Document:

Exhibit 10.15

 

COLLEGIUM PHARMACEUTICAL, INC.

 

Restricted Stock Award Agreement
  Under 2012 Stock Incentive Plan

 

THIS RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”) is made as of June 13, 2012 (the “Grant Date”) by and between Collegium Pharmaceutical, Inc., a Delaware corporation (the “Company”), and Michael Heffernan (the “Participant”).

 

WHEREAS, the Company maintains the 2012 Stock Incentive (the “Plan”) for the benefit of its employees, directors, consultants, and other individuals who provide services to the Company and its Affiliates and the Plan permits the granting of Restricted Stock; and

 

WHEREAS, in consideration for the Participant’s continued and future services to the Company and to further align the Participant’s financial interests with those of the Company’s stockholders, the Company’s Board of Directors (the “Board”) has approved this award of restricted Common Stock to Participant subject to the restrictions and on the terms and conditions contained in the Plan and this Agreement.

 

NOW, THEREFORE, in consideration of these premises and the agreements set forth herein, the parties, intending to be legally bound hereby, agree as follows:

 

1.                                      Award of Restricted Shares.  The Company hereby awards the Participant One Million Seven Hundred Seven Thousand Three Hundred Twenty Two (1,707,322) shares of restricted Common Stock, subject to the restrictions and on the terms and conditions set forth in this Agreement (the “Restricted Shares”).  The terms of the Plan are hereby incorporated into this Agreement by this reference, as though fully set forth herein.  Except as otherwise provided herein, capitalized terms used herein will have the same meaning as defined in the Plan.

 

2.                                      Forfeiture; Vesting of Restricted Shares.

 

(a)                                 No Transfer of Unvested Restricted Shares.  The Restricted Shares are subject to forfeiture to the Company until they become vested in accordance with this Section 2.  While subject to forfeiture, the Restricted Shares may not be sold, pledged, assigned, otherwise encumbered or transferred in any manner, whether voluntarily or involuntarily by the operation of law.

 

(b)                                 Unvested Shares Subject to Forfeiture.  Subject to the other subsections of this Section 2, upon any cessation of the Participant’s service with the Company (whether initiated by the Company, Participant or otherwise): (i) any Restricted Shares which have not vested pursuant to this Section 2 will immediately and automatically, without any action on the part of the Company or payment of any consideration to Participant, be forfeited, and (ii) the Participant will have no further rights with respect to such forfeited Restricted Shares.

 

(c)                                Vesting of Restricted Shares.  Subject to Participant’s continuous service with the Company through such date, the Restricted Shares will become vested (free from forfeiture pursuant to Section 2(b)) as to one thirty sixth (1/36th) of the Restricted Shares shall vest at the end of each monthly period after February 10, 2012, with all of the Restricted Shares

 

 

becoming vested on February 10, 2015.  All   For purposes of this Agreement, service with an Affiliate of the Company will be deemed to constitute service with the Company, for so long as such entity remains an Affiliate of the Company.

 

(d)                                 Acceleration of Vesting Upon a Sale Event.  Upon the occurrence of a Sale Event (as defined below), all of the unvested Restricted Shares will become vested and free from forfeiture pursuant to Section 2(b) immediately prior to the closing of such Sale Event.

 

(e)                                  Acceleration of Vesting Upon Termination Without Cause or For Good Reason Prior to a Sale Event.  If prior to a Sale Event either (i) Participant’s employment with the Company is terminated without Cause (as defined below) (other than in connection with a winding up of the Company not related to Sale Event) or (ii) Participant resigns for Good Reason (as defined below) (other than in connection with a winding up of the Company not related to Sale Event), then, provided that Participant executes, delivers and does not revoke a written release, in a form reasonably acceptable to the Company, of any and all claims against the Company and its directors, officers, affiliates, stockholders, agents, employees, successors and assigns as to all matters arising out of Participant’s employment by the Company, or termination thereof within 30 days of termination of Participant’s employment, then all of the unvested Restricted Shares will become immediately vested and free from forfeiture pursuant to Section 2(b).

