Document:

Document

EXHIBIT 10.30

January 27, 2021

Confidential

JULIA C. OWENS

Re: Separation from Employment
Dear JULIA:   
    
    The purpose of this letter agreement (“Agreement”) is to confirm the terms of your separation of employment from Millendo Therapeutics US, Inc. (“Millendo” or “the Company”).  Except for the obligations set forth in Section 2 which shall be solely the obligations of Millendo Therapeutics US, Inc., the term “Millendo” or the “Company” as otherwise used in this Agreement shall be deemed to include Millendo Therapeutics, Inc., and any and all of its divisions, franchisees, licensees, affiliates, parents, subsidiaries, and all related entities, and its and their directors, officers, employees, partners, members, representatives, trustees, agents, successors, predecessors, and assigns.  The Severance Pay and Benefits described below are contingent on your agreement to and compliance with the provisions of this Agreement, as set forth below. This Agreement shall be effective on the eighth (8th) day after you sign and do not revoke it (the “Effective Date”).

1.Separation of Employment.  Your employment with Millendo shall terminate effective January 31, 2021 (the “Separation Date”), or earlier if agreed to by you and Millendo or as per Section 5(a). You acknowledge that from and after the Separation Date, you have no authority to, and shall not, represent yourself as an employee or agent of the Company. 
a.Wages.  You will be paid all wages earned but unpaid through the Separation Date and any earned bonus for 2020 on the Separation Date.  

b.Group Medical, Dental, and Vision Plans.  If you are enrolled in Company-sponsored medical, dental and/or vision plans, coverage for you and any enrolled dependents will end on your Separation Date. Subject to Section 2(c) below, under the Federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), following your Separation Date, you and your dependents may be eligible to continue your group health plan benefits. You will receive COBRA continuation information by separate correspondence.  

c.Stock Options.   You will be entitled to exercise only those stock options granted to you under the “Stock Plans” (specifically, the 2012 Stock Incentive Plan – Millendo, the 2012 Stock Incentive Plan – OvaScience, and the 2019 Equity Incentive Plan) that are vested through such date as your Continuous Service (as defined in the 2019 Equity Incentive Plan) to the Company ceases, and only in accordance with the terms and conditions of the Stock Plans, including (without limitation) those provisions regarding the time in which you have to exercise vested options. Except for those vested options, if any, you acknowledge and agree that you do not now have, and will not in the future have, rights to vest in any other equity plans (of whatever name or kind, including, without limitation, any stock option or restricted stock plan) that you participated in or were eligible to participate in during your employment with Millendo.  

2.Severance Pay and Benefits.  Pursuant to your Amended and Restated Employment Terms effective as of January 1, 2019, if you comply with the terms of, execute and do not revoke this Agreement, the Company will provide you with the following Severance Pay and Benefits: 
a.Bonus.  The Company will pay an additional amount equivalent to 18 months of your annual bonus, which is calculated using the applicable full target amount and multiplied by 1.5 for the performance year 2021 in which your termination occurs. This bonus in the amount of Three Hundred Ninety-Four Thousand Seven Hundred Twenty-Five dollars and 00 cents ($394,725) will be paid no later than March 15, 2022 subject to standard federal and state withholding requirements and will be made in accordance with the Company’s normal payroll practices.

b.Severance Pay.  Lump sum payment in the gross amount of Seven Hundred Eighty-Nine Thousand Four Hundred Fifty dollars and Twelve cents ($789,450.12), less all tax withholdings and any other authorized deductions and will be issued after the parties have signed this Agreement and the seven (7) day revocation period has expired without your revoking this Agreement.  The payment shall be made on the first payroll period following the Effective Date of this Agreement and be made in accordance with the Company’s normal payroll practices. 

c.Additional Payments.  If you are enrolled in Company-sponsored medical, dental and/or vision plans as of the Separation Date, coverage for you and any enrolled dependents will end on your Separation Date.  If you timely elect continued coverage under COBRA for yourself and/or your covered dependents under the Company’s group health plans, Millendo will pay the entire COBRA premium until the date that is the earliest of: (i) eighteen (18) months following the Separation Date; (ii) the date on which you become eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment; or (iii) the date you cease to be eligible for COBRA continuation coverage for any reason, including plan termination (such period from the Separation Date through the earlier of (i)-(iii), the “COBRA Payment Period”).  If you fail to notify Millendo within three (3) business days after you become eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment, Millendo reserves the right to deduct from any remaining Severance Payment the amount it paid in COBRA premiums after you became so eligible.  Notwithstanding the foregoing, if (a) the Company determines that its payment of COBRA premiums on your behalf would result in a violation of law, or (b) if the COBRA Payment Period terminates after less than eighteen months as a result of plan termination under clause (iii) of the definition thereof, then in the case of (a) or (b), in lieu of paying COBRA premiums pursuant to this Section, the Company shall pay you a lump sum amount equal to the premiums that would be payable for each of the remaining months of the COBRA Payment Period, which amount will be fully taxable.   Nothing in this Agreement shall deprive you of your rights under COBRA or ERISA for benefits under plans and policies arising under your employment with Millendo, whether or not you execute this Agreement.

3.Acknowledgements.  You acknowledge and agree that the Severance Pay and Benefits provided for herein are not otherwise due or owing to you under any employment agreement (oral or written) or any Company policy or practice.  You also acknowledge and agree that the Severance Pay and Benefits to be provided to you are not intended to, and shall not constitute a severance plan and shall confer no benefit on anyone other than the Company and you.  You further acknowledge that except for (i) any unpaid regular wages earned through the Separation Date, which shall be paid on or about the Separation Date, and (ii) any vested monies due to you pursuant to the Company’s 401(k) savings plan, you have been paid and provided all wages, holiday pay, commissions, bonuses, stock options, restricted stock or any other form of equity, business expenses, and any other form of compensation or benefit that may be due to you now or which would have become due in the future in connection with your employment or separation of employment with the Company.    
4.Return of Property, Confidentiality, Non-Disparagement. You expressly acknowledge and agree to the following:
a.That you will abide by any and all obligations set forth in the document entitled “Employee Proprietary Information and Inventions Agreement  (“PIIA”)” previously signed by you, the terms of which are hereby incorporated by reference and shall survive the signing of this Agreement), and that you otherwise will keep all confidential information and trade secrets of the Company confidential, and that you will abide by any and all common law and/or statutory obligations relating to protection and non-disclosure of the Company’s trade secrets and/or confidential and proprietary documents and information.  Consistent with applicable law, the Company is providing you with the notice of immunity set forth in Exhibit A, which is a part of this Agreement and each other agreement referenced in this subsection.

