Document:

mstx-ex1049_401.htm

 

Exhibit 10.49

TEMPORARY EMPLOYMENT AGREEMENT

THIS TEMPORARY EMPLOYMENT AGREEMENT (“Agreement”) is entered into and becomes effective as of October 31, 2016, by and between Mast Therapeutics, Inc. and all related entities, affiliates and subsidiaries (“Mast” or “Employer”) and R. Martin Emanuele (“Employee”).

RECITALS

A.Mast is a corporation and is doing business in the State of California.

B.Employee has been employed by Mast as a Senior Vice President, Development.  

C.On or about October 28, 2016, Employee’s employment with Mast terminated as part of a reduction in force.  

D.Mast has offered Employee new, part-time, temporary employment to assist with transition matters that may arise.  

E.Both Mast and Employee desire that Employee be hired as a Research & Development Advisor on a part‐time, temporary basis for Mast, pursuant to the terms of this Agreement.

IN CONSIDERATION of the promises and of the mutual covenants contained herein, and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:

AGREEMENT

1.Employment.  Mast hereby engages Employee to serve as a part-time, temporary Research & Development Advisor and Employee hereby accepts such engagement upon the terms and conditions set forth herein.

2.Term.  The term of this Agreement shall begin on the effective date stated above and shall remain in effect until the transition services are completed, unless terminated sooner pursuant to Paragraph 9.  

3.Duties.  Employee is employed to serve as a part‐time Research & Development Advisor and shall perform such duties as Mast’s Chief Executive Officer, or his designee, assigns from time to time.  Employee acknowledges that he reports to Mast’s Chief Executive Officer who will be Employee’s supervisor.  As part of Employee’s duties, Employee acknowledges and understands that: (a) Employee will devote his utmost knowledge and best skill to the performance of his duties; and (b) Employee shall devote sufficient time to complete the duties of this position, subject to absences for temporary illness.  

4.Limitations on Authority.  Employee understands that he may not enter into any of the following types of agreements without the express written approval of Employee’s supervisor:

a.Pledge the credit of Mast or any of its other employees;

b.Bind Mast under any contract, agreement, note, mortgage or otherwise;

c.Release or discharge any debt due to Mast unless Mast has received the full amount thereof; and,

d.Sell, mortgage, transfer or otherwise dispose of any assets of Mast.

5.Personnel Policies and Procedures.  Mast has established policies and procedures to be followed by its employees, including part-time and temporary employees, and Mast shall have the authority to change or establish new personnel policies and procedures from time to time to be followed by its employees.  Employee agrees to comply with the policies and procedures of Mast.  To the extent any provisions in Mast’s personnel 

 

 

policies and procedures differ with the terms of this Agreement, the terms of this Agreement shall apply.

6.Wages.  During the term of this Agreement, Employee’s regular hourly rate of pay shall be One Hundred Fifty Four Dollars ($154.00), less payroll deductions and withholding, payable in equal biweekly payments in accordance with Mast’s payroll policies.  Employee must receive approval from his supervisor before working any overtime and all such overtime must be reported on Employee’s timesheet in accordance with Mast’s applicable policies and procedures.

7.Fringe Benefits.  As a temporary employee, Employee is not entitled to receive any fringe benefits, except for paid sick leave pursuant to the terms of Employer’s paid sick leave policy, and the right to participate in Mast’s 401(k) plan.  As such, Employee is not eligible for health, life or disability insurance, vacation benefits or any other benefits that apply to regular, full-time employees.  

8.Expenses.  Mast shall reimburse Employee for reasonable and necessary expenses incurred by Employee in the ordinary course of business for Mast, in accordance with Mast’s policies and procedures.

9.Termination At-Will.  This Agreement and the Employee’s employment are terminable at-will.  Both Employee and Mast may terminate Employee’s employment at any time, for any reason or no reason, upon written notice to the other.  Employee is not entitled to receive any severance compensation, other than the wages due to him through the last day of his employment.  

