Document:

Exhibit 10.10

 Exhibit 10.10 

 
 

 
 January 20, 2012 
 Dr. Athena Countouriotis 
 2295 Galena Avenue 

Carlsbad, CA 92009 
 Dear Athena: 

I am very pleased to make you an offer to join Ambit Biosciences Corporation (the “Company”). This letter sets forth the terms of our offer for
you to join the Company. 
  

					
	Position:	  	Chief Medical Officer
		
	Start Date:	  	The tentative start date, to be agreed upon by you, will be February 8, 2012.
		
	Reporting Relationship:	  	You will report directly to Michael A. Martino, President & Chief Executive Officer. It is currently anticipated that Ambit’s clinical, regulatory and
project management functions will report to you.
		
	Major Responsibilities:	  	Your responsibilities will include, but not be limited to:
		  	  
 •
	  	  
 Managing and developing a high performing regulatory affairs and
clinical development organization;

		  	  
 •
	  	  
 Providing clinical development insight and leadership to ensure
that the Company achieves its’ major goals, appropriately resetting priorities and identifying compelling new opportunities;

		  	  
 •
	  	  
 Liaising effectively with multiple internal functions,
particularly finance and business development;

		  	  
 •
	  	  
 Providing leadership to drug development and clinical operations
strategies and execution plans spanning drug discovery to clinical Phases l-IV;

		  	  
 •
	  	  
 Designing and executing clinical trials to aggressive timelines
and budgets;

		  	  
 •
	  	  
 Developing and maintaining key thought leader
relationships;

		  	  
 •
	  	  
 Being a member of key management and steering committees with
third party CRO’s, collaborative partners, etc., who are part of the Company’s drug discovery, research and clinical development efforts;

		  	  
 •
	  	  
 Serving as the clinical lead for advisory
meetings;

		  	  
 •
	  	  
 Leading the development and execution of the clinical strategy,
and expand the capabilities of the clinical team in support of Ambit’s growth strategy; and

		  	  
 •
	  	  
 Representing the Company at meetings with the FDA, EMEA,
analysts and investors.

			
	Location:	  		  	You will be based in San Diego, California.

  
 Ambit
Biosciences Corporation 
 4215 Sorrento Valley Boulevard 
 San Diego, CA 92121 
 tel 858-334-2100 fax 858-334-2198 

www.ambitbio.com 

			
	Compensation:	  	You will be a regular full-time, exempt employee. You will receive a gross monthly salary of $27,916.67 (equivalent to $335,000 on an annualized basis) which will be paid
semi-monthly in arrears in accordance with the Company’s normal payroll procedures. During your first two years of employment, in addition to the foregoing monthly base salary, you also will receive gross monthly payments of $2,500 (equivalent
to an additional $30,000 on an annualized basis and $60,000 in total over such two year period). Thus, during such two year period, your gross annual salary will effectively be $365,000. If, during the term of your employment but prior to the
expiration of such two-year period and prior to an initial public offering by the Company, a Covered Transaction (defined below) occurs and your employment is terminated by the Company without Cause (defined below), the Company will pay you in a
lump sum concurrent with such termination any unpaid portion of such additional $60,000 gross salary (offset to the extent the gross salary actually paid to you by the Company prior to such termination exceeds the amounts provided for
above).
		
		  	For purposes of this Agreement:
		
		  	“Covered Transaction” means the occurrence, in a single transaction or in a series of related transactions of the first to occur of the following events that also
constitutes a change in the ownership or effective control of the Company, or a change in the ownership of a substantial portion of the Company’s assets, as described in Treasury Regulations Section 1.409A-3(i)(5): (1) a merger or consolidation
of the Company in which the Company’s stockholders immediately prior to such transaction do not immediately following such transaction own at least a majority of the surviving corporation’s voting shares; (2) a sale of all or substantially
all of the Company’s assets or (3) a sale or other transfer of shares of the Company’s capital stock as a result of which the Company’s stockholders immediately prior to such transaction do not immediately following such transaction
own at least a majority of the surviving corporation’s voting shares, other than a transaction involving the issuance of shares by the Company primarily for the purpose of raising capital for the Company.
		