b.Without limiting the foregoing obligations, that no later than the Separation Date (or another date specified by the Company), you will return to the Company all Company documents (and any copies) and property (including all electronically stored information) regardless of where such documents, information or property is maintained.  You acknowledge and agree that you shall not maintain any copies or duplicates of such documents or information.  You further acknowledge that if you were to use or disclose any of the information reflected in such items, that this would cause immediate, substantial and irreparable harm to the Company.  
    
c.That all information relating in any way to the negotiation and terms of this Agreement (except for your obligations under Section 4(a) above), including the amount of financial consideration provided for in this Agreement, shall be held confidential by you and shall not be publicized or disclosed to any person (other than an immediate family member, legal counsel, or financial advisor, provided that any such individual to whom disclosure is made agrees to be bound by these confidentiality obligations) or business entity, except as otherwise mandated by state or federal law.  Notwithstanding the foregoing, nothing in this Agreement prohibits you from initiating communications directly with, responding to an inquiry from, or providing testimony before the Securities and Exchange Commission, or any other federal or state regulatory authority or government agency regarding this Agreement or its underlying facts or circumstances or a possible securities law violation or from discussing the terms and conditions of your employment with others to the extent expressly permitted by Section 7 of the National Labor Relations Act.

d.That you will not make any statements that are professionally or personally disparaging about, or adverse to, the interests of the Company (including its officers, directors, employees and consultants) including, but not limited to, any statements that disparage any person, product, service, finances, financial condition, capability or any other aspect of the business of the Company, and that you will not engage in any conduct which could reasonably be expected to harm professionally or personally the reputation of the Company (including its officers, directors, employees and consultants). Notwithstanding the foregoing, nothing in this Agreement prohibits you from initiating communications directly with, responding to an inquiry from, or providing testimony before the Securities and Exchange Commission, or any other federal or state regulatory authority or government agency regarding this Agreement or its underlying facts or circumstances or a possible securities law violation or from discussing the terms and conditions of your employment with others to the extent expressly permitted by Section 7 of the National Labor Relations Act.
e.That the Severance Pay and Benefits are being offered based on your representations that you have not engaged in any fraudulent or unlawful conduct, and that you have fully disclosed to the Company all material information relating to your job duties for the Company.
     
f.You agree that in the event of your breach of any of your agreements set forth in this Section 4 the Company would suffer substantial irreparable harm and that the Company would not have an adequate remedy at law for such breach.  In recognition of the foregoing, you agree that in the event of a breach or threatened breach of any of these covenants, in addition to such other remedies as the Company may have at law, without posting any bond or security, the Company shall be entitled to seek and obtain equitable relief, in the form of specific performance, or temporary, preliminary or permanent injunctive relief, or any other equitable remedy which then may be available.  The seeking of such injunction or order shall not affect the Company’s right to seek and obtain damages or other equitable relief on account of any such actual or threatened breach.  You further agree that the Company shall be entitled to its costs and fees, including attorneys’ fees, incurred by it should it prevail in enforcing any provision of this Agreement, including but not limited to this Section 4.
5.Cooperation.  
a.Between the date of this Agreement and the Separation Date, you will continue to perform your regular duties and responsibilities, and/or those responsibilities that may be assigned to you by your supervisor or his or her designee at his or her reasonable discretion, in a diligent, competent and professional manner.  Millendo retains the right to terminate your employment for cause if you fail to comply with this provision, without further obligation including the obligations set forth in Section 2 relating to Severance Pay and Benefits.
b.During the eighteen (18) month period following the Separation Date (the “Cooperation Period”), you will make yourself available to Millendo (including its attorneys), for up to 5 hours per week, either by telephone or, if Millendo believes necessary, in person to assist the Company in any matter relating to the services performed by you during your employment with Millendo including, but not limited to, transitioning your duties to others at Millendo, and ensuring that all documentation is recorded fully and completely.  You further agree that following the Cooperation Period, you will cooperate fully with the Company in the defense or prosecution of any claims or actions now in existence or which may be brought or threatened in the future against or on behalf of the Company, including any claim or action against its directors, officers and employees.  Your cooperation in connection with such claims or actions shall include your being available, within reason given the constraints of future employment or job search activities, to meet with the Company to prepare for any proceeding, to provide truthful affidavits and/or testimony, to assist with any audit, inspection, proceeding or other inquiry, and to act as a witness in connection with any litigation or other legal proceeding affecting the Company. You further agree that should an individual representing a party adverse to the business or legal interests of the Company (including, without limitation, anyone threatening any form of legal action against the Company) contact you (directly or indirectly), you will promptly (within 48 hours) inform the Company of that fact.  Nothing herein shall be construed to prohibit or prevent you from cooperating with any government investigation (including maintaining the confidentiality of such investigation if required by the government), nor shall any such cooperation be deemed to be a violation of your obligations of non-disparagement set forth in Section 4(d) above.  Notwithstanding the foregoing, in the event of a Change in Control of Millendo (as defined in your Employment Terms effective as of January 1, 2019) during the Cooperation Period, your obligations under this Section 5 shall cease.
6.Release of Claims.  You hereby acknowledge and agree that by signing this Agreement, you are waiving your right to assert any Claim (as defined below) against Millendo arising from acts or omissions that occurred on or before the date on which you sign this Agreement.

          Your waiver and release is intended to bar any form of legal claim, lawsuit, charge, complaint or any other form of action (jointly referred to as “Claims”) against the Company seeking money or any other form of relief, including but not limited to equitable relief (whether declaratory, injunctive or otherwise), damages or any other form of monetary recovery (including but not limited to back pay, front pay, compensatory damages, emotional distress damages, punitive damages, attorneys’ fees and any other costs). You understand that there could be unknown or unanticipated Claims resulting from your employment with the Company and the termination of your employment, and you agree that such Claims are included in this waiver and release.  You specifically waive and release the Company from any Claims arising from or related to your employment relationship with the Company or the termination of your employment, including without limitation Claims under any statute, ordinance, regulation, executive order, common law, constitution and/or other source of law of any state, country and/or locality (collectively and individually referred to as “Law”), including but not limited to the United States, the State of Michigan, the Commonwealth of Massachusetts, and/or any other state or locality where you worked for the Company.   

