Document:

Exhibit 10.9

 

 

May 12, 2017

 

Mr. Yasir Al-Wakeel, BM BCh

132 Commonwealth Avenue, Apt. 9

Boston, MA 02116

 

Re: Offer of Employment

 

Dear Yasir,

 

Neon Therapeutics, Inc. (the “Company”) is pleased to confirm its offer to employ you as Chief Financial Officer, reporting to Hugh O’Dowd, President and Chief Executive Officer, on the terms set forth herein. This offer is contingent upon a successful and positive outcome of a background check which will include criminal, education and work history components. This letter sets forth the terms and conditions of your employment (the “Agreement”).

 

Start Date:  Your effective date of employment will be June 19, 2017, unless another date is agreed to by you and the Company. For purposes of this offer letter, the actual first day of your employment shall be referred to as the “Start Date”. You will be based out of the Company’s main office, located at 40 Erie Street, Suite 110, Cambridge, MA.

 

Base Salary:  Your base salary will be at the annualized rate of $375,000.00, payable semi-monthly in accordance with the Company’s normal pay schedule.

 

Annual Performance Bonus:  You will be eligible for an annual performance bonus in each calendar year of employment based on the achievement of individual and Company goals as established by the Board of Directors in its sole discretion (each such bonus being an “Annual Performance Bonus”). The target amount of each Annual Performance Bonus will be equal to 25% of your base salary in effect as of the last day of the calendar year to which the Annual Performance Bonus pertains and will be pro-rated for any partial calendar years of employment (including 2017). In addition to achieving the relevant goals, to earn an Annual Performance Bonus in any calendar year of employment, you must remain employed on the date that it is paid, which shall be no later than March 15th of the calendar year following the calendar year to which the Annual Performance Bonus pertains.

 

Signing Bonus: Within the thirty (30) days following the Start Date, the Company will pay you a signing bonus in the amount of $230,000.00 (the “Signing Bonus”). If, prior to a Change in Control (defined below), either the Company provides notice to you that it is terminating your employment for Cause (defined below) or you provide notice to the

 

Unlocking the immune system to attack cancer

 

www.neontherapeutics.com

 

 

Company that you are terminating your employment without Good Reason (defined below), you will be required to repay: (i) 100% of the Signing Bonus (in the net amount you received from the Company after accounting for tax-related deductions and withholdings) if termination occurs before June 19, 2018; and (ii) 50% of the Signing Bonus (in the net amount you received from the Company after accounting for tax-related deductions and withholdings) if termination occurs on or after June 19, 2018 but before June 19, 2019 to the Company within five (5) days of the date of such termination.

 

Benefits: You will be eligible to participate in the Company’s group medical and dental benefit programs, as well as all other Company benefits, provided you are eligible under (and subject to all provisions of) the plan documents governing those programs. The benefit programs made available by the Company, and the rules, terms and conditions for participation in such benefit plans, may be changed by the Company at any time without advance notice.

 

Vacation and Holidays: You will accrue vacation at the rate of 15 days per full calendar year of employment. You will also be eligible to take paid holidays in accordance with the Company holiday schedule.

 

Equity Grant: Subject to the approval of the Board of Directors of the Company, you will be granted an option to purchase 1,050,000 shares of the Company’s common stock (the “Option”). In lieu of the Option you may elect to purchase all, or a portion, of the shares as restricted stock at fair market value subject to vesting. The Option will be granted as soon as practicable following the Start Date. The exercise price of the Option will be at least equal to the fair market value of the Company’s common stock on the date of grant, and the Board of Directors may elect to seek a third-party valuation of such fair market value, which could delay the date that the Option is granted. The Option will be subject to the terms and conditions of the Company’s then-current stock option plan and form of stock option agreement (the “Equity Documents”). These shares subject to the Option will vest as follows: 25% of the shares will vest on the first anniversary of the Start Date, and following such first anniversary, 1/36th of the remaining shares will vest on a monthly basis.