 

(f)                                   Acceleration Upon Death or Disability.  If Participant’s employment with the Company is terminated due to his death or disability (within the meaning of Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”)), then all Restricted Shares will become immediately vested and free from forfeiture pursuant to Section 2(b).

 

(g)                                  Certain Definitions. The following capitalized terms as used in this Agreement shall have the meaning set forth below:

 

“Cause” for termination shall be deemed to exist upon Participant’s: (a) commission or conviction of any felony or any crime involving dishonesty; (b) commission of any fraud against the Company; (c) intentional and material damage to any material property of the Company; or (d) Participant’s knowing breach of any material provision of any invention and non-disclosure agreement or non-competition and non-solicitation agreement with the Company.  Before “Cause” under clause (c) or (d) has been deemed to have occurred, the Board must give Participant written notice detailing why the Board has determined that Cause has occurred.  Participant shall then, where the grounds for Cause are reasonably subject to cure within such time, have 30 days after Participant’s receipt of written notice to cure the item cited in the written notice so that “Cause” will have not formally occurred with respect to the event in question until such period, where applicable, shall have expired.

 

“Good Reason” shall mean the occurrence of any of the following, without Participant’s express written consent: (a) a material diminution of Participant’s duties or authority with the Company, reporting relationships or the assignment of duties and responsibilities inconsistent with Participant’s status at the Company; (b) a reduction in base salary, bonus potential or material reduction in benefits; or (c) the relocation of Participant’s primary place of employment to a location that is (i) more than 40 miles from the location of

 

 

Participant’s permanent primary place of employment and (ii) more than 40 miles from the location of Participant’s residence; (d) Participant’s removal from the Board for any reason other than death, resignation or in connection with termination of Participant’s employment. The Company shall then have 30 days after its receipt of written notice to cure the item cited in the written notice so that “Good Reason” will have not formally occurred with respect to the event in question until such period shall have expired.

 

“Sale Event” shall mean either: (i) a transaction or series of related transactions in which a person, or a group of related persons, acquires from stockholders of the Company shares representing more than fifty percent (50%) of the outstanding voting power of the Company (a “Stock Sale”); or (ii) a transaction that qualifies as a “Deemed Liquidation Event” as defined in the Company’s Certificate of Incorporation then in effect.

 

3.                                      Issuance of Shares.

 

(a)                                 The Company will cause the Restricted Shares to be issued in the Participant’s name either by book-entry registration or issuance of a stock certificate or certificates.  While the Restricted Shares remain forfeitable, the Company will cause an appropriate stop-transfer order to be issued and to remain in effect with respect to the Restricted Shares.  As soon as practicable following the time that any Restricted Share becomes vested (and provided that appropriate arrangements have been made with the Company for the withholding or payment of any taxes that may be due with respect to such share), the Company will cause that stop-transfer order to be removed.  The Company may also condition delivery of certificates for Restricted Shares upon receipt from the Participant of any undertakings that it may determine are appropriate to facilitate compliance with federal and state securities laws.

 

(b)                                 If any certificate is issued in respect of Restricted Shares, that certificate will include appropriate legends and will held in escrow by the Company’s secretary or his or her designee. In addition, the Participant shall be required to execute and deliver to the Company a stock power with respect to those Restricted Shares in substantially the form attached hereto as Exhibit A.  At such time as those Restricted Shares become vested, the Company will cause a new certificate to be issued without that portion of the legend referencing the previously applicable forfeiture conditions and will cause that new certificate to be delivered to the Participant (again, provided that appropriate arrangements have been made with the Company for the withholding or payment of any taxes that may be due with respect to such Shares).

 

4.                                      Substitute Property.  If, while any of the Restricted Shares remain subject to forfeiture, there occurs a merger, reclassification, recapitalization, stock split, stock dividend or other similar event or transaction resulting in new, substituted or additional securities being issued or delivered to the Participant by reason of the Participant’s ownership of the Restricted Shares, such securities will constitute “Restricted Shares” for all purposes of this Agreement and any certificate issued to evidence such securities will immediately be deposited with the secretary of the Company (or his or her designee) and subject to the escrow described in Section 3, above.

