Document:

EXHIBIT 10.1

 

SEPARATION
AGREEMENT AND GENERAL RELEASE OF CLAIMS

 

This Separation Agreement and Release of Claims (“Agreement”)
is between Amit Kumar, Ph.D. (“Kumar”) and CombiMatrix Corporation (“CombiMatrix” or the “Company”).

 

WHEREAS, CombiMatrix desires to provide Kumar with
separation benefits in connection with termination of his employment with the
Company on June 30, 2010; and

 

WHEREAS, Kumar agrees, in exchange for such separation
benefits, to waive and release any and all claims that he may have against
CombiMatrix and its Affiliates.

 

NOW THEREFORE, in consideration of the mutual promises,
releases and other consideration referred to herein and for other good and
valuable consideration, the sufficiency of which is hereby acknowledged, the
parties agree as follows:

 

1.                                      Definitions.

 

“Kumar” as used in this Agreement means the Kumar
himself or herself, and his or her family members, spouse, heirs, devisees,
legatees, executors, administrators, successors, assignees, agents,
representatives, businesses, insurers, subrogees, and attorneys, and all
persons or entities claiming through any of the foregoing persons.

 

“Affiliates” as used in this Agreement means
CombiMatrix Corporation and any of CombiMatrix’s benefit and stock option
plans, plan administrators, successors, assigns, businesses, affiliates, sister
companies, parent companies, subsidiaries, divisions, partnerships, limited
partnerships, partners, joint ventures, predecessors, officers, directors,
trustees, conservators, employees, agents, insurance carriers, contractors,
representatives, shareholders, and attorneys, and all persons or entities
claiming through its successors, assigns, businesses, affiliates, sister
companies, parent companies, subsidiaries, divisions, partnerships, limited partnerships,
partners, joint ventures, predecessors, officers, directors, trustees,
conservators, employees, agents, insurance carriers, contractors,
representatives, shareholders, and attorneys.

 

2.                                      Date of Termination.  Kumar’s employment with CombiMatrix was
terminated effective June 30, 2010 (hereinafter the “Termination Date”)
for all purposes.

 

3.                                      Separation
Benefits.

 

a.            Severance
Pay.  The Company shall pay Kumar an amount equal to one year of Kumar’s
regular base salary, less $80,000, subject to all applicable taxation as
ordinary income, on the next regularly-scheduled pay date following the
Effective Date of the Agreement (defined below).

 

b.            Group
Welfare Benefits.  Kumar shall
continue to be enrolled in the Company’s group medical, dental, and life
insurance plans through June 30, 2011.  Once the Company-paid coverage ends,
continued group health plan 

 

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coverage for Kumar and Kumar’s spouse and/or covered
dependents, may also be available at Kumar expense under the terms and
conditions specified in the Consolidated Omnibus Budget Reconciliation Act (“COBRA”).

 

c.             Unemployment
Compensation.  Kumar agrees
not to apply for unemployment compensation benefits until after the period of
time for which Severance Pay is being paid. 
While the Company cannot control the decision reached by the State of
Washington Employment Security Department on any application for unemployment
compensation benefits, it will respond that Kumar was laid off in connection
with a reduction in force and not contest Kumar’s eligibility for benefits.

 

4.                                      Release
of Claims.   Kumar KNOWINGLY AND VOLUNTARILY RELEASES,
ACQUITS, AND FOREVER DISCHARGES CombiMatrix and its Affiliates with respect to
and from and against any and all claims, wages, demands, assistance, support,
rights, liens, agreements, contracts, covenants, actions, suits, rights to
appeal, entitlements and notices, causes of action, obligations, debts, costs,
expenses, interests, attorneys’ fees, contributions, damages, judgments, orders
and liabilities of whatever kind or nature in law, equity or otherwise, whether known or unknown, suspected or unsuspected, and
whether or not concealed or hidden (“Losses”), which he or she has at any time
heretofore owned or held against CombiMatrix or its Affiliates, that are based
upon facts occurring prior to the date of this Agreement, including but not
limited to, the following:  (a) any
statutory claims under any state, or municipal statute or local ordinance
relating to discrimination in employment, the Fair Labor Standards Act, the
Consolidated Omnibus Budget Reconciliation Act (“COBRA”), Section 1981 of
the Civil Rights Act of 1866, as amended, the Equal Pay Act of 1963, the Civil
Rights Act of 1964 and 1991, the Employee Retirement Income Security Act of
1974, the Americans with Disabilities Act of 1990, the Rehabilitation Act of
1973, the Family and Medical Leave Act of 1993, the Age Discrimination in
Employment Act, as amended, the Older Workers Benefit Protection Act; (b) any
and all tort or contract claims; (c) any and all claims for past or future
employment benefits, including, but not limited to, wages, bonuses, vacation
pay, severance benefits, medical or dental insurance coverage, short or long
term disability benefits, and/or other benefits which may hereafter accrue or
which have accrued as a result of Kumar’s employment and/or affiliation with,
and/or termination and/or separation from, CombiMatrix; and, (d) any
claims, matters or actions related to Kumar’s employment and/or affiliation
with, and/or termination and/or separation from, CombiMatrix.  It is the intention of the parties and is
fully understood and agreed by them that this Agreement includes a General
Release of all Claims (with the exception of breaches of this Agreement and
claims for vested benefits, if any, to which Kumar is legally entitled under
ERISA), which Kumar holds or previously held against releasees, or any of them,
whether or not they are specifically referred to herein. No reference herein to
any specific claim, statute or obligation is intended to limit the scope of
this General Release and, notwithstanding any such reference, this Agreement
shall be effective as a full and final bar to all claims of every kind and
nature, whether known or unknown, suspected or unsuspected, or fixed or
contingent, released in this Agreement.

 

4a.                                Service
as Non-Employee Director.  Kumar is serving as a non-employee member of
the Board of Directors of the Company (the “Board”). If, and only if, Kumar (1) executes and delivers the Agreement on or
before 5:00 p.m. Pacific Standard Time on 

 

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August 14, 2010, (2) performs all of his
obligations and satisfies all conditions precedent under this Agreement and (3) does
not revoke his acceptance of this Agreement, then Kumar: (a) shall be
entitled to receive any cash compensation customarily paid by the
Company to its non-employee Directors for
the period July 1, 2010 to December 31, 2010 and (b) subject to approval by the Board, on
or about October 1, 2010, shall be granted a non-statutory stock option to
purchase 20,000 shares of common stock, of which one-half (1/2) shall be deemed
immediately vested, and one-half (1/2) shall vest on December 31, 2010.
Beginning January 1, 2011, so long as Kumar is serving as a non-employee
Director of the Company, he shall be entitled to receive any cash and equity
compensation customarily paid by the Company to its non-employee Directors.