10.Arbitration/Sole Remedy for Breach of Agreement.  In the event of any dispute between Mast and Employee concerning any aspect of this temporary employment relationship, including any disputes relating to termination, all such disputes shall be resolved by binding arbitration before a single neutral arbitrator pursuant to the following terms.  This provision shall supersede any prior arbitration agreement, policy or understanding between the parties.  The parties intend to revoke any prior arbitration agreement.

a.Claims Covered by the Agreement.  Employee and Employer mutually consent to the resolution by final and binding arbitration of all claims or controversies (“claims”) that Employer may have against Employee or that Employee may have against Employer or against its officers, directors, partners, employees, stockholders, agents, pension or benefit plans, administrators, or fiduciaries, franchisors, or any parent, subsidiary or affiliated company or corporation (collectively referred to as “Mast”), relating to, resulting from, or in any way arising out of Employee’s employment relationship with Mast and/or the termination of Employee’s employment relationship with Mast, to the extent permitted by law.  The claims covered by this Agreement include, but are not limited to, claims for wages or other compensation due; claims for breach of any contract or covenant (express or implied); tort claims; claims for discrimination and harassment (including, but not limited to, race, sex, religion, national origin, age, marital status or medical condition, disability, or sexual orientation); claims for benefits (except where an employee benefit or pension plan specifies that its claims procedure shall culminate in an arbitration procedure different from this one); claims for breach of any duties or obligations, including, but not limited to, claims for unfair competition, unauthorized use or disclosure of trade secrets or confidential information, including claims for injunctive and/or other equitable relief; and claims for violation of any public policy, federal, state or other governmental law, statute, regulation or ordinance, except claims excluded in the following section.

b.Claims Not Covered by the Agreement.  Claims Employee may have for workers’ compensation (excluding discrimination claims under workers’ compensation statutes) or unemployment compensation benefits are not covered by this Agreement.  

c.Required Notice of Claims and Statute of Limitations.  Arbitration may be initiated by Employee by serving or mailing a written notice to the Chief Executive Officer of Mast.  Arbitration may be initiated by Mast by serving or mailing a written notice to Employee at his/her last known address.  The notice shall identify and describe the nature of all claims asserted and the facts upon which such claims are based.  The written notice shall be served or mailed within the applicable statute of limitations period set forth by federal or state law.  

d.Arbitration Procedures.

i.After demand for arbitration has been made by serving written notice under the terms of Section 10(c) of this Agreement, the party demanding arbitration shall file a demand for arbitration with the office of ADR Services, Inc. (“ADR”) located in San Diego, California.  The arbitrator shall be selected from the ADR panel and the arbitration shall be conducted pursuant to ADR policies and procedures.  All rules governing the arbitration shall be the rules as set forth by ADR.  If the dispute is employment-related, the dispute shall be governed by ADR’s then current version of the ADR Services, Inc. Arbitration Rules.  ADR’s then applicable rules governing the arbitration may be obtained from ADR’s website which currently is www.adrservices.org. 

- 2 -

 

ii.The arbitrator shall apply the substantive law (and the law of remedies, if applicable) of the state in which the claim arose, or federal law, or both, as applicable to the claim(s) asserted.  The arbitrator shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability or formation of this Agreement, including but not limited to any claim that all or any part of this Agreement is void or voidable.

iii.Either party may file a motion for summary judgment with the arbitrator.  The arbitrator is entitled to resolve some or all of the asserted claims through such a motion.  The standards to be applied by the arbitrator in ruling on a motion for summary judgment shall be the applicable laws as specified in Section 10(d)(ii) of this Agreement.

iv.Discovery shall be allowed and conducted pursuant to the then applicable arbitration rules of ADR, provided that the parties shall be entitled to discovery sufficient to adequately arbitrate their claims and defenses.  The arbitrator is authorized to rule on discovery motions brought under the applicable discovery rules.

e.Application for Emergency Injunctive and/or Other Equitable Relief.  Claims by Mast or Employee for emergency injunctive and/or other equitable relief relating to unfair competition and/or the use and/or unauthorized disclosure of trade secrets or confidential information shall be submitted to ADR for emergency treatment.  The parties agree that the ADR administrator may select a neutral hearing officer (subject to conflicts) to hear the emergency request only.  The hearing officer should be experienced in considering requests for emergency injunctive and/or other equitable relief.  The hearing officer shall conform his/her consideration and ruling with the applicable legal standards as if this matter were heard in a court of law in the applicable jurisdiction for such a dispute.  