 

At-will Nature of Employment; Termination: It is understood that you are an “at-will” employee. You are not being offered employment for a definite period of time and, subject to the provisions in this Agreement (including those directly below) either you or the Company may terminate the employment relationship at any time and for any reason.

 

a.  Termination by the Company for Cause: The Company may terminate your employment for “Cause” (as defined in below) upon written notice to you effectively immediately, in which case you will not be entitled to receive any form of payment other than (i) your earned base salary through your date of termination; (ii) your accrued but unused vacation through your date of termination; (iii) reimbursement for any business expenses incurred by you but not yet paid to you as of the date of termination; and (iv)

 

 

any amounts accrued and payable under the terms of the Company’s benefit plans (together, the “Accrued Obligations”).

 

b.  Termination by you without Good Reason: You may terminate your employment without Good Reason (defined below) upon at least thirty (30) days’ prior written notice to the Company. In the event that you terminate your employment without Good Reason, you will not be entitled to receive any form of payment other than the Accrued Obligations.

 

c.  Termination by the Company without Cause or by You for Good Reason: Notwithstanding the foregoing, in the event that either the Company terminates your employment without Cause or you terminate your employment for Good Reason, then, subject to you entering into and complying with a separation agreement and general release in the form provided by the Company (the “Separation Agreement”) and the Separation Agreement becoming effective within 60 days of the date of termination, you will be entitled to the Accrued Obligations and the following “Severance Benefits”: (i) severance pay equal to twelve (12) months of your final base salary rate, payable in equal installments on the Company’s regular payroll dates during the twelve (12) month period immediately following the date on which the Separation Agreement becomes effective (the “Severance Period”); (ii) subject to your participation in the Company’s group medical benefit program on the date of termination and your timely election of COBRA continuation coverage (which will be provided in a separate notice to you), monthly payments for the period that is the shorter of the Severance Period or the date you commence subsequent employment following the date of termination, with each such payment being equal to the monthly employer contribution that the Company would have made to provide medical insurance to you if you had remained employed by the Company.

 

d.  Definition of “Cause”:  For purposes of this letter agreement, “Cause” means (i) your dishonest statements or acts with respect to the Company or any affiliate of the Company, or any current or prospective customers, suppliers vendors or other third parties with which such entity does business that results in or is reasonably anticipated to result in material harm to the Company; (ii) your conviction of (A) a felony or (B) any misdemeanor involving moral turpitude, deceit, dishonesty or fraud; (iii) your failure to perform your assigned duties and responsibilities to the reasonable satisfaction of the Company which failure continues, in the reasonable judgment of the Company, for thirty (30) days after written notice given to you by the Company describing such failure in reasonable detail; (iv) your gross negligence, willful misconduct or insubordination with respect to the Company that results in or is reasonably anticipated to result in material harm to the Company; or (v) your material violation of any provision of any agreement(s) between you and the Company relating to noncompetition, nonsolicitation, nondisclosure

 

 

and/or assignment of inventions (including, without limitation, the Restrictive Covenant Agreement defined below).

 

e. Definition of “Good Reason”:  For purposes of this letter agreement, “Good Reason” means that you terminate your employment with the Company and such termination occurs within thirty (30) days following either: (i) a change in the principal location at which you provide services to the Company beyond fifty (50) miles from Cambridge, MA; (ii) a material reduction in your base salary or benefits eligibility, other than an across-the-board reduction applicable to all senior executives of the Company; (iii) a material breach of this Agreement by the Company that has not been cured within ten (10) days after written notice thereof by you to the Company; (iv) a failure by the Company to obtain the assumption of this Agreement by any successor to the Company; or (v) a material diminution in your title or authority.