 

5.                                      Covenant
Not to Sue.  By signing
this Agreement, Kumar affirmatively represents that Kumar has not filed any
claim against the Company or any of its releasees, and will not, to the extent
allowed by applicable law, file any claim in the future.  Kumar will not, however, be prohibited from
filing a claim if necessary to enforce the terms of this Agreement or a claim
regarding vested retirement benefits.  If
any government agency brings any proceedings or conducts any investigation
against the Company, nothing in this Agreement forbids Kumar from cooperating
in such proceedings, but by this Agreement, Kumar waives and agrees to
relinquish any damages or other individual relief that may be awarded as a
result of any such proceedings.

 

6.                                      Representations.  Kumar makes the following covenants,
representations and warranties to the Company and agrees to indemnify and hold
harmless CombiMatrix and its Affiliates from and against any Losses based on,
arising out of the breach of any of the representations, covenants or
warranties contained in this Agreement, including the following:

 

a.           That Kumar has
read and understands each and every provision in this Agreement, including the
information in Exhibit A
that is provided in compliance with the Older Workers Benefits Protection Act,
is signing this Agreement voluntarily, and was advised by the Company of his or
her right to consult with an attorney prior to executing this Agreement.

 

b.           That Kumar has
not heretofore assigned or transferred, or purported to assign or transfer, to
any person, entity, or individual whatsoever, any claim against the Company or
any releasee.

 

c.            That no
promises or representations except those contained in this Agreement and the
Plan have been made to the Kumar in connection with the termination of his or
her employment.

 

d.           That Kumar understands
that this Agreement does not cancel or otherwise diminish his or her
post-employment obligations under the common law, any employment related
agreement with the Company or any policy of the Company (or any predecessor or
affiliate of the Company), including but not limited to, obligations relating
to confidentiality or the use of confidential information of the Company,
disclosure and ownership of inventions, trade secrets and intellectual
property, non-competition and non-solicitation of 

 

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customers, to the extent
such obligations are not inconsistent with the provisions herein.

 

7.                                      Non-Admission.  Kumar understands that the Company is not
offering this Agreement because it believes that the Kumar has any valid legal
claim against the Company.  Every
employee who is offered such an agreement has the right to reject it, and give
up severance benefits, or to sign it, accept the severance benefits and give up
whatever legal claims the employee might believe he or she has against the
Company or any of its Affiliates.

 

8.                                      Non-Disparagement.  In exchange for the benefits and payments
offered by the Company under this Agreement, Kumar agrees not to make any
disparaging statements to any current or former Company employees, customers,
or any media or to any other person concerning the Company or any of its
Affiliates.  The Company agrees to not
make any disparaging statements to Kumar’s potential or future employers,
business partners or customers concerning Kumar. A disparaging statement is any
comment oral or written, or via anonymous communication means such as by use of
anonymous mail or use of Internet message boards which would tend to cause
humiliation or embarrassment or cause the recipient to question the business
condition, integrity, competence or good character of the Company or any of its
Affiliates.

 

Kumar
agrees that Kumar will not act in any manner that might damage the business of
the Company.  Kumar agrees not to
encourage, assist, counsel or cooperate with any attorneys or their clients in
the presentation or prosecution of any disputes, differences, lawsuits,
charges, claims or complaints by any third party against the Company and its
Affiliates, unless under a subpoena or other court order to do so. Kumar agrees
to inform the Company in writing within two (2) business days of receiving
any such subpoena or other court order.

 

9.                                      Property
Return.  No later
than the Termination Date, and sooner if requested by the Company, Kumar will
return to the Company all keys, passes, identifications cards, credit cards,
cell phones, PDAs (e.g. Blackberry) or other items that the Kumar may have in
his or her possession that are the property of the Company, except that Kumar
may retain possession of his laptop computer, his desktop computer, associated
software and one printer.  If at any time
requested by the Company, Kumar will promptly return to the Company and all
work-related documents and records, files, reports, books, data and any other
document in his or her possession.

 

a.               Confidential
Information.  Kumar
acknowledges and reaffirms his legal obligations and agrees to treat as
confidential all proprietary information disclosed to Kumar or developed by
Kumar while in the employ of the Company or its predecessors.  Such information includes, but is not limited
to, all proprietary information concerning the Company with respect to its
proprietary technologies, business, operations, finances, employees or
otherwise.  Kumar agrees that the
provisions of this Agreement are confidential. 
Kumar will not disclose the terms hereof prior to signing, to any
person, except to Kumar’s attorney, spouse, paid tax or financial advisors or
as required by law or legal process. 
Before disclosing this Agreement or its terms to these persons, Kumar
will assure that they are aware of the confidentiality of the Agreement and
assent to be bound by this provision. 
Kumar 

 

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agrees that an unauthorized
disclosure by of the provisions of this Agreement by any person to whom Kumar
disclosed its provisions will be deemed to be an unauthorized disclosure by the
Kumar.  Kumar acknowledges that the
Company regards the confidentiality of this Agreement to be an absolute
condition of its offer, and that any breach of this provision, whether or not
intentional and regardless of whether done in bad faith, will be a material
breach of this Agreement.  Kumar
acknowledges that nothing in this Agreement is intended to supersede the
promises Kumar made in prior agreements with the Company  and
acknowledges that those agreements remain in full force and effect to the
extent such obligations are not inconsistent with the provisions herein.

 

10.                               Consideration
Period and Revocation Period.  Kumar is advised to consult with
an attorney of his choice prior to signing this Agreement. Kumar has forty-five (45) days after the
receipt of this Agreement to consider whether or not to sign it, but may sign
at any time of the Kumar’s choosing during the 45-day period.  This Agreement may be revoked by Kumar at any
time within seven (7) days after the date of signing indicated below. To
revoke this Agreement, Kumar shall provide written notice of revocation to the
Chief Executive Officer or Manager of Human Resources for the Company.  This Agreement shall not be effective, nor
shall any of the severance benefits specified herein be paid, until expiration
of the seven (7) day revocation period (“Effective Date of Agreement”).

 

11.                               Miscellaneous

 

a.               The parties have not relied
upon any representation or statement not contained in this Agreement, written
or oral, concerning this Agreement.

 

b.               This Agreement is intended
to settle and release any and all claims for attorneys’ fees and/or costs.

