Document:

rna-ex102_101.htm

 

Exhibit 10.2

GENERAL RELEASE OF CLAIMS

THIS GENERAL RELEASE OF CLAIMS (this “Release”) is entered into by and between Avidity Biosciences, Inc., a Delaware corporation (the “Company”), and Jae B. Kim, M.D. (“Executive”), as of the Effective Date (as defined below).

WHEREAS, the Company and Executive are parties to that certain employment letter agreement dated as of July 6, 2020 (the “Employment Agreement”), a copy of which is attached to this Release as Exhibit A and incorporated herein by reference, and that certain Employee Invention Assignment and Confidentiality Agreement executed by Executive on July 8, 2020 (the “Confidentiality Agreement”); 

WHEREAS, Executive’s employment with the Company will terminate effective as of August 30, 2021 (the “Separation Date”); 

WHEREAS, the parties agree that Executive is entitled to certain separation benefits under the Employment Agreement, subject to Executive’s execution and non-revocation of this Release; and

WHEREAS, the Company and Executive now wish to fully and finally resolve all matters between them.

NOW, THEREFORE, in consideration of, and subject to, the separation benefits payable to Executive described in Section 2(d) below, the adequacy of which is hereby acknowledged by Executive, and which Executive acknowledges that he would not otherwise be entitled to receive, Executive and the Company hereby agree as follows:

1.Effective Date; Separation Date.  

(a)Effective Date.  This Release shall become effective upon Executive’s execution of the Release (which shall occur no earlier than the Separation Date) and the expiration of the revocation period applicable under Section 3(d) without Executive having given notice of revocation.  The “Effective Date” shall be the eighth (8th) day following Executive’s execution of this Release without revocation.  Executive understands that Executive will not be given any separation benefits under this Release unless the Effective Date occurs on or before the date that is thirty (30) days following the Separation Date.  In the event the Effective Date does not occur on or before the date that is thirty (30) days following the Separation Date, this Release shall be null and void. The parties agree that any material or immaterial changes to this Release shall not extend the deadline for the occurrence of the Effective Date.

(b)Separation Date.  The Separation Date will be the last day of Executive’s employment with the Company and any of its affiliates for all purposes.  Executive hereby confirms his separation and resignation from all positions he holds with the Company and any of its affiliates, including his position as Chief Medical Officer of the Company, effective as of the Separation Date. Executive shall execute any additional documentation necessary to effectuate such resignations. 

2.Compensation.  

(a)Compensation Through Separation Date.  On the Separation Date, the Company shall issue to Executive his final paycheck, reflecting (i) Executive’s fully earned but unpaid base salary, through the Separation Date at the rate then in effect, and (ii) all accrued, unused paid time off or vacation due Executive through the Separation Date.  Subject to Sections 2(b) and (d) below, Executive acknowledges and agrees that with his final check, Executive will have received all monies, bonuses, 

 

 

commissions, expense reimbursements, paid time off or vacation, or other compensation he earned or was due during his employment by the Company.  

(b)Expense Reimbursements.  The Company, within thirty (30) days after the Separation Date, will reimburse Executive for any and all reasonable and necessary business expenses incurred by Executive in connection with the performance of his job duties prior to the Separation Date, which expenses shall be submitted to the Company with supporting receipts and/or documentation no later than thirty (30) days after the Separation Date. 

(c)Benefits.  Subject to Section 2(d)(ii) below, Executive’s entitlement to benefits from the Company, and eligibility to participate in the Company’s benefit plans, shall cease on the Separation Date, except to the extent Executive elects to and is eligible to receive continued healthcare coverage pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), for himself and any covered dependents, in accordance with the provisions of COBRA.

(d)Separation Benefits.  In exchange for Executive’s agreement to be bound by the terms of this Release, including, but not limited to, the release of claims in Section 3, and subject to the occurrence of the Effective Date as provided in Section 1(a), Executive shall be entitled to receive the following, which shall be the exclusive separation benefits to which Executive is entitled, unless Executive has failed to comply with the provisions of this Release, in which case the last sentence of Section 4(e) shall apply:

(i) an amount equal to twelve (12) months of Executive’s current base salary ($455,400 per annum), paid in equal installments on the Company’s regular payroll schedule over the twelve (12) month period following the Separation Date (the “Salary Continuation”); provided, however, that no payments will be made prior to the thirtieth (30th) day following the Separation Date, and on the thirtieth (30th) day following the Separation Date, the Company will pay Executive in a lump sum the Salary Continuation that Executive would have received on or prior to such date under the original schedule but for such delay in the initial payment while waiting for the effectiveness of the Release, with the balance of the Salary Continuation being paid as originally scheduled;