 

g. 409A Matters:  The time for payment, or schedule for payment, of any Severance Benefits due hereunder may not be accelerated, except as provided for in the Treasury Regulations promulgated under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), or any law replacing or superseding such Section or regulations. Notwithstanding the preceding provisions of this Agreement, in the case that the Company becomes a publicly traded company and you are deemed a “specified employee” (as defined in Section 409A(2)(B)(i) of the Code), no severance payment may be made earlier than the date which is six (6) months after the date of termination hereunder (or, if earlier, the date of your death) if and to the extent required by applicable law or other rules of any stock exchange upon which any of shares of the Company’s capital stock are then traded. Each payment pursuant to this Agreement (including each installment of the Severance Benefits described above) is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). If any payments of Severance Benefits above, constitute “non-qualified deferred compensation” under Section 409A of the Code, and the period to execute the Separation Agreement described in such section commences in one calendar year and ends in another calendar year, then regardless of when the Separation Agreement is returned to the Company and becomes effective, the effective date of the Separation Agreement will not be deemed to occur until such later calendar year. All in-kind benefits provided and expenses eligible for reimbursement under this letter shall be provided by the Company or incurred by you 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.

 

i. Change of Control: In the event that, within either the twelve (12) month period that immediately follows or the 30 day period that immediately precedes a Change in Control of the Company (defined below), the Company terminates your employment without Cause or you terminate your employment for Good Reason, then, in addition to the Accrued Obligations and the Severance Benefits and subject to you entering into and complying with the Separation Agreement and the Separation Agreement becoming effecting within sixty (60) days following the date of termination, 100% of your then-unvested equity and/or options to purchase shares of the Company’s Common Stock (“Equity Awards”) shall accelerate and become fully vested. In addition, if, in connection with a Change in Control, an Equity Award will not be assumed or continued by the successor or acquiror entity in such Change in Control or substituted for a similar award of the successor or acquiror entity and will therefore terminate, then you will become vested with respect to any then unvested portion of any applicable Equity Award effective immediately prior to, but subject to the consummation of, such Change in Control. As used herein, “Change in Control” shall mean the (i) the sale of the Company in which the shareholders of the Company in their capacity as such no longer own a majority of the outstanding equity securities of the Company (or its successor); (ii) any sale of all or substantially all of the assets or capital stock of the Company (other than in a spin-off or similar transaction) or (iii) any other acquisition of the business of the Company, as determined by the Company’s Board of Directors in their sole discretion. For the avoidance of doubt, in no event shall a bona fide equity or debt financing of the Company, including a financing in which greater than 50% of the Company’s outstanding equity securities are acquired by a third-party, or reorganization required to effect an initial public offering, be deemed a “Change in Control” for purposes of this letter.

 

Restrictive Covenant Agreement: Enclosed for your review is an Employee Confidentiality, Noncompetition and Assignment Agreement (the “Restrictive Covenant Agreement”). This Agreement and your employment with the Company is conditioned on you signing and returning the Restrictive Covenant Agreement before the Start Date. You represent that you are not under any obligation to any former employer or any person or entity which would prevent, limit, or impair in any way the performance by you of your duties as an employee of the Company.

 

Immigration Requirement: The Immigration Reform and Control Act requires employers to verify the employment eligibility and identity of new employees. You will be required to complete a Form I9 which will be provided to you before the Start Date. Please bring the appropriate documents listed on that form with you when you report for work. We will not

 

 

be able to employ you if you fail to comply with this requirement. Also, this offer is subject to satisfactory reference checks if necessary.

 

General: This Agreement, together with the Equity Documents and the Restrictive Covenant Agreement, constitute the complete agreement between you and the Company, contain all of the terms of your employment with the Company and supersede any prior agreements, representations or understandings (whether written, oral or implied) between you and the Company. This Agreement may not be amended or modified, except by an express written agreement signed by both you and a duly authorized officer of the Company, although, subject to the provisions set forth herein (including any applicable portion of the definition of Good Reason), your job duties, title, reporting relationship, compensation and benefits may change from time to time, at the Company’s option. The Company may assign its rights and obligations under this Agreement (including the Equity Documents and the Restrictive Covenant Agreement) without your 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. This Agreement shall inure to the benefit of and be binding upon you and the Company, and each of your and its respective successors, executors, administrators, heirs and permitted assigns. All forms of compensation referenced in this Agreement shall be subject to tax-related deductions and withholdings. 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.

