Document:

EX-10.25

   

   

  Exhibit 10.25

   

  May 20th, 2021

   

  Celina Mikolajczak

   

  Dear Celina,

   

  I am pleased to offer you a position with QuantumScape Battery, Inc. (the “Company”), as Vice President, Manufacturing Engineering. For purposes of this letter, the Company’s publicly-traded parent is referred to as “QuantumScape.” If you decide to join us as a regular employee, you will receive an annual salary of $350,000, which will be paid in accordance with the Company’s normal payroll procedures. As a full-time employee, you will also be eligible to receive the Company’s standard employee benefits. Please note that the Company may modify job titles, salaries and benefits from time to time as it deems necessary.

   

  If you decide to join the Company, and subject to the approval of QuantumScape’s Board of Directors (or applicable committee thereof), you will be granted an award of Restricted Stock Units (RSUs) of QuantumScape with a value of $2,000,000. The number of RSUs will be determined by dividing $2,000,000 by the volume weighted average price of a share of QuantumScape common stock (over a trailing twenty trading day period) on the date approved by QuantumScape’s Board of Directors (or applicable committee thereof).

   

  Twenty-five percent (25%) of the Restricted Stock Units will be scheduled to vest on the first Quarterly Vesting Date following the one (1) year anniversary of the Vesting Commencement Date, and six and one-quarter percent (6.25%) of the Restricted Stock Units will be scheduled to vest each quarter on each Quarterly Vesting Date thereafter, subject to you providing continuous service through each such date. The “Vesting Commencement Date” is on or after the earliest of either February 15, May 15, August 15, or November 15, following your start date. A “Quarterly Vesting Date” is the first trading day on or after each of February 15, May 15, August 15, and November 15. The specific terms of your RSUs will be set forth in an RSU award agreement under QuantumScape’s 2020 Equity Incentive Plan.

   

  Under the Company’s 2021 Executive Incentive Compensation Plan, you will be eligible for an annual target bonus of thirty-three percent (33.3%) of your eligible earnings based on achievement of performance goals established by the Compensation Committee of the Board of Directors.

   

  In addition, by signing the enclosed Change in Control and Severance Agreement concurrently with accepting this offer, you will be eligible to receive certain severance benefits if you are terminated without cause or you resign for good reason in accordance with the terms therein.

   

  The Company is excited about your joining and looks forward to a beneficial and productive relationship. Nevertheless, you should be aware that your employment with the Company is for no specified period and constitutes at-will employment. As a result, you are free to resign at any time, for any reason or for no reason. Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, and with or without notice. We request that, in the event of resignation, you give the Company at least two weeks’ notice.

   

  The Company reserves the right to conduct background investigations and/or reference checks on all of its potential employees. Your job offer therefore, is contingent upon a clearance of such a background investigation and/or reference check, if any.

   

  For purposes of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to us within three (3) business days of your date of hire, or our employment relationship with you may be terminated.

   

   

  

   

  We also ask that, if you have not already done so, you disclose to the Company any and all agreements relating to your prior employment that may affect your eligibility to be employed by the Company or limit the manner in which you may be employed. It is the Company’s understanding that any such agreements will not prevent you from performing the duties of your position and you represent that such is the case. Moreover, you agree that, during the term of your employment with the Company, without Company’s advance written consent, you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which the Company is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company. Similarly, you agree not to bring any third-party confidential information to the Company, including that of your former employer, and that in performing your duties for the Company you will not in any way utilize any such information.

As a Company employee, you will be expected to abide by the Company’s rules and standards. Specifically, you will be required to sign an acknowledgment that you have read and that you understand the Company’s rules of conduct which are included in the Company Handbook.

As a condition of your employment, you are also required to sign and comply with an At-Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement which requires, among other provisions, the assignment of patent rights to any invention made during your employment at the Company, and non-disclosure of Company proprietary information. In the event of any dispute or claim relating to or arising out of our employment relationship, you and the Company agree that (i) any and all disputes between you and the Company shall be fully and finally resolved by binding arbitration, (ii) you are waiving any and all rights to a jury trial but all court remedies will be available in arbitration, (iii) all disputes shall be resolved by a neutral arbitrator who shall issue a written opinion, (iv) the arbitration shall provide for adequate discovery, and (v) the Company shall pay all the arbitration fees, except an amount equal to the filing fees you would have paid had you filed a complaint in a court of law. Please note that we must receive your signed Agreement before your first day of employment.