          Without limiting the foregoing general waiver and release, except for Claims resulting from the failure of the Company to perform its obligations under this Agreement, you specifically waive and release the Company from any Claims arising from or related to your employment relationship with the Company or the termination thereof, including without limitation: 

a.Claims under any Law concerning discrimination, harassment, retaliation, or other fair employment practices, including, but not limited to, the Elliott-Larsen Civil Rights Act (Mich. Comp. Laws § 37.2101 et seq.), the Persons with Disabilities Civil Rights Act (Mich. Comp. Laws § 37.1101 et seq.), the Michigan compensation discrimination law (Mich. Comp. Laws § 408.423), the Massachusetts Anti-Discrimination and Anti-Harassment Law (Mass. Gen. L. ch. 151B), the Massachusetts Sexual Harassment Law (Mass. Gen. L. ch. 214, § 1C), the Massachusetts Equal Pay Act (Mass. Gen. L. ch. 149, § 105A), the Massachusetts Civil Rights Act (Mass. Gen. L. ch. 12, §§ 11H, 11I), the Massachusetts Equal Rights Act (Mass. Gen. L. ch. 93, §§ 102, 103, Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.), 42 U.S.C. § 1981, and the Americans with Disabilities Act (42 U.S.C. § 12101 et seq.), each as they may have been amended through the date you sign this Agreement. 

b.Claims under any Law relating to wages, hours, whistleblowing, leaves of absence or any other terms and conditions of employment including, but not limited to,  the Michigan Workforce Opportunity Wage Act (Mich. Comp. Laws § 408.411 et seq.), the Michigan Payment of Wages and Fringe Benefits Act (Mich. Comp. Laws § 408.471 et seq.), the Michigan Whistleblowers’ Protection Act (Mich. Comp. Laws § 15.361 et seq.), the Massachusetts Payment of Wages Law (Mass. Gen. L. ch. 149, §§ 148, 150), Massachusetts General Laws Chapter 149 in its entirety, Massachusetts General Laws Chapter 151 in its entirety (including but not limited to the minimum wage and overtime provisions), and the Family and Medical Leave Act of 1993 (29 U.S.C. § 2601 et seq.), each as they may have been amended through the date you sign this Agreement. You specifically acknowledge that you are waiving any Claims for unpaid wages under these and other Laws.  

c.Claims under any local, state or federal common law theory including, without limitation, any Claim for breach of contract, implied contract, promissory estoppel, quantum meruit, or any Claim sounding in tort.  

d.Claims arising under the Company’s policies or benefit plans. 

e.Claims arising under any other Law or constitution.

    Notwithstanding the foregoing, nothing in this Section 6, or in this Agreement generally, shall waive, release, or discharge: (A) any right to file an administrative charge or complaint with, or testify, assist, or participate in an investigation, hearing, or proceeding conducted by, the Equal Employment Opportunity Commission, Michigan's Department of Civil Rights, the Massachusetts Commission Against Discrimination, the Securities and Exchange Commission, or other similar federal or state administrative or regulatory agencies, although you waive any right to monetary relief related to any filed charge or complaint; (B) claims that cannot be waived by law, such as claims for unemployment benefit rights and workers' compensation; (C) indemnification rights you have or may have against the Company; (D) any right to file an unfair labor practice charge under the National Labor Relations Act; any; and (E) any rights to vested benefits, such as pension or retirement benefits, the rights to which are governed by the terms of the applicable plan documents and award agreements.  You also acknowledge and agree that, but for providing this waiver and release, you would not be receiving the Severance Pay and Benefits provided for in this Agreement.

7.OWBPA.  Because you are at least forty (40) years of age, you have specific rights under the federal Age Discrimination in Employment Act (“ADEA”) and Older Workers Benefit Protection Act (“OWBPA”), which prohibit discrimination on the basis of age.  The release in Section 6 is intended to release any Claim you may have against Millendo 

alleging discrimination on the basis of age under the ADEA, OWBPA, and other Laws and, by signing this Agreement, you acknowledge and confirm that:
a.You have read this Agreement in its entirety and understand all of its terms;
b.By this Agreement, you have been advised in writing to consult with legal counsel prior to signing this Agreement for the purpose of reviewing the terms of this Agreement;
c.You knowingly, freely, and voluntarily agree to all of the terms and conditions set out in this Agreement including, without limitation, the waiver, release, and covenants contained in it; 
d.You are signing this Agreement, including the waiver and release, in exchange for good and valuable consideration in addition to anything of value to which you are otherwise entitled;   
e.You have been given until March 13, 2021, forty-five (45) days from the date you originally received this Agreement (January 27, 2021), to consider and accept the terms of this Agreement by signing below and returning it to Millendo, Denise Dorigo Jones or to ddorigojones@millendo.com.  You specifically agree that negotiated changes to this Agreement (material or immaterial) do not extend or re-start this 45-day consideration period.  In addition you have seven (7) days after signing to revoke this Agreement by emailing your notice of revocation to Millendo, Denise Dorigo Jones at ddorigojones@millendo.com.
f.Consistent with the provisions of the OWBPA, Millendo is providing you with the Disclosure attached to this Agreement as Exhibit B, in accordance with 29 U.S.C. § 626(f)(1)(H); and
g.You understand that this release does not apply to rights or claims that may arise after you sign this Agreement.
8.Section 409A.  
a.Notwithstanding anything to the contrary herein, the following provisions apply to the extent severance benefits provided herein are subject to Section 409A of the Internal Revenue Code (the “Code”) and the regulations and other guidance thereunder and any state law of similar effect (collectively “Section 409A”).  The parties intend for your termination of employment to be a “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “separation from service”) on the Separation Date.  Severance benefits shall not commence until you have a “separation from service.”   Each installment of severance benefits is a separate “payment” for purposes of Treas. Reg. Section 1.409A-2(b)(2)(i), and the severance benefits are intended to satisfy the exemptions from application of Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9).  However, if such exemptions are not available and you are, upon separation from service, a “specified employee” for purposes of Section 409A, then, solely to the extent necessary to avoid adverse personal tax consequences under Section 409A, the timing of the severance benefits payments shall be delayed until the earlier of (i) six (6) months and one day after your separation from service, or (ii) your death.  The parties acknowledge that the exemptions from application of Section 409A to severance benefits are fact specific, and any later amendment of this Agreement to alter the timing, amount or conditions that will trigger payment of severance benefits may preclude the ability of severance benefits provided under this Agreement to qualify for an exemption.
b.It is intended that this Agreement shall comply with the requirements of Section 409A, and any ambiguity contained herein shall be interpreted in such manner so as to avoid adverse personal tax consequences under Section 409A. Notwithstanding the foregoing, the Company shall in no event be obligated to indemnify you for any taxes or interest that may be assessed by the Internal Revenue Service pursuant to Section 409A of the Code to payments made pursuant to this Agreement.
9.Section 280G; Limitations on Payment.
a.If any payment or benefit you will or may receive from the Company or otherwise under this Agreement (a “280G Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then any such 280G Payment provided pursuant to this Agreement (a “Payment”) shall be equal to the Reduced Amount.  The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment (after reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the 

Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in your receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax.  If a reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction shall occur in the manner (the “Reduction Method”) that results in the greatest economic benefit for you.  If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”).
b.Notwithstanding any provision of Section 9(a) to the contrary, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A that would not otherwise be subject to taxes pursuant to Section 409A, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for you as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without Cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are “deferred compensation” within the meaning of Section 409A shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A.
c.Unless you and the Company agree on an alternative accounting firm or law firm, the accounting firm engaged by the Company for general tax compliance purposes as of the day prior to the effective date of the change in control transaction shall perform the foregoing calculations.  If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the change in control transaction, the Company shall appoint a nationally recognized accounting or law firm to make the determinations required by this Section 9.  The Company shall bear all expenses with respect to the determinations by such accounting or law firm required to be made hereunder.
d.If you receive a Payment for which the Reduced Amount was determined pursuant to clause (x) of Section 9(a) and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, you agree to promptly return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of Section 9(a)) so that no portion of the remaining Payment is subject to the Excise Tax.  For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) of Section 9(a), you shall have no obligation to return any portion of the Payment pursuant to the preceding sentence.
10.Consequences of Breach.  In addition to any other remedies set forth in this Agreement, a breach by you of any of your obligations set forth in this Agreement shall constitute a material breach of this Agreement and, in addition to any other legal or equitable remedy available to Millendo, shall entitle Millendo to cease any further payment of the Severance Pay and Benefits, and to recover any Severance Pay and Benefits already provided to you.  Regardless of any such breach, your release set forth in Section 6 above shall remain in full force and effect.  
11.Entire Agreement/Choice of Law/Enforceability/Jury Waiver/Successors and Assigns. 
a.Except as otherwise expressly provided in this Agreement (including the agreement referenced in Section 4(a)), this Agreement supersedes any and all other prior oral and/or written agreements (including without limitation the Amended and Restated Employment Terms effective as of January 1, 2019 between you and the Company or any similar agreement), and sets forth the entire agreement between you and Millendo.  No variations or modifications hereof shall be deemed valid unless reduced to writing and signed by the parties hereto. 
b.This Agreement shall be governed by the law of the state where you reside on the date you sign this Agreement, without giving effect to conflict of law principles.
c.Both parties further agree that any action, demand, claim or counterclaim relating to this Agreement shall be resolved by a judge alone, and both parties hereby waive and forever renounce the right to a trial before a civil jury.  
d.The terms of this Agreement are severable, and if for any reason any part hereof shall be found to be unenforceable, the remaining terms and conditions shall be enforced in full.

e.This Agreement shall inure to the benefit of Millendo and any of its successors and assigns.  
    It is Millendo’s desire and intent to make certain that you fully understand the provisions and effects of this Agreement.  By executing this Agreement, you are acknowledging (a) that you have been afforded sufficient time to understand the terms and effects of this Agreement and to consult with legal counsel, (b) that your agreements and obligations hereunder are made voluntarily, knowingly and without duress, and (c) that neither Millendo nor its agents or representatives have made any representations inconsistent with the provisions of this Agreement.      
    If you agree to the terms of this Agreement, please sign and return the enclosed copy of this Agreement no later than March 13, 2021.  

Very truly yours,

															
	Millendo Therapeutics US, Inc.		Accepted and Agreed To:
					
	By:	/s/ Carol Gallagher		/s/ Julia C. Owens
		Carol Gallagher		Julia C. Owens
		Chairperson, Millendo Board of Directors			
					
	Dated:	January 27, 2021		Dated:	January 27, 2021
					

Exhibit A

NOTICE OF IMMUNITY

As required by law, the Company hereby notifies you of the following provisions of the Defend Trade Secrets Act of 2016. 

IMMUNITY FROM LIABILITY FOR CONFIDENTIAL DISCLOSURE OF A TRADE SECRET TO THE GOVERNMENT OF IN A COURT FILING—

(1)    IMMUNITY—An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that—
(A)    is made –
(i)    in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and
(ii)    solely for the purpose of reporting or investigating a suspected violation of law; or
(B)    is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

(2)    USE OF TRADE SECRET INFORMATION IN ANTI-RETALIATION LAWSUIT—An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual—
(A)    files any document containing the trade secret under seal; and
(B)    does not disclose the trade secret, except pursuant to court order.

Exhibit B
DISCLOSURE UNDER TITLE 29 U.S. CODE SECTION 626(f)(1)(H)
Confidentiality Provision:    The information contained in this document is private and confidential.  You may not disclose this information to anyone except your professional advisors.
1.    The entire company was considered for an enhanced severance package program.
2.    Employees whose job positions will be eliminated in or about January 2021 are eligible to participate in the enhanced severance package program.
3.    Employees were chosen for participation in this enhanced severance package program based on the following criteria:
a.     Restructuring due to the decision to cease development activity.
b.    Decisions were made after considering the need for remaining employees to take on additional and/or different responsibilities in order to wind-down operations.
c.     Position Elimination
4.    These data are subject to change and may be affected by future employment decisions.  
5.    An eligible employee will have up to forty-five (45) days to review the terms and conditions of the severance package, and in addition you have seven (7) days after signing to revoke this Agreement.
						
	Employees Eligible For The Severance Package Program
	Job Title	Age
	VP, CMC	##
	VP, Clinical Operations	##
	VP, Clinical Development	##
	Director, Clinical Operations	##
	Sr. Manager, Clinical Operations	##
	Sr. Administrative Assistant	##
	President and CEO	##
	Chief Medical Officer	##
	Chief Development Officer	##

						
	Employees Not Eligible For The Severance Package Program
	Job Title	Age
	Chief Business Officer	##
	Chief Financial Officer	##
	Accounting Director	##
	VP, Corporate Affairs	##
	VP, Human Resources	##
	Interim General Counsel	##
	Senior Accountant	##
	Legal and Administrative Affairs Manager	##
	Scientist, Preclinical R&D	##
	Executive Assistant	##
	VP, Finance	##
	Director, Financial Reporting	##
	IT and HR Analyst	##Document

