I further acknowledge that I have been advised, as required by the ADEA, that:  (i) my waiver and release do not apply to any rights or claims that arise after the date I sign this Release; (ii) I should consult with an attorney prior to signing this Release; (c) I have had twenty-one (21) days to consider this Release; (iii) I have seven (7) days following the date I sign this Release to revoke it, with such revocation to be effective only if I deliver written notice of revocation to the Company within the seven-day period; and (iv) the Release will not be effective until the date upon which the revocation period has expired, which will be the eighth day after I sign it (the “Release Effective Date”).

 

 

 

In giving the release herein, which includes claims which may be unknown to me at present, I hereby expressly waive and relinquish all rights and benefits under any law of any jurisdiction with respect to my release of any unknown or unsuspected claims herein.

I hereby represent that (i) I have been paid all compensation owed and have been paid for all hours worked; (ii) I have received all the leave and leave benefits and protections for which I am eligible, pursuant to the federal Family and Medical Leave Act, the Washington Family Leave Act, or otherwise; and (iii) I have not suffered any on-the-job injury for which I have not already filed a workers’ compensation claim.  I represent that I have no lawsuits, claims or actions pending in my name, or on behalf of any other person or entity, against the Company or any other person or entity subject to the release granted in this Release. I further acknowledge and understand that the Company may disclose this Release, including without limitation by publicly filing it in connection with any corporate or public disclosure or filing requirements. 

 

By:

      Elisabeth A. Sandoval, M.B.A.

 

 

Date:

-9-

 

 

Exhibit B

ALDER BIOPHARMACEUTICALS, INC.

 

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

 

In exchange for my becoming employed (or my employment being continued), or retained as a consultant (or my consulting relationship being continued, by Alder BioPharmaceuticals, Inc. or any of its current or future subsidiaries, affiliates, successors or assigns (collectively, the “Company”), and for any cash and equity compensation for my services, I hereby agree as follows:

1.Duties.  I will perform for the Company such duties as may be designated by the Company from time to time.  During my period of employment or consulting relationship with the Company, I will devote my best efforts to the interests of the Company and will not engage in any activities detrimental to the best interests of the Company without the prior written consent of the Company.

2.Confidentiality Obligation.  I understand and agree that all Proprietary Information (as defined below) shall be the sole property of the Company and its assigns, including all trade secrets, patents, copyrights and other rights in connection therewith.  I hereby assign to the Company any rights I may acquire in such Proprietary Information.  I will hold in confidence and not directly or indirectly to use or disclose, both during my employment by or consulting relationship with the Company and for a period of three years after its termination (irrespective of the reason for such termination), any Proprietary Information I obtain or create during the period of my employment or consulting relationship, whether or not during working hours, except to the extent authorized by the Company, until such Proprietary Information becomes generally known.  I agree not to make copies of such Proprietary Information except as authorized by the Company.  Upon termination of my employment or consulting relationship or upon an earlier request of the Company, I will return or deliver to the Company all tangible forms of such Proprietary Information in my possession or control, including but not limited to drawings, specifications, documents, records, devices, models or any other material and copies or reproductions thereof.  Notwithstanding anything in this Section 2, pursuant to 18 U.S.C. Section 1833(b), I shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that: (1) is made in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (2) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.   

3.Ownership of Physical Property.  All document, apparatus, equipment and other physical property in any form, whether or not pertaining to Proprietary Information, furnished to me by the Company or produced by me or others in connection with my employment or consulting relationship shall be and remain the sole property of the Company.  I shall return to the Company all such documents, materials and property as and when requested by the Company, except only (i) my personal copies of records relating to my compensation, if any; (ii) if applicable, my personal copies of any materials evidencing shares of the Company’s capital stock purchased by me and/or options to purchase shares of the Company’s capital stock granted to me; (iii) my copy of this Agreement and (iv) my personal property and personal documents I bring with me to the Company and any personal correspondence and personal materials that I accumulate and keep at my office during my employment (my “Personal Documents”).  Even if the Company does not so request, I shall return all such documents, materials and property upon termination of my employment or consulting relationship, and, except for my Personal Documents, I will not take with me any such documents, material or property or any reproduction thereof upon such termination.