 

[signature page follows]

 

 

Please indicate your acceptance of this Agreement by signing and returning it, along with the Restrictive Covenant Agreement, to Terry Regan (tregan@neontherapeutics.com) by no later than May 19, 2017. We are excited by the prospect of working with you and hope you join the Company.

 

Very truly yours,

 

Hugh O’Dowd 
 President & CEO

 

ACCEPTED AND AGREED:

 

	
/s/ Yasir Al-Wakeel, BM   BCh
    	
 
    	
5/22/17
    
	
Yasir Al-Wakeel, BM BCh
    	
 
    	
DateExhibit 10.10

 

May 18, 2015

 

Robert Ang, M.D.

526 Sequoia Dr

Los Altos, CA 94024

 

Re:                        Employment by Neon Therapeutics, Inc.

 

Dear Robert:

 

On behalf of Neon Therapeutics, Inc. (“Neon Therapeutics,” or the “Company”), I am pleased to confirm our offer to employ you as Chief Business Officer. This letter sets forth the terms and conditions of your employment.

 

In the role of Chief Business Officer, you will report to and take direction from the Company’s Interim (or full-time) CEO (the “CEO”). Subject to the CEO’s discretion, it is expected that your duties will include:

 

·                  Be a leader in the organization regarding the Value Creation Strategy (with management team and senior leaders)

·             Working closely with the CEO and Management team continue to evolve and further develop the current vision for value creation for the company

·             Pressure test key assumptions in value creation model with internal and external information and develop alternative scenarios

·             With CEO, manage capital raising efforts

·             Contribute to annual budget development and company goal development

·                  Lead the effort to develop and implement a business development and licensing strategy that matches value creation strategy

·             Tailor Strategy and approach for each potential partner interaction (including all academic, technology, CRO, and pharma partnering)

·             Lead and execute deal making for each potential partner

·             Lead and execute academic license and collaborator agreements

·                  Represent Neon Therapeutics internally and externally in scientific, financial, and business communities

·                  Be a leader in the organization with regard to organizational development (with management team and senior leaders), help recruit the best talent, and Build an exceptional culture for success (set high standards + have fun)

·                  Contribute to management team decisions proactively regarding all strategic issues for the company

·                  Cultivate a strong effective partnership with the R&D team.

·                  Be a leader at integrating science, medicine and business to formulate the best strategy for the company

·                  Develop and iterate on pre-commercial plans for our unique products including our personalized vaccine and T cell products. Develop viable business model for both

·                  Together with Selected advisors, consultants and vendors, manage the following efforts:

 

 

·      PR/website

·      IP Portfolio execution and strategy

·      Commercial/new product planning activities

·      Facilities

·      IT

 

Your effective date of hire as a regular employee will be June 29, 2015, or sooner if agreed to by you and the Company. For purposes of this letter your actual first day of employment shall be referred to as the “Start Date”.

 

Your base salary will be paid at the rate of $330,000 per year, payable monthly in accordance with the Company’s normal pay schedule. You will be eligible to receive a 2015 year-end incentive bonus, targeted at 25% of your base salary based upon achievement of all corporate and personal goals, as determined by the Board in its discretion. Your target bonus for 2015 will be prorated based on your Start Date. You must be employed on the date on which the bonus is paid in order to earn any part of it. You will be eligible to participate each year in any annual bonus plan adopted by the Company, and the Company shall adopt and implement such a plan, if reasonable in light of financial, business and other circumstances and factors.

 

The CEO and Board will formally review your performance on, or near, your year one anniversary to determine if additional responsibilities will be added to your role and whether a promotion is in order.

