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Exhibit 10.3  

        CONFIDENTIAL TREATMENT REQUESTED

UNDER 17 C.F.R. §§ 200.80(b)4, AND 240.24 

 
 

INITIAL COLLABORATION AGREEMENT    
    

        THIS INITIAL COLLABORATION AGREEMENT ("Agreement") is made and entered into effective as of June 23, 2003
(the "Effective Date"), by and between Industrial Technology Research Institutes ("ITRI"), located at 195 Chung-Hsing Road, Sec. 4, Chutung, Hsinchu, Taiwan 310, R.O.C., and ISIS
PHARMACEUTICALS, INC., having principal offices at 2292 Faraday Avenue, Carlsbad CA 92008 ("Isis"). ITRI and Isis each may be referred to herein individually as a "Party," or collectively as
the "Parties." 

        Isis
will conduct the First Stage Research Plan to identify and initially develop antisense drugs to treat SARS. Isis and ITRI will negotiate an agreement for the continued development
and commercialization of SARS antisense drugs identified under the First Stage Research Plan. 

        The
Parties agree as follows: 

ARTICLE 1—DEFINITIONS  

        Capitalized terms used in this Agreement have the meanings set forth in Appendix 1. 

ARTICLE 2—

COLLABORATION  

        Section 2.1    First Stage Research Plan. Isis'
responsibilities for research and development under this Initial Collaboration Agreement are set forth in Appendix 2.1, the "First Stage Research Plan". 

        Section 2.2    Future Collaboration Agreement.  Isis and ITRI will negotiate in
good faith to enter, no later than [***], an agreement for the continuation of SARS drug research and development beyond
that described in the First Stage Research Plan, with consideration to be given to the terms attached as Appendix 2.2. Payments made by ITRI under Section 3.1 of this Initial
Collaboration Agreement will be credited against the research payments due under the future Collaboration Agreement. To the extent necessary, the future Collaboration Agreement will be adjusted to
account for work performed under the First Stage Research Plan of this Initial Collaboration Agreement. 

        Section 2.3    Rights If Future Collaboration Agreement Not Consummated.  If
Isis and ITRI do not enter the future Collaboration Agreement described in Section 2.2, the Parties agree as follows; in addition to any rights obtained through this
agreement that survive, 

         2.3.1 Isis will provide to ITRI data on the SARS antisense inhibitors developed under the First Stage Research Plan, and will train ITRI scientists
to use antisense target validation know-how, including RNAi technology, for research use only in ITRI laboratories. Information provided hereunder and generated by ITRI's antisense program
may not be made commercially available by ITRI for non-research purposes. ITRI will be responsible for the cost of the training of ITRI's scientists pursuant to a plan and budget to be
developed and agreed upon between Isis and ITRI. 

         2.3.2 Isis will grant to ITRI or its Taiwanese designee the right to market and distribute an antisense SARS drug arising out of the First Stage
Research Plan in Taiwan, provided that such drug is purchased from Isis or an Isis authorized manufacturer. Isis will provide to ITRI or its Taiwanese designee any data from the First Stage Research
Plan required by ITRI or its Taiwanese designee to market and distribute such antisense SARS drug in Taiwan. If requested by ITRI prior to the completion of the First Stage Research Plan, Isis and
ITRI will negotiate an agreement under which Isis will on reasonable terms and conditions (i) transfer to ITRI, for its sole use, 

1

 

technology
to manufacture antisense drugs for SARS; and/or (ii) manufacture antisense SARS drugs that result from the First Stage Research Plan for the Taiwan Government for emergency use. 

ARTICLE 3—

FINANCIAL PROVISIONS  

        Section 3.1    Funding of the First Stage Research Plan.  

