Document:

arav-ex1048_926.htm

Exhibit 10.48

 

River Oaks Tower 

3730 Kirby Drive, Suite 1200 

Houston, Texas 77098 

September 8, 2020 

Dear Reshma Rangwala: 

Aravive, Inc. (the “Company”) is pleased to continue your employment as Chief Medical Officer of the Company and its subsidiaries on the following terms: 

1.Position.

(a)You will be employed as Chief Medical Officer (“CMO”) of the Company and you will report to the Company’s Chief Executive Officer (the “CEO”). This is a full-time position.  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.

(b)You agree to the best of your ability and experience that you will at all times loyally and conscientiously perform all of the duties and obligations required of and from you pursuant to the express and implicit terms hereof, and to the reasonable satisfaction of the Company.  During 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, 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 public or private corporations that are not competitive in any manner with the business of the Company, 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 effective September 28, 2020 (the “Start Date”). 

3.Background Check/Proof of Right to Work.  This offer is contingent upon a successful background and reference check.  In addition, for purposes of federal immigration law, you will be required to provide to the Company satisfactory documentary proof of your identity and eligibility for employment in the United States, and this offer is contingent upon such satisfactory proof.  Such documentation must be provided to the Company within three business days of your date of hire. 

4.Cash Compensation.  The Company will pay you a starting salary at the rate of $415,000 per year, less required deductions and withholdings, 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. As an exempt salaried employee, you will be expected to work hours as required by the nature of your work assignments, including hours beyond the Company’s normal business hours, and you will not be eligible for, nor entitled to receive, overtime compensation.

In addition, you will be eligible to be considered for a discretionary incentive bonus for each fiscal year of the Company. Whether you are awarded any bonus for a given fiscal year, and the amount of the bonus (if any), will be determined by the Company in its sole discretion based upon achievement of Company and personal objectives established and approved by the Company’s Board of Directors.  Your target bonus, which will be determined by the Company in its sole discretion, will be equal to up to forty percent (40%) of your annual base salary.  Any bonus for a fiscal year will be paid within 21⁄2 months after the close of that fiscal year, and you must remain actively employed by the Company at the time 

 

 

of payment in order to earn a bonus for that fiscal year.  The determinations of the Company’s Board of Directors with respect to your bonus will be final and binding.  In addition, you will be paid a $50,000 retention bonus on the 18 month anniversary of the Start Date provided that you are still employed as the Company’s CMO on such date. 

The Company may change your compensation and benefits from time to time at its discretion. 

5.Employee Benefits.  As a regular employee of the Company, you will be eligible to participate in a number of Company-sponsored benefits, including its medical, dental and 401(k) plans, under the terms and conditions of the benefit plans that may be in effect from time to time.  In addition, you will be entitled to accrue and use paid vacation benefits, in accordance with the Company’s vacation policy, as in effect from time to time. 

6.Equity Awards.   

In connection with the commencement of your employment and subject to the approval of the Company’s Board of Directors or its Compensation Committee, you will be granted an option to purchase 75,000 shares of the Company’s Common Stock (the “Option”) , all pursuant to the Company’s 2019 Equity Incentive Plan (the “Plan”) and the Company’s standard form of Stock Option Agreement.  If granted, the vesting schedule for the Option shall be as follows: 25% of the shares subject to the option will vest after twelve (12) months of your continuous service, and the remaining 75% of the shares subject to the Option will vest in equal monthly installments over the next 36 months of your continuous service, until either your Option is fully vested or your employment as CMO ends, whichever occurs first, as described in the applicable Stock Option Agreement. The exercise price per share of the Option will be determined by the Board of Directors or the Compensation Committee when the Option is granted.  The Option will be subject to the terms and conditions applicable to options granted under the Plan and the applicable Stock Option Agreement. 

7.Severance Benefits.   

(a)Termination For Any Reason Other Than Cause Or Permanent Disability Not In Connection With A Change of Control.  If the Company terminates your employment for any reason other than Cause or Permanent Disability (both as defined herein) and a Separation occurs after the one year anniversary of the Start Date, and the Separation is not in connection with a Change of Control, then you will be entitled to the benefits described in Sections 7 (i)-(iv) below; any severance payments contemplated by Section 7(a)(i) and 7(a)(ii) below are conditioned upon you also (i) returning all Company property and confidential information in your possession on or within seven (7) days of the Separation; and (ii) on or within sixty (60) days after the Separation (“Release Deadline”) executing a general release (the “Release”) of all known and unknown claims that you may have against the Company or persons affiliated with the Company in the form prescribed by the Company, without alterations , and you allow such release to become fully effective. If the Release does not become effective by the Release Deadline, you will forfeit any rights to severance or benefits under this Section 7 or elsewhere in this Agreement. 