 

c.  
This Agreement will be governed and construed in accordance with the
laws of the State of Washington applicable to contracts made, executed,
delivered and performed wholly within the State of Washington, without regard
to any applicable conflicts of law. 
Kumar, hereby (a) submits to the jurisdiction of any State and
Federal courts sitting in the Western District of the State of Washington with
respect to matters arising out of or relating hereto, (b) agrees that all
claims with respect to such matters may be heard and determined in an action or
proceeding in such State or Federal court, (c) waives the defense of an
inconvenient forum, and (d) agrees that a final judgment in any such
action or proceeding will be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.

 

d.               Kumar agrees that, except as
provided by this Agreement, he is not entitled to any income, payments,
salaries, or other financial benefits from CombiMatrix.

 

e.               No waiver of any of the
terms of this Agreement shall be valid unless in writing and signed by all
parties to this Agreement.

 

f.                 This Agreement shall not be
modified, altered, or discharged except by a written agreement signed by each
of the parties to the Agreement.

 

5

 

g.              In the event that one or
more of the provisions of this Agreement shall for any reason be held to be
illegal or unenforceable, this Agreement shall be revised only to the extent
necessary to make such provision(s) legal and enforceable.

 

h.              The parties agree that this
Agreement may be used as evidence in a subsequent proceeding in which any of
the parties allege a breach of this Agreement or as a complete defense to any
lawsuit brought by either party.  Other
than this exception, the parties agree that this Agreement will not be
introduced as evidence in any proceeding or in any lawsuit.

 

i.                 Except as otherwise set
forth in this Agreement, this Agreement constitutes and contains the entire
agreement and understanding concerning termination of Kumar’s employment and
the other subject matters addressed herein between the parties, and supersedes
and replaces prior negotiations and all prior agreements proposed or otherwise,
whether written or oral, concerning the subject matter hereof.

 

j.                 This Agreement may be
executed in multiple counterparts each of which shall be deemed an original and
all of which shall constitute one and the same instrument.  Facsimile signatures shall be given the same
force and effect as original signatures.

 

The parties acknowledge that they have read the foregoing Agreement,
understand its contents, and accept and agree to the provisions it contains and
hereby execute it voluntarily and knowingly and with full understanding of its
consequences.

 

 

	
  EMPLOYEE:

  	
   

  	
  COMBIMATRIX
  CORPORATION

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/
  AMIT KUMAR, PH.D.

  	
   

  	
  By:

  	
   

  	
  /s/
  SCOTT R. BURELL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Amit
  Kumar, Ph.D.

  	
   

  	
  Name:

  	
   

  	
  Scott
  R.Burell

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  President
  and CEO

  	
   

  	
  Title:

  	
   

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
  August 8,
  2010

  	
   

  	
  Dated:

  	
   

  	
  August 8,
  2010

  

 

6

 

EXHIBIT A

(Required only for employees over
age 40)

 

CombiMatrix Corporation (“CombiMatrix”)
is required to provide this information to employees over age 40 pursuant to
the Older Workers Benefit Protection Act, 29 U.S.C. § 626(f).

 

Covered Employees and Eligibility Requirements

 

The eligibility requirements for being included in
this severance program (the “Program”) are that you were notified of your lay
off in April 2010.

 

Time Limits Application to Program

 

All eligible employees who wish to participate in
the Program must sign the Separation Agreement and Release of Claims (the “Agreement”)
and return it to Brenda Laird no later than 5:00 p.m. on August 14, 2010. 
Once an employee has signed the Agreement and returned it to
CombiMatrix, the employee has seven days to revoke the Agreement, after which
it will be considered effective if not revoked.

 

Individuals Eligible and Ineligible for the Program

 

The following is a list of the departments and ages
of all incumbent employees at CombiMatrix who are eligible and ineligible for
the Program as of April 23, 2010.

 

 

	
  Department

  	
   

  	
  Not Eligible

  	
   

  	
  Eligible (Laid-off)

  
	
  100
  – Executive

  	
   

  	
   

  	
   

  	
  45,
  46, 58, 63

  
	
  220
  – Sales & Marketing

  	
   

  	
   

  	
   

  	
  33,
  48

  
	
  232
  – Production

  	
   

  	
   

  	
   

  	
  28,
  44, 48

  
	
  234
  – Biology & Chemistry

  	
   

  	
   

  	
   

  	
  25,
  28, 33, 36, 39, 42, 42, 43, 57

  
	
  236
  – Engineering

  	
   

  	
   

  	
   

  	
  35,
  40, 51, 54

  
	
  250
  – Software Development

  	
   

  	
   

  	
   

  	
  46,
  46, 50

  
	
  400
  – Finance/Operations

  	
   

  	
   

  	
   

  	
  32,
  39, 45, 52, 53, 58, 62

  
	
  410
  – IT

  	
   

  	
   

  	
   

  	
  34

  
	
  500
  – Legal

  	
   

  	
   

  	
   

  	
  51,
  53

  

 

7Exhibit
10.2

 

COMBIMATRIX CORPORATION

RESTATED EXECUTIVE CHANGE OF CONTROL SEVERANCE PLAN

 

CombiMatrix Corporation, a Delaware corporation (the
“Company”) has adopted this Executive
Change of Control Severance Plan (the “Plan”),
effective as of November 10, 2009 and restated on August 10, 2010,
for the benefit of certain key employees of the Participating Company Group.

 

The Company considers it essential to the best
interests of its stockholders to take reasonable steps to retain its key
management personnel.  Further, the Board of Directors of the Company (the
“Board”) recognizes that the uncertainty
and questions which might arise among management in the context of a Change of
Control of the Company could result in the departure or distraction of management
personnel to the detriment of the Company and its stockholders.

 

The Board has determined, therefore, that
appropriate steps should be taken to reinforce and encourage the continued
attention and dedication of its members of management of the Company to their
assigned duties without distraction in the face of potentially disturbing
circumstances arising from any possible Change of Control of the Company.

 

The Company hereby adopts this Plan for the benefit
of its employees who are eligible as provided in the Plan.

 

Section 1.              Definitions.

 

1.1             “Accounting Firm” means the accounting firm
engaged by the Company for general audit purposes immediately prior to the
Change of Control Date or, if such firm is unable or unwilling to perform the
calculations required under this Plan, such other national accounting firm as
shall be designated by agreement between the Participant to whom
Section 4.1 applies and the Company.

 

1.2             “Base Salary” means the Participant’s annual
base salary as in effect during the last regularly scheduled payroll period
immediately preceding such Participant’s Date of Termination.  Base Salary
does not include any bonuses, commissions, fringe benefits, overtime, car
allowances, other irregular payments or any other compensation except base salary.