f.Arbitration Decision.  The arbitrator’s decision will be final and binding.  The arbitrator shall issue a written arbitration decision revealing the essential findings and conclusions upon which the decision and/or award is based.  A party’s right to appeal the decision is limited to grounds provided under applicable federal or state law.

g.Place of Arbitration.  The arbitration will be at a mutually convenient location that must be within 50 miles of Employee’s last employment location.  If the parties cannot agree upon a location, then the arbitration will be held at ADR office nearest to Employee’s last employment location.

h.Representation, Fees and Costs.  Each party may be represented by an attorney or other representative selected by the party.  Each party shall be responsible for its own attorneys’ or representative’s fees.  However, if any party prevails on a statutory claim that affords the prevailing party’s attorneys’ fees, or if there is a written agreement providing for fees, the arbitrator may award reasonable fees to the prevailing party.  Mast shall be responsible for the arbitrator’s fees and costs to the extent they exceed any fee or cost that Employee would be required to bear if the action were brought in court.

i.Waiver Of Jury Trial/Exclusive Remedy.  Employee and Mast knowingly and voluntarily waive any constitutional right to have any dispute between them decided by a court of law and/or by a jury in court.  

11.Successors and Assigns.  The rights and obligations of Mast under this Agreement shall enure to the benefit of and shall be binding upon the successors and assigns of Mast.  Employee shall not be entitled to assign any of his rights or obligations under this Agreement.

12.Governing Law.  This Agreement shall be interpreted, construed, governed and enforced in accordance with the laws of the State of California.

13.Amendments.  No amendment or modification of the terms or conditions of this Agreement shall be valid unless in writing and signed by the parties hereto.

- 3 -

 

14.Counterparts.  This Agreement may be executed in counterparts and, if so executed, each such counterpart shall have the force and effect of an original.  A facsimile signature shall have the same force and effect as an original signature.

15.Separate Terms/Severability.  Each term, condition, covenant or provision of this Agreement shall be viewed as separate and distinct, and in the event that any such term, covenant or provision shall be held by a court or arbitrator of competent jurisdiction to be invalid, unenforceable or void, the remaining provisions shall continue in full force and effect.

16.Waiver.  A waiver by either party of a breach of provision or provisions of this Agreement shall not constitute a general waiver, or prejudice the other party’s right otherwise to demand strict compliance with that provision or any other provisions in this Agreement.

17.Notices.  Any notice required or permitted to be given under this Agreement shall be sufficient, if in writing, sent by mail to his last known residential address in the case of Employee, or hand delivered to Employee, or to its principal office in the case of Mast.

18.Entire Agreement.  Employee acknowledges receipt of this Agreement and agrees that this Agreement, together with the Confidential Information, Non-Solicitation and Invention Assignment Agreement between Employee and Mast, represents the entire Agreement with Mast concerning his/her employment, and supersedes any previous oral or written communications, representations, understandings or Agreements with Mast or any agent thereof.  Employee understands that no representative of Mast has been authorized to enter into any Agreement or commitment with Employee which is inconsistent in any way with the terms of this Agreement.

IN WITNESS HEREOF, the parties have executed this Agreement as of the dates set forth below and this Agreement shall be effective as of the date set forth in the first paragraph of this Agreement.

 

	
Dated:  October 31, 2016
	
/s/ R. Martin Emanuele
	
 

	
 
	
R. Martin Emanuele
	
 

	
 
	
 
	
 

	
 
	
Mast Therapeutics, Inc.
	
 

	
 
	
 
	
 

	
Dated:  October 31, 2016
	
By:
	
/s/ Brian Culley
	
 

	
 
	
Name: 
	
Brian Culley
	
 

	
 
	
Title: 
	
CEO
	
 

 

- 4 -mstx-ex1050_400.htm

 

Exhibit 10.50

SEPARATION AGREEMENT
AND
GENERAL RELEASE OF CLAIMS

THIS SEPARATION AGREEMENT AND GENERAL RELEASE OF CLAIMS (hereinafter “Agreement”) is entered into by and between Gregory D. Gorgas (hereinafter “Employee”) and Mast Therapeutics, Inc. (hereinafter “Mast”).  Employee and Mast hereinafter are collectively referred to as “the Parties.”