(i)Salary Continuation.  The Company will continue to pay your base salary for a period of nine months after your Separation, less required deductions and withholdings (the “salary continuation”). The Salary Continuation will be paid at the base salary rate in effect at the time of your Separation and in accordance with the Company’s standard payroll procedures. The Salary Continuation payments will commence within thirty (30) days after the Release Deadline and, once they commence, will be retroactive to the date of your Separation. The Salary Continuation payments will end when you commence new employment or substantial self-employment and you agree to inform the Company immediately in such event. 

(ii)COBRA.  If you elect to continue your health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) following your Separation, then the Company will reimburse you the company contribution portion of your monthly premium under COBRA as it pays for active employees until the earliest of: (i) the close of the nine-month period following your Separation; (ii) the expiration of your continuation coverage under COBRA; or (iii) the date when you commence new employment or substantial self-employment and you agree to inform the Company immediately in such event; provided you timely elect and pay for COBRA coverage.  COBRA reimbursements shall be made by the Company consistent with the Company’s normal expense reimbursement policy, provided that you submit documentation to the Company substantiating your payments for COBRA coverage.  The first COBRA reimbursement payment will be made within thirty (30) days after the Release Deadline. 

 

 

(b)Termination in Connection with a Change in Control.  You will be eligible for severance benefits for a termination in connection with a Change in Control, under the Aravive, Inc. Change in Control Severance Plan (the “Change in Control Severance Plan”), which provides specified severance benefits to certain eligible officers and employees of the Company.  All rights and obligations with respect to your Severance Benefits in connection with a Change in Control will be as set forth in the Change in Control Severance Plan.  If you are provided with any benefits pursuant to the Change in Control Severance Plan, you will not receive any severance benefits as specified in Section 7(a) herein.

8.Confidential Information and Inventions Assignment/Company Policies.  You will be required, as a condition of your employment with the Company, to sign the Company’s standard Employee Confidential Information and Inventions Assignment Agreement, a copy of which is attached hereto as Exhibit A.  In addition, you will be expected to abide by Company rules and policies, and acknowledge in writing that you have read the Company’s Employee Handbook.   

9.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 or advance notice.  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). 

10.Tax Matters. 

(a)Withholding. 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. 

(b)Section 409A.  For purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), each salary continuation payment under Section 7(a)(i) is hereby designated as a separate payment. If the Company determines that you are a “specified employee” under Section 409A(a)(2)(B)(i) of the Code at the time of your Separation, then the salary continuation payments under Section 5(b), to the extent that they are subject to Section 409A of the Code, will commence during the seventh month after your Separation and the installments that otherwise would have been paid during the first six months after your Separation will be paid in a lump sum when the salary continuation payments commence. 

(c)Tax Advice.  You are encouraged to obtain your own tax advice regarding your compensation from the Company. 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 the Board related to tax liabilities arising from your compensation. 

11.No Conflicting Obligations.  You understand and agree that by accepting this offer of employment, you represent to the Company that your performance will not breach any other agreement to which you are a party and that you have not, and will not during the term of your employment with the Company, enter into any oral or written agreement in conflict with any of the provisions of this letter or the Company’s policies.  You are not to bring with you to the Company, or use or disclose to any person associated with the Company, any confidential or proprietary information belonging to any former employer or other person or entity with respect to which you owe an obligation of confidentiality under any agreement or otherwise.  The Company does not want or need and will not use such information, will assist you to preserve and protect the confidentiality of proprietary information belonging to third parties, and expects you to use in performing your duties for the Company only 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.  Also, we expect you to abide by any obligations to refrain from soliciting any person employed by or otherwise associated with any former employer and suggest that you refrain from having any contact with such persons until such time as any non-solicitation obligation expires.  

