Document:

ortx-ex1015_424.htm

Exhibit 10.15

 

EMPLOYMENT AGREEMENT

This Employment Agreement (“Agreement”) is made by and between Orchard Therapeutics plc (the “Parent”), Orchard Therapeutics North America, a California corporation (the “U.S. Subsidiary”), and Frank Thomas (the “Executive”), and is effective upon the date it is fully executed (the “Effective Date”).  The Parent, the U.S. Subsidiary, and their respective subsidiaries and other affiliates are collectively referred to herein as the “Company,” and the duties of the Company set forth in this Agreement may be discharged by any entity within that definition.  Except with respect to the Equity Documents and subject to Section 10 below, this Agreement fully supersedes and replaces in all respects all prior agreements between the parties regarding the subject matter herein, including without limitation (i) the offer letter between Orchard Therapeutics Limited (a subsidiary of the Parent) and the Executive dated January 12, 2018 and (ii) any other offer letter, employment agreement or severance agreement between the Executive and any of the parties or their affiliated entities.   In the interest of clarity, any intercompany transfer shall not be deemed a termination of the employment relationship unless otherwise specified at the time of the transfer.  

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1.Employment.

(a)Term.  The Company will employ the Executive on the terms and condition set forth herein, commencing as of the Effective Date and continuing in effect until terminated by either party in accordance with this Agreement (the “Term”).  The U.S. Subsidiary will maintain and distribute employment-related records.  The Executive’s employment with the Company will be “at will,” meaning that the Executive’s employment may be terminated by the Company or the Executive at any time and for any reason subject to the terms of this Agreement.

(b)Position and Duties.  During the Term, the Executive shall serve as the Chief Financial Officer and Chief Business Officer of the Company, and shall have powers and duties that may from time to time be prescribed by the Company’s Chief Executive Officer (the “CEO”) or another authorized executive.  In addition, the Executive shall serve on any boards of directors as may be requested by the Company or in any other capacity as may be requested by the Company.  The Executive shall devote his full working time and efforts to the business and affairs of the Company.  Notwithstanding the foregoing, the Executive may serve on up to two other boards of directors, with the prior written approval of the Board of Directors of the Parent (the “Board”), or engage in religious, charitable or other community activities as long as such services and activities are disclosed to the Board and do not interfere with the Executive’s performance of his duties to the Company as provided in this Agreement.  The Executive reaffirms that he has no contractual commitments or other legal obligations that would prohibit him from fully performing his duties for the Company. 

2.Compensation and Related Matters.

(a)Base Salary.  During the Term, the Executive’s base salary shall be paid at the rate of $430,090 per year, which is subject to review and redetermination by the Board or the Compensation Committee of the Board (the “Compensation Committee”).  The base salary in effect at any given time is referred to herein as “Base Salary.”  The Base Salary shall be payable in a manner that is consistent with the Company’s usual payroll practices for its U.S. senior executives.

(b)Incentive Compensation.  During the Term, the Executive shall be eligible to receive cash incentive compensation as determined by the Board or the Compensation Committee, from time to time.  The Executive’s target annual incentive compensation shall be 40 percent of his Base Salary, as may be redetermined from time to time (the “Target Bonus”).  The actual amount of the Executive’s annual incentive compensation, if any, shall be determined in the sole discretion of the Board or the Compensation Committee and shall be subject to any applicable bonus plan, as may be amended from time to time.  Any such incentive compensation shall be paid no later than March 15 of the year following the year to which it relates.  Except as otherwise provided herein, any bonus will be earned pursuant to the Company’s bonus plan for senior executives, as in effect from time to time.

(c)Expenses.  The Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by him during the Term in performing services hereunder, in accordance with the policies and procedures then in effect and established by the Company for its U.S. senior executive officers.

(d)Other Benefits.  During the Term, the Executive shall be entitled to continue to participate in or receive benefits under the Company’s employee benefit plans in effect from time to time for its U.S. employees, including paid sick time under applicable law, subject to the terms of such plans and to the Company’s ability to amend, modify, replace or terminate such plans and programs.  

(e)Vacations.  During the Term, the Executive shall be entitled to accrue up to 20 paid vacation days in each year, which shall be accrued ratably and must be used in accordance with the Company’s vacation policy for U.S. employees, as in effect from time to time.  Notwithstanding the foregoing, in the event the Company eliminates or modifies its vacation accrual policy, the Executive will be entitled to the benefits set forth in the Company’s applicable paid time off policy for its U.S. executives, as may be in effect from time to time.  The Executive shall also be entitled to all paid holidays given by the Company to its U.S. executives, including two (2) floating holidays to be used at the Executive’s discretion in accordance with the Company’s U.S. holiday policy, as in effect from time to time.  For the avoidance of doubt, any unused floating holidays will be forfeited at the end of each calendar year.  

(f)Equity.  The equity awards held by the Executive shall be governed by the terms and conditions of the Company’s applicable equity incentive plan(s) and the applicable award agreement(s) governing the terms of such equity awards held by the Executive (collectively, the “Equity Documents”); provided, however, and notwithstanding anything to the contrary in the Equity Documents, Section 6(a)(ii) of this Agreement shall apply in the event of a termination by the Company without Cause or by the Executive for Good Reason in either event within the Change in Control Period (as such terms are defined below).

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3.Termination.  During the Term, the Executive’s employment hereunder may be terminated without any breach of this Agreement under the following circumstances:

(a)Death.  The Executive’s employment hereunder shall terminate upon his death.

(b)Disability.  The Company may terminate the Executive’s employment if he is disabled and unable to perform the essential functions of the Executive’s then existing position or positions under this Agreement with or without reasonable accommodation for a period of 180 days (which need not be consecutive) in any 12-month period.  If any question shall arise as to whether during any period the Executive is disabled so as to be unable to perform the essential functions of the Executive’s then existing position or positions with or without reasonable accommodation, the Executive may, and at the request of the Company shall, submit to the Company a certification in reasonable detail by a physician selected by the Company to whom the Executive or the Executive’s guardian has no reasonable objection as to whether the Executive is so disabled or how long such disability is expected to continue, and such certification shall for the purposes of this Agreement be conclusive of the issue.  The Executive shall cooperate with any reasonable request of the physician in connection with such certification.  If such question shall arise and the Executive shall fail to submit such certification, the Company’s determination of such issue shall be binding on the Executive.  Nothing in this Section 3(b) shall be construed to waive the Executive’s rights, if any, under existing law including, without limitation, the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities Act, 42 U.S.C. §12101 et seq.  

(c)Termination by the Company for Cause.  The Company may terminate the Executive’s employment hereunder for Cause.  For purposes of this Agreement, “Cause” shall mean: (i) the Executive’s arrest for or conviction of a crime; (ii) the Executive’s material breach of this Agreement or other obligation to the Company; (iii) the Executive’s gross or willful negligence in performing his duties or material failure to perform his duties; (iv) the Executive’s willful failure or refusal to accept, acknowledge or carry out the Company’s lawful and reasonable written direction; or (v) the Executive’s conduct which is unlawful, fraudulent, dishonest, creates a conflict of interest with the Company, causes material damage to the Company or materially interferes with the Company’s business operations.  

(d)Termination without Cause.  The Company may terminate the Executive’s employment hereunder at any time without Cause.  Any termination by the Company of the Executive’s employment under this Agreement which does not constitute a termination for Cause under Section 3(c) and does not result from the death or disability of the Executive under Section 3(a) or (b) shall be deemed a termination without Cause.

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(e)Termination by the Executive.  The Executive may terminate his employment hereunder at any time for any reason, including but not limited to Good Reason.  For purposes of this Agreement, “Good Reason” shall mean that the Executive has complied with the “Good Reason Process” (hereinafter defined) following the occurrence of any of the following events without the Executive’s express consent: (i) a material diminution in the Executive’s responsibilities, authority or duties, provided that any organizational change that results only in a change in the Executive’s reporting structure prior to a Change in Control shall not constitute a material diminution in the Executive’s responsibilities, authority or duties; (ii) a material diminution in the Executive’s Base Salary except for across-the-board salary reductions based on the Company’s financial performance similarly affecting all or substantially all senior management employees of the Company; (iii) a material change in the geographic location at which the Executive provides services to the Company; or (iv) the material breach of this Agreement by the Company.  “Good Reason Process” shall mean that (i) the Executive reasonably determines in good faith that a “Good Reason” condition has occurred; (ii) the Executive notifies the Company in writing of the first occurrence of the Good Reason condition within 60 days of the first occurrence of such condition; (iii) the Executive cooperates in good faith with the Company’s efforts, for a period not less than 30 days following such notice (the “Cure Period”), to remedy the condition; (iv) notwithstanding such efforts, the Good Reason condition continues to exist; and (v) the Executive terminates his employment within 60 days after the end of the Cure Period.  If the Company cures the Good Reason condition during the Cure Period, Good Reason shall be deemed not to have occurred.

If the Executive’s employment with the Company is terminated for any reason, the Company shall pay or provide to the Executive (or to his authorized representative or estate) (i) any Base Salary earned through the Date of Termination, unpaid expense reimbursements (subject to, and in accordance with, Section 2(c) of this Agreement) and unused vacation that accrued through the Date of Termination on or before the time required by law but in no event more than 30 days after the Executive’s Date of Termination; and (ii) any vested benefits the Executive may have under any employee benefit plan of the Company through the Date of Termination, which vested benefits shall be paid and/or provided in accordance with the terms of such employee benefit plans (collectively, the “Accrued Obligations”).

4.Notice and Date of Termination.  

(a)Notice of Termination.  Except for termination as specified in Section 3(a), any termination of the Executive’s employment by the Company or any such termination by the Executive shall be communicated by written Notice of Termination to the other party hereto.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon.

(b)Date of Termination.  “Date of Termination” shall mean:  (i) if the Executive’s employment is terminated by his death, the date of his death; (ii) if the Executive’s employment is terminated on account of disability under Section 3(b) or by the Company for Cause under Section 3(c), the date on which Notice of Termination is given; (iii) if the Executive’s employment is terminated by the Company under Section 3(d), the date on which a Notice of Termination is given, or another date specified in the Notice of Termination; (iv) if the Executive’s employment is terminated by the Executive under Section 3(e) other than for Good Reason, 45 days after the date on which a Notice of Termination is given, and (v) if the Executive’s employment is terminated by the Executive under Section 3(e) for Good Reason, the date on which a Notice of Termination is given after the end of the Cure Period.  Notwithstanding the foregoing, in the event that the Executive gives a Notice of Termination to 

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the Company, the Company may unilaterally accelerate the Date of Termination and such acceleration shall not result in a termination by the Company for purposes of this Agreement.