		  	“Cause” means the occurrence of any of the following: (i) your conviction of any felony or any crime involving fraud or dishonesty that has a material adverse effect on
the Company; (ii) your active participation (whether by affirmative act or material omission) in a fraud, act of dishonesty or other act of misconduct against the Company and/or its affiliates; (iii) conduct by you which, based upon a good faith and
reasonable factual investigation by the Board of Directors of the Company (the “Board”), demonstrates your gross unfitness to serve; (iv) your material violation of any statutory or fiduciary duty, or duty of loyalty, owed to the Company;
(v) your breach of any material term of any material contract between you and the Company and the failure to cure such breach within 30 days of written notice; or (vi) your repeated violation of any material Company policy. An occurrence of
“cause” as set forth in the preceding sentence shall be based upon a good faith determination by the Board. The determination that a termination is for Cause shall be by the Board in its sole and exclusive judgment and
discretion.
		
		  	“Complete Disability” means your inability to perform your duties under this Agreement, whether with or without reasonable accommodation, because you have become
permanently disabled within the meaning of any policy of disability income insurance covering employees of the Company then in force. In the event the Company has no policy of disability income insurance covering employees of the Company in force
when you become disabled, the term “Complete Disability” shall mean your inability to perform your duties under this Agreement, whether with or without reasonable accommodation, by reason of any incapacity, physical or mental, which the
Board, based upon medical advice or an opinion provided by a licensed physician acceptable to the Board, determines to have incapacitated you from satisfactorily performing all of your usual services for the Company, with or without reasonable
accommodation, for a period of at least one hundred twenty (120) days during any twelve (12) month period (whether or not consecutive). Based upon such medical advice or opinion, the determination of the Board shall be final and binding and the date
such determination is made shall be the date of such Complete Disability for purposes of this Agreement.

			
	Equity:	  	Following commencement of your full-time employment we will recommend to the Board that you be granted an option to purchase up to 1,250,000 shares of Common Stock of the Company
at the current fair market value as determined by the Board. The option will vest according to the following schedule: 25% of the shares subject to the option shall vest on the first anniversary of your start date and the remainder shall vest at a
rate of one forty-eighth (1/48) each month thereafter until the option is fully vested on the fourth anniversary of your start date, in each case so long as you remain employed with the Company. The option will be subject to the terms of the
Company’s Amended and Restated 2011 Equity Incentive Plan (the “Plan”) and related form of stock option grant agreement (the “Option Agreement”).
		
		  	Following the first closing during the term of your employment of the next equity financing transaction in which the Company issues shares of Preferred Stock to investors (other
than shares issued in the Second Tranche Closing pursuant to Section 2.2 of the Series D-2 and Series D-3 Preferred Stock and Warrant Purchase Agreement dated May 9, 2011 among the Company and the Purchasers named therein, as such Agreement is in
effect on the date hereof) (the “Next Equity Financing”), we will recommend to the Board that you be granted an additional stock option pursuant to the Plan to purchase that number of shares of Common Stock of the Company which, together
with all shares of Common Stock of the Company issued or subject to stock options previously granted to you, represents in the aggregate not less than 1% of the fully-diluted capitalization of the Company (defined below) immediately following such
Next Equity Financing; provided, however, that if such Next Equity Financing is an External Equity Financing (defined below), then solely for purposes of calculating the number of shares of Common Stock of the Company issuable pursuant to such
additional stock option, the number of shares issued pursuant to such External Equity Financing shall be deemed to be the number determined by dividing the aggregate consideration paid for the shares of Preferred Stock issued in such External Equity
Financing by the greater of (a) the price per share at which such shares of Preferred Stock were actually issued or (b) $0.70.
		
		  	“External Equity Financing” means the next equity financing transaction in which the Company issues shares of Preferred Stock to investors including new, external
investors none of whom (together with their affiliates) are existing investors in the Company. Such option will have an exercise price equal to the fair market value of the Company’s Common Stock on the date of grant and will be subject to a
time based vesting schedule that commences as of the date of grant of such option on terms substantially consistent with the vesting schedule set forth above for your initial option grant.
		