 

 

12.Definitions.  The following terms have the meaning set forth below wherever they are used in this letter agreement: 

(a)“Cause” means any one or more of the following events: (i) your conviction (including a guilty plea or a no contest plea) of a felony, or of any other crime involving fraud, dishonesty or moral turpitude; (ii) your conviction of or participation in a fraud or act of material dishonesty against the Company; (iii) your intentional material breach of any contract or agreement between you and the Company (including but not limited to your Proprietary Information and Invention Agreement or any other restrictive covenant agreements) or material breach or material neglect of any statutory or fiduciary duty you owe to the Company as reasonably determined by the Board, in each case, after having provided you with not less than thirty (30) days written notice of same and with the opportunity to cure of the same duration to the extent curable; (iv) your unauthorized use or disclosure of the Company’s confidential information or trade secrets; or (v) your conduct that constitutes gross misconduct, conduct that constitutes gross insubordination, incompetence or habitual neglect of your duties that results in (or might have reasonably resulted in) material harm to the business of the Company, each as reasonably determined by the Board, in each case, after having provided you with not less than thirty (30) days written notice of same and with the opportunity to cure of the same duration to the extent curable. 

(b)“Change in Control” means a “Change in Control” as defined in the Company’s 2019 Equity Incentive Plan, as may be amended from time to time.   

(c)“Permanent Disability” means that you are unable to perform the essential functions of your position, with or without reasonable accommodation, for a period of at least one hundred twenty (120) consecutive days because of a physical or mental impairment. 

(d)“Separation” means a “separation from service,” as defined in the regulations under Section 409A of the Code. 

13.Dispute Resolution.  To ensure rapid and economical resolution of any disputes which may arise under this Agreement, you and the Company agree that any and all claims, disputes or controversies of any nature whatsoever arising from or regarding the interpretation, performance, negotiation, execution, enforcement or breach of this Agreement, your employment with the Company, or the termination of your employment from the Company, including but not limited to statutory claims, shall be resolved pursuant to the Federal Arbitration Act, 9 U.S.C. Section 1.16, to the fullest extent permitted by law by confidential, final and binding arbitration conducted before a single arbitrator with JAMS, Inc. (“JAMS”) in Houston, Texas, in accordance with JAMS’ then-applicable arbitration rules, which can be found at http://www.jamsadr.com/rules-clauses/, and which will be provided to you upon request.  The parties acknowledge that by agreeing to this arbitration procedure, they waive the right to resolve any such dispute through a trial by jury, judge or administrative proceeding.  You will have the right to be represented by legal counsel at any arbitration proceeding.  The arbitrator shall:  (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be available under applicable law in a court proceeding; and (b) issue a written statement signed by the arbitrator regarding the disposition of each claim and the relief, if any, awarded as to each claim, the reasons for the award, and the arbitrator’s essential findings and conclusions on which the award is based.  The arbitrator shall be authorized to award all relief that you or the Company would be entitled to seek in a court of law. The Company shall pay all JAMS arbitration fees in excess of the administrative fees that you would be required to pay if the dispute were decided in a court of law.  Nothing in this Agreement shall prevent either you or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration.  The Company shall pay all filing fees in excess of those which would be required if the dispute were decided in a court of law, and shall pay the arbitrator’s fees and any other fees or costs unique to arbitration.  Any awards or orders in such arbitrations may be entered and enforced as judgments in the federal and state courts of any competent jurisdiction. 

14.Interpretation, Amendment and Enforcement.  This letter agreement, together with the Employee Confidential Information and Inventions Assignment Agreement, any Change in Control Severance Plan documentation previously executed by you, and any Option Agreements that you entered into with the Company or any subsidiary thereof constitutes the complete agreement between you and the Company, contains all of the terms of your employment with the Company and supersedes any prior agreements, representations or understandings (whether written, oral or implied) between you and the Company.  It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other agreements, promises, warranties or representations concerning its subject matter. Changes in your employment terms, other than those changes expressly reserved to the Company’s discretion 

 

 

in this letter, require an express written modification signed by both you and a duly authorized officer of the Company.  If any provision of this offer letter agreement is determined to be invalid or unenforceable, in whole or in part, this determination shall not affect any other provision of this offer letter agreement and the provision in question shall be modified so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible under applicable law.  This letter may be delivered and executed via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act or other applicable law) or other transmission method and shall be deemed to have been duly and validly delivered and executed and be valid and effective for all purposes.  * * * * * 

 

 

 

You may indicate your agreement with these terms by signing and dating both the enclosed duplicate original of this letter agreement and the enclosed Confidential Information and Inventions Agreement and returning them to me.  

 

If you have any questions, please do not hesitate to contact me. 

 

	
 
	
 
	
Very truly yours,

	
 
	
 
	
 
	
 

	
 
	
 
	
ARAVIVE, INC.