 

You will be eligible for reimbursement of up to $150,000 for relocation expenses (the “Relocation Amount”). For qualified relocation expenses (i.e. moving your household goods and personal effects from San Francisco to Massachusetts; travel for you and your family to your new home in Massachusetts; 30 days of storage and insurance expenses for household goods and personal effects), if you submit expense reports and adequate supporting documentation reimbursement should be excludable from income taxes. Any portion of the $150,000 not paid to you as a qualified reimbursed expense will be paid to you directly, net of applicable taxes. Any such amount paid to you directly will be treated as reimbursement of non-deductible expenses under a non-accountable plan and will be included in your W-2. If you voluntarily terminate your employment with Neon Therapeutics (other than for death or disability or a Good Reason resignation as defined below) or are terminated for Cause within two years of your hire date, you agree that you are obligated to return the gross Relocation Amount Reimbursement to the Company within 30 Days of your departure date. For purposes of this Agreement, the Relocation Amount Reimbursement shall be calculated as follows: (i) if the date of termination is on or before the one year anniversary of the Start Date (the “First Anniversary”), 100% of the Relocation Amount; (ii) if the date of termination is after the First Anniversary but on or prior to the two year anniversary of the Start Date (the “Second Anniversary”), the Relocation Amount, divided by 24 and multiplied by the number of full months between the Start Date and the date of termination.

 

As a full time employee, you may participate in any employee benefit programs that the Company establishes and makes available to its employees from time to time, provided you are eligible under and subject to all provisions of the plan documents governing those programs. Current benefits include participation in a company sponsored health care plan, dental plan, short term disability insurance, long term disability insurance, 401k plan, 15 days of paid vacation and parking benefit. The Company, however, reserves the right to modify, terminate, or replace its employee benefit plans and policies in its sole discretion.

 

 

Subject to the approval of the Board of Directors of the Company, you will be granted an option to purchase 1,112,250 shares of the Company’s common stock (the “Option”). In Lieu of the option you may purchase the shares as restricted stock at fair market value subject to vesting. The Option will be granted following the Start Date. The exercise price of the Option will be at least equal to the fair market value of the Company’s common stock on the date of grant, and the Board of Directors may elect to seek a third party valuation of such fair market value, which could delay the date that the Option is granted. The Option will be subject to the terms and conditions of the Company’s then-current stock option plan and form of stock option agreement (the “Equity Documents”). These options will vest as follows: one quarter of the shares will vest on the first anniversary of the Start Date, and following that, 1/48th of the shares will vest on a monthly basis thereafter.

 

In addition to your New Hire stock option grant, you shall be awarded a separate Strategic Alliance stock option grant to purchase up to an additional 185,375 shares of the company’s Common stock, subject to Board of Directors approval. The stock option grant will be issued upon the obtainment of a defined Strategic Alliance Milestone with an exercise price that will be at fair market value as established by the Board and will be subject to the standard terms and conditions of the Neon Stock Option Plan. The option will vest over three years at the rate of 25% of which will be immediately vested at the time of grant and then an additional 1/36th for each additional month of full time active employment after the date of grant date until after three full years when the option is fully vested. For purposes of this letter, both Strategic Alliance Milestones shall be further defined and approved by the Board within 90 days after your start date.

 

Neon Therapeutics acknowledges that you currently reside in San Francisco and that you desire to accept this job as a full time position in Massachusetts.

 

It is understood that you are an “at-will” employee. You are not being offered employment for a definite period of time, and either you or the Company may terminate the employment relationship at any time and for any reason, with or without Cause or prior notice and without additional compensation to you except as specifically set forth in the Agreement.