		  	“Fully-diluted capitalization of the Company” means (1) all issued and outstanding equity securities of the Company, (2) all shares issuable upon the conversion,
exercise, or exchange of any outstanding options, warrants, or other convertible or exchangeable securities of the Company (but excluding shares issuable upon the exercise of warrants that are not, as of the date of this agreement, exercisable), (3)
all shares to be issued in the Second Tranche Closing pursuant to Section 2.2 of the Series D-2 and Series D-3 Preferred Stock and Warrant Purchase Agreement dated May 9, 2011 among the Company and the Purchasers named therein, as such Agreement is
in effect on the date hereof, (4) all shares reserved for future issuance pursuant to the Plan and (5) all shares issuable to GrowthWorks Canadian Fund Limited Ltd. (“GrowthWorks”) pursuant to the terms of the Amended and Restated Put
Agreement among the Company, GrowthWorks and Ambit Biosciences (Canada) Corporation dated as of October 30, 2007, as amended.
		
	Incentive Bonus:	  	You will be eligible to receive a discretionary annual incentive bonus, initially targeted at up to 30% of your annual base salary. Payment of the bonus is conditional on
meeting

			
		  	corporate and individual goals as determined by the Board in its sole discretion. Bonus payout is pro-rated based on hire date. Any awarded bonus will be paid not later than
March 15 of the year following the year in which your right to such amount became vested.
		
	Severance:	  	In the event of your termination of employment for any reason the Company shall pay your base salary and accrued and unused vacation benefits earned through the date of
termination, at the rate in effect at the time of termination, less standard deductions and withholdings (the “Accrued Benefits”).
		
		  	If you are terminated without Cause, in addition to the Accrued Benefits, provided that you furnish to the Company an executed waiver and release of claims in the form attached
hereto as Exhibit A (the “Release”) within the time period specified therein but in no event later than forty-five (45) days following your termination, and if you allow such Release to become effective in accordance with its terms,
then you shall be entitled to the following “Severance Benefits”: (i) continuation of your base salary, at the rate in effect at the time of termination, for a period of six (6) months following the termination date and (ii) assuming that
you timely elect COBRA continuation coverage, the Company shall pay directly to the insurance provider the premium for COBRA continuation coverage for you and your family for a period of twelve (12) months following the termination date (the
“COBRA Payment Period”) or until the effective date of new healthcare coverage eligibility available through new employment, whichever comes first. Such severance payments will be subject to standard payroll deductions and withholdings and
will be made on the Company’s regular payroll cycle, provided, however, that any severance payments otherwise scheduled to be made prior to the effective date of the Release shall accrue and be paid in the first payroll period that follows such
effective date. In addition, if such termination without Cause, occurs within the twelve (12) months immediately following the effective date of a Covered Transaction, so long as if you have furnished to the Company an executed Release within the
time period specified therein but in no event later than forty-five (45) days following your termination and such Release has become effective in accordance with its terms, the vesting of any unvested shares subject to any stock options theretofore
granted to you pursuant to the Plan shall accelerate such that you shall become vested in one hundred percent (100%) of such options on the effective date of the Release.
		
		  	Notwithstanding the foregoing, if the Company determines, in its sole discretion, that the Company cannot provide the COBRA premium benefits without potentially incurring
financial costs or penalties under applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof pay you a taxable cash amount, which payment shall be made regardless of whether you
or your eligible family members elect COBRA continuation coverage (the “Health Care Benefit Payment”). The Health Care Benefit Payment shall be paid in monthly installments on the same schedule that the COBRA premiums would otherwise have
been paid to the insurer. The Health Care Benefit Payment shall be equal to the amount that the Company would have otherwise paid for COBRA insurance premiums (which amount shall be calculated based on the premium for the first month of coverage),
and shall be paid until the earlier of (i) expiration of the COBRA Payment Period, or (ii) the date you become eligible to enroll in a healthcare insurance plan offered by another employer or entity.
		
