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  Exhibit 10.16    
    

 [EPOCRATES LOGO]  

May 15,
2002

Robert
Quinn 

Dear
Bob, 

        On
behalf of ePocrates, Inc. (the "Company"), I am pleased to offer you the position of Vice President of Engineering and Chief Technical Officer. 

        The
terms and conditions of your new position with the Company are as set forth below: 

        1.    Position.    

        a.     You
will become Vice President of Engineering and Chief Technical Officer, for the Company. You will report directly to the President and Chief Executive Officer. 

        b.     You
agree to the best of your ability and experience that you will at all times conscientiously perform all of the duties and obligations required of you to the
reasonable satisfaction of the Company. During the term of your employment, you further agree that you will devote all of your business time and attention to the business of the Company, the Company
will be entitled to all of the benefits and profits arising from or incident to all such work services and advice, you will not render commercial or professional services of any nature to any person
or organization, whether or not for compensation, without the prior written consent of the Company's Board of Directors, and you will not directly or indirectly engage or participate in any business
that is competitive in any manner with the business of the Company. Nothing in this letter agreement will prevent you from accepting speaking or presentation engagements in exchange for honoraria or
from serving on boards of charitable organizations, or from owning no more than one percent (1%) of the outstanding equity securities of a corporation whose stock is listed on a national stock
exchange. 

        2.    Start Date.    Subject to fulfillment of any conditions imposed by this letter
agreement, you will commence this new position with the Company on June 1, 2002. 

        3.    Proof of Right to Work.    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. 

        4.    Compensation    

        a.    Base Salary.    Your salary will be payable in semi monthly installments of $7083.34
pursuant to the Company's regular payroll policy. This equates to an annual salary of $170,000. 

        b.    MBO Bonus.    You will be eligible to participate in an Annual MBO Bonus Plan that will
pay up $50,000 based upon successful completion of the objectives. The President and Chief Executive Officer will work with you to establish your objectives. The objectives will be provided to you
within your first thirty days with the Company. Your bonus will be calculated and paid at your one-year anniversary. 

        c.    Annual Review.    Your base salary will be reviewed annually as part of the Company's
normal salary review process. 

        d.    Health Insurance.    At your request, we will not enroll you in our standard Health
plan. In lieu of this coverage, we are increasing your semi monthly compensation by $375. 

        5.    Stock Option.    In connection with the commencement of your employment, the Company
will recommend that the Board of Directors grant you an option to purchase 120,000 shares of the Company's Common Stock ("Shares") with an exercise
price equal to the fair market value on the date 

of
the grant. These option shares will vest according to the following schedule: 1/4th of the total shares shall vest on the annual anniversary of your commencement date (June 1, 2003)
and 1/48th of the shares shall vest monthly thereafter over the next three years. Vesting will, of course, depend on your continued employment with the Company. The option will be an incentive
stock option to the maximum extent allowed by the tax code and will be subject to the terms of the Company's Stock Plan and the Stock Option Agreement between you and the Company. 

        6.    Benefits.    You have opted to not participate in our standard health plan so you can
continue under your current plan. We will be providing our standard dental and vision plan. Employees are eligible for 10 days of vacation in their first full calendar year of employ and
15 days in each calendar year thereafter. Further details about benefits are available for your review. ePocrates may modify compensation and benefits from time to time, as it deems necessary. 

        7.    Confidential Information and Invention Assignment Agreement.    Your acceptance of this
offer and commencement of employment with the Company is contingent upon the execution, and delivery to an officer of the Company, of the Company's Confidential Information and Invention Assignment
Agreement (the "Confidentiality Agreement"), a copy of which is enclosed for your review and execution, prior to or on your Start Date. 

        8.    Confidentiality of Terms.    You agree to follow the Company's strict policy that
employees must not disclose, either directly or indirectly, any information, including any of the terms of this agreement, regarding salary, bonuses, or stock purchase or option allocations to any
person, including other employees of the Company; provided, however, that you may discuss such terms with members of your immediate family and any legal, tax or accounting specialists who provide you
with individual legal, tax or accounting advice. 

        9.    At-Will Employment.    Your employment with the Company will be on an "at
will" basis, meaning that either you or the Company may terminate your employment at any time for any reason or no reason, without further obligation or liability. 

        10.    Severance.    If the Company conducts a layoff of 75% or more of its
then-current employees, and if you are selected to be included in such a layoff, you will receive continuation of your base salary, less standard deductions and withholdings, for a period
of two (2) months after your termination date. This severance amount will be in lieu of any severance benefits offered to other laid-off employees. In order to receive this
severance payment, you must sign a general release of all claims in a format acceptable to the Company and allow this release to become effective. 

        We
are all delighted to be able to extend you this offer and look forward to working with you. To indicate your acceptance of the Company's offer, please sign and date this letter in the
space provided below and return it to me, along with a signed and dated copy of the Confidentiality Agreement. This letter, together with the Confidentiality Agreement, 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 the
Company and by you. 

        This
offer is contingent on the successful completion of a background check, which we will initiate upon receipt of your application. 

This
offer is valid until May 17, 2002. 

 

 

					
	  Very truly yours,

ePocrates, Inc.
	 	 
