Document:

(Begin typing here)

December 14, 2001

 

VIA HAND DELIVERY

 

Robin Kehoe

 

Dear Robin:

 

As you know, due to your

medical condition and other personal reasons, you have asked to work a

substantially reduced work schedule until your resignation is effective

(expected to be on or before October 31, 2002).  Pharsight Corporation (the “Company”) is willing to accommodate

your requests, on the terms and conditions set forth in this letter agreement

(the “Agreement”).

 

1.       Reduced Work Schedule.  The Company will grant your request to work

a reduced work schedule as follows:

 

(a)          Half-Time

Schedule.  You will work a

half-time work schedule of approximately twenty (20) hours per week from

September 4, 2001 through October 26, 2001 (the “Half-Time Schedule”).

 

(b)         Reduced Work

Schedule.  After October 26,

2001 and continuing through your resignation which is expected to be effective

on or before October 31, 2002 (the “Separation Date”) you will work a reduced

work schedule of approximately sixteen (16) hours per month (the “Reduced Work

Schedule”).  During the Reduced Work

Schedule, you will not have regular work hours and will not be expected to come

to the office on a daily basis.  Rather,

you agree to work for the Company at the Company’s reasonable requests, and you

agree to respond to the Company’s requests for information and to provide

transitioning assistance as necessary or requested by the Company.  Unless mutually agreed upon by you and the

Company, you will not be expected to work more than sixteen (16) hours per

month during the Reduced Work Schedule, except that you agree to work up to an

additional eighty (80) hours on special projects on a mutually agreed upon

schedule. In addition, during the Reduced Work Schedule you will have no

authority to bind the Company (or to represent that you have the authority to

bind the Company) to any contractual obligations, whether written, oral or

implied, unless you first obtain written authorization from the Company’s Chief

Executive Officer.  You hereby agree

that during the Reduced Work Schedule, you will not represent or purport to

represent the Company in any manner whatsoever to any third party unless

authorized to do so by the Company’s Chief Executive Officer.

 

1

 

(c)          Stock

Option(s).  For the purposes

of the stock option grant(s) provided to you by the Company and the early

exercise or stock purchase agreements between you and the Company attached

hereto as Collective Exhibit A (collectively, the “Stock Agreements”), your

employment with and continuous service to the Company will continue during the

Half-Time Schedule and the Reduced Work Schedule and, in accordance with the

terms, conditions and limitations of the Stock Agreements and the Company’s

stock option plan, shares vesting will continue while you remain employed by

the Company.

 

(d)         Employee

Benefits.  Pursuant to the

terms, conditions and limitations of the Company’s employee benefit plans, you

will continue to be eligible for the Company’s regular employee benefits during

the Half-Time Schedule and Reduced Work Schedule.

 

(e)          Concurrent Medical or Disability Leave Benefits.  You agree that any and all medical or

disability leave benefits or entitlements that you may have (including, but not

limited to, any rights to medical or disability leave under the federal Family

and Medical Leave Act and the California Family Rights Act) will run

concurrently with, and are not in addition to, the Half-Time Schedule and the

Reduced Work Schedule.

 

(f)            Other

Activities.  If you first

obtain the written authorization of the Company, you may engage in other

employment or consulting relationships during the Half-Time Schedule and the

Reduced Work Schedule, provided that such relationships do not involve working

or consulting for a competitor of the Company or otherwise unreasonably

interfere with your employment relationship with the Company.  If you are uncertain whether an entity is a

competitor of the Company, you shall, in advance of providing any services to

the entity, notify the Company in writing of the name of the entity and provide

a written description of the employment position or consulting services to be

provided.  Within seven (7) days of its

receipt of such written notification, the Company will advise you of its

decision regarding whether it will consent to this proposed relationship, which

consent will not be unreasonably withheld. 

Notwithstanding anything to the contrary stated herein, the Company may

terminate your employment and this Agreement immediately without any contractual

obligations to you, if you provide consulting or employment services to a

competitor of the Company without the Company’s written consent.

