Document:

adro-ex1038_1111.htm

 

Exhibit 10.38

RETENTION BONUS AGREEMENT

This RETENTION BONUS AGREEMENT (“Agreement”) is entered into as of January 10, 2020, by and between Aduro Biotech, Inc. (the “Company”) and Stephen T. Isaacs (the “Employee”).

This Agreement is being entered into with reference to the following recitals:

A.The Company employs Employee, on an at-will basis, in the position of Chief Executive Officer and President;

 

B.Employee is eligible for severance benefits under his employment agreement with the Company, as amended (the “Employment Agreement”).  For purposes of this Agreement, the terms “Just Cause,” “Change in Control,” “Permanent Disability,” and “Good Reason” will be defined as set forth in the Employment Agreement.  

 

C.The Company has identified Employee’s continued employment with the Company as important to the ongoing success of the Company’s operations; 

 

D.To ensure the successful completion of certain duties and responsibilities by Employee, the Company desires to retain Employee through September 30, 2020 (the “Retention Date”); and 

 

E.The Company is entering into this Agreement to provide additional consideration to incentivize Employee to remain employed by the Company at least through the Retention Date. 

 

NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein, the Company and Employee agree as follows:

1.Retention Bonus.  Employee is eligible to earn a retention bonus in the gross amount of $562,500 (“Retention Bonus”) under the terms of this Agreement.  If Employee remains employed through the Retention Date, the Retention Bonus will be paid to Employee within 15 days after September 30, 2020.

2.Involuntary Termination.  If Employee is subject to (i) a termination by the Company without Just Cause or Employee resigns for Good Reason or (ii) a termination due to the Employee’s death or Permanent Disability, in each case, on or prior to the Retention Date, Employee will be entitled to, and the Company will pay, the Retention Bonus within 15 days after Employee’s termination of employment.

3.Tax Withholding.  Employee acknowledges that such Retention Bonus shall constitute wages, and that with respect to any payments or benefits under this Agreement the Company shall deduct all amounts it is required to deduct and withhold under any applicable federal, state or local tax laws (including, for the avoidance of doubt, any applicable income or employment taxes required to be deducted and withheld from such payments).  

4.At-Will Employment.  If the Company terminates Employee’s employment for Just Cause or if Employee resigns his/her employment without Good Reason prior to the Retention Date, Employee shall not have earned and shall not be entitled to the payment of any unpaid portion of the Retention Bonus.  

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5.General Release of Claims.  

5.1In exchange for the consideration provided for in this Agreement, the adequacy of which Employee hereby acknowledges, Employee irrevocably and unconditionally releases all claims described below that Employee may have against the following persons or entities (the “Releasees”): Aduro, all of Aduro’s related or affiliated organizations, including all of Aduro’s and its related or affiliated organizations’ predecessors and successors; and, with respect to each such entity, all of its past and present employees, officers, directors, partners, principals, representatives, assigns, attorneys, agents, insurers, employee benefit programs (and the trustees, administrators, fiduciaries and insurers of such programs) and any other persons acting by, through, under, or in concert with any of the persons or entities listed in this Subsection.

5.2The claims released include all claims, promises, offers, debts, causes of action or similar rights of any type or nature Employee has or had against Releasees, including but not limited to those which in any way relate to Employee’s employment with Aduro, except as prohibited by law.  This includes (but is not limited to) a release and waiver of any common law contract or tort claims, the Fair Labor Standards Act and any state or local wage and hour laws, or other claims that may have arisen under any federal or local anti-discrimination statutes or laws, such as Title VII of the Civil Rights Act of 1964; § 1981 of the Civil Rights Act of 1866 and Executive Order 11246; the Fair Labor Standards Act; the Employee Retirement and Income Security Act; the Americans with Disabilities Act, 42 U.S.C. § 1981; the Workers Adjustment and Retraining Notification Act, as amended; the Family and Medical Leave Act; the California Labor Code; the California Civil Code; the California Constitution; and any and all other laws and regulations relating to employment termination, employment discrimination, whistleblowing, harassment or retaliation, claims for wages, hours, benefits, compensation, equity incentive pay, and any and all claims for attorneys’ fees and costs, inasmuch as is permissible by law and by the respective governmental enforcement agencies for the above-listed laws, except, however, Employee does not release any claims under the state anti-discrimination law, the California Fair Employment and Housing Act, California Government Code section 12900, et seq. 

