Document:

Exhibit 10.27

 

February 13, 2012

 

 

Tillman Pearce, M.D.

6 Mint Plaza

San Francisco, CA 94103

 

 

Re: Revised Employment Terms

Dear Tillman,

This letter confirms that Threshold Pharmaceuticals, Inc.
(the “Company”) is pleased to offer you the position of Chief Medical Officer, beginning on Thursday, February 16,
2012 and on the following terms:

You will report to the company’s Chief Executive Officer
and work at our facility located at 170 Harbor Way, Suite 300, South San Francisco, CA 94080. Of course, the Company may change
your position, duties and work location from time to time as it deems necessary.

Your compensation will be $14,583.34 per pay period, which
is equivalent to $350,000 on an annualized basis, less all required withholdings and voluntary payroll deductions. You will be
paid semi-monthly and will be eligible for standard Company benefits as outlined on the attached Employee Benefits Program summary.
The Company may modify compensation and benefits from time to time as it deems necessary.

You will also be awarded a stock option grant to purchase
250,000 shares of the Company's Common Stock subject to a four year vesting schedule as follows: (a) the first 25% of this grant
shall vest at your first anniversary of your starting date with the Company and (b) thereafter an additional 1/48th of the grant
shall vest on each subsequent monthly anniversary of your starting date. The exercise price of this stock option will be the closing
sales price of the Company’s common stock on the NASDAQ National Market on the date you commence your employment with the
Company. As a Company employee, you will be expected to abide by Company rules and regulations, sign and comply with the attached
Proprietary Information and Inventions Agreement which prohibits unauthorized use or disclosure of Company proprietary information,
sign and comply with the Company Insider Trading Policy and, acknowledge in writing that you have read the Company’s Employee
Handbook.

You will be eligible to receive an annual performance-based
bonus of up to 35% of your base salary. This bonus will be awarded at the sole discretion of the Board of Directors.

You will be immediately eligible to receive change of control
and severance benefits pursuant to the Change of Control that is provided separately. Full severance benefits, upon termination
for good reason, will not become available until your one year anniversary.

With prior approval, the Company agrees for you to engage
in consulting work with outside enterprises in which there are no conflicts of interest as determined by the Company. Please reference
the attached email dated February 13, 2012 for detailed approval of your outside consulting work.

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 will be expected to use only that information which is generally known and used by
persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in
the public domain, or which is otherwise provided or developed by the Company. During our discussions about your proposed job duties,
you assured us that you would be able to perform those duties within the guidelines just described.

    	 

    	 

    

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 may terminate your employment with the Company at any
time and for any reason whatsoever simply by notifying the Company. Likewise, the Company may terminate your employment at any
time and for any reason whatsoever, with or without cause or advance notice. As required by law, this offer is subject to satisfactory
proof of your right to work in the United States. A “Lists of Acceptable Documents” for employment eligibility verification
is attached for your information.

This letter, together with your Proprietary Information and
Inventions Agreement, forms the complete and exclusive statement of your employment agreement with the Company. The employment
terms in this letter supersede any other agreements or promises made to you by anyone, whether oral or written. This letter agreement
cannot be changed except in writing signed by you and a duly authorized officer of the Company.

Please indicate your acceptance of our offer by signing below
and returning the original copy of this letter of employment from Threshold Pharmaceuticals under the terms described above. This
offer will remain until end of day Friday, February 24, 2012. Should you have any questions, please contact me at (650) 474-8205.

We look forward to your favorable reply and to a productive
and enjoyable work relationship.

Sincerely,

 

/s/ Harold E. Selick, Ph.D.

Harold E. Selick, Ph.D.

Chief Executive Officer

 

 

Accepted:

 

	/s/Tillman Pearce, M.D.	 	February 16, 2012
	Tillman Pearce, M.D.	 	Date

  

		Enclosures:	Proprietary Information and Inventions Agreement

Insider Trading Policy

Employee Benefits
Summary

I-9 List of
Acceptable DocumentsAMENDMENT TO EMPLOYMENT AGREEMENT

 

This
Amendment to Employment Agreement (the "Agreement") is executed February 20, 2012 and effective February 16, 2012, by
and between SPINE PAIN MANAGEMENT, INC., a Delaware corporation (the "Company"), and WILLIAM F. DONOVAN, M.D.,
an individual ("Executive").