         3.1.1 Initial Funding. ITRI will pay to Isis initial funding of [***] (U.S.) upon signing this Agreement. 

         3.1.2 Milestone Payments by ITRI. ITRI will pay to Isis milestone payments as follows: 

[***]
(U.S.) within [***] days of the receipt by ITRI of both Isis's invoice and the report concerning Isis's identification of an antisense drug which
inhibits replication of SARS coronavirus in a cell-based assay, with an IC50 of less than [***] micromolar; and, 

[***]
(U.S.) within [***] days of the receipt by ITRI of both Isis's invoice and the report concerning Isis's completion of its obligations under the
First Stage Research Plan. 

ARTICLE 4—

CONFIDENTIALITY  

        Section 4.1    Disclosure and Use Restriction.  All Confidential Information
disclosed by one party to the other party hereunder shall be maintained in confidence by the receiving party and shall not be disclosed to a
non-party or used for any purpose except as set forth herein without the prior written consent of the disclosing party, except to the extent that such Confidential Information: 

        (a)   is disclosed to governmental or other regulatory agencies by either party in order to obtain patents or to gain approval
to conduct clinical trials or to market antisense SARS drugs, but such disclosure may be only to the extent reasonably necessary to obtain patents or authorizations; 

        (b)   is deemed necessary by either Party to be disclosed to sublicensees, agents, consultants, and/or other third parties for
the development, manufacturing and/or marketing of antisense SARS drugs (or for such parties to determine their interest in performing such activities) in accordance with this Agreement on the
condition that such third parties agree to be bound by the confidentiality obligations contained this Agreement, provided the term of confidentiality
for such third parties shall be no less than [***] years; or 

        (c)   is required to be disclosed by law or court order, or is required to be disclosed by regulation or order of a competent
authority (including any regulatory or governmental body or department or securities exchange or court or tribunal), provided that notice is promptly delivered to the other party in order to provide
an opportunity to challenge or limit the disclosure obligations. 

        Section 4.2    Period of Confidentiality. The
obligations with respect to maintaining the confidentiality of the Confidential Information provided under this Agreement shall be in effect for [***] years from the Effective
date. 

        Section 4.3    Press Releases. Press releases or
other similar public communication by either Party relating to this Agreement, will be approved in advance by the other Party, which approval will not be unreasonably withheld or delayed, except for
those communications required by law, disclosures of information for which consent has previously been obtained, and information of a similar nature to that which has been previously disclosed
publicly with respect to this Agreement, each of which will not require advance approval, but will be provided to the other Party as soon as practicable after the release or communication thereof. 

2

 

ARTICLE 5—

INTELLECTUAL PROPERTY  

        Section 5.1    Intellectual Property Ownership.  Ownership of inventions
conceived or reduced to practice as part of the performance of this Agreement will be determined in accordance with the rules of inventorship under
United States patent laws. [***] Either ITRI or Isis shall have the full right to use, make, license or otherwise dispose of its rights without prior consent of the other owner
under such Joint Patents. 

        Section 5.2    Access to Inventions. Isis grants
to ITRI a non-exclusive, sublicensable, [***] license to any invention invented by Isis as part of the performance of this Agreement, such license solely to develop
or commercialize, in [***] only, a SARS antisense drug arising out of the First Stage Research Plan. ITRI grants to Isis a non-exclusive, sublicensable,
[***] license to any invention invented by ITRI as part of the performance of this Agreement, such license solely to develop or commercialize, [***], a
SARS antisense drug arising out of the First Stage Research Plan. 

        Section 5.3    Prosecution of Joint Patents. In
general, Isis will have the first right to file, in both parties name, and at shared expense, to prosecute and maintain any Joint Patents.  However, if
either party elects not to pursue the filing, prosecution or maintenance of a Joint Patent in a specific country, or take any other action
with respect to such Joint Patent that is necessary to establish or preserve rights thereto in that country, that party will so notify the other party promptly in writing and in good time to enable
the other party to meet any deadlines by which an action must be taken to establish or preserve any rights in such Joint Patent in that country, and the other party will have the right to file,
prosecute or maintain such Joint Patent, at its expense but in the joint names of both parties. 