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Gail McIntyre

	
 
	
 
	
 
	
Gail McIntyre, PhD, DABT  Chief Executive Officer

 

 

 

 

	
I have read and accept the terms of this employment letter:
	
 

	
 
	
 
	
 

	
/s/ Reshma Rangwala
	
 
	
 Signature

	
Printed Name:
	
Reshma Rangwala
	
 
	
 

	
Dated:
	
September 10, 2020
	
 
	
 

 

 

 

EXHIBIT A 

Employee Confidential Information And Inventions Assignment Agreement 

 

 

 

 

 

EMPLOYEE CONFIDENTIAL INFORMATION AND INVENTIONS ASSIGNMENT AGREEMENT 

In consideration of my employment or continued employment by Aravive, Inc. (“Company”), and the compensation paid to me now and during my employment with the Company, I agree to the terms of this Agreement as follows: 

	
1.
	
CONFIDENTIAL INFORMATION PROTECTIONS. 

1.1Nondisclosure; Recognition of Company’s Rights.  At all times during and after my employment, I will hold in confidence and will not disclose, use, lecture upon, or publish any of Company’s Confidential Information (defined below), except as may be required in connection with my work for Company, or as expressly authorized by the Chief Executive Officer (the “CEO”) of Company.  I will obtain the CEO’s written approval before publishing or submitting for publication any material (written, oral, or otherwise) that relates to my work at Company and/or incorporates any Confidential Information.  I hereby assign to Company any rights I may have or acquire in any and all Confidential Information and recognize that all Confidential Information shall be the sole and exclusive property of Company and its assigns. 

1.2Confidential Information.  The term “Confidential Information” shall mean any and all confidential knowledge, data or information related to Company’s business or its actual or demonstrably anticipated research or development, including without limitation (a) trade secrets, inventions, ideas, processes, computer source and object code, data, formulae, programs, other works of authorship, know-how, improvements, discoveries, developments, designs, and techniques; (b) information regarding products, services, plans for research and development, marketing and business plans, budgets, financial statements, contracts, prices, suppliers, and customers; (c) information regarding the skills and compensation of Company’s employees, contractors, and any other service providers of Company; and (d) the existence of any business discussions, negotiations, or agreements between Company and any third party. 

1.3Third Party Information.  I understand that Company has received and in the future will receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty on Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes.  During and after the term of my employment, I will hold Third Party Information in strict confidence and will not disclose to anyone (other than Company personnel who need to know such information in connection with their work for Company) or use, Third Party Information, except in connection with my work for Company or unless expressly authorized by an officer of Company in writing. 

1.4No Improper Use of Information of Prior Employers and Others.  I represent that my employment by Company does not and will not breach any agreement with any former employer, including any non-compete or non-solicitation agreement or any agreement to keep in confidence or refrain from using information acquired by me prior to my employment by Company.  I further represent that I have not entered into, and will not enter into, any agreement, either written or oral, in conflict with my obligations under this Agreement.  During my employment by Company, I will not improperly make use of, or disclose, any information or trade secrets of any former employer or other third party, nor will I bring onto the premises of Company or use any unpublished documents or any property belonging to any former employer or other third party, in violation of any lawful agreements with that former employer or third party.  I will use in the performance of my duties only information that is generally known and used by persons with training and experience comparable to my own, is common knowledge in the industry or otherwise legally in the public domain, or is otherwise provided or developed by Company.   

	
2.
	
INVENTIONS. 

2.1Definitions.  As used in this Agreement, the term “Invention” means any ideas, concepts, information, materials, processes, data, programs, know-how, improvements, discoveries, developments, designs, artwork, formulae, other copyrightable works, and techniques and all Intellectual Property Rights in any of the items listed above.  The term “Intellectual Property Rights” means all trade secrets, copyrights, trademarks, mask work rights, patents and other intellectual property rights recognized by the laws of any jurisdiction or country.  The term 

 

 

“Moral Rights” means all paternity, integrity, disclosure, withdrawal, special and any other similar rights recognized by the laws of any jurisdiction or country. 

