Document:

EX-10.21

  TM

  EXHIBIT 10.21

   

  March 25, 2022

   

  PERSONAL AND CONFIDENTIAL

   

   

  Uri A. Lopatin, M.D.

   

  Re:	Transition and Separation Agreement and General Release of Claims

   

  Dear Uri:

  Effective March 1, 2022 (the “Transition Date”) you no longer serve as the Chief Executive Officer and President of the Company.  This letter (this “Agreement”) provides notices that on July 31, 2022 (the “Separation Date”), your employment with Pardes Biosciences, Inc. (the “Company”) shall terminate without Cause (as defined in Section 1(d) of the Executive Severance Plan).  During the period between the Transition Date and the Separation Date (the “Transition Period”), you will continue as an employee of the Company serving in the role of Chief Scientific and Strategic Advisor and your compensation and severance benefits remain unchanged through the Separation Date. The Company thanks you for your contributions, assistance and continued commitment to the Company during this transition period.  Capitalized terms used in this Agreement and not otherwise defined shall have the meaning assigned to such term in the Executive Severance Plan, a copy of which is attached hereto as Exhibit A (the “Executive Severance Plan”).This Agreement, together with the supplemental release attached hereto Exhibit B (the “Supplemental Release”), sets forth the terms of the general release of claims between you and the Company as contemplated under the Executive Severance Plan.  You acknowledge that this Agreement and the Supplemental Release becoming effective are conditions of your right to receive the separation benefits set forth in Section 2(b) of this Agreement. You agree that such separation benefits are due solely from the Company.

  On the Separation Date, you shall confirm to the Company (i) that you have received payment of your accrued salary through the Separate Date, and (ii) that you have submitted for reimbursement all outstanding, approved and reasonable business expenses that you incurred on the Company’s behalf through the Separation Date. Also regardless of whether you enter into this Agreement, you will be entitled to receive the Accrued Benefits and you will remain bound by your continuing obligations to the Company (collectively, the “Continuing Obligations”) under your Confidential Information and Invention Assignment Agreement dated February 29, 2020 (the “CIIA”).  Such Continuing Obligations include, without limitation, your confidentiality obligations, return of property obligations and non-solicitation obligations.  

   

  The remainder of this letter sets forth the terms of the Agreement.  You acknowledge that you are entering into this Agreement knowingly and voluntarily.  With those understandings, you and the Company agree as follows:

  (1)Separation from Employment

  This confirms that your employment with the Company shall terminate on the Separation Date.  You further confirm that as of the Transition Date you shall be deemed to have resigned as an officer of the Company, including the positions of Chief Executive Officer, President and Principal Executive Officer. After the Separation Date, except for your role as director of the Company and as a consultant under the Consulting Agreement (as defined below), you will not represent yourself as being an employee, officer, attorney, agent, or representative of the Company (or its affiliates) for any purpose.  Except as otherwise set forth in this Agreement and the Executive Severance Plan, the Separation Date will be your employment termination date for all purposes, meaning you are not entitled to any further compensation, monies, or other benefits from the Company (or its affiliates), including coverage under any benefit plans or programs sponsored by the Company, as of the Separation Date.  Accordingly, your right to participate in the Company’s medical, dental and vision health benefits will cease on the last day of the month in which the Separation 

   

  2173 Salk Ave., Suite 250, PMB #052, Carlsbad, CA 92008

   

  

   

  Date occurs except you will have the right to continue group health care coverage after such date under the law known as “COBRA” which will be described in a separate written notice by Anthem.  

  (2)Consideration

  (a)Transition Period.  Until April 30, 2022 you will remain a full time employee and you will continue to receive your base salary at your current annualized rate of $468,000.  Commencing May 1, 2022, your hours will be reduced to 75% time and your base salary shall be reduced to an annualized rate of $351,000. You will remain a participant in the Company’s benefits plans and be paid your applicable base salary rate in accordance with the Company’s standard payroll practices through the Separation Date.

  (b)Supplemental Consideration.  Subject to this Agreement becoming effective and your compliance with this Agreement, the Supplemental Release becoming effective and your compliance with the Continuing Obligations and the terms and conditions set forth in the Executive Severance Plan, the Company shall provide you with the following (collectively, the “Supplemental Consideration”): 

  (i)	Severance Benefits.  The Company agrees to provide you with the severance benefits of a Tier 1 Executive under the terms and conditions set forth in Section 6 of the Executive Severance Plan, which in summary provides: (i) payment to you of an amount equal to twelve (12) months Base Salary (as defined in the Executive Severance Plan), which would be the base salary in effect on the date you sign this letter, and (ii) to the extent you were participating in the Company’s group health plan immediately prior to the Separation Date and elect COBRA health continuation, then the Company shall pay to you a monthly cash payment in an amount equal to the monthly employer contribution that the Company would have paid had you remained an employee.  All payments will be paid out in substantially equal installments in accordance with the Company’s payroll practice over 12 (twelve) months. The foregoing is qualified and subject in its entirety to the terms and conditions set forth in the Executive Severance Plan.

  (ii)	Consulting Arrangement.  The Company agrees to engage you as a consultant pursuant to the consulting agreement set forth in Exhibit C attached hereto (the “Consulting Agreement”) to be effective immediately following the Separation Date that shall provide for your continuation of service to the Company on the terms and subject to the conditions set forth therein.  Your service as a Consultant pursuant to the Consulting Agreement will constitute an uninterrupted “Service Relationship” (as defined in the 2021 Stock Option and Incentive Plan) and “Continuous Service Status” (as defined in the Restricted Stock Purchase Agreement dated as of February 29, 2020, as amended by Amendment No. 1 to Restricted Stock Purchase Agreement dated as of December 23, 2020 (as amended, the “RSA”).  Accordingly, any portion of the Equity Awards that remains unvested as of the Separation Date will continue to vest during the term of the Consulting Agreement in accordance with the terms of the applicable Equity Award.  

