Document:

pdugelofferv2

                                                One Penn Plaza, 35th Floor, New York,  NY 10119                             Phone: 212-845-8200 Fax: 212-845-8250   March 11, 2020         Dr. Pravin Dugel      Dear Pravin:    On behalf of IVERIC bio, Inc. (the “Company”), it is my pleasure to extend to you this offer of  employment with the Company. The terms of this offer are contingent on a mutually agreed upon  start date (which is expected to be April 1, 2020) (the “Start Date”) and satisfactory completion of  a background investigation, are as follows:       1.  Employment.  You will be employed to serve on a full-time basis as the Company’s          Executive Vice President, Chief Business & Strategy Officer.  As the Company’s          Executive Vice President, Chief Business & Strategy Officer, you will report to the          Company’s Chief Executive Officer and have the duties and responsibilities consistent          with your position and such other duties as may from time to time be assigned to you by          the Company.  The  Company reserves  the right to change your title and responsibilities          at any time, with or without notice.  You shall perform and discharge faithfully and          diligently your duties and responsibilities  hereunder.  You agree to devote your full          business time, efforts, skill, knowledge, attention and energies to the advancement of the          Company’s business and interests and to the performance of your duties and          responsibilities  as an employee of the Company.  You agree to abide by the rules,          regulations, instructions, personnel practices and policies  of the Company and any          changes to these that may be adopted from time to time by the Company.           Notwithstanding the foregoing, you will be permitted to (a) continue to practice as a          retinal physician up to one full day a week; (b) act as a consultant or advisor for and/or          serve as a member of the board of directors for up to two (2) outside companies; and (c)          provide services to a civic and/or charitable organization, in each case, to the extent that          such activities do not materially interfere with the performance of, or conflict with, your          duties and responsibilities  for the Company.          2.  Base Salary.  Your base salary will be at the annual rate of $500,000, less all applicable          taxes and withholdings, to be paid in accordance with the Company’s regular payroll          practices.  Such base salary may be adjusted from time to time in accordance with normal          business practices and in the sole discretion of the Company.  Your position is classified          as “exempt” according to federal wage law which means you are not eligible for overtime          pay for hours worked in excess of 40 in a given week.      3.  Discretionary Bonus.  Following the end of each calendar year and subject to the          approval of the Company’s Board of Directors (the “Board”), you will be eligible  for a          performance bonus of up to 45% of your annualized base salary, based on your personal          performance and the Company’s performance during the applicable calendar year, as          determined by the Company in its sole discretion.  In any event, you must be an active                                                                             www.ivericbio.com 

 

    employee of the Company on the date the bonus is distributed in order to be eligible for      and to earn any bonus award, as it also serves as an incentive to remain employed by the      Company.  You will be eligible for a pro-rata discretionary bonus for 2020.   4.  Equity.  In connection with the commencement of your employment and as an      inducement to becoming an employee, you will be eligible  to receive an option to      purchase 300,000 shares of the Company’s common stock (the “Option”), subject to      approval by the Board (acting in its sole discretion) and contingent upon your execution      of the corresponding stock option agreement.  The Option would be issued with an      exercise price equal to the fair market value of the Company’s common stock (as      determined by the Board) as of the date of grant (the “Grant Date”) and would vest over      a four-year period, with 25% of the shares vesting on the first anniversary of the Start      Date and the remainder of the shares vesting in equal monthly amounts thereafter until      the fourth anniversary of the Start Date, pursuant to the terms of the stock option      agreement and subject to your continued employment with the Company. In addition, in      connection with the commencement of your employment and as an inducement to      becoming an employee, you will be eligible to receive a restricted stock unit grant for      200,000 shares (the “Joining RSU Grant”) on the Grant Date, subject to approval by the      Board (acting in its sole discretion) and contingent upon your execution of a      corresponding restricted stock unit agreement.  The Joining RSU Grant would vest over      a four-year period, with 25% of the shares vesting on each of the first, second, third and      fourth anniversaries  of the Start Date, pursuant to the terms of the restricted stock unit      agreement and subject to your continued employment with the Company.  Subject to      Board approval each year, the Company grants additional equity awards annually based      on performance.  You would be eligible for an annual performance-based equity award      for 2020 on a pro-rata basis.010+-        5.  Severance.  You will be eligible to receive the severance and change in control benefits      set forth in a separate written agreement with the Company to be executed      contemporaneous herewith.                 6.  Benefits.  You may participate in any and all benefit programs that the Company      establishes and makes generally available to similarly  situated employees from time to      time, provided that you are eligible  under (and subject to all provisions of) the plan      documents that govern those programs.  A summary of current benefits is enclosed with      this letter. Benefits are subject to change at any time in the Company’s sole discretion.   7.  Vacation.  You will be entitled to vacation time as set forth in the Employee Handbook,      as such vacation policy may be amended by the Company from time to time.   8.  Sign On Bonus:.  In connection with the commencement of your employment and as an      inducement to becoming an employee, you will be eligible receive, as a sign-on bonus,      a restricted stock unit grant for 20,000 shares (the “Sign-On RSU Grant”) on the Grant      Date, subject to approval by the Board (acting in its sole discretion) and contingent upon      your execution of a corresponding restricted stock unit agreement.  The Sign-On RSU      Grant would vest with respect to 100% of the shares on the first anniversary of the Start                                       2 

