Document:

Exhibit 10.11

 

 

December 2, 2011

 

PERSONAL AND CONFIDENTIAL

 

By Hand Delivery

 

Scott Holmes

[Address]

 

Re:          Retention Letter

 

Dear Scott,

 

As you know, AMAG Pharmaceuticals, Inc. (“AMAG” or the “Company”) recently found it necessary to conduct a reduction in its workforce in order to bring expenses in line and position the organization for the future. The Company recognizes that this is a difficult time and wants to extend a sincere thank you for all of the hard work that you have contributed to this point. You are a highly valued and key employee, and going forward, AMAG needs your continued hard work and focus to help the Company realize its potential.  To that end, we are pleased to provide you with incentive — in the form of a retention bonus — to remain employed with the Company through at least the end of January 2013 as further described in this letter, subject to the terms and conditions outlined below.

 

1.             Retention Bonus Amount and Conditions:  If you fully perform your obligations under this Agreement (as described in detail below), the Company achieves or beats its aggregate operating expense target as set forth in the Board-approved 2012 Company operating Budget as of each of the six and twelve month periods ending June 30, 2012 and December 31, 2012, and you remain continuously employed by AMAG through each Payment Date described in this letter, the Company will pay you a retention bonus in the gross amount of eighteen thousand seven hundred and fifty dollars ($18,750.00) (the “Retention Bonus Amount”) on each Payment Date, for a total potential Retention Bonus Amount equal to thirty seven thousand five hundred dollars ($37,500.00).  If the Company does not achieve its aggregate operating expense targets as of either or both of the six and twelve month periods ending June 30 or December 31, 2012, but the Company is within twenty percent (20%) of such targets as of either such date, the Retention Bonus Amount applicable to such period will be reduced by the percentage by which the Company’s aggregate operating expenses exceed the Board-approved budget for such period, as determined by the Company’s Chief Executive Officer in his sole discretion.  Any Retention Bonus Amount will be paid to you within thirty (30) days following June 30 and December 31, 2012, respectively (each payment date is referred to herein as a “Payment Date”).  If the Company misses its aggregate operating expense target by more than twenty percent (20%) as of either the six or twelve-month periods ended June 30 or December 31, 2012, you will not be paid any portion of the Retention Bonus Amount for such period. Like your salary, any Retention Bonus Amount paid to you will be subject to all applicable taxes.

 

2.             Other Terms of Retention Bonus:  In order to be eligible for any Retention Bonus, in addition to achieving the 2012 operating expense targets described in paragraph 1 above, you must: (a) satisfactorily perform (as determined by AMAG) your job, as well as satisfactorily perform (as determined by AMAG) additional responsibilities that AMAG reasonably requests at all times up to and including each Payment Date; (b) continue in good standing and remain employed in the performance of your role (as determined by AMAG) at all times up to and including each Payment Date; (c) fully comply with the terms of this Agreement and all other agreements between you and the Company; and (d) keep the terms and existence of this letter strictly confidential.  .

 

3.             Termination by You or Termination for “Cause”:  In the event that you terminate your employment for any reason or the Company terminates your employment for “cause” (as determined by AMAG in its sole discretion) on or before any Payment Date, you agree that you will not be eligible for the Retention Bonus Amount with respect to each such subsequent Payment Date following the date of such termination.

 

4.             Termination by the Company Without “Cause”:  In the event that the Company terminates your employment without “cause” (as determined by AMAG in its sole discretion) prior to any Payment Date (including in connection with or following a change of control of the Company), the Company will provide you with (a) one hundred percent (100%) of the Retention Bonus Amounts payable to you on any Payment Date scheduled to occur after the date of

 

 

such termination and (b) nine (9) months of severance pay based on your then current base salary (paid in equal installments in accordance with the Company’s normal payroll practices and commencing on the date the release referred to herein can no longer be revoked ), subject to the terms and conditions outlined in Section 2 and provided that you execute a release of claims satisfactory to the Company at the time of termination.  The Retention Bonus Amount described in this Section 4 shall be paid to you within seven (7) days of the date that the release of claims becomes effective in accordance with its terms.

 

5.             No Modification of At-Will Relationship: Please note that this letter does not in any way modify or limit the at-will nature of your employment by the Company.  Nothing in this letter should be taken as a guarantee of continued employment, a specific term of employment and/or a contract of employment, and at all times you will be expected to meet the Company’s performance standards.