As a further condition of your employment, you agree to resign from your position as a member of QuantumScape’s Board of Directors, effective immediately upon the acceptance of this offer.

To accept the Company’s offer, please sign and date this letter in the space provided below and return a copy to me. If you accept our offer, your first day of employment will be on July 19th, 2021. This letter, along with any agreements relating to proprietary rights between you and the Company, set forth the terms of your employment with the Company and supersede any prior representations or agreements including, but not limited to, any representations made during your recruitment, interviews or pre-employment negotiations, whether written or oral. This letter, including, but not limited to, its at-will employment provision, may not be modified or amended except by a written agreement signed by the Chief Executive Officer or Chief Legal Officer of the Company and you. This offer of employment will terminate if it is not accepted, signed and returned by May 24th, 2021.

We look forward to your favorable reply and to working with you. 

   

  Sincerely,

   

  	
	 
 
/s/Jagdeep Singh

	 
Jagdeep Singh

	Chief Executive Officer and Chairman

	  (Principal Executive Officer)

   

  Agreed to and accepted: Signature:

  	
	  /s/ Celina Mikolajczak 

	 Printed Name: Celina Mikolajczak

   

  Date: 5/20/2021 

   

   

  Address for Notification:

   

  

   

   

   

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  Enclosures:

  Employment, Confidential Information, Invention Assignment and Arbitration Agreement, Change in Control and Severance AgreementExhibit 10.69
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SEPARATION AGREEMENT AND RELEASE OF CLAIMS
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This Separation Agreement and Release of Claims (“Agreement”) is made and entered into by and between [________] (“Employee”) and Theravance Biopharma US, Inc. (“Theravance” or “Company”).  Employee and Theravance shall be referred to herein as the “Parties.”
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Employee’s employment with Theravance terminated on November 30, 2021 (the “Termination Date”) in connection with a reduction in force.  When this Agreement becomes effective as set forth in paragraph K it will constitute the agreement to provide severance benefits to Employee in exchange for Employee entering this Agreement which among other things includes a release of claims.
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Employee and Theravance agree as follows:
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A.Severance Benefits
After this Agreement becomes effective pursuant to paragraph K Theravance shall provide Employee with the following severance benefits:
		1.
	Severance Payment: Following the Termination Date, Theravance will pay Employee a lump sum equivalent to twelve (12) weeks of Employee’s base salary as of November 29, 2021, which equals the gross amount of $[___________] and which will be subject to all applicable taxes, deductions, and other withholdings.

		2.
	Health Insurance Continuation: Provided Employee completes the required documentation to continue Employee’s health insurance coverage under COBRA Theravance will pay the cost of continuing Employee’s health insurance coverage under COBRA for up to 9 months at the level of coverage applicable to the employee on the Termination Date.  COBRA coverage payment by Theravance will cease if Employee obtains other health insurance coverage during the period Employee is eligible for Theravance paid coverage under the terms of this Agreement.  Employee agrees to notify Theravance in the event Employee obtains other health insurance coverage.  Employee will be responsible for making payments to continue health insurance under COBRA after the period for which Theravance is paying the cost under the terms of this Agreement.

		3.
	Acceleration of Vesting: The treatment of Employee’s outstanding equity awards to acquire ordinary shares of Theravance Biopharma, Inc. shall be governed by the applicable award agreement and plan rules, including but not limited to the Theravance Biopharma, Inc. 2013 Equity Incentive Plan or other applicable equity incentive plan.  To the extent permissible under the rules of any applicable plans, and subject to strict compliance by Employee with Employee’s obligations hereunder, Employee’s outstanding unvested restricted share unit (“RSU”) awards that would have vested over the next three (3) fiscal quarters following the Termination Date (i.e., on February 20, 2022, May 20, 2022, and August 20, 2022) had Employee remained employed by the Company through such dates will benefit 