 

    Date, pursuant to the terms of the restricted stock unit agreement and subject to your      continued employment with the Company.  9.  Fair Competition & Confidentiality Agreement.   As a condition of employment, you      will be required to execute the attached Fair Competition & Confidentiality Agreement.    10. No Conflict.  You represent that you are not bound by any employment contract,      restrictive covenant or other restriction preventing you from entering into employment      with or carrying out your responsibilities  for the Company, or which is in any way      inconsistent with the terms of this offer letter.   11. Proof of Legal Right to Work.  You will  be required to complete an Employment      Eligibility Verification Form and submit an original document or documents that      establish identity and employment eligibility  within 3 business days of starting      employment.  Your employment with the Company is contingent on your satisfactory      completion of this requirement.   12. At-Will Employment.  This letter shall not be construed as an agreement, either express      or implied, to employ you for any stated term, and shall in no way alter the Company’s      policy of employment at-will, under which both the Company and you remain free to      end the employment relationship for any reason, at any time, with or without cause or      notice.  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 by a written agreement signed by      you and the Company’s Chief Executive Officer that expressly states the intention to      modify the at-will nature of your employment.  Similarly,  nothing in this letter shall be      construed as an agreement, either express or implied, to pay you any compensation or      grant you any benefit beyond the end of your employment with the Company.  This letter      supersedes all prior understandings, whether written or oral, relating to the terms of your      employment.   13. Background Investigation.  The required notices and forms for our background      investigation are enclosed herewith. You must submit a completed form with your signed      offer letter.  Employment is contingent upon successful completion of the background      check.                       [remainder of page intentionally blank]                                                                               3 

 

        If you decide to accept this offer, and agree to the employment terms set forth in this letter, please  sign the letter in the space provided below, together with the enclosed documents, and return them  to me.  If you do not accept this offer by Thursday, March 19, 2020, the offer will be deemed  withdrawn.                                         Sincerely,                                          By: /s/ Amy R. Sheehan                                                    Amy R. Sheehan                                                    Senior Vice President & Chief HR Officer    The foregoing letter correctly sets forth the terms of my at-will employment with IVERIC bio,  Inc., which I hereby accept.  Nothing contained in this letter abrogates the at-will status of my  proposed employment.  I am not relying on any representations other than those set forth above.    /s/ Pravin Dugel                          _3/11/2020______________   Pravin Dugel, MD                         Date                                           4pdugelseveranceagreement