		  	You are not entitled to the Severance Benefits in the event of your resignation for any reason, or a termination of employment due to your death or Complete Disability. In such
termination, you are only entitled to the Accrued Benefits, and any benefits to which you may be entitled under the terms of the Company’s life and disability benefit plans in which you participate, if any.
		
		  	Following payment of the Accrued Benefits and any Severance Benefits to which you may be entitled, the Company shall thereafter have no further obligations to you under this
Agreement, except as otherwise provided by law (and except as provided otherwise

			
		  	in your stock option agreements with the Company). Nothing in this Agreement or in the Release is intended to modify any right to benefits that you may have under the “Carve
Out Benefit” letter agreement entered into concurrently with this Agreement (the “Carve Out Agreement”).
		
		  	It is intended that all of the severance benefits and other payments payable under this letter satisfy, to the greatest extent possible, the exemptions from the application of
Code Section 409A provided under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9), and this letter will be construed to the greatest extent possible as consistent with those provisions, and to the extent not so exempt, this
Agreement (and any definitions hereunder) will be construed in a manner that complies with Section 409A. For purposes of Code Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), your right
to receive any installment payments under this letter (whether severance payments, reimbursements or otherwise) shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all
times be considered a separate and distinct payment.
		
	Benefits:	  	The beginning of the month following your start as a full-time employee you and your eligible dependents will be able to enroll in the following insurance plans: medical, dental,
vision, life, AD&D, and disability. You will also be eligible for our 401(k) and flexible benefit plans.
		
		  	You will accrue paid personal leave (PPL) according to Company guidelines. In your first year as a full-time employee you will accrue 20 days of PPL. The Company has also
established 12 paid holidays per calendar year.

 Except as otherwise provided in an agreement between you and the Company, if any payment or benefit that you would
receive from the Company or otherwise in connection with a Change in Control (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for
this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount (as defined herein). The “Reduced Amount”
shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after
taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in your receipt, on an after-tax basis, of the greater amount of the
Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount,
reduction shall occur in the manner that results in the greatest economic benefit for you. If more than one method of reduction will result in the same economic benefit for you, the items so reduced will be reduced pro rata. Within any such category
of payments and benefits, a reduction shall occur first with respect to amounts that are not “deferred compensation” within the meaning of Section 409A of the Code and then with respect to amounts that are. In the event it is
subsequently determined by the Internal Revenue Service that some portion of the Reduced Amount as determined pursuant to clause (x) in the preceding paragraph is subject to the Excise Tax, you agree to promptly return to the Company a
sufficient amount of the Payment so that no portion of the Reduced Amount is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount is determined pursuant to clause (y) in the preceding paragraph, you will have no
obligation to return any portion of the Payment pursuant to the preceding sentence. 
 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, upon not less than 30 days advance written notice to the Company. The Company is free to conclude its
employment relationship with you at any time, with or without cause, and with or without notice. 
 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. 

 As a Company employee, you will be expected to abide by Company rules and regulations. You will be
specifically required to sign an acknowledgment that you have read and understand the Company rules of conduct, which is included in our employee handbook. You will also be expected to sign and comply with an Employee Proprietary Information and
Inventions 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 proprietary information. 