  3.Equity Awards

  Exhibit D to this Agreement sets forth all of your outstanding equity awards as of the date hereof that were provided or granted in connection with your performance of services for the Company (collectively, the “Equity Awards”).  Exhibit D provides for a summary of the treatment of your Equity Awards in connection with your change in status from employee to consultant and non-employee director as of the Separation Date.  As a condition to this Agreement becoming effective, you agree to re-execute and deliver to the Company’s Corporate Secretary the stock power in blank attached as Exhibit D.

  4.Board of Directors

  (a)You are currently a member of the Board of Directors and classified as a Tier III Director whose term expires at the annual stockholders meeting in 2024, subject to your earlier resignation, death or removal.  Accordingly, any portion of the Equity Awards that remains unvested as of the Separation Date will continue to vest while you serve on the Board of Directors in accordance with the terms of the applicable Equity Award.  

   

   

   

   

  

   

  (b)No modification to any of your outstanding equity awards is intended to occur as a result of the change in your status to a consultant and/or non-employee director except those changes that occur by operation of law.

  (c)Following the Separation Date and so long as you remain a non-employee director, you will be entitled to compensation consistent with the terms of the Non-Employee Director Compensation Policy. 

  5.Employee Representations.  You specifically represent, warrant, and confirm that as of the date of this Agreement you:

  (a)have not filed any claims, complaints, or actions of any kind against the Company with any federal, state, or local court or government or administrative agency;

  (b)have not made any claims or allegations to the Company related to sexual harassment, sex discrimination, or sexual abuse, and that none of the payments set forth in this Agreement are related to sexual harassment, sex discrimination, or sexual abuse;

  (c)have been properly paid for all hours worked for the Company as of applicable representation date;

  (d)have received all wages, salary, bonuses and other compensation due from the Company; and

  (e)have not engaged in and is not aware of any unlawful conduct relating to the business of the Company.

  As of the Separation Date, you agree to reaffirm each of the foregoing representations and warranties as a condition to receiving the severance benefits.

  6.Release of Claims  

  (a)In consideration for, among other terms, your continued employment, to which you acknowledge you would otherwise not be entitled, you, on behalf of yourself and your heirs, executors, representatives, agents, insurers, administrators, successors and assigns (collectively, the “Releasors”) voluntarily release and forever discharge the Company, its affiliated and related entities, its and their respective predecessors, successors and assigns, its and their respective employee benefit plans and fiduciaries of such plans, and the current and former officers, directors, shareholders, employees, attorneys, insurers, accountants and agents of each of the foregoing in their official and personal capacities (collectively referred to as the “Releasees”) generally from all claims, demands, debts, damages and liabilities of every name and nature, known or unknown (“Claims”) that, as of the date when you sign this Agreement and as of the Separation Date, you and the other Releasors have, ever had, now claim to have or ever claimed to have had against any or all of the Releasees.  This release includes, without limitation, all Claims: relating to your employment by the Company and the termination of your employment; of wrongful discharge or violation of public policy; of breach of contract; of defamation or other torts; of retaliation or discrimination under federal, state or local law, including without limitation: 

  i.any and all Claims under Title VII of the Civil Rights Act of 1964 (Title VII), the Americans with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA) (regarding existing but not prospective claims), the Fair Labor Standards Act (FLSA), the Equal Pay Act, the Employee Retirement Income Security Act (ERISA) (regarding unvested benefits), the Civil Rights Act of 1991, Section 1981 of U.S.C. Title 42, the Fair Credit Reporting Act (FCRA), the Worker Adjustment and Retraining Notification (WARN) Act, the Uniform Services Employment and Reemployment Rights Act (USERRA), the Genetic Information Nondiscrimination Act (GINA), the Immigration Reform and Control Act (IRCA), the Massachusetts Fair Employment Practices Law (MFEPL), the Massachusetts Civil Rights Act (MCRA), the Massachusetts Equal Rights Act (MERA), the Minimum Fair Wage Act, the Massachusetts Plant Closing Law, the Massachusetts Wage Act, the Massachusetts Equal Pay Act, the Massachusetts Parental Leave Act (MPLA), the Massachusetts Sexual Harassment Statute, the California Constitution, and the California Family Rights Act (CFRA), all including any amendments and their respective implementing regulations, and any other federal, state, local, or foreign law (statutory, regulatory, or otherwise) that may be legally waived and released; however, the identification of specific statutes is for purposes of example only, and the omission of any specific statute or law shall not limit the scope of this general release in any manner;

   

   

   

   

  

   

  ii.any and all Claims arising under tort, contract, and quasi-contract law, including but not limited to claims of breach of an express or implied contract, wrongful or retaliatory discharge, fraud, defamation, negligent or intentional infliction of emotional distress, tortious interference with a contract or prospective business advantage, breach of the implied covenant of good faith and fair dealing, promissory estoppel, detrimental reliance, invasion of privacy, false imprisonment, nonphysical injury, personal injury or sickness, or any other harm;

  iii.any and all Claims for compensation of any type whatsoever, including but not limited to claims for wages, salary, bonuses, commissions, incentive compensation, vacation, sick pay, and severance that may be legally waived and released; and

  iv.any and all Claims for monetary or equitable relief, including but not limited to attorneys' fees, back pay, front pay, reinstatement, experts' fees, medical fees or expenses, costs and disbursements, punitive damages, liquidated damages, and penalties.