	 
	 	 	 	 
	  /s/ JOHN S. OWENS

  John S. Owens

Vice President

Human Resources	 	 
	  ACCEPTED AND AGREED

Robert Quinn
	 	 
	  /s/ ROBERT QUINN

  Signature	 	 
	  May 16, 2002

  Date	 	 
	  6/1/02

  Start date

	 	 

 

 Enclosure:
Confidential Information and Invention Assignment Agreement 

 

 [Epocrates Letterhead]

March 11,
2008 

Robert
Quinn
 [Address]

 Re: Modification of Employment Terms  

Dear
Robert: 

As
we have discussed, this letter agreement confirms an amendment (the "Amendment") to the terms of your employment offer letter with
Epocrates, Inc. (the "Company") dated May 15, 2002 (the "Offer Letter"). The Amendment
will become effective only as of the effective date of the initial public offering of the Company's common stock (the "IPO"), and if the IPO does not
occur, this Amendment will not become effective. For the purposes of the Offer Letter and this Amendment, we agree that the IPO will not qualify as a Change of Control (defined in Section 11). 

The
Amendment is as follows: 

        1.     Section 10 of the Offer Letter will be superseded in its entirety and replaced with the following: 

        10.    Severance Benefits Not In Connection With A Change of
Control.    If, at any time other than during the twelve (12) months following the consummation of a Change of Control (as defined in Section 11
herein), the Company or any successor entity terminates your employment without Cause (as defined herein), and if you first sign, date, and deliver to the Company a separation agreement that includes
a general release of all known and unknown claims in the form provided to you by the Company and allow this separation agreement and release to become effective, then you will receive the following as
your sole severance benefits (the "Severance Benefits"): (i) severance pay equal to six (6) months of your base salary in effect as of the
termination date, less required deductions and withholdings, paid in the form of salary continuation on the Company's standard payroll dates (beginning with the first payroll date following the
effective date of the required separation agreement); and (ii) provided that you timely elect continued group health insurance coverage through federal COBRA law or comparable state law
(collectively, "COBRA"), the Company will pay your COBRA premiums sufficient to continue your group health insurance coverage at the same level in
effect as of your termination date for six (6) months after your termination or until you become eligible for group health insurance coverage through a new employer, whichever occurs first. For
purposes of this letter agreement, "Cause" means any of the following conduct by you: (i) embezzlement, misappropriation of corporate funds, or
other material acts of dishonesty; (ii) the conviction, plea of guilty, or nolo contendere to any felony (not involving the operation of a motor vehicle), or of any misdemeanor involving moral
turpitude; (iii) engagement in any activity that you know or should know could materially harm the business or reputation of the Company, provided that this subsection (iii) shall not
apply to any activity done in a good faith belief by you that the action taken or omission was in the best interest of the Company; (iv) material violation of any statutory, contractual, or
common law duty or obligation owed by you to the Company, including, without limitation, the duty of loyalty which causes demonstrable injury to the Company; (v) material breach of the
Confidentiality Agreement; or (vi) repeated failure, in the reasonable judgment of the Board, to substantially perform your assigned duties or responsibilities after written notice from the
Board describing the failure(s) in reasonable detail and your failure to cure such failure(s) within thirty (30) days of receiving such written notice, provided that written notice only must be
provided if the failure(s) are capable of cure. 

1

 

        2.     The following will become Section 11 of the Offer Letter. 

        11.    Change of Control Severance Benefits    In the event that:
(i) the Company consummates a change of control transaction, whereby fifty percent (50%) or more of the voting stock of the Company changes ownership pursuant to such transaction (a
"Change of Control"); and (ii) within twelve (12) months after the consummation of a Change of Control, your employment with the Company
is either (a) terminated
by the Company or successor entity without Cause (as defined in Section 10 herein), or (b) terminated by you for Good Reason (as defined in and in accordance with the paragraph below);
and (iii) you sign, date, and deliver to the Company a separation agreement that includes a general release of all known and unknown claims in the form provided to you by the Company and allow
this separation agreement and release to become effective; then you will receive the following as your sole severance benefits (the "Change of Control Severance
Benefits"): (a) severance pay equal to nine (9) months of your base salary in effect as of the termination date, less required deductions and withholdings, paid
in the form of salary continuation on the Company's standard payroll dates (beginning with the first payroll date following the effective date of the required separation agreement);
(b) provided that you timely elect continued group health insurance coverage through COBRA, the Company will pay your COBRA premiums sufficient to continue your group health insurance coverage
at the same level in effect as of your termination date for nine (9) months after your termination or until you become eligible for group health insurance coverage through a new employer,
whichever occurs first; and (c) notwithstanding the vesting schedule set forth in Section 5, any unvested shares subject to any option grants held by you as of the employment termination
date (including, but not limited to, any unvested Shares subject to the option grant discussed in Section 5) will become vested and exercisable, effective as of the employment termination date. 

        For
purposes of this Section 11, "Good Reason" shall mean one or more of the following conditions that resulted from the
consummation of the Change of Control without your written consent: (i) a relocation of your assigned office more than thirty-five (35) miles from its location immediately
prior to the Change of Control; (ii) a material decrease in your base salary (except for salary decreases generally applicable to the Company's other executive employees); or (iii) a
material reduction in the scope of your duties or responsibilities from your duties and responsibilities in effect immediately prior to the Change of Control. Notwithstanding the foregoing, you shall
not be deemed to have terminated your employment for "Good Reason" unless (i) such termination occurs within ninety (90) days following the initial existence of one or more of the
conditions that constitute Good Reason (as defined herein), and (ii) you provide written notice to the Company (or any successor entity) of the existence of the Good Reason condition within
thirty (30) days following the initial existence of the condition, and the Company (or its successor entity) shall have a period of thirty (30) days following such notice to cure the
condition. If the condition is cured within such time period, such condition shall not constitute a condition for which you may terminate your employment for Good Reason. 

