Document:

Offer Letter

 Exhibit 10.9 

 
 

 
 OncoMed Pharmaceuticals, Inc. 

265 N. Whisman Road 
 Mountain View, CA 94043 
 November 12, 2005 

Mr. Paul Hastings 
 [Address] 

Dear Paul, 
 It gives me great
pleasure to offer you the position of President and Chief Executive Officer of OncoMed Pharmaceuticals, Inc. (“OncoMed” or “the Company”). It is our intention that you will be nominated for election to the Board promptly
following your commencement of full-time employment with the Company. We have enjoyed our interactions with you and believe that you will add substantially to the team and provide the Company with exactly the type of leadership that the Company
needs at this time. We also believe OncoMed represents an extraordinary opportunity for you as well. 
 The terms of our offer
to you are as follows: 
  

			
	Title:	 	President and Chief Executive Officer and Member of the Board of Directors
		
	Reporting to:	 	Board of Directors
		
	Base Salary:	 	Your Base Salary will be $29,167 per month (a $350,000 annualized rate), payable in accordance with customary Company payroll procedures then in effect for others employed by the
Company, subject to review on an annual basis. There will be no additional compensation for your service as a member of the Board of Directors.
		
	Annual Bonus:	 	Up to 25% of the Base Salary. This Bonus will be based upon achievement of (1) corporate goals and (2) CEO-specific goals to be agreed to by the Board of Directors. These goals will
include but are not limited to successful execution of the corporate strategy including

  
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		 	general management, team building, IP prosecution, pre-clinical and clinical development progress, etc. Based on achievement of objectives mutually-agreed upon by you and the Board
payable in the first quarter of the following year and conditioned upon your employment as of year end. Any additional bonus payments for special events and off-the-chart performance will be at the discretion of the Board.
		
	Tax Preparation:	 	The Company will reimburse you for the cost of preparation of taxes, filing and amendments, not to exceed $15,000/yr for a period of four years from the anniversary of your joining
the Company. You will be responsible for any income taxes imposed as a result of your receipt of this reimbursement, and these amounts will be subject to applicable withholding.
		
	Equity:	 	Common Stock. When you begin full-time employment with the Company, you will be offered the opportunity to purchase or, at your election, be granted a nonstatutory stock
option, under the Company’s Stock Incentive Plan (a copy of which has been provided to you), to purchase 900,000 shares of the Company’s Class A Common Stock (representing approximately 5.66% of the outstanding share base of the Company as
of the grant date) at a price equal to the fair market value, as determined by the Board, on the date of grant (currently expected to be $0.10 per share). Unvested shares will be subject to the Company’s right to repurchase at cost. 20% of
these shares, or 180,000 of these shares, will vest at the end of your 1st year of full-time employment and the remaining 80% will vest monthly over the following four years. Shares will be subject to the Company’s right of first refusal, and you will be required to enter
into the Right of First Refusal and Co-Sale Agreement and the Voting Agreement with the holders of the Company’s Preferred Stock and other holders of Class A Common

  
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		 	Stock.
		
		 	All employees are subject to annual performance review. Subject to Compensation Committee and Board of Directors review and approval, after at least two years of employment, you may
be eligible to receive additional opportunities, or stock options, to purchase shares of Common Stock, based upon Company goals and CEO-specific goals to be agreed to by the Board.
		
		 	Series A Preferred Stock. Subject to the agreement of the holders of the Company’s Series A Preferred Stock, you will also be offered the opportunity to purchase up to
100,000 shares of the Company’s Series A Preferred Stock for cash at a purchase price of $1.00 per share, pursuant to and in accordance with the terms of the Series A Preferred Stock Purchase Agreement dated as of July 29, 2005, as amended, and
the ancillary agreements. Upon commencement of your full-time employment, we will begin to obtain the necessary consents to effect this purchase and sale.
		