 

5.                                      Rights of Participant During Restricted Period.  The Participant will have the right to vote the Restricted Shares and to receive dividends and distributions with respect to the

 

 

Restricted Shares; provided, however, that any cash dividends or distributions paid in respect of the Restricted Shares while those shares remain subject to forfeiture will be placed in escrow with the secretary of the Company (or his or her designee) and will be delivered to the Participant (without interest) only if and when the Restricted Shares giving rise to such dividends or distributions become vested.

 

6.                                      Right of First Refusal.  Participant acknowledges the vested Restricted Shares are subject to, among other things, the restrictions on transfer, rights of first refusal and co-sale rights set forth in that certain Fourth Amended and Restated Stockholders’ Agreement dated as of February 10, 2012, as may be amended and/or restated from time to time (the “Stockholders Agreement”) by and among the Company, Participant and the other stockholders of the Company party thereto.

 

7.                                      Market Standoff Agreement.  The Participant agrees, in connection with the initial underwritten public offering of the Company’s securities pursuant to a registration statement under the Securities Act, (i) not to sell, make short sale of, loan, grant any options for the purchase of, or otherwise dispose of any shares of Common Stock held by the Participant (other than those shares included in the offering) without the prior written consent of the Company or the underwriters managing such initial underwritten public offering of the Company’s securities for a period of 180 days from the effective date of such registration statement (plus up to an additional 34 days to the extent requested by the managing underwriters for such offering in order to address Rule 2711(f) of the Financial Industry Regulatory Authority, Inc. or any similar successor provision), and (ii) to execute any agreement reflecting clause (i) above as may be requested by the Company or the managing underwriters at the time of such offering

 

8.                                    Securities Laws.  The Board may from time to time impose any conditions on the Restricted Shares as it deems necessary or advisable to ensure that the Restricted Shares are issued and sold in compliance with the requirements of any stock exchange or quotation system upon which the shares are then listed or quoted, the Securities Act of 1933 and all other applicable laws.

 

9.                                    Tax Consequences.

 

(a)                                 The Participant acknowledges that the Company has not advised the Participant regarding the Participant’s income tax liability in connection with the grant or vesting of the Restricted Shares.  The Participant has had the opportunity to review with his or her own tax advisors the federal, state and local tax consequences of the transactions contemplated by this Agreement.  The Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.  The Participant understands that the Participant (and not the Company) shall be responsible for the Participant’s own tax liability that may arise as a result of the transactions contemplated by this Agreement.

 

(b)                                 The Participant acknowledges and agrees that the Company has the right to deduct from payments of any kind otherwise due to the Participant any federal, state or local taxes of any kind required by law to be withheld with respect to the award of the Shares.

 

 

(c)                                  The Participant acknowledges and agrees that the Company has the right to deduct from payments of any kind otherwise due to the Participant any federal, state or local taxes of any kind required by law to be withheld with respect to the purchase of the Shares by the Participant or the lapse of the Purchase Option.  The Participant has reviewed with the Participant’s own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement.

 

(d)                                 If the Participant makes an election under Section 83(b) of the Code with respect to the grant of the Restricted Shares, the Participant agrees to notify the Company in writing on the day of such election.  The amount includible in the Participant’s income as a result of that election will be subject to tax withholding.  The Participant will be required to remit to the Company in cash, or make other arrangements reasonably satisfactory to the Company for the satisfaction of, such tax withholding amount; failure to do so within three business days of making the Section 83(b) election will result in forfeiture of all the Restricted Shares.  PARTICIPANT ACKNOWLEDGES THAT IT IS SOLELY THE PARTICIPANT’S RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF THE PARTICIPANT REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON THE PARTICIPANT’S BEHALF.