 

6.             Confidentiality:  The terms and conditions of this letter are strictly confidential.  You agree to not discuss or reveal any information concerning this letter to any past or present employee of the Company or any third person or entity other than your counsel, accountant and members of your family.  In the event you breach this provision, you agree that you will forfeit any rights you have to any Retention Bonus Amounts and/or repay to the Company any Retention Bonus Amounts already paid to you.

 

7.             General: This letter sets forth the complete agreement between you and the Company with respect to the payment to you of any Retention Bonus Amounts or severance amount.  This letter agreement shall be governed by, and all disputes arising hereunder shall be resolved in accordance with, the law of the Commonwealth of Massachusetts, without regard to the conflicts of law principles thereof.  This letter agreement may be executed by facsimile and in counterparts, each of which shall be considered an original, but all of which together shall constitute the same instrument.  In addition, the agreement set forth herein can only be modified or changed in writing signed by both parties hereto.  Any waiver of any provision of this letter agreement by the Company shall not constitute a waiver of any other provision of this letter agreement unless the Company expressly so indicates otherwise.  If any provision, section, subsection or other portion of this letter agreement shall be determined by any court of competent jurisdiction to be invalid, illegal or unenforceable in whole or in part, and such determination shall become final, such provision or portion shall be deemed to be severed or limited, but only to the extent required to render the remaining provisions and portions of this letter agreement enforceable.

 

If you agree with the terms of this letter, please sign the acknowledgement below.  Upon receipt of a signed letter, AMAG will return a copy to you for your files.

 

On behalf of the AMAG’s management team, I thank you for the contributions that you have made to the Company thus far.  We look forward to continuing to work with you.

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
/s/ Stephen Andre
    	
 
    
	
 
    	
 
    
	
Stephen   Andre
    	
 
    
	
Senior   Vice President of Human Resources
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Agreed   to and acknowledged as of December 7, 2011:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Scott Holmes
    	
 
    
	
 
    	
Scott   Holmes
    	
 
    

 

Confidential Document

100 Hayden Avenue, Lexington, MA 02140 | Tel: 617.498.3382 | Fax: 617.812.8268Exhibit 10.21

 

AMAG PHARMACEUTICALS, INC.

 

Restricted Stock Unit Agreement

 

AMAG Pharmaceuticals, Inc. (the “Company”) hereby enters into this Restricted Stock Unit Agreement, dated as of the date set forth below, with the Recipient named herein (the “Agreement”) and grants to the Recipient the Restricted Stock Units (“RSUs”) specified herein pursuant to its Second Amended and Restated 2007 Equity Incentive Plan, as amended and in effect from time to time.  The Terms and Conditions attached hereto are also a part hereof.

 

	
Name of recipient (the “Recipient”):
    	
 
    	
[Name of Recipient]
    
	
 
    	
 
    	
 
    
	
Date   of this RSU grant (“Grant Date”):
    	
 
    	
[Date of Grant]
    
	
 
    	
 
    	
 
    
	
Number   of shares of the Company’s Common Stock (the “Underlying Shares”)   underlying the equivalent number of restricted stock units (the “RSUs”)   granted pursuant to this Agreement:
    	
 
    	
[Number]
    
	
 
    	
 
    	
 
    
	
Number of RSUs that are vested on the Grant Date:
    	
 
    	
- 0 -
    
	
 
    	
 
    	
 
    
	
Number   of RSUs that are unvested on the Grant Date:
    	
 
    	
[Number]
    

 

Vesting Schedule:

 

50% of the RSUs shall vest on the first anniversary of the Grant Date, 25% of the RSUs shall vest on the second anniversary of the Grant Date, and the remaining 25% of the RSUs shall vest on the third anniversary of the Grant Date.

 

	
 
    	
 
    	
AMAG   PHARMACEUTICALS, INC.
    
	
Signature   of Recipient
    	
 
    	
 
    
	
 
    	
 
    
	
[Name]
    	
By:
    	
 
    
	
[Address]
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

AMAG PHARMACEUTICALS, INC.