ARTICLE 6—

TERM AND TERMINATION  

        Section 6.1    Term. Unless earlier terminated in
accordance with the provisions of this Article 6, the term of this Agreement (the "Term") will commence upon the Effective Date and will continue until the completion of the First Stage
Research Plan, and receipt by Isis of all payments due under Sections 3.1.1 and 3.1.2. 

        Section 6.2    Termination for Material Breach.  Either Party may terminate this
Agreement if the other Party commits any other material breach of this Agreement and fails to cure such breach within 90 calendar days after
receipt of written notice of such breach from the non-breaching Party (or, if such breach cannot be cured within such 90-day period, if the Party in breach does not diligently
pursue cure of such breach). provided, however, that in the event of a good faith dispute with respect to the existence of a material breach, the
90-day cure period will be stayed until such time as the dispute is resolved. Termination for material breach is without prejudice to any rights or remedies otherwise available to the
non-breaching Party. 

        Section 6.3    Surviving Obligations. Articles 4,
5, 7, 8 and 9 and this Section 6.4 will survive expiration or termination of this Agreement for any reason. 

        Section 6.4    Surviving Licenses. Licenses or
sublicenses granted under Section 5.2 of this Agreement will survive expiration or termination of this Agreement for any reason. 

ARTICLE 7—

INDEMNIFICATION  

        Section 7.1    Indemnification. Each party is
responsible for its own acts and omissions relating to this Agreement and any materials transferred in connection with this Agreement. Each party agrees to indemnify, defend, and hold each other
harmless from and against any liability, damages, costs or 

3

 

expenses
(including attorneys' fees) resulting from any claim, demand, loss, injury, or liability of any kind or nature arising from its (a) breach of this Agreement; or (b) negligent or
intentionally tortious acts or omissions in connection with the performance of this Agreement. 

ARTICLE 8—

WARRANTIES  

        Section 8.1    DISCLAIMER OF WARRANTY. ISIS MAKES
NO REPRESENTATIONS AND GRANTS NO WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, AND ISIS SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, WHETHER WRITTEN
OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE OR ANY WARRANTY AS TO THE VALIDITY OF ANY PATENTS OR THE
NON-INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES. 

ARTICLE 9—

MISCELLANEOUS  

        Section 9.1    Assignment. Without the prior
written consent of the other Party hereto, neither Party will transfer or assign this Agreement or any of its rights or duties hereunder; provided,
however, that Isis may assign or transfer this Agreement or any of its rights or obligations hereunder without the consent of ITRI to any third party with which it has merged
or consolidated, or to which it has transferred all or substantially all of its assets to which this Agreement relates. 

        Section 9.2    Severability. If any provision of
this Agreement is held to be illegal, invalid or unenforceable by a court of competent jurisdiction, all remaining portions shall remain in full force and effect. 

        Section 9.3    Governing Law. This Agreement
will be governed by and construed in accordance with the laws of New York without reference to any rules of conflicts of laws. 

        Section 9.4    Notices. All notices or other
communications that are required hereunder will be in writing and sent by facsimile (and confirmed by overnight courier), or sent by internationally-recognized overnight courier, addressed as follows: 

        If
to ITRI, to: 

Industrial
Technology Research Institutes

195 Chung-Hsing Road, Sec. 4

Chutung, Hsinchu, Taiwan 310, R.O.C

Attention:
Dr. Chungcheng Liu

Facsimile: 886-03-5820445

        If
to Isis, to: 

Isis
Pharmaceuticals, Inc.

2292 Faraday Avenue

Carlsbad, California 92008

Attention: Executive Vice President

Facsimile: (760) 603-4650

with
a copy to: 

Attention:
General Counsel

Facsimile: (760) 268-4922

4

 

        Each
Party may change its address, addressee or other information by written notice to the other Party as provided above. Any notice or communication will be deemed to have been given
(i) when sent, if by facsimile on a business day, or (ii) on the second business day after dispatch, if sent by courier. 