5.3Notwithstanding the foregoing, this Agreement does not waive rights or claims (i) under federal or state law that Employee cannot, as a matter of law, waive by private agreement, including without limitation any right of indemnification under Labor Code Section 2802, (ii) that may arise after the Employee executes this Agreement; (iii) to indemnification under any agreement between Employee and the Company or under the Company’s certificate of incorporation, bylaws or other organizational documents, each as amended; (iv) under the Company’s director and officer liability insurance; (v) to vested or unvested compensation or other pay (in, each case, in whatever form) or vested or unvested benefits (in whatever form), including, without limitation, severance benefits or vested or unvested rights or claims under employment agreements or employee or director benefit arrangements; or (vi) by Employee in his capacity as a stockholder of the Company.  Additionally, nothing in this Agreement precludes Employee from filing a charge or complaint with or participating in any investigation or proceeding before the Equal Employment Opportunity Commission or National Labor Relations Board.  However, while Employee may file a charge and participate in any proceeding conducted by the Equal Employment Opportunity Commission or National Labor Relations Board, by signing this Agreement, Employee waives his/her right to bring a lawsuit against the Released Parties (or any of them) and waives his/her right to any individual monetary recovery in any action or lawsuit initiated by the Equal Employment Opportunity Commission or National Labor Relations Board.  Furthermore, this Agreement is not a release of claims under the California Fair Employment and Housing Act, California Government Code section 12900, et seq., and nothing in this Agreement precludes Employee from filing a charge or complaint with or participating in any investigation or 

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proceeding before the California Department of Fair Employment and Housing.  Furthermore, nothing in this Agreement prohibits Employee from reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation.  Employee does not need the prior authorization of Aduro to make any such reports or disclosures and Employee is not required to notify Aduro that Employee has made such reports or disclosures. Further, nothing in this Agreement prohibits Employee or any person from testifying about alleged criminal conduct or sexual harassment when the party has been compelled or requested to do so by lawful process.

6.Covenant Not to Sue. Employee has not, and will not, directly or indirectly institute any legal action against the Released Parties based upon, arising out of, or relating to any claims released in this Agreement, to the extent allowed by law.  Employee has not, and will not, directly or indirectly encourage and/or solicit any third party to institute any legal action against the Released Parties, to the extent allowed by law.

7.No Workplace Injuries.  Employee has not sustained any workplace injury of any kind during Employee’s employment with Aduro, and Employee does not intend to file any claim for or seek any workers’ compensation benefits.

8.Severance Benefits.  Employee shall continue to be eligible for severance benefits as set forth in the Employment Agreement regardless of whether Employee executes this Agreement.  However, if Employee does execute this Agreement, Employee shall, in addition to any severance benefits under the Employment Agreement, have the right to exercise any vested stock options held by Employee at the time of his termination of employment (including any options that are accelerated upon such termination) until the earlier of (i) 18 months following the Employee’s termination of employment (or longer period set forth in the terms of such option grant), (ii) the applicable expiration date of the option or (iii) the date of a Change in Control in which a stock option is canceled and not otherwise assumed or continued or replaced.

9.No Consideration Unless Employee Complies With This Agreement.  Employee acknowledges that he/she will not receive the Retention Bonus and other benefits set forth herein, unless Employee executes this Agreement and fulfills the promises contained herein.  Aduro has no independent legal duty to provide Employee with the consideration set forth in this Agreement, absent the terms of the Agreement itself.

