Document:

EX-10.1

 Exhibit 10.1 

EXECUTIVE EMPLOYMENT AGREEMENT 

This EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into effective as of
October 12, 2015 (the “Effective Date”), by and between HERON THERAPEUTICS, INC. (the “Company”), and NEIL CLENDENINN (the
“Executive”). The Company and the Executive are hereinafter collectively referred to as the “Parties”, and individually referred to as a
“Party”. 
 AGREEMENT 

In consideration of the foregoing and the mutual promises and covenants herein contained, and for other good and valuable consideration, the
Parties, intending to be legally bound, agree as follows: 
 1. EMPLOYMENT. 

1.1 Title. The Executive shall initially have the title of Senior Vice President and Chief Medical Officer of the Company and shall
serve in such other capacity or capacities as the Company may from time to time prescribe and to which the Executive agrees. The Executive shall initially report to the Chief Executive Officer. 

1.2 Duties. The Executive shall do and perform all services, acts or things necessary or advisable to manage and conduct the business
of the Company and which are normally associated with the position of Senior Vice President and Chief Medical Officer, consistent with the Bylaws of the Company and as required by the Board of Directors of the Company (the
“Board”). 
 1.3 Policies and Practices. The employment relationship between the Parties shall be governed by
the policies and practices established by the Company and the Board. The Executive acknowledges that he has read the Company’s employee handbook and other governing policies, which will govern the terms and conditions of his employment with the
Company, collectively with this Agreement. In the event that the terms of this Agreement differ from or are in conflict with the Company’s policies or practices or the Company’s employee handbook, this Agreement shall control. 

2. LOYAL AND CONSCIENTIOUS PERFORMANCE; NONCOMPETITION. 

2.1 Loyalty. During the Executive’s employment by the Company, the Executive shall devote the Executive’s full business
energies, interest, abilities and productive time to the proper and efficient performance of the Executive’s duties under this Agreement. 

2.2 Covenant Not to Compete. Except with the prior written consent of the Board, which shall not be unreasonably withheld, the
Executive will not, during his employment by the Company, engage in competition with the Company and/or any of its Affiliates, either directly or indirectly, in any manner or capacity, as adviser, principal, agent, affiliate, promoter, partner,
officer, director, employee, stockholder, owner, co-owner, consultant, or member of any association or otherwise, in any phase of the business of developing, manufacturing and marketing of products or services which are in the same field of use or
which otherwise compete with the products or services or proposed products or services of the Company and/or any of its Affiliates. For purposes of this Agreement, “Affiliate” means, with respect to any specific
entity, any other entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with such specified entity. 

 2.3 Agreement Not to Participate in Company’s Competitors. During the term of this
agreement, the Executive agrees not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by the Executive to be adverse or antagonistic to the Company, its business or prospects, financial or
otherwise or in any company, person or entity that is, directly or indirectly, in competition with the business of the Company or any of its Affiliates. Ownership by the Executive, as a passive investment, of less than two percent (2%) of the
outstanding shares of capital stock of any corporation with one or more classes of its capital stock listed on a national securities exchange or in the over-the-counter market shall not constitute a breach of this paragraph. 

3. COMPENSATION OF THE EXECUTIVE. 

3.1 Base Salary. The Company shall pay the Executive a base salary of at least $400,000 per year, less payroll deductions and all
required withholdings payable in regular periodic payments in accordance with Company policy. Such base salary shall be prorated for any partial year of employment on the basis of a 365-day fiscal year. 

3.2 Performance Bonus. In addition to the Executive’s base salary, the Executive shall be eligible for a performance bonus based
upon the Executive’s and the Company’s achievement of specified objectives established by the Board during the first quarter of each year after consultation with the Executive, as evaluated by the Board in its discretion. The target bonus
for full achievement of all objectives shall be 40% of the Executive’s Base Salary. 
 3.3 Equity Incentives. 