              March 11, 2020       Dr. Pravin Dugel   c/o IVERIC bio, Inc.   One Penn Plaza, Suite 3520   New York, NY 10119       Dear Pravin          The board of directors (the “Board”) of IVERIC bio, Inc. (the “Company”) has provided for   the following severance benefits to be provided to you in the event of your termination of   employment with the Company, on the terms and conditions set forth herein.            1.              Severance.          (a)       Subject to Section 1(b), if your employment is terminated (1) at any time by the Company  without Cause or by you for Good Reason (as such terms are herein defined) or (2) within one  year following a Change in Control Event (as defined in the Company’s 2013 Stock Incentive  Plan), by the Company, or its successor, without Cause or by you for Good Reason, the  Company or its successor will (i) pay you in a lump sum on the Payment Date (as herein defined)  (A) an amount equal to twelve (12) months of your then-current base salary, less standard  employment-related withholdings and deductions and (B) an amount equal to a pro-rated portion  of your then-current target bonus for the year in which your employment terminates, provided,  however, that if your employment is terminated under the circumstances  described in (2) of this  Section 1(a), the Company or its successor will instead pay you an amount equal to your then- current target bonus for the year in which your employment terminates, in either case, without  regard to whether the performance goals with respect to such target bonus have been established  or met and less standard employment-related withholdings and deductions, and (ii) provided you  elect to continue your and your eligible dependents’ participation in the Company’s medical and  dental benefit plans pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1986  (“COBRA”), reimburse you for the monthly premium to continue such coverage for the lesser of  the twelve (12) full calendar months immediately following the month in which the termination  of your employment occurs and the end of the calendar month in which you become eligible to  receive group health plan coverage under another employee benefit plan. Notwithstanding the  foregoing, if the reimbursement  of monthly premiums  would otherwise violate the  nondiscrimination rules or cause the reimbursement of claims to be taxable under the Patient  Protection and Affordable Care Act of 2010, together with the Health Care and Education  Reconciliation Act of 2010 (collectively,  the “Healthcare Reform Act”) or Section 105(h) of the  Internal Revenue Code of 1986, as amended (the “Code”), these payments shall be treated as  taxable payments to you and you shall be subject to imputed income tax treatment to the extent  necessary to eliminate any discriminatory treatment or taxation under the Act or Section 105(h).                                          IVERIC bio         1 Penn Plaza Suite 3520 New York, NY 10119 • 212-845-8200 • www.ivericbio.com 

 

           (b)      Notwithstanding the foregoing, (i) the Company shall not be obligated to pay you   the severance payments provided for herein unless you have timely executed (and not revoked) a   separation agreement in a form to be provided by the Company. Such separation agreement must   be executed and become binding and enforceable within sixty (60) calendar days after the   effective date of your termination of employment (such 60th day, the “Payment Date”); provided  however, that if the 60th day following the date of termination occurs in the next calendar year  following the date of termination, then the Payment Date shall be no earlier than January 1 of  such following calendar year and (ii) the severance payments provided for herein shall be  reduced by any payments to which you may be entitled as a result of any applicable laws  regarding plant closings or mass layoffs which require notice prior to termination or pay or  benefits following termination, such that the amount of the payments made to you pursuant to  such laws (whether such payments are made to you during any notice period prior to termination  (regardless of whether the Company requires you to work during such notice period) or any  period following termination), will reduce the severance payments otherwise due to you under  Section 1(a).                 (c)        For purposes hereof, “Cause” shall mean that: (i) you failed to attempt in good  faith, refused or willfully neglected to perform and discharge your material  duties and  responsibilities; (ii) you have been convicted of, or pled nolo contendere to, a felony or other  crime involving fraud or moral turpitude; (iii) you breached your fiduciary duty of loyalty to the  Company, or acted fraudulently or with material  dishonesty in discharging your duties to the  Company; (iv) you undertook an intentional act or omission of misconduct that materially  harmed or was reasonably likely to materially harm the business, interests, or reputation of the  Company; (v) you materially breached any material provision of this letter or any other  agreement with the Company; or (vi) you materially breached any material provision of any  Company code of conduct or ethics policy. Notwithstanding the foregoing, “Cause” shall not be  deemed to have occurred unless:  (A) the Company provides you with written notice that it  intends to terminate your employment hereunder for one of the grounds set forth in subsections  (i), (v) or (vi) within sixty (60) days of such reason(s) occurring, (B) if such ground is capable of  being cured, you have failed to cure such ground within a period of thirty (30) days from the date  of such written notice, and (C) the Company terminates your employment within six (6) months  from the date that Cause first occurs.                 (d)      For purposes hereof, “Good Reason” shall mean, without your written consent:  (i) any change in your position or reporting relationship with the Company that diminishes in any  material respect your authority, duties or responsibilities;  (ii) any material reduction in your base  compensation; (iii) a material change in the primary geographic location at which services are to  be performed by you (unless the new location is closer to your primary residence than the prior  location); or (iv) a material breach of any provision hereof by the Company or any successor or  assign. Notwithstanding the foregoing, “Good Reason” shall  not be deemed to have occurred  unless: (A) you provide the Company with written notice that you intend to terminate your  employment hereunder for one of the grounds set forth in subsections (i), (ii), (iii) or (iv) of the  immediately preceding sentence within sixty (60) days of such reason(s) occurring, (B) if such  ground is capable of being cured, the Company has failed to cure such ground within a period of  thirty (30) days from the date of such written notice, and (C) you terminate your employment  within six (6) months from the date that Good Reason first occurs. For purposes of clarification,                                      IVERIC bio         1 Penn Plaza Suite 3520 New York, NY 10119 • 212-845-8200 • www.ivericbio.com 