 

1.3             “Board” means the Board of Directors of the
Company.

 

1.4             “Cause” means a (i) felony conviction;
or (ii) willful disclosure of material trade secrets or other material
confidential information related to the business of a Participating Company; or
(iii) willful and continued failure to substantially perform the same
duties as in effect prior to the Change of Control for the Participating
Company (other than any such failure resulting from physical or mental
incapacity or any actual or anticipated failure resulting from a resignation
for Good Reason) after a written demand for substantial performance is
delivered by the Company, which demand identifies the specific actions which
the Company believes constitute willful and continued failure substantially to
perform duties, and which performance is not substantially corrected within ten
(10) days of receipt of such demand.  For purposes of the previous
sentence, no act or failure to act shall be deemed “willful” unless done, or
omitted to be done, with willful malfeasance or gross negligence and without
reasonable belief that action or omission was not materially adverse to the
best interest of the Participating Company Group.

 

1.5             “Change of Control” means a Change of
Control of the Company of a nature that would be required to be reported in
response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under
the Exchange Act, whether or not the Company is then subject to such reporting
requirement; provided, however, that anything in this Plan to the contrary
notwithstanding, a Change of Control shall be deemed to have occurred if:

 

(a)       any individual,
partnership, firm, corporation, association, trust, unincorporated organization
or other entity or person, or any syndicate or group deemed to be a person
under Section 14(d)(2) of the Exchange Act, is or becomes the “beneficial
owner” (as defined in Rule 13d-3 of the General Rules and Regulations
under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the
combined voting power of the Company’s then outstanding securities entitled to
vote in the election of directors of the Company;

 

1

 

(b)       during any period of two
(2) consecutive years (not including any period prior to the Effective
Date), individuals who at the beginning of such period constituted the Board
and any new directors, whose election by the Board or nomination for election
by the Company’s stockholders was approved by a vote of at least a majority of
the directors then still in office who either were directors at the beginning
of the period or whose election or nomination for election was previously so
approved (the “Incumbent  Directors”),
cease for any reason to constitute a majority thereof;

 

(c)       there occurs a
reorganization, merger, consolidation or other corporate transaction involving
the Company (a “Transaction”),
in each case with respect to which the stockholders of the Company immediately
prior to such Transaction do not, immediately after the Transaction, own
securities representing more than 50% of the combined voting power of the
Company, a parent of the Company or other corporation resulting from such
Transaction (counting, for this purpose, only those securities held by the Company’s
stockholders immediately after the Transaction that were received in exchange
for, or represent their continuing ownership of, securities of the Company held
by them immediately prior to the Transaction);

 

(d)       all or substantially all
of the assets of the Company are sold, liquidated or distributed; or

 

(e)       there is a “Change of
Control” or a “change in the effective control” of the Company within the
meaning of Section 280G of the Code and the Regulations.

 

1.6             “Change of Control Date” means the date on
which the Change of Control occurs.  Notwithstanding the first sentence of
this definition, if a Participant’s employment with the Participating Company
Group terminates prior to the Change of Control Date and it is reasonably
demonstrated that such termination (a) was at the request of the third
party who has taken steps reasonably calculated to effect the Change of Control
or (b) otherwise arose in connection with or in anticipation of the Change
of Control, then “Change of Control Date” means the date immediately prior to
the date of such Participant’s termination of employment.

 

1.7             “Code” means the Internal Revenue Code of
1986, as amended, and any successor provisions thereto.

 

1.8             “Common Stock” means the common stock of the
Company.

 

1.9             “Company” means CombiMatrix Corporation, a
Delaware Corporation, and, except in determining under Section 1.5 hereof
whether or not any Change of Control has occurred, shall include any successor
to its business and/or assets.

 

1.10           “Date of Termination” means the date of a
Participant’s termination of employment with the Participating Company Group as
determined in accordance with Section 3.6.

 

1.11           “Disability” means a Participant’s
(a) incapacity due to physical or mental illness which causes such
Participant’s absence from the full-time performance of his or her duties with
the Participating Company Group for six (6) consecutive months and
(b) such Participant’s failure to return to full-time performance of his
or her duties for the Participating Company Group within thirty (30) days after
written Notice of Termination due to Disability is given to a
Participant.  Any question as to the existence of Disability upon which a
Participant and the Participating Company Group cannot agree shall be
determined by a qualified independent physician selected by the Participant
(or, if such Participant is not able to select a physician, such selection
shall be made by any adult member of the Participant’s immediate family), and
approved by the Participating Company Group.  The determination of such
physician made in writing to the Participating Company Group shall be final and
conclusive for all purposes of this Plan

 

1.12           “Effective Date” means November 10,
2009.

 

2

 

1.13           “Equity Awards” means options, stock
appreciation rights, stock purchase rights, restricted stock, stock bonuses and
other awards which consist of, or relate to, equity securities of the Company,
in each case which have been granted to a Participant under the Equity
Plans.  For purposes of this Plan, Equity Awards shall also include any
shares of common stock or other securities issued pursuant to the terms of an
Equity Award.

 

1.14           “Equity Plans” means the CombiMatrix
Corporation 2006 Stock Incentive Plan, and any other equity-based incentive
plan or arrangement adopted or assumed by the Company, and any future
equity-based incentive plan or arrangement adopted or assumed by the Company,
but shall not include any Employee Stock Purchase Plan or any other plan intended
to be qualified under Section 423 of the Code.

 

1.15           “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended.

 

1.16           “Exchange Act” means the Securities Exchange
Act of 1934, as amended, and any successor provisions thereto.

 

1.17           “Good Reason” means a Participant’s
resignation of employment during the Term as a result of any of the following:

 

(a)       A meaningful and
detrimental alteration in such Participant’s position, titles, or the nature or
status of responsibilities (including reporting responsibilities) from those in
effect immediately prior to the Change of Control Date;

 

(b)       A reduction by the
Participating Company Group in such Participant’s Base Salary as in effect
immediately prior to the Change of Control Date or as the same may be increased
from time to time thereafter;

 

(c)       The relocation of the
office of the Participating Company where such Participant is primarily
employed immediately prior to the Change of Control Date (the “COC  Location”)
to a location which is more than twenty-five (25) miles away from the COC
Location or the Participating Company’s requiring such Participant to be based
more than twenty-five (25) miles away from the COC Location (except for
required travel on the Participating Company’s business to an extent
substantially consistent with the Participant’s customary business travel
obligations in the ordinary course of business prior to the Change of Control
Date);

 

(d)       The failure by the
Participating Company Group to pay or provide to such Participant with any
material item of compensation or benefits promptly when due;

 

(e)       The failure of the
Participating Company Group to obtain an agreement from any successor to assume
and agree to perform the obligations of this Plan, as contemplated in Section 9.1
hereof or, if the business for which such Participant’s services are
principally performed is sold at any time after a Change of Control, the
failure of the Participating Company Group to obtain such an agreement from the
purchaser of such business;

 

(f)        A material breach by the
Participating Company Group of the provisions of this Plan;

 

provided, however, that an event described above in
clause (a), (b), (d) or (f) shall not constitute Good Reason unless
it is communicated by such Participant to the Company in writing and is not
corrected by the Company in a manner which is reasonably satisfactory to such
Participant (including full retroactive correction with respect to any monetary
matter) within 10 days of the Company’s receipt of such written notice.