(ii)if Executive timely elects continued coverage under COBRA for himself and his covered dependents under the Company’s group health plans following the Separation Date, then the Company shall pay the COBRA premiums necessary to continue Executive’s health insurance coverage in effect for himself and his eligible dependents on the Separation Date until the earliest of (A) the close of the twelve (12) month period following the Separation Date, (B) the expiration of Executive’s eligibility for the continuation coverage under COBRA, or (C) the date when Executive becomes eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment (such period from the Separation Date through the earliest of (A) through (C), the “COBRA Payment Period”).  Notwithstanding the foregoing, if the Company determines, in its sole discretion, that the payment of the COBRA premiums could result in a violation of the nondiscrimination rules of Section 105(h)(2) of the Internal Revenue Code of 1986, as amended (the “Code”), or any statute or regulation of similar effect (including but not limited to the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of providing the COBRA premiums, the Company, in its sole discretion, may elect to instead pay Executive on the first day of each month of the COBRA Payment Period, a fully taxable cash payment equal to the COBRA premiums for that month, subject to applicable tax withholdings (such amount, the “Special Separation Payment”), for the remainder of the COBRA Payment Period.  Executive may, but are not obligated to, use such Special Separation Payment toward the cost of COBRA 

 

 

premiums.  On the thirtieth (30th) day following the Separation Date, the Company will make the first payment under this clause equal to the aggregate amount of payments that the Company would have paid through such date had such payments commenced on the Separation Date through such thirtieth (30th) day, with the balance of the payments paid thereafter on the schedule described above.  If Executive becomes eligible for coverage under another employer’s group health plan or otherwise ceases to be eligible for COBRA during the period provided in this clause, Executive must immediately notify the Company of such event, and all payments and obligations under this clause shall cease; 

(iii) the Company shall provide Executive with outplacement services for a period of up to one (1) year following the Separation Date through an outplacement firm selected by the Company with a value up to $15,000; 

(iv)Executive holds stock options (the “Stock Options”) to purchase shares of the Company’s common stock issued to Executive by the Company pursuant to certain stock option agreements (the “Stock Option Agreements”).  As of the Separation Date, all of Executive’s unvested Stock Options shall terminate.  Executive’s vested Stock Options shall be amended so that they may be exercised by Executive (or Executive’s legal guardian or legal representative) until the date that is six (6) months following the Separation Date. Except as modified above, Executive's stock options shall continue to be governed by the terms and conditions of the Stock Option Agreements and the Company’s equity plan pursuant to which such Stock Options were granted; and

(v)notwithstanding anything to the contrary contained in Section 6 of the Employment Agreement, upon the Effective Date, Executive’s obligation to repay the relocation assistance paid to or on behalf of Executive by the Company shall be forgiven and Executive shall have no further obligations to the Company in respect of such relocation assistance..  

3.General Release of Claims by Executive.  

(a)In consideration of the separation benefits in Section 2(d) above, Executive, on behalf of himself and his executors, heirs, administrators, representatives and assigns, hereby agrees to release and forever discharge the Company and all predecessors, successors and their respective parent corporations, affiliates, related, and/or subsidiary entities, and all of their past and present investors, directors, shareholders, officers, general or limited partners, employees, attorneys, agents and representatives, and the employee benefit plans in which Executive is or has been a participant by virtue of his employment with or service to the Company (collectively, the “Company Releasees”), from any and all claims, debts, demands, accounts, judgments, rights, causes of action, equitable relief, damages, costs, charges, complaints, obligations, promises, agreements, controversies, suits, expenses, compensation, responsibility and liability of every kind and character whatsoever (including attorneys’ fees and costs), whether in law or equity, known or unknown, asserted or unasserted, suspected or unsuspected (collectively, “Claims”), which Executive has or may have had against such entities based on any events or circumstances arising or occurring on or prior to the date hereof, arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever Executive’s employment by or service to the Company or the termination thereof, including any and all claims arising under federal, state, or local laws relating to employment, including without limitation claims of wrongful discharge, breach of express or implied contract, fraud, misrepresentation, defamation, or liability in tort, and claims of any kind that may be brought in any court or administrative agency including, without limitation, claims under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. Section 2000, et seq.; the Americans with Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701 et seq.; the Civil Rights Act of 1866, and the Civil Rights Act of 1991; 42 U.S.C. Section 1981, et seq.; the Age Discrimination in Employment Act, as amended, 29 U.S.C. Section 621, et seq. (the “ADEA”); the 

 

 

Equal Pay Act, as amended, 29 U.S.C. Section 206(d); regulations of the Office of Federal Contract Compliance, 41 C.F.R. Section 60, et seq.; the Family and Medical Leave Act, as amended, 29 U.S.C. § 2601 et seq.; the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. § 201 et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; and the California Fair Employment and Housing Act, California Government Code Section 12940, et seq.

Notwithstanding the generality of the foregoing, Executive does not release the following:

(i)Claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law;

(ii)Claims for workers’ compensation insurance benefits under the terms of any worker’s compensation insurance policy or fund of the Company;

(iii)Claims pursuant to the terms and conditions of the federal law known as COBRA;

(iv)Claims for indemnity under the bylaws of the Company, as provided for by California or Delaware law (including California Labor Code Section 2802) or under any applicable insurance policy with respect to Executive’s liability as an employee, director or officer of the Company;

(v)Claims based on any right Executive may have to enforce the Company’s executory obligations under this Release;

(vi)Executive’s right to bring to the attention of the Equal Employment Opportunity Commission or the California Department of Fair Employment and Housing claims or any other federal, state or local government agency of discrimination, harassment, retaliation or failure to accommodate, or from participating in an investigation or proceeding conducted by the Equal Employment Opportunity Commission or any other federal, state or local government agency; provided, however, that Executive does release his right to secure any damages for any such alleged treatment; 

(vii)Executive’s right to communicate or cooperate with any government agency; and

(vii)Any other Claims that cannot be released as a matter of law.