In your continued work for the Company, you will be expected not to use or disclose any confidential information, including trade secrets, of any former
employer or other person to whom you have an obligation of confidentiality. Rather, you will be expected to use only that information which is generally known and used by persons with training and experience comparable to your own, which is common
knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company. You agree that you will not bring onto the Company’s premises or use in your work for the Company any unpublished
documents or property belonging to any former employer or third party that you are not authorized to use and disclose. You represent further that you have disclosed to the Company any contract you have signed that may restrict your activities on
behalf of the Company. By accepting continued employment with the Company, you are representing that you will be able to perform your job duties within these guidelines. 
 To ensure the rapid and economical resolution of disputes that may arise in connection with your employment with the Company, you and the Company agree that any and all disputes, claims, or causes of
action, in law or equity, arising from or relating to your employment, or the termination of that employment, will be resolved, to the fullest extent permitted by law, by final, binding and confidential arbitration pursuant to both the substantive
and procedural provisions of the Federal Arbitration Act in San Diego, California conducted by the Judicial Arbitration and Mediation Services/Endispute, Inc. (“JAMS”), or its successors, under the then current rules of JAMS
for employment disputes; provided that 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 including the arbitrator’s essential findings and conclusions and a statement of the award. Accordingly, you and the Company hereby waive any right to a jury trial. Both you and the Company shall be entitled to all rights
and remedies that either you or the Company would be entitled to pursue in a court of law. The Company shall pay any JAMS filing fee and shall pay the arbitrator’s fee. Nothing in this Agreement is intended to prevent either you or the Company
from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Notwithstanding the foregoing, you and the Company each have the right to resolve any issue or dispute involving confidential,
proprietary or trade secret information, or intellectual property rights, by court action instead of arbitration. 
 To indicate your acceptance
of the Company’s offer, please sign and date this letter in the space provided below and return it to Emily Derr, Human Resources Manager. A duplicate original is enclosed for your records. This letter, along with the agreement 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, whether written or oral. This letter may not be modified or amended except by a written
agreement, signed by an officer of the Company and by you. If a response is not received by Monday January 30, 2012, this offer will be considered null and void. 
 We look forward to working with you at Ambit Biosciences Corporation. We hope that you will decide to join us as we strive to build a world-class company. 

 

	
	Sincerely,
	
	Ambit Biosciences Corporation
	
	 /s/ Michael A. Martino

	Michael A. Martino
	President & Chief Executive Officer
	
	ACCEPTED AND AGREED TO this

	
	24 Day of JANUARY, 2012
	
	 /s/ Athena Countouriotis

	Athena Countouriotis
	
	Enclosure
	Duplicate Offer LetterExhibit 10.11

 Exhibit 10.11 

 
 

 
 January 20, 2012 
 Dr. Athena Countouriotis 
 2295 Galena Avenue 

Carlsbad, CA 92009 
 Re: Carve Out Plan Benefits

 Dear Dr. Countouriotis, 
 This letter confirms our agreement with respect to certain benefits related to your services as Chief Medical Officer of Ambit Biosciences Corporation (“Ambit”). 

Carve-Out Benefits. 
 (i)
Success Fee. If at any time while you are serving as Chief Medical Officer pursuant to that certain Employment Agreement dated on even date herewith (the “Employment Agreement”) (or during the six (6) month period
after termination of your service as Chief Medical Officer if such service shall have been terminated without Cause (as defined in the Employment Agreement)) and prior to the Success Fee Expiration Date (defined below), a Covered Transaction (as
defined in the Employment Agreement) that either (a) meets the Price Minimum (defined below) or (b) for which the Ambit board of directors (the “Board”) has waived the Price Minimum, shall have been consummated, you
shall be eligible to receive, subject to the terms of this letter agreement, a payment (the “Success Fee”) in an amount equal to your Vested Equity Percentage Interest (defined below) multiplied by
the Aggregate Gross Proceeds (defined below) actually paid or distributed pursuant to such Covered Transaction to Ambit’s stockholders and holders of options, warrants or other rights to Preferred Stock or Common Stock by reason of their
ownership thereof and/or paid or distributed directly to Ambit. Notwithstanding the foregoing, however, the amount of any Success Fee payable to you shall be reduced dollar-for-dollar by any Aggregate Gross Proceeds actually paid to you pursuant to
such Covered Transaction by reason of your equity position in Ambit, whether by common stock ownership, the exercise or cash-out of stock options or otherwise. In no event will the Success Fee be payable with respect to any Covered Transaction other
than the first Covered Transaction that occurs following the date of this letter agreement. 
 (ii) Payment of Success
Fee. Any Success Fee to which you become entitled hereunder shall be paid in the same forms (i.e., in cash, stock and/or other property) and in the same proportions as the Aggregate Gross Proceeds are paid by the acquirer in such Covered
Transaction to Ambit’s stockholders or Ambit, as applicable. Any securities that are issued to 
  

