EX-10.7





 Exhibit 10.7 

THESEUS PHARMACEUTICALS, INC. 

INCENTIVE BONUS PLAN 

 

	 	ARTICLE 1.	 BACKGROUND AND PURPOSE 



1.1 Effective Date. This Plan became effective upon its adoption by the Board and is not subject to approval by the Company’s
stockholders. 
 1.2 Purpose of the Plan. The Plan is intended to provide Participants with the possibility of earning incentive
bonuses. 
  

	 	ARTICLE 2.	 DEFINITIONS 



The following words and phrases shall have the following meanings, unless a different meaning is plainly required by the context: 

2.1 “Actual Award” means, as to any Performance Period, the actual award amount (if any) payable to a Participant for the
Performance Period. Subject to Sections 3.6 and 3.7, each Actual Award is determined by the Payout Formula for the Performance Period, subject to the Administrator’s authority under Section 3.6 to increase, eliminate or reduce the award
otherwise indicated by the Payout Formula. 
 2.2 “Administrator” means the Board, Committee or such other entity, group, or
individual delegated authority to administer the Plan in accordance with Section 5.1 of the Plan. 
 2.3 “Affiliate”
means any corporation or other entity (including, without limitation, partnerships and joint ventures) controlled by the Company. 
 2.4
“Base Salary” means, as to any Performance Period, the Participant’s regular base salary as in effect at the end of the Performance Period. Base Salary shall be calculated before both (a) deductions for taxes or benefits
and (b) any deferrals of compensation pursuant to Company-sponsored plans or Affiliate-sponsored plans. 
 2.5 “Board”
means the Company’s Board of Directors. 
 2.6 “Committee” means the Compensation Committee of the Board. 

2.7 “Company” means Theseus Pharmaceuticals, Inc., a Delaware corporation. 

2.8 “Employee” means any employee of the Company or an Affiliate, whether such employee is so employed when the Plan is
adopted or becomes so employed after the adoption of the Plan. 
 2.9 “Fiscal Year” means the fiscal year of the Company.













 2.10 “Participant” means, as to any Performance Period, an Employee who has
been selected for participation in the Plan for that Performance Period pursuant to Section 3.1. 
 2.11 “Payout
Formula” means, as to any Performance Period, the formula or payout matrix established by the Administrator pursuant to Section 3.5 in order to determine the Actual Awards (if any) to be paid to Participants. The formula or matrix may
differ from Performance Period to Performance Period and from Participant to Participant. 
 2.12 “Performance Period” means
a Fiscal Year, or any longer or shorter period determined by the Administrator. 
 2.13 “Performance Goals” means the
goal(s) or combined goal(s) determined by the Administrator to be applicable to a Participant for a Target Award for a Performance Period. Possible performance measures that might be used as a Performance Goal are set forth in Section 3.3
below. A Performance Goal may be established and measured either on a Company-wide basis or with respect to one or more business units, divisions, Affiliates, business segments or an individual, and either in absolute terms or relative to the
performance of one or more comparable companies or one or more relevant indices. The Administrator may adjust the results under any Performance Goal to exclude any of the following events that occurs during a Performance Period: (a) asset
write-downs, (b) litigation, claims, judgments or settlements, (c) the effect of changes in tax laws, accounting principles or other laws or provisions affecting reported results, (d) accruals for reorganization and restructuring
programs, (e) extraordinary, unusual or non-recurring items, (f) exchange rate effects for non-U.S. dollar denominated net sales and operating earnings, or
(g) statutory adjustments to corporate tax rates. 
 2.14 “Plan” means this Theseus Pharmaceuticals, Inc. Incentive
Bonus Plan. 
 2.15 “Shares” means shares of the Company’s common stock. 

2.16 “Target Award” means the target award amount payable under the Plan to a Participant for the Performance Period expressed
as a percentage of his or her Base Salary or a specific dollar amount or by reference to a number of Shares, as determined by the Administrator in accordance with Section 3.4. 

2.17 “Termination of Employment” means a cessation of the employee-employer relationship between an Employee and the Company
or an Affiliate for any reason, including (without limitation) a termination by resignation, discharge, death, disability, retirement or the disaffiliation of an Affiliate, but excluding a transfer from the Company to an Affiliate or between
Affiliates. 
  

	 	ARTICLE 3.	 SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS 



3.1 Selection of Participants. The Administrator, in its sole discretion, shall select the Employees who shall be Participants for any
Performance Period. Participation in the Plan is in the sole discretion of the Administrator and shall be determined Performance Period by Performance Period. Accordingly, an Employee who is a Participant for a given Performance Period is in no way
assured of being selected for participation in any subsequent Performance Period. 

  
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 3.2 Determination of Performance Period. The Administrator, in its sole discretion,
shall establish whether a Performance Period shall be a Fiscal Year or such longer or shorter period of time. The Performance Period may differ from Participant to Participant and from award to award. 