        Section 9.5    Entire Agreement; Modifications.  This Agreement sets forth and
constitutes the entire agreement and understanding between the Parties with respect to the subject matter hereof and supercedes all prior
agreements, whether written or oral. Any amendment or modification to this Agreement must be duly executed by authorized representatives of both Parties. 

        Section 9.6    Construction. Appendices to this
Agreement, or added hereto according to the terms of this Agreement, are part of this Agreement. 

        IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date
first above written. 

	
INDUSTRIAL TECHNOLOGY RESEARCH INSTITUTE	
 	

ISIS PHARMACEUTICALS, INC.
	
Signed By:	

/s/  JOHNSEE LEE, PH.D      
 Johnsee Lee, Ph.D

Executive Vice President of ITRI

and General Director of BMEC	
 	

Signed By:	

/s/  STANLEY T. CROOKE, M.D., PH.D.      
 Stanley T. Crooke, M.D., Ph.D.

CEO

5

 
APPENDIX 1

Definitions  

        "Confidential Information" means any and all information and data, including without limitation all scientific,
preclinical, clinical, regulatory, manufacturing, marketing, financial and commercial information and data, whether communicated in writing or orally or
by any other method, which is provided by one party to the other party in connection with this Agreement, unless such information 

	(a)
	was already known to the receiving Party, other than under an obligation of confidentiality or non-use, at the time of disclosure to such receiving
Party;  

 
	(b)
	is properly in the public domain;  

 
	(c)
	became generally available or known to parties reasonably skilled in the field to which such information or know-how pertains, or otherwise became
part of the public domain, after its disclosure to such receiving Party through no fault of the receiving Party; 

was
independently discovered or developed prior to disclosure by such receiving Party, as evidenced by their written records, without the use of Confidential Information belonging to the Party that
Controls such information and know-how. 

        "First Stage Research Plan" means the Parties' initial development plan for antisense SARS drugs, as set forth in Appendix 2.1. 

        "Joint Patent" has the meaning set forth in Section 5.1.  

6

 
 APPENDIX 2.1

FIRST STAGE RESEARCH PLAN  

[***]

7

 
APPENDIX 2.2

Taiwan

SARS Research and Development Collaboration Term-Sheet  

[***]

8

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Exhibit 10.4    
    

April    ,
2003 

VIA HAND DELIVERY  

[Employee Name]

[Title]

Isis Pharmaceuticals, Inc.

2292 Faraday Ave.

Carlsbad, CA 92008

Dear
[FirstName]: 

        Isis
Pharmaceuticals, Inc. ("Isis") is pleased to offer you certain severance benefits in light of your contribution to Isis. As Isis has no policy or procedure requiring such
benefits, we request that you keep the terms and conditions of this letter agreement confidential. 

        In
the event that your employment is terminated without "cause" (as defined herein) by Isis on or before December 31, 2005 (the "Severance Period"), you will be eligible to
receive a severance payment equal to a minimum of [number (#)] months of your then current base salary, less payroll deductions and withholdings. For purposes of this letter
agreement, "cause" will be defined as follows: (i) engaging or in any manner participating in any activity which is competitive with or intentionally injurious to Isis or which violates any
provision of the Proprietary Information and Inventions Agreement; (ii) commission of any fraud against Isis or use or appropriation for personal use or benefit of any funds or properties of
Isis not authorized by the Company to be so used or appropriated; (iii) conviction of a crime involving dishonesty or moral turpitude; (iv) conduct by you which in the good faith and
reasonable determination of the Company demonstrates gross unfitness to serve in your then current capacity at Isis. In order to be eligible to receive the severance payments described herein, you
will be required to execute an Employee Separation Agreement substantially in the form attached hereto as Exhibit A. 

