Document:

prtk-ex109_9.htm

Exhibit 10.9

 

PARATEK PHARMACEUTICALS, INC. 

NON-EMPLOYEE DIRECTOR COMPENSATION POLICY

Each member of the Board of Directors (the "Board") who is not also serving as an employee of Paratek Pharmaceuticals, Inc. (the "Company") or any of its subsidiaries (each such member, an "Eligible Director") will receive the compensation described in this Non-Employee Director Compensation Policy for his or her Board service. This Non-Employee Director Compensation Policy is effective on January 1, 2022 (the "Effective Date"). An Eligible Director may decline all or any portion of his or her compensation by giving notice to the Company prior to the date for which service begins for a cash payment, or the date of grant for an equity award, as the case may be (e.g., an election to decline the cash payment to be made for a quarter must be made prior to the date the quarter begins). This policy may be amended at any time in the sole discretion of the Board or the Compensation Committee of the Board, and supersedes any prior policies related to compensation of Eligible Directors. 

Annual Cash Compensation 

The annual cash compensation amount set forth below is payable in equal quarterly installments, payable in arrears on the last day of each fiscal quarter in which the service occurred. If an Eligible Director joins the Board or a committee of the Board at a time other than effective as of the first day of a fiscal quarter, each annual retainer set forth below will be pro-rated based on days served in the applicable fiscal year, with a pro-rated amount paid for the first fiscal quarter in which the Eligible Director provides the service, and regular full quarterly payments thereafter. All annual cash fees are vested upon payment. 

	
 
	
1.
	
Annual Board Service Retainer: 

a. All Eligible Directors: $45,000 

	
 
	
2.
	
Annual Committee Chair Service Retainer: 

	
 
	
a.
	
Chairman of the Audit Committee: $20,000 

	
 
	
b.
	
Chairman of the Compensation Committee: $15,000 

	
 
	
c.
	
Chairman of the Nominating and Corporate Governance Committee: $10,000 

	
 
	
3.
	
Annual Committee Member Service Retainer (other than Chairman): 

	
 
	
a.
	
Member of the Audit Committee: $10,000 

	
 
	
b.
	
Member of the Compensation Committee: $7,500 

	
 
	
c.
	
Member of the Nominating and Corporate Governance Committee: $5,000 

Equity Compensation 

The stock options and restricted stock units set forth below will be granted under the Company's 2015 Equity Incentive Plan (the "Plan”). All stock options granted under this policy will be non-statutory stock options, with an exercise price per share equal to 100% of the Fair Market Value (as defined in the Plan) of the underlying Common Stock on the date of grant, and a term of ten years from the date of grant (subject to earlier termination in connection with a termination of service as provided in the Plan). In addition to the vesting schedules described below, in the event of a Change in Control or a Corporate Transaction (each, as defined in the Plan), any unvested portion of the stock options and restricted stock units described below will fully vest and become exercisable as of immediately prior to 

 

 

the effective time of such Change in Control or Corporate Transaction, subject to the Eligible Director's Continuous Service (as defined in the Plan) on the effective date of such transaction. 

 

	
 
	
1.
	
Initial Grant: On the last trading day of the month in which an Eligible Director is initially elected or appointed to the Board (or if there is no trading day in that month on or after the date of election or appointment of the Eligible Director, then on the last trading day of the month following the month in which an Eligible Director is initially elected or appointed to the Board), the Eligible Director will be granted automatically, without further action by the Board or Compensation Committee of the Board, (i) stock options to purchase 12,800 shares of the Company's Common Stock and (ii) Restricted Stock Units (RSUs) representing 19,200 shares of the Company’s Common Stock. The shares subject to each such (i) stock option will vest as to 1/36 of the shares on the last day of the month following the month of the date of grant, and on the last day of each successive month thereafter until fully vested, and (ii) 1/3 of the RSUs will vest on each successive one-year anniversary following the grant date over a three-year period, in either case, subject to the Eligible Director's Continuous Service (as defined in the Plan) through such vesting dates. No Initial Grant will be granted to an Eligible Director who is already serving as a director on the Effective Date. 