 

     the above-listed conditions shall apply separately to each occurrence of Good Reason and failure   to adhere to such conditions in the event of Good Reason shall not disqualify you from asserting   Good Reason for any subsequent occurrence of Good Reason.           2.              Equity Acceleration. If your employment with the Company, or its successor, is   terminated by the Company or such successor without Cause or by you for Good Reason within   the one (1) year period following a Change in Control Event, then the then-unvested portion of   any equity awards held by you that vest solely based on the passage of time shall immediately   vest in full and become exercisable or free from forfeiture or repurchase, as applicable, as of the   date of such termination.             3.              Modified Cutback.                (a)       Notwithstanding any other provision of this letter agreement, the letter agreement   evidencing your offer of employment with us, or any other agreements between you and us,   except as set forth in Section 3(b) hereof, in the event that the Company undergoes a “Change in  Ownership or Control” (as defined below), the Company shall not be obligated to provide you a  portion of any “Contingent Compensation Payments” (as defined below) that you would  otherwise be entitled to receive to the extent necessary to eliminate any “excess parachute  payments” (as defined in Section 280G(b)(l) of the Code) for you. For purposes of this  Section 3(a), the Contingent Compensation Payments so eliminated shall be referred to as the  “Eliminated Payments” and the aggregate amount (determined in accordance with Treasury  Regulation Section 1.280G-1, Q/A-30 or any successor provision) of the Contingent  Compensation Payments so eliminated shall be referred to as the “Eliminated Amount.”                 (b)      Notwithstanding the provisions of Section 3(a), no such reduction in Contingent  Compensation Payments shall be made if (1) the Eliminated Amount (computed without regard  to this sentence) exceeds (2) 100% of the aggregate present value (determined in accordance  with Treasury  Regulation Section 1.280G-1, Q/A-31 and Q/A-32 or any successor provisions) of  the amount of any additional taxes that would be incurred by you if the Eliminated Payments  (determined without regard to this sentence) were paid to you (including, state and federal  income taxes on the Eliminated Payments, the excise tax imposed by Section 4999 of the Code  payable with respect to all of the Contingent Compensation Payments in excess of your “base  amount” (as defined in Section 280G(b)(3) of the Code), and any withholding taxes). The  override of such reduction in Contingent Compensation Payments pursuant to this  Section 3(b) shall be referred to as a “Section 3(b) Override.” For purpose of this paragraph, if  any federal or state income taxes would be attributable to the receipt of any Eliminated Payment,  the amount of such taxes shall be computed by multiplying the amount of the Eliminated  Payment by the maximum combined federal and state income tax rate provided by law.                 (c)       For purposes of this Section 3 the following terms shall have the following  respective meanings:                       (i)      “Change in Ownership or Control” shall mean a change in the ownership or        effective control of the Company or in the ownership of a substantial portion of the assets        of the Company determined in accordance with Section 280G(b)(2) of the Code.                                      IVERIC bio         1 Penn Plaza Suite 3520 New York, NY 10119 • 212-845-8200 • www.ivericbio.com 

 