(a) Subject to approval by the Board (or the compensation committee thereof), as soon as practicable following the Effective Date, Executive
will be granted an option to purchase up to 150,000 shares of the Company’s common stock (the “Option”). Subject to the Executive continuing to serve as Senior Vice President and Chief Medical Officer of
the Company (except as set forth below), vesting of the Option will be as follows: (i) 100,000 shares (the “Time-Based Shares”) vesting over a four-year period, with 25,000 shares vesting on the first anniversary of the
date of grant, and then the remainder of the Time-Based Shares vesting pro rata monthly thereafter over the next three years, and (ii) 50,000 shares vesting upon receipt by the Company of FDA approval for SUSTOL (the shares subject to vesting
in clause (ii) being the “Performance-Based Shares”). If any vesting condition for the Performance-Based Shares is met within 60 days following Executive’s termination of service either by the Company without Cause
or by the Executive for Good Reason, then the vesting condition will be deemed satisfied with respect to that condition (such circumstance being a “Post-Termination Vesting Event”). The Option will have a ten-year term and
will be treated as an incentive stock option to the maximum extent possible under applicable regulations, with the remainder being non-statutory stock options. The portion of the Option that is vested as of the date of termination of the
Executive’s service with the Company shall remain exercisable for a period of 90 days following termination. Any portion of the Option that vests as a result of a Post-Termination Vesting Event shall remain exercisable for a period of 90 days
following the occurrence of such event. 

  
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 3.4 Changes to Compensation. The Executive’s compensation will be reviewed on a
regular basis by the Company and may be changed from time to time as deemed appropriate. For clarity, the provisions of this Section 3.4 are not meant to supersede the right of the Executive to terminate for Good Reason in the event of a
material reduction of Executive’s Base Salary as provided in Section 4.5.3. 
 3.5 Employment Taxes. All of the
Executive’s compensation shall be subject to customary withholding taxes and any other employment taxes as are commonly required to be collected or withheld by the Company. 

4. TERMINATION. 
 4.1
Termination by the Company. The Executive’s employment by the Company shall be at will. The Executive’s employment with the Company may be terminated by the Company at any time and for any reason or no reason, with or without
“Cause” (as defined below), subject to the provisions of this Section 4. 
 4.2 Termination by
Mutual Agreement of the Parties. The Executive’s employment pursuant to this Agreement may be terminated at any time upon a mutual agreement in writing of the Parties. Any such termination of employment shall have the consequences specified
in such agreement. 
 4.3 Termination by the Executive. The Executive’s employment by the Company shall be at will. The
Executive shall have the right to resign or terminate the Executive’s employment at any time and for any reason, or no reason, with or without “Good Reason” (as defined below), subject to the provisions of
this Section 4. 
 4.4 Compensation Upon Termination. 

4.4.1 With Cause or Without Good Reason. If the Executive’s employment shall be terminated by the Company for Cause, or if the
Executive terminates employment hereunder for other than Good Reason, the Company shall pay the Executive’s base salary and accrued and unused vacation benefits earned through the date of termination at the rate in effect at the time of
termination, less standard deductions and withholdings, and the Company shall thereafter have no further obligations to the Executive under this Agreement. 

4.4.2 Without Cause or With Good Reason. If the Executive’s employment shall be terminated by the Company without Cause, or by
the Executive for Good Reason, the Executive shall receive the payments specified in Section 4.4.1, and, in addition, within ten days of the Executive’s delivery to the Company of a fully effective and irrevocable Release and Waiver in the
form attached hereto as Exhibit A, within the applicable time period set forth therein, but in no event later than 21 days following termination of the Executive’s employment, the Executive shall receive the following: (i) a
lump sum payment equal to the sum of (A) the Executive’s annual base salary then in effect and (B) the Executive’s target performance bonus then in effect, less required deductions and withholdings; (ii) accelerated
time-based vesting of shares subject to all stock awards issued by the Company, for the number of shares which would have vested accordingly had the Executive continued employment with the Company for a period of 12 months after termination (for the
avoidance of doubt, which shall include partial accelerated vesting of the Time-Based Shares, but not the Performance-Based 

  
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Shares); and (iii) to the extent permitted under applicable law, reimbursement for or continuation of payment by the Company of its portion of the health insurance benefits provided to
Executive immediately prior to termination pursuant to the terms of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) or other applicable law for a period of up to 12 months from the date
of termination. 
 4.4.3 Change in Control. If the Executive’s employment shall be terminated by the Company without Cause, or
by the Executive for Good Reason within three months before or within 18 months following a Change in Control, the Executive shall receive the payments specified in Section 4.4.1, and, in addition, within ten days of the Executive’s
delivery to the Company of a fully effective and irrevocable Release and Waiver in the form attached hereto as Exhibit A, within the applicable time period set forth therein, but in no event later than 45 days following
termination of the Executive’s employment, the Executive shall receive the following: (i) a lump sum payment equal to the Executive’s annual base salary then in effect, less required deductions and withholdings; (ii) the greater
of the Executive’s target performance bonus then in effect, less required deductions and withholdings, or the Executive’s performance bonus paid in the year preceding the year in which termination occurs, less required deductions and
withholdings; (iii) accelerated vesting of 100% of any outstanding and unvested stock awards held by the Executive at such time (including both time-based and performance-based stock awards) and (iv) to the extent permitted under
applicable law, provided that the Executive timely elects continued coverage under COBRA, the COBRA benefit for a period of up to 12 months. 