        In
the event that your employment is terminated by Isis as a result of a Change in Control (as defined herein), your severance payment shall be increased such that you receive a total of
[number (#)] months of your then current base salary, less payroll deductions and withholdings. For purposes of this letter agreement, Change in Control will be defined as
follows: (i) a sale of all or substantially all of the assets of Isis; (ii) a merger or consolidation in which Isis is not the surviving corporation and in which beneficial ownership of
securities of Isis representing at least fifty percent (50%) of the combined voting power entitled to vote in the election of Directors has changed; (iii) a reverse merger in which Isis is the
surviving corporation but the shares of Common Stock outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or
otherwise, and in which beneficial ownership of securities of Isis representing at least fifty percent (50%) of the combined voting power entitled to vote in the election of Directors has changed; or
(iv) an acquisition by any person, entity or group within the meaning of Section 13(d) or 14(d) of the Exchange Act, or any comparable successor provisions (excluding any employee
benefit plan, or related trust, sponsored or maintained by Isis or subsidiary of Isis or other entity controlled by Isis) of the beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act, or comparable successor rule) of securities of Isis representing at least fifty percent (50%) of the combined voting power entitled to
vote in the election of Directors. 

        Please
keep in mind that this letter agreement is not intended to change your status as an at-will employee with Isis. As with all employees at Isis, you or Isis may
terminate your employment at any time, for any reason whatsoever, with or without cause or advance notice subject to the provisions set forth herein. 

        If
you have any questions or comments regarding the terms and conditions of this letter, please do not hesitate to contact me. 

	

 	
 	

 
	Very truly yours,	 	 
	

 	
 	

 
	Isis Pharmaceuticals, Inc.	 	 
	

 	
 	

 
	 
 Patricia M. Lowenstam

Vice President, Human Resources	 	 
	

 	
 	

 
	PML/jk	 	 
	

 	
 	

 
	attachment	 	 

EXHIBIT A

SEPARATION AGREEMENT  

        This SEPARATION AGREEMENT ("Agreement") is made and entered into by and
between                        ("Employee") and
                        ("the Company") as of
the                        ("Effective Date"). 

        WHEREAS, the Company wishes to provide Employee with certain benefits in consideration of Employee's service to the Company and the
promises and covenants of Employee as contained herein; 

        NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, it is hereby agreed by and between the parties
hereto as follows: 

        1.     SEVERANCE PAYMENTS. On                        ("Separation Date"), Employee shall cease to be an
employee or officer of the
Company for all purposes. In return for executing this Agreement, Employee will receive one (1) month of Employee's base salary in effect on the Separation Date, subject to standard payroll
deductions and withholdings. In addition, if Employee has been continuously employed by the Company for a minimum of three (3) years, Employee will receive an additional two (2) weeks of
base salary per year of service. 

        2.     ACCRUED SALARY AND PAID TIME OFF. On or about the Separation Date, the Company will pay Employee all accrued salary, and
all accrued and unused vacation, subject to standard payroll deductions and withholdings. Employee is entitled to these payments regardless of whether or not Employee signs this Agreement. 

        3.     EMPLOYMENT SEARCH SUPPORT. Commencing on the Separation Date, the Company will provide Employee offsite employment search
support through Right Management Associates as outlined in Exhibit A attached hereto. 

        4.     HEALTH INSURANCE. To the extent permitted by law and by the Company's current group health insurance policies, after the
Separation Date, Employee will be eligible to continue receiving health insurance benefits under the federal or state COBRA law at Employee's own expense and later to convert to an individual policy
if desired. Employee will be provided with a separate notice regarding COBRA benefits. If Employee elects continued coverage under COBRA, the Company will reimburse Employee's COBRA premiums for one
(1) month as part of this Agreement. In addition, to the extent permitted by law and by the Company's current vision and dental insurance policies, after the Separation Date, the Company will
reimburse Employee's vision and dental benefit premiums for one (1) month. 

