Document:

torc-ex1016_119.htm

Exhibit 10.16

restorbio, INC.

SENIOR EXECUTIVE CASH INCENTIVE BONUS PLAN

	
1.
	
Purpose

This Senior Executive Cash Incentive Bonus Plan (the “Incentive Plan”) is intended to provide an incentive for superior work and to motivate eligible executives of resTORbio, Inc. (the “Company”) and its subsidiaries toward even higher achievement and business results, to tie their goals and interests to those of the Company and its stockholders and to enable the Company to attract and retain highly qualified executives.  The Incentive Plan is for the benefit of Covered Executives (as defined below).

	
2.
	
Covered Executives

From time to time, the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) may select certain key executives (the “Covered Executives”) to be eligible to receive bonuses hereunder.  Participation in this Plan does not change the “at will” nature of a Covered Executive’s employment with the Company.

	
3.
	
Administration

The Compensation Committee shall have the sole discretion and authority to administer and interpret the Incentive Plan.

	
4.
	
Bonus Determinations

(a)Corporate Performance Goals.  A Covered Executive may receive a bonus payment under the Incentive Plan based upon the attainment of one or more performance objectives that are established by the Compensation Committee and relate to financial and operational metrics with respect to the Company or any of its subsidiaries (the “Corporate Performance Goals”), including the following:  cash flow (including, but not limited to, operating cash flow and free cash flow); research and development, publication, clinical and/or regulatory milestones; earnings before interest, taxes, depreciation and amortization; net income (loss) (either before or after interest, taxes, depreciation and/or amortization); changes in the market price of the Company’s common stock; economic value-added; acquisitions or strategic transactions, including licenses, collaborations, joint ventures or promotion arrangements; operating income (loss); return on capital, assets, equity, or investment; total stockholder returns; coverage decisions; productivity; expense efficiency; margins; operating efficiency; working capital; earnings (loss) per share of the Company’s common stock; sales or market shares; number of prescriptions or prescribing physicians; revenue; corporate revenue; operating income and/or net annual recurring revenue, any of which may be (A) measured in absolute terms or compared to any incremental increase, (B) measured in terms of growth, (C) compared to another company or companies or to results of a peer group, (D) measured against the market as a whole and/or as compared to applicable market indices and/or (E) measured on a pre-tax or post-tax basis (if applicable).  Further, any Corporate Performance Goals may be used to measure the performance of the Company as a whole or a business unit or other segment of the 

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Company, or one or more product lines or specific markets.  The Corporate Performance Goals may differ from Covered Executive to Covered Executive. 

(b)Calculation of Corporate Performance Goals.  At the beginning of each applicable performance period, the Compensation Committee will determine whether any significant element(s) will be included in or excluded from the calculation of any Corporate Performance Goal with respect to any Covered Executive.  In all other respects, Corporate Performance Goals will be calculated in accordance with the Company’s financial statements, generally accepted accounting principles, or under a methodology established by the Compensation Committee at the beginning of the performance period and which is consistently applied with respect to a Corporate Performance Goal in the relevant performance period.  

(c)Target; Minimum; Maximum.  Each Corporate Performance Goal shall have a “target” (100 percent attainment of the Corporate Performance Goal) and may also have a “minimum” hurdle and/or a “maximum” amount.  

(d)Bonus Requirements; Individual Goals.  Except as otherwise set forth in this Section 4(d):  (i) any bonuses paid to Covered Executives under the Incentive Plan shall be based upon objectively determinable bonus formulas that tie such bonuses to one or more performance targets relating to the Corporate Performance Goals, (ii) bonus formulas for Covered Executives shall be adopted in each performance period by the Compensation Committee and communicated to each Covered Executive at the beginning of each performance period and (iii) no bonuses shall be paid to Covered Executives unless and until the Compensation Committee makes a determination with respect to the attainment of the performance targets relating to the Corporate Performance Goals.  Notwithstanding the foregoing, the Compensation Committee may adjust bonuses payable under the Incentive Plan based on achievement of one or more individual performance objectives or pay bonuses (including, without limitation, discretionary bonuses) to Covered Executives under the Incentive Plan based on individual performance goals and/or upon such other terms and conditions as the Compensation Committee may in its discretion determine.

(e)Individual Target Bonuses.  The Compensation Committee shall establish a target bonus opportunity for each Covered Executive for each performance period.  For each Covered Executive, the Compensation Committee shall have the authority to apportion the target award so that a portion of the target award shall be tied to attainment of Corporate Performance Goals and a portion of the target award shall be tied to attainment of individual performance objectives. 

(f)Employment Requirement.  Subject to any additional terms contained in a written agreement between the Covered Executive and the Company, the payment of a bonus to a Covered Executive with respect to a performance period shall be conditioned upon the Covered Executive’s employment by the Company on the bonus payment date.  If a Covered Executive was not employed for an entire performance period, the Compensation Committee may pro rate the bonus based on the number of days employed during such period.

	
5.
	
Timing of Payment

(a)With respect to Corporate Performance Goals established and measured on a basis more frequently than annually (e.g., quarterly or semi-annually), the Corporate Performance 

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Goals will be measured at the end of each performance period after the Company’s financial reports with respect to such period(s) have been published.  If the Corporate Performance Goals and/or individual goals for such period are met, payments will be made as soon as practicable following the end of such period, but not later than 74 days after the end of the fiscal year in which such performance period ends.