 

Restricted Stock Unit Agreement — Terms and Conditions

 

AMAG Pharmaceuticals, Inc. (the “Company”) agrees to award to the recipient specified on the cover page hereof (the “Recipient”), and the Recipient agrees to accept from the Company, the number of restricted stock units (the “RSUs”) specified on the cover page hereof representing an equivalent number of shares of the Company’s Common Stock (the “Underlying Shares”), on the following terms:

 

1.           Grant Under Plan.  This Restricted Stock Unit Agreement (the “Agreement”) is made pursuant to and is governed by the Company’s Second Amended and Restated 2007 Equity Incentive Plan, as amended and in effect from time to time (the “Plan”), and, unless the context otherwise requires or except as defined herein, capitalized terms used herein shall have the same meanings as in the Plan.

 

2.                                Vesting if Business Relationship Continues.

 

(a)           Vesting Schedule.

 

(1)         If the Recipient has maintained continuously a Business Relationship with the Company through each date specified on the cover page hereof, a portion of the RSUs shall vest on such date in such amounts as are set forth opposite such date on the cover page hereof.

 

(2)         In the event that (i) the Company terminates the Recipient’s Business Relationship other than for death, disability or Cause or the Recipient terminates its Business Relationship for Good Reason; (ii) the Recipient complies fully with all of his or her obligations under all agreements between the Company and the Recipient; and (iii) the Recipient executes, delivers to the Company, within 60 days of the termination of the Recipient’s Business Relationship, and does not revoke a general release (in a form acceptable to the Company) releasing and waiving any and all claims that the Recipient has or may have against the Company, its directors, officers, employees, agents, successors and assigns with respect to the Recipient’s Business Relationship (other than any obligation of the Company set forth herein or the Employment Agreement which specifically survives the termination of the Recipient’s Business Relationship or employment, as applicable), then the next regularly scheduled vesting date after the termination of the Recipient’s Business Relationship (the “Upcoming Vesting Date”) shall immediately be accelerated and the RSUs scheduled to vest on the Upcoming Vesting Date shall immediately become vested; provided, that no additional RSUs scheduled to vest after such Upcoming Vesting Date shall become vested RSUs under any circumstances with respect to the Recipient and any such unvested

 

 

RSUs shall be forfeited.  Notwithstanding anything to the contrary herein, if the RSUs constitute deferred compensation subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations and other guidance thereunder and any state law of similar effect (collectively, “Section 409A”), and the sixty (60) day period in which the Recipient must execute the release begins in one calendar year and ends in another, the Underlying Shares shall be issued in the later calendar year.  Nothing contained in this Section 2(a)(2) shall override any provisions in the Recipient’s Employment Agreement with respect to the acceleration of vesting of any equity incentives upon a Change of Control (as defined in the Employment Agreement) or upon a termination of the Recipient’s employment following a Change of Control, which shall continue to apply.

 

(3)         If the Recipient’s Business Relationship is terminated by the Company for death, disability or Cause, or by the Recipient for any reason other than Good Reason, no additional RSUs shall become vested RSUs under any circumstances with respect to the Recipient and any unvested RSUs shall be forfeited.

 

(4)         Any determination under this Agreement as to Business Relationship status or other matters referred to above shall be made in good faith by the Board, whose decision shall be final and binding on all parties.

 

“Business Relationship” means service to the Company or its successor in the capacity of an employee, officer, director, consultant, or advisor.

 

“Cause” shall have the meaning set forth in the Recipient’s Employment Agreement.

 

“Employment Agreement” shall mean the Employment Agreement, dated as of August 1, 2011, as amended from time to time, by and between the Company and the Recipient.

 

“Good Reason” shall have the meaning set forth in the Recipient’s Employment Agreement.

 

(b)           Termination of Business Relationship.  For purposes hereof, a Business Relationship shall not be considered as having terminated during any  military leave, sick leave, or other leave of absence if approved in writing by the Company and if such written approval, or applicable law, contractually obligates the Company to continue the Business Relationship of the Recipient after the approved period of absence (an “Approved Leave of Absence”).  In the event of an Approved Leave of Absence, vesting of RSUs shall be suspended (and all subsequent vesting dates shall be postponed by the length of the period of the Approved Leave of Absence) unless otherwise provided in the Company’s written approval of the leave of absence that specifically refers to this Agreement.  For purposes hereof, a Business Relationship shall include a consulting

 

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arrangement between the Recipient and the Company that immediately follows termination of employment, but only if so stated in a written consulting agreement executed by the Company that specifically refers to this Agreement.

 

(c)           Acceleration.  The Board may at any time provide that the RSUs awarded pursuant to this Agreement shall become immediately exercisable in full or in part, shall be free of some or all restrictions, or otherwise realizable in full or in part, as the case may be, despite the fact that the foregoing actions may cause the application of Sections 280G and 4999 of the Code if a change in control of the Company occurs.