	
 
	
2.
	
Annual Grant:  At the Compensation Committee meeting held in January or February of each year for the purpose of granting executives annual equity incentive awards following the Effective Date or, if a Compensation Committee meeting is not held by the end of February of any year, on the last trading date in February of such year following the Effective Date, each Eligible Director who continues to serve as a non-employee member of the Board on such date will be granted automatically, without further action by the Board or Compensation Committee of the Board Restricted Stock Units (RSUs) representing 20,000 shares of the Company’s Common Stock.  The shares subject to each such RSU will vest on the one-year anniversary following the grant date, subject, in either case, to the Eligible Director's Continuous Service (as defined in the Plan) through such vesting date.

Expenses 

The Company will reimburse Eligible Directors for ordinary, necessary and reasonable out-of-pocket travel expenses to cover in-person attendance at and participation in Board and/or Committee meetings. 

 

 

 

 

 

 

2

FINAL approved by CC (February 16, 2022)prtk-ex1040_494.htm

Exhibit 10.40

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

FIFTH AMENDMENT TO THE AMENDED AND RESTATED MANUFACTURING AND SERVICES AGREEMENT

This Fifth Amendment to the Amended and Restated Manufacturing and Services Agreement (the “Fifth Amendment”) is made as of January 11, 2022 (the “Effective Date”) by and between Paratek Pharmaceuticals, Inc., a Delaware corporation with a principal business address at 1000 First Avenue, Suite 200, King of Prussia, PA 19406 (“Paratek”) and CIPAN ̵̶ Companhia Industrial Produtora de Antibióticos, S.A., a corporation organized and existing under the laws of Portugal with an address at Rua da Estação, no42, 2600-726 Castanheira do Ribatejo, Portugal (“CIPAN” and together with Paratek, the “Parties”). Capitalized terms used, but not otherwise defined, herein shall have the meanings set forth in the Agreement. 

WHEREAS, Paratek and CIPAN are parties to that certain Amended and Restated Manufacturing and Services Agreement, dated April 18, 2018, as amended by the First Amendment, dated as of February 18, 2019, the Second Amendment, dated as of December 20, 2019, the Third Amendment, dated as of July 28, 2020 and the Fourth Amendment, dated as of December 16, 2020 (the “Agreement”); and

WHEREAS, the Parties now desire to amend the Agreement as set forth in this Fifth Amendment.

NOW THEREFORE, the Parties agree as follows:

	
1.
	
Fifth Amendment to the Agreement. The Agreement is amended and modified as follows:

	
 
	
a.
	
The following new definition shall be added to Section 1.1 in alphabetical order, and the numbering of the respective subsequent definitions shall be updated accordingly:

[***] has the meaning set forth in Section 7.1.1(ii).

	
 
	
b.
	
Section 7.1 is hereby amended and restated in its entirety as follows:

	
 
	
7.1
	
Delivery.  

	
 
	
7.1.1.
	
Method of Delivery. All Products shall be delivered either (a) [***] or (b) [***]. Paratek will specify in each purchase order submitted pursuant to Section 2.3 the mode of delivery for the Product being ordered. CIPAN will notify Paratek at least [***] prior to any shipment of Product. Time is of the essence for all deliveries of Products.

	
 
	
(i)
	
For Product being delivered [***], CIPAN is responsible for the arrangement of transport of Products from the Facility to the shipping destination specified in the purchase order. CIPAN will only use carriers approved by Paratek. All Products shall be suitably prepared and packed for shipment in suitable containers in accordance with sound commercial practices to ensure that Products are delivered in an undamaged condition. CIPAN shall mark the relevant purchase order number on each container and enclose an itemized packing list with such number with the shipment. CIPAN shall hold title to and bear all risk of loss or damage to Products and Materials prior to such item’s delivery to Paratek or its designee hereunder. CIPAN shall ensure that all Product held in storage is stored 

 

 

 

 

	
 
		
in accordance with the Specifications until delivery to Paratek under this Agreement and that all storage areas meet cGMP requirements.  