 

10.                               The Plan.  This Restricted Stock Award is subject to, and the Participant agrees to be bound by, all of the terms and conditions of the Plan, a copy of which has been provided to the Participant.  Pursuant to the Plan, the Board is authorized to adopt rules and regulations not inconsistent with the Plan as it shall deem appropriate and proper.  All questions of interpretation and application of the Plan shall be determined by the Board and any such determination shall be final, binding and conclusive.  As provided in the Plan, upon the occurrence of a Reorganization Event (as defined in the Plan), the repurchase and other rights of the Company hereunder shall inure to the benefit of the Company’s successor and shall apply to the cash, securities or other property which the Restricted Shares were converted into or exchanged for pursuant to such Reorganization Event in the same manner and to the same extent as they applied to the Restricted Shares under this Agreement.  If, in connection with a Reorganization Event, a portion of the cash, securities and/or other property received upon the conversion or exchange of the Restricted Shares is to be placed into escrow to secure indemnification or similar obligations, the mix between the vested and unvested portion of such cash, securities and/or other property that is placed into escrow shall be the same as the mix between the vested and unvested portion of such cash, securities and/or other property that is not subject to escrow..

 

11.                               Consent to Electronic Delivery.  The Participant hereby authorizes the Company to deliver electronically any prospectuses or other documentation related to this Agreement, the Plan and any other compensation or benefit plan or arrangement in effect from time to time (including, without limitation, reports, proxy statements or other documents that are required to be delivered to participants in such plans or arrangements pursuant to federal or state laws, rules or regulations).  For this purpose, electronic delivery will include, without limitation, delivery by means of e-mail or e-mail notification that such documentation is available on the Company’s intranet site.  Upon written request, the Company will provide to the Participant a paper copy of any document also delivered to the Participant electronically.  The authorization described in this paragraph may be revoked by the Participant at any time by written notice to the Company.

 

 

12.                               Entire Agreement.  This Agreement represents the entire agreement between the parties hereto relating to the subject matter hereof, and merges and supersedes all prior and contemporaneous discussions, agreements and understandings of every nature.

 

13.                               Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

 

14.                               Governing Law.  This Agreement will be construed in accordance with the laws of the State of Delaware, without regard to the application of the principles of conflicts of laws.

 

15.                               Amendment.  Subject to the provisions of the Plan, this Agreement may only be amended by a writing signed by each of the parties hereto.

 

16.                               Changes in Capitalization.  In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or other similar change in capitalization or event, the number of shares subject to forfeiture and other rights of the Company hereunder and such other relevant terms this Agreement that are affected by such stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or other similar change in capitalization or event shall be equitably adjusted by the Company (in the manner determined by the Board).

 

17.                               Execution.  This Agreement may be executed, including execution by facsimile signature, in one or more counterparts, each of which will be deemed an original, and all of which together shall be deemed to be one and the same instrument.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the Company’s duly authorized representative and the Participant have each executed this Restricted Stock Award Agreement as of the date first set forth above.

 

 

	
 
    	
COLLEGIUM   PHARMACEUTICAL, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Hefferan
    
	
 
    	
Name: Michael   Heffernan
    
	
 
    	
Title: President   and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PARTICIPANT:
    	
Michael   Heffernan
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Signature:
    	
/s/   Michael Heffernan
    
					

 

 

Exhibit A

 

STOCK ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED, I hereby sell, assign and transfer unto                                      (                  ) shares of Common Stock, $.001 par value per share, of Collegium Pharmaceutical, Inc. (the “Corporation”) standing in my name on the books of the Corporation represented by Certificate(s) Number          herewith, and do hereby irrevocably constitute and appoint                                              attorney to transfer the said stock on the books of the Corporation with full power of substitution in the premises.

 

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Michael   Heffernan
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Dated:Exhibit 10.16

 

May 30, 2012

 

Ernest Kopecky

1123 Darczuk Drive
 Garnet Valley, PA 19060

 

Re:                             Employment Agreement

 

Dear Ernest:

 

The letter agreement (“Agreement”) states the terms of your employment as Vice President, Clinical Development, for Collegium Pharmaceutical, Inc., a Delaware corporation (hereafter, “Collegium” or “Company”).