	Change in Control:	 	In the event of a “Change In Control” (as defined in the OncoMed Pharmaceuticals, Inc. Stock Incentive Plan), the vesting of an additional 12 months of any then-unvested
shares or stock options will be accelerated. The balance will continue to vest at the same monthly rate as they would have vested if no such acceleration had occurred. In addition, in the event that you are terminated without “Cause” or
terminate your own employment for “Good Reason” (as defined below) within eighteen months after a “Change in Control,” 100% of any shares or stock options which are not vested at the time of your termination will accelerate and
become vested. In this context “Cause” shall mean (i) your gross negligence, willful misconduct, or repeated, willful and flagrant insubordination in the performance of your duties to the Company as directed by the Board which remains
uncured more than thirty

  
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		 	days following written notice from the Board of its belief that there is Cause for your termination under this clause (i); (ii) repeated unexplained or unjustified absence from the
Company; (iii) a material and willful commission of any federal or state felony; (iv) commission of any act of fraud with respect to the Company; or (v) conviction of a felony or a crime involving moral turpitude causing material harm to the
standing and reputation of the Company, or any willful violation of a Federal or State law that significantly reduces the credibility of the company, or affects the company in a materially financial way. No act or failure to act by you shall be
deemed “willful” if done or omitted to be done by you in good faith and with the reasonable belief that your act or omission was in the best interest of the Company or consistent with the Company’s policies or the directive of the
Board. For purposes of this letter agreement, “Good Reason” shall mean your termination of your employment following a Change in Control by reason of the material diminution of your duties and responsibilities (such as the loss of
oversight responsibility for research & development, marketing or sales components of the Company’s operations such that your overall responsibilities are reduced), the reduction of your overall compensation other than as a part of a
general reduction for all executive officers, or the transfer of your principal place of business for the Company more than 50 miles from the Company’s current Mountain View, California location. The receipt by you of the benefits provided to
you under this paragraph will be conditioned on your executing a standard form of release of the Company and associated persons from any claims against the Company and such associated persons.
		
	Termination Without Cause:	 	In the event of termination without Cause (whether before or after a Change in Control), your Base Salary and benefits will continue for (i) six months if you have not completed a
full year of full-time service at the time of

  
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		 	termination or (ii) twelve months if you have completed a full year of full-time service at the time of termination. Payments will be made during the continuation period according
to the Company’s normal payroll policy. Further, you will be entitled to receive a lump sum payment of an amount of your target bonus for the year in which your employment is terminated, pro rated based upon the completion, as determined by the
Board, of agreed upon milestones prior to your termination. Receipt of the salary and benefits provided to you under this paragraph will be conditioned on your executing a standard form of release of the Company and associated persons from any
claims against the Company and such associated persons , and subject to mitigation obligations and offset by you in the event you obtain other employment at a company engaged in the study of or creation of diagnostic or therapeutic, agents aimed at
cancer stem cells, during the severance period...
		
	Vacation:	 	In accordance with Company policy.
		
	Benefit Plans:	 	You shall be entitled to the Company’s basic employment benefits available to all Company employees, as the same currently exists or may exist in the future. You acknowledge
that participation in Company benefit programs may require payroll deductions and/or direct contributions by you.
		
	Loan	 	Upon commencement of your full-time employment with the Company and to assist you in the purchase of your stock, the Company will loan to you $90,000 (or such greater amount as is
necessary to pay the full exercise price for 900,000 shares of Common Stock of the Company) at an interest rate equal to the “Applicable Federal Rate” as determined under the Internal Revenue Code. The loan will be full recourse, evidenced
by a promissory note and secured by your shares of Class A Common Stock. In the event that employment is terminated, and the company can exercise the right to repurchase unvested

  
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		 	shares, the loan note will be forgiven. The note will be payable upon the earlier of (i) immediately prior to a public offering of the Company’s stock, (ii) an event of default
(including bankruptcy) or (iii) five years from the issue date. Notwithstanding the foregoing, 25% of the principal amount of the loan will be forgiven upon each annual anniversary of your continuous full-time service (or part-time service if at the
request of the Board) with the Company or its affiliated entities. You will be responsible for any tax which results from “forgiveness of indebtedness” income. Under current tax rules, the Company and you will not be able to modify this
loan at any time without causing you to be potentially subject to significant additional tax.
		