  
 Ambit
Biosciences Corporation 
 4215 Sorrento Valley Boulevard 
 San Diego, CA 92121 
 tel 858-334-2100    fax 858-334-2198

 www.ambitbio.com 
  

1 

 
you as part of a Success Fee payment will be subject to the same or similar restrictions as imposed by the acquiring company on the securities distributed to Ambit’s stockholders or Ambit,
as applicable, on the terms set forth in the agreement pursuant to which the Covered Transaction occurs. Except as provided in subsections (iii) and (iv) below, any Success Fee to which you become entitled hereunder shall be paid within
ten (10) business days after the Aggregate Gross Proceeds are paid to Ambit’s stockholders and holders of options, warrants or other rights to Preferred or Common Stock Preferred or, in the case of an asset sale, are paid to Ambit, but in
no event later than thirty (30) days following the Closing (defined below) of the Covered Transaction. 
 (iii) Payments of Unvested Contingent Consideration Amounts. If and to the extent the Aggregate Gross Proceeds include any Contingent Consideration (defined below), the Success Fee payable with
respect thereto (i.e., a pro-rata portion of the Success Fee) will be Unvested Consideration (defined below). In addition, and for clarity, if at the closing of a Covered Transaction the Price Minimum has not been met but by reason of the payment of
Contingent Consideration following the Closing the Price Minimum is thereafter met (such applicable date is the “Success Fee Vesting Date”), the Company and its successor shall ensure that you receive a Success Fee catch-up
payment, and any future related payments of Contingent Consideration, as if the Price Minimum had been met upon the Closing. If applicable, such initial catch-up payment shall be made to you no later than thirty (30) days following the Success
Fee Vesting Date. If the Conditions (defined below) to payment of a portion of the Contingent Consideration are satisfied, the related portion of the Unvested Consideration will be paid to you within ten (10) business days after such portion of
the Contingent Consideration is paid to Ambit or its stockholders but in no event later than the earlier of (A) thirty (30) days following the date on which the applicable Condition is satisfied, or (B) the fifth (5th) anniversary of the Closing. If as of the fifth
(5th) anniversary of the Closing any Unvested Consideration would otherwise continue to remain subject to outstanding Conditions on payment, you shall be paid such portion of the Unvested Consideration related to such Conditions, subject to any
reduction made by the Board based on the Fair Market Value (as of the fifth (5th) anniversary of the Closing) of the Unvested Consideration as a result of the existence of the Conditions (that is, the present value of the pro-rata portion of the Success Fee that may be earned
upon satisfaction of the Conditions), in a lump sum on the fifth (5th) anniversary of the Closing. If the Price Minimum is not met prior to the fifth (5th) anniversary of the Closing, then in no event will you receive payment of any Success Fee. 

(iv) The following provisions in this subsection (iv) shall apply only if the Price Minimum is met upon the
Closing. To the extent that a Condition, when applied to the Success Fee, would not constitute a “substantial risk of forfeiture” (as defined in Treasury Regulations Section 1.409A-l(d)), such that the Unvested
Consideration related to such Condition would not be reasonably likely to be payable in compliance with either Treasury Regulation Section 1.409A-l(b)(4) or Treasury Regulation Section 1.409A-3(i)(5)(iv)(A), or to the extent the Board
determines the Unvested Consideration is not otherwise payable in compliance with or under an exemption from Section 409A, you shall be paid the portion of the Unvested Consideration related to such Condition, subject to any reduction made by
the Board based on the Fair Market Value (as of the Closing) of the Unvested Consideration as a result of the existence of the Conditions (that is, the present value of the Success Fee that may be earned upon satisfaction of the Conditions), in a
lump sum on the thirtieth (30th) day following the
Closing. 