        3.     The following will become Section 12 of the Offer Letter. 

        12.    Parachute Payments.    In the event that the benefits provided
for in this letter agreement or otherwise payable to you ("Payment") would constitute "parachute payments" within the meaning of Section 280G of
the Internal Revenue Code of 1986, as amended (the "Code") and, but for this sentence, would 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. The "Reduced
Amount" shall be either (i) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (ii) the largest
portion, up to and including the total, of the Payment, whichever of the foregoing amounts, 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 the receipt by you, on an after-tax basis, of the greater 

2

 

amount
of the Payment, notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. Unless the Company and you otherwise agree in writing, the determination of your Excise
Tax liability shall be made in writing by the accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the Change of Control (the
"Accountants"). If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the
Change of Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. For purposes of making the calculations required by this
Section 12, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of
Sections 280G and 4999 of the Code. Any good faith determinations of the Accountants made hereunder shall be final, binding, and conclusive upon the Company and you. The Company and you shall
furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the
Accountants may reasonably incur in connection with any calculations contemplated by this Section 12. To the extent that any elimination in or reduction of payments or benefits is made under
this Section 12, the determination as to the order in which payments and benefits shall be reduced shall be made by you (subject, however, to the Company's approval if made on or after the date
on which the event that triggers the payments or benefits occurs). 

        4.     The following will become Section 13 of the Offer Letter. 

        13.    Deferred Compensation.    Severance payments made pursuant to
Section 10 or Section 11, to the extent of payments made from the date of your termination through March 15 of the calendar year following your termination, are intended to
constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations and thus payable pursuant to the "short-term deferral" rule set forth in
Section 1.409A-1(b)(4) of the Treasury Regulations. To the extent such payments are made following said March 15, they are intended to constitute separate payments for
purposes of Section 1.409A-2(b)(2) of the Treasury Regulations made upon an involuntary termination from service and payable pursuant to
Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by such provision, with any excess amount being regarded as subject to the distribution
requirements of Section 409A(a)(2)(A) of the Code, including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of the Code that payment be delayed until six
(6) months after separation from service if you are a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such separation from service. 

Except
as modified herein, all other terms of the Offer Letter shall remain in full force and effect. 

This
Amendment, together with the Offer Letter, constitutes the entire agreement between you and the Company regarding the terms of your employment, effective as of the first business day of the IPO.
It supersedes any prior statements, representations or promises made to you concerning the subjects contained in this letter agreement and the Offer Letter, and only can be modified in a writing
signed by you and a duly authorized director or officer of Epocrates. 

Please
sign below if these terms are acceptable to you. 

3

 

Understood and Agreed:

 

 

			
	/s/ John Owens

  John Owens

Vice President

Human Resources

Epocrates, Inc.	 	/s/ Robert Quinn

  Robert Quinn

Chief Technology Officer

Senior Vice President, Engineering

Epocrates, Inc.
	    	 	 
	4/15/08

  Date	 	3/31/08

  Date

 

 4

 

 
 

  [ePOCRATES Letterhead]    
    

December 23,
2008 

Robert
Quinn 

	Re:
	Amendment to May 15, 2002 Offer Letter Agreement

Dear
Robert: 

        This
letter agreement confirms an amendment (the "Amendment") to the terms of your offer letter agreement dated May 15, 2002 (the
"Offer Letter") with Epocrates, Inc. (the "Company"). This Amendment is effective as of
December 23, 2008. 

        The
Offer Letter is hereby amended by adding the following new sentence to the end of the Offer Letter: 

The
fully executed and effective general release of all claims discussed in this offer letter must be provided by you to the Company within the applicable time period set forth in the Release but in
no event later than sixty (60) days following your termination of employment. 

        Except
as modified herein, all other terms of the Offer Letter shall remain in full force and effect. This Amendment only can be modified in a writing signed by you and a duly authorized
director or officer of Epocrates. 

        Please
sign below to indicate your agreement to the Amendment. 

 

 

			
	Understood and Agreed:	 	 
	
 /s/ John Owens

  John Owens

Vice President, Human Resources

Epocrates, Inc.	
 	
/s/ Robert Quinn

  Robert Quinn

Chief Technology Officer

Senior Vice President, Engineering

Epocrates, Inc.

 

  

 

 

			
	12/23/08

 	 	12/29/08

 
	Date	 	Date

 

 1

 
 

  [ePOCRATES Letterhead]    
    

May 12,
2009 

VIA
HAND DELIVERY 

Robert
Quinn 

	Re:
	Amended and Restated Severance Benefits Agreement

Dear
Robert: 

        As
we have discussed, this severance benefits agreement confirms an amendment (the "Amendment") to the terms of your employment offer
letter with Epocrates, Inc. (the "Company") dated May 15, 2002 (the "Offer Letter"). This
Amendment supersedes and replaces in full the March 11, 2008 letter agreement between you and the Company (the "IPO Agreement"), and the
amendment to the Offer Letter between you and the Company dated December 23, 2008 (the "Previous Amendment"). This
Amendment is effective as of May 12, 2009, provided that you sign and return this Amendment within five (5) business days after your receipt of this Amendment. 