5.Compensation Upon Termination by the Company without Cause or by the Executive for Good Reason Outside the Change in Control Period.  During the Term, if the Executive’s employment is terminated by the Company without Cause as provided in Section 3(d), or the Executive terminates his employment for Good Reason as provided in Section 3(e), each outside of the Change in Control Period (as defined below), then the Company shall pay the Executive his Accrued Obligations.  In addition, subject to (i) the Executive signing a separation agreement and release in a form and manner satisfactory to the Company, which shall include, without limitation, a general release of claims against the Company and all related persons and entities, a reaffirmation of all of the Executive’s Continuing Obligations (as defined below), and, in the Company’s sole discretion, a one-year post-employment noncompetition agreement, and shall provide that if the Executive breaches any of the Continuing Obligations, all payments of the Severance Amount shall immediately cease (the “Separation Agreement and Release”), and (ii) the Separation Agreement and Release becoming irrevocable, all within 60 days after the Date of Termination (or such shorter period as set forth in the Separation Agreement and Release), which shall include a seven (7) business day revocation period:

(a)the Company shall pay the Executive an amount equal to nine (9) months of the Executive’s Base Salary (the “Severance Amount”), provided in the event the Executive is entitled to any payments pursuant to the Restrictive Covenants Agreement, the Severance Amount received in any calendar year will be reduced by the amount the Executive is paid in the same such calendar year pursuant to the Restrictive Covenants Agreement (the “Restrictive Covenants Agreement Setoff”); and

(b)notwithstanding anything to the contrary in the Company’s bonus plan for senior executives, as in effect from time to time, the Company shall pay the Executive’s annual cash incentive compensation for the year prior to the year in which the Date of Termination occurs, but only to the extent that it (i) has not already been paid, and (ii) otherwise would have been earned if the Executive had remained employed through the payment date (the “Prior Year Bonus”); and 

(c)if the Executive was participating in the Company’s group health plan immediately prior to the Date of Termination and elects COBRA health continuation, then the Company shall pay the monthly employer COBRA premium for the same level of group health coverage as in effect for the Executive on the Date of Termination until the earliest of the following: (i) the nine (9) month anniversary of the Date of Termination; (ii) the Executive’s eligibility for group health coverage through other employment; or (iii) the end of the Executive’s eligibility under COBRA for continuation coverage for health care.  Notwithstanding the foregoing, if the Company determines at any time that its payments pursuant to this paragraph may be taxable income to the Executive, it may convert such payments to payroll payments directly to the Executive on the Company’s regular payroll dates, which shall be subject to tax-related deductions and withholdings; and

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(d)the Company shall pay up to $20,000 to an outplacement services provider to be selected by the Company for the purpose of providing outplacement services to the Executive; provided that the Executive begins utilizing such services no later than one (1) month after the effective date of the Separation Agreement and Release.  If the Executive informs the Company prior to signing the Separation Agreement and Release that he wishes to receive compensation in lieu of the outplacement services, then the Company will directly pay the Executive an amount equal to $15,000, which shall be paid in a lump sum at the same time that the first payment of the Severance Amount is made.

Except for the Prior Year Bonus (if applicable), the amounts payable under this Section 5 shall be paid out in substantially equal installments in accordance with the Company’s payroll practice over nine (9) months commencing within 60 days after the Date of Termination; provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, the Severance Amount shall begin to be paid in the second calendar year by the last day of such 60-day period; provided, further, that the initial payment shall include a catch-up payment to cover amounts retroactive to the day immediately following the Date of Termination.  The Prior Year Bonus (if applicable) shall be paid out in a lump sum when such amount is actually determined and annual bonuses are paid out to the U.S Subsidiary’s executives for the relevant period, provided that the Prior Year Bonus (if applicable) shall be paid no later than March 15 of the year in which the Date of Termination occurs.  Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2).

6.Compensation Upon Termination by the Company without Cause or by the Executive for Good Reason within the Change in Control Period.  The provisions of this Section 6 shall apply in lieu of, and expressly supersede, the provisions of Section 5 regarding severance pay and benefits upon a termination by the Company without Cause or by the Executive for Good Reason if such termination of employment occurs 12 months after the occurrence of the first event constituting a Change in Control of the Parent (such period, the “Change in Control Period”).  The provisions under this Section 6 shall terminate and be of no further force or effect beginning 12 months after the occurrence of a Change in Control of the Parent.

(a)Change in Control of the Parent.  If during the Change in Control Period the Executive’s employment is terminated by the Company without Cause as provided in Section 3(d) or the Executive terminates his employment for Good Reason as provided in Section 3(e), then, subject to the signing of the Separation Agreement and Release by the Executive and the Separation Agreement and Release becoming irrevocable, all within 60 days after the Date of Termination (or such shorter period as set forth in the Separation Agreement and Release), 

(i)the Company shall pay the Executive a lump sum in cash in an amount equal to the sum of (A) 12 months of the Executive’s current Base Salary (or the Executive’s Base Salary in effect immediately prior to the Change in Control of the Parent, if higher) plus (B) one (1) times the Executive’s Target Bonus (the “Change in Control Payment”), provided the Change in Control Payment shall be reduced by the amount of the Restrictive Covenants Agreement Setoff, if applicable, paid or to be paid in the same calendar year; and

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(ii)notwithstanding anything to the contrary in any applicable option agreement or other stock-based award agreement, all stock options and other stock-based awards held by the Executive (the “Equity Awards”) shall immediately accelerate and become fully exercisable or nonforfeitable as of the later of (i) the Date of Termination or (ii) the Effective Date of the Separation Agreement and Release (the “Accelerated Vesting Date”); provided that any termination or forfeiture of the unvested portion of such Equity Awards that would otherwise occur on the Date of Termination in the absence of this Agreement will be delayed until the Effective Date of the Separation Agreement and Release and will only occur if the vesting pursuant to this subsection does not occur due to the absence of the Separation Agreement and Release becoming fully effective within the time period set forth therein.  Notwithstanding the foregoing, no additional vesting of the Equity Awards shall occur during the period between the Executive’s Date of Termination and the Accelerated Vesting Date; and

(iii)if the Executive was participating in the Company’s group health plan immediately prior to the Date of Termination and elects COBRA health continuation, then the Company shall pay the monthly employer COBRA premium for the same level of group health coverage as in effect for the Executive on the Date of Termination until the earliest of the following: (i) the 12 month anniversary of the Date of Termination; (ii) the Executive’s eligibility for group health coverage through other employment; or (iii) the end of the Executive’s eligibility under COBRA for continuation coverage for health care.  Notwithstanding the foregoing, if the Company determines at any time that its payments pursuant to this paragraph may be taxable income to the Executive, it may convert such payments to payroll payments directly to the Executive on the Company’s regular payroll dates, which shall be subject to tax-related deductions and withholdings; and

(iv)the Company shall pay up to $20,000 to an outplacement services provider to be selected by the Company for the purpose of providing outplacement services to the Executive; provided that the Executive begins utilizing such services no later than one (1) month after the effective date of the Separation Agreement and Release.  If the Executive informs the Company prior to signing the Separation Agreement and Release that he wishes to receive compensation in lieu of the outplacement services, then the Company will directly pay the Executive an amount equal to $15,000.

The amounts payable under this Section 6(a) shall be paid or commence to be paid within 60 days after the Date of Termination; provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, such payment shall be paid or commence to be paid in the second calendar year by the last day of such 60-day period.

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(b)Additional Limitation.

(i)Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment or distribution to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Code and the applicable regulations thereunder (the “Aggregate Payments”), would be subject to the excise tax imposed by Section 4999 of the Code, then the Aggregate Payments shall be reduced (but not below zero) so that the sum of all of the Aggregate Payments shall be $1.00 less than the amount at which the Executive becomes subject to the excise tax imposed by Section 4999 of the Code; provided that such reduction shall only occur if it would result in the Executive receiving a higher After Tax Amount (as defined below) than the Executive would receive if the Aggregate Payments were not subject to such reduction.  In such event, the Aggregate Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with the Aggregate Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 280G of the Code:  (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits; provided that in the case of all the foregoing Aggregate Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c).

(ii)For purposes of this Section 6(b), the “After Tax Amount” means the amount of the Aggregate Payments less all federal, state, and local income, excise and employment taxes imposed on the Executive as a result of the Executive’s receipt of the Aggregate Payments.  For purposes of determining the After Tax Amount, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual taxation in each applicable state and locality, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. 

(iii)The determination as to whether a reduction in the Aggregate Payments shall be made pursuant to Section 6(b)(i) shall be made by a nationally recognized accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the Date of Termination, if applicable, or at such earlier time as is reasonably requested by the Company or the Executive.  Any determination by the Accounting Firm shall be binding upon the Company and the Executive.

(c)Definitions.  For purposes of this Section 6, a “Change in Control of the Parent” shall mean a “Sale Event” as defined in Orchard Therapeutics plc 2018 Share Option and Incentive Plan, but only to the extent such Sale Event is also a “change in control event” within the meaning of Section 409A of the Code and the regulations promulgated thereunder.

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7.Section 409A.

(a)Anything in this Agreement to the contrary notwithstanding, if at the time of the Executive’s separation from service within the meaning of Section 409A of the Code, the Company determines that the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Executive becomes entitled to under this Agreement or otherwise on account of the Executive’s separation from service would be considered deferred compensation otherwise subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one day after the Executive’s separation from service, or (B) the Executive’s death.  If any such delayed cash payment is otherwise payable on an installment basis, the first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application of this provision, and the balance of the installments shall be payable in accordance with their original schedule. 

(b)All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or incurred by the Executive during the time periods set forth in this Agreement.  All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred.  The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year (except for any lifetime or other aggregate limitation applicable to medical expenses).  Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

(c)To the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination of employment, then such payments or benefits shall be payable only upon the Executive’s “separation from service.”  The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A‐1(h).

(d)The parties intend that this Agreement will be administered in accordance with Section 409A of the Code.  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so that all payments hereunder comply with Section 409A of the Code.  Each payment pursuant to this Agreement or the Restrictive Covenants Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A‐2(b)(2).  The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.

(e)The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section.

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8.Continuing Obligations.

(a)Restrictive Covenants Agreement.  The Executive acknowledges and agrees that in consideration and as a condition of the Executive’s employment by the Company and in exchange for, among other things, the benefits contained in this Agreement, including without limitation the opportunity to receive enhanced post-employment severance benefits, which the Executive acknowledges and agrees is fair and reasonable consideration that is independent from the continuation of the Executive’s employment, the Executive will enter into the Employee Confidentiality, Assignment and Noncompetition Agreement attached hereto as Exhibit A (the “Restrictive Covenants Agreement”).  The Executive further acknowledges and agrees that he received the Restrictive Covenants Agreement at least ten (10) business days before the Restrictive Covenants Agreement is to be effective.  For purposes of this Agreement, the obligations in this Section 8 and those that arise in the Restrictive Covenants Agreement and any other agreement relating to confidentiality, assignment of inventions, or other restrictive covenants shall collectively be referred to as the “Continuing Obligations.”  

(b)Third-Party Agreements and Rights.  The Executive hereby confirms that the Executive is not bound by the terms of any agreement with any previous employer or other party which restricts in any way the Executive’s use or disclosure of information or the Executive’s engagement in any business.  The Executive represents to the Company that the Executive’s execution of this Agreement, the Executive’s employment with the Company and the performance of the Executive’s proposed duties for the Company will not violate any obligations the Executive may have to any such previous employer or other party.  In the Executive’s work for the Company, the Executive will not disclose or make use of any information in violation of any agreements with or rights of any such previous employer or other party, and the Executive will not bring to the premises of the Company any copies or other tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party.

(c)Cooperation.  During and after the Executive’s employment, the Executive shall cooperate fully with the Company in (i) the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company which relate to events or occurrences that transpired while the Executive was employed by the Company, and (ii) the investigation, whether internal or external, of any matters about which the Company believe the Executive may have knowledge or information.  The Executive’s full cooperation in connection with such claims, actions or investigations shall include, but not be limited to, being available to meet with counsel to answer questions or to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times.  During and after the Executive’s employment, the Executive also shall cooperate fully with the Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while the Executive was employed by the Company.  The Company shall reimburse the Executive for any reasonable out‐of‐pocket expenses incurred in connection with the Executive’s performance of obligations pursuant to this Section 8(c).

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(d)Injunction.  The Executive agrees that it would be difficult to measure any damages caused to the Company which might result from any breach by the Executive of any of the Continuing Obligations (including without limitation any breach of the Restrictive Covenants Agreement), and that in any event money damages would be an inadequate remedy for any such breach.  Accordingly, the Executive agrees that if the Executive breaches, or proposes to breach, any portion of this Agreement, the Company shall be entitled, in addition to all other remedies that it may have, to an injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the Company.  

(e)Protected Disclosures and Other Protected Actions.  Nothing in this Agreement shall be interpreted or applied to prohibit the Executive from making any good faith report to any governmental agency or other governmental entity (a “Government Agency”) concerning any act or omission that the Executive reasonably believes constitutes a possible violation of federal or state law or making other disclosures that are protected under the anti-retaliation or whistleblower provisions of applicable federal or state law or regulation.  In addition, nothing contained in this Agreement limits the Executive’s ability to communicate with any Government Agency or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including the Executive’s ability to provide documents or other information, without notice to the Company.  In addition, for the avoidance of doubt, pursuant to the federal Defend Trade Secrets Act of 2016, the Executive shall not be held criminally or civilly liable under any federal or state trade secret law or under this Agreement or the Restrictive Covenants Agreements for the disclosure of a trade secret that (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

9.Consent to Jurisdiction.  The parties hereby consent to the jurisdiction of the Superior Court of the Commonwealth of Massachusetts and the United States District Court for the District of Massachusetts.  Accordingly, with respect to any such court action, the Executive (a) submits to the personal jurisdiction of such courts; (b) consents to service of process; and (c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process.