(b)EXECUTIVE ACKNOWLEDGES THAT HE HAS BEEN ADVISED OF AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, 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, EXECUTIVE HEREBY EXPRESSLY WAIVES ANY RIGHTS HE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

(c)Executive acknowledges that this Release was presented to him on August 26, 2021, and that, prior to signing this Release, Executive was given at least twenty-one (21) days’ time in which to consider it.  Executive further acknowledges that the Company has advised him that he is waiving 

 

 

his rights under the ADEA, and that Executive should consult with an attorney of his choice before signing this Release, and Executive has had sufficient time to consider the terms of this Release.  Executive represents and acknowledges that if Executive executes this Release before the foregoing twenty-one (21) days have elapsed, Executive does so knowingly, voluntarily, and upon the advice and with the approval of Executive’s legal counsel (if any), and that Executive voluntarily waives any remaining consideration period.  

(d)Executive understands that after executing this Release, Executive has the right to revoke it within seven (7) days after his execution of it.  Executive understands that this Release will not become effective and enforceable unless the seven (7) day revocation period passes and Executive does not revoke the Release in writing.  Executive understands that this Release may not be revoked after the seven (7) day revocation period has passed.  Executive also understands that any revocation of this Release must be made in writing and delivered to John Wallen, General Counsel of the Company, at the Company's principal place of business, within the foregoing seven (7) day period.

(e)Executive understands that this Release shall become effective, irrevocable, and binding upon Executive on the eighth (8th) day after his execution of it, so long as Executive has not revoked it within the time period and in the manner specified in clause (d) above.  

(f)Executive represents that Executive has no pending complaints or charges against the Company Releasees, or any of them, with any state or federal court, or any local, state or federal agency, division, or department based on any event(s) occurring prior to the date Executive signs this Release.  Executive further represents that, except solely to the extent otherwise provided explicitly herein, Executive will not in the future, file, participate in, encourage, instigate or assist in the prosecution of any claim, complaints, charges or in any lawsuit by any party in any state or federal court against the Company Releasees, or any of them unless such aid or assistance is ordered by a court or government agency or sought by compulsory legal process, claiming that the Company Releasees, or any of them, have violated any local, state or federal laws, statutes, ordinances or regulations based upon events occurring prior to her execution of this Release.

4.Confirmation of Continuing Obligations.  

(a)Executive hereby expressly reaffirms his obligations under the Confidentiality Agreement, a copy of which is attached to this Release as Exhibit B and incorporated herein by reference, and agrees that such obligations shall survive the Separation Date.  

(b)Executive agrees that during the period of employment with the Company and for twelve (12) months after the date Executive’s employment is terminated for any reason, Executive will not, either directly or through others, solicit or encourage or attempt to solicit or encourage any employee, independent contractor, or consultant of the Company to terminate his or her relationship with the Company in order to become an employee, consultant or independent contractor to or for any other person or entity. The foregoing provision shall not be violated by general advertising not targeted at employees, independent contractors or consultants of the Company.

(c)Executive agrees that he shall not disparage or otherwise communicate negative statements or opinions about the Company, its board members, officers, employees, shareholders or agents.  The Company agrees that neither its board members nor officers shall disparage or otherwise communicate negative statements or opinions about Executive.  Nothing in this Section 4(c) shall prohibit Executive or any officer or director of the Company from (i) testifying in any legal proceeding in which his or her testimony is compelled by law or court order and no breach of this provision shall occur due to any accurate, legally compelled testimony or (ii) communicating or cooperating with any government agency.

 

 

(d)On the Separation Date, and prior to the payment of any amounts to Executive under Section 2(d) above, Executive shall immediately surrender to the Company all Company equipment, lists, books and records of, or in connection with, the Company’s business, and all other property belonging to the Company, it being distinctly understood that all such equipment, lists, books and records, and other documents, are the property of the Company and shall be returned with all stored data and files intact. 

(e)In addition to all other rights and remedies available to the parties under law or in equity, the Company shall be entitled to withhold all separation benefits payable under Section 2(d) from Executive in the event of his breach of this Section 4 prior to his receipt of such separation benefits.  

(f)Executive acknowledges that the Company has provided him with the following notice of immunity rights in compliance with the requirements of the Defend Trade Secrets Act: (i) Executive shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of proprietary information that is made in confidence to a Federal, State, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, (ii) Executive shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of proprietary information that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal and (iii) if Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the proprietary information to his attorney and use the proprietary information in the court proceeding, if Executive files any document containing the proprietary information under seal, and does not disclose the proprietary information, except pursuant to court order. 

5.Cooperation.  As a condition of his receipt of the separation benefits set forth in Section 2(d), Executive agrees that, upon reasonable notice and without the necessity of Company obtaining a subpoena or court order, he will provide reasonable cooperation to Company in connection with any suit, action or proceeding (or any appeal from any suit, action or proceeding), or the decision to commence on behalf of the Company any suit, action or proceeding, any investigation and/or any defense of any claims asserted against the Company or any of the Company’s current or former directors, officers, employees, partners, stockholders, agents or representatives of any of the foregoing, and any ongoing or future investigation or dispute or claim of any kind involving the Company that relates to events occurring during his employment as to which he may have relevant information and any other matter for which he was responsible or had knowledge of through the Separation Date.  Such cooperation may include, but will not be limited to, providing background information within Executive’s knowledge; aiding in the drafting of declarations; executing declarations or similar documents; testifying or otherwise appearing at investigation interviews, depositions, arbitrations or court hearings; and preparing for the above-described or similar activities.  