 

2.       Compensation During Half-Time Schedule and Reduced Work Schedule. 

You will receive the following compensation during the Half-Time

Schedule and Reduced Work Schedule, so long as your employment continues during

such time:

 

(a)          Base

Salary. Although it is not

obligated to do so, during the Half-Time Schedule and Reduced WorkSchedule, the

Company will pay you your base salary in effect on September 4, 2001 (your

full-time base salary rate), subject to standard payroll deductions and

withholdings and paid on the Company’s normal payroll schedule (the “Salary

Payments”).

 

2

 

(b)          Pro-Rated Annual Bonus.  You

will be eligible to receive a pro-rated annual bonus for FY/2002. The amount of

the pro-rated annual bonus will include consideration of the amount of work you

perform during FY/2002.  You acknowledge

and agree that you will not be eligible for, and will not receive, any bonus,

incentive compensation, or other compensation (other than the Salary Payments),

for your work performed in FY/2003.

 

3.       Resignation of Employment.  As noted above, the Company has agreed to accept

your resignation effective October 31, 2002 (the “Separation Date”).  If you seek to implement your resignation

prior to the Separation Date, you agree that the Company is not obligated to provide the Salary Payments or the

severance benefits pursuant to Paragraph 5.

 

4.       Severance Benefits.  Although the

Company has no policy or procedure for providing severance benefits, if you

accept this Agreement and comply fully with it throughout the Half-Time

Schedule and Reduced Work Schedule, the Company agrees to provide you with the

severance benefits stated in this Paragraph as your sole severance benefits,

provided that, on the Separation Date, you execute and return to the Company

the Supplemental Release attached hereto as Exhibit B.  The severance benefits that the Company will

provide hereunder are:

 

(a)          Accelerated

Vesting of Stock Option Grant(s).  The shares in your

stock option grant(s) that are unvested as of the Separation Date will be

subject to accelerated vesting, so that your stock option grant(s) will be

fully exercisable effective as of the Separation Date.  You will be able to exercise your vested

shares within ninety (90) days after the Separation Date in accordance with the

terms of your stock option grant(s).  For those stock option grants you exercised prior to the

Separation Date, effective as of the Effective Date of the Supplemental

Release, the Company will waive its rights under the Stock Agreements to

repurchase any unvested shares from you.

 

(b)         Forgiveness of Shareholder Promissory

Notes.  Effective as of the

Effective Date of the Supplemental Release, the Company will forgive the full

principal and accrued interest amounts owed to it by you pursuant to the three

Promissory Notes that are attached hereto as Collective Exhibit C.

 

5.       Other

Compensation or Benefits.  You

acknowledge that, except as expressly provided in this Agreement, you will not

receive any compensation (including pay or bonuses), stock option or stock

vesting, severance or benefits from the Company during the Half-Time Schedule,

the Reduced Work Schedule or after the Separation Date.

 

6.       Expense Reimbursements.  Unless you obtain the advance authorization

of the Company’s Chief Executive Officer, you are not authorized to incur, and

will not be reimbursed for, any business expenses during the Reduced Work

Schedule or thereafter.  You further

agree that, by the Separation Date, you will submit your final documented

expense reimbursement statement reflecting all business expenses you incurred

through the Separation Date, if any, for which you seek reimbursement.  The Company will reimburse you for these

expenses pursuant to its regular business practices.

 

3

 

7.       Return

of Company Property.  You agree to

return to the Company, either no later than the Separation Date or at the

Company’s earlier request(s), all Company documents (and all copies thereof)

and other Company property that you have had in your possession at any time,

including, but not limited to, Company files, notes, drawings, records,

business plans and forecasts, financial information, specifications,

computer-recorded information, tangible property (including, but not limited

to, computers, cellular phones, etc.), credit cards, entry cards, identification

badges and keys; and, any materials of any kind that contain or embody any

proprietary or confidential information of the Company (and all reproductions

thereof).  Your timely return of all

Company property is a condition precedent to the Company’s provision of the

severance benefits provided in Paragraph 5.