        5.     STOCK OPTIONS. Pursuant to the Company's 199  Equity Incentive Plan (the "Plan") and Employee's Stock Option
Agreement (a copy of which is attached hereto as Exhibit B), vesting of Employee's stock options will cease on the Separation Date. Employee's rights to exercise Employee's option as to any
vested shares will be as set forth in the Plan and Employee's Stock Option Agreement. 

        6.     OTHER BENEFITS. Except as expressly provided herein, Employee acknowledges that Employee will not receive (nor is entitled
to receive) any additional compensation or benefits. 

        7.     RETURN OF COMPANY PROPERTY. By three (3) days after the Separation Date, Employee will return to the Company all
Company documents (and all copies thereof) and other Company property and materials in Employee's possession, or control, including, but not limited to, Company files, notes, memoranda,
correspondence, lists, drawings, records, plans and forecasts, financial information, personnel information, customer and customer prospect information, sales and marketing information, product
development and pricing information, specifications, computer-recorded information, tangible property, equipment, credit cards, entry cards, identification badges and keys; and any materials of any
kind which contain or embody any proprietary or confidential information of the Company (and all reproductions thereof). 

        8.     PROPRIETARY INFORMATION OBLIGATIONS. Employee acknowledges that nothing herein shall impair the covenants and obligations
set forth in Employee's Proprietary Information and Inventions Agreement, a copy of which is attached hereto as Exhibit C. 

        9.     EMPLOYEE'S RELEASE OF CLAIMS. Except as otherwise set forth in this Agreement, in exchange for consideration under this
Agreement to which Employee would not otherwise be entitled, Employee hereby releases, acquits and forever discharges the Company, its parents and subsidiaries, and their 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 execution date of this Agreement, including but not limited to: all such claims and demands directly or indirectly arising
out of or in any way connected with Employee's 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 Americans with Disabilities Act of 1990; the federal Age Discrimination in
Employment Act of 1967, as amended ("ADEA"); the California Fair Employment and Housing Act, 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. 

        10.   SECTION 1542 WAIVER. Employee acknowledges reading and understanding Section 1542 of the Civil Code of the
State of California: 

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.

Employee
hereby expressly waives and relinquishes 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. 

        11.   ARBITRATION. To ensure rapid and economical resolution of any and all disputes that may arise in connection with the
Agreement, the parties agree that any and all disputes, claims, causes of action, in law or equity, arising from or relating to this Agreement or its enforcement, performance, breach, or
interpretation, with the sole exception of those disputes that may arise from Employee's Proprietary Information and Inventions Agreement, will be resolved by final and binding confidential
arbitration held in San Diego, California and conducted by the American Arbitration Association ("AAA") under its then-existing Rules and Procedures. Nothing in this paragraph is intended
to prevent either party from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. 

        12.   ENTIRE AGREEMENT. This Agreement, including all exhibits, constitutes the complete, final and exclusive embodiment of the
entire agreement between Employee and the Company with regard to the subject matter hereof. It supersedes any and all agreements entered into by and between Employee and the Company where such other
agreement may conflict with this agreement. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein. It may not be modified
except in a writing signed by Employee and a duly authorized officer of the Company. The parties have carefully read this Agreement, have been afforded the opportunity to be advised of its meaning and
consequences by their respective attorneys, and signed the same of their own free will. 

        13.   MISCELLANEOUS. This Agreement shall bind the heirs, personal representatives, successors, assigns, executors and
administrators of each party, and inure to the benefit of each party, its heirs, 

successors
and assigns. This Agreement shall be deemed to have been entered into and shall be construed and enforced in accordance with the laws of the State of California as applied to contracts made
and to be performed entirely within California. If an arbitrator or court of competent jurisdiction determines that any term or provision of this Agreement is invalid or unenforceable, in whole or in
part, then the remaining terms and provisions hereof shall be unimpaired, the invalid or unenforceable term or provision shall be modified or replaced so as to render it valid and enforceable in a
manner which represents the parties' intention with respect to the invalid or unenforceable term or provision insofar as possible. This Agreement may be executed in two counterparts, each of which
shall be deemed an original, all of which together shall constitute one and the same instrument. 