10.Confidentiality.  In recognition of Employee’s privacy interests and because this is an arrangement that has been made available to Employee personally, the parties have a mutual interest in keeping this Agreement confidential to the extent permitted by law.  Nothing in this Agreement is intended to limit Employees rights under California Labor Code Sections 232 or 1197.5 regarding disclosure of wages.  Further, this provision will not apply to disclosures required by law or to disclosures to the Employee’s spouse, accountant, or attorney, provided such persons are advised of the confidential nature of the Agreement.  

11.Acknowledgement.  Employee has read this Agreement, has the authority to sign it, fully understands the contents of this Agreement, freely, voluntarily and without coercion enters into this Agreement.  

12.Entire Understanding.  This Agreement embodies the entire understanding of the parties and supersedes all prior or contemporaneous oral or written agreements between the parties with respect 

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to the subject matter hereof, and constitutes a single integrated agreement.  There are no promises, terms, conditions, or obligations, oral or written, express or implied, other than those contained herein, with respect to such subject matter.  For the avoidance of doubt, the Employment Agreement remains in full force and effect and this Agreement is intended to provide benefits in addition to those provided under the Employment Agreement.  

13.Modification.  This Agreement may not be amended or modified except in a writing signed by the Company and Employee, and no provision may be waived except in a writing signed by the party waiving compliance.  

14.Severability.  In the event any provision of this Agreement is held to be void, null or unenforceable, the remaining portions shall remain in full force and effect.

15.No Admission of Wrongdoing.  Neither this Agreement nor the furnishing of the consideration for this Agreement shall be deemed or construed as an admission of liability or wrongdoing on the part of any person, nor shall they be admissible as evidence in any proceeding other than for the enforcement of this Agreement.

16.No Reliance.  Employee has not relied on any representations, promises, or agreements of any kind made to Employee in connection with Employee’s decision to accept this Agreement, except for those set forth in this Agreement.

17.Governing Law.  This Agreement shall be governed and conformed in accordance with the laws of the State of Delaware, without regard to its conflicts of law principles.  

18.No Assignment.  No party shall have the right to assign any right or obligation hereunder without obtaining the prior written consent of each the other parties hereto.

19.Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.  This Agreement may be executed in facsimile copy or electronic copy actually received by the recipient’s e-mail system with the same binding effect as the original.

To accept this offer and state your intention to be bound by the terms of this Agreement, Employee must sign and return this letter to Violet Torneros by January 16, 2020.  If Employee does not return this letter, signed, on or before that date, this offer will lapse and may no longer be accepted by Employee.

 

	
Executed on January 13, 2020
	
/s/ Stephen T. Isaacs
	
 

	
 
	
Stephen T. Isaacs

	
 
	
 

	
 
	
 

	
Executed on January13, 2020
	
/s/ Blaine Templeman
	
 

	
 
	
Blaine Templeman, Chief Administrative Officer, Chief

	
 
	
Chief Legal Officer for ADURO BIOTECH, INC.

	
 
	
 

 

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Retention BonusExhibit 4.3 

     

    

    
      DESCRIPTION OF SECURITIES

      As of December 31, 2019, Covenant Transportation Group, Inc. (the “Company,” “we,” “us” or “our”) had one class of securities registered under Section 12 of
        the Securities Exchange Act of 1934, as amended (the “Exchange Act”), our Class A common stock, par value $0.01, which are the only securities of the Company registered pursuant to Section 12 of the Exchange Act.

      The summary of the general terms and provisions of the Class A common stock set forth below does not purport to be complete and is subject to and qualified
        by reference to the Company’s Second Amended and Restated Articles of Incorporation (the “Articles of Incorporation”) and Third Amended and Restated Bylaws (the “Bylaws”), each of which is filed as an exhibit to the Annual Report on Form 10-K. For
        additional information, please read the Articles of Incorporation and Bylaws and the applicable provisions of Chapters 78 and 92A of the Nevada Revised Statutes (the “Nevada Statutes”).

      Authorized Capital Stock

      Under our Articles of Incorporation, our authorized capital stock consists of 40,000,000 shares of Class A common stock, par value $0.01 per share, 5,000,000
        shares of Class B common stock, par value $0.01 per share, and 5,000,000 shares of preferred stock, par value $0.01 per share, the rights and preferences of which may be designated by the Board of Directors.

