Document:

EX-10.11

 Exhibit 10.11 
 August 25, 2003 
 Dr. Larry Smith 

Dear Dr. Smith: 
 On behalf of
Dr. David Kaslow, CSO, I am pleased to confirm our offer and your acceptance of the Executive Director Vaccinology position at Vical. The information below confirms the salient points of the offer. 

 

			
	 Title:
	  	Executive Director Vaccinology
	 Reporting To:
	  	David Kaslow, M.D.
	 Salary Rate:
	  	$157,500 annually
	 Hiring Bonus:
	  	$16,000.00 to be paid within 30 days of employment
	 Start Date:
	  	TBD

 Additionally, subject to approval by the Stock Plan Committee of the Board, you will receive stock options
exercisable for 18,000 shares of Vical common stock. These options will have an exercise price equal to the fair market value of the stock on the date granted, and will be subject to other specific terms and conditions set forth in both the Stock
Incentive Plan of Vical Incorporated and the Stock Option Agreement between you and the company. These will be provided to you following approval of your stock option grant. 
 In addition to your base salary, hiring bonus and stock options, you will be eligible for an annual bonus, in the range of 10% to 25%, based upon meeting performance expectations, to be initially reviewed
in March of 2004. 
 I have enclosed an updated “Benefits Summary” which describes the benefits Vical currently offers to its
employees. The effective date of group medical/dental coverage is the first of the month following your date of hire. Also attached is information pertaining to your relocation, including a description of relocation costs that are subject to
reimbursement by Vical. 
 This offer is also contingent upon a background check and drug screen. A positive test will result in resention of
the offer. Please contact HR at 858-646-1142 to set up the process. Alternatively, you can contact Labcorp at 800.833.3984 to locate the office nearest your home. Please fill out the attached Investigative Consumer Report and return it to Vical HR.
The HR fax number is 858.646.1154. 
 Should you voluntarily terminate your employment with Vical, or should Vical terminate your employment for
Cause (as defined below), in either case within twenty-four months after your date of hire, you will be obligated to repay to Vical both (1) the relocation costs reimbursed by Vical and (2) your hiring bonus as described above, in each
case pro-rated over such twenty-four month period. For example, if you voluntarily terminate your employment, or if Vical terminates your employment for Cause, on the 12 month anniversary of your date of hire, you will be obligated to repay 50% of
the relocation costs reimbursed by Vical and 50% of your hiring bonus. Notwithstanding the foregoing, Vical may elect not to 

 
enforce your repayment obligation if its Board of Directors determines, in its sole and exclusive judgment and discretion, that the repayment obligation violates the Sarbanes-Oxley Act of 2002 or
other applicable law or regulation. Your signature and return of this document verifies your acceptance of these conditions. 

“Cause” means the occurrence of any of the following: (1) your conviction of any felony or any crime involving fraud or dishonesty which
has a material adverse effect on Vical, (2) your participation (whether by affirmative act or omission) in a fraud, act of dishonesty or other act of misconduct against Vical or any employee or agent of Vical, (3) your breach of any
material term of any contract between you and Vical which has a material adverse effect on Vical, (4) your repeated violation of any material policy of Vical which has a material adverse effect on Vical and (5) conduct by you which, based
upon a good faith and reasonable factual investigation, demonstrates your gross unfitness to serve. Notwithstanding the foregoing, your death or disability shall not constitute Cause as set forth herein. The determination that a termination is for
Cause shall be made by Vical’s Board of Directors in its sole and exclusive judgment and discretion. 
 This offer is contingent upon
(1) the execution of the Company’s standard form of Employee Proprietary Information and Inventions Agreement (see attachment) and (2) satisfying the requirements of the Immigration Control and Reform Act. The latter issue can be
accomplished by presenting a document or documents that establish identity and eligibility for employment within three days of commencing employment. A copy of the INS (Employment Eligibility Verification) form is attached. If you have any questions
with regard to documents appropriate for these purposes, please contact me. 
 Your employment with Vical is “at-will”. In other
words, either you or Vical can terminate your employment at any time for any reason, with or without cause and with or without notice. This term of employment is not subject to change or modification of any kind except if in writing and signed by
you and the President & CEO of Vical. 
 Please note that this offer supersedes any prior agreements, representations or promises of
any kind, whether written, oral, express or implied, between the parties hereto with respect to the subject matters herein. It constitutes the full, complete and exclusive agreement between you and Vical with respect to the subject matters herein.

 Larry, we are pleased that you will join us in this rewarding endeavor. I know that David Kaslow and the entire Clinical Research
organization look forward to working with you. If you have questions, please feel free to contact me at 585.464.1104. 
 Sincerely, 

Vicki Hewlett 
 Human Resource Director

 Upon acceptance of this offer, please sign one copy of this letter and one copy of the Employee Proprietary
Information and Inventions Agreement and return them to me at Vical. 
 This offer of employment is accepted and agreed to: 

 

							
	 /S/    DR. LARRY
SMITH
 Dr. Larry Smith
	  		  	 8/28/03
 Date
	  	

  

			
	Attachments:	  	Vical Relocation Package Guidelines
		  	Vical Benefits Summary
		  	Employee’s Proprietary Information and Inventions Agreement
		  	Employment Eligibility VerificationEX-10.12

 Exhibit 10.12 
 December 19, 2008 
 Larry Smith 
 Vical Incorporated 
 Re: Amended and Restated Severance Agreement 