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from accelerated vesting and will vest as of the effective date of this Agreement (the “Vesting Acceleration”).  To the extent any RSUs vest pursuant to this paragraph A.3, the date the RSUs will be settled will be on a date or dates to be selected by the Company in its sole discretion (no later than March 15, 2022).  The date the RSUs will be settled will depend on when the Agreement becomes effective, compliance with securities laws, compliance with the equity plan documents, internal administrative considerations and potential restrictions on Theravance’s ability to carry out the settlement of RSUs.  The Employee acknowledges and agrees that, effective as of the Termination Date, the “tax withholding obligations” (as defined in Employee’s restricted share unit agreement(s)) applicable to Employee’s RSUs may no longer be satisfied by withholding of shares.  To the extent any RSUs vest pursuant to this paragraph A.3, the Company will instruct E*Trade to sell a number of shares subject to Employee’s RSUs necessary to satisfy Company’s minimum statutory tax withholding requirements (with the remaining shares deposited into Employee’s E*Trade account), consistent with the “sell to cover” instructions Employee provided to the Company.  While Theravance will seek to settle RSUs without undue delay, Employee is informed that RSUs may ultimately not be settled until the Company’s open trading window in the first quarter 2022 (though in any event no later than March 15, 2022).  Employee acknowledges and agrees that except as set forth in this paragraph, vesting of Employee’s outstanding equity awards will cease on the Termination Date and that no further vesting will occur other than pursuant to the Theravance Biopharma, Inc. Change in Control Severance Plan (“Severance Plan”).
		4.
	Change in Control Severance Benefits:  To the extent Theravance Biopharma, Inc. is subject to a “Change in Control” (as defined in the Severance Plan) within three months after the Termination Date, Employee will be eligible for the severance benefits described in the Severance Plan on the terms and conditions set forth therein; provided, however, that such severance benefits shall be reduced by any amounts paid to or on account of Employee pursuant to paragraphs A.1. and A.2. hereof.