2.2Prior Inventions.  I have disclosed on Exhibit A a complete list of all Inventions that (a) I have, or I have caused to be, alone or jointly with others, conceived, developed, or reduced to practice prior to the commencement of my employment by Company; (b) in which I have an ownership interest or which I have a license to use; (c) and that I wish to have excluded from the scope of this Agreement (collectively referred to as “ Prior Inventions ”).  If no Prior Inventions are listed in Exhibit A, I warrant that there are no Prior Inventions.  I agree that I will not incorporate, or permit to be incorporated, Prior Inventions in any Company Inventions (defined below) without Company’s prior written consent. If, in the course of my employment with Company, I incorporate a Prior Invention into a Company process, machine or other work, I hereby grant Company a non-exclusive, perpetual, fully-paid and royalty-free, irrevocable and worldwide license, with rights to sublicense through multiple levels of sublicensees, to reproduce, make derivative works of, distribute, publicly perform, and publicly display in any form or medium, whether now known or later developed, make, have made, use, sell, import, offer for sale, and exercise any and all present or future rights in, such Prior Invention.     

2.3Assignment of Company Inventions.  Inventions assigned to the Company or to a third party as directed by the Company pursuant to the subsection titled Government or Third Party are referred to in this Agreement as “Company Inventions.”  Subject to the subsection titled Government or Third Party and except for Inventions that I can prove qualify fully under the provisions of California Labor Code section 2870 and I have set forth in Exhibit A, I hereby assign and agree to assign in the future (when any such Inventions or Intellectual Property Rights are first reduced to practice or first fixed in a tangible medium, as applicable) to Company all my right, title, and interest in and to any and all Inventions (and all Intellectual Property Rights with respect thereto) made, conceived, reduced to practice, or learned by me, either alone or with others, during the period of my employment by Company.  Any assignment of Inventions (and all Intellectual Property Rights with respect thereto) hereunder includes an assignment of all Moral Rights.  To the extent such Moral Rights cannot be assigned to Company and to the extent the following is allowed by the laws in any country where Moral Rights exist, I hereby unconditionally and irrevocably waive the enforcement of such Moral Rights, and all claims and causes of action of any kind against Company or related to Company’s customers, with respect to such rights.  I further acknowledge and agree that neither my successors-in-interest nor legal heirs retain any Moral Rights in any Inventions (and any Intellectual Property Rights with respect thereto). 

2.4Obligation to Keep Company Informed.  During the period of my employment and for one (1) year after my employment ends, I will promptly and fully disclose to Company in writing (a) all Inventions authored, conceived, or reduced to practice by me, either alone or with others, including any that might be covered under California Labor Code section 2870, and (b) all patent applications filed by me or in which I am named as an inventor or co-inventor.       

2.5Government or Third Party.  I agree that, as directed by the Company, I will assign to a third party, including without limitation the United States, all my right, title, and interest in and to any particular Company Invention.   

2.6Enforcement of Intellectual Property Rights and Assistance.  During and after the period of my employment and at Company’s request and expense, I will assist Company in every proper way, including consenting to and joining in any action, to obtain and enforce United States and foreign Intellectual Property Rights and Moral Rights relating to Company Inventions in all countries.  If the Company is unable to secure my signature on any document needed in connection with such purposes, I hereby irrevocably designate and appoint Company and its duly authorized officers and agents as my agent and attorney in fact, which appointment is coupled with an interest, to act on my behalf to execute and file any such documents and to do all other lawfully permitted acts to further such purposes with the same legal force and effect as if executed by me. 

2.7Incorporation of Software Code.  I agree that I will not incorporate into any Company software or otherwise deliver to Company any software code licensed under the GNU General Public License or Lesser General Public License or any other license that, by its terms, requires or conditions the use or distribution of such code on the disclosure, licensing, or distribution of any source code owned or licensed by Company. 

 

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3.
	
RECORDS.  I agree to keep and maintain adequate and current records (in the form of notes, sketches, drawings and in any other form that is required by the Company) of all Inventions made by me during the period of my employment by the Company, which records shall be available to, and remain the sole property of, the Company at all times. 

	
4.
	
ADDITIONAL ACTIVITIES.  I agree that during the term of my employment by Company, I will not (a) without Company’s express written consent, engage in any employment or business activity that is competitive with, or would otherwise conflict with my employment by, Company; and (b) for the period of my employment by Company and for one (1) year thereafter, I will not either directly or indirectly, solicit or attempt to solicit any employee, independent contractor, or consultant of Company to terminate his, her or its relationship with Company in order to become an employee, consultant, or independent contractor to or for any other person or entity. 

	
5.
	