 

Notwithstanding the foregoing, in the event that the Company terminates your employment at any time without Cause or you resign with Good Reason, and provided you enter into, do not revoke and comply with the terms of a separation agreement in a form provided by the Company (the “Release”) and abide by your continuing obligations to the company including under the Restrictive Covenant Agreement, you will be entitled to the following severance benefits (collectively, the “Severance Payments”), subject to the terms set forth in this letter:

 

The Company will pay you severance in the form of continuation of your base salary for six (9) months (the “Severance Period”). The Severance Payments shall be paid over six months in accordance with the Company’s then current payroll practices, beginning on the Company’s first regular payroll date that occurs 35 days after the date of termination of your employment provided the Release has become fully effective . Solely for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), each salary continuation payment is considered a separate payment. For purposes of this letter agreement, “for Cause” shall mean your committing one or more of the following (each a “Cause Condition”): (i) dishonesty, embezzlement, or misappropriation of assets or property of the Company;

 

 

(ii) gross negligence or willful misconduct in connection with the performance of your duties, theft, fraud or breach of fiduciary duty to the Company; (iii) a violation of federal or state securities law; (iv) the conviction of a felony or any crime involving moral turpitude, including a plea of conduct or nolo contendre; (v) a material breach of any of the Company’s written policies related to conduct or ethics; or (vi) a material breach of the Non-Competition, Non-Solicitation, Confidentiality and Assignment Agreement (copy attached) executed in accordance with this letter agreement. “Good Reason” shall mean you have complied with the “Good Reason Process” as defined below, following the occurrence of one or more of the following events: (i) any material adverse change in your status, authority, responsibility, title, position, or compensation or in your access to resources (other than adjustments to resources consistent with normal operating decisions of a board of directors in the event of changes in strategy or programs or any other changes in access to resources that are reasonable in light of the Company’s then current financial condition), (ii) the relocation of your primary place of work more than 30 miles from your residence in Massachusetts on the Effective Date of this Agreement, or (iii) the material breach by the Company of any provision of this letter agreement or any other employment-related agreement between the Company and you (as defined below). “Good Reason Process” shall mean that (i) you reasonably determine in good faith that one of the foregoing “Good Reason” conditions has occurred; (ii) you notify the Company in writing of the first occurrence of the Good Reason condition within 30 days of the first occurrence of such condition; (iii) you cooperate 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) you terminate your employment within 30 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.

 

Enclosed for your review is a “Non-Solicitation, Confidentiality and Assignment Agreement” (the “Restrictive Covenant Agreement”). This offer of employment is conditioned on you agreement to the terms of the Restrictive Covenant Agreement. You will be expected to sign the Agreement before you report for work.

 

You represent that you are not under any obligation to any former employer or any person or entity which would prevent, limit, or impair in any way the performance by you of your duties as an employee of the Company.

 

The Immigration Reform and Control Act requires employers to verify the employment eligibility and identity of new employees. You will be required to complete a Form 19 which will be provided to you before the Start Date. Please bring the appropriate documents listed on that form with you when you report for work. We will not be able to employ you if you fail to comply with this requirement. Also, this offer is subject to satisfactory reference checks if necessary.

 

This letter agreement and the Restrictive Covenant Agreement referenced above constitute the complete agreement between you and the Company, contain all of the terms of your employment with the Company and supersede any prior agreements, representations or understandings (whether written, oral or implied) between you and the Company. This letter agreement may not be amended or modified, except by an express written agreement signed by both you and a duly authorized officer of the Company, although your job duties, title, reporting relationship, compensation and benefits may change from time to time, at the Company’s option. The Company may assign its rights and obligations under this Agreement (including the Restrictive Covenant Agreement) without your 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. This Agreement shall inure to the benefit of and be binding upon you and the Company, and each of your and its respective successors, executors, administrators, heirs and permitted assigns.

 

Please indicate your acceptance of this offer by signing and returning the enclosed copy of this letter to me no later than 5pm ET on May 18, 2015. We look forward to your joining the Company and are pleased that you will be working with us.

 

Very truly yours,

 

Cary G. Pfeffer, M.D.

Interim President & Chief Executive Officer

Neon Therapeutics, Inc.

 

	
Accepted   and Agreed:
    	
 
    
	
 
    	
 
    
	
/s/   Robert Ang, M.D.
    	
 
    
	
Robert   Ang, M.D.
    	
 
    
	
 
    	
 
    
	
May   18, 2015
    	
 
    
	
Date

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