B.Release of Claims by Employee
1.General Release and Releasees:
Except as set forth below, in consideration of the severance benefits provided herein, Employee on Employee’s behalf, and on behalf of Employee’s agents, heirs, beneficiaries and assigns, hereby fully and forever releases, waives, discharges and promises not to sue or otherwise maintain, institute or cause to be instituted any legal proceedings against Theravance, or its related entities and subsidiaries, or any of its or its related entities’ and subsidiaries’ current or former officers, directors, shareholders, predecessors, successors, agents, employees, contractors, insurers, representatives, joint employers, or any person or entity to which Theravance has provided services (collectively, “Releasees”), with respect to any and all liabilities, claims, demands, contracts, debts, monetary damages or other form of personal relief, of any nature, kind and description, whether at law, in equity or
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otherwise, whether or not now known or ascertained, which currently do or may exist, including without limitation any matter, cause or claim arising out of or related to any and all acts, events or omissions, occurring prior to the date this Agreement is executed (collectively “Released Claims”).
2.Claims Covered by General Release:
Except as set forth herein, the Released Claims include, but are not limited to, those that have been or could be asserted against any Releasee arising out of, in connection with, or in any way related to (a) Employee’s employment with, or separation from, Theravance; (b) any term or condition of Employee’s employment with Theravance, including but not limited to any and all disputed wages, compensation, salaries, commissions, pay, allowances, monies, expenses/reimbursements, employee benefits, sick/vacation pay, paid leave benefits, any other disputed wage and hour related claims, and any other benefits, penalties, interest, damages, and promises related to the same; and (c) any claims to any equity interest in Theravance, including without limitation stock options, shadow stock, restricted stock, membership units, distribution rights, partnership, stock, and all other forms of equity, except as addressed in paragraph A.3.
Without limiting the foregoing, by way of example only and except as set forth herein, the Released Claims also include any and all claims for severance benefits, attorneys’ fees, indemnification, injunctive relief, breach of contract, promissory estoppel, quantum meruit, breach of the covenant of good faith and fair dealing, violation of public policy, intentional or negligent infliction of emotional distress, intentional or negligent misrepresentation, fraud, defamation, negligent hiring/supervision, assault/battery, constructive discharge, wrongful discharge, retaliation, claims under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1964, the Private Attorneys General Act of 2004 (“PAGA”), the Civil Rights Act of 1866, the Americans with Disabilities Act, the Unruh Act, the Family and Medical Leave Act, the Worker Adjustment and Retraining Notification Act, the Older Workers Benefit Protection Act, the Age Discrimination in Employment Act, the California Fair Employment and Housing Act, the California Labor Code, California Wage Orders, the California Business and Professions Code, the California Family Rights Act, the Pregnancy Disability Leave law, the California Constitution, [the Pennsylvania Human Relations Act, the Pennsylvania Equal Pay Law, the Pennsylvania Minimum Wage Act,] and any other statutory, regulatory or common law claims relating to employment.
Except as set forth herein, all Released Claims are forever waived and barred by this Agreement regardless of the forum in which they may be brought.  The Parties intend for this release to be as broad as legally permissible.
C.Waiver of Unknown Claims – Civil Code Section 1542
In furtherance of the intent to waive, release and discharge Theravance from any and all Released Claims, whether known or unknown, Employee understands and agrees that except as set forth herein the Release stated in paragraph B applies to claims known and presently unknown by Employee; and that this means that if, hereafter, Employee discovers 
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facts different from or in addition to those which Employee now knows or believes to be true, that the release and waiver in paragraph B shall be and remain effective in all respects notwithstanding such different or additional facts or the discovery of such facts.
Accordingly, Employee hereby expressly and knowingly waives, fully and forever, any and all rights and benefits conferred upon Employee by the provisions of Section 1542 of the Civil Code of the State of California and any statutes or legal principles of like effect of any other jurisdiction.  Civil Code Section 1542 states:
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.
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D.Matters Excluded From Released Claims
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Notwithstanding the terms of paragraphs B and C, nothing contained in this Agreement shall be deemed to be a release or waiver by Employee of any claim which cannot be waived or released by private agreement.  In addition, the Released Claims in Paragraph B hereof shall not include:  (a) any benefit entitlements vested as of the date Employee’s employment ended, including pursuant to written terms of any applicable employee benefit plan governed by the Employment Income Security Act of 1974 (“ERISA”); (b) rights under Workers’ Compensation or Unemployment Insurance law; (c) rights under the Theravance Biopharma, Inc. Change in Control Severance Plan except as limited in paragraph A.4; [or] (d) rights arising under this Agreement[; or (e) claims under the Pennsylvania Wage Payment and Collection Law and Pennsylvania Worker and Community Right-to-Know Act].
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This Agreement shall not prohibit Employee from filing a claim with a government agency that is responsible for enforcing a law such as the Securities and Exchange Commission (“SEC”), the National Labor Relations Board (“NLRB”), the Equal Employment Opportunity Commission (“EEOC”), the Department of Fair Employment and Housing (“DFEH”), the Office of Federal Contract Compliance Programs (“OFCCP”) or the Occupational Safety and Health Administration (“OSHA”).  However, unless subject to legal requirements to the contrary, if any, Employee understands that by entering this Agreement, Employee will not be entitled to recover any monetary damages or any other form of personal relief in connection with such a claim, investigation or proceeding.