RETURN OF COMPANY PROPERTY.  Upon termination of my employment or upon Company’s request at any other time, I will deliver to Company all of Company’s property, equipment, and documents, together with all copies thereof, and any other material containing or disclosing any Inventions, Third Party Information or Confidential Information and certify in writing that I have fully complied with the foregoing obligation.  I agree that I will not copy, delete, or alter any information contained upon my Company computer or Company equipment before I return it to Company.  In addition, if I have used any personal computer, server, or e-mail system to receive, store, review, prepare or transmit any Company information, including but not limited to, Confidential Information, I agree to provide the Company with a computer-useable copy of all such Confidential Information and then permanently delete and expunge such Confidential Information from those systems; and I agree to provide the Company access to my system as reasonably requested to verify that the necessary copying and/or deletion is completed.  I further agree that any property situated on Company’s premises and owned by Company is subject to inspection by Company’s personnel at any time with or without notice.  Prior to the termination of my employment or promptly after termination of my employment, I will cooperate with Company in attending an exit interview and certify in writing that I have complied with the requirements of this section.   

	
6.
	
NOTIFICATION OF NEW EMPLOYER .  If I leave the employ of Company, I consent to the notification of my new employer of my rights and obligations under this Agreement, by Company providing a copy of this Agreement or otherwise. 

	
7.
	
GENERAL PROVISIONS.

7.1Governing Law and Venue.  This Agreement and any action related thereto will be governed and interpreted by and under the laws of the State of Delaware, without giving effect to any conflicts of laws principles that require the application of the law of a different state.  I expressly consent to personal jurisdiction and venue in the state and federal courts for the county in which Company’s principal place of business is located for any lawsuit filed there against me by Company arising from or related to this Agreement. 

7.2Severability.  If any provision of this Agreement is, for any reason, held to be invalid or unenforceable, the other provisions of this Agreement will remain enforceable and the invalid or unenforceable provision will be deemed modified so that it is valid and enforceable to the maximum extent permitted by law. 

7.3Survival.  This Agreement shall survive the termination of my employment and the assignment of this Agreement by Company to any successor or other assignee and shall be binding upon my heirs and legal representatives. 

7.4Employment.  I agree and understand that nothing in this Agreement shall give me any right to continued employment by Company, and it will not interfere in any way with my right or Company’s right to terminate my employment at any time, with or without cause and with or without advance notice. 

7.5Notices.  Each party must deliver all notices or other communications required or permitted under this Agreement in writing to the other party at the address listed on the signature page, by courier, by certified or registered mail (postage prepaid and return receipt requested), or by a nationally-recognized express mail service.  Notice will be effective upon receipt or refusal of delivery.  If delivered by certified or registered mail, notice will be considered to have been given five (5) business days after it was mailed, as evidenced by the postmark.  If 

 

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delivered by courier or express mail service, notice will be considered to have been given on the delivery date reflected by the courier or express mail service receipt. Each party may change its address for receipt of notice by giving notice of the change to the other party. 

7.6Injunctive Relief.  I acknowledge that, because my services are personal and unique and because I will have access to the Confidential Information of Company, any breach of this Agreement by me would cause irreparable injury to Company for which monetary damages would not be an adequate remedy and, therefore, will entitle Company to injunctive relief (including specific performance) without an obligation of posting a bond or proving actual damages.  The rights and remedies provided to each party in this Agreement are cumulative and in addition to any other rights and remedies available to such party at law or in equity. 

7.7Waiver.  Any waiver or failure to enforce any provision of this Agreement on one occasion will not be deemed a waiver of that provision or any other provision on any other occasion. 

7.8Export.  I agree not to export, reexport, or transfer, directly or indirectly, any U.S. technical data acquired from Company or any products utilizing such data, in violation of the United States export laws or regulations. 

7.9Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall be taken together and deemed to be one instrument. 

7.10 Entire Agreement.  If no other agreement governs nondisclosure and assignment of inventions during any period in which I was previously employed or am in the future employed by Company as an independent contractor, the obligations pursuant to sections of this Agreement titled Confidential Information Protections and Inventions shall apply.  This Agreement is the final, complete and exclusive agreement of the parties with respect to the subject matter hereof and supersedes and merges all prior communications between us with respect to such matters.  No modification of or amendment to this Agreement, or any waiver of any rights under this Agreement, will be effective unless in writing and signed by me and the CEO of Company.  Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement. 

 

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This Agreement shall be effective as of the last date of execution below.