4.4.4 Parachute Payment. If any payment or benefit Executive would receive pursuant to a Change in Control or otherwise
(“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 such Payment shall be reduced 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 being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, 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 the Executive’s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or
some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following
order: reduction of cash payments; cancellation of accelerated vesting of stock awards; reduction of employee benefits. In the event that acceleration of vesting of stock award compensation is to be reduced, such acceleration of vesting shall be
cancelled in the reverse order of the date of grant of Executive’s stock awards. 
 The accounting firm engaged by the Company for
general audit purposes as of the day prior to the effective date of the Change in Control 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, then the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting
firm required to be made hereunder. 

  
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 The accounting firm engaged to make the determinations hereunder shall provide its calculations,
together with detailed supporting documentation, to the Executive and the Company within 15 calendar days after the date on which the Executive’s right to a Payment is triggered (if requested at that time by the Executive or the Company) or
such other time as requested by the Executive or the Company. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Executive and the Company. 

4.4.5 Application of Section 409A. Notwithstanding anything to the contrary set forth herein, any payments and benefits provided
under this Agreement (the “Severance Benefits”) that constitute “deferred compensation” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)
and the regulations and other guidance thereunder and any state law of similar effect (collectively “Section 409A”) that are payable upon termination of employment shall not commence in connection with Executive’s
termination of employment unless and until Executive has also incurred a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h) (“Separation From Service”)), unless the
Company reasonably determines that such amounts may be provided to Executive without causing Executive to incur the additional 20% tax under Section 409A. 

It is intended that each installment of the Severance Benefits payments provided for in this Agreement is a separate “payment” for
purposes of Treasury Regulation Section 1.409A- 2(b)(2)(i). For the avoidance of doubt, it is intended that payments of the Severance Benefits set forth in this Agreement satisfy, to the greatest extent possible, the exemptions from the
application of Section 409A provided under Treasury Regulation Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). However, if the Company (or, if applicable, the successor entity thereto) determines that the Severance Benefits
constitute “deferred compensation” under Section 409A and Executive is, on the termination of Executive’s service, a “specified employee” of the Company or any successor entity thereto, as such term is defined in
Section 409A(a)(2)(B)(i) of the Code, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the Severance Benefit payments shall be delayed until the earlier
to occur of: (i) the date that is six months and one day after Executive’s Separation From Service or (ii) the date of Executive’s death (such applicable date, the “Specified Employee Initial Payment
Date”), and the Company (or the successor entity thereto, as applicable) shall (A) pay to Executive a lump sum amount equal to the sum of the Severance Benefit payments that Executive would otherwise have received through the
Specified Employee Initial Payment Date if the commencement of the payment of the Severance Benefits had not been so delayed pursuant to this Section and (B) commence paying the balance of the Severance Benefits in accordance with the
applicable payment schedules set forth in this Agreement. 
 Except to the extent that payments may be delayed until the Specified Employee
Initial Payment Date pursuant to the preceding paragraph, on the first regular payroll pay day following the effective date of the Release and Waiver, the Company will pay Executive the Severance Benefits Executive would otherwise have received
under the Agreement on or prior to such date but for the delay in payment related to the effectiveness of the Release and Waiver, with the balance of the Severance Benefits being paid as originally scheduled. All amounts payable under the Agreement
will be subject to standard payroll taxes and deductions. 

  
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 4.5 Definitions. 

4.5.1 Cause. For purposes of this Agreement, “Cause” means that, in the reasonable determination of the
Company, the Executive has: 
 (i) been indicted for or convicted of or pleaded guilty or no contest to any felony or crime involving
dishonesty that is likely to inflict or has inflicted demonstrable and material injury on the business of the Company; 
 (ii) participated
in any fraud against the Company; 
 (iii) willfully and materially breached a Company policy; 

(iv) intentionally damaged any property of the Company thereby causing demonstrable and material injury to the business of the Company; or

 (v) engaged in conduct that, in the reasonable determination of the Company, demonstrates gross unfitness to serve. 

Notwithstanding the foregoing, Cause shall not exist based on conduct described in clause (iii) above unless the conduct described in
such clause has not been cured within 15 days following the Executive’s receipt of written notice from the Company specifying the particulars of the conduct constituting Cause. 