EXHIBIT 10.31

January 27, 2021

Louis J. Arcudi III
4 Whitney Road
Hopedale, MA 01747

Re:    Amended and Restated Employment Terms
Dear Lou:
Millendo Therapeutics US, Inc. (the “Company”) desires to amend and restate the terms of your employment in connection with your appointment as Chief Executive Officer of the Company pursuant to the terms of this letter (the “Agreement”).   Subject to your execution of this Agreement, effective as of February 1, 2021 (the “Effective Date”) this Agreement amends, restates and supersedes in its entirety your Employment Terms with Millendo Therapeutics US, Inc. effective January 1, 2019 (the “Prior Agreement”).  
1.Duties and Responsibilities.  As the Chief Executive Officer, you will have the duties and responsibilities set forth in the job description for such position, and such other duties as may be reasonably assigned. It is anticipated that such duties will include your providing services to Millendo Therapeutics, Inc. (the “Parent”) as Parent’s Chief Executive Officer, without further or additional compensation or benefits other than as set forth in this Agreement.  You will report to the Parent’s Board of Directors (the “Board”).    
2.Location.  You will continue to be home based, subject to business travel as necessary.  
3.Compensation.
a.Base Salary.  Starting on the Effective Date, your annual base salary rate will be $447,600, less payroll deductions and all required withholdings and subject to review and adjustment by the Company in its sole discretion (“Base Salary”).  You will be paid in accordance with the Company’s standard payroll practices, currently semi-monthly. Because your position is classified as exempt, you will not be eligible for overtime premiums. 
b.Bonus.  You will continue to be eligible to earn an annual performance bonus targeted at 40% (the “Target Amount”) of your then-current base salary (“Annual Bonus”). The Annual Bonus will be based upon the assessment by the Board, or any authorized committee thereof, in its sole discretion, of both your performance and the Company’s performance. The Board, or any authorized committee thereof, may, in its sole discretion, approve an Annual Bonus in an amount in excess of the Target Amount.  The Annual Bonus, if any, will be subject to applicable payroll deductions and withholdings. Following the close of each calendar year, the Company and the Board (or any authorized committee thereof) will determine whether you have earned the Annual Bonus, and the amount of any Annual Bonus. No amount of the Annual Bonus is guaranteed, and you must be an employee in good standing on the Annual Bonus payment date to be eligible to receive an Annual Bonus.  Your eligibility for an Annual Bonus is subject to change in the discretion of the Company or the Board (or any authorized committee thereof).
c.Retention Bonus. You are eligible to earn a retention bonus in the amount of $630,000 (the “Retention Bonus”), payable in two equal installments of $315,000 (each, a separate “Retention Bonus Payment”) in accordance with the terms set forth herein.  In order to earn the first Retention Bonus Payment (the “First Retention Bonus Payment”) you must: (i) remain employed by the Company on a full-time basis in good standing through June 30, 2021 (the “First Retention Date”); and (ii) execute, return and allow to become effective the Release Agreement attached hereto as Exhibit A (the “Retention Release”) within seven (7) days of the Effective Date (as set forth above).  The First Retention Bonus Payment will be advanced to you within seven (7) days of the Effective Date, provided that the Company has received and you have not revoked the signed Retention Release by such date; provided further, however, that if you are terminated by the Company for Cause (as defined below) or resign for any reason other than Good Reason (as defined below) prior to the First Retention Date, you will not have earned the First Retention Bonus Payment previously advanced to you and will be obligated to, and hereby agree to, repay the net, after-tax amount of the First Retention Bonus Payment advanced to you on or before the termination date.  You agree that if you are obligated to repay the First Retention Bonus Payment, the Company may deduct, in accordance with applicable law, amounts you are required to repay to the Company from any payments the Company owes you, including but not limited to any regular payroll amount and any expense payments.  You further agree to pay to the Company, 

within thirty (30) days of your effective termination date, any remaining unpaid balance of the unearned First Retention Bonus Payment not covered by such deductions.  For avoidance of doubt, if you are terminated by the Company without Cause or resign for Good Reason at any time, you will not be obligated to repay any portion of the First Retention Bonus Payment.  In order to earn the second Retention Bonus Payment (“Second Retention Bonus Payment”), you must (i) remain employed by the Company on a full-time basis in good standing through the earlier of (x) December 31, 2021 or (y) the closing of a Change in Control (as defined in Section 10(b) below) (such applicable date being the “Second Retention Date”); and (ii) execute, return and allow to become effective the Updated Release attached hereto as Exhibit B (the “Updated Release”) within seven (7) days following the Second Retention Date. The Second Retention Bonus Payment, if earned, will be paid within seven (7) days following the Second Retention Date.  Each earned Retention Bonus Payment under this Section 3(c) will be paid subject to applicable payroll withholdings and deductions.
d.Transaction Bonus.  In the event of a Change in Control (as defined in Section 10(b) below), and provided you remain employed by the Company in good standing through the closing of such Change in Control, the Company agrees to pay you a one-time cash bonus of $250,000, less payroll deductions and withholdings (the “Transaction Bonus”). The Transaction Bonus will be paid in a lump sum within seven (7) days following the closing of the Change in Control.  No partial or prorated bonuses will be provided under this Section 3(d).  
e.Expense Reimbursement.  The Company shall reimburse you for all customary and appropriate business-related expenses actually incurred and documented in accordance with Company policy, as in effect from time to time.  For the avoidance of doubt, to the extent that any reimbursements payable to you are subject to the provisions of Section 409A of the Code:  (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.Benefits.  You continue to be eligible to participate on the same basis as similarly situated employees in the Company’s benefit plans in effect from time to time during your employment.  All matters of eligibility for coverage or benefits under any benefit plan shall be determined in accordance with the provisions of such plan.  The Company reserves the right to change, alter or terminate any benefit plan in its sole discretion.     
5.Options. You were previously granted one or more options to purchase shares of the Parent’s common stock as set forth on Exhibit C hereto (collectively the “Existing Options”).  The Existing Options remain subject to the terms and conditions of the applicable plan pursuant to which such option(s) was granted (the Millendo Therapeutics, Inc. 2012 Stock Plan, as amended (the “Original Millendo Plan”), the OvaScience, Inc. (now known as Millendo Therapeutics, Inc.) 2012 Stock Incentive Plan, as amended (the “New Millendo Plan”) or the Millendo Therapeutics, Inc. 2019 Equity Incentive Plan, as amended (the “2019 Equity Incentive Plan”, and together with the Original Millendo Plan and the New Millendo Plan,  the “Stock Plans”), and the applicable option agreement(s) between you and the Company entered into pursuant to the applicable Stock Plan, and any applicable early exercise rights granted to you by the Company on March 4, 2016.  You understand, acknowledge and agree that, as of the date hereof, you do not hold any stock options or other incentive equity awards of the Parent, other than as set forth on Exhibit C, and that the Existing Options shall only be subject to accelerated vesting in the event of a change in control of or similar transaction involving Parent as set forth on Exhibit C hereto or as expressly provided in the applicable Stock Plan, option agreement or granting resolutions.
6.Company Policies.  As a Company employee, you shall continue to abide by all Company policies and procedures and all applicable policies and procedures of Parent as they may be interpreted, adopted, revised or deleted from time to time in the Company’s and Parent’s sole discretion.  
7.Employee Confidential Information, Inventions, Non-Solicitation and Non-Competition Agreement. As a condition of continued employment and the increased benefits provided herein, you will continue to comply with the Employee Confidential Information, Inventions, Non-Solicitation and Non-Competition Agreement (the “CIIA”) which prohibits unauthorized use or disclosure of the Company’s and the Parent’s and their affiliates’ respective proprietary information, and prohibits certain solicitations and competitive activities, among other obligations, that you previously signed effective as of January 1, 2019.  The CIIA contains provisions that are intended by the parties to survive and do survive termination of this Agreement.
8.At-Will Employment.  Your employment relationship with the Company continues to be at-will.  You may terminate your employment with the Company at any time and for any reason whatsoever simply by notifying the Company.  Likewise, the Company may terminate your employment at any time, with or without cause or advance notice, subject to 