 

WITNESSETH:

 

WHEREAS,
Executive previously served as the Company’s Chief Executive Officer and President under an Employment Agreement entered
into on or about May 17, 2010 (the “Prior Employment Agreement”);

 

WHEREAS,
Executive and the Company entered into an Employment Agreement on February 16, 2012 (the “Later Agreement”), which
agreement replaced and superseded the Prior Agreement;

 

WHEREAS,
the Company and Executive desire to eliminate Section 4(b) of the Later Agreement and enter into this Agreement to amend in its
entirety the Later Employment Agreement;

 

WHEREAS,
by their execution hereof the Company and the Executive hereby terminate both the Prior Employment Agreement, the Later Agreement
and any and all right, duties and obligations under either agreement;

 

NOW,
THEREFORE, for and in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.Employment.
Company hereby employs Executive and Executive hereby accepts employment with Company upon the terms and conditions hereinafter
set forth.

 

2.Duties.
Subject to the power of the Board of Directors of Company to elect and remove officers, Executive will serve the Company as
its Chief Executive Officer and President and will faithfully and diligently perform the services and functions relating
to such office or otherwise reasonably incident to such office, provided that all such services and functions will be reasonable
and within Executive's area of expertise. Executive will, during the term of this Agreement (or any extension thereof), devote
his time, attention and skills and best efforts to the promotion of the business of Company. The foregoing will not be construed
as preventing Executive from being employed by or making investments in other businesses or enterprises provided that (a) Executive
agrees not to become engaged in any other business activity that interferes with his ability to discharge his duties and responsibilities
to Company and (b) Executive does not violate any other provision of this Agreement.

 

3.Term.
Subject to the terms and conditions hereof, the term of employment of Executive commences on February 16, 2012 (the "Commencement
Date") and will end on March 31, 2014, unless earlier terminated by either party pursuant to the terms hereof. The term of
this Agreement is referred to herein as the "Term."

 

    	Amendment to Employment Agreement - Page 1

    	 

    

 

4.Compensation
and Benefits During the Employment Term.

 

		(a)	Salary. Commencing upon the Commencement Date,
Executive will be paid an annual base salary of $96,000, payable bi-weekly (the "Salary"). At any time and from time
to time the Salary may be increased for the remaining portion of the Term if so determined by the Board of Directors of the Company
after a review of Executive's performance of his duties hereunder.

 

		(b)	Bonus. At the sole discretion of the Board of Directors of the Company, it may from time
to time grant performance bonuses to Executive.

 

		(c)	Expenses. Upon submission of a detailed statement and reasonable documentation, the Company
will reimburse Executive in the same manner as other executive officers for all reasonable and necessary or appropriate out-of-pocket
travel and other expenses incurred by Executive in rendering services required under this Agreement.

 

5.Confidentiality,
Intellectual Property and Non-Competition.

 

		(a)	Confidentiality. In the course of the performance of Executive's duties hereunder, Executive
recognizes and acknowledges that Executive may have access to certain confidential and proprietary information of Company or any
of its affiliates. Without the prior written consent of Company, Executive shall not disclose any such confidential or proprietary
information to any person or firm, corporation, association, or other entity for any reason or purpose whatsoever, and shall not
use such information, directly or indirectly, for Executive's own behalf or on behalf of any other party. Executive agrees and
affirms that all such information is the sole property of Company and that at the termination and/or expiration of this Agreement,
at Company's written request, Executive shall promptly return to Company any and all such information so requested by Company.

 

The
provisions of this Section 5 shall not, however, prohibit Executive from disclosing to others or using in any manner information
that:

 

		(i)	has been published or has become part of the public domain
other than by acts, omissions or fault of Executive;

 

		(ii)	has been furnished or made known to Executive by third
parties (other than those acting directly or indirectly for or on behalf of Executive) as a matter of legal right without restriction
on its use or disclosure;

 

		(iii)	was in the possession of Executive prior to obtaining
such information from Company in connection with the performance of this Agreement; or

 

		(iv)	is required to be disclosed by law.

 

    	Amendment to Employment Agreement - Page 2

    	 

    

 

		(b)	Non-Competition. Executive agrees that he will
not, for himself, on behalf of, or in conjunction with any person, firm, corporation or entity, either as principal, employee,
shareholder, member, director, partner, consultant, owner or part owner of any corporation, partnership or any other type of business
entity, directly or indirectly, own, manage, operate, control, be employed by, participate in, or be connected in any manner with
the ownership, management, operation, or control of any business similar to or competitive with the business presently conducted
by the Company of delivering turnkey solutions to spine surgeons and orthopedic surgeons for necessary and appropriate treatment
for musculo-skeletal spine injuries, anywhere in the United States for a period of one years (the “Non-Compete Period”)
from the termination of this Agreement. However, in the event of the termination of Executive's employment pursuant to Section
7(d) or 7(f), the Non-Compete Period shall be six months.