RECITALS

A.Mast is a corporation and is doing business in the State of California.

B.Employee has been employed by Mast as a Senior Vice President, Commercial.

C.On or about December 28, 2016, Employee’s employment with Mast terminated as part of a reduction in force. 

D.In accordance with the terms of the Executive Severance Agreement, dated March 23, 2016, between Employee and Mast (the “Executive Severance Agreement”), Employee desires to settle and compromise any and all possible claims and disputes he has against Mast arising out of their relationship to date, and to provide for a general release of any and all such claims. 

AGREEMENT

1.Termination of Employment.  Employee agrees that his employment with Mast terminated as of December 28, 2016 and he has complied with the provisions of Section 1.3 of the Executive Severance Agreement. 

2.Separation Pay/Consideration.  In consideration of the covenants and releases given herein, eight (8) days after Employee’s execution of this Agreement, Employee will become eligible to receive the following consideration:

a.Separation Pay.  Mast will tender a check to Employee in an amount of Two Hundred Forty Nine Thousand Two Hundred Seventy Six Dollars and Ninety Nine Cents ($249,276.99), less applicable federal and California payroll tax deductions, which is the equivalent of (i) nine (9) months of Employee’s base salary and (ii) the amount equal to the premiums necessary to continue Employee’s health insurance coverage in effect for Employee and Employee’s covered dependents under the Consolidated Omnibus Reconciliation Act of 1985, for a period of nine (9) months; 

b.Acceleration and Extension of Exercise Period of Stock Options.  Each stock option granted to Employee before and outstanding immediately prior to Employee’s termination of employment on December 28, 2016 will become vested with respect to 18.75% of the total number of shares that were subject to the stock option on its date of grant, which accelerated vesting shall be in addition to the shares that had vested and become exercisable in accordance with the stock option’s normal vesting schedule as of such date (provided that no stock option shall become vested and exercisable for more than the total number of shares that were subject to the stock option on its date of grant), and the exercise period for each such stock option shall be extended such that Employee may exercise the stock option, to the extent vested (after giving affect to the foregoing acceleration) and in accordance with the terms of the written agreement evidencing the stock option, any time after this Agreement becomes effective and prior to the close of business on September 30, 2017, as shown in Exhibit 2 attached to this Agreement; and

c.Unemployment Insurance Claim.  Mast will not oppose Employee’s claim for unemployment insurance benefits, and, if asked, will inform the California Employment Development Department that Employee was laid off by Mast as part of a reduction in force.  

 

 

3.Release.  

a.Release.  Employee does hereby unconditionally, irrevocably and absolutely release and discharge Mast, its directors, officers, employees, agents, attorneys, stockholders, insurers, divisions, affiliates, successors and assigns, and any related holding, parent, sister or subsidiary corporations from any and all loss, liability, claims, demands, causes of action or suits of any type, whether in law and/or in equity, related directly or indirectly, or in any way connected with any transactions, affairs or occurrences between them to date, including, but not limited to, Employee’s employment with Mast and the termination of said employment.  This Agreement specifically applies, without limitation, to any and all wage claims, claims for unpaid expenses, contract claims, tort claims, claims for wrongful termination, and claims arising under Title VII of the Civil Rights Act of 1991, the Americans with Disabilities Act, the Equal Pay Act, the Worker Adjustment and Retraining Notification Act, the Employee Retirement Income Security Act, the Sarbanes-Oxley Act of 2002, the California Fair Employment and Housing Act, the Fair Labor Standards Act, the Family and Medical Leave Act, the California Family Rights Act, the California Labor Code, the California Business and Professions Code, and any and all federal or state statutes or laws governing wages and/or discrimination in employment.  In addition, this Agreement specifically applies to any claims for age discrimination harassment or retaliation in employment, including any claims arising under the Age Discrimination in Employment Act or any other statutes or laws which govern age discrimination in employment.  Nothing in this Agreement shall be construed to mean that Employee is releasing or waiving claims to enforce this Agreement, workers’ compensation claims, claims for unemployment insurance benefits, claims for any vested retirement or claims that, by law, cannot be waived.