Sections 9, 10 and 11.  Your employment at-will status can only be modified in a written agreement signed by you and the Board.  
9.Termination Without Cause or for Good Reason Absent a Change in Control.
a.If the Company terminates your employment, at any time except during the Change in Control Period (as defined below), without “Cause” (as defined below) or you resign for “Good Reason” (as defined below) then you shall be entitled to receive the Accrued Obligations (defined below).  Subject to your full compliance with this Section and Section 9(b) and provided that such termination constitutes a “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “Separation from Service”), if you timely execute a Separation Agreement that includes a general release of claims in favor of the Company and the Parent, in the form presented by the Company (the “Release”), and allow it to become effective in accordance with Section 9(b) (the date that the Release becomes effective and may no longer be revoked by you is referred to as the “Release Effective Date”), then the Company will provide you with the following “Severance Benefits:”
i.If you timely elect continued coverage under COBRA for yourself and your covered dependents under the Company’s group health plans following such termination, then the Company shall pay 100% of the COBRA premiums necessary to continue your and your covered dependents’ health insurance coverage in effect for yourself (and your covered dependents) on the termination date until the earliest of: (i) twelve (12) months following the termination date; (ii) the date when you become eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment; or (iii) the date you cease to be eligible for COBRA continuation coverage for any reason, including plan termination (such period from the termination date through the earlier of (i)-(iii), (the “COBRA Payment Period”).  Notwithstanding the foregoing, if at any time the Company determines that its payment of COBRA premiums on your behalf would result in a violation of applicable law (including, but not limited to, the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of paying COBRA premiums pursuant to this Section, the Company shall pay you on the last day of each remaining month of the COBRA Payment Period, a fully taxable cash payment equal to the COBRA premium for such month, subject to applicable tax withholding, for the remainder of the COBRA Payment Period.  Nothing in this Agreement shall deprive you of your rights under COBRA or ERISA for benefits under plans and policies arising under your employment by the Company.
b.    You shall not receive the Severance Benefits (pursuant to Section 9(a)) or Change in Control Severance Benefits (pursuant to and as defined in Section 10(a)) unless you execute the Release within the consideration period specified therein, which shall in no event be more than 60 days following your Separation from Service, and until the Release becomes effective and can no longer be revoked by you under its terms.  Your ability to receive the Severance Benefits or Change in Control Severance Benefits is further conditioned upon you:  returning all Company property and any Parent property; complying with your post-termination obligations under this letter and the CIIA; and complying with the Release including without limitation any non-disparagement and confidentiality provisions contained therein.  For the avoidance of doubt, you will only be eligible to receive, at most, either the Severance Benefits or the Change in Control Severance Benefits, but under no circumstance will you be eligible to receive both Severance Benefits and Change in Control Severance Benefits.
c.    The Severance Benefits (provided to you pursuant to Section 9(a)) or Change in Control Severance Benefits (provided to you pursuant to Section 10(a)) are in lieu of, and not in addition to, any benefits to which you may otherwise be entitled under any Company and any Parent severance plan, policy or program.
d.    The damages caused by your termination of employment without Cause would be difficult to ascertain; therefore, the Severance Benefits or Change in Control Severance Benefits for which you are eligible in exchange for the Release are agreed to by the parties as liquidated damages, to serve as full compensation, and not a penalty.
e.    “Cause” shall mean the Company (or its designee) has determined in its sole discretion that you have engaged in any of the following: (i) a material breach of any covenant or condition under this Agreement or any other agreement between the parties; (ii) any act constituting dishonesty, fraud, immoral or disreputable conduct; (iii) any conduct which constitutes a felony under applicable law; (iv) material violation of any Company policy or any applicable Parent policy or any act of misconduct; (v) refusal to follow or implement a clear and reasonable directive of Company or, if applicable, Parent; (vi) negligence or incompetence in the performance of your  duties or failure to perform such duties in a manner satisfactory to the Company after the expiration of ten (10) days without cure after written notice of such failure; or (vii) breach of fiduciary duty.
f.    For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following events without your consent: (i) a material reduction in your Base Salary of at least 10%; (ii) a material reduction in your duties, 