 

Executive agrees not to hire, solicit
or attempt to solicit for employment by Executive or any company to which he may be involved, either directly or indirectly, any
party who is an employee or independent contractor of the Company or any entity which is affiliated with the Company, or any person
who was an employee or independent contractor of the Company or any entity which is affiliated with the Company during the Non-Compete
Period.

 

Executive acknowledges that he has
carefully read and considered all provisions of this Agreement and agrees that:

 

		(i)	Due to the nature of the Company's business, the foregoing
covenants place no greater restraint upon Executive than is reasonably necessary to protect the business and goodwill of the Company;

 

		(ii)	These covenants protect the legitimate interests of the
Company and do not serve solely to limit the Company's future competition;

 

		(iii)	This Agreement is not an invalid or unreasonable restraint
of trade;

 

		(iv)	A breach of these covenants by Executive would cause irreparable
damage to the Company;

 

		(v)	These covenants are reasonable in scope and are reasonably
necessary to protect the Company's business and goodwill which the Company has established through its own expense and effort;
and

 

		(vi)	The signing of this Agreement is necessary as part of
the consummation of the transactions described in the preamble.

 

6.Indemnification.
The Company shall to the full extent permitted by law or as set forth in the Certificate of Incorporation and the Bylaws of
the Company, indemnify, defend and hold harmless Executive from and against any and all claims, demands, liabilities, damages,
loses and expenses (including reasonable attorney's fees, court costs and disbursements) arising out of the performance by him
of his duties hereunder except in the case of his willful misconduct.

    	Amendment to Employment Agreement - Page 3

    	 

    
  

7.Termination.
This Agreement and the employment relationship created hereby will terminate (i) upon the death or disability of Executive
under section 7(a) or 7(b); (ii) with cause under Section 7(c); (iii) for good reason under Section 7(d); (iv) upon the voluntary
termination of employment by Executive under Section7(e); or without cause under Section 7(f).

 

		(a)	Disability. The Company shall have the right to terminate the employment of the Executive
under this Agreement for disability in the event Executive suffers an injury, illness, or incapacity of such character as to substantially
disable him from performing his duties without reasonable accommodation by the Company hereunder for a period of more than ninety
(90) consecutive days upon the Company giving at least thirty (30) days written notice of termination.

 

		(b)	Death. This Agreement will terminate on the Death
of the Executive.

 

		(c)	With Cause. The Company may terminate this Agreement
at any time because of (i) Executive's material breach of any term of the Agreement, (ii) the determination by the Board of Directors
in the exercise of its reasonable judgment that Executive has committed an act or acts constituting a felony or other crime involving
moral turpitude, dishonesty or theft or fraud; or (iii) Executive's gross negligence in the performance of his duties hereunder,
provided, in each case, however, that the Company shall not terminate this Agreement pursuant to this Section 7(c) unless the
Company shall first have delivered to the Executive, a notice which specifically identifies such breach or misconduct and the
executive shall not have cured the same within fifteen (15) days after receipt of such notice.

 

		(d)	Good Reason. The Executive may terminate his
employment for "Good Reason" if:

 

		(i)	he is assigned, without his express written consent, any
duties materially inconsistent with his positions, duties, responsibilities, or status with the Company as of the date hereof,
or a change in his reporting responsibilities or titles as in effect as of the date hereof; provided, however, that Executive
must provide the Company with written notice of his dispute of such re-assignment of duties or change in his reporting responsibilities
under this Section 7(d)(i) and give the Company opportunity to cure such inconsistency. If such dispute is not resolved within
thirty (30) days, the Company shall submit such dispute to arbitration under Section 14.

 

		(ii)	his compensation is reduced;

 

		(iii)	the Company does not pay any material amount of compensation
due hereunder and then fails either to pay such amount within ten (10) days notice from Executive of such non-payment or to contest
in good faith such non-payment. Further, if such contest is not resolved within thirty (30) days, the Company shall submit such
dispute to arbitration under Section 14.

 

    	Amendment to Employment Agreement - Page 4

    	 

    

 

		(e)	Voluntary Termination. The Executive may terminate
his employment voluntarily.