  
 2 

 (v) Additional Definitions. For all purposes of this letter agreement, the following
terms have the following meanings: 
 “Aggregate Gross Proceeds” means, in the case of a Covered
Transaction other than the sale of all or substantially all of Ambit’s assets, the sum of (i) the aggregate amount actually paid or distributed, directly or indirectly, to Ambit stockholders as consideration for those securities in
consummation of such Covered Transaction plus (ii) the aggregate amount paid in such Covered Transaction to the holders of stock options, warrants or other stock rights relating to Ambit’s Preferred or Common Stock as consideration for
those securities in consummation of such Covered Transaction. The amount of the Aggregate Gross Proceeds determined as aforesaid shall be determined in good faith by the Board. In the case of a Covered Transaction that is the sale of all or
substantially all of Ambit’s assets, “Aggregate Gross Proceeds” shall mean the amount determined by the Board in good faith that would be distributed to the holders of (i) Ambit’s Preferred and Common Stock and
(ii) stock options, warrants or other stock rights relating to Ambit’s Preferred or Common Stock if all of the assets of Ambit were sold for their fair market value and all of the liabilities paid (and adequate provision made for
liabilities of Ambit) and any net proceeds distributed to such holders. 
 “Code” means Internal Revenue
Code of 1986, as amended. 
 “Closing” will mean the initial closing of the Covered Transaction as
defined in the definitive agreement executed in connection with the Covered Transaction. In the case of a series of transactions constituting a Covered Transaction, “Closing” means the first closing that satisfies the
threshold of the definition for a Covered Transaction. 
 “Conditions” mean the same conditions
(including but not limited to any escrow arrangement, indemnity obligation, or earn-out) on payment imposed on the Company and/or its stockholders with respect to their rights to the Contingent Consideration. 

“Contingent Consideration” means consideration payable with respect to a Covered Transaction after the closing of
such Covered Transaction to the Company and/or its stockholders, the receipt of which is contingent upon the passage of time or the occurrence or non-occurrence of some future event(s) or circumstance(s), including, without limitation, amounts of
consideration paid at a subsequent closing, and amounts of consideration subject to an escrow, a purchase price adjustment, an earn-out or indemnity claims. 
 “Fair Market Value” will be the value determined by the Board as of the applicable date in its sole discretion in accordance with Section Code 409A to the extent applicable, and
such determination will be final and binding. 
 “Price Minimum” means that the assets distributable or
payable to the holders of Series D-2 Preferred Stock and Series D-3 Preferred Stock (or the holders of shares of Common Stock issued upon conversion of the Series D-2 Preferred Stock and Series D-3 Preferred Stock) pursuant to a Covered Transaction
have a fair market value as determined in good faith by the Board at least equal to, in the aggregate, the product of (A) $0.89 (as adjusted for any stock 

  
 3 

 
splits, dividends and the like after the date hereof) and (B) the total number of shares of Series D-2 Preferred Stock and Series D-3 Preferred Stock (or such shares of Common Stock, as
applicable) outstanding immediately prior to such Covered Transaction. If the assets so distributable or payable with respect to a Covered Transaction do not equal or exceed the Price Minimum as of the closing thereof but subsequently, by reason of
the payment of Contingent Consideration, do equal or exceed the Price Minimum, then such Covered Transaction shall be deemed, retroactively as of such closing, to have met the Price Minimum (and the Company and any successor shall ensure that all
applicable payments shall be made to you as if the Price Minimum had been met as of such closing). 
 “Section
409A” means Section 409A of the Code and the Treasury Regulations and other guidance issued thereunder and any state law of similar effect. 

“Success Fee Expiration Date” means the date that Ambit shall have consummated an initial public offering of
shares of Ambit’s common stock for the account of Ambit pursuant to a Registration Statement on Form S-l (or successor form) filed with and declared effective by the United States Securities and Exchange Commission. 