  However, this general release and waiver of claims shall not affect your vested rights under the Company’s Section 401(k) plan or your rights under this Agreement, and shall not waive (A) any rights that cannot be waived as a matter of law, (B) any Claims for coverage under any D&O insurance policy, (C) any Claims for indemnification under any arrangement or agreement between you and the Company, (D) your rights to Claims under state workers' compensation or unemployment laws and your right to file an administrative charge or complaint with, or testify, assist, or participate in an investigation, hearing, or proceeding conducted by, the Equal Employment Opportunity Commission (the "EEOC"), the California Department of Fair Employment and Housing, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the Company (with the understanding that any such filing or participation does not give you the right to recover any monetary damages against the Company; your release of claims herein bars you from recovering such monetary relief from the Company), and (E) protections against retaliation under the Taxpayer First Act (26 U.S.C. § 2623(d).  Further, this general release does not release claims under the California Fair Employment and Housing Act, the California Labor Code or the federal Age Discrimination in Employment Act of 1967, which claims shall be released only upon your execution of the Supplemental Release.   

  You agree not to accept damages of any nature, other equitable or legal remedies for your own benefit or attorney's fees or costs from any of the Releasees with respect to any Claim released by this Agreement. As a material inducement to the Company to enter into this Agreement, you  represent that you have not assigned any Claim to any third party.

   

  b.In granting the release herein, you understand that this Agreement includes a release of all Claims known or unknown. In giving this release, which includes Claims which may be unknown to you at present, you acknowledge that you have read and understand Section 1542 of the California Civil Code which reads as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY." You hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to the release of any unknown or unsuspected Claims you may have against the Company. You acknowledge that you may later discover Claims or facts in addition to or different from those which you now know or believe to exist with regards to the subject matter of this Agreement, and which, if known or suspected at the time of executing this Agreement, may have materially affected its terms. Nevertheless, the Releasors waive any and all Claims that might arise as a result of such different or additional claims or facts.

   

  c.You agree you will not knowingly encourage, counsel, or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so or as related directly to the ADEA waiver in the Supplemental Release. You agree both to immediately notify the Company upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order. If approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, 

   

   

   

   

  

   

  differences, grievances, claims, charges, or complaints against any of the Releasees, you shall state no more than that you cannot provide counsel or assistance.

  7.Return of Property

  You warrant and represent that as of the Separation Date you will have returned all Company property, including identification cards or badges, access codes or devices, keys, laptops, computers, telephones, mobile phones, hand-held electronic devices, credit cards, electronically stored documents or files, physical files, and any other Company property in your possession, except to the extent the Company deems retention of any of the foregoing is necessary in connection with the performance of your consulting services. You further acknowledge and agree that by the Separation Date you will no longer have access to and do not claim ownership of any of the Company's cloud storage or social media accounts.

  8.Confidentiality of Agreement-Related Information

  You agree, to the fullest extent permitted by law and except as disclosed publicly by the Company, including, but not limited to in its securities filings, to keep all Agreement-Related Information completely confidential. "Agreement-Related Information" means the negotiations leading to this Agreement and the existence and terms of this Agreement. Notwithstanding the foregoing, you may disclose Agreement-Related Information to your spouse, your attorney and your financial advisors, and to them only provided that they first agree for the benefit of the Company to keep Agreement-Related Information confidential. Nothing in this Section 8 shall be construed to prevent you from disclosing Agreement-Related Information to the extent required by a lawfully issued subpoena or duly issued court order; provided that you provide the Company with advance written notice and a reasonable opportunity to contest such subpoena or court order.

  9.Other Provisions

  a)Termination of Payments.  If you breach any of your obligations under this Agreement or your Continuing Obligations, in addition to any other legal or equitable remedies Company may have for such material breach, the Company shall have the right to terminate your employment and your benefits under this Agreement and the Supplemental Release.  The termination of such payments in the event of your breach will not affect your obligations under this Agreement or your Continuing Obligations.  

  b)Company No Disparagement Covenant.  Provided this Agreement and the Supplemental Release become effective, the Company agrees to refrain from any disparaging statements about you.  You understand that the Company’s obligations under this paragraph extend only to the Company’s current executive officers and members of its Board of Directors and only for so long as each officer or member is an employee or Director of the Company.  This no-disparagement covenant shall not in any way affect the Company’s obligation to (i) testify truthfully in any legal proceeding, (ii) disclose your name, position and dates of employment in response to any reference inquiries, and (iii) provide truthful information about the reasons for your termination in response to inquiries from any state unemployment insurance agency, in public filings, as required by law, and in any legal or administrative proceeding.

  c)Protected Disclosures and Other Protected Actions.  Nothing contained in this Agreement or your CIIA limits your ability to file a charge or complaint with any federal, state or local governmental agency or commission (a “Government Agency”).  In addition, nothing contained in this Agreement or CIIA limits your ability to communicate with any Government Agency or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including your ability to provide documents or other information, without notice to the Company, nor does anything contained in this Agreement apply to truthful testimony in litigation.  If you file any charge or complaint with any Government Agency and if the Government Agency pursues any claim on your behalf, or if any other third party pursues any claim on your behalf, you waive any right to monetary or other individualized relief (either individually, or as part of any collective or class action); provided that nothing in this Agreement limits any right you may have to receive a whistleblower award or bounty for information provided to the Securities and Exchange Commission.  Nothing in this Agreement prevents you from discussing or disclosing information about unlawful acts in the workplace, including unlawful harassment, unlawful discrimination or other conduct you have reasonable cause to believe is unlawful. 