 

1.                                      Title; At-Will Employment.

 

(a)                                 As Vice President, Clinical Development, you shall be responsible for:

 

·                  Lead the development and execution of all clinical programs, including Phase I-III studies;

·                  Provide clinical and regulatory planning, management and strategy for products in development;

·                  Lead the development and implementation of scientific publications;

·                  Review and interpret FDA guidelines as it pertains to the Company’s products; and

·                  Lead the clinical development of the Company’s lead product through NDA submission and approval.

 

In addition, you will be responsible such other duties as may be reasonably assigned or delegated to you from time to time by the Company’s Chief Executive Officer.  In this capacity you shall report directly to the Chief Executive Officer of the Company or such other officer as directed by the Company’s Board of Directors (the “Board”).

 

(b)                                 This Agreement is not a guaranty of employment or a contract of employment and both you and Collegium are free to conclude this “at will” employment relationship at any time, with or without cause, for any reason or no reason.

 

2.                                      Compensation.

 

(a)                                 Salary.  Your semi-monthly salary rate will be $11,458.33 (for an annualized salary of $275,000).   Your salary shall be paid in accordance with Collegium’s standard payroll schedule and shall be subject to applicable withholding and other legal deductions.  You will be eligible for annual salary increases at the sole discretion of the Board.

 

(b)                                 Bonus.  You shall be eligible to receive an annual incentive bonus up to 30% of your base annualized salary, which shall be payable to you when annual bonuses are payable to other senior executives of the Company.  The goals and criteria for determining bonus eligibility shall be submitted by the Chief Executive Officer to the Compensation Committee of the Board for approval as part of the annual business planning process, and bonus determinations, including without limitation your attainment of applicable goals and criteria,  shall be made by the Compensation Committee of the Board in its sole discretion.  Any bonus shall be subject to applicable withholding and other legal deductions and your bonus eligibility for the first year will be prorated due to your starting in the middle of the current calendar year.

 

 

(c)                                  Stock Option Award.  Subject to approval by the Board, the Company will grant to you a stock option to purchase up to 500,000 shares (the “Shares”) of the Company’s Common Stock (subject to adjustment for stock splits, combinations, or other recapitalizations).  The option shall be an incentive stock option. Subject to your continued employment with the Company, the option will vest (i.e., become exercisable) over a period of four years with 1/4th of the shares vesting on the first anniversary of your date of hire and 1/48th of the shares at the end of each monthly period thereafter; provided, however, upon the closing of a Sale Event (as defined below), all of the then unvested Shares shall become fully vested and exercisable. The option will also be subject to the terms of the Company’s 2012 Stock Incentive Plan, as amended (the “Plan”), and the stock option agreement covering the option, which must be executed to effect the grant of any option.  You may be eligible for additional stock option awards on an annual basis at the sole discretion of the Board.

 

3.                                      Benefits; Vacation. During your employment, you will be eligible to participate in all benefit plans and programs made available by Collegium from time to time to employees generally, subject to plan terms and policies.  Such benefits currently include:

 

·                  Health and Dental Insurance.  Currently BCBS of Rhode Island.

·                  401k Plan.  You will be eligible to participate after three (3) full calendar months of employment.

·                  Group Life and LTD Insurance.  Per Company plan, currently at no cost to the employee.

·                  Flexible Spending Account.  This benefit allows you to set aside pre-tax dollars from your salary for medical expenses or dependent care.

 

Collegium periodically reviews its benefits, policies, benefits providers and practices and may terminate, alter or change them at its discretion from time to time.  In addition, you will be eligible for twenty (20) days of vacation per calendar year, without carryover of any unused vacation days from one calendar year to the next.

 

4.                                      Relocation Assistance.  Your acceptance of employment with the Company will require that you be available to work in the Company’s offices in New England. To assist you with your relocation and/or travel to New England, the Company will pay you $60,000, subject to applicable withholding and other legal deductions (“Relocation Assistance”).  One half of the Relocation Assistance ($30,000) shall be paid to you upon your hire date and the second half of the Relocation Assistance ($30,000) will be paid to you six (6) months after your hire date.  The Relocation Assistance is contingent upon your remaining continuously employed by the Company for at least twelve (12) months after your hire date.  You acknowledge and agree that if you voluntarily terminate your employment or your employment with the Company is terminated for Cause (as defined below) prior to twelve (12) months after your hire date, you shall repay the Company the entire amount of Relocation Assistance paid to you and the Company shall have the right to offset the amount of such Relocation Assistance against any other amounts payable to you by the Company.