 

8.       Proprietary

Information Obligations.  You acknowledge

your continuing obligations, during the Half-Time Schedule, the Reduced Work

Schedule, and thereafter, under your Proprietary Information and Inventions

Agreement, a copy of which is attached hereto as Exhibit D.

 

9.       Confidentiality.  The provisions of this Agreement will be

held in strictest confidence by you and the Company and will not be publicized

or disclosed in any manner whatsoever; provided, however, that:  (a) you may disclose this Agreement in

confidence to your immediate family; (b) the parties may disclose this

Agreement in confidence to their respective attorneys, accountants, auditors,

tax preparers, and financial advisors; (c) the Company may disclose this

Agreement to investors or as necessary to fulfill standard or legally required

corporate reporting or disclosure requirements; and (d) the parties may

disclose this Agreement insofar as such disclosure may be necessary to enforce

its terms or as otherwise required by law. 

In particular, and without limitation, you agree not to disclose the

terms of this Agreement to any current or former employee, consultant or

independent contractor of the Company.

 

10.     Nondisparagement.  Both you and the Company agree not to

disparage the other party, and you further agree not to disparage the Company’s

officers, directors, employees, shareholders and agents, in any manner likely

to be harmful to them or their business, business reputation or personal

reputation; provided that both you and the Company will respond accurately and

fully to any question, inquiry or request for information when required by

legal process.

 

11.     Release

of Claims.  In

exchange for the Salary Payments and other consideration under this Agreement

to which you would not otherwise be entitled, you hereby release, acquit and

forever discharge the Company, its parents and subsidiaries, and its and their

respective officers, directors, agents, servants, employees, attorneys, shareholders,

successors, assigns and affiliates, of and from any and all claims,

liabilities, demands, causes of action, costs, expenses, attorneys’ fees,

damages, indemnities and obligations of every kind and nature, in law, equity,

or otherwise, known and unknown, suspected and unsuspected, disclosed and

undisclosed, arising out of or in any way related to agreements, events, acts

or conduct at any time prior to and including the date you sign this Agreement,

including but not limited to: any and all such claims and demands directly or

indirectly arising out of or in any way connected with your employment with the

Company or the termination of that employment; claims or demands related to

salary, bonuses, commissions, stock, stock options, or any other ownership

interests in the Company, vacation pay, fringe benefits, expense

reimbursements, sabbatical benefits, severance benefits, or any other form of

compensation; claims pursuant to any federal, state, local law, statute or

cause of action including, but not limited to, the federal Civil Rights Act of

1964, as amended; the federal Age Discrimination in Employment Act of 1967, as

amended; the federal Americans with Disabilities Act of 1990; the California

Fair Employment and Housing Act, as amended; the California Labor Code, as

amended; tort law; contract law; wrongful discharge; discrimination; fraud;

defamation; harassment; emotional distress; and breach of the implied covenant

of good faith and fair dealing.You represent that you have no lawsuits, claims or

actions pending in your name or on behalf of any other person or entity,

against the Company or any other person or entity subject to the release

granted in this paragraph.  You agree

that in the event you bring a claim covered by this release in which you seek

damages or in the event you seek to recover in any claim brought by a

governmental agency on your behalf, this Agreement shall serve as a complete

defense to such claims.

 

4

 

12.     ADEA Waiver.  You acknowledge that you are knowingly and

voluntarily waiving and releasing any rights you may have under the federal Age

Discrimination in Employment Act of 1967, as amended (“ADEA”).  You also acknowledge that the consideration

given for the waiver and release in the preceding paragraph hereof is in addition

to anything of value to which you were already entitled.  You further acknowledge that you have been

advised by this writing, as required by the ADEA, that:  (a) your waiver and release do not apply to

any rights or claims that may arise after the date you sign this Agreement; (b)

you have been advised hereby that you have the right to consult with an

attorney prior to executing this Agreement; (c) you have twenty-one (21) days

to consider this Agreement (although you may choose to voluntarily execute this

Agreement earlier); (d) you have seven (7) days following your execution of

this Agreement to revoke the Agreement (in writing); and (e) this

Agreement will not be effective until after the date upon which the revocation

period has expired, which will be the eighth day after this Agreement is

executed by you, provided that the Company has also executed this Agreement by

that date.