6.Arbitration.  To ensure the timely and economical resolution of disputes that may arise in connection with Executive’s employment with the Company or this Release, Executive and the Company agree that any and all disputes, claims, or causes of action arising from or relating to the enforcement, breach, performance, negotiation, execution, or interpretation of this Release, Executive’s employment, or the termination of Executive’s employment, including but not limited to statutory claims, shall be resolved pursuant to the Federal Arbitration Act, 9 U.S.C. §1-16, or if inapplicable, the California Arbitration Act, and to the fullest extent permitted by law by final, binding and confidential arbitration, by a single neutral arbitrator in San Diego, California, chosen jointly by the parties, and will be conducted by JAMS, Inc. (“JAMS”) under the then applicable JAMS rules (which can be found at the following web address: https://www.jamsadr.com/rules-employment-arbitration/ or will be provided to Executive upon request without charge).  If the parties cannot agree on an arbitrator, then JAMS shall appoint an arbitrator in accordance with JAMS rules.  By agreeing to this arbitration procedure, both Executive and the Company waive the right to resolve any such dispute through a trial by jury or judge or administrative proceeding.  The Company acknowledges that Executive will have the right to be 

 

 

represented by legal counsel at any arbitration proceeding.  In addition, all claims, disputes, or causes of action under this Section 6, whether by Executive or the Company, must be brought in an individual capacity, and shall not be brought as a plaintiff (or claimant) or class member in any purported class or representative proceeding, nor joined or consolidated with the claims of any other person or entity.  The arbitrator may not consolidate the claims of more than one person or entity, and may not preside over any form of representative or class proceeding.  To the extent that the preceding sentences regarding class claims or proceedings are found to violate applicable law or are otherwise found unenforceable, any claim(s) alleged or brought on behalf of a class shall proceed in a court of law rather than by arbitration.  This Section 6 shall not apply to an action or claim brought in court pursuant to the California Private Attorneys General Act of 2004, as amended.  The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award.  The arbitrator shall be authorized to award any or all remedies that Executive or the Company would be entitled to seek in a court of law.  The Company shall pay all JAMS’ arbitration fees in excess of the amount of court fees that would be required of Executive if the dispute were filed in Superior Court.  This Section 6 is intended to be the exclusive method for resolving any and all claims by the parties against each other for payment of damages under this Release or relating to Executive’s employment; provided, however, that Executive shall retain the right to file administrative charges with or seek relief through any government agency of competent jurisdiction, and to participate in any government investigation, including but not limited to (i) claims for workers’ compensation, state disability insurance or unemployment insurance; (ii) claims for unpaid wages or waiting time penalties brought before the California Division of Labor Standards Enforcement; provided, however, that any appeal from an award or from denial of an award of wages and/or waiting time penalties shall be arbitrated pursuant to the terms of this Release; and (iii) claims for administrative relief from the United States Equal Employment Opportunity Commission and/or the California Department of Fair Employment and Housing (or any similar agency in any applicable jurisdiction other than California).  Nothing in this Release is intended to prevent either Executive or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration.  Any awards or orders in such arbitrations may be entered and enforced as judgments in the federal and state courts of any competent jurisdiction.

7.Miscellaneous.

(a)Assignment; Assumption by Successor.  The rights of the Company under this Release may, without the consent of Executive, be assigned by the Company, in its sole and unfettered discretion, to any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly, acquires all or substantially all of the assets or business of the Company.  The Company will require any successor (whether direct or indirect, by purchase, merger or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and to agree to perform this Release 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.  Executive may not assign this Release or any part hereof, it being understood that this Release is personal to Executive. Any purported assignment by Executive shall be null and void from the initial date of purported assignment.  As used in this Release, the “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Release by operation of law or otherwise.

(b)Notices.  All notices or other communications required or permitted to be given under this Release shall be in writing and shall be deemed to have been duly given when delivered personally or one (1) business day after being sent by a nationally recognized overnight delivery service, charges prepaid. Notices also may be given electronically and shall be effective on the date transmitted if confirmed within forty-eight (48) hours thereafter by a signed original sent in the manner provided in the preceding sentence.  Notice to Executive shall be sent to his most recent residence and personal email 

 

 

address on file with the Company.  Notice to the Company shall be sent to its physical address set forth on the first page hereto and addressed to the General Counsel at the email address provided by the Company for such person.

(c)Survival.  The covenants, agreements, representations and warranties contained in or made in Sections 2, 3, 4, 5, 6 and 7 of this Release shall survive the Separation Date or any termination of this Release.

(d)Severability. In the event any provision of this Release is found to be unenforceable by an arbitrator or court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the Parties shall receive the benefit contemplated herein to the fullest extent permitted by law.  If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby.

(e)Interpretation; Construction. The headings set forth in this Release are for convenience only and shall not be used in interpreting this Release.  This Release has been drafted by legal counsel representing the Company, but Executive has participated in the negotiation of its terms.  Furthermore, Executive acknowledges that Executive has had an opportunity to review and revise the Release and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Release.  Either party’s failure to enforce any provision of this Release shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Release.