                                 (ii)   “Contingent Compensation Payment” shall mean any payment (or benefit) in         the nature of compensation that is made or made available (under this Agreement or         otherwise) to a “disqualified individual” (as defined in Section 280G(c) of the Code) and         that is contingent (within the meaning of Section 280G(b)(2)(A)(i) of the Code) on a         Change in Ownership or Control of the Company.                   (d)      Any payments or other benefits otherwise due to you following a Change in   Ownership or Control that could reasonably be characterized (as determined by the Company) as   Contingent Compensation Payments (the “Potential Payments”) shall not be made until the dates   provided for in this Section 3(d). Within 30 days after each date on which you first become   entitled to receive (whether or not then due) a Contingent Compensation Payment relating to   such Change in Ownership or Control, the Company shall determine and notify you (with   reasonable detail regarding the basis for its determinations) (1) which Potential Payments  constitute Contingent Compensation Payments, (2) the Eliminated Amount and (3) whether the  Section 3(b) Override is applicable. Within 30 days after delivery of such notice to you, you shall  deliver a response to the Company (the “Executive Response”) stating either (A) that you agree  with the Company’s determination pursuant to the preceding sentence or (B) that you disagree  with such determination, in which case you shall set forth (x) which Potential Payments should  be characterized as Contingent Compensation Payments, (y) the Eliminated Amount, and  (z) whether the Section 3(b) Override is applicable.  In the event that you fail to deliver an  Executive Response on or before the required date, the Company’s initial determination shall be  final. If you state in the Executive Response that you agree with the Company’s determination,  the Company shall make the Potential Payments to you within three business days following  delivery to the Company of the Executive Response (except for any Potential Payments which  are not due to be made until after such date, which Potential Payments shall be made on the date  on which they are due). If you state in the Executive Response that you disagree with the  Company’s determination, then, for a period of 60 days following delivery of the Executive  Response, you and the Company shall  use good faith efforts to resolve  such dispute. If such  dispute is not resolved within such 60-day period, such dispute shall be settled exclusively  by  arbitration in New York, New York, in accordance with the rules of the American Arbitration  Association then in effect. Judgment may be entered on the arbitrator’s award in any court  having jurisdiction. The Company shall, within three business days following delivery to the  Company of the Executive Response, make to you those Potential Payments as to which there is  no dispute between the Company and you regarding whether they should be made (except for  any such Potential Payments which are not due to be made until after such date, which Potential  Payments shall be made on the date on which they are due). The balance of the Potential  Payments shall be made within three business days following the resolution of such dispute.                 (e)       The Contingent Compensation Payments to be treated as Eliminated Payments  shall be determined by the Company by determining the “Contingent Compensation Payment  Ratio” (as defined below) for each Contingent Compensation Payment and then reducing the  Contingent Compensation Payments in order beginning with the Contingent Compensation  Payment with the highest Contingent Compensation Payment Ratio. For Contingent  Compensation Payments with the same Contingent Compensation Payment Ratio, such  Contingent Compensation Payment shall be reduced based on the time of payment of such                                      IVERIC bio         1 Penn Plaza Suite 3520 New York, NY 10119 • 212-845-8200 • www.ivericbio.com 

 