 

5

 

13.     Section 1542 Waiver.  In granting the release herein, you acknowledge

that you understand that you are waiving the benefit of any provision of law in

any jurisdiction to the following effect:

 

A general release does not extend to claims which the creditor does not

know or suspect to exist in his favor at the time of executing the release,

which if known by him must have materially affected his settlement with the

debtor. (California

Civil Code Section 1542.)

 

You hereby

expressly waive and relinquish all rights and benefits under that section and

any law or legal principle of similar effect in any jurisdiction with respect

to the release of unknown and unsuspected claims granted in this Agreement.

 

If this

Agreement is acceptable to you, please sign below and return the original to

me.  Pharsight appreciates your dedication

and commitment in making us successful.

 

Sincerely,

 

Pharsight

Corporation

 

	

  By:

  	

   

  	

   

  
	

   

  	

  Arthur Reidel

  
	

   

  	

  President and Chief

  Executive Officer

  
				

 

I have read, understand and agree

fully to the foregoing Agreement.

 

	

   

  	

   

  
	

  Robin Kehoe

  
	

   

  
	

  Date:

  	

   

  	

   

  
				

 

6

 

Collective

Exhibit A

 

STOCK AGREEMENTS

 

7

 

Exhibit B

 

SUPPLEMENTAL

RELEASE

 

(Must Sign On

Last Day Of Employment)

 

To:          Pharsight Corporation (the “Company”)

 

From:      Robin Kehoe

 

In further

consideration of the agreement between the Company and me dated December 14,

2001, I hereby give the following Supplemental Release.

 

1.             I hereby release, acquit and

forever discharge the Company, its parents and subsidiaries, and its and their

respective officers, directors, agents, servants, employees, attorneys,

shareholders, successors, assigns and affiliates, of and from any and all

claims, liabilities, demands, causes of action, costs, expenses, attorneys

fees, damages, indemnities and obligations of every kind and nature, in law,

equity, or otherwise, known and unknown, suspected and unsuspected, disclosed

and undisclosed, arising out of or in any way related to agreements, events,

acts or conduct at any time prior to and including the date I sign this

Supplemental Release, including but not limited to:  all such claims and demands directly or indirectly arising out of

or in any way connected with my employment with the Company or the termination

of that employment; claims or demands related to salary, bonuses, commissions,

stock, stock options, or any other ownership interests in the Company, vacation

pay, fringe benefits, expense reimbursements, severance pay, or any other form

of compensation; claims pursuant to any federal, state or local law, statute,

or cause of action including, but not limited to, the federal Civil Rights Act

of 1964, as amended; the federal Age Discrimination in Employment Act of 1967,

as amended; the federal Americans with Disabilities Act of 1990; the California

Fair Employment and Housing Act, as amended; the California Labor Code, as

amended; tort law; contract law; wrongful discharge; discrimination;

harassment; fraud; defamation; emotional distress; and breach of the implied

covenant of good faith and fair dealing.

 

2.             I acknowledge that I am knowingly and voluntarily waiving

and releasing any rights I may have under the federal Age

Discrimination in Employment Act of 1967, as amended (“ADEA”).  I also

acknowledge that the consideration given for the waiver and release in the

preceding paragraph hereof is in addition to anything of value to which I was

already entitled.  I further acknowledge

that I have been advised by this writing, as required by the ADEA, that:  (a) my waiver and release do not apply

to any rights or claims that may arise after the date I sign this Supplemental

Release; (b) I have been advised hereby that I have the right to consult with

an attorney prior to executing this Supplemental Release; (c) I have twenty-one

(21) days to consider this Supplemental Release (although I may choose to

voluntarily execute it earlier); (d) I have seven (7) days following the

execution of this Supplemental Release to revoke it; and (e) this Supplemental

Release will not be effective until the date upon which the revocation period

has expired, which will be the eighth day after this Supplemental Release is

executed by me (“Effective Date”).