 

1.18           RESERVED

 

1.19           RESERVED

 

3

 

1.20           “Involuntary Termination” means (i) a
Participant’s involuntary termination of employment with the Participating
Company Group during the Term other than for death, Disability or Cause or
(ii) a Participant’s resignation of employment with the Participating
Company Group during the Term for Good Reason.

 

1.21           “Notice of Termination” means the notice
specified in Section 3.6.

 

1.22           “Participant” means the Chief Executive
Officer of the Company on the change of Control Date, so long as he is not a
party to any other retention and/or severance agreement with the Participating
Company Group that is not otherwise waived in accordance with section 3.0, and
each senior management-level employee of a Participating Company Group that is
not otherwise waived in accordance with Section 3.9, and (ii) on the
Change of Control Date, was a Section 16 Officer.

 

1.23           “Participating Company Group” means the
Company and any present or future United States parent and/or United States
direct or indirect subsidiary corporations of the Company that have been
designated by the Board as a “Participating Company” for purposes of this Plan
(all of which along with the Company being individually referred to as a “Participating Company” and collectively
referred to as the “Participating Company
Group”).  For purposes of this
Plan, a parent or subsidiary corporation shall be defined in Sections 424(e) and
424(f) of the Code and shall include entities related to the Company by
similar ownership levels that are not corporations.

 

1.24           “Plan” means this Restated CombiMatrix
Corporation Executive Change of Control Severance Plan.

 

1.25            “Reference Salary” means the greater of
(a) the annual rate of a Participant’s Base Salary from the Participating
Company Group in effect immediately prior to the date of such Participant’s
Involuntary Termination or (b) the annual rate of a Participant’s Base
Salary from the Participating Company Group in effect at any point during the
three-year period ending on the Change of Control Date.

 

1.26           “Regulations” means the proposed, temporary
and final regulations under Section 280G of the Code or any successor
provision thereto.

 

1.27           “Section 16 Officer” means an executive
of the Company who has been designated by the Company or is otherwise required
to report under Rule 16(a) of the Exchange Act.

 

1.28           “Severance Benefits” means those benefits
provided to a Participant under this Plan on account of a Change of Control, as
determined in accordance with Section 3.2, 3.3 and 3.4 after the execution
of a release of claims as required by Section 10.

 

1.29           “Severance Multiple” means one-half (0.5).

 

1.30            “Term” means the period of a Participant’s
employment that commences on the Change of Control Date and shall continue
until the second anniversary of the Change of Control Date.

 

Section 2.               Employment
During the Term.  During the Term,
the following terms and conditions shall apply to a Participant’s employment
with the Participating Company Group:

 

2.1             Titles; Reporting and Duties.  A Participant’s position, title,
nature and status of responsibilities and reporting obligations shall be no
less favorable than those that such Participant enjoyed immediately prior to
the Change of Control Date.

 

2.2             Base Salary.  A Participant’s Base Salary may not be
reduced, and such Participant’s Base Salary shall be periodically reviewed and
increased in the manner commensurate with increases awarded to other similarly
situated employees of the Participating Company Group.

 

2.3             Incentive Compensation.  A Participant shall be eligible to
participate in each long-term incentive plan or arrangement established by the
Participating Company Group for its employees at such Participant’s level of seniority
in accordance with the terms and provisions of such plan or arrangement and at
a level consistent with the Participating Company Group’s practices applicable
to each Participant prior to the Change of Control Date.

 

4

 

2.4             Benefits.  A Participant shall be eligible to
participate in all retirement, welfare and fringe benefit plans and
arrangements that the Participating Company Group provides to its employees in
accordance with the terms of such plans and arrangements, which shall be no
less favorable to such Participant, in the aggregate, than the terms and
provisions available to other similarly situated employees of the Participating
Company Group.

 

2.5             Location.  A Participant shall continue to be employed
at a business location in the metropolitan area in which such Participant was
employed prior to the Change of Control Date and the amount of time that such
Participant is required to travel for business purposes will not be increased
in any significant respect from the amount of business travel required of such
Participant prior to the Change of Control Date.

 

Section 3.               Severance
Benefits.  In the event of a
Participant’s Involuntary Termination, the terminated Participant shall be
entitled to the following:

 

3.1             Payment of Wages and Accrued Vacation.  The Company shall pay to such
terminated Participant within five (5) days of the date of such
Involuntary Termination the full amount of any earned but unpaid Base Salary
through the Date of Termination at the rate in effect at the time of the Notice
of Termination, plus a cash payment (calculated on the basis of such
Participant’s Reference Salary) for all unused vacation time which such
Participant may have accrued as of the Date of Termination.

 

3.2             Payment of Cash Severance.  Subject to execution of a release of
claims as described in Section 10 below, the Company shall pay to such
terminated Participant an amount equal to the product of (a) such
terminated Participant’s Reference Salary, multiplied by (b) such
terminated Participant’s Severance Multiple.  This severance payment shall
be in lieu of any other cash severance payments which such terminated
Participant is entitled to receive under any other notice or severance pay
and/or retention plan or arrangement sponsored by any Participating
Company.  Except as otherwise provided in Sections 3.10 and 4.1 below,
these cash payments will be made in a lump sum on the day following the Release
Effective Date.

 

3.3             Vesting and Exercise of Equity Awards.  Subject to execution of a release of
claims as described in Section 10 below, and notwithstanding anything to
the contrary contained in an applicable Equity Award agreement, all Equity
Awards held by a terminated Participant shall vest in full and, as applicable,
shall become fully exercisable, as of the Date of Termination, except as
otherwise provided in Sections 3.10 and 4.1 below.  Notwithstanding
anything in this Plan to the contrary, in no event shall the vesting and
exercisability provisions applicable to a terminated Participant under the
terms of an Equity Award be less favorable to such Participant than the terms
and provisions of such awards in effect on the Change of Control Date.