        The
Amendment is as follows: 

        1.     Section 10 of the Offer Letter is superseded and replaced in its entirety with the following: 

        10.    Severance Benefits Not In Connection With A
Change of Control.    If, at any time other than during the twelve (12) months following the consummation of a Change of Control (as
defined in Section 11 herein), the Company or any successor entity terminates your employment without Cause (as defined herein), and if you first sign, date, and deliver to the Company a
separation agreement that includes a general release of all known and unknown claims in the form provided to you by the Company (the "Release") and
allow the Release to become effective, then you will receive the following as your sole severance benefits (the "Severance Benefits"):
(i) severance pay equal to six (6) months of your base salary in effect as of the termination date, less required deductions and withholdings, paid in the form of salary continuation on
the Company's standard payroll dates (beginning with the first payroll date following the effective date of the Release); and (ii) provided that you timely elect continued group health
insurance coverage through federal COBRA law or comparable state law (collectively, "COBRA"), the Company will pay your COBRA premiums sufficient to
continue your group health insurance coverage at the same level in effect as of your termination date for six (6) months after your termination or until you become eligible for group health
insurance coverage through a new employer, whichever occurs first. For purposes of this letter agreement, "Cause" means any of the following conduct by
you: (i) embezzlement, misappropriation of corporate funds, or other material acts of dishonesty; (ii) the conviction, plea of guilty, or nolo contendere to any felony (not involving the
operation of a motor vehicle), or of any misdemeanor involving moral turpitude; (iii) engagement in any activity that you know or should know could materially harm the business or reputation of
the Company, provided that this subsection (iii) shall not apply to any activity done in a good faith belief by you that the action taken or omission was in the best interest of the Company;
(iv) material violation of any statutory, contractual, or common law duty or obligation owed by you to the Company, including, without limitation, the duty of loyalty which causes demonstrable
injury to the Company; (v) material breach of the Confidentiality Agreement; or (vi) repeated failure, in the reasonable judgment of the Company's Board of Directors (the
"Board"), to substantially perform your assigned duties or responsibilities after written notice from the Board describing the failure(s) in reasonable
detail and your failure to cure such failure(s) within thirty (30) days of receiving such written notice, provided that written notice only must be provided if the failure(s) are capable of
cure. 

        2.     The following becomes Section 11 of the Offer Letter. 

        11.    Change of Control Severance
Benefits.    In the event that: (i) the Company consummates a change of control transaction, whereby fifty percent (50%) or more of the
voting stock of the 

 

Company
changes ownership pursuant to such transaction (a "Change of Control"); and (ii) within twelve (12) months after the consummation
of a Change of Control, your employment with the Company is either (a) terminated by the Company or successor entity without Cause (as defined in Section 9 herein), or
(b) terminated by you for Good Reason (as defined in and in accordance with the paragraph below); and (iii) you sign, date, and deliver to the Company the Release and allow it to become
effective; then you will receive the following as your sole severance benefits (the "Change of Control Severance Benefits"): (a) severance pay
equal to nine (9) months of your base salary in effect as of the termination date, less required deductions and withholdings, paid in the form of salary continuation on the Company's standard
payroll dates (beginning with the first payroll date following the effective date of the Release); (b) provided that you timely elect continued group health insurance coverage through COBRA,
the Company will pay your COBRA premiums sufficient to continue your group health insurance coverage at the same level in effect as of your termination date for nine (9) months after your
termination or until you become eligible for group health insurance coverage through a new employer, whichever occurs first; and (c) any unvested shares subject to any option grants held by you
as of the employment termination date will become vested and exercisable, effective as of the employment termination date. 

        For
purposes of this Section 11, "Good Reason" shall mean one or more of the following conditions that arose upon or following the
consummation of the Change of Control without your written consent: (i) a relocation of your assigned office more than thirty-five (35) miles from its location immediately
prior to the Change of Control; (ii) a material decrease in your base salary (except for salary decreases generally applicable to the Company's other executive employees); or (iii) a
material reduction in the scope of your duties or responsibilities from your duties and responsibilities in effect immediately prior to the Change of Control. Notwithstanding the foregoing, you shall
not be deemed to have terminated your employment for "Good Reason" unless (i) such termination occurs within ninety (90) days following the initial existence of one or more of the
conditions that constitute Good Reason (as defined herein), (ii) you provide written notice to the Company (or any successor entity) of the existence of the Good Reason condition within thirty
(30) days following the initial existence of the condition, and (iii) the Company (or its successor entity) fails to cure such condition within a period of thirty (30) days
following such written notice. 

        3.     The following becomes Section 12 of the Offer Letter. 

        12.    Parachute
Payments.    In the event that the benefits provided for in this letter agreement or otherwise payable to you
("Payment") would constitute "parachute payments" within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the
"Code") and, but for this sentence, would 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. The "Reduced Amount" shall be either (i) the largest
portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (ii) the largest portion, up to and including the total, of the Payment, whichever of
the foregoing amounts, 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 the receipt by you, 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. Unless
the Company and you otherwise agree in writing, the determination of your Excise Tax liability shall be made in writing by the accounting firm engaged by the Company for general audit purposes as of
the day prior to the effective date of the Change of Control (the "Accountants"). If the accounting firm so engaged by the Company is serving as
accountant or auditor for the individual, entity or group effecting the Change of Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required
hereunder. For purposes of making the calculations required by this Section 12, the Accountants may make 

2

 

reasonable
assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.
Any good faith determinations of the Accountants made hereunder shall be final, binding, and conclusive upon the Company and you. 

        The
Company and you shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The
Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 12. To the extent that any elimination in or reduction of
payments or benefits is made under this Section 12, the order in which payments and benefits shall be reduced shall be made by the Accountants in a manner that shall provide you with the
greatest economic benefit, but if more than one manner of reduction of payments and benefits necessary to arrive at the Reduced Amount yields the greatest economic benefit to you, then the payments
and benefits shall be reduced pro rata. 

