Document:

Exhibit 10.3

Exhibit 10.3

STOCK UNIT AWARD AGREEMENT

On this, the [●] day of [●], 20[●], Actua Corporation, a Delaware corporation (the “Company”), hereby grants to [●] a Stock Unit Award (the “Award”), of [●] stock units (the “Restricted Units”) under the Actua 2005 Omnibus Equity Compensation Plan, as amended (the “Plan”).  Each Restricted Unit represents your right to receive one share of common stock of the Company (the “Common Stock”) on a future redemption date, subject to the terms and conditions set forth in this Agreement and the Plan.
1.    Restricted Unit Account.  The Company shall establish and maintain a Restricted Unit account (the “Account”) for you and shall record in such Account the number of Restricted Units granted to you.  You shall not have any interest in any fund or specific assets of the Company by reason of this Award or the Account established for you.
2.    Vesting.  Your right to the Restricted Units granted under this Award shall vest according to the following vesting schedule, provided you do not incur a termination of service or employment with the Company (as defined in the Plan) prior to the applicable vesting date: (a) [ONE-THIRD] of the Restricted Units granted under this Award will vest on [ONE-YEAR ANNIVERSARY OF GRANT DATE] and (b) [THEREAFTER, ONE-TWELFTH] of the Restricted Units granted under this Award will vest on each of the following dates: [●],[●],[●],[●],[●],[●],[●] and [●] [QUARTERLY DATES OVER A TWO-YEAR PERIOD].  
3.    Redemption.  Within thirty (30) days following the date of your termination of service or employment with the Company (the “Redemption Date”), the Company shall redeem all of the vested Restricted Units, as provided in Paragraph 2, in accordance with this Paragraph 3, unless delay is required pursuant to Paragraph 17(b) below or a Change of Control (as defined in Paragraph 7) occurs prior to the Redemption Date.  On the Redemption Date, all vested Restricted Units in your Account will be converted to an equivalent number of shares of Common Stock, and you shall receive a single sum distribution of such shares of Common Stock, which shall be issued under the Plan.
4.    Dividend Equivalents.  Until such time as the Restricted Units are redeemed or forfeited, if any cash dividends are declared with respect to the shares of Common Stock, the Company shall pay to you, at the same time that cash dividends are paid to the stockholders of the Company, the amount of the cash dividend that would have been distributed if the Restricted Units credited to your Account at the time of the declaration of the cash dividend were shares of Common Stock of the Company, irrespective of whether such Restricted Units have vested pursuant to Paragraph 2.  Until such time as the Restricted Units are redeemed or forfeited, in the event of a dividend or distribution payable in stock or other property or a reclassification, split up or similar event with respect to the shares of Common Stock, the Company shall, at the time of such event, credit to your Account the amount of stock or other property that would have been distributed if the Restricted Units credited to your Account at the time of such event were shares of Common Stock of the Company, with such stock or other property being subject to the same terms and conditions relating to vesting as the Restricted Units to which they relate.

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5.    Non-Transferability of Award.  No Restricted Units awarded to you under this Agreement may be transferred, assigned, pledged, encumbered or exercised by you and a Restricted Unit may be redeemed during your lifetime only by you.  Any attempt to transfer, assign, pledge, or encumber the Restricted Unit by you shall be null, void and without effect.
6.    No Rights as Stockholder.  You shall not have any rights as a stockholder of the Company, including the right to any dividends (except as provided in Paragraph 4), or the right to vote, with respect to any Restricted Units.
7.    Change of Control.  If a Change of Control occurs prior to the Redemption Date, all of your Restricted Units will be converted to an equivalent number of shares of Common Stock and distributed to you in a single sum upon the occurrence of the Change of Control.  For this purpose, a Change of Control shall have the same meaning as such term is defined in the Plan; provided, however, that a Change of Control shall not be deemed to have occurred if the Change of Control does not constitute a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company, within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and its corresponding regulations.  
8.    Incorporation by Reference; Definitions.  This Award shall be subject to the terms, conditions and limitations of the Plan, which are incorporated herein by reference.  In the event of any contradiction, distinction or difference between this Stock Unit Award Agreement and the terms of the Plan, the terms of the Plan will control.  Except as otherwise defined in this Stock Unit Award Agreement, the terms used in this Stock Unit Award Agreement shall have the meanings set forth in the Plan.  The Award is subject to the interpretations, regulations and determinations concerning the Plan established from time to time by the Committee in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to (i) rights and obligations with respect to the withholding of taxes, (ii) the registration, qualification or listing of the shares, (iii) changes in capitalization of the Company, and (iv) other requirements of applicable law.  The Committee shall have the authority to interpret and construe the Award pursuant to the terms of the Plan, its decisions shall be conclusive as to any questions arising hereunder, and your acceptance of this Award is your agreement to be bound by the interpretations and decisions of the Committee with respect to this Award and the Plan.
9.    Restrictions on Issuance or Transfer of Shares of Common Stock.
(a)    The obligation of the Company to deliver shares of Common Stock upon the redemption of the Restricted Units shall be subject to the condition that if at any time the Committee shall determine in its discretion that the listing, registration or qualification of the shares of Common Stock upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the issuance of shares of Common Stock, the shares of Common Stock may not be issued in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.  The issuance of Restricted Units and of shares of Common Stock to you on the Redemption Date is subject to any applicable taxes and other laws or regulations of the United States or of any state having jurisdiction thereof.