 

3.4             Benefits Continuation.  Subject to execution of a release of
claims as described in Section 10 below, and subject to the terminated
Participant and/or his or her eligible dependents electing continued medical
insurance coverage in accordance with the applicable provisions of state and
federal law (commonly referred to as “COBRA”),
the Company shall pay the terminated Participant’s COBRA premiums for the
duration of such COBRA coverage, or for the period of years equal to the
Participant’s Severance Multiple, whichever is less.  If the terminated
Participant’s medical coverage immediately prior to the Date of Termination
included the terminated Participant’s dependents, the Company paid COBRA
premiums shall include the premiums necessary for such dependents as have
elected COBRA coverage.  Notwithstanding the above, in the event the
terminated Participant becomes covered under another employer’s group health
plan (other than a plan which imposes a preexisting condition exclusion unless
the preexisting condition exclusion does not apply) or otherwise ceases to be
eligible for COBRA during the period provided in this Section 3.4, the
Company shall cease payment of the COBRA premiums.

 

3.5             Other Benefit Plans.  A terminated Participant’s participation
and rights in other benefit plans as may be provided by the Participating Company
Group at the time of his/her Involuntary Termination shall be governed solely
by the terms and conditions of such plans, if any.

 

5

 

3.6             Date and Notice of Termination.  Any termination of a Participant’s
employment by a Participating Company or by such Participant during the Term
shall be communicated by a notice of termination to the other party hereto (the
“Notice of Termination”). 
The Notice of Termination shall indicate the specific termination provision in
this Plan relied upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Participant’s
employment under the provision so indicated.  The date of a Participant’s
termination of employment with the Participating Company Group shall be
determined as follows:  (i) if employment is terminated by the
Participating Company Group in an Involuntary Termination, five (5) days
after the date the Notice of Termination is provided by the Participating
Company Group, (ii) if employment is terminated by the Participating
Company Group for Cause, the later of the date specified in the Notice of
Termination or ten (10) days following the date such notice is received by
the Participant, and (iii) if the basis of a Participant’s Involuntary
Termination is such Participant’s resignation for Good Reason, the Date of
Termination shall be ten (10) days after the date such Participant’s Notice
of Termination is received by the Company.

 

3.7             No Mitigation or Offset.  A terminated Participant shall not be
required to mitigate the amount of any payment provided for in this Plan by
seeking other employment or otherwise, nor shall the amount of any payment or
benefit provided for in this Plan be reduced (except as set forth in
Section 3.4 above) by any compensation earned by such a terminated
Participant as the result of employment by another employer or by retirement
benefits paid by the Participating Company Group or another employer after the
Date of Termination or otherwise.

 

3.8             Withholding.  Amounts paid to a Participant hereunder
shall be subject to all applicable federal, state and local withholding taxes.

 

3.9             Waiver of Any Other Participating Company
Retention/Severance Agreement.  A terminated Participant may elect, in his
or her sole discretion, to waive each and every prior retention and/or
severance agreement entered into between a Participating Company and such
terminated Participant (the “Other Severance
Benefits”) in order to participate and receive the Severance
Benefits provided under this Plan. Such waiver shall be in writing in such form
as may reasonably be specified by the Plan Administrator and shall be filed
with the Company in accordance with such rules and procedures as may be
reasonably established by the Plan Administrator.  The Participant may elect to waive the Other
Severance Benefits at any time prior to receiving a payment under such
benefits.

 

3.10           Application of Section 409A.  Notwithstanding any other provision of
this Plan, to the extent that (i) one or more of the payments or benefits
received or to be received by a Participant pursuant to this Plan would
constitute deferred compensation subject to the requirements of Code
Section 409A, and (ii) the Participant is a “specified employee”
within the meaning of Code Section 409A, then such payment or benefit (or
portion thereof) will be delayed until the earliest date following the
Participant’s “separation from service” with the Participating Company Group
within the meaning of Code Section 409A on which the Company can provide
such payment or benefit to the Participant without the Participant’s incurrence
of any additional tax or interest pursuant to Code Section 409A, with all
remaining payments or benefits due thereafter occurring in accordance with the
original schedule.  In addition, this Plan and the payments and benefits
to be provided hereunder are intended to comply in all respects with the
applicable provisions of Code Section 409A.

 

Section 4.               Limitation
on Payment of Benefits.

 

4.1             Parachute Payments.  In the event that it is determined by the
Accounting Firm that any amount payable to a Participant under this Plan, alone
or when aggregated with any other amount payable or benefit provided to such
Participant pursuant to any other plan or arrangement of the Participating
Company Group, would constitute an “excess parachute payment” within the
meaning of Section 280G of the Code, then notwithstanding the other
provisions of this Plan, the amounts payable will not exceed the amount which
produces the greatest after-tax benefit to the Participant.  For purposes
of the foregoing, the greatest after-tax benefit will be determined within
thirty (30) days of the occurrence of the event giving rise to such payment to
the Participant.  The Company shall request a determination in writing by
the Accounting Firm of whether the full amount of the payments to the
Participant, or a lesser amount, will result in the greatest after-tax benefit
to the Participant.  As soon as practicable thereafter, the Accounting
Firm shall determine and report to the Company and the Participant the amount
of such payments and benefits which would produce the greatest after-tax benefit
to the Participant.  For the purposes of such determination, the
Accounting Firm may rely on reasonable, good faith interpretations concerning
the application of Sections 280G and 4999 of the Code.

 

6

 

The Company and the Participant shall furnish to the
Accounting Firm such information and documents as the Accounting Firm may
reasonably request in order to make their required determination.  The
Company shall bear all fees and expenses the Accounting Firm may reasonably
charge in connection with its services contemplated by this Section.  If a
reduced amount of the payments will give rise to the greatest after tax
benefit, the reduction in the payments and benefits shall occur in the
following order unless the Participant elects in writing a different order
prior to the last day of the year preceding the date on which the event that
triggers the payment occurs: (i) reduction of cash payments;
(ii) cancellation of accelerated vesting of equity awards other than stock
options; (iii) cancellation of accelerated vesting of stock options; and
(iv) reduction of other benefits paid to the Participant.  In the
event that acceleration of compensation from the Participant’s equity awards is
to be reduced, such acceleration of vesting shall be canceled in the reverse
order of the date of grant unless the Participant elects in writing a different
order for cancellation prior to the last day of the year preceding the date on
which the event that triggers the payment occurs.