10.Integration.  This Agreement constitutes the entire agreement between the parties with respect to compensation, severance pay, benefits and accelerated vesting and supersedes in all respects all prior agreements between the parties concerning such the subject matter hereof, including without limitation any offer letter, employment agreement, arbitration agreement or severance agreement relating to the Executive’s employment relationship with the Company and/or the ending of that employment relationship.  Notwithstanding the foregoing, the Equity Documents, any agreement relating to indemnification rights, any agreement specifically referenced in this Agreement, and any other agreement relating to confidentiality, assignment of inventions, or other restrictive covenants shall not be superseded by this Agreement and the Executive acknowledges and agrees that any such agreements remain in full force and effect.  The Executive acknowledges and agrees that any claims arising under any separate agreements related to the subject matter of this Agreement that are not preserved herein are hereby waived.  

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11.Taxes; Withholding.  Nothing in this Agreement shall be construed to limit the Company’s ability to make deductions, withholdings and tax reports with respect to payments and benefits under this Agreement to the extent that it reasonably and in good faith believes that it is required to make such deductions, withholdings and tax reports.  Payments under this Agreement shall be in amounts net of any such deductions or withholdings and nothing in this Agreement shall be construed to require the Company to make any payments to compensate the Executive for any adverse tax effect associated with any payments or benefits or for any deduction or withholding from any payment or benefit.  

12.Enforceability.  If any portion or provision of this Agreement or the Restrictive Covenants Agreement (including, without limitation, any portion or provision of any section of the Continuing Obligations) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

13.Survival.  The provisions of this Agreement shall survive the termination of this Agreement and/or the termination of the Executive’s employment to the extent necessary to effectuate the terms contained herein.

14.Waiver.  No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party.  The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

15.Notices.  Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to the Executive at the last address the Executive has filed in writing with the Company or, in the case of the Company, at its main offices, attention of the Board.

16.Amendment.  This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly authorized representative of the Company.

17.Effect on Other Plans and Agreements.  An election by the Executive to resign for Good Reason under the provisions of this Agreement shall not be deemed a voluntary termination of employment by the Executive for the purpose of interpreting the provisions of any of the Company’s benefit plans, programs or policies.  Nothing in this Agreement shall be construed to limit the rights of the Executive under the Company’s benefit plans, programs or policies except as otherwise provided in Section 8 hereof, and except that the Executive shall have no rights to any severance benefits under any Company severance pay plan, offer letter or otherwise.  Except for the Restrictive Covenants Agreement, in the event that the Executive is party to an agreement with the Company providing for payments or benefits under such agreement and this Agreement, the terms of this Agreement shall govern and the Executive may receive payment under this Agreement only and not both.  Further, Section 5 and Section 6 of this Agreement are mutually exclusive and in no event shall the Executive be entitled to payments or benefits pursuant to Section 5 and Section 6 of this Agreement.  

12

 

18.Governing Law.  This is a Massachusetts contract and shall be construed under and be governed in all respects by the laws of the Commonwealth of Massachusetts, without giving effect to the conflict of laws principles of such Commonwealth.  With respect to any disputes concerning federal law, such disputes shall be determined in accordance with the law as it would be interpreted and applied by the United States Court of Appeals for the First Circuit.

19.Assignment.  Neither the Executive nor the Company may make any assignment of this Agreement or any interest in it, by operation of law or otherwise, without the prior written consent of the other; provided, however, that the Company may assign its rights and obligations under this Agreement (including the Restrictive Covenants Agreement) without the Executive’s consent to any affiliate or to any person or entity with whom the Company shall hereafter effect a reorganization, consolidate with, or merge into or to whom it transfers all or substantially all of its properties or assets; provided further that if the purchaser in any transaction involving the transfer of all or substantially all of the Company’s assets assumes this Agreement and the Executive accepts a position with the purchaser that is equivalent or better to his position immediately preceding such transaction, then the Executive shall not be entitled to any Severance Amount pursuant to Section 5 or any Change in Control Payment pursuant to Section 6.  This Agreement shall inure to the benefit of and be binding upon the Executive and the Company, and each of the Executive’s and the Company’s respective successors, executors, administrators, heirs and permitted assigns.  

20.Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be taken to be an original; but such counterparts shall together constitute one and the same document.

21.Gender Neutral.  Wherever used herein, a pronoun in the masculine gender shall be considered as including the feminine gender unless the context clearly indicates otherwise.

 [Signature Page Follows]

 

13

 

Exhibit 10.15

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement effective on the Effective Date.

	
 
	
PARENT

	
 
	
 
	
 
	
 

	
 
	
ORCHARD THERAPEUTICS plc

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ John Ilett
	
 

	
 
	
Name:
	
John Ilett

	
 
	
Title:
	
General Counsel & Company Secretary 

 

	
 
	
U.S. SUBSIDIARY

	
 
	
 
	
 

	
 
	
ORCHARD THERAPEUTICS NORTH AMERICA

	
 
	
 
	
 

	
 
	
By:
	
/s/ John Ilett

	
 
	
Name: John Ilett

	
 
	
Title:
	
General Counsel & Company Secretary 

 

	
 
	
EXECUTIVE

	
 
	
/s/ Frank E. Thomas

	
 
	
Frank Thomas

 

 

 

 

 

Exhibit 10.15

 

Exhibit A

 

Employee Confidentiality, Assignment and Noncompetition Agreement 

 

 In consideration and as a condition of my employment by Orchard Therapeutics North America (including its parent company, Orchard Therapeutics plc, and its and their respective subsidiaries and other affiliates, and all of the foregoing’s successors and assigns, the “Company”) and in exchange for, among other things, the benefits contained in the Employment Agreement to which this Exhibit A is appended, including without limitation the opportunity to receive enhanced post-employment severance benefits, which I acknowledge and agree is fair and reasonable consideration that is independent from the continuation of my employment, I enter into this Employee Confidentiality, Assignment and Noncompetition Agreement (the “Agreement”) and agree as follows:

 

1.Proprietary Information.  I agree that all information, whether or not in writing, concerning the Company’s business, technology, business relationships or financial affairs that the Company has not released to the general public (collectively, “Proprietary Information”) and all tangible embodiments thereof are and will be the exclusive property of the Company.  By way of illustration, Proprietary Information may include information or material that has not been made generally available to the public, such as:  (a) corporate information, including plans, strategies, methods, policies, resolutions, negotiations or litigation; (b) marketing information, including strategies, methods, customer or business partner identities or other information about customers, business partners, prospect identities or other information about prospects, or market analyses or projections; (c) financial information, including cost and performance data, debt arrangements, equity structure, investors and holdings, purchasing and sales data and price lists;  (d) operational, technological, and scientific information, including plans, specifications, manuals, forms, templates, software, pre-clinical and clinical testing data and strategies, research and development strategies, designs, methods, procedures, formulae, data, reports, discoveries, inventions, improvements, concepts, ideas, and other Developments (as defined below), know-how and trade secrets; and (e) personnel information, including personnel lists, reporting or organizational structure, resumes, personnel data, performance evaluations and termination arrangements or documents.  Proprietary Information also includes information received in confidence by the Company from its customers, suppliers, business partners or other third parties.

2.Recognition of Company’s Rights.  I will not, at any time, without the Company’s prior written permission, either during or after my employment, disclose any Proprietary Information to anyone outside of the Company, or use or permit to be used any Proprietary Information for any purpose other than the performance of my duties as an employee of the Company.  I will cooperate with the Company and use my best efforts to prevent the unauthorized disclosure of all Proprietary Information.  I will deliver to the Company all copies and other tangible embodiments of Proprietary Information in my possession or control upon the earlier of a request by the Company or termination of my employment.

3.Rights of Others.  I understand that the Company is now and may hereafter be subject to nondisclosure or confidentiality agreements with third persons that require the Company to protect or refrain from use or disclosure of proprietary information.  I agree to be bound by the terms of such agreements in the event I have access to such proprietary information. I understand that the Company strictly prohibits me from using or disclosing confidential or proprietary information belonging to any other person or entity (including any employer or former employer), in connection with my employment. In addition, I agree not to bring any confidential information belonging to any other person or entity onto Company premises or into Company workspaces.  

4.Commitment to Company; Avoidance of Conflict of Interest.  While an employee of the Company, I will devote my full-time efforts to the Company’s business and I will not, directly or indirectly, engage in any other business activity, except as expressly authorized in writing and in advance by a duly authorized representative of the Company.  I will advise an authorized officer of the Company or his or her designee at such time as any activity of either the Company or another business presents me with a conflict of interest or the appearance of a conflict of interest as an employee of the Company.  I will take whatever action is requested of me by the Company to resolve any conflict or appearance of conflict which it finds to exist. 

5.Developments.  I will make full and prompt disclosure to the Company of all inventions, discoveries, designs, developments, methods, modifications, improvements, processes, algorithms, data, databases, computer 

 

 

programs, research, formulae, techniques, trade secrets, graphics or images, and audio or visual works and other works of authorship, and other intellectual property, including works-in-process (collectively “Developments”) whether or not patentable or copyrightable, that are created, made, conceived or reduced to practice by me (alone or jointly with others) or under my direction during the period of my employment.  I acknowledge that all work performed by me is on a “work for hire” basis, and I hereby do assign and transfer and, to the extent any such assignment cannot be made at present, will assign and transfer, to the Company and its successors and assigns all my right, title and interest in and to all Developments that (a) relate to the business of the Company or any customer of, supplier to or business partner of the Company or any of the products or services being researched, developed, manufactured or sold by the Company or which may be used with such products or services; or (b) result from tasks assigned to me by the Company; or (c) result from the use of premises or personal property (whether tangible or intangible) owned, leased or contracted for by the Company (“Company-Related Developments”), and all related patents, patent applications, trademarks and trademark applications, copyrights and copyright applications, sui generis database rights and other intellectual property rights in all countries and territories worldwide and under any international conventions (“Intellectual Property Rights”).  

To preclude any possible uncertainty, if there are any Developments that I have, alone or jointly with others, conceived, developed or reduced to practice prior to the commencement of my employment with the Company that I consider to be my property or the property of third parties and that I wish to have excluded from the scope of this Agreement (“Prior Inventions”), I have set forth on Appendix A attached hereto a complete list of those Prior Inventions.  If disclosure of any such Prior Invention would cause me to violate any prior confidentiality agreement, I understand that I am not to list such Prior Inventions in Appendix A but am only to disclose a cursory name for each such invention, a listing of the party(ies) to whom it belongs and the fact that full disclosure as to such inventions has not been made for that reason.  If there are any patents or patent applications in which I am named as an inventor, other than those that have been assigned to the Company (“Other Patent Rights”), I have also listed those Other Patent Rights on Appendix A.  If no such disclosure is attached, I represent that there are no Prior Inventions or Other Patent Rights.  If, in the course of my employment with the Company, I incorporate a Prior Invention into a Company product, process or machine, research or development program, or other work done for the Company, I hereby grant to the Company a nonexclusive, royalty-free, fully paid-up, irrevocable, worldwide license (with the full right to sublicense through multiple tiers) to make, have made, modify, use, sell, offer for sale and import such Prior Invention.  Notwithstanding the foregoing, I will not incorporate, or permit to be incorporated, Prior Inventions in any Company-Related Development without the Company’s prior written consent.