        IN WITNESS WHEREOF, the parties have duly authorized and caused this Agreement to be executed as follows: 

	

 	
 	

 	

 
	EMPLOYEE	 	 

	

 	
 	

 	

 
	 
	 	By:	 

EXHIBIT A

SEPARATION AGREEMENT  

[Employee Over 40 Years Of Age—Exempt]

        This
SEPARATION AGREEMENT ("Agreement") is made and entered into by and
between                        ("Employee")
and                        ("the
Company") as of the Effective Date of this Agreement, as defined in paragraph 10 below. 

        WHEREAS, the Company wishes to provide Employee with certain benefits in consideration of Employee's service to the Company and the
promises and covenants of Employee as contained herein; 

        NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, it is hereby agreed by and between the parties
hereto as follows: 

        1.     SEVERANCE PAYMENTS. On                        ("Separation Date"), Employee shall cease to be an
employee or officer of the
Company for all purposes. In return for executing this Agreement, Employee will receive one (1) month of Employee's base salary in effect on the Separation Date, subject to standard payroll
deductions and withholdings. In addition, if Employee has been continuously employed by the Company for a minimum of three (3) years, Employee will receive an additional two (2) weeks of
base salary per year of service. 

        2.     ACCRUED SALARY AND PAID TIME OFF. On or about the Separation Date, the Company will pay Employee all accrued salary, and
all accrued and unused vacation, subject to standard payroll deductions and withholdings. Employee is entitled to these payments regardless of whether or not Employee signs this Agreement. 

        3.     EMPLOYMENT SEARCH SUPPORT. Commencing on the Separation Date, the Company will provide Employee offsite employment search
support through Right Management Associates as outlined in Exhibit A attached hereto. 

        4.     HEALTH INSURANCE. To the extent permitted by law and by the Company's current group health insurance policies, after the
Separation Date, Employee will be eligible to continue receiving health insurance benefits under the federal or state COBRA law at Employee's own expense and later to convert to an individual policy
if desired. Employee will be provided with a separate notice regarding COBRA benefits. If Employee elects continued coverage under COBRA, the Company will reimburse Employee's COBRA premiums for one
(1) month as part of this Agreement. In addition, to the extent permitted by law and by the Company's current vision and dental insurance policies, after the Separation Date, the Company will
reimburse Employee's vision and dental benefit premiums for one (1) month. 

        5.     STOCK OPTIONS. Pursuant to the Company's 199  Equity Incentive Plan (the "Plan") and Employee's Stock Option
Agreement (a copy of which is attached hereto as Exhibit B), vesting of Employee's stock options will cease on the Separation Date. Employee's rights to exercise Employee's option as to any
vested shares will be as set forth in the Plan and Employee's Stock Option Agreement. 

        6.     OTHER BENEFITS. Except as expressly provided herein, Employee acknowledges that Employee will not receive (nor is entitled
to receive) any additional compensation or benefits. 

        7.     RETURN OF COMPANY PROPERTY. By three (3) days after the Separation Date, Employee will return to the Company all
Company documents (and all copies thereof) and other Company property and materials in Employee's possession, or control, including, but not limited to, Company files, notes, memoranda,
correspondence, lists, drawings, records, plans and forecasts, financial information, personnel information, customer and customer prospect information, sales and marketing information, product
development and pricing information, specifications, computer-recorded information, tangible property, equipment, credit cards, entry cards, identification badges and keys; and any materials of any
kind which contain or embody any proprietary or confidential information of the Company (and all reproductions thereof). 

        8.     PROPRIETARY INFORMATION OBLIGATIONS. Employee acknowledges that nothing herein shall impair the covenants and obligations
set forth in Employee's Proprietary Information and Inventions Agreement, a copy of which is attached hereto as Exhibit C. 