authority and responsibilities relative to your duties, authority, and responsibilities in effect immediately prior to such reduction; or (iii) the relocation of your principal place of employment, without your consent, in a manner that lengthens your one-way commute distance by fifty (50) or more miles from your then-current principal place of employment immediately prior to such relocation; provided, however, that, any such termination by you shall only be deemed for Good Reason pursuant to this definition if: (1) you give the Company written notice of your intent to terminate for Good Reason within thirty (30) days following the first occurrence of the condition(s) that you believe constitute(s) Good Reason, which notice shall describe such condition(s); (2) the Company fails to remedy such condition(s) within thirty (30) days following receipt of the written notice (the “Cure Period”); (3) the Company has not, prior to receiving such notice from you, already informed you that your employment with the Company is being terminated and (4) you voluntarily terminate your employment within thirty (30) days following the end of the Cure Period.
g.    For purposes of this Agreement, “Accrued Obligations” are (i) your accrued but unpaid salary through the date of termination, (ii) any unreimbursed business expenses incurred by you payable in accordance with the Company’s standard expense reimbursement policies, and (iii) benefits owed to you under any qualified retirement plan or health and welfare benefit plan in which you were a participant in accordance with applicable law and the provisions of such plan.
10.Termination Without Cause or for Good Reason Coincident with a Change in Control.  
a.    If you experience a “Termination Event,” which shall mean that your employment by the Company is terminated by the Company or any successor entity without Cause (not including termination by virtue of death or Disability (as defined below)) or by you for Good Reason in either case within twelve (12) months following or three (3) months prior to the effective date of a “Change in Control” (as defined in Section 10(b) below) (such time period referred to herein as the “Change in Control Period”), provided that such Termination Event constitutes a Separation from Service, then in addition to providing you with the Accrued Obligations and subject to your compliance with Sections 9(a) and 9(b), the Company will provide you with the following “Change in Control Severance Benefits:”
i.If you timely elect continued coverage under COBRA for yourself and your covered dependents under the Company’s group health plans following such termination, then the Company shall pay 100% of the COBRA premiums necessary to continue your and your covered dependents’ health insurance coverage in effect for yourself (and your covered dependents) on the termination date until the earliest of: (i) eighteen (18) months following the termination date; (ii) the date when you become eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment; or (iii) the date you cease to be eligible for COBRA continuation coverage for any reason, including plan termination (such period from the termination date through the earlier of (i)-(iii), (the “COBRA Payment Period”).  Notwithstanding the foregoing, if at any time the Company determines that its payment of COBRA premiums on your behalf would result in a violation of applicable law (including, but not limited to, the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of paying COBRA premiums pursuant to this Section, the Company shall pay you on the last day of each remaining month of the COBRA Payment Period, a fully taxable cash payment equal to the COBRA premium for such month, subject to applicable tax withholding, for the remainder of the COBRA Payment Period.  Nothing in this Agreement shall deprive you of your rights under COBRA or ERISA for benefits under plans and policies arising under your employment by the Company; 
ii.Notwithstanding anything to the contrary set forth in any applicable equity incentive plans or award agreements, and provided the applicable stock option or other equity award is assumed or continued by the successor or acquiror entity in such Change in Control or such stock option or other equity award is substituted for a similar award of the successor or acquiror entity, then effective as of the later of the effective date of the Change in Control or the date of the Termination Event, the vesting and exercisability of (i) the Existing Options subject to acceleration of vesting upon a Change in Control, as stated on Exhibit C, and (ii) all equity awards granted after the date of this Agreement that are subject to a time-based vesting schedule, shall accelerate such that all such shares become immediately vested and exercisable by you.  The applicable Existing Options and all applicable equity awards granted after the date of this Agreement shall remain outstanding following the Termination Event if and to the extent necessary to give effect to this Section 10(a)(ii), subject to the original maximum term of the award (without regard to your termination).
b.    “Change in Control” means the occurrence of any of the following events: (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Securities Exchange Act of 1934), directly or indirectly, of securities of the Parent representing 50% or more of the total voting power represented by the Parent’s then outstanding voting securities; (ii) the consummation of the sale or disposition by the Parent of all or substantially all of the Parent’s assets; or (iii) the consummation of a merger or consolidation of the Parent with any other corporation, other than a merger or consolidation which would result in the voting securities of the 

Parent outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least 50% of the total voting power represented by the voting securities of the Parent or such surviving entity or its parent outstanding immediately after such merger or consolidation.
11.Other Terminations.
a.    For all other types of terminations, including a resignation by you not for Good Reason, a termination for Cause, or a termination on account of your death or Disability, you will not be eligible to receive the Severance Benefits or Change in Control Severance Benefits and the Company will be required only to provide the Accrued Obligations.  
b.    Anything in this letter to the contrary notwithstanding, in the event the Company’s business is discontinued because rendered impracticable by substantial financial losses, lack of funding, legal decisions, administrative rulings, declaration of war, dissolution, national or local economic depression or crisis or any reasons beyond the control of the Company, then your employment shall terminate as of the day the Company determines to cease operations.  In the event your employment is terminated pursuant to this Section 11(b), you will not receive the Severance Benefits, the Change in Control Severance Benefits, or any other severance compensation or benefit, except that, pursuant to the Company’s standard payroll policies, the Company shall provide the Accrued Obligations.
c.    For purposes of this Agreement, termination by the Company based on “Disability” shall mean termination because you are unable due to a physical or mental condition to perform the essential functions of your position with or without reasonable accommodation for six (6) months in the aggregate during any twelve (12) month period or based on the written certification by two licensed physicians of the likely continuation of such condition for such period.  This definition shall be interpreted and applied consistent with the Americans with Disabilities Act, the Family and Medical Leave Act, and other applicable law.
12.Section 409A.
a.Notwithstanding anything to the contrary herein, the following provisions apply to the extent severance benefits provided herein are subject to Section 409A of the Internal Revenue Code (the “Code”) and the regulations and other guidance thereunder and any state law of similar effect (collectively “Section 409A”).  Severance benefits shall not commence until you have a “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “separation from service”).   Each installment of severance benefits is a separate “payment” for purposes of Treas. Reg. Section 1.409A-2(b)(2)(i), and the severance benefits are intended to satisfy the exemptions from application of Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9).  However, if such exemptions are not available and you are, upon separation from service, a “specified employee” for purposes of Section 409A, then, solely to the extent necessary to avoid adverse personal tax consequences under Section 409A, the timing of the severance benefits payments shall be delayed until the earlier of (i) six (6) months and one day after your separation from service, or (ii) your death.  The parties acknowledge that the exemptions from application of Section 409A to severance benefits are fact specific, and any later amendment of this Agreement to alter the timing, amount or conditions that will trigger payment of severance benefits may preclude the ability of severance benefits provided under this Agreement to qualify for an exemption.
b.It is intended that this Agreement shall comply with the requirements of Section 409A, and any ambiguity contained herein shall be interpreted in such manner so as to avoid adverse personal tax consequences under Section 409A. Notwithstanding the foregoing, the Company shall in no event be obligated to indemnify you for any taxes or interest that may be assessed by the Internal Revenue Service pursuant to Section 409A of the Code to payments made pursuant to this Agreement.
13.Section 280G; Limitations on Payment.
a.    If any payment or benefit you will or may receive from the Company or otherwise under Section 10 of this Agreement (a “280G Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then any such 280G Payment provided pursuant to this Agreement (a “Payment”) shall be equal to the Reduced Amount.  The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment (after reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in your receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be 