 

3.             Issuance of Underlying Shares.  With respect to any RSUs that become vested RSUs pursuant to Section 2, subject to Sections 5, 6 and 8, the Company shall issue to the Recipient, as soon as practicable following the applicable vesting date (as specified on the cover page hereof with respect to any RSUs that become vested pursuant to Section 2(a)(1) and as specified in Section 2(a)(2) with respect to any RSUs that become vested pursuant to Section 2(a)(2), if applicable), the number of Underlying Shares equal to the number of RSUs vesting on such vesting date, provided that, if the vesting date of any portion of the RSUs shall occur during either a regularly scheduled or special “blackout period” of the Company wherein Recipient is precluded from selling shares of the Company’s Common Stock, the receipt of the corresponding Underlying Shares issuable with respect to such vesting date pursuant to this Agreement shall be deferred until after the expiration of such blackout period, unless such Underlying Shares are covered by a previously established Company-approved 10b5-1 plan of the Recipient, in which case the Underlying Shares shall be issued in accordance with the terms of such 10b5-1 plan.  The Underlying Shares the receipt of which was deferred as provided above shall be issued to Recipient as soon as practicable after the expiration of the blackout period.  Notwithstanding the above, subject to Section 8, (i) in no event may the Underlying Shares with respect to any RSUs that become vested pursuant to Section 2(a)(1) be issued to the Recipient later than the later of: (a) December 31st of the calendar year in which vesting occurs, or (b) the fifteenth (15th) day of the third calendar month following such vesting date, and (ii) in no event may the Underlying Shares with respect to any RSUs that become vested pursuant to Section 2(a)(2) be issued to the Recipient later than the 90th day following the Recipient’s Separation from Service; provided that the Recipient acknowledges and agrees that if the Underlying Shares are issued to the Recipient pursuant to this sentence while either a regularly scheduled or special “blackout period” is still in effect with respect to the Company or the Recipient, neither the Company nor the Recipient may sell any shares of the Company’s Common Stock to satisfy any Tax Obligations except in compliance with the Company’s insider trading policies and requirements and applicable laws.  The form of such issuance (e.g., a stock certificate or electronic entry evidencing such Underlying Shares) shall be determined by the Company.

 

4.             Restrictions on Transfer.  The Recipient shall not sell, assign, transfer, pledge, encumber or dispose of all or any of his or her RSUs.  Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, the Recipient may designate a third party who, in the event of the Recipient’s death, shall thereafter be entitled to receive any distributions of Underlying Shares to which the Recipient is entitled at the time of his or her death pursuant to this Agreement.

 

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5.             Compliance with Law.  The Recipient’s Award, and the issuance of the Underlying Shares pursuant to the Award, must comply with all applicable laws and regulations governing the Award, and with the applicable regulations of any stock exchange on which the Underlying Shares may be listed for trading at the time of issuance.  The Company shall not issue the Underlying Shares to the Recipient if the Company determines that such issuance would not be in material compliance with all applicable laws and regulations (in which case issuance of the Underlying Shares shall occur at the earliest date at which the Company determines that delivery of the Underlying Shares will not cause any such violation or non-compliance).

 