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(b)    You agree to be bound by the Company’s policies regarding the transfer of the shares of Common Stock and understand that there may be certain times during the year in which you will be prohibited from selling, transferring, pledging, donating, assigning, mortgaging, hypothecating or encumbering the shares of Common Stock.
(c)    On the Redemption Date, a certificate representing the shares of Common Stock that are redeemed shall be issued to you or, if allowed, the shares of Common Stock will be delivered electronically to an account designated by you.
10.    Withholding.  To the extent required by applicable law, you are required to pay to the Company, or make other arrangements satisfactory to the Company to provide for the payment of, any federal, state, local or other taxes that the Company is required to withhold with respect to the grant, vesting or redemption of this Award.  Subject to Committee approval, you may elect to satisfy any tax withholding obligation of the Company with respect to this Award by having shares withheld up to an amount that does not exceed the minimum applicable withholding tax rate for federal (including FICA), state, local and other tax liabilities.
11.    No Rights to Continued Service or Employment.  This Award shall not confer upon you any right to be retained by or in the service or employment of the Company or its parent, subsidiaries or affiliates and shall not interfere in any way with the right of the Company or its parent, subsidiaries or affiliates to terminate your service or employment at any time.  The right of the Company or its parent, subsidiaries or affiliates to terminate at will your service or employment at any time for any reason is specifically reserved.
12.    Assignment by the Company.  The rights and protections of the Company hereunder shall extend to any successors or assigns of the Company and to the Company’s parents, subsidiaries, and affiliates.  This Award may be assigned by the Company without your consent.
13.    Acknowledgment.  By executing this Agreement, you hereby acknowledge that with respect to any right to payment pursuant to this Agreement, you are and shall be an unsecured general creditor of the Company without any preference as against other unsecured general creditors of the Company, and you hereby covenant for yourself, and anyone at any time claiming through or under you not to claim any such preference, and hereby disclaim and waive any such preference which may at any time be at issue, to the fullest extent permitted by applicable law.  You also hereby acknowledge receipt of a copy of the Plan and agree to be bound by the terms of the Plan and this Agreement.  You further agree to be bound by the determinations and decisions of the Committee with respect to the Plan and your rights to benefits under the Plan, and agree that all such determinations and decisions of the Committee shall be binding on you, your beneficiaries and any other person having or claiming an interest under the Plan on your behalf.
14.    Effect on Other Benefits.  The value of Restricted Units or any shares of Common Stock distributed to you with respect to the Restricted Units shall not be considered eligible earnings for purposes of any other plans maintained by the Company.  Neither shall such value be considered part of your compensation for purposes of determining or calculating other benefits that are based on compensation, such as life insurance.