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This Agreement shall not be construed to prohibit Employee from providing information regarding Employee’s former employment relationship with Theravance as may be required by law or legal process, or from cooperating, participating or assisting in any government or regulatory entity investigation or proceeding.
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E.Proprietary Information
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Employee acknowledges that Employee signed the Theravance Biopharma US, Inc. Proprietary Information and Inventions Agreement (“PIIA”) in connection with Employee’s employment with Theravance.  Employee represents that Employee has not breached the PIIA, including but not limited to by retaining possession or control of any Proprietary Information, Company Documents and/or other Theravance materials, or causing another person or persons to retain possession or control of Proprietary Information, Company documents and/or other Theravance materials, in violation of the PIIA.  Employee understands that the terms of the PIIA survive the termination of Employee’s employment and shall remain binding and enforceable against Employee.  Notwithstanding anything herein to the contrary, an individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.  Nothing herein is intended, or should be construed, to affect the immunities created by the Federal Defend Trade Secrets Act of 2016 or any similar state law.
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If Employee does not possess a copy of the PIIA that Employee signed, a copy may be obtained by contacting Charissa Shaughnessy, cshaughnessy@theravance.com, (650) 465-4546.
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F. Governing Law
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The Parties hereby agree that California law shall govern the construction, interpretation and enforcement of this Agreement.
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G.Severability
The Parties agree that if any provision, or portion thereof, of this Agreement shall for any reason be determined to be invalid, unenforceable or contrary to public policy or any law, it shall if possible be interpreted, modified or reformed as necessary to be enforceable.  If it cannot be interpreted, modified or reformed to be enforceable, such provision or portion thereof that is determined to be invalid, unenforceable, contrary to public policy or law shall be severed and deemed null and void, leaving the remainder of this Agreement in force and effect as a separation agreement and release of claims.
H.Consideration Period
Employee will have forty-five (45) days from November 30, 2021 within which to consider this Agreement and to decide whether to enter it; however, Employee is free to execute it at any time before the expiration of the consideration period.  Employee is hereby advised 
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to consult with an attorney regarding this Agreement; however, Employee is not required to do so.
I.Signing Agreement
If Employee decides to enter this Agreement, it must be signed electronically by completing the DocuSign process linked on the signature line on page 7.  Agreements signed and accepted by the DocuSign process will be automatically forwarded to Theravance.
J.Revocation
Employee will have seven (7) days following Employee’s signing of this Agreement to revoke Employee’s acceptance of it.  To revoke, Employee must deliver a written statement of revocation to Charissa Shaughnessy, cshaughnessy@theravance.com by e-mail or mail or delivery of a physical document addressed to Charissa Shaughnessy, 901 Gateway Boulevard, South San Francisco, CA 94080, no later than midnight on the seventh (7th) day after Employee signed this Agreement.  If Employee revokes within seven (7) days, Employee will receive no benefits under this Agreement.
K.Effective Date
If Employee signs and does not exercise Employee’s right to revoke this Agreement, it shall become effective on the eighth day after Employee signs it.  The severance payment provided for herein shall be paid to Employee on or by the normal Theravance payday following the next payday after the Agreement becomes effective.  COBRA payment and coverage will become effective retroactive to December 1, 2021 if Employee completes the required COBRA documentation.  Settlement of RSUs and Vesting Acceleration will take place as set forth in paragraph A.3.  Receipt of severance benefits is expressly conditioned on Employee’s compliance with the terms of this Agreement, and return of all Theravance property, except for Theravance property Employee receives written permission to retain.
L.Additional Information
Attached hereto as Exhibit 1 is information Theravance is required to provide under the Older Worker Benefit Protection Act in connection with Employee’s release of rights under the Age Discrimination in Employment Act.  Exhibit 1 lists the job titles, ages, and dates of termination for employees selected for inclusion in the reduction in force and eligible for severance benefits, and the job titles and ages of employees considered but not selected for inclusion in the reduction in force who are ineligible for severance benefits.
M.Effect of Agreement
This Agreement, once it has been executed by Employee and has become effective and fully enforceable, will be a full and complete defense to any action or proceeding initiated or prosecuted by Employee concerning rights released and waived herein.  If Employee 
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does not sign this Agreement or revokes Employee’s acceptance after signing Employee will not receive the severance benefits set forth in paragraph A.
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N.Entire Agreement
This Agreement constitutes the entire agreement between the Parties regarding the matters set forth herein, and no amendment or modification will be effective unless in writing and signed by the party against whom enforcement is sought.  This Agreement supersedes and replaces all agreements currently in effect between Employee and Theravance regarding the subjects addressed herein, except for those agreements expressly identified herein as continuing in effect.
I knowingly and voluntarily agree to the terms of this Agreement.
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	Dated:
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	By:
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	Signature

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	Print Name

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	Dated:
	November 30, 2021
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	Theravance Biopharma US, Inc.

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