 

8

 

3.             I understand

that this Supplemental Release includes a release of all known and unknown

claims.  In giving this release, which

includes claims that may be unknown to me at present, I acknowledge that I have

read and understand Section 1542 of the California Civil Code, which reads as

follows:  “A general release does not extend to

claims which the creditor does not know or suspect to exist in his favor at the

time of executing the release, which if known by him must have materially

affected his settlement with the debtor.”  I hereby expressly waive and relinquish all rights and benefits

under that section and any law of any jurisdiction of similar effect with

respect to my release of any unknown or unsuspected claims.

 

	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

  Robin Kehoe

  
	

   

  	

  Date

  	

   

  

 

9

 

Collective

Exhibit C

 

PROMISSORY NOTES

 

 

10

 

Exhibit D

 

PROPRIETARY

INFORMATION AND INVENTIONS AGREEMENT

 

 

11~eb ~2 01 0@20p

 				
				
	

 

David Powell, Inc

3000 Sand Hill Road

Building 3, Suite 245

Menlo Park, Ca 94025

650 854-0960

 

PERSONAL

& CONFIDENTIAL

 

October 4, 2001

 

Mr. Art Reidel

Ms. Robin Kehoe

Pharsight Corporation

 

Re: Financial Services Proposal

 

Dear Art and Robin:

 

The Financial Services Division of David Powell, Inc. (DPI) has

developed the following proposal for finance assistance for Pharsight. Les

Wright will be assigned as the Interim Chief Financial Officer at Pharsight.

 

SERVlCES

 

Pharsight is requesting that Les will be responsible for overseeing the

finance and administration functions including:

 

1.     Assisting with the development of operating and strategic plans.

2.     Overseeing and mentoring the VP of Finance.

3.     Overseeing the management of the finance and administrative

staff including accounting, planning, treasury, human

resources and IT personnel.

4.     Serving as a sounding board to management and the Board of

Directors

5.     Overseeing investor relations activities including investor

presentation and analyst calls.

6.     Performing other accounting and administrative services, as

required.

 

TIMlNG

 

Les can begin work no later than November 1, 2001.

 

 

COST 

 

Les’ time, as the Interim Chief Financial Officer, will be billed at a

rate of $16,000 per month (payable in two semi-monthly installments), based on

a 2 1/2-day workweek.  As part of the

fee for Les’ services, 30,000 options will be granted within 60 days of his

starting date with the Pharsight. These options will be fully vested as of the

grant date and are to be exercisable for two years.  After 12 months of service, Pharsight agrees to grant additional

options to Les as mutually agreed at that time.  All grants will be priced at the fair market value at the close

as of the date of grant.  All grants

will be made under the 2000 Equity Plan. A deposit of $16,000 is required to

begin this assignment and will be applied at the end of the engagement.

 

TERMS 

 

Fees are billed on the 16th and the 1st of the month for the

prior period and are due upon receipt. A copy of DPI’s Standard Terms and

Conditions is attached as Exhibit A.

 

APPROVAL

 

Art/Robin, if the above is agreeable to you, please sign this letter in

the space below and return the original copy to DPI.

 

Again, thank you for giving the Financial Services Division of David

Powell, Inc. the opportunity to be of service to Pharsight.  We look forward to working with you.

 

	

  Sincerely,

  	

  Accepted:

  
	

   

  	

   

  
	

  Michael W. Scott

  	

  Robin Kehoe

  
	

  President

  	

  Chief Financial Officer

  
	

  Financial Services Division

  	

  Pharsight

  
	

   

  	

   

  
	

   

  	

  _______________________

  
	

   

  	

   

  
	

  cc: Les Wright

  	

  Date

  

 

 

EXHIBIT A

STANDARD TERMS AND Conditions

DAVID POWELL, INC. -FINANCIAL SERVICES DIVISION

 

1. Services: David Powell, Inc., Financial Services Division

(“DPI”) will use reasonable efforts to perform the services (the “Services”)

described in the engagement letter between DPI and the Client addressed therein

(the “Letter”) to which these Standard Terms and Conditions are attached as

Exhibit A. Client will provide DPI with all resources (physical and human)

reasonably requested by DPI to enable DPI to perform the Services.