 

4.2             Non-Duplication of Benefits.  Notwithstanding any other provision in
the Plan to the contrary, the benefits provided hereunder shall be in lieu of
any other severance plan and/or retention agreement benefits provided by any
Participating Company and the Severance Benefits and other benefits provided
under this Plan shall be reduced by any severance paid or provided to a
Participant by a Participating Company under any other plan or arrangement.

 

4.3             Indebtedness of Participant.  If a Participant is indebted to the
Participating Company Group at his or her Date of Termination, the Company
reserves the right to offset any benefits under this Plan by the amount of such
indebtedness.

 

Section 5.               Plan
Administration, Amendment and Termination.

 

5.1             Administration of the Plan.  The Plan shall be administered by the
Plan Administrator.

 

5.2             Composition of Plan Administrator.

 

(a)       Prior to the Change of
Control Date, the “Plan Administrator”
shall be the Compensation Committee of the Board.

 

(b)       After the Change of
Control Date, except as otherwise provided in Section 5.2(c) below,
the “Plan Administrator” shall be
composed of those individuals at the Company who held the titles of Chief
Executive Officer and Chief Financial Officer, or titles functionally equivalent
thereto immediately prior to the Change of Control Date, regardless of whether
such members’ job titles have changed or they have left the Company.  The
designation of an individual as holding such title or position shall constitute
automatic appointment to the Plan Administrator.  The members of the Plan Administrator may
appoint additional members to the Plan Administrator

 

(c)       After the Change of
Control Date, in the event that a member of the Plan Administrator is unwilling
or unable to continue to serve as a member of the Plan Administrator, the
members of the Plan Administrator shall, by majority vote, elect sufficient
additional members, so that they replace all departing members or at least have
a minimum of two members.  Such additional members should be persons who
were employed by the Company prior to the Change of Control to the extent
reasonably possible.

 

5.3             The members of the Plan Administrator shall not
receive compensation for their services on the Plan Administrator.  The
Participating Company Group shall indemnify and hold harmless members of the
Plan Administrator from and against all liabilities, claims, demands and costs,
including reasonable attorneys’ fees and expenses of legal proceedings,
incurred by the members of the Plan Administrator which arise as a result of
membership on the Plan Administrator.

 

5.4             Powers and Responsibilities.  The Plan Administrator shall have all
powers necessary to enable it properly to carry out its duties with respect to
the complete control of the administration of the Plan.

 

7

 

Not in limitation, but in amplification of the foregoing,
the Plan Administrator shall have the power and authority in its discretion to:

 

(a)       Determine which employees
of the Participating Company Group shall participate under the Plan and their
level of participation;

 

(b)       Construe the Plan to
determine all questions that shall arise as to interpretations of the Plan’s
provisions, including determination of which individuals are eligible for
Severance Benefits, the amount of Severance Benefits to which any employee may
be entitled, and all other matters pertaining to the Plan;

 

(c)       Adopt amendments to the
Plan document which are deemed necessary or desirable bring these documents into
compliance with all applicable laws and regulations, including but not limited
to Code Section 409A and the guidance thereunder; and

 

(d)       Establish procedures for
determining who the members of the Plan Administrator shall be after a Change
of Control and/or for electing additional members of the Plan Administrator
pursuant to Section 5.2.

 

5.5             Decisions of the Plan Administrator.  Decisions of the Plan Administrator
made in good faith upon any matter within the scope of its authority shall be
final, conclusive and binding upon all persons, including Participants and
their legal representatives.  Any discretion granted to the Plan
Administrator shall be exercised in accordance with such rules and
policies as may be established by the Plan Administrator from time to time.

 

5.6             Plan Amendment.  The Plan Administrator may amend or
terminate the Plan and the benefits provided hereunder at any time prior to the
Change in Control Date.  After the Change
in Control Date, the Plan may not be amended or terminated, without the prior
written consent of each Participant, with respect to that Participant’s
participation under the Plan.

 

5.7             Plan Termination.  This Plan shall terminate automatically
five (5) years from the Effective Date unless extended by the Company or
unless a Change of Control shall have occurred prior thereto, in which case the
Plan shall terminate following the later of the date which is at least
twenty-four (24) months after the occurrence of a Change of Control or the
payment of all Severance Benefits due under the Plan.

 

Section 6.               Claims
for Benefits.  Any person who
believes he or she is entitled to benefits under this Plan may submit a claim
for benefits.  The claim must be in writing and should state the claimant’s
reasons for claiming these benefits.  The claims should be sent to the
Plan Administrator.  If the claim is denied, in whole or in part, written
notice of the denial will be provided within ninety (90) days of initial
receipt of the claim.  Such notice will include an explanation of the
factors on which the denial is based and what, if any, additional information
is needed to support the claim.  Further review of the claim may be
obtained by filing a written request for review.  An individual whose
claim for benefits is denied may file a request for review with the Plan
Administrator within sixty (60) days.  After receiving a request for
review, the Plan Administrator will render a final decision within sixty (60)
days, unless circumstances require an extension of an additional sixty (60)
days for the review.  In this case, the Plan Administrator will notify the
claimant in writing of the need for an extension.  The Plan Administrator’s
decision will be in writing, setting forth the specific reasons for the
decision, as well as specific references to the Plan provisions upon which the
decision is based.

 

Section 7.               Legal
Fees and Expenses.  The Company shall
pay or reimburse a Participant for all costs and expenses (including, without
limitation, court costs and reasonable legal fees and expenses which reflect
common practice with respect to the matters involved) incurred by such
Participant as a result of any bona fide claim, action or proceeding
(a)  contesting, disputing or enforcing any right, benefits or
obligations under this Plan or (b) arising out of or challenging the
validity, advisability or enforceability of this Plan or any provision
thereof.  The payments or reimbursements provided for herein shall be paid
by the Participating Company Group promptly (but in no event more than five
(5) business days) following receipt of a written request for payment or
reimbursement, as the case may be.  It is intended that each installment
of payments under this Section 7 is a separate “payment” for purposes of
Section 409A.

 

8

 

For
the avoidance of doubt, it is intended that the payments under this
Section 7 satisfy, to the greatest extent possible, the exemptions from
the application of Code Section 409A provided under Treasury Regulation
1.409A-1(b)(11).

 

Section 8.               Miscellaneous.

 

8.1             No Contract of Employment.  Nothing in this Plan shall be
construed as giving any Participant any right to be retained in the employ of
the Participating Company Group or shall affect the terms and conditions of a
Participant’s employment with the Participating Company Group prior to the
commencement of the Term.

