SEC Contract Filing

Filing Date: 2016-11-10

Document Content:
<DOCUMENT>
<TYPE>EX-10.7
<SEQUENCE>3
<FILENAME>obln-ex107_176.htm
<DESCRIPTION>EX-10.7
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<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Exhibit 10.7</p>
<p style="text-align:center;margin-bottom:24pt;margin-top:0pt;text-indent:0%;font-size:10pt;font-family:Arial;text-transform:none;font-variant: small-caps;font-weight:bold;font-style:normal;">Retention Agreement</p>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-size:10pt;font-family:Arial;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">This Retention Agreement (the &#8220;<font style="font-weight:bold;">Agreement</font>&#8221;) is entered into by and between [Name] (the &#8220;<font style="font-weight:bold;">Executive</font>&#8221;) and Obalon Therapeutics, Inc., a Delaware corporation (the &#8220;<font style="font-weight:bold;">Company</font>&#8221;), on _________ __, 2016, and is effective on the first date on which a registration statement covering the initial public offering of the common stock of the Company is declared effective by the United States Securities and Exchange Commission (the &#8220;<font style="font-weight:bold;">Effective Date</font>&#8221;).</p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-weight:normal;color:#010000;font-size:10pt;font-family:Arial;font-style:normal;text-transform:none;font-variant: normal;">1.<font style="margin-left:36pt;"></font><font style="font-weight:bold;color:#000000;">Term of Agreement.</font></p>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-size:10pt;font-family:Arial;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Except to the extent renewed as set forth in this Section 1, this Agreement shall terminate the earlier of the third (3<sup style="font-size:85%; vertical-align:top">rd</sup>) anniversary of the Effective Date (the &#8220;<font style="font-weight:bold;">Expiration Date</font>&#8221;) or the date the Executive&#8217;s employment with the Company terminates for a reason other than a Qualifying Termination or CIC Qualifying Termination; <font style="font-style:italic;">provided however</font>, if a definitive agreement relating to a Change in Control has been signed by the Company on or before Expiration Date, then this Agreement shall remain in effect through the earlier of:</p>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;color:#010000;font-size:10pt;font-family:Arial;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(a)<font style="margin-left:36pt;"></font><font style="color:#000000;">The date the Executive&#8217;s employment with the Company terminates for a reason other than a Qualifying Termination or CIC Qualifying Termination, or</font></p>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;color:#010000;font-size:10pt;font-family:Arial;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(b)<font style="margin-left:36pt;"></font><font style="color:#000000;">The date the Company has met all of its obligations under this Agreement following a termination of the Executive&#8217;s employment with the Company due to a Qualifying Termination or CIC Qualifying Termination.</font></p>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-size:10pt;font-family:Arial;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">This Agreement shall renew automatically and continue in effect for three (3) year periods measured from the initial Expiration Date, unless the Company provides Executive notice of non-renewal at least three (3) months prior to the date on which this Agreement would otherwise renew. For the avoidance of doubt, and notwithstanding anything to the contrary in Section 2 or 3 below, the Company&#8217;s non-renewal of this Agreement shall not constitute a Qualifying Termination or CIC Qualifying Termination, as applicable. </p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-weight:normal;color:#010000;font-size:10pt;font-family:Arial;font-style:normal;text-transform:none;font-variant: normal;">2.<font style="margin-left:36pt;"></font><font style="font-weight:bold;color:#000000;">Qualifying Termination. </font><font style="color:#000000;">If the Executive is subject to a Qualifying Termination, then, subject to Sections 4, 9, and 10 below, Executive will be entitled to the following benefits: </font></p>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;color:#010000;font-size:10pt;font-family:Arial;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(a)<font style="margin-left:36pt;"></font><font style="font-weight:bold;color:#000000;">Severance Benefits. </font><font style="color:#000000;">The Company shall pay the Executive [twelve (12)]<sup style="font-size:85%; vertical-align:top">1</sup><sup style="font-size:85%; vertical-align:top"></sup> / [six (6)]<sup style="font-size:85%; vertical-align:top">2</sup><sup style="font-size:85%; vertical-align:top"></sup> months of his or her monthly base salary (at the rate in effect immediately prior to the actions that resulted in the Qualifying Termination).&nbsp;&nbsp;The Executive will receive his or her severance payment in a cash lump-sum in accordance with the Company&#8217;s standard payroll procedures which will be made on the first business day occurring after the sixtieth (60<sup style="font-size:85%; vertical-align:top">th</sup>) day following the Separat