        4.     The following becomes Section 13 of the Offer Letter. 

        13.    Deferred
Compensation.    Severance payments made pursuant to Section 10 or Section 11, to the extent of payments made from the date of
your termination through March 15 of the calendar year following your termination, are intended to constitute separate payments for purposes of Section 1.409A- 2(b)(2) of the Treasury
Regulations and thus payable pursuant to the "short-term deferral" rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations. To the extent such payments are
made following said March 15, they are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations made upon an involuntary
termination from service and payable pursuant to Section 1.409A-1(b)(9)(iii)
of the Treasury Regulations, to the maximum extent permitted by such provision, with any excess amount being regarded as subject to the distribution requirements of Section 409A(a)(2)(A) of the
Code, including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of the Code that payment be delayed until six (6) months after separation from service if you are a
"specified employee" within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such separation from service. Notwithstanding anything to the contrary set forth herein, if any
payments and benefits provided under this offer letter agreement that constitute "deferred compensation" within the meaning of Section 409A of the Code and the regulations and other guidance
thereunder and any state law of similar effect (collectively "Section 409A") (i) such payments and benefits shall not commence in
connection with your termination of employment unless and until you also have incurred a "separation from service" (as such term is defined in Treasury Regulations
Section 1.409A-1(h)), unless the Company reasonably determines that such amounts may be provided to you without causing you to incur the adverse personal tax consequences under
Section 409A, and (ii) the Release required by Sections 10 and 11 above shall be considered effective only as of the latest permitted effective date for such Release if such
Release could become effective in the calendar year following the calendar year in which your employment termination occurs. 

        Except
as modified herein, all other terms of the Offer Letter shall remain in full force and effect. 

        This
Amendment, together with the Offer Letter and the Confidentiality Agreement, constitutes the entire agreement between you and the Company regarding the terms of your employment, and
supersedes any prior statements, representations or promises made to you concerning the subjects contained in this Amendment and the Offer Letter (including but not limited to the IPO Agreement and
the Previous Amendment). This Amendment only can be modified in a writing signed by you and a duly authorized director or officer of Epocrates. 

3

 

        Please
sign below if these terms are acceptable to you, and return the fully signed Amendment to me within five (5) business days. 

 

 

			
	Understood and Agreed:	 	 
	
 /s/ John Owens

  John Owens

Senior Vice President

Human Resources

Epocrates, Inc.	
 	
/s/ Robert Quinn

  Robert Quinn

Executive Vice President

Chief Technology Officer

Epocrates, Inc.

 

  

 

 

			
	5/12/09

  Date	 	5/12/09

  Date

 

 4

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Exhibit 10.16

[ePOCRATES Letterhead]

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  Exhibit 10.17    
    

 
    [ePOCRATES Letterhead]    
    

October 16,
2009 

Geoff Rutledge

Re:    Employment
Terms 

Dear
Geoff, 

        On
behalf of Epocrates, Inc. ("Epocrates" or the  "Company"), I am pleased to offer you the full-time
position of  Executive Vice President Product Development and Chief Medical Officer. The terms and conditions of your new position and employment relationship with
the Company are as set forth below: 

        1.    Position and Work Schedule.    

        a.     You
will become the Executive Vice President Product Development and Chief Medical Officer for the Company. You will
report directly to Chief Executive Officer and work out of the Company's corporate headquarters in San Mateo, California. This is a
full-time position. 

        b.     You
agree to the best of your ability and experience that you will at all times conscientiously perform all of the duties and obligations required of you to the
satisfaction of the Company. During the term of your employment, you further agree that you will devote your full business time and attention to the business of the Company, the Company will be
entitled to all of the benefits and profits arising from or incident to all such work services and advice, you will not render commercial or professional services of any nature to any person or
organization, or engage in self-employment, whether or not for compensation, without the prior written consent of the Company, and you will not directly or indirectly engage or participate in any
business that is competitive in any manner with the business of the Company. Nothing in this letter agreement will prevent you from accepting speaking or presentation engagements in exchange for
honoraria or from serving on boards of charitable organizations, or from owning no more than one percent (1%) of the outstanding equity securities of a corporation whose stock is listed on a national
stock exchange. 

        c.     Notwithstanding
the preceding paragraph, pursuant to your request, the Company has agreed to permit you to continue working for your current employer in order to complete
an orderly transition, through December 31, 2009. During this transition period, you will be permitted to provide services to your current employer in an amount not to exceed one
(1) business day per week, Pursuant to our discussions, we anticipate that your continued involvement with your current employer during this transition period will not create a conflict of
interest with the Company or otherwise adversely impact the Company, and will not interfere with your ability to work as the full-time CMO of the Company; however, if, at any time, the
Company reasonably determines that your continued involvement with your current employer does create any conflict of interest, or materially interferes with your work for the Company, then you agree
that you will immediately discontinue your continued involvement and immediately resign from your current employer. In addition, we have agreed that you will maintain a clinical practice where you
will be able to see patients one day per week. 

        2.    Start Date.    Subject to fulfillment of any conditions imposed by this letter
agreement, you will commence this new position with the Company on November 1, 2009 or any other mutually agreeable date (the
"Start Date"). 

        3.    Proof of Right to Work.    For purposes of federal immigration law, you will be required
to provide to the Company documentary proof of your identity and eligibility for employment in the United States. This offer of employment is contingent upon such satisfactory proof. 