(f)Governing Law and Venue.  This Release is to be governed by and construed in accordance with the laws of the United States of America and the State of California applicable to contracts made and to be performed wholly within such State, and without regard to the conflicts of laws principles thereof.  Except as provided in Section 6, any suit brought hereon shall be brought in the state or federal courts sitting in San Diego, California, the parties hereto hereby waiving any claim or defense that such forum is not convenient or proper.  Each party hereby agrees that any such court shall have in personam jurisdiction over it and consents to service of process in any manner authorized by California law.

(g)Entire Agreement; Modification.  This Release and the Confidentiality Agreement set forth the entire understanding of the parties with respect to the subject matter hereof and supersede all existing agreements between them concerning such subject matter.  The Employment Agreement shall be superseded entirely by this Release and the Employment Agreement shall be terminated and be of no further force or effect.  This Release may be amended or modified only with the written consent of Executive and an authorized representative of the Company.  No oral waiver, amendment or modification will be effective under any circumstances whatsoever.

(h)Counterparts.  This Release may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Release.

(i)Withholding and other Deductions.  All compensation payable to Executive hereunder shall be subject to such deductions as the Company is from time to time required to make pursuant to law, governmental regulation or order.

(j)Section 409A.

 

 

(i)It is intended that all of the separation benefits and other payments payable under this Release satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Code provided under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9), and this Release will be construed to the greatest extent possible as consistent with those provisions, and to the extent not so exempt, this Release (and any definitions hereunder) will be construed in a manner that complies with Section 409A of the Code. Executive’s “separation from service” (“Separation from Service”) for purposes of Section 409A of the Code shall be the Separation Date.  To the extent that any provision of the Release is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner that no payments payable under this Release shall be subject to an “additional tax” as defined in Section 409A(a)(1)(B) of the Code.

(ii)For purposes of Section 409A of the Code, Executive’s right to receive any installment payments pursuant to this Release will be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Release specifies a payment period with reference to a number of days, the actual date of payment within the specified period will be within the sole discretion of the Company.

(iii)Notwithstanding any provision to the contrary in this Release, if Executive is deemed by the Company at the time of Executive’s Separation from Service to be a “specified employee” for purposes of Code Section 409A(a)(2)(B)(i), and if any of the payments upon Separation from Service set forth herein and/or under any other agreement with the Company are deemed to be “deferred compensation”, then to the extent delayed commencement of any portion of such payments is required in order to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments shall not be provided to Executive prior to the earliest of (A) the expiration of the six-month period measured from the date of Executive’s Separation from Service with the Company, (B) the date of Executive’s death or (C) such earlier date as permitted under Section 409A without the imposition of adverse taxation.  Upon the first business day following the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this paragraph shall be paid in a lump sum to Executive, and any remaining payments due shall be paid as otherwise provided herein or in the applicable agreement.  No interest shall be due on any amounts so deferred 

(iv)All reimbursements and in-kind benefits provided under this Release shall be made or provided in accordance with the requirements of Section 409A to the extent that such reimbursements or in-kind benefits are subject to Section 409A, including, where applicable, the requirements that (A) any reimbursement is for expenses incurred during Executive’s lifetime (or during a shorter period of time specified in this Release), (B) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (C) the reimbursement of any eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and (D) the right to reimbursement is not subject to set off or liquidation or exchange for any other benefit.  

(k)Knowing and Voluntary.  Executive represents and agrees that, prior to signing this Release, Executive has had the opportunity to discuss the terms of this Release with legal counsel of his choosing.  Executive further represents and agrees that he is entering into this Release knowingly and voluntarily. Executive affirms that no promise was made to cause him to enter into this Release, other than what is promised in this Release. Executive further confirms that he has not relied upon any other statement or representation by anyone other than what is in this Release as a basis for his agreement. Executive acknowledges and agrees that neither the Company nor the Company’s counsel has provided any legal or tax advice to Executive and that Executive is free to, and is hereby advised to, consult with a legal or tax advisor of his choosing.

(Signature Page Follows)

 

 

 

 

IN WITNESS WHEREOF, the parties have executed this Release as of the dates set forth below.

 

	
 
	
 
	
 
	
Avidity Biosciences, Inc.

	
 
	
 
	
 
	
 
	
 

	
Date:
	
8/30/2021
	
 
	
By:
	
/s/ Sarah Boyce

	
 
	
 
	
 
	
Name:
	
Sarah Boyce

	
 
	
 
	
 
	
Title:
	
CEO

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Executive

	
 
	
 
	
 
	
 
	
 

	
Date:
	
8/30/2021
	
 
	
 
	
/s/ Jae B. Kim

	
 
	
 
	
 
	
 
	
Jae B. Kim, M.D.Exhibit 10.1

 

Separation
Agreement and Release

 

This Separation Agreement and Release (the “Agreement”)
sets forth the terms of your separation from employment with CorMedix Inc. (the “Company”). If you understand and agree with
these terms, please sign in the space provided below. If you and the Company sign below, this will be a legally binding document representing
the entire agreement between you and the Company regarding the subjects it covers. We will refer to this document as the “Agreement.”