   

   

   

   

  

   

  d)Absence of Reliance.  In signing this Agreement, you are not relying upon any promises or representations made by anyone at or on behalf of the Company.  

  e)Enforceability.  If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.  

  f)Waiver.  No waiver of any provision of this Agreement shall be effective unless made in writing and signed by the waiving party.  The failure of a party to require the performance of any term or obligation of this Agreement, or the waiver by a party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

  g)Jurisdiction.  You and the Company hereby agree that the state and federal courts situated in California shall have the exclusive jurisdiction to consider any matters related to this Agreement, including without limitation any claim of a violation of this Agreement.  With respect to any such court action, you submit to the jurisdiction of such courts and you acknowledge that venue in such courts is proper.

  h)Relief.  You agree that it would be difficult to measure any harm caused to the Company that might result from any breach by you of your promises set forth in Sections 6, 7, 8 or 9 of this Agreement.  You further agree that money damages would be an inadequate remedy for any breach Sections 6, 7, 8 and 9.  Accordingly, you agree that if you breach, or propose to breach, Sections 6, 7, 8 or 9, the Company shall be entitled, in addition to all other remedies it may have, to an injunction or other appropriate equitable relief to restrain any such breach, without showing or proving any actual damage to the Company and without the necessity of posting a bond.

  i)Governing Law; Interpretation.  This Agreement shall be interpreted and enforced under the laws of the State of California, without regard to conflict of law principles.  In the event of any dispute, this Agreement is intended by the parties to be construed as a whole, to be interpreted in accordance with its fair meaning, and not to be construed strictly for or against either you or the Company or the “drafter” of all or any portion of this Agreement.

  j)Entire Agreement.  This Agreement (including the Exhibits) and the Equity Documents constitute the entire agreement between you and the Company.  This Agreement (including the Exhibits) and the Equity Documents supersede any previous agreements or understandings between you and the Company, except the Continuing Obligations and any other obligations specifically preserved in this Agreement.

  k)Time for Consideration; Effective Date.  You acknowledge that you have knowingly and voluntarily entered into this Agreement and that the Company advises you to consult with an attorney before signing this Agreement.  You understand and acknowledge that you have been given the opportunity to consider this Agreement for five (5) business days from your receipt of this Agreement before signing it (the “Consideration Period”).  To accept this Agreement, you must return a signed original or a signed PDF copy of this Agreement so that it is received by Elizabeth Lacy (elacy@pardesbio.com) at or before the expiration of the Consideration Period.  If you sign this Agreement before the end of the Consideration Period, you acknowledge that such decision was entirely voluntary and that you had the opportunity to consider this Agreement for the entire Consideration Period.  This Agreement shall become effective on the date it is signed by both parties (the “Effective Date”).

  l)No Admission of Liability. Nothing in this Agreement shall be construed as an admission by the Company of any wrongdoing, liability, or noncompliance with any federal, state, city, or local rule, ordinance, statute, common law, or other legal obligation.

  m)Counterparts.  This Agreement may be executed in separate counterparts.  When both counterparts are signed, they shall be treated together as one and the same document. Delivery of an executed counterpart signature page of this Agreement, by facsimile, email in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, has the same effect as delivery of an executed original of this Agreement.

   [signature page follows]

   

   

   

   

   

  

   

  Please indicate your agreement to the terms of this Agreement by signing and returning to Ms. Lacy the original or a PDF copy of this letter within the time period set forth above.

  Sincerely,

  PARDES BIOSCIENCES, INC.

   

  					
	By:
	 
	/s/ Thomas G. Wiggans
	 
	3/27/2022

	 
	 
	Thomas G. Wiggans
	 
	Date

	 
	 
	Chief Executive Officer
	 
	 

   

   

  You are advised to consult with an attorney before signing this Agreement. This is a legal document.  Your signature will commit you to its terms.  By signing below, you acknowledge that you have carefully read and fully understand all of the provisions of this Agreement and that you are knowingly and voluntarily entering into this Agreement.  

   

  			
	/s/ Uri A. Lopatin, M.D.
	 
	3/25/2022

	Uri A. Lopatin, M.D.
	 
	Date

   

   

   

   

   

   

  

   

  EXHIBIT A

  EXECUTIVE SEVERANCE PLAN

   

  [***]

  Document has been separately filed as an exhibit to this Annual Report on Form 10-K.

   

   

   

   

   

   

  

   

  EXHIBIT B

  SUPPLEMENTAL RELEASE

  I, Uri A. Lopatin, M.D., hereby acknowledge and certify that I entered into that certain transition and separation agreement and general release of claims (the “Agreement”) with Pardes Biosciences, Inc. (the “Company”).  Capitalized terms used herein and not otherwise defined have the meanings ascribed to such terms in the Agreement.  Pursuant to the Agreement, I am required to execute this Supplemental Release, which updates and extends the release of claims set forth in Section 6 of the Agreement, in order to be eligible for certain benefits. 

   

  I understand that I may not sign this Supplemental Release until on or after the Separation Date and that I must return it to the Company within twenty-one (21) days after the Separation Date.

   

  I, therefore, agree as follows:

   

  1.A copy of this Supplemental Release was attached to the Agreement as Exhibit B.

  2.In consideration of the Supplemental Consideration described in Sections 2(b) of the Agreement, for which I become eligible only if I sign this Supplemental Release, I hereby (i) irrevocably and unconditionally release and forever discharge the Releasees generally from any and all claims, including without limitation all claims arising under the California Fair Employment and Housing Act, the California Labor Code and the Age Discrimination in Employment Act of 1967 (“ADEA”), that, as of the date I sign this Supplemental Release, I have, ever had, now claim to have or ever claimed to have had against any or all of the Releasees, and (ii) extend the release of claims set forth in Section 6 of the Agreement to any and all claims that arose after the date I signed the Agreement through the date I signed this Supplemental Release.  

  3.I have carefully read and fully understand all of the provisions of this Supplemental Release, I knowingly and voluntarily agree to all of the terms set forth in this Supplemental Release, and I acknowledge that in entering into this Supplemental Release, I am not relying on any representation, promise or inducement made by the Company, or its respective representatives with the exception of those promises contained in this Supplemental Release and the Agreement.  I further acknowledge that I have been advised to discuss all aspects of this Supplemental Release with my attorney.  