This Agreement does not obligate me to assign to the Company any Development that, in the sole judgment of the Company, reasonably exercised, is developed entirely on my own time and does not relate to the business efforts or research and development efforts in which, during the period of my employment, the Company actually is engaged or reasonably would be engaged, and does not result from the use of premises or equipment owned or leased by the Company.  However, I will also promptly disclose to the Company any such Developments for the purpose of determining whether they qualify for such exclusion.  I understand that to the extent this Agreement is required to be construed in accordance with the laws of any state which precludes a requirement in an employee agreement to assign certain classes of inventions made by an employee, this Section 5 will be interpreted not to apply to any invention that a court rules and/or the Company agrees falls within such classes.  I also hereby waive all claims to any moral rights or other special rights that I may have or accrue in any Company-Related  Developments.

6.Documents and Other Materials.  I will keep and maintain adequate and current records of all Proprietary Information and Company-Related Developments developed by me during my employment, which records will be available to and remain the sole property of the Company at all times. 

All files, letters, notes, memoranda, reports, records, data, sketches, drawings, notebooks, layouts, charts, quotations and proposals, specification sheets, blueprints, models, prototypes, or other written, photographic or other tangible material containing Proprietary Information, whether created by me or others, which come into my custody or possession, are the exclusive property of the Company to be used by me only in the performance of my duties for the Company.  Any property situated on the Company’s premises and owned by the Company, including without limitation computers, disks and other storage media, filing cabinets or other work areas, is subject to inspection by the Company at any time with or without notice.  In the event of the termination of my employment for any reason, I will deliver to the Company all Company property and equipment in my possession, custody or control, including all files, letters, notes, memoranda, reports, records, data, sketches, drawings, notebooks, layouts, charts, quotations and proposals, specification sheets, blueprints, models, prototypes, or other written, photographic or other tangible material containing Proprietary Information, and other materials of any nature pertaining to the Proprietary Information of the Company and to my work, and will not take or keep in my possession any of the foregoing or any copies.  

2

 

 

7.Enforcement of Intellectual Property Rights.  I will cooperate fully with the Company, both during and after my employment with the Company, with respect to the procurement, maintenance and enforcement of Intellectual Property Rights in Company-Related Developments.  I will sign, both during and after my employment,  all papers, including without limitation copyright applications, patent applications, declarations, oaths, assignments of priority rights, and powers of attorney, which the Company may deem necessary or desirable in order to protect its rights and interests in any Company-Related Development or Intellectual Property Rights therein.  If the Company is unable, after reasonable effort, to secure my signature on any such papers, I hereby irrevocably designate and appoint each officer of the Company as my agent and attorney-in-fact to execute any such papers on my behalf, and to take any and all actions as the Company may deem necessary or desirable in order to protect its rights and interests in any Company-Related Development, including any Intellectual Property Rights therein.

8.Nonsolicitation and Noncompetition.  

In order to protect the Company’s Proprietary Information and goodwill, during my employment and for a period of:  (i) one (1) year following the date of the cessation of my employment with the Company (the “Last Date of Employment”), or (ii) two (2) years following the Last Date of Employment if I breach my fiduciary duty to the Company or if I have unlawfully taken, physically or electronically, property belonging to the Company (in either case the “Restricted Period”):

(a)I shall not, directly or indirectly, in any manner, other than for the benefit of the Company, solicit or transact any business with any of the customers of the Company or any of its vendors.  For purposes of this Agreement, (i) customers shall include then current customers to which the Company provided products or services during the twelve months prior to the Last Date of Employment (the “One Year Lookback”) and customer prospects that the Company solicited during the One Year Lookback and that I had significant contact with or learned confidential information about in the course of my employment, and (ii) vendors shall include then current vendors and vendors that provided services to or in connection with the Company during the One Year Lookback.

(b)I shall not, directly or indirectly, in any manner, solicit, entice or attempt to persuade any employee or consultant of the Company to leave the Company for any reason or otherwise participate in or facilitate the hire, directly or through another entity, of any person who is then employed or engaged by the Company.  

(c)Unless (i) the Company terminates my employment without Cause (as defined below) or I have been laid off; or (ii) the Company waives the restrictions upon post-employment activities set forth in this Section 8(c), then, the Company shall make garden leave payments to me for the post-employment portion of the Restricted Period (but for not more than 12 months following the end of my employment) at the rate of 50% of the highest annualized base salary paid to me by the Company within the two-year period preceding the last day of my employment (“Garden Leave Pay”), and in exchange, I shall not directly or indirectly, whether as owner, partner, shareholder, director, manager, consultant, agent, employee, co-venturer or otherwise, anywhere in the world engage or otherwise participate in any business that develops, manufactures or markets any products, or performs any services, that are competitive with the products or services of the Company, or products or services that the Company or its affiliates, has under development or that are the subject of active planning at any time during my employment. For purposes of this Agreement, and notwithstanding anything to the contrary in any other agreement between the Company and me, “Cause” shall mean a reasonable and good faith basis for the Company to be dissatisfied with my job performance, my conduct or my behavior. I acknowledge that this covenant is necessary because the Company’s legitimate business interests cannot be adequately protected solely by the other covenants in this Agreement. I further acknowledge and agree that any payments I receive pursuant to this Section 8(c) shall reduce (and shall not be in addition to) any severance or separation pay that I am otherwise entitled to receive from the Company pursuant an agreement, plan or otherwise.    

3

 

 

9.Government Contracts.  I acknowledge that the Company may have from time to time agreements with other persons or with the United States Government or its agencies that impose obligations or restrictions on the Company regarding inventions made during the course of work under such agreements or regarding the confidential nature of such work.  I agree to comply with any such obligations or restrictions upon the direction of the Company. In addition to the rights assigned under Section 5, I also assign to the Company (or any of its nominees) all rights that I have or acquired in any Developments, full title to which is required to be in the United States under any contract between the Company and the United States or any of its agencies.

10.Prior Agreements.  I hereby represent that, except as I have fully disclosed previously in writing to the Company, I am not bound by the terms of any agreement with any previous or current employer or other party to refrain from using or disclosing any trade secret or confidential or proprietary information in the course of my employment with the Company or to refrain from competing, directly or indirectly, with the business of such employer or any other party.  I further represent that my performance of all the terms of this Agreement as an employee of the Company does not and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired by me in confidence or in trust prior to my employment with the Company. I will not disclose to the Company or induce the Company to use any confidential or proprietary information or material belonging to any previous employer or others. 

11.Remedies Upon Breach.  I understand that the restrictions contained in this Agreement are necessary for the protection of the business and goodwill of the Company and I consider them to be reasonable for such purpose.  Any breach of this Agreement is likely to cause the Company substantial and irrevocable damage and therefore, in the event of such breach, the Company, in addition to such other remedies which may be available, will be entitled to specific performance and other injunctive relief, without the posting of a bond.  I further acknowledge that a court may render an award extending the Restricted Period as one of the remedies in the event of my violation of this Agreement.  If I violate this Agreement, in addition to all other remedies available to the Company at law (including, without limitation, the Company’s right to discontinue any payments I may receive pursuant to Section 8(c)), in equity, and under contract, I agree that I am obligated to pay all the Company’s costs of enforcement of this Agreement, including reasonable attorneys’ fees and expenses. 

12.Use of Voice, Image and Likeness.  I give the Company permission to use any and all of my voice, image and likeness, with or without using my name, in connection with the products and/or services of the Company, for the purposes of advertising and promoting such products and/or services and/or the Company, and/or for other purposes deemed appropriate by the Company in its reasonable discretion, except to the extent prohibited by law.

13.No Employment Obligation.  I understand that this Agreement does not create an obligation on the Company or any other person to continue my employment.  I acknowledge that, unless otherwise agreed in a formal written employment agreement signed on behalf of the Company by an authorized officer, my employment with the Company is at will and therefore may be terminated by the Company or me at any time and for any reason, with or without cause.

14.Survival and Assignment by the Company.  I understand that my obligations under this Agreement will continue in accordance with its express terms regardless of any changes in my title, position, duties, salary, compensation or benefits or other terms and conditions of employment. I further understand that my obligations under this Agreement will continue following the termination of my employment regardless of the manner of such termination and will be binding upon my heirs, executors and administrators.  The Company will have the right to assign this Agreement to its affiliates, successors and assigns.  I expressly consent to be bound by the provisions of this Agreement for the benefit of the Company or any parent, subsidiary or affiliate to whose employ I may be transferred without the necessity that this Agreement be resigned at the time of such transfer.

4

 

 

15.Notice of Resignation.  If I elect to resign from my employment with the Company, I agree to provide the Company with written notification of my resignation at least 30 days prior to my intended resignation date.  Such notice shall include information in reasonable detail about my post-employment job duties and other business activities, including the name and address of any subsequent employer and/or person or entity with whom or which I intend to engage in business activities during the Restricted Period and the nature of my job duties and other business activities. The Company may elect to waive all or part of the 30 day notice period in its sole discretion.  

16.Post-Employment Notifications.  During the Restricted Period, I will notify the Company of any change in my address and of each subsequent employment or business activity, including the name and address of my employer or other post-Company employment plans and the nature of my activities. 

17.Disclosures During Restricted Period.  I will provide a copy of this Agreement to any person or entity with whom I may enter into a business relationship, whether as an employee, consultant, partner, coventurer or otherwise, prior to entering into such business relationship during the Restricted Period.

18.Waiver.  The Company and I acknowledge and agree that the Company’s election not to provide me with Garden Leave Pay as set forth in Section 8(c) shall be deemed a waiver of my noncompetition obligations under Section 8(c). Otherwise, no waiver of any of my obligations under this Agreement shall be effective unless made in writing by the Company. The failure of the Company to require my performance of any term or obligation of this Agreement, or the waiver of any breach of this Agreement, shall not prevent the Company’s subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach. 

19.Severability.  In case any provisions (or portions thereof) contained in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.  If, moreover, any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear.     

20.Choice of Law and Jurisdiction.  This Agreement will be deemed to be made and entered into in the Commonwealth of Massachusetts, and will in all respects be interpreted, enforced and governed under the laws of the Commonwealth of Massachusetts.  I hereby consent to personal jurisdiction of the state and federal courts situated within Massachusetts for purposes of enforcing this Agreement, and waive any objection that I might have to personal jurisdiction or venue in those courts, provided, however, the Company and I agree that all civil actions relating to Section 8(c) of this Agreement shall be brought in the county of Suffolk and that the superior court or the business litigation session of the superior court shall have exclusive jurisdiction. 

21.Independence of Obligations.  My obligations under this Agreement are independent of any obligation, contractual or otherwise, the Company has to me.  The Company’s breach of any such obligation shall not be a defense against the enforcement of this Agreement or otherwise limit my obligations under this Agreement.   

22.Protected Disclosures.  I understand that nothing contained in this Agreement limits my ability to communicate with any federal, state or local governmental agency or commission, including to provide documents or other information, without notice to the Company.  I also understand that nothing in this Agreement limits my ability to share compensation information concerning myself or others, except that this does not permit me to disclose compensation information concerning others that I obtain because my job responsibilities require or allow access to such information.

23.Defend Trade Secrets Act of 2016.  I understand that pursuant to the federal Defend Trade Secrets Act of 2016, I shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

5

 

 

24.Entire Agreement; Amendment.  This Agreement constitutes the entire agreement between the Company and me with respect to the subject matter hereof, and supersedes all prior agreements or understandings, both written and oral, between the Company and me with respect to the subject matter hereof, but does not in any way merge with or supersede any other confidentiality, assignment of inventions or other restrictive covenant agreement or obligation entered into by the Company and me, which agreements and obligations shall supplement, and shall not limit or be limited by, this Agreement.  This Agreement may be amended only in a written agreement executed by a duly authorized officer of the Company and me.

 

 

[Remainder of Page Intentionally Left Blank]

6

 

 

Exhibit 10.15

 

I UNDERSTAND THAT THIS AGREEMENT AFFECTS IMPORTANT RIGHTS.  BY SIGNING BELOW, I CERTIFY THAT (I) I WAS PROVIDED WITH THIS AGREEMENT AT LEAST TEN (10)  BUSINESS DAYS BEFORE THE EFFECTIVE DATE OF THIS AGREEMENT AND (II) I HAVE BEEN ADVISED BY THE COMPANY THAT I HAVE THE RIGHT TO CONSULT WITH COUNSEL PRIOR TO SIGNING THIS AGREEMENT.     