	At Will:	 	The Company’s employees serve on an at-will basis. Your employment is voluntary and for no set period. If you accept employment with the Company, you will be free to resign at
any time. Likewise, the Company will be free to terminate your employment at any time, with or without good cause or for any or no cause.
		
	Employment Terms:	 	This offer of employment is contingent upon your signing and returning to the Company on or before your employment start date, the Company’s standard form of
“Confidential Information and Invention Assignment Agreement.” That agreement provides, among other things, that you will not solicit employees of the Company for a period of one year following termination of your employment by the
Company for any reason. In addition, you will not accept any additional outside business responsibilities (such as serving on the Board of Directors of other companies) without the prior approval of the Board of Directors of
OncoMed.
		
	Expenses:	 	The Company will reimburse reasonable business-related expenses incurred by you in accordance with applicable Company policies.
		
	Start Date:	 	As soon as practicable, at your election, but in

  
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		 	no event later than January 1, 2006, at which time you will be elected President and Chief Executive Officer of the Company. Prior to January 1, 2006, you will act, at
your election, as a consultant to the Company, under a customary form of consulting agreement, one day per week commencing with the week of November 20, 2005 and two days per week commencing December 5, 2005. Please be advised that your
employment is contingent on your ability to prove your authorization to work in the United States. You must comply with the Immigration and Naturalization Service’s employment verification requirements.

 Please note that this offer letter sets forth the entire agreement and understanding between you and the
Company regarding your employment relationship and supersedes any other written or oral representation, promise or discussion. 

To indicate your acceptance of this offer, please sign and return one copy of this letter to me. Paul, we are very much looking forward
to having you as President and Chief Executive Officer of the Company. 
 Yours very truly, 

/s/ James N. Woody 
 James N. Woody, M.D., Ph.D.

 President and Chief Executive Officer 

OncoMed Pharmaceuticals, Inc. 
 For the Board of
Directors of the Company 
 By accepting this offer you agree this is a full-time position, and you will make every effort necessary to perform
adequately the duties that are assigned to you. 
 Agreed to and accepted: 

 

							
	 /s/ Paul J. Hastings
	 		 	 11/17/05
	 	
	Paul Hastings	 		 	Date	 	

  
 7Offer Letter

 Exhibit 10.10 
 Lewicki Offer Ltr 5-27-04 
 Cancer Stem Cell Genomics, Inc. 

May 27, 2004 
 John A. Lewicki 

[Address] 
 Dear John, 

As we discussed, I am delighted to make you this offer to join Cancer Stem Cell Genomics, Inc. (the “Company”), as Senior Vice President of
Research and Development, reporting to the Chief Executive Officer (CEO). The terms and conditions of our offer are as follows: 
  

	•	 	 Start Date. Your employment with the Company will commence on 15 July, 2004 

 

	•	 	 Salary. Your annual salary will be $210,000, less applicable withholding. This salary will be paid in accordance with our payroll procedures.
Your salary shall be subject to review and adjustment, based on your performance, by the CEO and the Company’s Board of Directors (the “Board”) an at least an annual basis. 

 

	•	 	 Bonus. Initially there will be no bonus opportunity, but if a management bonus program is initiated in the future you will be eligible to
participate. 

  

	•	 	 Stock Option. Subject to the approval of the Board, you will be granted an option to purchase 350,000 shares of common stock of Company (the
“Option”). At your request, the Option shall be an incentive stock option to the maximum extent permitted under the applicable federal income tax rules and shall have an exercise price equal to the fair market value of Company’s stock
as of the date the Option is granted. Subject to your remaining continuously employed by Company as of each such date the Option shall vest and become exercisable with respect to 20% of the shares subject to the Option on the first anniversary of
your commencement of employment, and shall become vested in equal monthly installments thereafter, such that the Option is vested and exercisable with respect to 100% of the shares subject to the Option on the fifth anniversary of the Option’s
date of grant. The specific terms of the Option grant will be set forth in a written Stock Option Agreement between you and the Company which will be executed after your employment commences with Company. You will also be eligible for future stock
option grants based on your performance and as part of general company practices. 