(b)With respect to Corporate Performance Goals established and measured on an annual or multi-year basis, Corporate Performance Goals will be measured as of the end of each such performance period (e.g., the end of each fiscal year) after the Company’s financial reports with respect to such period(s) have been published.  If the Corporate Performance Goals and/or individual goals for any such period are met, bonus payments will be made as soon as practicable, but not later than 74 days, after the end of the relevant fiscal year.  

(c)For the avoidance of doubt, bonuses earned at any time in a fiscal year must be paid no later than 74 days after the last day of such fiscal year.

	
6.
	
Amendment and Termination

The Company reserves the right to amend or terminate the Incentive Plan at any time in its sole discretion.

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ACTIVE/93491381.3Exhibit

March 26, 2018 

CONFIDENTIAL

Paul Oldham
16929 SW Arbutus Drive
Beaverton, OR 97007

Dear Paul:

We are extremely pleased to offer you the position of Executive Vice President & Chief Financial Officer of Advanced Energy Industries, Inc. (the “Company” or “Advanced Energy”) on the terms set forth in this offer letter.  Based on our discussions, you would start with AE on May 2, 2018 (the “Start Date”), with your office located in Colorado.  We plan to announce your decision to join the Company shortly after your acceptance of this offer letter and completion of applicable background checks.  

Base Salary. Your salary will be $400,000 on an annualized basis and will be paid semi-monthly, less applicable taxes, deductions and withholdings, and is subject to annual review. 

Incentive Compensation. In addition to the above base salary, you will be eligible for discretionary short- and long-term incentive as outlined below. 

2018 Short-Term Incentive Plan (“2018 STIP”). The 2018 STIP provides for a 2018 target cash incentive percentage for this position of 70% of your annual base salary.  Payout will be dependent on the Company’s financial performance and your continued active employment with the Company in your position through the date that the incentive award is paid. For a further description of the 2018 STIP, you may refer to our SEC filings. The 2018 STIP opportunity does not constitute a promise or guarantee of payment. The 2018 STIP will be pro-rated based on your Start Date.

2018 Long-Term Incentive Plan (“2018 LTIP”). The 2018 LTIP provides $800,000 in grant-date-value, at target, of equity compensation for this position. The award of such incentive is dependent on the Company achieving certain performance metrics and your continued active employment with the Company in your position through the date that the incentive equity is awarded.  For a further description of the 2018 LTIP, you may refer to our SEC filings. The 2018 LTIP opportunity does not constitute a promise or guaranty of payment.  The 2018 LTIP will be pro-rated based on your Start Date.

General Terms of Incentive Compensation. You must remain an active employee of the Company for the equity grants to vest in accordance with their terms. Other terms are set forth in the 2017 Omnibus Incentive Plan and related award agreements that provide the grants.  In the event of a conflict between the terms of this offer letter and the terms of the 2018 STIP plan document, the 2017 Omnibus Incentive Plan or related award agreements, the terms of the 2018 STIP plan document, the 2017 Omnibus Incentive Plan or the related award agreements, as applicable, will control. Copies of these incentive plans and programs are available to you upon request. 

Stock Ownership Policy. Please be aware that you will be subject to the Company’s Stock Ownership Policy at the EVP level which is described in our annual proxy statement.

Executive Change in Control Severance Agreement.  We will also offer you the Company’s standard EVP level change in control severance agreement as disclosed in our SEC filings. 

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Relocation Program. We will also offer you the Company’s executive relocation program. Please consult with Rob Fuchs, our SVP of Human Resources, regarding the terms of such program.  As mentioned above, should you decide to leave the Company within 18 months after the Start Date, you would be required to repay back to the Company any amounts paid to you for relocation.

Benefits. This offer will be in accordance with our standard Company agreements, including the AE Employee Agreement, and policies applicable to executive officers, which agreements and policies cover such items as medical, moving, vacation, and disability benefits. 

The Company’s benefit programs are re-evaluated from time to time and are subject to change or cancellation at any time, at the discretion of the Company.  This may include coverage offered and the cost of coverage. 
 
As an executive of Advanced Energy, you are expected to continue to manage your personal time off in an efficient manner.  You will not accrue PTO but will be able to take time off at your own discretion.  Advanced Energy also recognizes seven (7) company-sponsored holidays during each calendar year.

Conditions of Employment. Please note that this offer is subject to our standard practice of conducting a background check.  Once you join as an employee of Advanced Energy, you will be subject to all policies and procedures.  The information in this letter is not intended to constitute a contract of employment, either express or implied. Your employment with Advanced Energy Industries, Inc. shall be at will, which means that either you or the Company may terminate the employment relationship at any time and for any reason, with or without advanced notice. Please also note that this offer is subject to final approval by our Board of Directors, which currently is in process.

This offer is extended through March 27, 2018, and we hope to have a positive response from you no later than that date.

Paul, I am very excited about your decision to join Advanced Energy. We believe your experience, skill-set and personal attributes will add great value, and we look forward to having you as a critical member of our executive team.

Regards, 

/s/ Yuval Wasserman

Yuval Wasserman 
President & Chief Executive Officer
Advanced Energy Industries Inc. 
                            

AGREED AND ACCEPTED:

                            
__Paul Oldham________________ Name (Printed)

__/s/ Paul Oldham _____________ Signature    
    
_ March 27, 2018 ______________ Date

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