 

	
EMPLOYEE:
	
 
	
COMPANY:

	
 
	
 
	
 
	
 

	
I HAVE READ, UNDERSTAND, AND ACCEPT THIS AGREEMENT AND HAVE BEEN GIVEN THE OPPORTUNITY TO REVIEW IT WITH INDEPENDENT LEGAL COUNSEL
	
 
	
ACCEPTED AND AGREED:

	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Reshma Rangwala
	
 
	
By:
	
/s/ Gail McIntyre

	
Name: 
	
Reshma Rangwala
	
 
	
Name: 
	
Gail McIntyre

	
Title:
	
Chief Medical Officer
	
 
	
Title:
	
Chief Executive Officer

	
 
	
 
	
 
	
 
	
 

	
Date:
	
September 10, 2020
	
 
	
Date:
	
September 10, 2020

	
 
	
 
	
 
	
 
	
 

	
Address:
	
XXXX
	
 
	
Address:
	
XXXX

 

 

 

5

 

 

EXHIBIT A 

INVENTIONS 

	
1.
	
Prior Inventions Disclosure.  The following is a complete list of all Prior Inventions (as provided in Subsection 2.2 of the attached Employee Confidential Information and Inventions Assignment Agreement, defined herein as the “Agreement”): 

 

	
x
	
None 
	
o
	
See immediately below: 

	
 
	
 
	
 

 

	
2.
	
Limited Exclusion Notification.   

THIS IS TO NOTIFY you in accordance with Section 2872 of the California Labor Code that the foregoing Agreement between you and Company does not require you to assign or offer to assign to Company any Invention that you develop entirely on your own time without using Company’s equipment, supplies, facilities or trade secret information, except for those Inventions that either: 

a.Relate at the time of conception or reduction to practice to Company’s business, or actual or demonstrably anticipated research or development; or 

b.Result from any work performed by you for Company. 

To the extent a provision in the foregoing Agreement purports to require you to assign an Invention otherwise excluded from the preceding paragraph, the provision is against the public policy of this state and is unenforceable. 

This limited exclusion does not apply to any patent or Invention covered by a contract between Company and the United States or any of its agencies requiring full title to such patent or Invention to be in the United States.Exhibit 4.2

 

DESCRIPTION OF SECURITIES

 

General

 

The Company’s authorized capital
stock consists of:

 

		●	20,000,000
shares of Common Stock, $0.001 par value per share; and

 

		●	20,000,000
shares of preferred stock, $0.001 par value per share.

 

Our Common Stock may be issued for such
consideration as may be fixed from time to time by our board of directors. Our board of directors may issue such shares of our
Common Stock in one or more series, with such voting powers, shall be stated in the resolution or resolutions.

 

Common Stock

 

As of the date hereof, there are 24,420,526
shares of our Common Stock issued and outstanding. Holders of Common Stock are entitled to cast one vote for each share on all
matters submitted to a vote of shareholders, including the election of directors. The holders of Common Stock are entitled to receive
ratably such dividends, if any, as may be declared by the Board out of funds legally available therefore. Such holders do not have
any preemptive or other rights to subscribe for additional shares. All holders of Common Stock are entitled to share ratably in
any assets for distribution to shareholders upon the liquidation, dissolution or winding up of the Company, subject to prior distribution
rights of preferred stock then outstanding. There are no conversions, redemptions or sinking fund provisions applicable to the
Common Stock. All outstanding shares of Common Stock are fully paid and non-assessable.

 

Preferred Stock

 

As of the date hereof, there is no preferred
stock outstanding. Pursuant to the articles of incorporation of the Company, the Board of Directors is expressly granted the authority
to issue preferred stock up to 20,000,000 shares and prescribe its designations.

 

The following description of preferred
stock and the description of the terms of any particular series of preferred stock of the Company are not complete. The Company’s
Board of Directors has the authority, without further action by the shareholders, to issue shares of preferred stock in one or
more series and to fix the rights, preferences, privileges and restrictions granted to or imposed upon the preferred stock. Any
or all of these rights may be greater than the rights of the Company’s Common Stock. These descriptions are qualified in
their entirety by reference to the Company’s Articles of Incorporation, as amended, and the certificate of designation relating
to each such series.

 

Conversion Rights

 

Each share of Series A Convertible Preferred
Stock is initially convertible at any time at the option of the holders into one share of Common Stock and automatically converts
into one share of Common Stock (the “Conversion Ratio”) on its four-year anniversary of issuance and without the payment
of additional consideration by the holder thereof.

 

No fractional shares shall be issued upon
conversion of Series A Convertible Preferred Stock into Common Stock and no payment. In lieu of delivering fractional shares, we
will pay to the holder, to the extent permitted by law, an amount in cash equal to the current fair market value of such fractional
share as determined in good faith by our Board.