6.             Withholding Taxes.  All grants made pursuant to this Agreement shall be subject to withholding of all applicable federal, state, local and foreign income, employment, payroll, social insurance or other taxes resulting from the issuance or vesting of the RSUs or the delivery of the Underlying Shares (the “Tax Obligations”).  The Recipient agrees to pay to the Company, or otherwise make adequate provisions satisfactory to the Company for the payment of, any sums required to satisfy the Tax Obligations at the time such Tax Obligations arise.  The Company may, in its discretion, and the Recipient hereby agrees that and authorizes the Company on its behalf to, withhold, sell, and/or arrange for the sale of such number of Underlying Shares otherwise issuable to the Recipient pursuant to this Agreement as deemed necessary by the Company, in its sole discretion, to ensure that the Tax Obligations can be satisfied, including the right to sell shares having a fair market value greater than the Tax Obligations; provided, however, that for this purpose the Tax Obligations shall be computed based on the minimum statutory withholding rates for federal, state, local, and foreign income and employment tax purposes; provided, further, however, that if the Company decides to satisfy the Tax Obligations by withholding shares otherwise issuable hereunder (rather than by selling or arranging for the sale of shares on behalf of the Recipient), the Company shall not withhold shares having a fair market value greater than the Tax Obligations.  The Recipient further agrees that, if the Company elects not to withhold, sell, or arrange for the sale of the amount of Underlying Shares sufficient to satisfy the full amount of the Tax Obligations, the Company may withhold such shortfall in cash from wages or other remuneration or the Recipient will deliver to the Company, in cash, the amount of such shortfall.  The Recipient further agrees that the Recipient shall not sell any of the Underlying Shares during the period of time that the Company is acting on the Recipient’s behalf to withhold, sell, and/or arrange for the sale of the number of Underlying Shares necessary to satisfy the Recipient’s Tax Obligations.  Notwithstanding the preceding sentences, the Recipient may, by written notice to the Company at least ten business days before the applicable vesting date specified on the cover page hereof, elect to pay in cash the applicable Tax Obligations, or make other appropriate provisions acceptable to the Company for the payment of the applicable Tax Obligations, including the withholding from any payroll or other amounts due to the Recipient.  The Company may refuse to issue the Underlying Shares if the Recipient fails to comply with his or her obligations in connection with the Tax Obligations as described in this Section.

 

Recipient further agrees to take any further actions and execute any additional documents as may be necessary to effectuate the provisions of this Section 6 and the Recipient hereby grants the Company a irrevocable power of attorney to sign such additional documents on the Recipient’s behalf if the Company is unable after reasonable efforts to obtain Recipient’s

 

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signature on such additional documents.  This power of attorney is coupled with an interest and is irrevocable by the Recipient.

 

7.             Provision of Documentation to Recipient.  By signing the cover page of this Agreement, the Recipient acknowledges receipt of a copy of this entire Agreement, a copy of the Plan, and a copy of the Plan’s related prospectus.

 

8.             Section 409A of the Internal Revenue Code.  The RSUs granted hereunder are intended to avoid the potential adverse tax consequences to the Recipient of Section 409A, and the Board may make such modifications to this Agreement as it deems necessary or advisable to avoid such adverse tax consequences.  If the RSUs constitute deferred compensation subject to Section 409A, any issuance of Underlying Shares under this Agreement because of a termination of the Business Relationship (i) will only occur if such termination is also a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h)) under Section 409A (“Separation from Service”), and (ii) will be delayed until the earlier of (a) the date that is six months and one day after the Recipient’s Separation from Service or (b) the date of the Recipient’s death if the Recipient is, upon such Separation from Service, a “specified employee” of the Company or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) of the Code.

 

9.             Rights as Stockholder.  The Recipient shall have no voting or any other rights as a stockholder of the Company with respect to any RSUs covered by this Agreement until the issuance of the Underlying Shares.

 

10.          Miscellaneous.

 

(a)           Notices.  All notices hereunder shall be in writing and shall be deemed given when sent by certified or registered mail, postage prepaid, return receipt requested, if to the Recipient, to the address set forth on the cover page hereof or at the address shown on the records of the Company, and if to the Company, to the Company’s principal executive offices, attention of the Corporate Secretary.

 

(b)           Entire Agreement; Modification.  This Agreement constitutes the entire agreement between the parties relative to the subject matter hereof, and supersedes all proposals, written or oral, and all other communications between the parties relating to the subject matter of this Agreement.  This Agreement may be modified, amended or rescinded only by a written agreement executed by both parties signatories to this Agreement.  In the event of a conflict between the terms of this Agreement and the Plan, the terms of the Plan shall control.

 

(c)           Fractional RSUs or Underlying Shares.  All fractional RSUs or Underlying Shares resulting from the adjustment provisions contained in the Plan shall be rounded down to the nearest whole unit or share.

 

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(d)           Severability.  The invalidity, illegality or unenforceability of any provision of this Agreement shall in no way affect the validity, legality or enforceability of any other provision.

 

(e)           Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, subject to the limitations set forth herein.

 

(f)            Governing Law.  This Agreement shall be governed by and interpreted in accordance with the laws of Delaware without giving effect to the principles of the conflicts of laws thereof.

 

(g)           No Obligation to Continue Business Relationship.  Neither the Plan, nor this Agreement, nor any provision hereof imposes any obligation on the Company to continue a Business Relationship with the Recipient.

 

(h)           For purposes of Sections 2, 6 and 10(g), the “Company” shall mean the Company as defined in Section 9(a) of the Plan.

 

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