        9.     EMPLOYEE'S RELEASE OF CLAIMS. Except as otherwise set forth in this Agreement, in exchange for consideration under this
Agreement to which Employee would not otherwise be entitled, Employee hereby releases, acquits and forever discharges the Company, its parents and subsidiaries, and their 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 execution date of this Agreement, including but not limited to: all such claims and demands directly or indirectly arising
out of or in any way connected with Employee's 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 Americans with Disabilities Act of 1990; the federal Age Discrimination in
Employment Act of 1967, as amended ("ADEA"); the California Fair Employment and Housing Act, 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. 

        10.   ADEA WAIVER. Employee acknowledges that Employee knowingly and voluntarily waives and releases any rights Employee may
have under the ADEA, as amended. Employee also acknowledges that the consideration given for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which
Employee was already entitled. Employee further acknowledges that Employee has been advised by this writing, as required by the ADEA, that: (a) Employee's waiver and release do not apply to any
rights or claims that may arise after the execution date of this Agreement; (b) Employee has the right to consult with an attorney prior to executing this Agreement; (c) Employee has
forty-five (45) days to consider this Agreement (although Employee may choose to voluntarily execute this Agreement earlier); (d) Employee has seven (7) days following
the execution of this Agreement by the parties to revoke the Agreement; and (e) this Agreement shall not be effective until the date upon which the revocation period has expired, which shall be
the eighth day after this Agreement is executed by Employee, provided that the Company has also executed this Agreement by that date ("Effective Date"). 

        11.   SECTION 1542 WAIVER. Employee acknowledges reading and understanding Section 1542 of the Civil Code of the
State of California: 

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.

Employee
hereby expressly waives and relinquishes 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. 

        12.   ARBITRATION. To ensure rapid and economical resolution of any and all disputes that may arise in connection with the
Agreement, the parties agree that any and all disputes, claims, causes of action, in law or equity, arising from or relating to this Agreement or its enforcement, performance, breach, or
interpretation, with the sole exception of those disputes that may arise from Employee's Proprietary Information and Inventions Agreement, will be resolved by final and binding confidential
arbitration held in San Diego, California and conducted by the American Arbitration Association ("AAA") under its then-existing Rules and Procedures. Nothing in this paragraph is intended
to prevent 

either
party from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. 

        13.   ENTIRE AGREEMENT. This Agreement, including all exhibits, constitutes the complete, final and exclusive embodiment of the
entire agreement between Employee and the Company with regard to the subject matter hereof. It supersedes any and all agreements entered into by and between Employee and the Company where such other
agreement may conflict with this agreement. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein. It may not be modified
except in a writing signed by Employee and a duly authorized officer of the Company. The parties have carefully read this Agreement, have been afforded the opportunity to be advised of its meaning and
consequences by their respective attorneys, and signed the same of their own free will. 

        14.   MISCELLANEOUS. This Agreement shall bind the heirs, personal representatives, successors, assigns, executors and
administrators of each party, and inure to the benefit of each party, its heirs, successors and assigns. This Agreement shall be deemed to have been entered into and shall be construed and enforced in
accordance with the laws of the State of California as applied to contracts made and to be performed entirely within California. If an arbitrator or court of competent jurisdiction determines that any
term or provision of this Agreement is invalid or unenforceable, in whole or in part, then the remaining terms and provisions hereof shall be unimpaired, the invalid or unenforceable term or provision
shall be modified or replaced so as to render it valid and enforceable in a manner which represents the parties' intention with respect to the invalid or unenforceable term or provision insofar as
possible. This Agreement may be executed in two counterparts, each of which shall be deemed an original, all of which together shall constitute one and the same instrument. 

        IN WITNESS WHEREOF, the parties have duly authorized and caused this Agreement to be executed as follows: 

	

 	
 	

 	

 
	EMPLOYEE	 	 

	

 	
 	

 	

 
	 
	 	By:	 

QuickLinks

Exhibit 10.4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]