subject to the Excise Tax.  If a reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction shall occur in the manner (the “Reduction Method”) that results in the greatest economic benefit for you.  If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”).
b.    Notwithstanding any provision of Section 13(a) to the contrary, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A that would not otherwise be subject to taxes pursuant to Section 409A, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for you as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without Cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are “deferred compensation” within the meaning of Section 409A shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A.
c.    Unless you and the Company agree on an alternative accounting firm or law firm, the accounting firm engaged by the Company for general tax compliance purposes as of the day prior to the effective date of the change in control transaction shall perform the foregoing calculations.  If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the change in control transaction, the Company shall appoint a nationally recognized accounting or law firm to make the determinations required by this Section 13.  The Company shall bear all expenses with respect to the determinations by such accounting or law firm required to be made hereunder.
d.    If you receive a Payment for which the Reduced Amount was determined pursuant to clause (x) of Section 13(a) and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, you agree to promptly return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of Section 13(a)) so that no portion of the remaining Payment is subject to the Excise Tax.  For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) of Section 13(a), you shall have no obligation to return any portion of the Payment pursuant to the preceding sentence.
14.Obligations to Prior Employers.  In your work for the Company and in the context of providing services to the Parent, you will continue to be expected not to use or disclose any confidential information, including trade secrets, of any former employer or other person to whom you have an obligation of confidentiality.  Rather, you will be expected to use only that information which is generally known and used by persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company or the Parent.  You agree that you will not bring onto Company or Parent premises any unpublished documents or property belonging to any former employer or other person to whom you have an obligation of confidentiality.  You specifically warrant that you are not subject to an employment agreement or restrictive covenant preventing full performance of your duties under this Agreement.  You also agree to honor all obligations to former employers during your employment with the Company and in the context of providing services to the Parent.
15.Outside Activities during Employment.  Except with the prior written consent of the Board, including consent given to you prior to the signing of this Agreement, you will not, while employed by the Company, undertake or engage in any other employment, occupation or business enterprise that would interfere with your responsibilities and the performance of your duties hereunder except for (i) reasonable time devoted to volunteer services for or on behalf of such religious, educational, non-profit and/or other charitable organization as you may wish to serve, (ii) reasonable time devoted to activities in the non-profit and business communities consistent with your duties; and (iii) such other activities as may be specifically approved by the Board. This restriction shall not, however, preclude you (x) from owning less than one percent (1%) of the total outstanding shares of a publicly traded company, or (y) from employment or service in any capacity with Affiliates of the Company.  As used in this Agreement, “Affiliates” means an entity under common management or control with the Company.
16.Complete Agreement.  This letter, together with your CIIA and all policies and procedures of the Company and, as applicable, the Parent, forms the complete and exclusive statement of your continued employment agreement with the Company.  It supersedes any other representations or promises made to you by anyone, whether oral or written, including the Prior Agreement.  You and the Company and/or the Parent may have entered into agreements relating to your equity in the Parent, which are not affected by this Agreement unless otherwise stated herein.  If you and the Company have entered into a prior agreement relating to proprietary information and inventions assignment, that agreement shall be superseded prospectively only.  No term or provision of this Agreement may be amended waived, released, discharged or modified except in writing, 

signed by you and an authorized officer of the Company, except that the Company may, in its sole discretion, adjust salaries, incentive compensation, stock plans, benefits, job titles, locations, duties, responsibilities, and reporting relationships.
17.Successors and Assigns.  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.  The Company may assign this Agreement and its rights and obligations hereunder in whole or in part, to the Parent and to any company or other entity (including an affiliated entity) with or into which the Company may hereafter merge or consolidate, or who becomes a successor, or to which the Company may transfer all or substantially all of its assets, and, in consideration of your employment or continued employment hereunder, you hereby consent to any such assignment.  You may not assign or transfer this Agreement or any rights or obligations hereunder, other than to your estate upon your death.
18.Resolution of Disputes.  The parties recognize that litigation in federal or state courts or before federal or state administrative agencies of disputes arising out of your employment with the Company or out of this Agreement, or your termination of employment or termination of this Agreement, may not be in the best interests of either you or the Company, and may result in unnecessary costs, delays, complexities, and uncertainty.  The parties agree that any dispute between the parties arising out of or relating to the negotiation, execution, performance or termination of this Agreement or your employment, including, but not limited to, any claim arising out of this Agreement, claims under Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, Section 1981 of the Civil Rights Act of 1966, as amended, the Family Medical Leave Act, the Employee Retirement Income Security Act, and any similar federal, state or local law, statute, regulation, or any common law doctrine, whether that dispute arises during or after employment, shall be settled by binding arbitration conducted before a single arbitrator by JAMS, Inc. (“JAMS”) or its successor, under the then applicable JAMS rules; provided, however, that this dispute resolution provision shall not apply to any separate agreements between the parties that do not themselves specify arbitration as an exclusive remedy.  The location for the arbitration shall be in the Ann Arbor/Detroit, Michigan area.  Any award made by such arbitrator shall be final, binding and conclusive on the parties for all purposes, and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof.  The arbitrators’ fees and expenses and all administrative fees and expenses associated with the filing of the arbitration shall be borne by the Company; provided, however, that at your option, you may voluntarily pay up to one-half the costs and fees.  The parties acknowledge and agree that their obligations to arbitrate under this Section survive the termination of this Agreement and continue after the termination of the employment relationship between you and the Company. The parties each further agree that the arbitration provisions of this Agreement shall provide each party with its exclusive remedy, and each party expressly waives any right it might have to seek redress in any other forum, except as otherwise expressly provided in this Agreement.  By electing arbitration as the means for final settlement of all claims, the parties hereby waive their respective rights to, and agree not to, sue each other in any action in a federal, state or local court with respect to such claims, but may seek to enforce in court an arbitration award rendered pursuant to this Agreement.  The parties specifically agree to waive their respective rights to a trial by jury, and further agree that no demand, request or motion will be made for trial by jury.  In addition, all claims, disputes, or causes of action under this Section, whether by you or the Company, must be brought in an individual capacity, and shall not be brought as a plaintiff (or claimant) or class member in any purported class or representative proceeding, nor joined or consolidated with the claims of any other person or entity.  The arbitrator may not consolidate the claims of more than one person or entity, and may not preside over any form of representative or class proceeding.  To the extent that the preceding sentences regarding class claims or proceedings are found to violate applicable law or are otherwise found unenforceable, any claim(s) alleged or brought on behalf of a class shall proceed in a court of law rather than by arbitration.
Please sign and date this letter, and return them to me by January 27, 2021 if you wish to accept continued employment at the Company under the terms described above.  

We thank you for your service to date and look forward to the opportunity to continue working with you.
Sincerely,
						
	/s/ Carol Gallagher	
	Name: Carol Gallagher	
	Title: Chairperson, Millendo Board of Directors	
		
		
		
	Agreed and Accepted:	
		
		
	/s/ Louis J. Arcudi III	
	Louis J. Arcudi III	
	Date: January 27, 2021

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00325-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00325-of-00352.parquet"}]]