 

Termination Date. You and the Company have mutually agreed that
your last day of work with the Company will be October 4, 2021 (“Termination Date”). You hereby acknowledge that all officer,
director and other positions you may have held with the Company and its affiliates terminate effective as of the Termination Date without
further action by either party hereto.

 

Consideration. In
exchange for the promises contained in this Agreement and in accordance with the terms of the Employment Agreement dated September 26,
2019 between you and the Company (the “Employment Agreement”), the Company will pay or provide you the following if you sign
and do not revoke this Agreement:

 

		●	Base salary as of the date of this Agreement ($35,416.67 per month) for a
period of twelve (12) months following the Termination Date, which shall be payable in accordance with the Company’s payroll practices
and procedures beginning no later than the 30th day following the Termination Date. The first payment will include unpaid installments
for the period from the Termination Date to the first payment date. 

 

		●	Lump sum payment of $70,833.34, which represents base salary for 60 days
as pay in lieu of notice. The payment will be made no later than the 30th day following the Termination Date.

 

		●	Prorated annual bonus for 2021 (if any) based upon and subject to the actual
achievement of the objectives established by the Board of Directors of the Company (“Board”) for the 2021 year, which shall
be paid at the date on which the annual bonus would have been paid had you continued in employment; the prorated bonus shall be calculated
by multiplying the annual bonus amount determined by the Board by a fraction, the numerator of which is the number of days preceding the
Termination Date in 2021 and the denominator of which is 365. 

 

		●	If you timely elect continued health insurance coverage under COBRA, monthly
payment of a portion of your COBRA premium for a period of twelve (12) months following the Termination Date or until you became eligible
for group health insurance coverage under another employer’s plan, whichever occurs first. Such portion shall be equal to the monthly
amount paid by the Company for active coverage as of the Termination Date for you and your eligible dependents. The COBRA payments shall
begin on the date on which the salary continuation payments commence.

 

		●	All time-based stock options that are scheduled to vest on or before the
first anniversary of the Termination Date (i.e., October 4, 2022) shall be accelerated and deemed to have vested as of the Termination
Date. Your performance-based stock options which are not vested as of the Termination Date shall not accelerate and shall be forfeited
as of the Termination Date. You shall have met the requirements for retirement eligibility as of the Termination Date for purposes of
your vested stock options, so all of your vested stock options may be exercised through the three-year anniversary of the Termination
Date (i.e., October 4, 2024) (but not beyond the end of the option term) in accordance with the grant agreements. Attached as Exhibit
A is a list of your vested options.

 

Payments Without Regard to this Agreement. Whether or not you
sign this Agreement, you shall receive (i) payment of any accrued but unpaid salary and paid time off through the Termination Date, (ii)
payment of any reimbursable business expenses incurred before the Termination Date subject to the Company’s policies, and (iii)
payment of any amounts due under any benefit plan or program in accordance with its terms through the Termination Date.

 

     

     

    

 

Release of Claims. In
exchange for the payments and benefits described in the “Consideration” section, you hereby waive all claims available under
federal, state or local law against the Company, its parent, partners and affiliates, and its and their respective directors, officers,
employees, agents, insurers and reinsurers, and employee benefit plans (and the trustees, administrators, fiduciaries, insurers and reinsurers
of such plans) past, present, and future, their heirs, executors, administrators, representatives, successors and assigns (collectively,
the “Releasees”), arising out of your employment with the Company or the termination of that employment, including but not
limited to all claims arising under the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Americans
with Disabilities Act, the Civil Rights Act of 1991, the Employee Retirement Income Security Act, the Equal Pay Act, the Genetic Information
Non-discrimination Act, the Family and Medical Leave Act, Section 1981 of U.S.C, Title VII of the Civil Rights Act, the New Jersey Law
Against Discrimination, New Jersey Equal Pay Act, New Jersey Civil Rights Law, New Jersey Security and Financial Empowerment Act, New
Jersey Conscientious Employee Protection Act, New Jersey Family Leave Act, New Jersey Earned Sick Leave Law, New Jersey Wage Payment Law,
New Jersey Wage and Hour Law, New Jersey WARN Laws, retaliation provisions of New Jersey Workers’ Compensation Law, as well as wrongful
termination claims, breach of contract claims, discrimination claims, harassment claims, retaliation claims, whistleblower claims (to
the fullest extent they may be released under applicable law), defamation or other tort claims, and claims for attorneys’ fees and
costs. You are not waiving your right to (i) vested benefits under the written terms of the Company 401(k) plan, (ii) claims for unemployment
or workers’ compensation benefits, (iii) any medical claim or any judgment or monetary awards or settlements that may arise related
to medical benefits under the group health plan sponsored by the Company, (iv) claims arising after the date on which you sign this Agreement,
(v) claims that are not otherwise waivable under applicable law, (vii) claims to indemnification under Section 11 of the Employment Agreement
or under the Indemnification Agreement between you and the Company dated as of June 25, 2017, or (viii) claims to enforce this Agreement.
You acknowledge that you have not made any claims or allegations related to sexual harassment or sexual abuse and none of the payments
set forth in this Agreement are related to sexual harassment or sexual abuse.

 

Legal Fees. The Company will
reimburse you for up to $20,000 of reasonable legal fees incurred in the review and negotiation of this Agreement.