  4.I agree that this Supplemental Release shall be part of the Agreement.

  5.I acknowledge that I am waiving and releasing any rights I may have under the ADEA, and that this waiver and release is knowing and voluntary.  I agree that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Supplemental Release Effective Date (defined below).  I acknowledge that the consideration given for this waiver and release is in addition to anything of value to which I was already entitled.  I further acknowledge that I have been advised by this writing that: (a) I should consult with an attorney prior to executing this Supplemental Release; (b) I have twenty-one (21) days within which to consider this Supplemental Release; (c) I have seven (7) days following my execution of this Supplemental Release to revoke this Supplemental Release (the “Revocation Period”); (d) this Supplemental Release shall not be effective until after the revocation period has expired; and (e) nothing in this Supplemental Release prevents or precludes me from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law.  In the event I sign this Supplemental Release and return it to the Company in less than the 21-day period identified above, I hereby acknowledge that I have freely and voluntarily chosen to waive the time period allotted for considering this Supplemental Release.  The parties agree that changes, material or immaterial, do not restart the running of the 21-day period.  I understand that revocation must be accomplished by a written notification to the person executing this Supplemental Release on the Company’s behalf that is received prior to the Supplemental Release Effective Date (defined below).    

   

   

   

   

  

   

  6.I acknowledge that I have been advised to consult with legal counsel and am familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows:

  A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

  Being aware of said code section, I agree to expressly waive any rights I may have thereunder, as well as under any other statute or common law principles of similar effect.

  7.Subject to the “Protected Disclosures and Other Protected Actions” section in the Agreement, I agree to refrain from any disparagement, defamation, libel, or slander of any of the Releasees.  I further agree to refrain from any tortious interference with the contracts and relationships of any of the Releasees. 

   

  8.I specifically represent, warrant, and confirm that as of the Separation Date I:

  a.have not filed any claims, complaints, or actions of any kind against the Company with any federal, state, or local court or government or administrative agency;

  b.have not made any claims or allegations to the Company related to sexual harassment, sex discrimination, or sexual abuse, and that none of the payments set forth in this Agreement are related to sexual harassment, sex discrimination, or sexual abuse;

  c.have been properly paid for all hours worked for the Company as of applicable representation date;

  d.have received all wages, salary, bonuses and other compensation due from the Company; and

  e.have not engaged in and is not aware of any unlawful conduct relating to the business of the Company.

  9.This Supplemental Release shall become effective on the day immediately following the expiration of the Revocation Period (the “Supplemental Release Effective Date”), provided that I do not revoke this Supplemental Release during the Revocation Period.   

   

   

  		
	 
	 

	 
	Uri A. Lopatin, M.D.

   

   

  		
	 
	 

	 
	Date

   

   

   

   

   

   

  

   

  EXHIBIT C

  CONSULTING AGREEMENT

   

  [***]

  Document has been separately filed as an exhibit to this Annual Report on Form 10-K.

   

   

   

   

   

   

  

   

  EXHIBIT D

  EQUITY AWARD SUMMARY

   

  [***]EX-10.22

   

   

  EXHIBIT 10.22

  CONSULTING AGREEMENT

  This CONSULTING AGREEMENT (this “Consulting Agreement”) is executed as of March 25, 2022 to be effective as of the first day following the Separation Date (as defined in the Separation Agreement) (the “Effective Date”) but contingent upon, and assuming that, both the Separation Agreement has become effective and not revoked and the Supplemental Release (attached to the Separation Agreement as Exhibit B) has become effective, by and between Pardes Biosciences, Inc., a Delaware corporation (“Company”), and Uri A. Lopatin, M.D., a California resident (the “Consultant”).  This Consulting Agreement is being entered into by the parties pursuant to that certain Transition and Separation Agreement and General Release of Claims dated as of March 25, 2022 (the “Separation Agreement”) and is Exhibit C to such Separation Agreement.  Each capitalized term used herein and not otherwise defined shall have the meaning assigned to such term in the Separation Agreement.  

  WITNESSETH:

  WHEREAS, Company desires to engage Consultant as of the Effective Date to provide certain scientific and strategic advisory services on an independent contractor basis as outlined below, and Consultant wishes to provide such services to Company; and

  WHEREAS, Company and Consultant desire to establish and document the terms and conditions of such consulting relationship between them.

  NOW, THEREFORE, in consideration of the mutual promises and obligations of the parties set forth herein and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties agree as follows:

  1.Appointment of Consultant; Services. As of the Effective Date, Company appoints Consultant and Consultant hereby accepts appointment as consultant to the Company. In this capacity, Consultant shall perform scientific and strategic advisory services and other projects as may be requested from time to time by the Chief Executive Officer of the Company, and agreed to by Consultant, including providing an orderly transition of Consultant’s responsibilities to the Chief Executive Officer and providing scientific and strategic advisory services to the executive officers as requested (the “Services”). For avoidance of doubt, Consultant shall not be compensated under this Agreement for, and Services under this Agreement do not include, any services you provide to the Company on behalf of the Company’s Board of Directors or in your role as a director of the Company. Consultant and Company shall work together to delineate the scope of each project and the timeline and deliverables related thereto.  Consultant is expected to work no more than 10 hours per week for the Company, which is less than 20% of his average weekly service level with the Company over the 36 months prior to the end of the Initial Consulting Period.  