   Contingent Compensation Payments with amounts having later payment dates being reduced  first. For Contingent Compensation Payments with the same Contingent Compensation Payment  Ratio and the same time of payment, such Contingent Compensation Payments shall be reduced  on a pro rata basis (but not below zero) prior to reducing Contingent Compensation Payment  with a lower Contingent Compensation Payment Ratio. The term “Contingent Compensation  Payment Ratio” shall mean a fraction the numerator of which is the value of the applicable  Contingent Compensation Payment that must be taken into account by you for purposes of  Section 4999(a) of the Code, and the denominator of which is the actual amount to be received  by you in respect of the applicable Contingent Compensation Payment. For example, in the case  of an equity grant that is treated as contingent on the Change in Ownership or Control because  the time at which the payment is made or the payment vests is accelerated, the denominator shall  be determined by reference to the fair market value of the equity at the acceleration date, and not  in accordance with the methodology for determining the value of accelerated payments set forth  in Treasury Regulation Section 1.280G-1Q/A-24(b) or (c)).           (f)         The provisions  of this Section 3 are intended to apply to any and all payments or  benefits available to you under this letter agreement or any other agreement or plan of the  Company under which you receive Contingent Compensation Payments.              4.              Miscellaneous.              (a)       Code Section 409A. The intent of the parties is that payments and benefits under  this letter comply with, or be exempt from, Internal Revenue Code Section 409A and the  regulations and guidance promulgated thereunder (collectively  “Code Section 409A”).  Accordingly, if any provision of this letter is ambiguous, such that one interpretation would  subject a payment or benefit to the excise tax imposed by Code Section 409A and an alternative  interpretation would not so subject the payment or benefit, the parties intend the interpretation  that would not so subject the payment or benefit to apply. With regard to any provision herein  that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by  Code Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to  liquidation or exchange for another benefit, (ii) the amount of expenses eligible for  reimbursement, or in-kind benefits, provided during any taxable year shall not affect the  expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable  year, provided that this clause (ii) shall not be violated with regard to expenses reimbursed under  any arrangement covered by Section 105(a) of the Code solely  because such expenses are subject  to a limit related to the period the arrangement is in effect, and (iii) such payments shall be made  on or before the last day of your taxable year following the taxable year in which the expense  occurred, provided that any tax gross-ups may be reimbursed by the end of the calendar year  following the calendar year in which such taxes are remitted to the taxing authorities. For  purposes of Code Section 409A, each payment hereunder shall be treated as a separate payment  and your right to receive any installment payments pursuant to this Agreement shall be treated as  a right to receive a series of separate and distinct payments. In no event may you, directly or  indirectly, designate the calendar year of any payment to be made under this letter that is  considered nonqualified deferred compensation. Termination  of employment as used herein shall  mean separation from service within the meaning of Code Section 409A. In the event at the time  of any separation from service you are a “specified employee” within the meaning of Code                                     IVERIC bio        1 Penn Plaza Suite 3520 New York, NY 10119 • 212-845-8200 • www.ivericbio.com 

 

     Section 409A, any deferred compensation subject to Code Section 409A payable as a result of   such termination shall not be paid prior to the earlier of six (6) months after such termination and   your death and shall be paid immediately thereafter.                  (b)      Governing Law. This letter shall be governed by and construed in accordance with   the laws of the State of New York (without reference to the conflicts of laws provisions thereof).  Any action, suit, or other legal proceeding which is commenced to resolve any matter arising  under or relating to any provision of this letter shall be commenced only in a court of the State of  New York (or, if appropriate, a federal court located within New York), and the Company and  you each consents to the jurisdiction of such a court. The Company and you each hereby  irrevocably waive any right to a trial by jury in any action, suit or other legal proceeding arising  under or relating to any provision  hereof.                   (c)       Conflict; Amendment: Counterparts. This letter agreement sets forth the   Company’s sole obligation, subject to the terms and conditions set forth herein, to provide   severance benefits to you. The severance benefits set forth in this letter agreement are therefore   in lieu of, and not in addition to, any severance benefits that may be described in the Offer   Letter, or any other agreement or arrangement between you and us, including the Prior   Agreement. Except as modified hereby, the terms of the Offer Letter remain in full force and  effect. The Prior Agreement is superseded by this agreement and shall be of no further force or  effect. This agreement may only be modified in a document signed by both the Company and   you. This agreement may be executed in counterparts, each of which will be deemed an original,   but all of which will be deemed one and the same instrument.                                  [Remainder of page intentionally left blank]                                                                    IVERIC bio         1 Penn Plaza Suite 3520 New York, NY 10119 • 212-845-8200 • www.ivericbio.com 

 

         If the provisions  of this agreement are acceptable to you, please sign and date this  agreement below and return the signed and dated agreement to me on or before Thursday, March  19, 2020.                                              Sincerely,                                                                                   IVERIC bio, Inc.                                                                                   By:  /s/ Amy R. Sheehan                                         Amy R. Sheehan                                         Senior Vice President & Chief HR Officer                                                                ACCEPTED AND AGREED:                                                                /s/ Pravin Dugel                          Pravin Dugel                                                                         Date: 3/11/2020                                                                    IVERIC bio        1 Penn Plaza Suite 3520 New York, NY 10119 • 212-845-8200 • www.ivericbio.com

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