        4.    Compensation.    

        a.    Base Salary.    Your initial base salary will be payable in semi monthly installments of
$10,833.33 pursuant to the Company's regular payroll policy, which equates to an annual base salary of $260,000. Because your position is classified as exempt, you will not be eligible for overtime
premiums or additional compensation. Your base salary may be reviewed annually as part of the Company's normal salary review process. Any changes to your base salary are at the Company's sole
discretion. 

        b.    Bonus Compensation.    You will be eligible to participate in the 2009 Executive Bonus
Plan (the "Bonus Plan"), pursuant to the terms and conditions of the Bonus Plan. Your target bonus will be 40% of your 2009 earnings, and the actual
bonus paid will be based upon the Company's performance (as determined by the Company) against the Bonus Plan. You must remain employed during the entire year to earn and be eligible to receive a
bonus under the Bonus Plan. Whether a bonus has been earned under the Bonus Plan, and the amount of any bonus earned, will be determined by the Company and approved by the Board of Directors within
its sole discretion. Any bonus earned is to be paid in the following calendar year as provided under the Bonus Plan. 

        5.    Equity Awards.    

        a.    Stock Options.    In connection with the commencement of your employment, the Company
will recommend that the Board of Directors (the "Board") grant you an option to purchase one hundred fifteen thousand (115,000) shares of the Company's
Common Stock ("Shares") under the Company's 2008 Equity Incentive Plan (the "Plan") with an exercise
price equal to the fair market value on the date of the grant as determined by the Board (the "Option"). The Option will be subject to the terms of the
Plan and your individual Stock Option Agreement with the Company, which shall include the following vesting schedule for the Shares: 1/4th of the Shares shall vest on the first
annual anniversary of the Start Date, and 1/48th of the Shares shall vest monthly thereafter over the next three years. Vesting will, of course, depend on your continued service
with the Company, as defined by the Plan. The Option will be an incentive stock option to the maximum extent allowed by the tax code. 

        b.    Restricted Stock Units.    In connection with the commencement of your employment, the
Company also will recommend that the Board award to you restricted stock units covering thirty-eight thousand three hundred thirty-four (38,334) shares of the Company's Common Stock under
the Plan and subject to the terms and conditions of the Plan, your stock unit award agreement, and your stock unit grant notice, including but not limited to vesting and issuance schedules. 

        6.    Benefits.    Subject to the terms, conditions and limitations of the benefit plans, you
will be eligible to participate in the Company's standard employee benefits currently consisting of short/long term disability, medical, dental, and vision insurance benefits. Eligibility for
participation in these group benefits will become effective the first of the month following your Start Date. Regular full-time and part-time exempt employees do not accrue vacation, sick
leave, or other paid time-off, and there is no set guideline on how much time-off employees will be permitted to take. Exempt employees may take a reasonable amount of
time-off with pay, as permitted by their duties and responsibilities, and as approved in advance by their managers. Further details about benefits are available for your review. Epocrates
may modify compensation and benefits from time to time at its discretion. 

        7.    Employee 401(k) Plan.    You will be eligible to participate in Epocrates' 401(K) plan
beginning on the first of the month following your Start Date. Employees who choose to participate will have pre-tax dollars deposited into their 401(K) account and the money will be
directed to specified investment options. Epocrates does not match funds or make contributions. 

        8.    Confidential Information and Invention Assignment Agreement.    Your acceptance of this
offer and commencement of employment with the Company is contingent upon the execution, and delivery to an officer of the Company, of the Company's Confidential Information and Invention Assignment
Agreement (the "Confidentiality Agreement"), a copy of which is enclosed for your review and execution, prior to or on your Start Date. You are also
required to abide by the Confidentiality 

Agreement
as a condition of your employment. In your 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 may use only that information 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, or developed by you on behalf of the Company. You agree that
you will not bring onto Company premises any unpublished documents or property belonging to any former employer or other person to whom you have an obligation of confidentiality. 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. 

        9.    Company Policies.    As a condition of your employment, you will be expected to abide by
the Company policies and procedures, and acknowledge in writing that you have read and will comply with the Company's Employee Handbook. 

        10.    At-Will Employment.    Your employment with the Company will be on an "at
will" basis, meaning that either you or the Company may terminate your employment at any time, with or without cause, and with or without advance notice. Your employment at-will status can
only be modified in a written agreement signed by you and by a duly authorized officer of the Company. 

        11.    Severance Benefits Not In Connection With A Change of Control.    If, at any time other
than during the twelve (12) months following the consummation of a Change of Control (as defined herein), the Company or any successor entity terminates your employment without Cause (as
defined herein), and provided you first sign, date, and deliver to the Company a separation agreement that includes a general release of all known and unknown claims in the form provided to you by the
Company (the "Release") and allow the Release to become effective, then you will receive the following as your sole severance benefits  (the "Severance Benefits"): (i) severance pay equal to six (6) months of your base salary
in effect as of the termination date, less required deductions and withholdings, paid in the form of salary continuation on the Company's standard payroll dates (beginning with the first payroll date
following the effective date of the Release); and (ii) provided that you timely elect continued group health insurance coverage through federal COBRA law or comparable state law (collectively,  "COBRA"), the Company will pay your COBRA premiums sufficient to continue your group health insurance coverage at the same level in effect as of your
termination date for six (6) months after your termination or until you become eligible for group health insurance coverage through a new employer, whichever occurs first. For purposes of this
letter agreement, "Cause" means any of the following conduct by you: (i) embezzlement, misappropriation of corporate funds, or other material acts of dishonesty; (ii) the conviction,
plea of guilty, or nolo contendere to any felony (not involving the operation of a motor vehicle), or of any misdemeanor involving moral turpitude; (iii) engagement in any activity that you
know or should know could materially harm the business or reputation of the Company, provided that this subsection (iii) shall not apply to any activity done in a good faith belief by you that
the action taken or omission was in the best interest of the Company; (iv) material violation of any statutory, contractual, or common law duty or obligation owed by you to the Company,
including, without limitation, the duty of loyalty which causes demonstrable injury to the Company; (v) material breach of the Confidentiality Agreement; or (vi) repeated willful
failure, in the reasonable judgment of the Company, to substantially perform your assigned duties or responsibilities after written notice from the Company describing the failure(s) in reasonable
detail and your failure to cure such failure(s) within thirty (30) days of receiving such written notice, provided that written notice only must be provided if the failure(s) are capable of
cure. 