  2.Term; Termination. Upon the Separation Agreement becoming effective, this Consulting Agreement will be effective as of the first day following the Separation Date (as defined in the Separation Agreement), which date is currently anticipated to be August 1, 2022, and will continue in effect until March 2, 2024 (the “Term”). This Consulting Agreement may be terminated at any time by either party, with or without Cause (as defined in the 2021 Stock Option and Incentive Plan), and without prejudice to any right or remedy a party may have due to any failure of the other party to perform their obligations under this Consulting Agreement, upon ninety (90) days written notice to the other party. The Company may, in addition to any other rights it may have at law or in equity, terminate this Consulting Agreement immediately and without prior notice for Cause or if Consultant is in breach of any material provision of this Consulting Agreement or the Separation Agreement and fails to cure such breach (to the extent capable of being cured) within thirty (30) days after receipt of written notice describing in detail Consultant’s breach.  

   

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  In the event of a dispute over what constitutes a breach hereunder or a termination for Cause, the parties shall agree to resolve the matter in accordance with Section 13.

  3.Duties of Consultant.  Consultant agrees to faithfully, diligently, competently, and to the best of his ability perform the Services; provided, that Consultant will at all times retain sole and absolute discretion and judgment in the manner and means of carrying out the Services. Consultant shall use best efforts to perform the Services in a manner satisfactory to the Company.  Without limiting the foregoing, Consultant shall provide Services to Company in accordance with generally accepted professional standards as applied to similar projects performed under similar conditions prevailing in the industry at the time such Services are rendered to the Company. Consultant shall not subcontract any portion of Consultant’s duties or obligations under this Consulting Agreement without the prior written consent of the Chief Executive Officer. 

  4.Services for Others. Subject to the limitations in this Section 4, Consultant will be free to perform consulting services for other persons and entities during the Term. During the Term, Consultant will not directly or indirectly, (i) engage in any business for Consultant’s own account that competes with the Business (as defined below) of Company in any geographical area in which Company does business, (ii) enter the employ of, or render any services to, any person engaged in any business that competes with the Business of Company in any geographical area in which Company does business but only to the extent Consultant is being employed or retained to provide services to the competitor in the Business, (iii) acquire a financial interest in, or otherwise become actively involved with, any person engaged in any business that competes with the Business of Company in any geographical area in which Company does business as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant, or (iv) interfere with business relationships (whether formed before or after the Term with Company) between Company and strategic partner, vendor or suppliers of, or consultants to, Company that were engaged in, or were immediate prospects for engaging in, business with Company before my consulting relationship with Company was terminated.  For purposes of this Section 4, “Business” shall mean any business directly or indirectly related to design, development, and marketing of oral antivirals for coronaviruses and any other product or services that the Company may during the Term of this Consulting Agreement be designing, developing and/or marketing and on which Consultant provides Services during the Term of this Consulting Agreement. Notwithstanding the foregoing, Consultant may, directly or indirectly own, solely as an investment, securities of any person engaged in the Business of Company which are publicly traded on a national or regional stock exchange or on the over-the-counter market if Consultant (i) is not a controlling person of, or a member of a group which controls, such person and (ii) does not, directly or indirectly, own 3% or more of any class of securities of such person. Company agrees and acknowledges that Consultant may provide consulting services to third parties and this provision is not intended to unreasonably restrict Consultant’s ability to engage in such other business activities.

  5.Compensation of Consultant.  Consultant shall be paid an hourly rate of $400.00 per hour that Services are performed. Consultant shall be entitled to bill for Services in increments of 15 minutes, in which case the hourly rate will be reduced on a pro rata basis.  Prior to performing Services in excess of 40 hours in a given month, Consultant shall first obtain the written consent of the Chief Executive Office and shall not invoice the Company in excess of $16,000 per month without such written consent. When Consultant is required to travel in connection with the performance of Services, Consultant shall not charge for travel time in excess of 6 hours in a 24-hour period (for domestic travel and travel within North America) and in excess of 10 hours in a 24-hour period (for other international travel).  Travel time will be billed at $200.00 per hour (1⁄2 the hourly rate specified above), unless work is performed while in transit and the standard rate is approved by the Chief Executive Officer of Pardes. As provided in the Separation Agreement, Services under this Agreement shall constitute uninterrupted Service Relationship and Continuous Service Status (as each such term is defined in the applicable equity award) under Consultant’s existing equity awards.  During the Term of this Agreement, such equity awards shall continue to vest until the cessation of the Service Relationship and Continuous Service Status and be subject to repurchase/forfeiture/expiration in each case in accordance with their terms and the applicable equity award listed on Exhibit B to the Separation Agreement.

   

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  6.Expenses.  Consultant shall be reimbursed for any reasonable expenses incurred while performing Services on behalf of Company, including travel (i.e., airfare, meals and lodging), provided such expenses are approved by Company in advance in writing.  All air travel on behalf of Company shall be coach class (except for international travel which may be business class in accordance with the Company’s travel policy) unless otherwise mutually agreed by the parties.  As a condition to receipt of reimbursement, Consultant shall be required to submit to Company reasonable evidence that the amount involved was expended and related to Services provided under this Consulting Agreement.

  7.Independent Contractor Status of Consultant.

  a.Consultant's legal status is an independent contractor of Company.  Nothing in this Consulting Agreement makes Consultant the agent, partner, joint venturer, employee or legal representative of Company for any purpose whatsoever; nor shall Consultant hold himself out as such.  Consultant will have no authority to bind Company in any manner or for any purpose.

  b.Consultant will not be an employee of Company for any purpose, including for purposes of the Fair Labor Standards Act's minimum wage and overtime provisions, nor any other provision of federal, state, or local law applicable to employees. Further, except for the health benefits provided in the Separation Agreement, Consultant understands and agrees that he will not be entitled to any employee benefits that may be made available by the Company to its employees, including but not limited to vacation pay, sick leave, retirement benefits, social security, workers' compensation, health or disability benefits, and unemployment insurance benefits.

  c.Consultant acknowledges that he has not relied on any statements or representations by the Company or its attorneys with respect to the tax treatment of any compensation due under this Consulting Agreement. Consultant understands that the Company will not be responsible for withholding or paying any federal or state income, social security or other taxes in connection with any compensation paid under this Consulting Agreement, and Consultant agrees that he is solely responsible for any such tax payments.