 

Medicare Disclaimer. You
represent that you are not a Medicare Beneficiary as of the time you enter into this Agreement.

 

Limit on Disclosures. You shall not disclose or cause to be
disclosed the terms of this Agreement to any person (other than your spouse or domestic/civil union partner, attorney and tax advisor),
except pursuant to a lawful subpoena, as set forth in the Reports to Government Entities section below, or as otherwise permitted by law.
This provision is not intended to restrict your legal right to discuss the terms and conditions of your employment.

 

Provisions
of Employment Agreement Remaining In Full Force and Effect. You agree to comply with the confidentiality, inventions, non-competition,
non-solicitation and non-disparagement provisions of the Employment Agreement, which shall remain in effect according to their terms;
provided that the non-solicitation covenant in Section 6(c)(i) of the Employment Agreement (relating to non-solicitation of employees,
consultants and independent contractors) shall extend for 18 months after the Termination Date, instead of one year. All payments and
benefits under the “Consideration” section of this Agreement shall cease if you breach any of these provisions of the Employment
Agreement, and you shall be required to repay to the Company any payments or benefits previously
paid under this Agreement. If any stock options that vest as described
in this Agreement have been exercised, you shall be required to pay to the Company an amount equal to the fair market value of the stock
subject to such option on the date of exercise, less the exercise price paid pursuant to such exercise. You may share the confidentiality,
inventions, non-competition, non-solicitation and non-disparagement provisions of the Employment Agreement, as modified by this Agreement,
with any future employer or other entity for which you will provide services.

 

Cooperation. You agree to cooperate fully and in a timely manner
with the Company and its counsel with respect to any matter (including any litigation, investigation or governmental proceeding) which
relates to your employment with the Company, to provide consulting services as needed to assist in the transition to a new Chief Executive
Officer, and otherwise to continue to be available to advise and consult as requested by the Company with respect to matters relating
to the period during which you served as Chief Executive Officer. This cooperation may include answering questions relating to the transition
of your duties, appearing from time-to-time for conferences and interviews, including participating in calls initiated by the Board or
the then-Chief Executive Officer with employees and other key stakeholders relating to the transition of your responsibilities, and providing
the officers of the Company and its counsel with the full benefit of your knowledge with respect to any such matter. Subject to the Company’s
prior approval, the Company will reimburse you for reasonable out-of-pocket costs and expenses such as travel expenses, with respect to
such cooperation and will endeavor to set meeting times that are mutually agreeable.

 

    2

     

    

 

You further agree that any statements to employees, vendors, shareholders,
other constituents, or others regarding your termination from employment shall be consistent with any statements made by the Company and
shall be subject to the prior approval of the Board. The Board will provide you with the talking points that the Board and the Company
will use to communicate your separation from the Company.

 

In the event that you are made or threatened to be made a party to,
or are otherwise involved in, any action, suit or proceeding by reason of your service with the Company, you agree to provide the Chair
of the Board with prompt written notice of such matter. In the event that you seek indemnification with respect to legal fees relating
to any such matter under the Company’s bylaws, any directors and officers insurance, or otherwise, the Company shall have the right
to approve any counsel with respect to such matter in advance of any legal fees being incurred. The provisions of this paragraph do not
expand any provisions of the bylaws or any directors and officers insurance with respect to indemnification.

 

Reports to Government Entities. Nothing in this Agreement, including
the Limit on Disclosures or Release of Claims sections, restricts or prohibits you from initiating communications directly with, responding
to any inquiries from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation,
including alleged criminal conduct or sexual harassment, to, or from filing any type of claim, charge or complaint, or assisting with
an investigation directly with a self-regulatory authority or a government agency or entity, including the U.S. Equal Employment Opportunity
Commission, the Department of Labor, the National Labor Relations Board, the Department of Justice, the Securities and Exchange Commission,
the Congress, and any agency Inspector General (collectively, the “Regulators”), or from making other disclosures that are
protected under the whistleblower provisions of state or federal law or regulation. However, to the maximum extent permitted by law, you
agree and understand that you are waiving your right to receive any individual monetary relief from the Releasees resulting from such
claims or conduct, regardless of whether you or another party has filed them, and in the event you obtain such monetary relief, the Releasees
will be entitled to seek an offset for the payments made pursuant to this Agreement. This Agreement does not limit your right to receive
an award from any Regulator that provides awards for providing information relating to a potential violation of law. You do not need the
prior authorization of the Company to engage in conduct protected by this paragraph, and you do not need to notify the Company that you
have engaged in such conduct. To the extent permitted by law, upon receipt of any subpoena, court order, or other legal process compelling
the disclosure of any confidential information or trade secrets of the Company, you agree to give prompt written notice to the Company
so as to permit the Company to protect its interests in confidentiality to the fullest extent possible.

 

Please take notice that federal law provides criminal and civil immunity
to federal and state claims for trade secret misappropriation to individuals who disclose a trade secret to their attorney, a court, or
a government official in certain, confidential circumstances that are set forth at 18 U.S.C. §§ 1833(b)(1) and 1833(b)(2), related
to the reporting or investigation of a suspected violation of the law, or in connection with a lawsuit for retaliation for reporting a
suspected violation of the law.