        12.    Change of Control Severance Benefits.    In the event that: (i) the Company
consummates a change of control transaction, whereby fifty percent (50%) or more of the voting stock of the Company changes ownership pursuant to such transaction (a "Change of
Control"); and (ii) within twelve (12) months after the consummation of a Change of Control, your employment with the Company is either (a) terminated by
the Company or successor entity without Cause, or (b) terminated by you for Good Reason (as defined in and in accordance with the paragraph below); and (iii) you sign, date, and deliver
to the Company the Release and allow it to become effective; then you will receive the 

following
as your sole severance benefits (the "Change of Control Severance Benefits"): (a) severance pay equal to nine (9) months of your
base salary in effect as of the termination date, less required
deductions and withholdings, paid in the form of salary continuation on the Company's standard payroll dates (beginning with the first payroll date following the effective date of the Release);
(b) provided that you timely elect continued group health insurance coverage through COBRA, the Company will pay your COBRA premiums sufficient to continue your group health insurance coverage
at the same level in effect as of your termination date for nine (9) months after your termination or until you become eligible for group health insurance coverage through a new employer,
whichever occurs first; and (c) any unvested shares subject to any equity awards (e.g. option grants and restricted stock units) held by you as
of the employment termination date will become vested, effective as of the employment termination date. 

        13.    Definition of Good Reason.    For purposes of this Agreement,  "Good Reason" shall mean one
or more of the following conditions that arose upon or following the consummation of a Change of Control without your
written consent: (i) a relocation of your assigned office more than thirty-five (35) miles from its location immediately prior to the Change of Control; (ii) a
material decrease in your base salary (except for salary decreases generally applicable to the Company's other executive employees); or (iii) a material reduction in the scope of your duties or
responsibilities from your duties and responsibilities in effect immediately prior to the Change of Control. Notwithstanding the foregoing, you shall not be deemed to have terminated your employment
for "Good Reason" unless (i) such termination occurs within ninety (90) days following the initial existence of one or more of the conditions that constitute Good Reason (as defined
herein), (ii) you provide written notice to the Company (or any successor entity) of the existence of the Good Reason condition within thirty (30) days following the initial existence of
the condition, and (iii) the Company (or its successor entity) falls to cure such condition within a period of thirty (30) days following such written notice. 

        14.    Parachute Payments.    In the event that the benefits provided for in this letter
agreement or otherwise payable to you ("Payment") would constitute "parachute payments" within the meaning of Section 280G of the Internal
Revenue Code of 1986, as amended (the "Code") and, but for this sentence, would 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. The "Reduced Amount" shall
be either (i) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (ii) the largest portion, up to and including the
total, of the Payment, whichever of the foregoing amounts, 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 the involving moral turpitude; (iii) engagement in any activity that you know or should know could materially harm the business or reputation of
the Company, provided that this subsection (iii) shall not apply to any activity done in a good faith belief by you that the action taken or omission was in the best interest of the Company;
(iv) material violation of any statutory, contractual, or common law duty or obligation owed by you to the Company, including, without limitation, the duty of loyalty which causes demonstrable
injury to the Company; (v) material breach of the Confidentiality Agreement; or (vi) repeated willful failure, in the reasonable judgment of the Company, to substantially perform your
assigned duties or responsibilities after written notice from the Company describing the failure(s) in reasonable detail and your failure to cure such failure(s) within thirty (30) days of
receiving such written notice, provided that written notice only must be provided if the failure(s) are capable or cure. 

        12.    Change of Control Severance Benefits.    In the event that: (i) the Company
consummates a change of control transaction, whereby fifty percent (50%) or more of the voting stock of the Company changes ownership pursuant to such transaction (a "Change of
Control"); and (ii) within twelve (12) months after the consummation of a Change of Control, your employment with the Company is either (a) terminated by
the Company or successor entity without Cause, or (b) terminated by you for Good Reason (as defined in and in accordance with the paragraph below); and (iii) you sign, date, and deliver
to the Company the Release and allow it to become effective; then you will receive the following as your sole severance benefits (the "Change of Control Severance
Benefits"): (a) severance pay equal to nine (9) months of your base salary in effect as of the termination date, less required 

deductions
and withholdings, paid in the form of salary continuation on the Company's standard payroll dates (beginning with the first payroll date following the effective date of the Release);
(b) provided that you timely elect continued group health insurance coverage through COBRA, the Company will pay your COBRA premiums sufficient to continue your group health insurance coverage
at the same level in effect as of your termination date for nine (9) months after your termination or until you become eligible for group health insurance coverage through a new employer,
whichever occurs first; and (c) any unvested shares subject to any equity awards (e.g. option grants and restricted stock units) held by you as of the employment termination date will
become vested, effective as of the employment termination date. 