4.Assignment of Inventions.  

(a)Without further compensation, I hereby agree promptly to disclose to the Company, all Inventions (as defined below) which I may solely or jointly develop or reduce to practice during the period of my employment or consulting relationship with the Company which (i) pertain to any line of business activity of the Company, (ii) are aided by the use of time, material or facilities of the Company, whether or not during working hours or (iii) relate to any of my work during the period of my employment or consulting relationship with the Company, whether or not during normal working hours (“Company Inventions”). During the term of my employment or 

-10-

 

 

consultancy, all Company Inventions that I conceive, reduce to practice, develop or have developed (in whole or in part, either alone or jointly with others) shall be the sole property of the Company and its assigns to the maximum extent permitted by law (and to the fullest extent permitted by law shall be deemed “works made for hire”), and the Company and its assigns shall be the sole owner of all patents, copyrights, trademarks, trade secrets and other rights in connection therewith.  I hereby assign to the Company any rights that I may have or acquire in such Company Inventions.  

(b)I attach hereto as Exhibit A a complete list of all Inventions, if any, made by me prior to my employment or consulting relationship with the Company that are relevant to the Company’s business, and I represent and warrant that such list is complete.  If no such list is attached to this Agreement, I represent that I have no such Inventions at the time of signing this Agreement. If in the course of my employment or consultancy (as the case may be) with the Company, I use or incorporate into a product or process an Invention not covered by Section 4(a) of this Agreement in which I have an interest, the Company is hereby granted a nonexclusive, fully paid-up, royalty-free, perpetual, worldwide license of my interest to use and sublicense such Invention without restriction of any kind.

NOTICE REQUIRED BY REVISED CODE OF WASHINGTON 49.44.140:

Any assignment of Inventions required by this Agreement does not apply to an Invention for which no equipment, supplies, facility or trade secret information of the Company was used and which was developed entirely on the employee’s own time, unless (a) the Invention relates (i) directly to the business of the Company or (ii) to the Company’s actual or demonstrably anticipated research or development or (b) the Invention results from any work performed by the employee for the Company.

5.Further Assistance; Power of Attorney.  I agree to perform, during and after my employment or consulting relationship, all acts deemed necessary or desirable by the Company to permit and assist it, at its expense, in obtaining and enforcing the full benefits, enjoyment, rights and title throughout the world in the Inventions assigned to the Company as set forth in Section 4 above.  Such acts may include, but are not limited to, execution of documents and assistance or cooperation in legal proceedings.  I hereby irrevocably designate the Company and its duly authorized officers and agents as my agent and attorney-in fact, to execute and file on my behalf any such applications and to do all other lawful acts to further the prosecution and issuance of patents, copyright and mask work registrations related to such Inventions.  This power of attorney shall not be affected by my subsequent incapacity.

6.Inventions.  As used in this Agreement, the term “Inventions” means discoveries, developments, concepts, designs, ideas, know‐how, improvements, inventions, trade secrets and/or original works of authorship, whether or not patentable, copyrightable or otherwise legally protectable.  This includes, but is not limited to, any new product, machine, article of manufacture, biological material, method, procedure, process, technique, use, equipment, device, apparatus, system, compound, formulation, composition of matter, design or configuration of any kind, or any improvement thereon.

7.Proprietary Information.  As used in this Agreement, the term “Proprietary Information” means information or physical material not generally known or available outside the Company or information or physical material entrusted to the Company by third parties.  This includes, but is not limited to,  Inventions, confidential knowledge, copyrights, product ideas, techniques, processes, formulas, object codes, biological materials, mask works and/or any other information of any type relating to documentation, laboratory notebooks, data, schematics, algorithms, flow charts, mechanisms, research, manufacture, improvements, assembly, installation, marketing, forecasts, sales, pricing, customers, the salaries, duties, qualifications, performance levels and terms of compensation of other employees, and/or cost or other financial data concerning any of the foregoing or the Company and its operations.  Proprietary Information may be contained in material such as drawings, samples, procedures, specifications, reports, 

-11-

 

 

studies, customer or supplier lists, budgets, cost or price lists, compilations or computer programs, or may be in the nature of unwritten knowledge or know-how.