IN WITNESS WHEREOF, the undersigned has executed this agreement as a sealed instrument and shall become effective upon the later of the (i) full execution by both parties; or (ii) ten (10) business days after the Company provided me with notice of this Agreement.    

		
	
EMPLOYEE 

	
 
	
 

	
Signed: /s/ Frank E. Thomas

	
 

	
Type or print name and job title: Frank E. Thomas

	
 

	
Date: 1 September 2019

 

		
	
THE COMPANY 
	
	
 
	
	
Signed: /s/ John Ilett
	
 

	
 
	
 

	
Type or print name and job title: John Ilett, General Counsel & Company Secretary 
	
 

	
 
	
 

	
Date: 1 September 2019
	
 

 

 

 

APPENDIX A

 

			
	
To:
	
COMPANY

	
 
	
 

	
From:
	
__________________________________

	
 
	
 

	
Date:
	
__________________________________

	
 
	
 

	
SUBJECT: 
	
Prior Inventions

 

The following is a complete list of all inventions or improvements relevant to the subject matter of my employment by the Company that have been made or conceived or first reduced to practice by me alone or jointly with others prior to my engagement by the Company:

	
�
	
No inventions or improvements

	
 
	
 

	
�
	
See below:

	
 
	
____________________________________________________________

	
 
	
 

	
 
	
____________________________________________________________

	
 
	
 

	
 
	
____________________________________________________________

	
 
	
 

	
 �
	
Additional sheets attached

 

The following is a list of all patents and patent applications in which I have been named as an inventor:

 

	
�
	
None

	
 
	
 

	
�
	
See below:

	
 
	
 

	
 
	
____________________________________________________________

	
 
	
 

	
 
	
____________________________________________________________

	
 
	
 

	
 
	
____________________________________________________________

 

8ortx-ex1016_421.htm

 

Exhibit 10.16

 

 

CONTRACT OF EMPLOYMENT

 

 

 

BETWEEN

 

DR. HUBERT GASPAR

 

AND

 

ORCHARD THERAPEUTICS LIMITED

 

 

 

 

 

 

 

TERMS AND CONDITIONS OF EMPLOYMENT

 

This Contract of Employment (“the Contract”) includes the particulars of employment required under Section 1 of the Employment Rights Act 1996 (as amended).

 

Parties:

 

Orchard Therapeutics Limited of Birchin Court, 20 Birchin Lane, London, EC3V 9DU, United Kingdom (“the Company”),

 

and

 

Dr Hubert Gaspar of [Address]

 

 

	
1.
	
GENERAL

 

	
1.1
	
Any reference to a statutory provision shall be deemed to include a reference to any statutory modification or re-enactment of it.

 

	
1.2
	
Unless the context otherwise requires, words importing one gender include all other genders and words importing the singular include the plural and vice versa.

 

	
1.3
	
The clause headings do not form part of this Contract and shall not be taken into account in its construction or interpretation.

 

	
1.4
	
You are expected to comply with all the Company’s policies and procedures.

 

	
2.
	
DATE OF COMMENCEMENT OF EMPLOYMENT

 

	
2.1
	
Your employment will begin on January 2nd, 2018 which is also the date on which your continuous period of service commences.

 

	
3.
	
CONDITIONS OF EMPLOYMENT

 

	
3.1
	
Your employment is subject to:

 

	
 
	
3.1.1
	
you having the right to work in the United Kingdom;

 

	
 
	
•
	
You agree to immediately inform the Company if your right to work status changes during your employment with the Company;

	
 
	
•
	
The Company reserves the right to carry out checks with the UK Border Agency or otherwise as appropriate in order to seek to establish or verify your right to work status at any time prior to the commencement of your employment or during it. You agree to these checks being carried out by the Company.

 

	
 
	
3.1.2
	
the Company receiving, at its own discretion, satisfactory references from previous employers (or other persons it considers appropriate) and evidence confirming any qualifications you may have;

 

	
 
	
3.1.3
	
you maintaining any professional qualifications necessary to carry out your role.

 

	
3.2
	
Should you be unable to fulfil any of these conditions at any time during your employment, the Company reserves the right to terminate your employment without notice.

 

	
4.
	
PROBATIONARY PERIOD

 

	
4.1
	
The first six months of your employment with the Company will be treated as a probationary period during which time your employment may be terminated by either party giving one month’s notice in writing at any time during or at the end of this period. This period may be extended at the discretion of the Company.

2

 

 

 

	
5.
	
JOB TITLE AND DUTIES

 

	
5.1
	
You are employed as Chief Scientific Officer & Co-Founder, or in such other role as the Company considers appropriate, and you will report to the Chief Executive Officer or to such other appropriate management as directed by the Company from time to time. Full details of your role can be found in your Job Description to be provided to you separately.

 

	
5.2
	
Your job title does not define absolutely, or limit, the work you may be required to do, which may be anything within your capabilities required by the Company.

 

	
5.3
	
During your employment you will:-

 

	
 
	
5.3.1
	
obey all lawful and reasonable directions of the Company;

 

	
 
	
5.3.2
	
observe and comply with these terms and conditions and with such codes procedures or policies as adopted and amended by the Company, and in particular those contained in the Employee Handbook; and

 

	
 
	
5.3.3
	
devote the whole of your time and attention and skills to the Company during your working time and use your best endeavours to promote, and not do anything detrimental to, the interests of the Company.

 

	
6.
	
PLACE OF WORK

	
6.1
	
Your normal place of work is at the Company’s offices, Birchin Court, 20 Birchin Lane, London EC3V 9DU. The Company reserves the right to require you to change your place of work to other such locations as it may reasonably direct from time to time on a permanent or temporary basis.

 

	
6.2
	
It is a condition of your employment that you are prepared to travel within the UK and to other overseas destinations, including the US, as necessary in order to properly carry out your role, at the reasonable request of the Company. You shall travel by such means, and in accordance with such travel tariff, as the Company may from time to time determine.

 

 

	
7.
	
SALARY AND OTHER BENEFITS

 

	
7.1
	
Your Basic Salary is £250,000 per annum which is pro-rated for 4 days a week based on a full-time salary of £312,500 per annum. Your salary will be reviewed annually in January and any increase will be confirmed to you in writing. Your annual salary will increase by 5% after one year of service at the company. In the following years you will be subject to a yearly salary review that will be dependent on your performance. After the first year increase the Company is under no obligation to award an increase following a salary review.

 

	
7.2
	
Payment of your salary is made monthly in arrears on or before the last day of each calendar month, by bank transfer direct to your own bank account, after deductions for income tax, National Insurance and any other deductions as are required by law.

 

	
7.3
	
The Company reserves the right to change the day of the month on which your salary is paid after giving you reasonable notice.

 

	
7.4
	
The Company reserves the right to make deductions from your remuneration in cases where:

	
 
	
7.4.1
	
it sustains any loss or damage to property or monies belonging to it (or any of its employees, clients or visitors) as the result of dishonesty, negligence, breach of Company rules, policies or procedures or carelessness on your part;

	
 
	
7.4.2
	
it has loaned you monies (subject to the terms of the loan);

	
 
	
7.4.3
	
you have been overpaid remuneration or expenses, have taken unauthorised absence or have been paid for hours not worked; and

	
 
	
7.4.4
	
you have exceeded your holiday entitlement at the date of termination of your employment or at the end of the holiday year.

 

By signing this Contract, you consent to such deductions being made.

3

 

 

 

	
7.5
	
Bonus

 

Sign-On Bonus

You will be entitled to a Sign-On Bonus upon the commencement of your employment with the Company. This bonus will be paid to you as follows, less such deductions for tax and National Insurance as the Company is required to deduct and subject to you being in the Company’s employment at the time of payment due and not having received or given notice to terminate your employment, for whatever reason:

 

•£50,000 to be paid in the payroll in the first month of employment with the Company;

•£40,000 to be paid in the payroll in January 2019.

 

Company Bonus Scheme

The Company also operates a Bonus Scheme, under which you may be entitled to a bonus payment of 35% of your Basic Salary which is based on your individual performance (30% of any total Bonus payment) as well as the performance of the Company as a whole (70% of the total of any Bonus payment) for the relevant period. Your entitlement to any bonus payment shall be determined in the Company’s sole and absolute discretion. The Company shall also be entitled to alter the percentage split between your individual performance and the Company’s performance used to calculate any Bonus entitlement at any time and in its sole discretion.

 

Payment will only be made if you are in the Company’s employment at the time payment is due and have not received or given notice to terminate your employment, for whatever reason.

 

	
7.6
	
Pension

 

The Company will comply with any duties it may have in respect of you under part 1 of the Pensions Act 2008 (“the Pensions Act”).

The Company shall be entitled to deduct from your salary any amounts payable by you as member contributions into such pension scheme as the Company is using from time to time.

 

The Company is currently using a Group Personal Pension Scheme with Royal London in respect of its duties under the Pensions Act. Further details regarding the pension scheme are available from Human Resources.

Membership of the pension scheme is strictly subject to the rules of the scheme as amended from time to time.

The Company reserves the right to vary or discontinue any pension scheme in place from time to time.

 

	
7.7
	
Private Health Insurance

 

You and your spouse/partner and dependent children are eligible for membership of the

Company’s Private Health Insurance Scheme (“the Health Insurance Scheme”).

 

Membership of the Health Insurance Scheme is dependent upon the Scheme provider making the appropriate cover available. If the Health Insurance Scheme provider refuses for any reason to provide the benefit to you, the Company shall not be liable to provide you with any replacement benefit of the same or similar kind or to pay any compensation in lieu of such benefit.

 

The Company reserves the right to withdraw or amend the Health Insurance Scheme (including the level of cover provided under the Scheme) at any time on reasonable notice to you.

 

	
7.8
	
Long Term Disability

 

The Company operates a Long-Term Disability Scheme (“the LTD Scheme”). The Company shall only be obliged to make payments to you under the LTD Scheme if it has received payment from the LTD Scheme provider for that purpose or if you are not receiving benefits from the LTD Scheme provider directly.

 

4

 

 

If you are receiving benefits under the Company's LTD Scheme, the Company shall be entitled to appoint a successor to perform all or any of the duties required of you and your duties shall be amended accordingly.

 

Membership of the LTD Scheme is dependent upon the Scheme provider making the appropriate cover available. If the LTD Scheme provider refuses for any reason to provide the benefit for you, the Company shall not be liable to provide you with any replacement benefit of the same or similar kind or to pay any compensation in lieu of such benefit.

 

The Company reserves the right to withdraw or amend the LTD Scheme (including the level of cover provided under the LTD Scheme) at any time on reasonable notice to you.

 

	
7.9
	
Critical Illness

You are eligible for membership of the Company’s Critical Illness Scheme (“the CIC Scheme”).

The Company shall only be obliged to make a payment to you under the CIC Scheme if it has received payment from the CIC Scheme provider for that purpose or if you are not receiving any benefit from the CIC Scheme provider directly.

If you are eligible to receive any payment under the Company's CIC Scheme, the Company shall be entitled to appoint a successor to perform all or any of the duties required of you and your duties shall be amended accordingly.

Membership of the CIC Scheme is dependent upon the Scheme provider making the appropriate cover available. If the CIC Scheme provider refuses for any reason to provide the benefit for you, the Company shall not be liable to provide you with any replacement benefit of the same or similar kind or to pay any compensation in lieu of such benefit.

The Company reserves the right to withdraw or amend the CIC Scheme (including the level of cover provided under the CIC Scheme) at any time on reasonable notice to you.

 

	
7.10
	
Death in Service Benefit

The Company operates a Death in Service Scheme. Membership of the Death in Service Scheme is dependent upon the Scheme provider making the appropriate cover available. If the Scheme provider refuses for any reason to provide the benefit to you, the Company shall not be liable to provide you with any replacement benefit of the same or similar kind or to pay any compensation in lieu of such benefit.

The Company reserves the right to withdraw or amend the Death in Service Scheme (including the level of cover provided under the Scheme) at any time on reasonable notice to you.

 

	
8.
	