      Class A and Class B Common Stock

      Our Class A common stock is listed on the NASDAQ Global Select Market, under the symbol “CVTI.” Our Chairman of the Board and Chief Executive Officer, David
        Parker, and his wife, Jacqueline Parker, beneficially own 100% of our Class B common stock.

      Voting. Holders of Class A common stock are entitled to one vote per share. Holders of Class B common stock are
        entitled to two votes per share. All actions submitted to a vote of stockholders are voted on by holders of Class A and Class B common stock voting together as a single class, except as otherwise required by law. Holders of our common stock are not
        entitled to cumulative voting in the election of directors. Because shares of Class B common stock are entitled to two votes per share, the holders of shares of Class B common stock are able to exert a greater degree of control over us (including,
        without limitation, with respect to the election of directors) than they otherwise would if such holders held an equivalent number of shares of Class A common stock. As a result, the double voting nature of our Class B common stock may have an
        effect of delaying, deferring, or preventing a change in control or other extraordinary corporate transaction involving us, including a merger, reorganization, tender offer, sale or transfer of substantially all of our assets, or a liquidation.

      Conversion. Class A common stock has no conversion rights. A holder of Class B common stock may convert its Class B
        common stock into Class A common stock at any time at the ratio of one share of Class A common stock for each share of Class B common stock. Class B common stock immediately and automatically converts into an equal number of shares of Class A
        common stock if any person other than David Parker, Jacqueline Parker, or certain members of their family (or trusts for the benefit of any of them or entities wholly owned by any of them), obtains beneficial ownership of such shares.

      
        
          

      

      Dividends. Holders of Class A common stock and Class B common stock are entitled to receive dividends payable in
        cash or property other than common stock on an equal basis, if and when such dividends are declared by the Board of Directors from funds legally available, subject to any preference in favor of outstanding preferred shares, if any. In the case of
        any dividend payable in common stock, the holders of Class B common stock may receive Class A or Class B common stock shares, as determined by the Board of Directors when declaring such dividend.

      Liquidation. In the event of liquidation, dissolution, or winding up, holders of Class A and Class B common stock
        share with each other on a ratable basis as a single class in our assets, if any, available for distribution after payment of all creditors and the liquidation preferences on any outstanding shares on preferred stock, if any such stock is issued.

      Other Terms. In any merger, consolidation, reorganization, or other business combination, the consideration to be
        received per share by holders of Class A and Class B common stock must be identical, except that if, after such business combination David Parker, Jacqueline Parker, or certain members of their family (or trusts for the benefit of any of them or
        entities wholly owned by any of them) jointly own, more than one third of the surviving entity, any securities received by them may differ to the extent that voting rights differ between Class A and Class B common stock. Holders of Class A and
        Class B common stock are not entitled to preemptive rights and neither the Class A nor the Class B common stock is subject to redemption.

      The rights, preferences, and privileges of holders of both classes of common stock are subject to, and may be adversely affected by, the rights of the
        holders of shares of any series of preferred shares, which we may designate and issue in the future.

      Preferred Stock

      The Board of Directors is authorized to issue shares of our preferred stock at any time, without stockholder approval. It has the authority to determine all
        aspects of those shares, including the following:

      
        	
                •

              	
                the designation and number of shares;

              

      

      
        	
                •

              	
                the dividend rate and preferences, if any, which dividends on that series of preferred stock will have compared to any other class or series of our capital stock;

              

      

      
        	
                •

              	
                the voting rights, if any;

              

      

      
        	
                •

              	
                the conversion or exchange privileges, if any, applicable to that series;

              

      

      
        	
                •

              	
                the redemption price or prices and the other terms of redemption, if any, applicable to that series; and

              

      

      
        	
                •

              	
                any purchase, retirement, or sinking fund provisions applicable to that series.

              

      

      
        
          

      

      Any of these terms could have an adverse effect on the availability of earnings for distribution to the holders of Class A and Class B common stock or for
        other corporate purposes. We have no agreements or understandings for the issuance of any shares of preferred stock.