8.Solicitation of Employees, Consultants and Other Parties.   During the term of my employment or consulting relationship with the Company, and for a period of one year following the termination of my relationship with the Company for any reason, I will not directly or indirectly solicit, induce, recruit or encourage any of the Company’s employees or consultants to terminate their relationship with the Company, or attempt any of the foregoing, either for myself or any other person or entity.  For a period of one year following termination of my relationship with the Company for any reason, I shall not solicit any licensor to or customer of the Company or licensee of the Company’s products, that are known to me, with respect to any business, products or services that are competitive to the products or services offered by the Company or under development as of the date of termination of my relationship with the Company.

9.Noncompetition.  During the term of my employment or consulting relationship with the Company and for one year following the termination of my relationship with the Company for any reason, I will not, without the Company’s prior written consent, directly or indirectly work on any products or services that are competitive with products or services (a) being commercially developed or exploited by the Company during my employment or consultancy and (b) on which I worked or about which I learned Proprietary Information during my employment or consultancy with the Company.

10.No Conflicts.  I represent that my performance of all the terms of this Agreement as an employee of or consultant to the Company does not and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired by me in confidence or in trust prior to my becoming an employee or consultant of the Company, and I will not disclose to the Company, or induce the Company to use, any confidential or proprietary information or material belonging to any previous employer or others.  I agree not to enter into any written or oral agreement that conflicts with the provisions of this Agreement.

11.No Interference.  I certify that, to the best of my information and belief, I am not a party to any other agreement which will interfere with my full compliance with this Agreement.

12.Effects of Agreement.  This Agreement (a) shall survive for a period of five years beyond the termination of my employment by or consulting relationship with the Company, (b) inures to the benefit of successors and assigns of the Company and (c) is binding upon my heirs and legal representatives.

13.At-Will Relationship.  I understand and acknowledge that my employment or consulting relationship with the Company is and shall continue to be at-will, as defined under applicable law, meaning that either I or the Company may terminate the relationship at any time for any reason or no reason, without further obligation or liability.

14.Injunctive Relief.  I acknowledge that violation of this Agreement by me may cause irreparable injury to the Company, and I agree that the Company will be entitled to seek extraordinary relief in court, including, but not limited to, temporary restraining orders, preliminary injunctions and permanent injunctions without the necessity of posting a bond or other security and without prejudice to any other rights and remedies that the Company may have for a breach of this Agreement.

15.Miscellaneous.  This Agreement supersedes any oral, written or other communications or agreements concerning the subject matter of this Agreement, and may be amended or waived only by a written instrument signed by me and the Chief Executive Officer of the Company.  This Agreement shall be governed by the laws of the State of Washington applicable to contracts entered into and performed entirely within the State of Washington, without giving effect to principles of conflict of laws.  If any provision of this Agreement is held to be unenforceable under applicable law, then such provision shall be excluded from this Agreement only to the extent unenforceable, and the remainder of such provision and of this Agreement shall be enforceable in accordance with its terms.

-12-

 

 

16.Acknowledgment.  I certify and acknowledge that I have carefully read all of the provisions of this Agreement and that I understand and will fully and faithfully comply with such provisions. 

 

Alder BioPharmaceuticals, Inc.Employee

 

 

By: /s/ James B. Bucher/s/ Elisabeth Sandoval

James B. BucherName: Elisabeth Sandoval

Title: Senior Vice President & General Counsel

Dated: September 26, 2016Dated: September 20, 2016

 

-13-

 

Exhibit A

 

 

 

Alder BioPharmaceuticals, Inc.

11804 North Creek Parkway So.

Bothell, WA 98011

Ladies and Gentlemen:

1.The following is a complete list of all Inventions relevant to the subject matter of my employment by the Company that have been made or conceived or first reduced to practice by me, alone or jointly with others or which has become known to me prior to my employment by the Company.  I represent that such list is complete.

 

 

 

 

 

2.I propose to bring to my employment or consultancy the following materials and documents of a former employer:

XNo materials or documents.

See below:

 

By: /s/ Elisabeth Sandoval

Elisabeth Sandoval

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00292-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00292-of-00352.parquet"}]]