HOURS OF WORK

 

	
8.1
	
You are employed on a part-time basis over four days per week.

 

	
8.2
	
Your normal hours of work are 30 hours per week, working 9.00 am to 5.30 pm, Tuesday to Friday, or such other times as are agreed with your Manager. You are allowed to take one hour for lunch, which will be unpaid.

 

	
8.3
	
The Company reserves the right to re-arrange working hours in order to meet the needs of the business.

 

	
8.4
	
You may be required to work other such hours as are required for you to properly carry out your duties, but this will not entitle you to any additional remuneration.

 

	
8.5
	
You may be required to keep a record of your hours and are expected to co-operate and assist the Company in doing so.

 

	
9.
	
HOLIDAY ENTITLEMENT

 

	
9.1
	
The Company's holiday year runs from January to December. You shall be entitled to 20 days' holiday during each holiday year, plus a pro-rata entitlement to the usual Public and Bank Holidays in England and Wales.

5

 

 

 

	
9.2
	
You shall be paid your normal basic remuneration during any paid holidays. If your employment commences part way through the holiday year, your holiday entitlement during your first year of employment shall be calculated on a pro-rata basis rounded up to the nearest whole day.

	
9.3
	
Any request for holiday must be made in writing and authorised by your Manager as far in advance as possible. You should obtain authorisation before booking any holidays or paying any non-refundable deposit. No more than 10 days holiday may be taken at any one time except in exceptional circumstances. The Company reserves the right to refuse the holiday request where the needs of the business make it necessary.

	
9.4
	
The Company reserves the right to determine if and when its offices will close over the Christmas and New Year period. It will give reasonable notice each year of any such days when its offices will be closed and you will be required to ensure that you have sufficient holiday entitlement available to cover this period.

 

	
9.5
	
You shall not be entitled to be paid in lieu of any holiday entitlement except on termination. Holiday may only be carried forward into the next holiday year with your Manager’s permission and only in exceptional circumstances.

	
9.6
	
If you are off sick before or during any period of arranged holiday we may allow you to re- schedule your holiday and we reserve the right to require you to produce medical evidence for the relevant period before agreeing that you may do so.

 

	
9.7
	
On termination of your employment, for whatever reason, you shall be entitled to be paid in lieu of any accrued but untaken holiday on a pro rata basis. In the event of you having taken a greater amount of holiday than your entitlement, you agree that the Company may deduct the balance from any salary or other payments due to you. For these purposes, each day’s holiday shall be equal to 1/260 of your salary.

 

	
9.8
	
The Company reserves the right to require you to take any accrued but untaken holiday during your notice period.

 

	
9.9
	
During any continuous period of absence due to sickness or injury of one month or more, you shall only accrue statutory holiday under the Working Time Regulations and not contractual holiday as set out in clause 9.1.

 

 

	
10.
	
ABSENCE DUE TO SICKNESS AND INJURY

 

	
10.1
	
If you cannot attend work because you are sick or injured, you should email your Line Manager and HR@orchard-tx.com no later than one hour after  9am  or your  agreed  start time, if earlier. If possible, you should also indicate the likely duration of your absence. If you are unable to do so yourself, you must arrange for someone else to call. It is your responsibility to contact your Manager and it is not sufficient to leave messages with a colleague.

 

	
10.2
	
Where the absence is longer term, you and your Manager must agree on the intervals at which you will continue to report in sick, which will be on a daily basis unless your Manager states otherwise.

 

	
10.3
	
You must give the Company evidence of the reason you are unable to attend work as follows:

 

Self Certification: On returning to work after an absence of 7 or less calendar days (including weekends and public holidays), you will be required to complete a self- certification form.

 

Doctor’s Certificate: Where the absence extends beyond 7 continuous calendar days (including weekends and public holidays) you must obtain a certificate from your Doctor/GP, which you must give to your Manager. If you do not return to work following the expiration of your doctor’s certificate you must provide a further doctor’s certificate to your Manager, which should run concurrently. If you are a hospital in-patient, it will be sufficient for medical certificates to be provided to cover the dates of admission and discharge from hospital. Medical certificates will also be required to cover periods of convalescence.

 

	
10.4
	
The Company may require you to submit a doctor’s certificate confirming that you have recovered sufficiently before we allow you to resume work after a period of sickness.

 

	
10.5
	
Statutory Sick Pay (SSP) is payable for sickness of 4 or more qualifying days. Your qualifying days are your normal working days. The Company will continue to pay SSP up to the 28th week of absence at the rates allowed by law from time to time.

6

 

 

 

	
10.6
	
You will only qualify for SSP (where you are entitled) if you adhere strictly to the sickness notification procedure above. Any serious breach, such as the falsification of claims, may result in disciplinary action, which could lead to your dismissal.

 

	
10.7
	
The Company may terminate your employment by giving notice in accordance with clause 11 even when, as a result of such termination, you would or might forfeit any entitlement to benefit from SSP, long-term disability benefit and/or critical illness benefit, provided that the Company shall not terminate your employment solely on the grounds of your sickness or injury where such an entitlement or benefit would or might be forfeited.

 

	
10.8
	
If requested, you agree to be examined (at the Company’s expense) by a registered medical practitioner of the Company’s choosing and will authorise them to disclose the results of the examination to an appropriate person in the Company, subject to the Access to Medical Reports Act 1988. This is to allow the Company to determine whether there are any matters that might hinder or prevent you from returning to work after a period of absence through sickness or injury or, in other circumstances, from properly performing any of your duties. Any such request will be dealt with sensitively, and only when the Company considers it absolutely necessary. If you decline to be examined, the Company is entitled to draw its own conclusions as to your state of health and ability to carry out your duties.

 

	
10.9
	
If your absence is as a result of a third party’s negligence you will immediately notify your Line Manager of the fact and of any damages or compensation recovered by you as a result and will, if so required, refund to the Company that part of any such damages or compensation relating to your loss of earnings for the period of your incapacity as the Company may reasonably determine provided that the amount to be refunded shall not exceed the total remuneration paid to you by way of salary in respect of the period of your incapacity.

 

	
11.
	
TERMINATION OF EMPLOYMENT

 

	
11.1
	
Except where the Company is entitled to terminate your employment by summary dismissal or within your probationary period (including any extension), you are entitled to receive from, and are required to give, the Company six months’ notice.

 

	
11.2
	
Any notice must be given in writing.

 

	
11.3
	
You will not be entitled to engage in any other form of business or employment during the period of notice without the prior written consent of a Director of the Company.

 

	
11.4
	
Pay in Lieu of Notice - The Company reserves the right to make you a payment of basic salary only, less tax, National Insurance and any other such deductions as it is required to make by law, in lieu of any unexpired notice period.

 

	
11.5
	
Garden leave - If either party gives notice to terminate, the Company reserves the right during the notice period to require you:

	
 
	
11.5.1
	
not to attend any of the Company’s premises;

	
 
	
11.5.2
	
not to communicate (whether orally or in writing) with suppliers, customers, employees, agents or representatives of the Company;

	
 
	
11.5.3
	
to change the nature of your work or require you not to carry out any work;

	
 
	
11.5.4
	
to resign immediately from any office(s) you hold; and

	
 
	
11.5.5
	
to return to the Company any property belonging to it in your possession.

 

	
11.6
	
Notwithstanding the periods of notice specified above, the Company may terminate your employment without notice or payment in lieu of notice in the event of the following:

	
 
	
11.6.1
	
any serious, persistent and/or gross misconduct;

7

 

 

	
 
	
11.6.2
	
any behaviour which is, in the reasonable opinion of the Company, negligent and incompetent in the performance of your duties;

	
 
	
11.6.3
	
any serious or repeated breach or non-observance of any of the provisions of your Contract of Employment or refusal or neglect of any reasonable and lawful directions of the Company.

 

	
11.7
	
The rights of the Company under clause 11.6 are without prejudice to any other rights that it might have at law to terminate your employment or to accept any breach of this Contract by you as having brought your employment to an end. Any delay by the Company in exercising its rights to terminate shall not constitute a waiver thereof.

 

	
11.8
	
Upon leaving the Company, you must return to the Company any of its property that is in your possession. This includes, but is not limited to, all other documents, mobile telephones, fuel cards, personal computers, working papers, information (whether stored in electronic format or otherwise) and all other records relating to the Company and its business. You agree that you will confirm in writing that you have complied with this clause, if requested to do so by the Company, within seven days of receipt of such a request.

 

	
12.
	
DISCIPLINARY RULES AND GRIEVANCE PROCEDURES

 

	
12.1
	
If you have a complaint or grievance concerning your employment, you should use the Grievance Procedure and raise it with your Manager in the first instance. Full details of the Grievance Procedure, which is not contractual, can be found in the Employee Handbook.

 

	
12.2
	
In instances where your performance or conduct falls below the standard normally expected it may be necessary to invoke the Company’s Disciplinary Procedures. Full details of the Disciplinary Rules and Procedures, which are not contractual, can be found in the Employee Handbook.

 

	
12.3
	
The Company reserves the right to suspend you during any investigation in connection with a disciplinary matter. During any period of suspension you will continue to receive your salary and contractual benefits.

 

	
13.
	
CONFIDENTIALITY

 

	
13.1
	
Definitions:

 

“Confidential Information” includes all confidential information concerning the property, practice or business dealings or finances of the Company and includes computer software, flowcharts, inventions, processes and research & development and commercialisation, and any other confidential information in respect of which the Company or any officer of the Company owes a duty of confidentiality to any third parties or any other information which you ought reasonably to know to be confidential, all of which may come to your knowledge by reason of your employment.

 

“Company” means the Company as defined in this Contract together with any other group companies, associated companies or subsidiaries.

 

	
13.2
	
You are aware that, in the course of your employment under this Contract, you will have access to confidential information, or information which you ought to reasonably know to be confidential, in respect of the business of the Company.

 

	
13.3
	
You agree that you shall not, at any time during your employment (except where it is necessary and proper in the course of your employment) or at any time after your employment is terminated, misuse, make public or disclose to any person, firm or company (including relatives and/or friends) any Confidential Information.

 

	
13.4
	
All notes and memoranda of any trade secrets or Confidential Information concerning the Company, including all lists of clients or customers, correspondence and all other documents, papers and records (including that stored in electronic format) which have been prepared by you or have come into your possession in the course of your employment with the Company, shall be surrendered by you at the termination of your employment or at the request of the Company at any time during the course of your employment.

 

	
13.5
	
Any breach of the Confidentiality clauses above will be regarded as a disciplinary matter and could lead to your dismissal.

 

8

 

 

	
14.
	
INTELLECTUAL PROPERTY

 

	
14.1
	
“Intellectual Property” includes computer software, letters, patents, trade marks (whether registered or unregistered designs), designs, utility models, copyrights (including design copyright applications for any of the foregoing and the right to apply for them in any part of the world), discoveries, creations, inventions or improvements on, or additions to, an invention, Confidential Information, know-how and any research (whether registered or not), moral rights and any similar rights in any country.

 

	
14.2
	
The parties foresee that you may make, discover or create Intellectual Property in the course of your duties under this Contract. Therefore any Intellectual Property made or discovered by you while in the service of the Company in connection with, or in any way affecting the business of, the Company or which is capable of being used or adapted for use therein or in connection therewith shall immediately be disclosed to the Company and shall belong to, and be the absolute property of, the Company.

 

	
14.3
	
You agree that if you are required to do so, whether during or after termination of this Contract at the expense of the Company or its nominees, you will apply or join in applying for letters patent or other similar protection in the United Kingdom or other part of the world for any Intellectual Property and execute all instruments and do all things necessary for vesting of the said letters patent or other similar protection when obtained and all right and title to and interest in the same in the Company absolutely as the sole beneficial owner or in any other such person as the Company may nominate.

 

	
14.4
	
If called upon reasonably to do so by the Company you will execute a power of attorney in such form as the Company may require irrevocably appointing the Company to be your attorney in your name and on your behalf to execute and do any such instrument or thing and generally to use your name for the purpose of giving to the Company the full benefit and provisions of this clause.