b.Section 1542 Waiver.  Employee does expressly waive all of the benefits and rights granted to him pursuant to California Civil Code section 1542, which reads as follows:

A general release does not extend to claims which the creditor does not know of or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

Employee does certify that he has read all of this Agreement, including the release provisions contained herein and the quoted Civil Code section, and that he fully understands all of the same.  Employee hereby expressly agrees that this Agreement shall extend and apply to all unknown, unsuspected and unanticipated injuries and damages, as well as those that are now disclosed.

c.No Further Action.  Except as set forth in Section 5, Employee irrevocably and absolutely agrees that he will not prosecute nor allow to be prosecuted on his behalf, in any administrative agency, whether federal or state, or in any court, whether federal or state, any claim or demand of any type related to the matters released above, it being the intention of the Parties that with the execution by Employee of this release, Mast, its directors, officers, employees, agents, attorneys, stockholders, insurers, divisions, successors and assigns, and any related holding, parent or subsidiary corporations will be absolutely, unconditionally and forever discharged of and from all obligations to or on behalf of Employee related in any way to the matters discharged herein. 

4.Additional Provisions Regarding Release of Age Claims/OWBPA Provisions.  

a.ADEA Claims.  This section of the Agreement exclusively addresses issues relating to Employee’s release of claims arising under federal law involving discrimination on the basis of age in employment (age forty and above).  This section is provided separately, in compliance with federal law, including but not limited to the Older Workers’ Benefit Protection Act of 1990 (“OWBPA”), to ensure that Employee clearly understands his rights so that any release of age discrimination claims under federal law (the ADEA) is knowing and voluntary on the part of Employee.

b.Review Period/OWBPA Provisions.  In accordance with the provisions of the OWBPA, Employee is aware of the following:  Employee represents, acknowledges and agrees that Mast has advised him, in writing, (i) to discuss this Agreement with an attorney, and to that extent, if any, that Employee has desired, Employee has done so; (ii) that Mast has given Employee forty-five (45) days from receipt of this Agreement to review and consider this Agreement before signing it, and Employee understands that he may use as much of this 

- 2 -

 

forty-five (45) day period as he wishes prior to signing; (iii) that no promise, representation, warranty or agreements not contained herein have been made by or with anyone to cause him to sign this Agreement; (iv) that he has read this Agreement in its entirety, and fully understands and is aware of its meaning, intent, content and legal effect; (v) that he is executing this release voluntarily and free of any duress or coercion; (vi) that this Agreement includes rights and claims under the federal Age Discrimination in Employment Act, as amended, and the federal OWBPA, as amended; and (vii) that this Agreement does not waive rights or claims that may arise after the date Employee signs this Agreement.

c.Review of Exhibit.  Employee represents, acknowledges and agrees that he has reviewed Exhibit 1, attached to this Agreement, which sets forth the job titles and ages of employees in the applicable decisional unit whose current position have been impacted by the reduction in force and the relevant job titles and ages of employees who were not impacted by the reduction in force.  

d.Effective Date of Agreement.  The Parties acknowledge that for a period of seven (7) days following the execution of this Agreement, Employee may revoke the Agreement, and the Agreement shall not become effective or enforceable until the revocation period has expired.  This Agreement shall become effective eight (8) days after it has been signed by Employee and Mast, and in the event the parties do not sign on the same date, then this Agreement shall become effective eight (8) days after the date it is signed by Employee.

5.Protected Rights.  Employee understands that nothing contained in this Agreement limits Employee’s ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission, or any other federal, state or local government agency or commission (“Government Agencies”), including an Age Discrimination in Employment Act charge or complaint, although Employee may have no right to relief by reason of the claims Employee has released herein.  Employee further understands that this Agreement does not limit Employee’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to Mast.  Nothing in this Agreement shall restrict or limit any right Employee may have to receive a whistleblower award or bounty for information provided to the Securities and Exchange Commission.