 

5.                                      Termination and Termination Benefits:

 

(a)                                 Termination without Cause Prior to a Sale Event.  If prior to a Sale Event (as defined below) your employment with the Company is terminated without Cause (as defined below) (other than in connection with a winding up of the Company not related to Sale Event), then, provided that you execute, deliver and do not revoke a written release, in a form reasonably acceptable to the Company, of any and all claims against the Company and its directors, officers, affiliates, stockholders, agents, employees, successors and assigns as to all matters arising out of your employment by the Company, or termination thereof within 30 days of termination of your employment, you shall be eligible for the following severance benefits:

 

 

(A)                                     Separation Payments.  The Company shall continue to pay you your base salary in effect at the time of termination of your employment with the Company for the Severance Period (as defined below).  Such payments will be subject to applicable state and federal tax withholdings and paid in accordance with the Company’s normal payroll practices; and

 

(B)                                     Continuation of Health Insurance Benefits.  The Company also will provide you, at the Company’s expense and pursuant to the federal “COBRA” law, 29 U.S.C. § 1161 et seq., the same medical, dental and vision coverage for the duration of the Severance Period.

 

The benefits described in Section 5(a) will be paid or provided (or begin to be paid or provided) as soon as administratively practicable after the release described above becomes irrevocable, provided that if the 30 day period described above begins in one taxable year and ends in a second taxable year such payments or benefits shall not commence until the second taxable year.

 

(b)                                 Termination without Cause On or After a Sale Event.  If on or after a Sale Event your employment with the Company or the successor of such Sale Event is terminated without Cause (other than in connection with a winding up of the Company not related to a Sale Event) within twelve (12) months following the closing of the Sale Event, then, provided that you execute, deliver and do not revoke a written release, in a form reasonably acceptable to the Company, of any and all claims against the Company, the successor to the Company in a Sale Event and their respective directors, officers, affiliates, stockholders, agents, employees, successors and assigns as to all matters arising out of your employment by the Company, or termination thereof within 30 days of termination of your employment, you shall be eligible for the following severance benefits:

 

(A)                               Separation Payment.  The Company shall continue to pay you your base salary in effect at the time of termination of your employment with the Company for the Severance Period.  Such Separation Payments will be subject to applicable state and federal tax withholdings and paid in accordance with the Company’s normal payroll practices; and

 

(B)                               Continuation of Health Insurance Benefits.  The Company also will provide you, at the Company’s expense and pursuant to the federal “COBRA” law, 29 U.S.C. § 1161 et seq., the same medical, dental and vision coverage for the duration of the Severance Period.

 

The benefits described in Section 5(b) will be paid or provided (or begin to be paid or provided) as soon as administratively practicable after the release described above becomes irrevocable, provided that if the 30 day period described above begins in one taxable year and ends in a second taxable year such payments or benefits shall not commence until the second taxable year.

 

(d)                                 Termination for Cause.  The Company or its successor may immediately terminate your employment for Cause, whether prior to, on or after a Sale Event, without further liability on the part of the Company or its successor.  Unless otherwise specifically provided in this Agreement or otherwise required by law, all compensation and benefits payable to you under this Agreement shall terminate on the date of termination of your employment under this Agreement.

 

(e)                                  Definitions.  The following capitalized terms as used in this Agreement shall have the meaning set forth below:

 

“Cause” for termination shall be deemed to exist upon your: (a) commission or conviction of any felony or any crime involving dishonesty; (b) commission of any fraud against the Company; (c) intentional and material damage to any material property of the Company; or (d) your knowing breach of any material provision of any invention and non-disclosure agreement or non-competition and non-solicitation agreement with the Company.  Before “Cause” under clause (c) or (d) has been deemed to have occurred, the Board must give you

 

 

written notice detailing why the Board has determined that Cause has occurred.  You shall then, where the grounds for Cause are reasonably subject to cure within such time, have 30 days after your receipt of written notice to cure the item cited in the written notice so that “Cause” will have not formally occurred with respect to the event in question until such period, where applicable, shall have expired.