 

	
14.5
	
The rights and obligations under this clause shall continue in force after termination of this Contract in respect of Intellectual Property made during your employment and shall be binding upon your representatives.

 

	
15.
	
EXPENSES

 

	
15.1
	
The Company will meet all reasonable expenses wholly, properly and necessarily incurred by you in the course of your employment in accordance with its Expenses Policy, which can be found in the Employee Handbook, and upon your production of appropriate receipts and any other supporting documentation as required.

 

	
16.
	
OTHER EMPLOYMENT

 

	
16.1
	
You may not, without the prior written consent of a Director of the Company which shall not be unreasonably withheld, engage in any form of business or employment other than your employment with the Company whether inside or outside your normal hours of work.

 

	
16.2
	
Nothing in this clause 16 shall prevent you from holding or otherwise being interested in any shares or other securities of any company which are for the time being quoted on any recognised stock exchange, so long as that interest in such shares or other securities does not extend to more than 5% of the total amount of such shares or securities.

 

	
17.
	
HEALTH AND SAFETY

 

	
17.1
	
In accordance with the requirements of the Health and Safety at Work Act 1974, the Company has a Health and Safety Policy Statement. A copy of this is contained in the Employee Handbook. You must read and ensure you are familiar with the Health and Safety Policy in the Employee Handbook. You will be expected to use any safety equipment provided by the Company and to take responsibility for your own health and safety as well as that of others.

 

	
17.2
	
If you work at the Company’s research partners’ premises you must ensure that you familiarise yourself and comply with site-specific Health and Safety requirements.

 

	
17.3
	
Any breach of the Health and Safety rules and procedures will be subject to the Disciplinary Procedure.

 

9

 

 

	
18.
	
COLLECTIVE AGREEMENTS

 

	
18.1
	
There are no collective agreements in force affecting your employment.

 

	
19.
	
PROCESSING OF INFORMATION

 

	
19.1
	
You consent to the Company and its appointed agents where reasonably necessary, holding and processing, both electronically and manually, the data that it collects in relation to you and your employment. This will include other personal data that they require for the purposes of this employment. This will be for the purposes of the Company’s management and administration of its employees and its business and/or for compliance with applicable procedures, laws and regulations and to the storage, transfer and processing by the Company or its agent(s) of such data. The records that the Company holds and processes will include, but are not limited to, personal details held within the personnel records and information concerning sickness and absence.

 

	
20.
	
MONITORING OF E-MAILS, INTERNET AND TELEPHONE CALLS

	
20.1
	
There are times when the Company may need to monitor the use of e-mails, the Internet and telephone calls made by its Directors and employees, for example, to investigate suspected misuse or breaches of the law or Company rules and procedures. By signing this Contract, you consent to the Company so doing. Further details are set out in the Employee Handbook.

 

	
21.
	
RESTRICTIVE COVENANTS

 

Definitions:

 

“Customer” means any customer or client of the Company in connection with the Restricted Business or any other person, firm or company to whom the Company has presented to or approached or with whom the Company has negotiated with a view to that person becoming a customer or client of the Company in connection with the Restricted Business and who became a customer within six months following the Termination Date and in each case provided that during the twelve month period immediately prior to the Termination Date you have dealt or sought to deal on behalf of the Company with that customer, client or person or you have been responsible during such period for that customer, client or person;

 

“Termination Date” means the date on which your employment with the Company ceases;

 

“Restricted Business” means services relating to research and development and commercialisation of gene therapy medicine but limited to services of a kind with which you were concerned, or involved in, during the course of your employment with the Company during the twelve month period immediately prior to the Termination Date or for which you have been responsible during such period;

 

“Restricted Person” means any person who has at any time in the period of twelve months prior to the Termination Date been employed by the Company or who is a consultant to the Company and in either case works in a senior executive or a senior technical or senior advisory capacity in the Restricted Business and who was known to, or worked with, you during that period.

 

	
21.1
	
Non-competition

 

In order to protect the legitimate business interests of the Company you shall not, for a period of six months after the Termination Date either on your own account or by or in association with any other person, directly or indirectly engage in, or be concerned with, any trade or business which is in competition with the Restricted Business.

 

	
21.2
	
Non-solicitation of customers

 

You shall not, for a period of six months after the Termination Date either personally or by an agent and either on your own account or by or in association with any other person or otherwise, directly or indirectly canvass, solicit, approach or seek out or cause to be canvassed, solicited, approached or sought out any Customer for orders or instructions in respect of any goods or services provided or supplied by the Company in connection with the Restricted Business.

 

10

 

 

	
21.3
	
Non-dealing with customers

 

You shall not, for a period of six months after the Termination Date either personally or by an agent and either on your own account or by or in association with any other person or otherwise, directly or indirectly engage in the Restricted Business with any Customer.

 

	
21.4
	
Non-solicitation of employees

 

You shall not, during your employment or for a period of six months after the Termination Date either personally or by an agent and either on your own account or for or in association with any other person, directly or indirectly solicit, endeavour to entice away, induce to break their contract of employment or offer employment to any Restricted Person.

 

	
21.5
	
Non-interference with supplies

 

You shall not, for a period of six months after the Termination Date either personally or by an agent and either on your own account or for or in association with any other person, directly or indirectly interfere or seek to interfere or take such steps as may be likely to interfere with the continuance of supplies to the Company in respect of the Restricted Business (or the terms relating to such supplies) from any supplier or seek to damage the relationship between any supplier and the Company who has supplied goods or services to the Company in the twelve month period immediately prior to the Termination Date by the Company.

	
21.6
	
General

 

You undertake with the Company that you will observe any substitute restrictions (in place of those set out above) as the Company may from time to time specify in writing which are in all respects less restrictive in extent than those specified above.

 

Each of the restrictions in this clause 21 is intended to be separate and severable. If any of the restrictions shall be held to be void but would be valid if part of their wording were deleted, such restriction shall apply with such deletion as may be necessary to make it valid or effective.

 

In the event that for a period immediately preceding the Termination Date you shall have been placed on garden leave in accordance with clause 11.5, the periods after the Termination Date referred to in this clause 21 shall be reduced by a period equal to the period of such suspension immediately preceding the Termination Date.

 

If any breach or violation of any of the terms of the restrictions in this clause occurs, you and the Company agree that damages alone may not compensate for such breach or violation and that injunctive relief is reasonable and essential to safeguard the interests of the Company and that an injunction in addition to any other remedy may accordingly be obtained by the Company. No waiver of any such breach or violation shall be implied from the forbearance or failure by the Company to take action in respect of such breach or violation.

 

You fully understand the meaning and effect of the covenants given by you in this Contract and confirm, acknowledge and accept that the covenants and restrictions are fair and reasonable in all the circumstances at the time this Contract was made.

 

You hereby agree that if you are offered employment by any third party, you will provide that prospective employer with a copy of this clause in this Contract before commencing any employment with that prospective employer.

 

	
22.
	
GOVERNING LAW

	
22.1
	
Your terms of employment with the Company are governed by English law and the parties submit to the exclusive jurisdiction of Courts of England and Wales. The invalidity or un- enforceability of any provision of this Contract shall not affect the validity or enforceability of any other provision of this Contract.

 

	
23.
	
VARIATION OF TERMS

	
23.1
	
The Company reserves the right to vary and amend the terms and conditions of employment from time to time and will give you reasonable notice of any such change.

 

	
24.
	
CANCELLATION OF EARLIER AGREEMENTS

 

11

 

 

	
24.1
	
This Contract supersedes all earlier agreements or arrangements between you and the Company or any associates, subsidiaries or group companies.

 

	
25.
	
THIRD PARTY RIGHTS

 

	
25.1
	
No person other than you and the Company may enforce any terms of this Contract.

 

I have read and understood the terms and conditions set out in this Contract and agree to them. I also confirm that I am not in breach of any former or existing terms of employment or any other legally binding obligation owed to any person or entity.

 

 

		
	
Hubert Gaspar

	
 
	
 

	
Signed: 
	
/s/ Bobby Gaspar

	
 
	
 

	
Dated: 
	
12/8/2017

	
 
	
 

	
 
	
 

	
On behalf of Orchard Therapeutics Ltd

	
 
	
 

	
Name:
	
Mark Rothera

	
 
	
 

	
Title:
	
President & CEO

	
 
	
 

	
Signed:
	
/s/ Mark Rothera

	
 
	
 

	
Dated:
	
1/8/2018

 

 

 

12

 

 

24 May 2019

CONFIDENTIAL

Dr Hubert Gaspar

[Address]

Dear Dr Gaspar

I am writing to confirm the terms of employment which are offered to you by Orchard Therapeutics (Europe) Limited ("the Company") with effect from 24 May 2019.

The Company proposes that the contract of employment between you and the Company which was signed by you on 8 January 2018 is varied as follows: 

	
1.
	
Clause 11.1 shall be amended so as to read as follows:

"Except where (a) the Company is entitled to terminate your employment by summary dismissal, (b) you are within your probationary period (including any extension), or (c) the provisions of clauses 26 or 27 apply, you are entitled to receive from, and are required to give, the Company six months' notice".

	
2.
	
By inserting new clause 26, which shall read as follows:

	
 
	
26.
	
COMPENSATION UPON TERMINATION outside a change of control period

Termination by the employee for Good Reason 

	
 
	
26.1
	
Subject to the remainder of this clause 26, if you give notice to terminate your employment as a direct consequence of the occurrence of a Good Reason (as defined in clause 26.2) and after following the Good Reason Process (as set out in clause 26.3) you shall be entitled to receive:

	
 
	
(a)
	
an amount equal to nine months of your Basic Salary, subject to deductions for income taxation and national insurance contributions (the "Severance Payment");

	
 
	
(b)
	
notwithstanding anything to the contrary in the Company's bonus plan for senior executives, as in effect from time to time, an amount equal to your annual cash incentive compensation for the year prior to the year in which your employment terminates, but only to the extent that it (i) has not already been paid, and (ii) otherwise would have been earned if you had remained employed through the payment date (the "Prior Year Bonus");

	
 
	
(c)
	
either (such option to be at the Company’s election and in accordance with applicable law):

	
 
	
(i)
	
to the extent permissible under the rules of the relevant schemes, continued coverage under the Health Insurance Scheme, the LTD Scheme, the Critical Illness Scheme and Death in Service Scheme following the termination of your employment on the terms currently available to you and subject to the rules of the relevant scheme and the terms of any related policy of insurance as amended from time to time; or

	
 
	
(ii)
	
an amount equal to the cost to the Company of providing coverage to you under the Health Insurance Scheme, the LTD Scheme, the Critical Illness Scheme and Death in 

Orchard Therapeutics (Europe) Limited

Address: 108 Cannon Street, London, EC4N 6EU

Phone: +44 (0) 20 3808 8286
Website: www.orchard-tx.com
Company Number: 09759506

 

	
 
		
Service Scheme following the termination of your employment at the premium rate which applied immediately prior to the termination of your employment; 

either option being termed the "Benefits" and in either case such Benefits shall be provided for a period of nine months; and

	
 
	
(d)
	
either (such option to be at your election): 

	
 
	
(i)
	
a contribution by the Company of up to £15,000 towards the cost of services to be provided to you by an outplacement services provider to be selected by the Company, provided that you begin utilising such services no later than one month after the termination of your employment, such payment to be made directly to the provider following receipt of appropriate invoices addressed to you; or

	
 
	
(ii)
	
the amount of £11,250 in lieu of a contribution towards the cost of outplacement services;

either option being termed the "Outplacement".

	
 
	
26.2
	
For the purpose of this clause 26, "Good Reason" means the occurrence of any of the following events without your express consent:

	
 
	
(a)
	
a material diminution in your responsibilities, authority or duties, provided that any organisational change that results only in a change in your reporting structure or arises from your suspension for the purpose of a disciplinary investigation or a disciplinary sanction issued to you by the Company pursuant to the Company's Disciplinary Procedures shall not constitute a material diminution in your responsibilities, authority or duties;

	
 
	
(b)
	
a material diminution in your Basic Salary, except for across-the-board salary reductions based on the Company's financial performance similarly affecting all or substantially all senior management employees of the Company; 

	
 
	
(c)
	
a material change in the geographic location at which you are required to provide services to the Company; or

	
 
	
(d)
	
a material breach of this agreement by the Company.