3.3 Determination of Performance Goals. The Administrator shall establish the Performance Goals for each Participant for the Performance
Period, and the Administrator (or its designee) shall communicate the applicable Performance Goals to each Participant. The Performance Goals may differ from Participant to Participant and from award to award. In addition to such other objectives as
may be established from time to time by the Administrator in its sole discretion, the following performance objectives may be used as the basis of a Performance Goal: earnings (before or after taxes); earnings per share; earnings before interest,
taxes and depreciation; earnings before interest, taxes, depreciation and amortization; total stockholder return; return on equity or average stockholders’ equity; return on assets, investment or capital employed; operating income; gross
margin; operating margin; net operating income; net operating income after tax; return on operating revenue; sales or revenue; expense or cost reduction; working capital; economic value added (or an equivalent metric); market share; cash flow or
cash balance; operating cash flow; cash flow per share; share price; debt reduction; customer satisfaction; stockholders’ equity; employee survey results; development and launch of new products; individual or departmental performance goals; and
other measures of performance selected by the Administrator from time to time. 
 3.4 Determination of Target Awards. The
Administrator shall establish a Target Award for each Participant for each Performance Period, and the Administrator (or its designee) shall communicate the applicable Target Award to each Participant. 

3.5 Determination of Payout Formula or Formulae. The Administrator will establish a Payout Formula or Formulae for purposes of
determining the Actual Award (if any) payable to each Participant. Each Payout Formula may (a) be based on a comparison of actual performance to the Performance Goals, (b) provide for the payment of a Participant’s Target Award if the
Performance Goals for the Performance Period are achieved at the predetermined level and (c) provide for the payment of an Actual Award greater than or less than the Participant’s Target Award, depending upon the extent to which actual
performance exceeds or falls below the Performance Goals, subject to Section 3.7. 
 3.6 Determination of Actual Awards. The
Administrator will determine the extent to which the Performance Goals applicable to each Participant for the Performance Period were achieved or exceeded. The Actual Award for each Participant will be determined by applying the Payout Formula to
the level of actual performance that has been determined by the Administrator; provided that notwithstanding anything to the contrary in this Plan, the Administrator may (a) reduce or eliminate the Actual Award that otherwise would be payable
under the Payout Formula; (b) subject to Section 3.7, increase the Actual Award; or (c) determine whether or not any Participant will receive an Actual Award in the event that the Participant incurs a Termination of Employment before
such Actual Award is to be paid pursuant 

  
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to Section 4.2. If a Participant’s Actual Award is reduced or eliminated, no other Participant’s Actual Award shall be increased as a result. The Administrator has the absolute
discretion to reduce or eliminate payment of an Actual Award if in the Administrator’s judgment corporate performance, financial condition, individual performance, general economic conditions, or other similar factors make such reduction or
elimination appropriate. 
 3.7 Maximum Actual Awards. The Administrator may establish the maximum amount or value of the Actual Award
paid to any Participant for any Performance Period. 
  

	 	ARTICLE 4.	 PAYMENT OF AWARDS 



4.1 Right to Receive Payment. A Participant shall have no right to receive an Actual Award unless the Participant is employed by the
Company or an Affiliate on the date of payment, unless otherwise determined by the Administrator. 
 4.2 Unfunded Plan. Each Actual
Award that may become payable under the Plan shall be paid solely from the general assets of the Company or the Affiliate that employs the Participant (as the case may be), as determined by the Company. No amounts awarded or accrued under the Plan
shall be funded, set aside or otherwise segregated prior to payment. The obligation to pay Actual Awards under the Plan shall at all times be an unfunded and unsecured obligation of the Company. Participants shall have the status of general
creditors of the Company or the Affiliate that employs the Participant. 
 4.3 Timing of Payment. Subject to Section 4.6, payment
of each Actual Award shall be made as soon as administratively practicable after vesting, but in any event no later than required to ensure that that no amount paid or to be paid hereunder shall be subject to the provisions of
Section 409A(a)(1)(B) of the Code. 
 4.4 Form of Payment. Each Actual Award shall be paid in cash (or its equivalent) or in
Share-based awards (or a combination thereof) in a single lump sum, except as otherwise determined by the Administrator. To the extent an Actual Award is paid in whole or in part in the form of Share-based award, such awards shall be granted under
an equity incentive plan maintained by the Company for the payment or awarding of Shares. 
 4.5 Payment in the Event of Death. If a
Participant dies before receiving an Actual Award that was scheduled to be paid before his or her death for a prior Performance Period, then the Actual Award shall be paid to the Participant’s designated beneficiary or, if no beneficiary has
been designated, to the administrator or representative of his or her estate, subject to applicable law. Any beneficiary designation or revocation of a prior designation shall be effective only if it is in writing, signed by the Participant and
received by the Company prior to the Participant’s death, subject to applicable law. 
 4.6 Recoupment Policy. All awards granted
under the Plan shall be subject to any Company recoupment or clawback policy, as in effect from time to time, including any required by Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. 