 

“Sale Event” shall mean either: (i) a transaction or series of related transactions in which a person, or a group of related persons, acquires from stockholders of the Company shares representing more than fifty percent (50%) of the outstanding voting power of the Company; or (ii) a transaction that qualifies as a “Deemed Liquidation Event” as defined in the Company’s Certificate of Incorporation then in effect.

 

“Severance Period” shall mean either (i) three (3) months if your employment is terminated by the Company without Cause within twelve (12) months of your date of hire by the Company or (ii) six (6) months your employment is terminated by the Company without Cause more than twelve (12) months from your date of hire by the Company.

 

6.                                      Full Time and Effort.  You shall devote your full business time, best efforts and business judgment, skill and knowledge to the advancement of Collegium’s interests and the discharge of your duties under this Agreement.  While you render services to Collegium, you agree that you will not engage in any other employment, consulting or other business activity without the written consent of Collegium after the approval of the Board.  You also agree to abide by all of Collegium’s written policies and procedures in effect from time to time that have been provided to you.

 

7.                                      Required Agreement. You will be required to execute a Non-Competition, Confidentiality and Inventions Agreement in the form enclosed herewith as a condition of your employment with the Company.

 

8.                                      Section 409A.  Notwithstanding anything to the contrary in this Agreement, no portion of the benefits or payments to be made under Section 5(a) hereof will be payable until you have a “separation from service” from the Company within the meaning of Section 409A of the Code.  In addition, to the extent compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of an additional tax under Section 409A of the Code to payments due to you upon or following his “separation from service”, then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement or arrangement), any such payments that are otherwise due within six months following your “separation from service” (taking into account the preceding sentence of this paragraph) will be deferred without interest and paid to you in a lump sum immediately following that six month period.  This paragraph should not be construed to prevent the application of Treas. Reg. § 1.409A-1(b)(9)(iii) (or any successor provision) to amounts payable hereunder.  For purposes of the application of Section 409A of the Code, each payment in a series of payments will be deemed a separate payment.  Notwithstanding anything herein to the contrary or otherwise, except to the extent any expense, reimbursement or in-kind benefit provided to you does not constitute a “deferral of compensation” within the meaning of Section 409A of the Code, and its implementing regulations and guidance, (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to you during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to you in any other calendar year, (ii) the reimbursements for expenses for which you are entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred and (iii) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.

 

9.                                      Miscellaneous.                This Agreement shall be governed by the laws of the State of Rhode Island without giving effect to principles of choice or conflicts of law.  The parties consent to the

 

 

jurisdiction of the state courts of the State of Rhode Island and the United States Court for the State of Rhode Island.  No waiver under this Agreement shall be effective unless made in writing signed by the waiving party.  The foregoing terms supersede any prior discussions, oral or written, which we have had relating to your employment and the other matters discussed in this letter, including without limitation the Confidential Offer Letter dated May 15, 2012.  By signing below you agree that in accepting these employment terms you have not relied on any other representations or agreements, express or implied, with respect to the terms of your employment that are not specified in this Agreement.

 

Sincerely,

 

	
COLLEGIUM PHARMACEUTICAL, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Michael T. Heffernan
    	
 
    
	
Name:
    	
Michael   T. Heffernan
    	
 
    
	
Title:
    	
President   and CEO
    	
 
    
	
 
    	
 
    	
 
    
	
I accept the foregoing term of employment with Collegium   Pharmaceutical:
    
	
 
    
	
 
    	
 
    
	
/s/ Ernest Kopecky
    	
 
    
	
Ernest Kopecky
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
May 30,   2012

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00243-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00243-of-00352.parquet"}]]