4.5.2 Change in Control. For purposes of this Agreement, “Change in Control” means the
occurrence of any of the following: 
 (i) the closing of an Ownership Change Event or a series of related Ownership Change
Events (collectively, a “Transaction”) in which the stockholders of the Company immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as their ownership of
shares of the Company’s voting stock immediately before the Transaction, direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the Company or
such surviving entity immediately outstanding after the Transaction, or, in the case of an Ownership Change Event the entity to which the assets of the Company were transferred (the “Transferee”), as the case may be; or 

(ii) the liquidation or dissolution of the Company. 

For purposes of the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership
of the voting securities of one or more corporations or other business entities which own the Company or the Transferee, as the case may be, either directly or through one or more subsidiary corporations or other business entities. The Board shall
have the right to determine whether multiple sales or exchanges of the voting securities in the Company or multiple Ownership Change Events are related, and its determination shall be final, binding and conclusive. The Board may also, but need not,
specify that other transactions or events constitute a Change in Control. 

  
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 4.5.3 Good Reason. “Good Reason” for the Executive to terminate
the Executive’s employment hereunder shall mean the occurrence of any of the following events without the Executive’s consent: 
  

	 	(i)	a material reduction (20% or more) by the Company of the Executive’s Base Salary as initially set forth herein or as the same may be increased from time to time; 

 

	 	(ii)	a material reduction by the Company of the Executive’s management responsibilities; 

  

	 	(iii)	a material breach of this Agreement by the Company; 

 provided however, that any resignation by the Executive
due to any of the following conditions shall only be deemed for Good Reason if: (i) the Executive gives the Company written notice of the intent to terminate for Good Reason within 90 days following the first occurrence of the condition(s) that
the Executive believes constitutes Good Reason, which notice shall describe such condition(s); (ii) the Company fails to remedy, if remediable, such condition(s) within 15 days following receipt of the written notice (the “Cure
Period”) of such condition(s) from the Executive; and (iii) Executive actually resigns his employment within the first 15 days after expiration of the Cure Period. 

4.5.4 Ownership Change Event. For purposes of this Agreement, “Ownership Change Event” means the occurrence of
any of the following with respect to the Company: (i) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of more than 50% of the voting stock of the Company; (ii) a
merger or consolidation in which the Company is a party; or (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company. 

5. ASSIGNMENT AND BINDING EFFECT. 

This Agreement shall be binding upon and inure to the benefit of the Executive and the Executive’s heirs, executors, personal
representatives, assigns, administrators and legal representatives. Because of the unique and personal nature of the Executive’s duties under this Agreement, neither this Agreement nor any rights or obligations under this Agreement shall be
assignable by the Executive. This Agreement shall be binding upon and inure to the benefit of the Company and its successors, assigns and legal representatives. 

6. CHOICE OF LAW. 
 This
Agreement is made in California. This Agreement shall be construed and interpreted in accordance with the internal laws of the State of Delaware. 

7. INTEGRATION. 
 This
Agreement, including Exhibit A, contains the complete, final and exclusive agreement of the Parties relating to the terms and conditions of the Executive’s employment and 

  
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the termination of Executive’s employment, and supersedes all prior and contemporaneous oral and written employment agreements or arrangements between the Parties. To the extent this
Agreement conflicts with the terms of the Company’s employee handbook, governing polices, or bylaws, this Agreement controls. 
 8.
AMENDMENT. 
 This Agreement cannot be amended or modified except by a written agreement signed by the Executive and the Company. 

9. WAIVER. 
 No term,
covenant or condition of this Agreement or any breach thereof shall be deemed waived, except with the written consent of the Party against whom the wavier is claimed, and any waiver or any such term, covenant, condition or breach shall not be deemed
to be a waiver of any preceding or succeeding breach of the same or any other term, covenant, condition or breach. 
 10. SEVERABILITY.

 The finding by a court of competent jurisdiction of the unenforceability, invalidity or illegality of any provision of this Agreement
shall not render any other provision of this Agreement unenforceable, invalid or illegal. Such court shall have the authority to modify or replace the invalid or unenforceable term or provision with a valid and enforceable term or provision which
most accurately represents the Parties’ intention with respect to the invalid or unenforceable term or provision. 
 11.
INTERPRETATION; CONSTRUCTION. 
 The headings set forth in this Agreement are for convenience of reference only and shall not be used in
interpreting this Agreement. This Agreement has been drafted by legal counsel representing the Company, but the Executive has been encouraged to consult with, and has consulted with, the Executive’s own independent counsel and tax advisors with
respect to the terms of this Agreement. The Parties acknowledge that each Party and its counsel has reviewed and revised, or had an opportunity to review and revise, this Agreement, and the normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. 
 12.
REPRESENTATIONS AND WARRANTIES. 
 The Executive represents and warrants that the Executive is not restricted or prohibited,
contractually or otherwise, from entering into and performing each of the terms and covenants contained in this Agreement, and that the Executive’s execution and performance of this Agreement will not violate or breach any other agreements
between the Executive and any other person or entity. 
 13. COUNTERPARTS. 