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15.    Governing Law.  This Agreement shall be deemed to be made under and shall be construed in accordance with the laws of the State of Delaware, without giving effect to the conflicts of laws provisions thereof.
16.    Notice.  All notices hereunder shall be in writing, and if to the Company or to the Committee, shall be delivered to the Board of Directors of the Company or mailed to its principal office, addressed to the attention of the Board of Directors of the Company; and if to you, shall be delivered personally sent by facsimile transmission or mailed to you at the address appearing in the records of the Company.  Such addresses may be changed at any time by written notice to other party given in accordance with this Paragraph 16.
17.    Section 409A of the Code.  
(a)    This Agreement is intended to comply with the requirements of section 409A of the Code and shall be interpreted and administered in accordance with such requirements.  Notwithstanding any provision in this Agreement to the contrary, redemption and payment may only be made under this Agreement upon an event or in a manner permitted by section 409A of the Code and its corresponding regulations.  Each redemption and payment under this Agreement shall be treated as a separate redemption and payment for purposes of section 409A of the Code.  In no event may you designate the calendar year of redemption or payment. 
(b)    Notwithstanding any provision to the contrary in this Agreement, if a redemption or payment under this Agreement is payable to you upon separation from service (within the meaning of section 409A of the Code) from the Company, then if at the time of your separation from service you are a “specified employee” (as such term is defined in section 409A(2)(B)(i) of the Code and its corresponding regulations) as determined by the Company (or any successor thereto), in its sole discretion, in accordance with its specified employee determination policy, then the redemption and payment to you pursuant to this Agreement shall be postponed for a period of six (6) months following your separation from service from the Company.  The postponed amounts shall be distributed and paid to you in a lump sum within thirty (30) days after the date that is six (6) months following your separation from service from the Company.  If you die during such six (6) month period and prior to the distribution of the postponed amounts hereunder, the amounts delayed on account of section 409A of the Code shall be distributed to the personal representative of your estate within sixty (60) days after the date of your death.
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ACTUA CORPORATION

Date: ____________________    By: _____________________________________                                                 [NAME]
[TITLE]
Attest: 

By: ____________________________
[NAME]
[TITLE]

I hereby accept the Award of Restricted Units described in this Stock Unit Award Agreement.  I have read the terms of the Plan and this Stock Unit Award Agreement, and agree to be bound by the terms of the Plan and this Stock Unit Award Agreement and the interpretations of the Committee with respect thereto.
                        
ACCEPTED:  

                    
By:                         
[GRANTEE]

5kbio_Ex10_1

		
			[KALOBIOS LETTERHEAD]
		

		
			Exhibit 10.1
		

		
			 
		

		
			 
		

		
			May __, 2015
		

		
			 
		

		
			 
		

		
			Ronald A. Martell
		

		
			40 San Andreas Way
		

		
			San Francisco, CA 94127 
		

		
			Dear Ron:
		

		
			KaloBios Pharmaceuticals, Inc. (the “Company”) is pleased to offer you employment on the following terms:
		

			
	
			
				 1.
			Position.  Your title will be Executive Chairman, and you will report to the Company’s Board of Directors.  This is a full-time position, which we will reassess from time to time, and in particular upon the hiring of a full-time Chief Executive Officer.  By signing this letter agreement, you confirm to the Company that you have no contractual commitments or other legal obligations that would prohibit you from performing your duties for the Company. Your primary duties shall include (a) leading the Company’s financing and strategic planning efforts, in coordination with Herb Cross, CFO and interim CEO; (b) leading the Company’s search for a permanent CEO, also in coordination with Herb; (c)  providing strategy and leadership on execution of the Company’s other 2015 corporate objectives, as approved by the Board; and (d) assuming the duties of Chairman, as described in the Company’s Bylaws. You may have other duties as specified by the Board from time to time. You will have no direct reports other than Herb. Your start date will be as soon as possible upon the execution of this letter agreement, as mutually agreed.

			
	
			
				 2.
			Cash Compensation.  Your salary will be at the rate of  $41,667 per month, payable in accordance with the Company’s standard payroll schedule.  This salary will be subject to adjustment pursuant to the Company’s employee compensation policies in effect from time to time.  You are eligible to participate in the Company’s annual bonus plan.  Your maximum bonus (if any) will be equal to 50% of your base salary for the bonus period, prorated for part year service.  The bonus (if any) is determined by the Board, and will be awarded based on the achievement of Company objectives established by the Board.  The determinations of the Board with respect to your bonus will be final and binding.  In the event that there is any conflict between this letter agreement and the Company’s Bonus Plan, the Bonus Plan, as interpreted and administered by the Company, will govern. You also understand and agree that upon the effective date of this letter agreement, you will no longer receive or be eligible for compensation as a director of the Company.

			
	
			
				 3.
			Employee Benefits.  As a regular employee of the Company, you will be eligible to participate in a number of Company-sponsored benefits, including medical and dental benefits, flexible spending account and 401(k) plan.  In addition, you will be entitled to paid vacation in accordance with the Company’s vacation policy as in effect from time to time.

			
	
			
				 4.
			Stock Options.  Subject to the approval of the Board, you will be granted options to purchase 25,000 shares of the Company’s Common Stock, to be granted each month over the shorter of a  one-year period, or until the date you are no longer serving as Executive Chairman.  
		