  8.Representations. Consultant hereby represents and warrants to Company that (a)  Consultant is free to enter into this Consulting Agreement with Company and to perform the Services described herein; (b) the execution of this Consulting Agreement and the performance of the Services by Consultant will not result in the breach of any express or implied, oral or written, contract or agreement, to which Consultant is bound (including, without limitation, any non-competition agreement with a current or prior employer); and (c) the execution of this Consulting Agreement and the performance of the Services will not at any time interfere with or violate any third party rights (including, without limitation, the use, disclosure, misappropriation, or infringement of any confidential information, proprietary rights or intellectual property belonging to any other person or entity).

  9.Indemnification. Consultant shall indemnify and hold Company, its affiliates and their respective directors, officers, agents and employees harmless from and against all claims, demands, losses, damages and judgments, including court costs and attorneys’ fees, arising out of or based upon (i) Consultant’s gross negligence or willful misconduct; and (ii) any breach or alleged breach by Consultant of any representation, warranty, certification, covenant, obligation or other agreement set forth in this Consulting Agreement.

  10.Ownership of Intellectual Property; Proprietary Information.  Consultant agrees to the foregoing:

  a.Company shall own all right, title and interest (including all intellectual property rights of any sort throughout the world) relating to any and all inventions, works of authorship, designs, know-how, ideas and information made or conceived or reduced to practice, in whole or in part, by or for or on behalf of Consultant during the term of this Consulting Agreement that relate to the subject matter of or arise out of or in connection with the Services or any Proprietary Information (as defined below) (collectively, “Inventions”) and Consultant will promptly disclose and provide all Inventions to Company.  Consultant hereby makes all assignments necessary to accomplish 

   

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  the foregoing ownership.  Consultant shall assist Company, at Company’s expense, to further evidence, record and perfect such assignments, and to perfect, obtain, maintain, enforce and defend any rights assigned.  Consultant hereby irrevocably designates and appoints Company as its agents and attorneys-in-fact, coupled with an interest, to act for and on Consultant’s behalf to execute and file any document and to do all other lawfully permitted acts to further the foregoing with the same legal force and effect as if executed by Consultant and all other creators or owners of the applicable Invention.

  b.Consultant agrees that all Inventions and all other business, technical and financial information (including, without limitation, the identity of and information relating to customers or employees) developed, learned or obtained by or on behalf of Consultant during the period that Consultant is to be providing the Services that relate to Company or the business or demonstrably anticipated business of Company or in connection with the Services or that are received by or for Company in confidence, constitute “Proprietary Information.”  Consultant shall hold in confidence and not disclose or, except in performing the Services, use any Proprietary Information.  However, Consultant shall not be obligated under this paragraph with respect to information Consultant can document is or becomes readily publicly available without restriction through no fault of Consultant.  Upon termination or as otherwise requested by Company, Consultant will promptly provide to Company all items and copies containing or embodying Proprietary Information, except that Consultant may keep its personal copies of its compensation records and this Agreement.  Consultant also recognizes and agrees that Consultant has no expectation of privacy with respect to Company’s telecommunications, networking or information processing systems (including, without limitation, stored computer files, email messages and voice messages) and that Consultant’s activity, and any files or messages, on or using any of those systems may be monitored at any time without notice.   

  c.As additional protection for Proprietary Information, to the extent permitted under applicable law, Consultant agrees that during the period over which Consultant is to be providing the Services and for one (1) year thereafter, Consultant will not directly or indirectly encourage or solicit any employee or consultant of Company to leave Company for any reason. Consultant may perform services for other persons, provided that such services do not represent a conflict of interest or a breach of Consultant’s obligations under this Agreement or otherwise.

  d.To the extent allowed by law, Section 10(a) and any license granted Company hereunder includes all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as “moral rights,” “artist’s rights,” “droit moral,” or the like (collectively “Moral Rights”).  Furthermore, Consultant agrees that notwithstanding any rights of publicity, privacy or otherwise (whether or not statutory) anywhere in the world, and without any further compensation, Company may and is hereby authorized to (and to allow others to) use Consultant’s name in connection with promotion of its business, products or services.  To the extent any of the foregoing is ineffective under applicable law, Consultant hereby provides any and all ratifications and consents necessary to accomplish the purposes of the foregoing to the extent possible and agrees not to assert any Moral Rights with respect thereto.  Consultant will confirm any such ratifications and consents from time to time as requested by Company.  If any other person is in any way involved in any Services, Consultant will obtain the foregoing ratifications, consents and authorizations from such person for Company’s exclusive benefit.

  e.If any part of the Services or Inventions or information provided hereunder is based on, incorporates, or is an improvement or derivative of, or cannot be reasonably and fully made, used, reproduced, distributed and otherwise exploited without using or violating technology or intellectual property rights owned by or licensed to Consultant (or any person involved in the Services) and not assigned hereunder, Consultant hereby grants Company and its successors a perpetual, irrevocable, worldwide royalty-free, non-exclusive, sublicensable right and license to exploit and exercise all such technology and intellectual property rights in support of Company’s exercise or exploitation of the Services, Inventions, other work or information performed or provided hereunder, or any assigned rights (including any modifications, improvements and derivatives of any of them).

   

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  11.Remedies. Consultant acknowledges and agrees that the breach or threatened breach of Sections 4, 10, 11 and/or 12 of this Consulting Agreement may result in immediate and irreparable injury to Company, which injury may not be subject to redress by monetary damages. Accordingly, Consultant agrees that Company is entitled to enforce this Consulting Agreement by seeking a temporary restraining order, preliminary and permanent injunction and/or any other appropriate equitable relief, and without the necessity of posting any bond. Nothing in this Section prohibits the Company from pursuing any other remedies available to it in law or equity, including but not limited to the recovery of monetary damages.