This Agreement may be executed in two counterparts, each of which shall be deemed an original, all of which together shall contribute one and
the same instrument. 

  
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 14. ARBITRATION. 

To ensure the rapid and economical resolution of disputes that may arise in connection with the Executive’s employment with the Company,
the Executive and the Company agree that any and all disputes, claims, or causes of action, in law or equity, arising from or relating to the Executive’s employment, or the termination of that employment, will be resolved pursuant to the
Federal Arbitration Act and to the fullest extent permitted by law, by final, binding and confidential arbitration conducted by the Judicial Arbitration and Mediation Services (“JAMS”), or its successors, under the then
current rules of JAMS for employment disputes; provided that the arbitrator shall: (i) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and
(ii) issue a written arbitration decision including the arbitrator’s essential findings and conclusions and a statement of the award. Both the Executive and the Company shall be entitled to all rights and remedies that either the Executive
or the Company would be entitled to pursue in a court of law. The Company shall pay all fees, including the arbitrator’s fee. Nothing in this Agreement is intended to prevent either the Executive or the Company from obtaining injunctive relief
in court to prevent irreparable harm pending the conclusion of any such arbitration. 
 15. TRADE SECRETS OF OTHERS. 

It is the understanding of both the Company and the Executive that the Executive shall not divulge to the Company and/or its subsidiaries any
confidential information or trade secrets belonging to others, including the Executive’s former employers, nor shall the Company and/or its Affiliates seek to elicit from the Executive any such information. Consistent with the foregoing, the
Executive shall not provide to the Company and/or its Affiliates, and the Company and/or its Affiliates shall not request, any documents or copies of documents containing such information. 

16. ADVERTISING WAIVER. 

The Executive agrees to permit the Company and/or its Affiliates, and persons or other organizations authorized by the Company and/or its
Affiliates, to use, publish and distribute advertising or sales promotional literature concerning the products and/or services of the Company and/or its Affiliates, or the machinery and equipment used in the provision thereof, in which the
Executive’s name and/or pictures of the Executive taken in the course of the Executive’s provision of services to the Company and/or its Affiliates, appear. The Executive hereby waives and releases any claim or right the Executive may
otherwise have arising out of such use, publication or distribution during the term of this Agreement. 
 [Signature Page Follows.]

  
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 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written. 

 

	
	HERON THERAPEUTICS, INC.
	
	 /s/ Barry Quart

	Barry Quart
	Chief Executive Officer
	
	Dated: October 12, 2015
	
	EXECUTIVE:
	
	 /s/ Neil Clendeninn

	NEIL CLENDENINN
	
	Dated: October 12, 2015

  
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 EXHIBIT A 

RELEASE AND WAIVER OF CLAIMS 

TO BE SIGNED AT TIME OF TERMINATION WITHOUT CAUSE OR 

RESIGNATION FOR GOOD REASON 

In consideration of the payments and other benefits set forth in Section 4.4 of the Executive Employment Agreement dated [DATE], to which
this form is attached, I, NEIL CLENDENINN hereby furnish HERON THERAPEUTICS, INC. (the “Company”), with the following release and waiver (the “Release and Waiver”). 

In exchange for the consideration provided to me by the Employment Agreement that I am not otherwise entitled to receive, I hereby generally
and completely release the Company and its directors, officers, employees, stockholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, Affiliates, and assigns from any and all claims, liabilities
and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Release and Waiver. This general release includes, but is not limited to: (1) all
claims arising out of or in any way related to my employment with the Company or the termination of that employment; (2) all claims related to my compensation or benefits from the Company, including, but not limited to, salary, bonuses,
commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied
covenant of good faith and fair dealing; (4) all tort claims, including, but not limited to, claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory
claims, including, but not limited to, claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990,
the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), and the California Fair Employment and Housing Act (as amended). 

I also acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR” 
 I
hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to any claims I may have against the Company. 