		 

		

			 

		

 

		

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			The exercise price per share will be determined by the Board or its Compensation Committee on the date of each option grant.  The options will be subject to the terms and conditions applicable to options granted under the Company’s 2012 Equity Incentive Plan  (the “Plan”), as described in the Plan and the applicable Stock Option Agreement. Each monthly option grant will vest on the first year anniversary of that grant date, as described in the applicable Stock Option Agreement, subject to your ongoing status as a service provider to the Company, as defined in the Plan. You will be responsible for ensuring compliance with Section 16 securities ownership reporting requirements, although if desired we will request that our outside counsel assist you in that regard.

			
	
			
				 5.
			Proprietary Information and Inventions Agreement.  Like all Company employees, you will be required, as a condition of your employment with the Company, to sign the Company’s standard Proprietary Information and Inventions Agreement, a copy of which is attached hereto as Exhibit A.

			
	
			
				 6.
			Employment Relationship.  Employment with the Company is for no specific period of time.  Your employment with the Company will be “at will,” meaning that either you or the Company may terminate your employment at any time and for any reason, with or without cause.  Any contrary representations that may have been made to you are superseded by this letter agreement.  This is the full and complete agreement between you and the Company on this term.  Although your job duties, title, compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company (other than you).

			
	
			
				 7.
			Outside Activities.  While you render services to the Company, you agree that you will not engage in any other significant employment, consulting or other business activity without the prior written consent of the Board.  While you render services to the Company, you also will not assist any person or entity in competing with the Company, in preparing to compete with the Company or in hiring any employees or consultants of the Company.

			
	
			
				 8.
			Taxes.  All forms of compensation referred to in this letter agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law.  You agree that the Company does not have a duty to design its compensation policies in a manner that minimizes your tax liabilities, and you will not make any claim against the Company or its Board of Directors related to tax liabilities arising from your compensation.

			
	
			
				 9.
			Interpretation, Amendment and Enforcement.  This letter agreement and Exhibit A constitute the complete agreement between you and the Company regarding your employment, contain all of the terms of your employment with the Company and supersede any prior agreements, representations or understandings (whether written, oral or implied) between you and the Company.  This letter agreement may not be amended or modified, except by an express written agreement signed by both you and a duly authorized officer of the Company.  The terms of this letter agreement and the resolution of any disputes as to the meaning, effect, performance or validity of this letter agreement or arising out of, related to, or in any way connected with, this letter agreement, your employment with the Company or any other relationship between you and the Company (the “Disputes”) will be governed by California law, excluding laws relating to conflicts or choice of law.  You and the Company submit to the exclusive personal jurisdiction of the federal and state courts located in San Mateo County in connection with any Dispute or any claim related to any Dispute.

		 

		

			 

		

 

		

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				 10.
			Arbitration.  Any controversy or claim arising out of this letter agreement and any and all claims relating to your employment with the Company will be settled by final and binding arbitration.  The arbitration will take place in San Mateo County.  The arbitration will be administered by the American Arbitration Association under its National Rules for the Resolution of Employment Disputes.  Any award or finding will be confidential.  You and the Company agree to provide one another with reasonable access to documents and witnesses in connection with the resolution of the dispute.  You and the Company will share the costs of arbitration equally, except that the Company will bear the cost of the arbitrator’s fee and any other type of expense or cost that you would not be required to bear if you were to bring the dispute or claim in court.  Each party will be responsible for its own attorneys’ fees, and the arbitrator may not award attorneys’ fees unless a statute or contract at issue specifically authorizes such an award.  This Section does not apply to claims for workers’ compensation benefits or unemployment insurance benefits.    

		
			* * * * *
		

		
			We hope that you will accept our offer to join the Company.  You may indicate your agreement with these terms and accept this offer by signing and dating both the enclosed duplicate original of this letter agreement and the enclosed Proprietary Information and Inventions Agreement and returning them to Don Joseph, Chief Legal Officer, at the Company.  As required by law, your employment with the Company is contingent upon your providing legal proof of your identity and authorization to work in the United States. 
		

		
			Ron, we are very excited for you to take on this new role with the Company. If you have any questions about the position or this letter agreement, please call me.
		

		
			Very truly yours,
		

			
					
						 

					
					
						 

				
	
					
						KaloBios Pharmaceuticals, Inc.

				
	
					
						By:  

					
					
						 

				
	
					
						Title:  

					
					
						Chairman

				

		
			 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						I have read and accept this employment offer:

				
	
					
						 

				
	
					
						 

				
	
					
						 

				
	
					
						Ronald A. Martell

				
	
					
						Dated:  

					
					
						 

				

		
			 
		

		
			Attachment:  Exhibit A--Proprietary Information and Inventions Agreement

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