 

     

     

    

 

No Maturity, Sinking Fund or Mandatory
Redemption

 

The Series A Convertible Preferred Stock
has no maturity date and we are not required to redeem the Series A Convertible Preferred Stock at any time. However, we may choose
to convert all the outstanding shares of the Series A Convertible Preferred Stock into our Common Stock at the same Conversion
Ratio at any time, provided that we have prepaid and distributed all the dividend accrued and to be accrued at the end of the four-year
period since issuance thereof. Accordingly, the Series A Convertible Preferred Stock will remain outstanding until automatically
converted to Common Stock on the four-year anniversary of issuance, unless the holders of the Series A Convertible Preferred Stock
or we choose to convert the Series A Convertible Preferred Stock into the Common Stock. The Series A Convertible Preferred Stock
is also not subject to any sinking fund.

 

Voting Rights

 

Holders of shares of the Series A Convertible
Preferred Stock shall have the same voting rights as of the holders of our Common Stock.

 

Warrants and Options

 

As of the date hereof, we have 545,182
and 4,436,175 options and warrants, respectively of the Company outstanding.

 

Transfer Agent

 

The transfer agent and registrar for our
Common Stock is: Olde Monmouth Stock Transfer, Inc.; Address: 200 Memorial Pkwy, Atlantic Highlands, NJ 07716; Phone: (732) 872-2727;
website:www.oldemonmouth.com.

 

Anti-Takeover Provisions

 

Nevada Revised Statutes

 

Acquisition of Controlling Interest
Statutes. Nevada’s “acquisition of controlling interest” statutes contain provisions governing the acquisition
of a controlling interest in certain Nevada corporations. These “control share” laws provide generally that any person
that acquires a “controlling interest” in certain Nevada corporations may be denied certain voting rights, unless a
majority of the disinterested shareholders of the corporation elects to restore such voting rights. These statutes provide that
a person acquires a “controlling interest” whenever a person acquires shares of a subject corporation that, but for
the application of these provisions of the Nevada Revised Statutes, would enable that person to exercise (1) one-fifth or more,
but less than one-third, (2) one-third or more, but less than a majority or (3) a majority or more, of all of the voting power
of the corporation in the election of directors. Once an acquirer crosses one of these thresholds, shares which it acquired in
the transaction taking it over the threshold and within the 90 days immediately preceding the date when the acquiring person acquired
or offered to acquire a controlling interest become “control shares” to which the voting restrictions described above
apply. Our articles of incorporation and bylaws currently contain no provisions relating to these statutes, and unless our articles
of incorporation or bylaws in effect on the tenth day after the acquisition of a controlling interest were to provide otherwise,
these laws would apply to us if we were to (i) have 200 or more shareholders of record (at least 100 of which have addresses in
the State of Nevada appearing on our stock ledger) and (ii) do business in the State of Nevada directly or through an affiliated
corporation. If these laws were to apply to us, they might discourage companies or persons interested in acquiring a significant
interest in or control of the Company, regardless of whether such acquisition may be in the interest of our shareholders.

  

Combinations with Interested Shareholders
Statutes. Nevada’s “combinations with interested shareholders” statutes prohibit certain business “combinations”
between certain Nevada corporations and any person deemed to be an “interested shareholder” for two years after such
person first becomes an “interested shareholder” unless (i) the corporation’s board of directors approves the
combination (or the transaction by which such person becomes an “interested shareholder”) in advance, or (ii) the combination
is approved by the board of directors and sixty percent of the corporation’s voting power not beneficially owned by the interested
shareholder, its affiliates and associates. Furthermore, in the absence of prior approval certain restrictions may apply even after
such two-year period. For purposes of these statutes, an “interested shareholder” is any person who is (x) the beneficial
owner, directly or indirectly, of ten percent or more of the voting power of the outstanding voting shares of the corporation,
or (y) an affiliate or associate of the corporation and at any time within the two previous years was the beneficial owner, directly
or indirectly, of ten percent or more of the voting power of the then outstanding shares of the corporation. The definition of
the term “combination” is sufficiently broad to cover most significant transactions between the corporation and an
“interested shareholder”. Subject to certain timing requirements set forth in the statutes, a corporation may elect
not to be governed by these statutes. We have not included any such provision in our articles of incorporation.

 

The effect of these statutes may be to
potentially discourage parties interested in taking control of the Company from doing so if it cannot obtain the approval of our
board of directors.

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