I acknowledge that, among other rights, I am waiving and releasing any rights I may have under ADEA, that this Release and Waiver is knowing
and voluntary, and that the consideration given for this Release and Waiver is in addition to anything of value to which I was already entitled as an executive of the Company. If I am 40 years of age or older upon execution of this Release and
Waiver, I further acknowledge that I have been advised, as required by the Older Workers Benefit Protection Act, that: (a) the release and waiver granted herein does not relate to 

 
claims under the ADEA which may arise after this Release and Waiver is executed; (b) I should consult with an attorney prior to executing this Release and Waiver; (c) I have twenty-one
(21) days in which to consider this Release and Waiver (although I may choose voluntarily to execute this Release and Waiver earlier); (d) I have seven (7) days following the execution of this Release and Waiver to revoke my consent
to this Release and Waiver; and (e) this Release and Waiver shall not be effective until the eighth day after I execute this Release and Waiver and the revocation period has expired (the “Effective Date”). 

I understand that among other things, I must not use or disclose any confidential or proprietary information of the Company and I must
immediately return all Company property and documents (including all embodiments of proprietary information) and all copies thereof in my possession or control. 

This Release and Waiver constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with
regard to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated herein. This Release and Waiver may only be modified by a writing signed by both me and a duly authorized officer of
the Company. 
  

							
	Date:                     	 		 	By:	 	  

		 		 		 	NEIL CLENDENINN

  
 2Exhibit

EXHIBIT 10.2

THIRD AMENDMENT TO LEASE AGREEMENT

This Third Amendment to Lease Agreement (this "Amendment") is entered into as of October 8, 2015 (the "Effective Date") by and between FPG ASPEN LAKE OWNER, LP, a Delaware limited partnership  (as successor-in-interest to 13785 Research Blvd, LLC, a Texas limited liability company) (“Landlord”), and Q2 SOFTWARE INC., D/B/A Q2EBANKING, a Delaware corporation ("Tenant").  

RECITALS

WHEREAS, the predecessor-in-interest to Original Landlord and Tenant are parties to that certain Lease Agreement dated November 20, 2012 (as amended, the “Lease”) as amended by a First Amendment to Lease Agreement and Tri-Party Agreement dated as of February 27, 2015 (the “First Amendment”) and that certain Second Amendment and Tri-Party Agreement dated as of March 31, 2015, for that certain space consisting of (i) approximately 85,819 rentable square feet commonly known as Suite 400 (the “Original Aspen Lake Premises”) located on the first, third and fourth floors in the building known as ASPEN LAKE OFFICE BUILDING located on 13785 Research Boulevard in the City of Austin, State of Texas (the “Aspen Lake Building”) and (ii) approximately 19,187 rentable square feet (the “Original Tower Point Premises”) located on the first and second floors of the building known as TOWER POINT located on 13805 Research Boulevard in the City of Austin, State of Texas (the “Tower Point Building”). The Original Aspen Lake Premises and the Original Tower Point Premises are hereinafter collectively referred to collectively as the “Original Premises.”
WHEREAS, Tenant desires to surrender a portion of the third floor in the Original Aspen Lake Premises. 
NOW, THEREFORE, in consideration of the foregoing, and of the mutual covenants set forth herein and of other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:
AGREEMENTS

1.Defined Terms and References.  The recitals set forth above are herein incorporated by reference and agreed to by Landlord and Tenant. All capitalized terms used herein that are not defined herein but are defined in the Lease shall have the same meanings herein as in the Lease.

2.    Vacation and Surrender of Suite 350 in Aspen Lake Building.  

		
	a.
	On or before the Surrender Date (hereinafter defined), Tenant shall promptly and fully vacate, surrender, deliver and turnover to Original Landlord certain premises containing 18,741 rentable square feet, known as Suite 350 in the Aspen Lake Building (the “Surrender Premises”), which are more particularly shown on the drawings attached hereto as Exhibit “A” and made a part hereof for all purposes, in the condition required by and under the Lease.  The “Surrender Date” shall mean the date that is the earlier to occur of (i) the date which is ninety (90) days following the date that Tenant has received its Certificate of Occupancy (the “CO”) from the City of Austin for premises located in an adjacent building, otherwise known as Aspen Lake II, together with a copy thereof, or (ii) September 30, 2016.  Tenant agrees to give Landlord written notice that Tenant has received the CO within five (5) business days after receipt thereof.  Subject to the terms and provisions of paragraph 3 