  
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	 	ARTICLE 5.	 ADMINISTRATION 



5.1 Administrator Authority. The Plan shall be administered by the Administrator, subject to Section 5.3, and with respect to any
Company executive officer the Committee shall act as Administrator. The Administrator shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including (without limitation) the power to
(a) determine which Employees shall be granted awards, (b) prescribe the terms and conditions of the awards, (c) interpret the Plan, (d) adopt such procedures and sub-plans as are necessary
or appropriate, (e) adopt rules for the administration, interpretation and application of the Plan and (f) interpret, amend or revoke any such rules. 

5.2 Decisions Binding. All determinations and decisions made by the Administrator, the Board or any delegate of the Administrator
pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons and shall be given the maximum deference permitted by law. 

5.3 Delegation by the Administrator. The Administrator, on such terms and conditions as it may provide, may delegate all or part of its
authority and powers under the Plan to one or more directors and/or employees of the Company, except that the Committee may not delegate its authority and powers under the Plan with respect to Company executive officers. 

 

	 	ARTICLE 6.	 GENERAL PROVISIONS 



6.1 Tax Withholding. The Company or an Affiliate, as applicable, shall withhold all required taxes from an Actual Award, including any
federal, state, local or other taxes. 
 6.2 Application of Section 409A. The provisions of this Plan are intended
to be exempt from the requirements of Section 409A of the Code so that none of the payments to be provided under this Plan will be subject to the additional tax imposed under Section 409A of the Code, and any ambiguities herein will be
interpreted to be so exempt. In no event will the Administrator reimburse Participants for any taxes that may be imposed as result of Section 409A of the Code. 

6.3 No Effect on Employment. Neither the Plan nor any Target Award shall confer upon a Participant any right with respect to continuing
the Participant’s employment with the Company or an Affiliate. Nothing in the Plan shall interfere with or limit in any way the right of the Company or an Affiliate, as applicable, to terminate any Participant’s employment or service at
any time, with or without cause. The Company and its Affiliates expressly reserve the right, which may be exercised at any time and without regard to when during or after a Performance Period such exercise occurs, to terminate any individual’s
employment with or without cause, and to treat him or her without regard to the effect that such treatment might have upon him or her as a Participant. 

  
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 6.4 Participation; No Effect on Other Benefits. No Employee shall have the right to
be selected to receive an award under the Plan, or, having been so selected, to be selected to receive a future award. Except as expressly set forth in a Participant’s individual employment agreement (if any) with the Company or an Affiliate,
any Actual Awards under the Plan shall not be considered for the purpose of calculating any other benefits to which such Participant may be entitled, including (a) any termination, severance, redundancy or end-of-service payments, (b) other bonuses or long-service awards, (c) overtime premiums, (d) pension or retirement benefits or (e) future Base Salary or any other payment to be made by
the Company to such Participant. All Participants expressly acknowledge that there is no obligation on the part of the Company to continue the Plan. Any Actual Awards granted under the Plan are not intended to be compensation of a continuing or
recurring nature, or part of a Participant’s normal or expected compensation, 
 6.5 Successors. All obligations of the Company
and any Affiliate under the Plan, with respect to awards granted hereunder, shall be binding on any successor to the Company and/or such Affiliate, whether the existence of such successor is the result of a merger, consolidation, direct or indirect
purchase of all or substantially all of the business or assets of the Company or such Affiliate, or any similar transaction. 
 6.6
Nontransferability of Awards. No award granted under the Plan shall be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution or to the limited extent provided
in Section 4.5. All rights with respect to an award granted to a Participant shall be available during his or her lifetime only to the Participant. 
  

	 	ARTICLE 7.	 DURATION, AMENDMENT AND TERMINATION 



7.1 Duration of the Plan. The Plan shall remain in effect until terminated pursuant to Section 7.2. 

7.2 Amendment, Suspension or Termination. The Board or the Administrator may amend, suspend or terminate the Plan, or any part thereof,
at any time and for any reason. No award may be granted during any period of suspension or after termination of the Plan. 
  

	 	ARTICLE 8.	 LEGAL CONSTRUCTION 



8.1 Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity
shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

8.2 Requirements of Law. The granting of awards under the Plan shall be subject to all applicable laws, rules and regulations, and to
such approvals by any governmental agencies or national securities markets as may be required. 
 8.3 Captions. Captions are provided
herein for convenience only and shall not serve as a basis for interpretation or construction of the Plan. 
 8.4. Governing
Law. The Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware (except its choice-of-law provisions). 

  
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