  12.Assignment. Due to the personal nature of the Services to be rendered hereunder, Consultant may not assign this Consulting Agreement.  The Company may assign this Consulting Agreement without the consent of Consultant.  Subject to the foregoing, this Consulting Agreement will inure to the benefit of and be binding upon each of the heirs, assigns and successors of the respective parties.

  13.Governing Law; Venue. The validity, interpretation, construction and performance of this Consulting Agreement, and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to the principles of conflict of laws. Any litigation arising out of or related to this Consulting Agreement will be brought exclusively in any state or federal court in San Francisco, California. Each party (i) consents to the personal jurisdiction of said courts, (ii) waives any venue or inconvenient forum defense to any proceeding maintained in such courts, and (iii) agrees not to bring any proceeding arising out of or relating to this Consulting Agreement in any other court or jurisdiction

  14.Compliance with Laws.

  a.Absence of Debarment/Exclusion. Consultant has not been debarred, and to the best of Consultant’s knowledge, is not under consideration to be debarred, by the U.S. Food and Drug Administration or comparable foreign equivalent from working in or providing services to any pharmaceutical or biotechnology company under the Generic Drug Enforcement Act of 1992 or comparable foreign law or regulation.  Consultant will immediately notify Company if it becomes aware of any such action being taken or threatened to be taken against Consultant.

  b.Anti-Bribery and Corruption Covenant. Consultant shall not violate any applicable anti-bribery and anti-corruption laws or regulations, including the US Foreign Corrupt Practices Act, the UK Bribery Act 2010, the China anti-bribery and corruptions laws or other local laws applicable to your Services (collectively, the “Anti-Bribery Laws”). Consultant shall not make, directly or indirectly, in connection with this Consulting Agreement or any Services or in connection with any other business transaction related to Company, a payment or gift of, or an offer, promise or authorization to give money or anything of value to any (a) (i) director, officer, employee, agent or representative (including anyone elected, nominated, or appointed to be a director, officer, employee, agent or representative) of any Government Entity (as defined below), or anyone otherwise acting in an official capacity on behalf of a Government Entity; (ii) political party, political party official or political party employee; (iii) candidate for public or political office; (iv) any royal or ruling family member; or (v) agent or representative of any of those persons listed in subcategories (i) through (iv) (collectively, “Government Official”); (b) person or entity; or (c) other person or entity while knowing or having reason to believe that some portion or all of the payment or thing of value will be offered, given or promised, directly or indirectly, to a Government Official or another person or entity; for the purpose of: influencing any act or decision of such Government Official or such person or entity in his/her or its official capacity, including a decision to do or omit to do any act in violation of his/her or its lawful duties or proper performance of functions; or inducing such Government Official or such person or entity to use his/her or its influence or position with any Government Entity or other person or entity to influence any act or decision; in order to obtain or retain business for, direct business to, or secure an improper advantage for Company. “Government 

   

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  Entity” means (i) any national, state, regional or local government (including, in each case, any agency, department or subdivision of such government), and any government agency or department; (ii) any political party; (iii) any entity or business that is owned or controlled by any of those bodies listed in subcategory (i) or (ii); or (iv) any international organization, such as the United Nations or the World Bank.  Consultant shall when requested by Company from time to time, provide a certification in form and substance satisfactory to Company, signed by Consultant, certifying that Consultant is in compliance with this Section 16(b). A violation of this Section 16(b) shall constitute a material breach of this Consulting Agreement by Consultant.

  c.Insider Trading. Consultant acknowledges that the Company is an issuer with securities registered pursuant to U.S. Securities Act of 1933, as amended and that the disclosure of non-public information regarding the Company or any of its subsidiaries by Consultant or trading in the securities of the Company while in the possession of material nonpublic information is a material breach of the terms of this Consulting Agreement and may subject the Company and/or Consultant to liability.

  15.Miscellaneous.

  a.The provisions of Sections 2, 4 and 6-15 will survive the termination of this Consulting Agreement for any reason.

  b.Should any provision of this Consulting Agreement or the application thereof, to any extent, be held invalid or unenforceable, the remainder of this Consulting Agreement and the application thereof other than those provisions held invalid or unenforceable, shall not be affected thereby and shall continue valid and enforceable to the fullest extent permitted by law or equity.

  c.No waiver by either party of any breach of this Consulting Agreement shall be construed as a waiver of any succeeding breach of this Consulting Agreement.

  d.This Consulting Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same agreement. Any facsimile, PDF reproduction of original signatures or other electronic transmission of a signed counterpart shall be deemed to be an original counterpart and any signature appearing thereon shall be deemed to be an original signature.  

  e.This Consulting Agreement, together with the CIIA and Separation Agreement and the documents referenced therein, represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations or agreements, either written or oral regarding the subject matter thereof.

  f.This Consulting Agreement may be amended only by a written instrument signed by both Company and Consultant.

   

  [Signature Page Follows]

   

   

   

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  IN WITNESS WHEREOF, the parties hereto have executed this Consulting Agreement to be effective as of the Effective Date.

   

  		
	“COMPANY”
	“CONSULTANT”

	 
	 

	PARDES BIOSCIENCES, INC.
	 

   

   

  					
	By:
	/s/ Thomas G. Wiggans
	 
	/s/ Uri A. Lopatin, M.D.

	Name:
	 
	Thomas G. Wiggans
	 
	Uri A. Lopatin, M.D.

	Title:
	 
	Chief Executive Officer
	 
	 

   

   

   

   

   

   

   

   

   

   

  [Signature Page to Consulting Agreement]

   

   

   

   

   

   

   

   

   

   

   

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