“Unvested Consideration” means the portion of the Success Fee that is subject to the same Conditions on payment
of Contingent Consideration as are imposed on Ambit or its stockholders generally. 
 “Vested Equity Percentage
Interest” means the percentage of the fully-diluted capitalization of Ambit as of immediately prior to the closing of a Covered Transaction represented by all shares of Ambit’s Common Stock then owned by you or that are issuable
upon the conversion, exercise, or exchange of any outstanding options, warrants or other securities then owned by you, but in each case only to the extent such Common Stock, options, warrants and other securities are (i) then vested and not
subject to any repurchase right in favor of Ambit or (ii) will become vested and not subject to any such repurchase right by reason of the consummation of such Covered Transaction. 
 Parachute Payment. 
 In the event the benefits provided by this letter
agreement (the “Payment”), when aggregated with any other payments or benefits received by you, would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code and
(ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be reduced to the Reduced Amount. The “Reduced Amount”
shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount,
after taking into account all applicable federal, state and local income taxes and the Excise Tax (all computed at the highest applicable marginal rate), results in your receipt, on an after-tax basis, of the greater amount of the Payment
notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting a “parachute payment” is necessary so that the Payment equals the Reduced Amount,
such reduction shall occur in the manner that results in the greatest economic benefit for you. If more than one method of reduction will result in the same economic benefit for you, 

  
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the items so reduced will be reduced pro rata. Within any such category of payments and benefits, a reduction shall occur first with respect to amounts that are not “deferred
compensation” within the meaning of Section 409A of the Code and then with respect to amounts that are. 
 In the
event it is subsequently determined by the Internal Revenue Service that some portion of the Reduced Amount as determined pursuant to clause (x) in the preceding paragraph is subject to the Excise Tax, you agree to promptly return to the
Company a sufficient amount of the Payment so that no portion of the Reduced Amount is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount is determined pursuant to clause (y) in the preceding paragraph, you will have
no obligation to return any portion of the Payment pursuant to the preceding sentence. 
 The accounting firm engaged by Ambit
for general tax purposes shall perform the foregoing calculations. Ambit shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. 

The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting
documentation, to you and Ambit within seven (7) business days after the date on which your right to a Payment is triggered (if requested at that time by you or Ambit) or at such earlier time as requested by you or Ambit. If the accounting firm
determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish you and Ambit with an opinion reasonably acceptable to you that no Excise Tax will be imposed with
respect to such Payment. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon you and Ambit. 
 In the event the payment of any amounts pursuant to this letter agreement would result in your being subject to an Excise Tax (without giving effect to any reduction in such payments to the Reduced
Amount), at your request in your sole discretion, Ambit will use its commercially reasonable best efforts to obtain a vote of the stockholders of Ambit approving such payments in the manner set forth in Section 280G(b)(5)(B) of the Code and the
Treasury Regulations issued thereunder such that the payments would not be subject to the Excise Tax if the required stockholder approval is obtained. In the event you so request that such a vote be taken, you agree to execute a waiver and enter
into such additional agreements as may be reasonably requested by Ambit in relation thereto, including, without limitation, agreeing that the portion of such payments that would otherwise, if made, result in your becoming liable for the Excise Tax
will not be made if the required stockholder approval is not obtained. 
 Section 409A Compliance. 

It is intended that each installment of the payments provided under this letter agreement is a separate “payment” for purposes
Section 1.409A-2(b)(2)(i) of the Treasury Regulations. For the avoidance of doubt, it is intended that the Success Fee payment satisfies, to the greatest extent possible, the exemption from the application of Section 409A provided under
Treasury Regulations Section 1.409A-l(b)(4) and, to the extent not so exempt, that the Success Fee 

  
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payment complies, and the terms of this letter agreement be interpreted to the greatest extent possible as consistent, with the requirements of Treasury Regulations
Section 1.409A-3(i)(5)(iv)(A) – that is, as “transaction-based compensation.” or as payable upon a permitted specified date and/or payment event in compliance with the requirements of Section 409A. 

If the foregoing correctly conforms to your understanding of the agreement between you and Ambit, please sign and date the enclosed copy
of this letter and return it to us. 
 Very truly yours, 
 AMBIT BIOSCIENCES, INC. 
  

	
	 /s/ Michael A. Martino

	 Michael A. Martino
 Chief
Executive Officer

	
	Accepted and agreed:
	
	 /s/ Athena Countouriotis

	Athena Countouriotis

  
 6

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