 

8.2             ERISA Plan.  This Plan is intended to be (a) an
employee welfare plan as defined in Section 3(1) of ERISA and
(b) a “top-hat” plan maintained for the benefit of a select group of
management or highly compensated employees of the Participating Company Group.

 

8.3             Source of Payments.  All payments provided under this Plan,
other than payments made pursuant to any other Participating Company Group employee
benefit plan which provides otherwise, shall be paid in cash from the general
funds of the Participating Company Group, and no special or separate fund shall
be established, and no other segregation of assets made, to assure
payment.  To the extent that any person acquires a right to receive
payments from the Participating Company Group hereunder, such right shall be no
greater than the right of an unsecured creditor of the Participating Company
Group.

 

8.4             Notice.  For the purpose of this Plan, notices and
all other communications provided for in this Plan shall be in writing and
shall be deemed to have been duly given when delivered or mailed by overnight
courier or United States registered mail, return receipt requested, postage
prepaid, addressed to the Plan Administrator, CombiMatrix Corporation, 6500
Harbour Heights Pkwy., Suite #303, Mukilteo, WA 98275, with a copy to the
Chief Financial Officer of the Company, or to a Participant at the address set
forth in the Participating Company Group’s payroll records or to such other
address as either party may have furnished to the other in writing in
accordance herewith, except that notice of change of address shall be effective
only upon receipt.

 

8.5             Nonalienation of Benefits.  No benefit under the Plan may be
assigned, transferred, pledged as security for indebtedness or otherwise
encumbered by any Participant or subject to any legal process for the payment
of any claim against a Participant.

 

8.6             Validity.  The invalidity or unenforceability of any
provision of this Plan shall not affect the validity or enforceability of any
other provision of this Plan, which shall remain in full force and effect.

 

8.7             Headings.  The headings contained in this Plan are
intended solely for convenience of reference and shall not affect the rights of
the parties to this Plan.

 

8.8             Governing Law.  This Plan shall be governed by and
construed in accordance with the laws of the State of Washington to the extent
such laws are not preempted by ERISA.

 

Section 9.               Successors;
Binding Agreement.

 

9.1             Assumption by Successor.  The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business or assets of the Company expressly
to assume and to agree to perform the obligations under this Plan in the same
manner and to the same extent that the Company would be required to perform it
if no such succession had taken place; provided, however, that no such
assumption shall relieve the Company of its obligations hereunder.  As
used in this Section 9, the “Company”
shall include the Company as defined in Section 1.9 and any successor to
its business and/or assets which assumes and agrees to perform the obligations
arising under this Plan by operation of law or otherwise.

 

9.2             Enforceability; Beneficiaries.  This Plan shall be binding upon and
inure to the benefit of each Participant (and such Participant’s personal
representatives and heirs) and the Company and any organization which succeeds
to substantially all of the business or assets of the Company, whether by means
of merger, consolidation, acquisition of all or substantially all of the assets
of the Company or otherwise, including, without limitation, as a result of a
Change of Control or by operation of law.

 

9

 

This Plan shall inure to the benefit of and be
enforceable by each Participant’ personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. 
If a Participant should die while any amount would still be payable hereunder
if such Participant had continued to live, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Plan to
such Participant’s devisee, legatee or other designee or, if there is no such
designee, to such Participant’s estate.

 

Section 10.             Release
of Claims.  As a condition to
the receipt of Severance Benefits, each Participant must execute and allow to
become effective a release of claims in a form satisfactory to the Plan
Administrator , with such execution occurring not prior to the Date of
Termination and not later than 45 days after the Participant’s receipt
thereof.  The date on which such release becomes effective is the “Release Effective Date”.  No Severance
Benefits shall be paid to a Participant under this Plan prior to the Release
Effective Date.  The form of release shall not cause the Participant to
waive or release any claims or rights a Participant may have to be indemnified
by the Company under applicable law or the terms of any then-effective
indemnification agreement or obligation. 
The form of the release shall follow the example attached as Exhibits A
and B, updated as necessary for any changes in the law.

 

10

 

EXHIBIT A

 

RELEASE AGREEMENT

(For Employees Age 40 or Older)

 

I understand and agree
completely to the terms set forth in the CombiMatrix Corporation Restated
Executive Change of Control Severance Plan (the “Plan”).  Certain capitalized terms used in this
Release Agreement are defined in the Plan.

 

I hereby confirm my
obligations under the Company’s proprietary information and inventions
agreement.

 

[I acknowledge that I have
read and understand Section 1542 of the California Civil Code which reads
as follows: “A general release does not extend to claims
which the creditor does not know or suspect to exist in his favor at the time
of executing the release, which if known by him must have materially affected his
settlement with the debtor.” 
I hereby expressly waive and relinquish all rights and benefits under
that section and any law of any jurisdiction of similar effect with respect to
my release of any claims I may have against the Company.]

 

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

 

I acknowledge that I am
knowingly and voluntarily waiving and releasing any rights I may have under
ADEA.  I also acknowledge that the
consideration given under the Plan for the waiver and release in the preceding
paragraph hereof is in addition to anything of value to which I was already
entitled.  I further acknowledge that I
have been advised by this writing, as required by the ADEA, that:  (A) my waiver and release do not apply
to any rights or claims that may arise on or after the date I execute this
Release Agreement; (B) I have the right to consult with an attorney prior
to executing this Release Agreement; (C) I have twenty-one (21) days to
consider this Release Agreement (although I may choose to voluntarily execute
it earlier); (D) I have seven (7) days following my execution of this
Release Agreement to revoke it; and (E) this Release Agreement shall not
be effective until the date upon which the revocation period has expired, which
shall be the eighth (8th) day after I
execute this Release Agreement.

 

	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  

 

11

 

EXHIBIT B

 

RELEASE AGREEMENT

(For Employees Under Age 40)

 

I understand and agree
completely to the terms set forth in the CombiMatrix Corporation Restated
Executive Change of Control Severance Plan (the “Plan”).  Certain capitalized terms used in this
Release Agreement are defined in the Plan.

 

I hereby confirm my
obligations under the Company’s proprietary information and inventions
agreement.

 

[I acknowledge that I have
read and understand Section 1542 of the California Civil Code which reads
as follows: “A general release does not extend to claims
which the creditor does not know or suspect to exist in his favor at the time
of executing the release, which if known by him must have materially affected
his settlement with the debtor.” 
I hereby expressly waive and relinquish all rights and benefits under
that section and any law of any jurisdiction of similar effect with respect to
my release of any claims I may have against the Company.]

 

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

 

I understand that I have
seven (7) days to consider this Release Agreement (although I may
voluntarily execute it earlier).

 

	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  

 

12

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