  

	•	 	 Change of Control If your employment is terminated without Cause or Constructively Terminated (as defined below) in connection with, or within
twelve (12) months after, a Change of Control of the Company, regular vesting of your Option or shares shall cease upon your termination and you will be eligible to receive accelerated vesting of fifty percent (50%) of your then unvested
Options. 

  
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	•	 	 For the purpose of this letter, “Cause” means: (i) an act of dishonesty made by you in connection with your responsibilities as an
employee that causes serious reputational harm to the Company; (ii) your conviction of, or plea of nolo contendere to, a felony; (iii) your gross negligence or willful misconduct in the performance of your duties; (iv) your inability
to perform the essential functions of your job with or without a reasonable accommodation; or (v) your failure or refusal to carry out any lawful direction of the Board or your habitual neglect of your duties as an officer of the Company, which
failure, refusal or neglect, as applicable, if capable of cure, shall continue after receipt of written notice from the Board (provided, however, that you shall have fifteen (15) days after receipt of written notice to cure any such failure,
refusal or neglect), in each case as determined in good faith by the Board. 

 For the purpose of this letter,
“Change of Control” means: (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes the “beneficial owner’’ (as defined in Rule 13d-3
under said Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding voting securities or (ii) the date of the consummation of a merger or
consolidation of the Company with any other corporation that has been approved by the stockholders of the Company, other than (a) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the total voting power represented by the voting securities of the Company or such surviving
entity outstanding immediately after such merger or consolidation, (b) the stockholders of the Company approve a plan of complete liquidation of the Company, or (c) any transaction in which the directors comprising the Board of the Company
immediately prior to the transaction represent a majority of the Board of the Company, or other surviving entity, immediately after the transaction. Notwithstanding the foregoing, a transaction shall not constitute a Change of Control if:
(i) its sole purpose is to change the state of the Company’s incorporation; (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s
securities immediately before such transaction; (iii) it constitutes the Initial Public Offering, or (iv) it is a transaction effected primarily for the purpose of financing the Company with cash (as determined by the Board acting in good
faith and without regard to whether such transaction is effectuated by a merger, equity financing or otherwise). 
 For the
purpose of this letter, “Constructive Termination” means (i) a material reduction in your responsibilities, duties or base pay without your agreement or (ii) relocation of your workplace more than 35 miles from your prior
workplace without your agreement. 
  

	•	 	 At Will Employment. If you accept this offer, your employment with the Company will be at will. 

 

	•	 	 Company Rules. As an employee of the Company, you will be expected to abide by company rules and regulations. As a condition of employment, you
will be required to sign and comply with a confidential information and invention assignment agreement 

  
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which, among other things, prohibits unauthorized use or disclosure of Company’s proprietary information. 

 

	•	 	 No Bar to Employment. You agree that you are not party to any contract or agreement that would preclude you from accepting this offer or
performing services as an employee for Company. As required by law, this offer is subject to satisfactory proof of your right to work in the United States. 

 

	•	 	 Final Agreement. The employment terms in this letter supersede any other agreements or promises made to you by anyone, whether oral or written,
and comprise the final, complete and exclusive agreement between you and the Company. 

 We are very enthusiastic that you
have agreed to join our team and we look forward to working with you to make CSCG a success. Please sign and return one copy of this letter to confirm your understanding and agreement with the above terms. 

Sincerely, 
  

	
	 /s/ James N. Woody

	 James N. Woody MD, PhD,
 Chief
Executive Officer (Upon Closing)
 Cancer Stem Cell Genomics, Inc.

  

							
	Agreed and accepted:	 		 		 	
				
	 /s/ John A. Lewicki
	 		 	 8-27-04
	 	
	John A. Lewicki	 		 	Date	 	

  
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