 

2. Fees and Expenses: 

Unless otherwise specified in the engagement letter, fees will be billed

semi-monthly, on the sixteenth and first day of each month. Expenses incurred

by DPI on behalf of the Client will be billed on the sixteenth and the first

day of the month when incurred with the fee billings. All invoices are due upon

receipt.

 

3. Terms: Unless otherwise specified in the engagement letter,

this engagement will continue for six months. After the minimum six month

engagement period, however, either party may terminate the engagement by giving

the other party 30 days’ prior written notice. The term of the engagement may

be extended at any time by mutual agreement of the parties and, unless otherwise

agreed, the

provisions of the Letter and these Standard Terms and Conditions will

apply to any such extension.

 

4. Independent Contractor: DPI is an independent contractor, and

will indemnify the Client and hold it harmless to the extent of any obligation

imposed by law on the Client to pay any withholding taxes, social security,

unemployment or disability insurance, or similar items in connection with any

payments made by the Client for the Services.

 

5. No Assurance of Funding: Client acknowledges and understands

that DPI cannot and does not guarantee that Client will obtain funding which it

deems acceptable or adequate as a result of DPI’s performance of the Services.

 

6. Indemnification: Client will indemnify, defend DPI and Les

Wright and hold them harmless against any and all claims, damages, costs,

fines, penalties, liabilities, attorneys and other professional fees and

disbursements, suffered, incurred by, or asserted against DPI or Les Wright in

connection with its performance of the Services to the fullest extent permitted

under applicable law, except when such claims arise as a result of DPI’s or

Les’ gross negligence, gross or willful misconduct. Client represents and

warrants to DPI and Les Wright that its Articles of Incorporation and Bylaws

contain provisions authorizing such indemnification. In addition, Pharsight

will ensure that Les is covered by its directors and officers liability

insurance policy.  The obligations of

Pharsight under this paragraph are hereinafter collectively referred to as

“Indemnity Obligations”.  the Indemnity

obligations shall survive for a period of five (5) years, any termination of

DPI’s and Les’ services under this agreement and any amendment or modification

thereto.  Pharsight agrees to promptly

tender any payments due to DPI or Les Wright, and/or counsel, under or in

respect of the Indemnity Obligations, within three (3) business days following

written demand by DPI or Les Wright, and/or their counsel, which demand shall

include a detailed description of each such obligation demanded.  Pharsight’s Indemnity Obligations shall not

apply to costs or to amounts paid in settlement of any loss, claim, damage,

liability, or action if such settlement is effected without the consent of

Pharsight, which consent shall not be unreasonably withheld.

 

 

7. Non-Solicitation: Client and DPI each agree not to solicit

the other’s employees without the other’s prior written consent. If an employee

should resign from one party and become employed by the other party within the

120-day period following such employee’s effective date of resignation, then

the hiring party will be deemed to have breached its obligations hereunder. The

parties agree that, in such event, the hiring party will pay the other party,

for such breach, an amount equal to one-fourth (1/4) of the terminated

employee’s first year’s targeted cash compensation, including base salary and

bonus, offered by the hiring party.  Les

Wright is specifically excluded from this provision and no additional fees will

be due to DPI should Les be hired as a regular employee of Pharsight.

 

8. Expiration:  The

proposal contained in this letter is valid for ten calendar days from proposal

date.

 

9. Governing Law:  This

agreement is made under the laws of the State of California.  If any legal action arises under this

Agreement or by reason of an asserted breach of it, the prevailing party shall

be entitled to recover all costs and expenses, including reasonable attorney’s

fees, incurred in enforcing or attempting to enforce the terms of this

agreement.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]