    

below, on the Surrender Date, (i) the Lease shall terminate with respect to the Surrender Premises, except for any indemnifications or hold harmless agreements under the Lease which expressly survive such vacation, surrender, delivery and turnover or termination; accordingly, the term “Premises” as defined and used in and under the Lease shall exclude and not include the Surrender Premises, and (ii) all of the rights, privileges and benefits of Tenant under the Lease with respect to the Surrender Premises, including, without limitation, all rights of use, occupancy and possession of the Surrender Premises, shall terminate and be waived and relinquished by Tenant.  

		
	c.
	Subject to the terms and provisions of paragraph 3 below, effective on the Surrender Date, the Original Aspen Lake Premises located in the Aspen Lake Building shall contain 67,078 square feet of Rentable Area and Tenant’s Proportionate Share for the Aspen Lake Building shall be 32.7096%, which is the percentage obtained by dividing the number of rentable square feet in the Original Aspen Lake Premises (67,078) by the number of rentable square feet in the Aspen Lake Building (205,071).  Subject to the terms and provisions of paragraph 3 below, effective on the Surrender Date, Original Landlord and Tenant stipulate that those amounts of rentable square feet in the Original Aspen Lake Premises and the Aspen Lake Building are conclusive and binding upon them.

		
	d.
	Subject to the terms and provisions of paragraph 3 below, from and after the Surrender Date, the monthly installments of Base Rent for the Original Aspen Lake Premises shall be the following amounts for the following periods of time:

	
				
	Time Period
	Annual Base Rent Rate Per Rentable Square Foot
	Annual Base Rent
	Monthly Installments of Base Rent

	Surrender Date – April 30, 2016
	$19.50
	$1,308,021.00
	$109,001.75

	May 1, 2016 – April 30, 2017
	$20.00
	1,341.560.00
	$111,796.66

	May 1, 2017 – April 30, 2018
	$20.50
	$1,375,099.00
	$114,591.58

	May 1, 2018 – April 30, 2019
	$21.00
	$1,408,638.00
	$117,386.50

	May 1, 2019 – April 30, 2020
	$21.50
	$1,442,177.00
	$120,181.41

	May 1, 2020 – April 30, 2021
	$22.00
	$1,475,716.00
	$122,976.33

		
	E.
	Subject to the terms and provisions of paragraph 3 below, effective as of the Surrender Date, Tenant’s allocation of parking spaces shall be reduced by 84 Parking Permits at the Aspen Lake Building (6 of which shall be reserved parking spaces) so that Tenant shall only be entitled to use 302 parking spaces, of which 24 shall be reserved parking spaces  and 278 shall be unreserved parking spaces, for the remainder of the Term.

    

		
	F.
	Tenant shall surrender the Surrender Premises in the in the condition required by and under the Lease provided Landlord shall not require Tenant to remove any networking cable from the Surrender Premises.

3.    Tenant’s Failure to Surrender.  In the event that Tenant fails to fully vacate, surrender, deliver and turnover the Surrender Premises by the Surrender Date, then Landlord may institute a forcible entry and detainer suit or other applicable eviction proceedings to remove Tenant from the Surrender Premises.  Further, in the event that Tenant has not exercised reasonable efforts to obtain the CO and fails to fully vacate, surrender, deliver and turnover the Surrender Premises by September 30, 2016, Landlord shall be entitled to recover from Tenant all damages Landlord reasonably incurred by reason of Tenant’s failure to so vacate, in an amount not to exceed $1,000,000.00, in addition to instituting a forcible entry and detainer suit or other applicable eviction proceeding.

4.    Confidentiality.  Tenant acknowledges the terms and conditions of the Lease (as amended hereby) are to remain confidential for Landlord’s benefit, and may not be disclosed by Tenant to anyone, by any manner or means, directly or indirectly, without Landlord’s prior written consent; however, Tenant may disclose the terms and conditions of the Lease to its attorneys, accountants, employees and existing or prospective financial partners, or if required by court order, provided all parties to whom Tenant is permitted hereunder to disclose such terms and conditions are advised by Tenant of the confidential nature of such terms and conditions and agree to maintain the confidentiality thereof (in each case, prior to disclosure).  Tenant shall be liable for any disclosures made in violation of this Section by Tenant or by any entity or individual to whom the terms of and conditions of the Lease were disclosed or made available by Tenant.  The consent by Landlord to any disclosures shall not be deemed to be a waiver on the part of Landlord of any prohibition against any future disclosure.

5.    Waiver of Statutory Lien.  Tenant hereby waives its statutory lien under Section 91.004 of the Texas Property Code.