	
 
	
26.3
	
For the purpose of this clause 26, "Good Reason Process" means that:

	
 
	
(a)
	
you have reasonably determined in good faith that one of the Good Reason conditions listed in clause 26.2(a) to 26.2(c) has occurred;

	
 
	
(b)
	
you have notified the Company in writing of the first occurrence of the Good Reason condition within 60 days of the first occurrence of such condition; 

	
 
	
(c)
	
you have cooperated in good faith with the Company’s efforts, for a period not less than 30 days following such notice (the "Cure Period"), to remedy the condition;

	
 
	
(d)
	
notwithstanding such efforts, the Good Reason condition continues to exist; and 

	
 
	
(e)
	
you have terminated your employment by giving notice to the Company within 60 days following 

Orchard Therapeutics (Europe) Limited

Address: 108 Cannon Street, London, EC4N 6EU

Phone: +44 (0) 20 3808 8286
Website: www.orchard-tx.com
Company Number: 09759506

 

	
 
		
the conclusion of the Cure Period.

	
 
	
26.4
	
For the avoidance of doubt, the parties agree that if the Company cures the Good Reason condition during the Cure Period, Good Reason shall be deemed not to have occurred and you shall have no rights in connection with or under this clause 26.

	
 
	
26.5
	
The entitlements under clause 26.1 above shall replace any entitlement to notice under clause 11 of this agreement and shall be inclusive of any statutory entitlement to which you would be entitled on termination of your employment.

Termination by the Company without Cause 

	
 
	
26.6
	
Subject to the remainder of this clause 26, if the Company gives notice to terminate your employment without Cause (as defined in clause 27.10), you shall be entitled to receive:

	
 
	
(a)
	
six months' written notice in writing from the Company.  The Company may exercise its rights under clauses 11.4 (Payment in Lieu of Notice) or 11.5 (Garden Leave) of this agreement at any time during that period;

	
 
	
(b)
	
an amount equal to three months of your Basic Salary, subject to deductions from income taxation and national insurance contributions (the "Without Cause Severance Payment");

	
 
	
(c)
	
the Prior Year Bonus; 

	
 
	
(d)
	
the Benefits for a period of nine months (save that where you are required to work your notice period, or serve your notice period on garden leave, the time such period shall be reduced pro rata for the period of the notice); and

	
 
	
(e)
	
the Outplacement.

Payment Terms

	
 
	
26.7
	
The Severance Payment, the Without Cause Severance Payment and any Benefits payment pursuant to clauses 26.1(c)(ii) shall be paid to you in substantially equal monthly instalments in accordance with the Company's payroll practice following the termination of your employment.  

	
 
	
26.8
	
The Prior Year Bonus (if applicable) shall be paid in a lump sum when such amount is actually determined and annual bonuses are paid out to executives of Orchard Therapeutics North America for the relevant period, provided that the Prior Year Bonus (if applicable) shall be paid no later than the 15 March following date on which your employment terminates.

	
 
	
26.9
	
Whichever of the Benefits options is paid or provided to you, it shall cease upon you receiving equivalent cover via a new employment or through spouse or partner coverage, and you shall be obliged to notify the Company within seven days of obtaining new employment on such terms or otherwise receiving equivalent cover.

	
 
	
26.10
	
Each of the Severance Payment, Without Cause Severance Payment, Prior Year Bonus and any Benefits and Outplacement payments shall be subject to deductions for income taxation and national insurance contributions, and you undertake to be responsible for any income tax or employees' national insurance contributions due in respect of such benefits and to indemnify the Company in respect of the same.

Orchard Therapeutics (Europe) Limited

Address: 108 Cannon Street, London, EC4N 6EU

Phone: +44 (0) 20 3808 8286
Website: www.orchard-tx.com
Company Number: 09759506

 

	
 
	
26.11
	
The payments and benefits referred to in this clause 26 shall be subject to and conditional on you signing a settlement agreement in a form and manner acceptable to the Company within 60 days of the date on which your employment terminates and which shall include, without limitation, a general release of contractual and statutory claims against the Company and all related persons and entities and a reaffirmation of all of your continuing obligations to the Company under this agreement or any other agreement between you and the Company which are expressed to survive termination of your employment (including but not limited to clauses 13 (Confidentiality), 14 (Intellectual Property) and 21 (Restrictive Covenants) of this agreement).

	
3.
	
By inserting new clause 27, which shall read as follows:

	
 
	
27.
	
COMPENSATION UPON TERMINATION within a change of control period

Termination by the employee for Good Reason within a change of control period

	
 
	
27.1
	
This clause 27 shall apply in lieu of and shall supersede the provisions of clause 26 if such termination of employment occurs within 12 months after the occurrence of the first event constituting a Change in Control of the Parent (such period, the "Change in Control Period").  For the avoidance of doubt, the provisions of this clause 27 shall terminate and be of no further force or effect beginning 12 months after the occurrence of a Change in Control of the Parent.

	
 
	
27.2
	
Subject to the remainder of this clause 27, if during the Change in Control Period your employment is terminated by the Company without Cause or you terminate your employment for a Good Reason as defined in clause 26.2 and after following the Good Reason Process set out in clause 26.3, you shall be entitled to receive:

	
 
	
(a)
	
an amount equal to twelve months of your Basic Salary (or your Basic Salary in effect immediately prior to the Change in Control of the Parent, if higher), subject to deductions for income taxation and national insurance contributions (the "CIC Good Reason Severance Payment"); and

	
 
	
(b)
	
an amount equal to your target annual bonus compensation for the financial year in which your employment terminates (the "Target Bonus"); 

	
 
	
(c)
	
the Benefits for a period of 12 months; and

	
 
	
(d)
	
the Outplacement.

	
 
	
27.3
	
The entitlements set out under clause 27.2 above shall replace any entitlement to notice under clause 11 of this agreement and shall be inclusive of any statutory entitlement to which you would be entitled on termination of your employment.

Termination by the Company without Cause 

	
 
	
27.4
	
Subject to the remainder of this clause 27, if the Company gives notice to terminate your employment without Cause (as defined in clause 27.10), you shall be entitled to receive:

	
 
	
(a)
	
six months' written notice in writing from the Company.  The Company may exercise its rights under clauses 11.4 (Payment in Lieu of Notice) or 11.5 (Garden Leave) of this agreement at any time during that period;

Orchard Therapeutics (Europe) Limited

Address: 108 Cannon Street, London, EC4N 6EU

Phone: +44 (0) 20 3808 8286
Website: www.orchard-tx.com
Company Number: 09759506

 

	
 
	
(b)
	
an amount equal to six months of your Basic Salary, subject to deductions from income taxation and national insurance contributions (the "CIC Without Cause Severance Payment");

	
 
	
(c)
	
the Target Bonus; 

	
 
	
(d)
	
the Benefits for a period of 12 months (save that where you are required to work your notice period, or serve your notice period on garden leave, the time such period shall be reduced pro rata for the period of the notice); and

	
 
	
(e)
	
the Outplacement.

Payment Terms

	
 
	
27.5
	
The CIC Good Reason Severance Payment, the CIC Without Cause Severance Payment and the Target Bonus shall be paid in a lump sum within sixty days of date on which your employment terminates.

	
 
	
27.6
	
Whichever of the Benefits options is paid or provided to you, it shall cease upon you receiving equivalent cover via a new employment or through spouse or partner coverage, and you shall be obliged to notify the Company within seven days of obtaining new employment on such terms or otherwise receiving equivalent cover.

	
 
	
27.7
	
Each of the CIC Good Reason Severance Payment, the CIC Without Case Severance Payment, the Target Bonus and any Benefits and Outplacement payments shall be subject to deductions for income taxation and national insurance contributions, and you undertake to be responsible for any income tax or employees' national insurance contributions due in respect of such benefits and to indemnify the Company in respect of the same.

	
 
	
27.8
	
Without prejudice to any other provision of this agreement and subject to the remainder of this clause if during the Change in Control Period your employment is terminated by the Company without Cause or you terminate your employment for a Good Reason as defined in clause 26.2 and after following the Good Reason Process set out in clause 26.3, then the Company shall procure that notwithstanding anything to the contrary in any applicable option agreement or other stock-based award agreement, all stock options and other stock-based awards held by you ("Equity Awards") you hold shall immediately accelerate and become fully exercisable or nonforfeitable as of the later of the date on which your employment terminates or the date of the settlement agreement entered into pursuant to clause 27.9 below (the "Accelerated Vesting Date"), provided that any termination or forfeiture of the unvested portion of such Equity Awards that would otherwise occur on the date on which your employment terminates in the absence of this clause 27.7 will be delayed until the date of the settlement agreement entered into pursuant to clause 27.9 below, and will only occur if the settlement agreement does not become effective; and

	
 
	
27.9
	
The payments and benefits referred to in this clause 27 shall be subject to and conditional on you signing a settlement agreement in a form and manner acceptable to the Company within 60 days of the date on which your employment terminates and which shall include, without limitation, a general release of contractual and statutory claims against the Company and all related persons and entities and a reaffirmation of all of your continuing obligations to the Company under this agreement or any other agreement between you and the Company which are expressed to survive termination of your employment (including but not limited to clauses 13 (Confidentiality), 14 (Intellectual Property) and 21 (Restrictive Covenants) of this agreement).

Orchard Therapeutics (Europe) Limited

Address: 108 Cannon Street, London, EC4N 6EU

Phone: +44 (0) 20 3808 8286
Website: www.orchard-tx.com
Company Number: 09759506

 

Definitions

	
 
	
27.10
	
For the purpose of clauses 26 and 27:

	
 
	
(a)
	
Cause" shall mean

	
 
	
(i)
	
your arrest for or conviction of a crime;

	
 
	
(ii)
	
your material breach of this agreement or other obligation to the Company; 

	
 
	
(iii)
	
your gross or wilful negligence in performing your duties or material failure to perform your duties; 

	
 
	
(iv)
	
your wilful failure or refusal to accept, acknowledge or carry out the Company’s lawful and reasonable written direction; 

	
 
	
(v)
	
your conduct which is unlawful, fraudulent, dishonest, creates a conflict of interest with the Company, causes material damage to the Company or materially interferes with the Company’s business operations.

	
 
	
(b)
	
"Change in Control of the Parent" shall mean a "Sale Event" as defined in Orchard Therapeutics plc 2018 Share Option and Incentive Plan.

	
4.
	
You acknowledge that because of the nature of your duties and the particular responsibilities arising as a result of such duties owed to the Company, you have knowledge of Confidential Information (including but not limited to details of customers and suppliers), and you are therefore in a position to harm the Company's legitimate business interests if he were to make use of such Confidential Information for your own purposes or for the purposes of another.  Accordingly, in consideration of the benefits provided to you under new clauses 26 and 27, clause 21 is amended to: 

	
 
	
(a)
	
replace the word "six" in clauses 21.2 and 21.4 with the word "nine"; 

	
 
	
(b)
	
replace the word "six" in clauses 21.3 and 21.5 with the word "twelve"; and

	
 
	
(c)
	
add the following wording at the end of clause 21.6 "None of the restrictions in clause 21 shall prevent you from holding an investment by way of shares or other securities of not more than 5 per cent. of the total issued share capital of any company whether or not it is listed or dealt in on any recognised stock exchange".

Please sign a copy of this letter in the space indicated below to confirm your acceptance of these terms and return a copy to me.

Yours sincerely

For and on behalf of Orchard Therapeutics (Europe) Limited

 

I, Dr Hubert Gaspar, confirm my agreement to the variations to my contract of employment which are outlined in this letter.

 

	
	
/s/ Hubert Gaspar

	
Dr Hubert Gaspar

	
 

	
Date: 28 May 2019

 

Orchard Therapeutics (Europe) Limited

Address: 108 Cannon Street, London, EC4N 6EU

Phone: +44 (0) 20 3808 8286
Website: www.orchard-tx.com
Company Number: 09759506

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