Dear Larry: 
 This letter amends and restates
in its entirety your Amended and Restated Severance Agreement with Vical Incorporated (the “Company”) dated February 20, 2007 regarding severance payments. By signing this letter, you will be agreeing to the following
terms: 
 Salary Continuation. Subject to mitigation, Vical will continue to pay your base compensation, at the rate then in
effect, for up to six months following the termination of your employment if, prior to prior to the expiration of your rights to salary continuation as provided below: 
  

	 	1.	Vical terminates your employment without your consent for any reason other than for Cause or Disability; or 

 

	 	2.	You voluntarily resign your employment for Good Reason. 

 The salary continuation payments will cease in the event of your death. In order to receive your salary continuation, you will be required to sign a release in a form acceptable to Vical, of any and all
claims that you may have against Vical. The salary continuation rights described herein shall expire on the 1 year anniversary of the date of this letter; provided, however, that such rights shall automatically renew for successive 1 year
periods unless the Company provides written notice to you at least 30 days prior to the next scheduled expiration date that such rights will not be renewed. 
 Section 409A. It is intended that each installment of the Severance Benefits or Change in Control Severance Benefits is a separate “payment” for purposes
Section 1.409A-2(b)(2)(i) of the Treasury Regulations. For the avoidance of doubt, it is intended that payments of the Severance Benefits or Change in Control Severance Benefits satisfy, to the greatest extent possible, the exemptions from the
application of Section 409A provided under Sections 1.409A1(b)(4), 1.409A-l(b)(5) and 1.409A-l(b)(9) of the Treasury Regulations. However, if the Company determines that the Severance Benefits or Change in Control Severance Benefits constitute
“deferred compensation” under Section 409A and you are, on your separation from service, a “specified employee” of the Company (as such term is defined in Section 409A(a)(2)(B)(i) of the Code) then, solely to the extent
necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the payment of the Severance Benefits or Change in Control Severance Benefits shall be delayed so that on the earlier to occur of:
(i) the 

 
date that is six months and one day after your separation from service and (ii) the date of your death (such applicable date, the “Specified Employee Initial Payment Date”), the
Company shall (A) pay to you a lump sum amount equal to the sum of the Severance Benefits or Change in Control Severance Benefits that you would otherwise have received through the Specified Employee Initial Payment Date if the commencement of
the payment of the Severance Benefits or Change in Control Severance Benefits had not been so delayed pursuant to this paragraph and (B) commence paying the balance of the Severance Benefits or Change in Control Severance Benefits in accordance
with the applicable payment schedules set forth in this Agreement. 
 Definitions. 

 

	1.	Cause shall mean a failure to perform your duties, other than a failure resulting from complete or partial incapacity due to physical or mental illness or
impairment, gross misconduct or fraud or conviction of, or a plea of “guilty” or “no contest” to a felony. 

  

	2.	Change in Control shall mean (A) a change in the composition of the Board of Directors, as a result of which fewer than 50% of the incumbent directors are
directors who either: (1) had been directors of the Company 24 months prior to such change; or (2) were elected, or nominated for election, to the Board of Directors with the Company 24 months prior to such change and who were still in office
at the time of the election or nomination; or (B) any person by the acquisition or aggregation of securities of the Company is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 50% or more of the
combined voting power of the Company’s securities eligible to vote for the election of directors; except that any change in the relative beneficial ownership of the Company’s securities by any person resulting solely from a reduction in
the aggregate number of outstanding shares of the Company’s stock, and any decrease thereafter in such person’s ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such
person’s beneficial ownership of any securities of the Company. 

  

	3.	Disability shall mean that you, at the time your employment is terminated, have performed substantially none of your duties under this Agreement for a period of
not less than three consecutive months as the result of your incapacity due to physical or mental illness. 

  

	4.	Good Reason shall mean that you have incurred a material reduction in your authority or responsibility or a reduction in base salary of more than 25%.
Notwithstanding the foregoing, a resignation for Good Reason shall only occur if: (1) you notify the Company in writing, within 60 days after the occurrence of one of the foregoing events, specifying the event(s) constituting “good
reason” and that you intend to terminate your employment no earlier than 30 days after providing such notice; (2) the Company does not cure such condition within 30 days following its receipt of such notice or states unequivocally in
writing that it does not intend to attempt to cure such condition; and (3) you resign from employment within 30 days following the end of the period within which the Company was entitled to remedy the condition constituting “good
reason” but failed to do so. 

	5.	Stock Awards shall mean all stock options, restricted stock, and other equity awards granted pursuant to the Company’s stock option and equity incentive
award plans or agreements and any shares of Company stock issued upon exercise thereof. However, Stock Awards does not include stock awards issued under or held in any plan sponsored by the Company that is intended to be qualified under
Section 401(a) of the Internal Revenue Code (e.g., the Company’s 401(k) plan). 

 This letter may be executed in two or
more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. This letter shall be governed by and construed in accordance with the laws of the State of California, without
regard to conflicts of law principles. 
 Please sign this letter and return it to the Company at your earliest convenience. 

Sincerely, 
  

			
	 VICAL INCORPORATED

		
	By:	 	
        /S/    VIJAY B.
SAMANT

		 	        Vijay B. Samant
		 	        President and Chief Executive Officer

 ACCEPTED AND AGREED: 

 

	
	 /S/    LARRY SMITH

Larry Smith

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