6.    Determination of Charges.  Landlord and Tenant agree that each provision of the Lease (as amended by this Amendment) for determining charges and amounts payable by Tenant (including provisions regarding Tenant’s Proportionate Share of Operating Expenses) is commercially reasonable and, as to each such charge or amount, constitutes a statement of the amount of the charge or a method by which the charge is to be computed for purposes of Section 93.012 of the Texas Property Code.

7.    Prohibited Persons and Transactions.  Tenant represents and warrants that to the best of its actual knowledge, neither it nor any of its affiliates, nor any of their respective partners, members, shareholders or other equity owners, and none of their respective employees, officers, directors, representatives or agents is a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Assets Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated Nationals and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action and will not assign or otherwise transfer the Lease to, contract with or otherwise engage in any dealings or transactions or be otherwise associated with such persons or entities.
 
8.    Ratification.  Tenant hereby ratifies and confirms its obligations under the Lease, and represents and warrants to Landlord that it has no current knowledge of any defenses thereto.  Additionally, Tenant further confirms and ratifies that, as of the date hereof,  the Lease is and remains in good standing 

    

and in full force and effect,  Tenant has no claims, counterclaims, set-offs or defenses against Landlord arising out of the Lease or in any way relating thereto or arising out of any other transaction between Landlord and Tenant, and  except as expressly provided for in this Amendment, all tenant finish-work allowances provided to Tenant under the Lease or otherwise, if any, have been paid in full by Landlord to Tenant, and Landlord has no further obligations with respect thereto.

9.    Broker.  Landlord and Tenant each warrant to the other that neither has dealt with any broker or agent in connection with the negotiation or execution of this Amendment. Tenant and Landlord shall each indemnify the other against all costs, expenses, attorneys' fees, and other liability for commissions or other compensation claimed by any other broker or agent claiming the same by, through, or under the indemnifying party.    

10.    No Claims.  As of the date hereof, Tenant has no pending claims, demands, counterclaims, defenses, allowances, adjustments or offsets arising out of or in any way related to the Lease or arising out of any document, writing or instrument executed in connection therewith or herewith.  Tenant is not aware of any default by Landlord under any of the terms or provisions of the Lease.

11.    Entire Agreement.  This Amendment supersedes and cancels any and all previous statements, negotiations, arrangements, brochures, agreements and understandings, if any, between Landlord and Tenant with respect to the subject matter of this Amendment.  The Lease and this Amendment constitute the entire agreement of the parties with respect to the subject matter of the Lease and this Amendment.  There are no representations, understandings, stipulations, agreements, warranties or promises (express or implied, oral or written) between Landlord and Tenant with respect to the subject matter of this Amendment or the Lease.  It is likewise agreed that the Lease and this Amendment may not be altered, amended, modified or extended except by an instrument in writing signed by both Landlord and Tenant.

12.    Authority.  The person executing this Amendment on behalf of Tenant represents unto Landlord that: (a) Tenant is a duly organized and validly existing Texas corporation in good standing under the laws of the State of Texas, (b) Tenant has the full right and authority to execute, deliver and perform this Amendment; (c) the person executing this Amendment on behalf of Tenant is authorized to do so; (d) upon request of Landlord, such person will deliver to Landlord satisfactory evidence of his or her authority to execute this Amendment on behalf of Tenant; and (e) this Amendment, when executed and delivered by Tenant and Landlord, will constitute the valid and binding agreement of both parties, enforceable against Landlord and Tenant in accordance with its terms.

13.    Status of Lease.  The Lease, as amended by this Amendment, is in full force and effect and is binding upon and enforceable by Landlord and Tenant in accordance with its terms.  In the event of a conflict between the terms and conditions of the Lease and the terms and conditions in this Amendment, the terms and conditions of this Amendment shall control.  

14.    Counterparts.  This Amendment may be executed in multiple counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one document.  To facilitate execution of this Amendment, the parties hereto may execute and exchange, by telephone facsimile or electronic mail PDF, counterparts of the signature pages.  Signature pages may be detached from the counterparts and attached to a single copy of this Amendment to physically form one document.

[Signatures on next page.]

    

EXECUTED effective as of the Effective Date.

LANDLORD:

FPG ASPEN LAKE OWNER, LP,
a Delaware limited partnership
                        
By:    FPG ASPEN LAKE GP, LLC,
      a Delaware limited liability company,
its General Partner

By: /s/ Jonathan Landau    
Name:  Jonathan Landau    
Title:  CEO    

TENANT:

Q2 SOFTWARE INC., D/B/A Q2EBANKING,
a Delaware corporation

By:    /s/ Barry G. Benton            
Name:      Barry G. Benton                
Title:    SVP, General Counsel

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