6.Acknowledgements/Affirmations.  Employee acknowledges and affirms that he has been paid and/or has received all wages, bonuses, incentive compensation, accrued vacation and benefits to which employee may be entitled.  Employee also acknowledges and affirms that he has been provided information regarding his ability to continue to receive health insurance benefits as COBRA benefits after the termination of his employment.

7.Confidentiality/Non-Disparagement.  Employee agrees that all matters relative to this Agreement shall remain confidential.  Accordingly, Employee hereby agrees that, with the exception of his spouse, counsel and tax advisors, he shall not discuss, disclose or reveal to any other persons, entities or organizations, whether within or outside of Mast, the terms and conditions of this Agreement.  Employee agrees not to make any derogatory or adverse statements, written or verbal, regarding Mast or any of its present or former directors, officers or employees, to anyone.

8.Reference Requests.  Any reference requests concerning Employee will be referred to the Human Resources Department.  The only information that will be provided in response to such a request will be Employee’s dates of employment, his title, confirmation of his rate of pay, a statement that Employee was terminated as a result of a reduction in force and would not have been terminated but for that company action, and a statement that it is Mast’s policy to only provide that information.

9.Entire Agreement.  The Parties further declare and represent that no promise, inducement or agreement not herein expressed has been made to them and that this Agreement together with the Executive Severance Agreement contain the full and entire agreement between and among the Parties, and that the terms of this Agreement are contractual and not a mere recital.

10.Applicable Law.  The validity, interpretation, and performance of this Agreement shall be construed and interpreted according to the laws of the State of California.

- 3 -

 

11.Dispute Resolution.  Except as set forth in Section 5, any dispute arising out of or related to this Agreement shall be resolved through binding arbitration through JAMS in San Diego, California, under the then current applicable rules of JAMS.  Each party shall be responsible for its or his or her own costs and attorneys’ fees in connection with the arbitration, as well as half of the costs of the arbitration.

12.Knowing and Voluntary Agreement.  Employee acknowledges that he has carefully read and fully understands all the provisions and effects of this Agreement.  Employee further acknowledges that he has been given the opportunity to consult with his own independent legal counsel with respect to the matters referenced in this Agreement.  Employee acknowledges that he has fully discussed this Agreement with his attorney or has voluntarily chosen to sign this Agreement without consulting an attorney, fully understanding the consequences of this Agreement.  Employee further acknowledges that he is entering into this Agreement without coercion or duress from Mast and that neither Mast nor any of its agents or attorneys has made any representations or promises concerning the terms or effects of this Agreement other than those set forth in this Agreement.

13.Complete Defense.  This Agreement may be pleaded as a full and complete defense and may be used as the basis for an injunction against any action, suit or proceeding which may be prosecuted, instituted or attempted by either party in breach thereof.

14.Counterparts.  This Agreement may be executed in counterparts and, if so executed, each such counterpart shall have the force and effect of an original.  A facsimile signature shall have the same force and effect as an original signature.

15.Severability.  If any provision of this Agreement, or part thereof, is held invalid, void or voidable as against public policy or otherwise, the invalidity shall not affect other provisions, or parts thereof, which may be given effect without the invalid provision or part.  To this extent, the provisions, and parts thereof, of this Agreement are declared to be severable.  

16.No Admission of Liability.  It is understood that this Agreement is not an admission of any liability by any person, firm, association or corporation but is in compromise of a disputed claim.

17.Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, legal representatives, successors and assigns.

IN WITNESS WHEREOF, the undersigned have executed this Agreement on the dates shown below.

				
	
Dated:  January 5, 2017
	
/s/ Gregory D. Gorgas
	
 

	
 
	
Gregory D. Gorgas
	
 

	
 
	
 
	
 

	
 
	
Mast Therapeutics, Inc.
	
 

	
 

	
Dated:  January 5, 2017
	
By:
	
/s/ Brian Culley
	
 

	
 
	
Name:
	
Brian Culley
	
 

	
 
	
Title:
	
CEO
	
 

 

- 4 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00267-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00267-of-00352.parquet"}]]