 

Non-Admission of Liability.  Nothing
in this Agreement is an admission of any wrongdoing, liability or unlawful activity by you or by the Company.

 

No Other Amounts Due. You
acknowledge that the Company has paid you all wages, salaries, bonuses, benefits and other amounts earned and accrued, less applicable
deductions, and that the Company has no obligation to pay any additional amounts other than the payments described in the “Consideration”
section of this Agreement.

 

Acknowledgement of Voluntariness and Time to Review.  You acknowledge
that:

 

		●	you read this Agreement and you understand it;

 

		●	you are signing this Agreement voluntarily in order to release your claims
against the Company in exchange for payment that is greater than you would otherwise have received;

 

		●	you are signing this Agreement after the date of your separation from the
Company and you were offered at least 21 days to consider your choice to sign this Agreement;

 

		●	the Company advises you to consult with an attorney about this Agreement;

 

		●	you know that you can revoke this Agreement within 7 days of signing it and
that the Agreement does not become effective until that 7-day period has passed (“Effective Date”). To revoke, provide written
notice of revocation to Phoebe Mounts at the Company, at pmounts@cormedix.com; and

 

		●	you agree that changes to this Agreement before its execution, whether material
or immaterial, do not restart your time to review the Agreement.

 

    3

     

    

 

Return of Records and Equipment. You agree that you have returned
(or within seven business days following the Termination Date, will return) all Company property, including but not limited to the Company
provided laptop, keys, ID card, cell phone, PDA, and Company documents and information (either hard copy or electronic) other than records
related solely to your own compensation or benefits. Promptly following the Termination Date, the Company will provide you with a pre-paid
box and mailing instructions for returning the Company property. You may keep your Company provided laptop and printer after the Company
has removed all Company information from such devices.

 

Conditional
Payments. If, after the date on which the Company signs this Agreement, the Board discovers information or conduct by you that would
constitute grounds for a termination for “Cause” (as that term is defined in your Employment Agreement) and that was not known
to the Board prior to the date on which the Company signs this Agreement, the Board may determine that all payments and benefits under
the “Consideration” section of this Agreement shall cease, and you shall be
required to repay to the Company any payments or benefits previously paid under such section. If
any stock options that vest as described in this Agreement have been exercised, you shall be required to pay to the Company an amount
equal to the fair market value of the stock subject to such option on the date of exercise, less the exercise price paid pursuant to such
exercise.

 

Tax Withholding. All payments under this Agreement shall be
made subject to applicable tax withholding.

 

Section 409A. This Agreement is intended to comply with section
409A of the Internal Revenue Code, or an exemption, and the provisions of this section shall apply notwithstanding any provisions of this
Agreement to the contrary. Payments and benefits under this Agreement are intended to be exempt from section 409A of the Code under the
“short-term deferral” exception, to the maximum extent applicable, and then under the “separation pay” exception,
to the maximum extent applicable. All payments to be made upon a termination of employment under this Agreement may only be made upon
a “separation from service” under section 409A of the Code. For purposes of section 409A of the Code, each payment shall be
treated as a separate payment. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided
under this Agreement comply with section 409A of the Code and in no event shall the Company be liable for any taxes, penalties, interest,
or other expenses that may be incurred by you on account of non-compliance with section 409A of the Code.

 

Entire Agreement. This Agreement sets forth the entire agreement
of the parties hereto and supersedes any and all prior agreements and understandings regarding all of the subjects covered by this Agreement.
This Agreement may be changed only by a written document signed by you and an authorized representative of the Company.

 

Severability. In the event a court, arbitrator or other entity
with jurisdiction determines that any portion of this Agreement (other than the general release section) is invalid or unenforceable,
the remaining portions of the Agreement shall remain in full force and effect.

 

Governing Law. This Agreement shall be governed by the laws
of New Jersey without reference to that jurisdiction’s choice of law rules.

 

The Company hereby advises you to consult with an attorney prior to
signing this Agreement. You acknowledge that you have had a reasonable amount of time to consider the terms of this Agreement and you
sign it with the intent to be legally bound.

 

[Signature Page Follows]

 

    4

     

    

 

	CORMEDIX INC.	 
	 	 
	/s/ Myron Kaplan  	 
	Date:	October 1, 2021	 

 

	KHOSO BALUCH	 
	 	 
	/s/ Khoso Baluch  	 
	Date:	October 1, 2021	 

 

     

     

    

 

Exhibit A

 

Vested Stock Options 

 

	Grant Date	 	Number of Vested Shares1	 
	9/30/2016	 	 	250,000	 
	9/30/2016	 	 	60,000	 
	1/10/2019	 	 	21,000	 
	1/10/2019	 	 	4,038	 
	1/10/2019	 	 	37,562	 
	9/26/2019	 	 	12,286	 
	9/26/2019	 	 	47,714	 
	2/25/2020	 	 	50,315	 
	1/11/2021	 	 	0	 
	1/11/2021	 	 	40,000	 
	1/11/2021	 	 	0	 

 

 

		1	This schedule reflects the vested options before the Termination
Date. The schedule will be updated promptly following signing to reflect the additional options that vest pursuant to the “Consideration”
Section of this Agreement upon the Termination Date.

 

			Pursuant to this Agreement, the vested options will be exercisable for three years following the
                                                                             Termination Date, but not beyond the applicable term of the option.

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