	
 
	
(ii)
	
For Product being delivered [***], CIPAN will store, at its cost and expense, the Product in a storage area that meets cGMP requirements and in accordance with the Specifications. CIPAN will inform Paratek on the date when the Product is available for shipment (but, for clarity, will continue to store such Product until Paratek requests that the Product be shipped from [***]). If requested by Paratek in writing, CIPAN will arrange for the transport (including exportation) of such Products, using a carrier approved by Paratek, from [***] to the shipping destination specified by Paratek and will invoice Paratek for the cost of such transport. All Products shall be suitably prepared and packed for shipment in suitable containers in accordance with sound commercial practices to ensure that Products can be transported in an undamaged condition after Paratek or its designee collect the Products. CIPAN shall mark the relevant purchase order number on each container and enclose an itemized packing list with such number with the shipment. CIPAN shall hold title to and bear all risk of loss or damage to Products and Materials prior to such item’s delivery to Paratek or its designee hereunder. Once the Product is delivered [***], (a) title to the Products will pass to Paratek and (b) subject to CIPAN’s obligations under this Agreement, including CIPAN’s obligation to store the Product in a storage area that meets cGMP requirements and in accordance with the Specifications, risk of loss or damage to the Products will pass to Paratek.  

	
 
	
7.1.2
	
Delays. In the event of any delay in delivery of Product from the delivery date on the applicable purchase order for such Product, if such delay is: [***], unless, in each case ((a) and (b)), such delay is due to a Force Majeure Event causing a worldwide shortage of the applicable Materials, in which case Article 17 shall apply.

	
 
	
c.
	
Section 10.3.1 is hereby amended and restated in its entirety as follows:

	
 
	
10.3.1.
	
Paratek shall have a period of [***] from (a) with respect to Product delivered [***] and (b) with respect to Product delivered [***] (the time period set forth in (a) and (b), as applicable based on the method of delivery, the “Inspection Period”) to inspect, or cause to have inspected by a Third Party designated by Paratek, any shipment of Products to determine whether such shipment conforms to Specifications or otherwise breaches CIPAN’s warranties set forth in this Agreement. Paratek shall give CIPAN notice of rejection (“Rejection Notice”) of any shipment of Products that, in whole or part, failed to meet Specifications or which otherwise breached CIPAN’s warranties set forth in this Agreement, in each case at the time of delivery pursuant to Section 7.1.

	
2.
	
General Provisions. Unless specifically modified or changed by the terms of the Fifth Amendment, all terms and conditions of the Agreement and the Quality Agreement, between the Parties, dated as of November 2, 2016 (as may be amended from time to time, “Quality Agreement”) shall remain in full force and effect and shall apply fully as described and set forth in the Agreement and Quality Agreement, respectively. In the event of any express conflict or inconsistency between the Fifth Amendment, on one hand, and the Agreement or Quality Agreement on the other hand, the terms and 

 

 

 

 

		
conditions of the Fifth Amendment shall control. This Fifth Amendment, the Quality Agreement and the Agreement constitute the entire understanding among the parties regarding subject matters contained therein and herein and supersede all prior negotiations, commitments, agreements and understandings among them on such subject matters. This Fifth Amendment may be executed in any number of counterparts, either by original or facsimile counterpart, each such counterpart shall be deemed to be an original instrument, and all such counterparts together shall constitute but one agreement. This Fifth Amendment and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the law of the [***], without regard to the conflict of laws principles thereof.

 

 

 

 

 

 

 

 

IN WITNESS WHEREOF, each Party has caused this Fifth Amendment to be executed by its duly authorized representatives as of the Effective Date. 

 

PARATEK PHARMACEUTICALS, INC.

		
	
By:
	
/s/ Jason Burdette

	
Name:
	
Jason Burdette

	
Title:
	
SVP, Technical Operations

 

 

CIPAN Companhia Industrial Produtora de AntibiÓticos, S.A.

		
	
By:
	
/s/ Daniel Rivero

	
Name:
	
Daniel Rivero

	
Title:
	
Industrial Director

 

[Signature Page to CIPAN Amendment #5]

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