 

		(f)	Without Cause. The Company may terminate this
Agreement without cause.

 

8.Obligations
of Company Upon Termination.

 

		(a)	In the event of the termination of Executive's employment
pursuant to Section 7 (a), (b), (c) or (e), Executive will be entitled only to the compensation earned by him hereunder as of
the date of such termination.

 

		(b)	In the event of the termination of Executive’s
employment pursuant to Section 7 (d) or (f), Executive will be entitled to receive in one lump sum payment the full remaining
amount under the Term of this Agreement to which he would have been entitled had this Agreement not been terminated.

 

9.Waiver
of Breach. The waiver by any party hereto of a breach of any provision of this Agreement will not operate or be construed
as a waiver of any subsequent breach by any party.

 

10.Costs.
If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party will
be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he or it
may be entitled.

 

11.Notices.
Any notices, consents, demands, requests, approvals and other communications to be given under this Agreement by either party
to the other will be deemed to have been duly given if given in writing and personally delivered or within two days if sent by
mail, registered or certified, postage prepaid with return receipt requested, as follows:

 

	If to Company:	Spine Pain Management, Inc.
	 	5225 Katy Freeway, #600
	 	Houston, Texas 77007
	 	Attention: William F. Donovan, M.D.
	 	 
	If to Executive:William	F. Donovan, M.D.
	 	5225 Katy Freeway, #600
	 	Houston, Texas 77007

 

Notices
delivered personally will be deemed communicated as of actual receipt.

 

12.Entire
Agreement. This Agreement and the agreements contemplated hereby constitute the entire agreement of the parties regarding
the subject matter hereof, and supersede all prior agreements and understanding, both written and oral, among the parties, or
any of them, with respect to the subject matter hereof.

 

    	Amendment to Employment Agreement - Page 5

    	 

    

 

13.Severability.
If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective
during this Agreement, such provision will be fully severable and this Agreement will be construed and enforced as if such illegal,
invalid or unenforceable provision never comprised a part hereof; and the remaining provisions hereof will remain in full force
and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom. Furthermore,
in lieu of such illegal, invalid or unenforceable provision there will be added automatically as part of this Agreement a provision
as similar in its terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.

 

14.Arbitration.
If a dispute should arise regarding this Agreement the parties agree that all claims, disputes, controversies, differences
or other matters in question arising out of this relationship shall be settled finally, completely and conclusively by arbitration
in Houston, Texas in accordance with the Commercial Arbitration Rules of the American Arbitration Association (the "Rules").
The governing law of this Agreement shall be the substantive law of the State of Texas, without giving effect to conflict of laws.
A decision of the arbitrator shall be final, conclusive and binding on the Company and Executive. Any arbitration held in accordance
with this paragraph shall be private and confidential and no person shall be entitled to attend the hearings except the arbitrator,
Executive, Executive's attorneys, a representative of the Company, the Company's attorneys, and advisors to or witnesses for any
party. The matters submitted to arbitration, the hearings and proceedings and the arbitration award shall be kept and maintained
in the strictest confidence by Executive and the Company and shall not be discussed, disclosed or communicated to any persons
except as may be required for the preparation of expert testimony. On request of any party, the record of the proceeding shall
be sealed and may not be disclosed except insofar, and only insofar, as may be necessary to enforce the award of the arbitrator
and any judgment enforcing an award. The prevailing party shall be entitled to recover reasonable and necessary attorneys' fees
and costs from the non-prevailing party and the determination of such fees and costs and the award thereof shall be included in
the claims to be resolved by the arbitrator hereunder.

 

15.Captions.
The captions in this Agreement are for convenience of reference only and will not limit or otherwise affect any of the terms
or provisions hereof.

 

16.Gender
and Number. When the context requires, the gender of all words used herein will include the masculine, feminine and neuter
and the number of all words will include the singular and plural.

 

17.Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

    	Amendment to Employment Agreement - Page 6

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have duly executed this Agreement effective as of the day and year first above written.

 

 

	 	COMPANY:
	 	 
	 	SPINE PAIN MANAGEMENT, INC.
	 	 	 
	 	 	 
	 	By: 	/s/ John Bergeron
	 	 	John Bergeron, Chief Financial Officer
	 	 	 
	 	 	 
	 	EMPLOYEE:
	 	 	 
	 	 	 
	 	 	/s/ William F. Donovan
	 	 	William F. Donovan, M.D., Individually

 

    	Amendment to Employment Agreement - Page 7

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