        13.    Definition of Good Reason.    For purposes of this Agreement,  "Good Reason" shall mean one
or more of the following conditions that arose upon or following the consummation of a Change of Control without your
written consent: (i) a relocation of your assigned office more than thirty-five (35) miles from its location immediately prior to the Change of Control; (ii) a
material decrease in your base salary (except for salary decreases generally applicable to the Company's other executive employees); or (iii) a material reduction in the scope of your duties or
responsibilities from your duties and responsibilities in effect immediately prior to the Change of Control. Notwithstanding the foregoing, you shall not be deemed to have terminated your employment
for "Good Reason" unless (i) such termination occurs within ninety (90) days following the initial existence of one or more of the conditions that constitute Good Reason (as defined
herein), (ii) you provide written notice to the Company (or any successor entity) of the existence of the Good Reason condition within thirty (30) days following the initial existence of
the condition, and (iii) the Company (or its successor entity) falls to cure such condition within a period of thirty (30) days following such written notice. 

        14.    Parachute Payments.    In the event that the benefits provided for in this letter
agreement or otherwise payable to you ("Payment") would constitute "parachute payments" within the meaning of Section 280G of the Internal
Revenue Code of 1986, as amended (the "Code") and, but for this sentence, would 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. The "Reduced Amount" shall
be either (i) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (ii) the largest portion, up to and including the
total, of the Payment, whichever of the foregoing amounts, 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 the receipt by you, 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. Unless the Company and you otherwise agree in writing, the determination of your Excise Tax liability shall be made in writing by the accounting firm
engaged by the Company for general audit purposes as of the day prior to the effective date of the Change of Control (the "Accountants"). If the
accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Change of Control, the Company shall appoint a nationally recognized
accounting firm to make the determinations required hereunder. For purposes of making the calculations required by this Section 13, the Accountants may make reasonable assumptions and
approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. Any good faith determinations
of the Accountants made hereunder shall be final, binding, and conclusive upon the Company and you. The Company and you shall furnish to the Accountants such information and documents as the
Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations
contemplated by this Section 13. To the extent that any elimination in or reduction of payments or benefits is made under this Section 13, the order in which payments and benefits shall
be reduced shall be made by the Accountants in a manner that shall provide you with the greatest economic benefit, but if more than one manner of reduction of payments and benefits necessary to arrive
at the Reduced Amount yields the greatest economic benefit to you, then the payments and benefits shall be reduced pro rata. 

        15.    Deferred Compensation.    Severance payments made pursuant to Section 11 or
Section 12, to the extent of payments made from the date of your termination through March 15 of the calendar year following your termination, are intended to constitute separate
payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations and thus payable pursuant to the "short-term deferral" rule set forth in
Section 1.409A-1(b)(4) of the Treasury Regulations. To the extent such payments are made following said March 15, they are intended to constitute separate payments for
purposes of Section 1.409A-2(b)(2) of the Treasury Regulations made upon an involuntary termination from service and payable pursuant to
Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by such provision, with any excess amount being regarded as subject to the distribution
requirements of Section 409A(a)(2)(A) of the Code, including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of the Code that payment be delayed until six
(6) months after separation from service if you are a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such separation from service,
Notwithstanding anything to the contrary set forth herein, if any payments and benefits provided under this Agreement constitute "deferred compensation" within the meaning of Section 409A of
the Code and the regulations and other guidance thereunder and any state law of similar effect (collectively "Section 409A") (i) such
payments and benefits shall not commence in connection with your termination of employment unless and until you also have incurred a "separation from service" (as such term is defined in Treasury
Regulations Section 1.409A-I(h)), unless the Company reasonably determines that such amounts may be provided to you without causing you to incur the adverse personal tax
consequences under Section 409A, and (ii) the Release required by Sections 11 and 12 above shall be considered effective only as of the latest permitted effective date for such
Release if such Release could become effective in the calendar year following the calendar year in which your employment termination occurs. 

        16.    Complete Agreement.    This letter, together with your Confidentiality Agreement, forms
the complete and exclusive statement of your employment agreement with the Company. The terms in this letter supersede any other agreements or promises made to you by anyone, whether oral or written.
Other than those changes expressly reserved to the Company's discretion in this letter, this letter agreement cannot be changed except in a written agreement signed by you and a duly authorized
officer of the Company. 

        We
are all delighted to be able to extend you this offer and look forward to working with you. To indicate your acceptance of the Company's offer, please sign and date this letter in the
space provided below and return it to me, along with a signed and dated copy of the Confidentiality Agreement. 

        This
offer is valid until October 23, 2009.

 

 

			
	Very truly yours,

Epocrates, Inc.	 	 
	
 /s/ John Owens

  John S. Owens	
 	
 
	
 Senior Vice President

Human Resources	
 	
 
	
 UNDERSTOOD, ACCEPTED AND AGREED:	
 	
 
	
 Geoff Rutledge	
 	
 
	
 /s/ Geoffrey Rutledge

  Signature	
 	
 
	
 October 22, 2009

  Date	
 	
 
	
 Nov. 1, 2009

  Start Date	
 	
 
	
 Enclosure:    Confidentiality Agreement	
 	
 

 

 

QuickLinks

Exhibit 10.17

[ePOCRATES Letterhead]

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