      Provisions of our Articles of Incorporation and Bylaws with Anti-Takeover Implications

      Certain provisions of the Articles of Incorporation and Bylaws deal with matters of corporate governance and the rights of stockholders. Under the Articles of Incorporation,
        the Board of Directors may issue preferred shares and set the voting rights, preferences and other terms thereof, and the Class B common stock possesses disproportionate voting rights. The Bylaws provide that a special meeting of stockholders may
        be called only by the Chairman of the Board, the President, or a majority of the directors. Such provisions, together with certain provisions of the Nevada Statutes(see “Nevada Anti-Takeover Statutes”), could be deemed to have an anti-takeover
        effect and discourage takeover attempts not first approved by the Board of Directors (including takeovers which certain stockholders may deem to be in their best interest). Any such discouraging effect upon takeover attempts could potentially
        depress the market price of our securities or inhibit temporary fluctuations in the market price of our securities that could result from actual or rumored takeover attempts.

      Nevada Anti-Takeover Statutes

      Business Combinations Act

      We are subject to Nevada’s anti-takeover law because we have not opted out of the provisions of Sections 78.411–78.444 of the Nevada Statutes under the terms
        of our Articles of Incorporation. This law provides that specified persons who, together with affiliates and associates, own, or within two years did own, 10% or more of the outstanding voting stock of a corporation cannot engage in specified
        business combinations with the corporation for a period of two years after the date on which the person became an interested stockholder. The law defines the term “business combination” to encompass a wide variety of transactions with or caused by
        an interested stockholder; including mergers, asset sales and other transactions in which the interested stockholder receives or could receive a benefit on other than a pro rata basis with other stockholders. This provision may have an
        anti-takeover effect for transactions not approved in advance by our Board of Directors, including discouraging takeover attempts that might result in a premium over the market price for the shares of our Class A common stock.

      Control Shares Act

      Nevada Statutes Sections 78.378–78.3793 provide that, in certain circumstances, a person who acquires a controlling interest in a corporation, defined in
        Nevada Statutes Section 78.3785 as ownership of voting securities to exercise voting power in the election of directors in excess of 1/5, 1/3, or a majority thereof, has no voting rights in the shares acquired that caused the stockholder to exceed
        any such threshold, unless the corporation’s other stockholders, by majority vote, grant voting rights to such shares. We may opt out of these statutes by amending our Articles of Incorporation or Bylaws either before or within ten days after the
        relevant acquisition of shares. Presently, we have not opted out of these statutes under our Bylaws. Our Bylaws provide that they may be repealed, altered or amended, or new bylaws may be adopted, by the affirmative vote of a majority of all of our
        directors, or by the affirmative vote of not less than a majority of the combined voting power of our outstanding capital stock.

      
        
          

      

      No Cumulative Voting

      The Nevada Statutes entitle companies’ articles of incorporation to provide stockholders the right to cumulate votes in the election of directors. Our
        Articles of Incorporation expressly do not allow for cumulative voting for holders of either Class A common stock or Class B common stock.

      Authorized but Unissued Capital Stock

      The Nevada Statutes do not require stockholder approval for any issuance of authorized shares. However, the listing requirements of the NASDAQ Global Select
        Market, which would apply so long as our Class A common stock is listed on the NASDAQ Global Select Market, require stockholder approval of certain issuances. Authorized but unissued shares may be used for a variety of corporate purposes, including
        future public offerings, to raise additional capital or to facilitate acquisitions.

      One of the effects of the existence of unissued and unreserved Class A common stock may be to enable our Board of Directors to issue shares to persons
        friendly to current management, which issuance could render more difficult, or discourage an attempt to obtain control of our company by means of a merger, tender offer, proxy contest, or otherwise, and thereby protect the continuity of our
        management and possibly deprive the stockholders of opportunities to sell their shares of Class A common stock at prices higher than prevailing market prices.

       

      

      Back to Form 10-K

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