Document:

Exhibit 10.3

 

2014 AMENDMENT TO THE

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

BETWEEN GTx, INC. AND MARC S. HANOVER

 

This amendment (the “2014 Amendment”) to the Amended and Restated Employment Agreement, dated as of February 14, 2013 (the “Agreement”), between GTx, Inc. (“Employer”) and Marc. S. Hanover (“Employee”), is made effective as of April 3, 2014 (the “Effective Date”).  Other than as to the terms and conditions contained in this 2014 Amendment, this 2014 Amendment shall not otherwise modify the Agreement, which Agreement shall remain in full force and effect. Capitalized terms not otherwise defined in this 2014 Amendment shall have the same meaning as in the Agreement.

 

WHEREAS, the Employee has been providing services to the Employer as President and Chief Operating Officer under the terms of the Agreement; and

 

WHEREAS, in connection with Employee’s appointment as Interim Chief Executive Officer (“CEO”) of the Employer, the Employer and Employee wish to amend the Agreement as set forth herein.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the adequacy and sufficiency of which is hereby acknowledged, the Employer and Employee agree as follows:

 

1.              Duties.  The Employee will continue to have such duties as are assigned or delegated to the Employee by the Board of Directors or the CEO (if the Employee is not then serving as Interim CEO) and will initially serve as President and Chief Operating Officer, and as Interim CEO, for the Employer.

 

2.              Benefits in the Event of Certain Terminations of Employment.  In the event of Employee’s Termination Without Cause (other than a termination by the Employer due to the Employee’s death or disability), or the Employee’s voluntary termination of employment due to a “Material Demotion” (as defined below), in each case occurring at any time during the “Transition Period” (as defined below) (each, a “Covered Termination”), and provided that the Employee signs and allows to become effective a Release within the time period provided therein (but not later than the 60th day following the Termination Date, such latest permitted effective date is the “Release Deadline” for purposes of this 2014 Amendment and the Agreement), then the Employee will be eligible to receive the following benefits (the “Severance Benefits”), subject to Section 9.2 of the Agreement:

 

a.              The Employee shall receive as severance one (1) year of his Salary, payable in accordance with the Employer’s then current payroll schedule over the one (1) year

 

1

 

period following the Termination Date, less deductions required by law.  Notwithstanding the foregoing payment schedule, no severance will be paid prior to the effective date of the Release.  Subject to Section 9.2 of the Agreement, on the first regular payroll pay day following the effective date of the Release, the Employer will pay the Employee the severance that the Employee would otherwise have received on or prior to such date but for the delay in payment related to the effectiveness of the Release, with the balance of the severance being paid as originally scheduled.

 

b.              The vesting of all stock options then held by the Employee and granted to the Employee by the Employer prior to April 3, 2014 (the “Prior Options”) will be accelerated in full, such that all unvested Prior Options will become immediately vested and exercisable as of the Termination Date.

 

c.               The stock option to purchase 500,000 shares of the Company’s common stock granted to Employee on April 3, 2014 (the “April Option” and together with the Prior Options, the “Options”) will be credited with that number of months of service required for purposes of vesting in such April Option such that on the Termination Date, the number of shares subject to the April Option that would have vested as if Employee had continued in service with the Employer for an additional 24 months will immediately vest and become exercisable.

 

d.              Each of the Options will remain outstanding and exercisable until the earlier of (i) the original expiration of the term of the Options and (ii) the date which occurs five (5) years following the Termination Date.

 

3.              Definitions.  For purposes of this 2014 Amendment, the following terms have the meanings specified:

 

a.              “Material Demotion” shall mean, without the Employee’s consent, a material reduction in the Employee’s authority, duties or responsibilities as in effect prior to the Effective Date with respect to (and only with respect to) the positions of President and Chief Operating Officer, or the assignment to the Employee of any duties and responsibilities which are materially inconsistent with and adverse to such authority, duties and responsibilities.  For avoidance of doubt, and notwithstanding the last sentence of Section 2.3 of the Agreement (which provides that “Employee may be re-assigned or transferred to another management position, as designated by the Board or the CEO, which may or may not provide the same level of responsibility as the initial assignment”), if during the Transition Period the then-serving CEO or the Board transfers or reassigns Employee to a position other than President and Chief Operating Officer, Employee shall be eligible to resign and receive the Severance Benefits under this 2014 Amendment on account of a “Material Demotion.”

 

2

 

b.              “Transition Period” shall mean the period commencing on the first date the next person appointed as Employer’s Chief Executive Officer shall assume the duties of Employer’s Chief Executive Officer (the “New CEO Hire Date”) and ending on the earlier to occur of (i) the 181st day following the New CEO Hire Date or (ii) a Change of Control.

 

4.              Termination of this 2014 Amendment; Incorporation of Agreement.

 

a.              Unless otherwise amended or extended by written agreement of the parties, this 2014 Amendment shall automatically terminate without further action of the parties on the first to occur of (i) the lapse of 181 days after the New CEO Hire Date or (ii) a Change of Control.  For avoidance of doubt, (x) if Employee’s employment with Employer is terminated by the Employer for any reason, or if Employee voluntarily resigns his employment with Employer for any reason, in each case prior to the New Hire CEO Date, then Employee shall not be entitled to any Severance Benefits under this 2014 Amendment; (y) if a Change of Control occurs (1) prior to the New CEO Hire Date, then Employee shall not be entitled to any Severance Benefits under this 2014 Amendment or (2) within 180 days after the New CEO Hire Date, then Employee shall be entitled to the Severance Benefits under this 2014 Amendment if and only if a Covered Termination occurs prior to such Change of Control; and (z) any severance benefits to which the Employee would be entitled in the event of a Change of Control Termination shall be determined solely by reference to the Agreement.

 

b.              All terms of the Agreement that do not conflict with the terms of this 2014 Amendment shall be incorporated into this 2014 Amendment and shall remain in full force and effect.

 

IN WITNESS WHEREOF, the parties have executed and delivered this 2014 Amendment, all effective as of the Effective Date.

 

	
 
    	
MARC   S. HANOVER
    
	
 
    	
 
    
	
 
    	
/s/   Marc S. Hanover
    
	
 
    	
 
    
	
 
    	
GTx, Inc.
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Henry P. Doggrell
    
	
 
    	
Name:   
    	
Henry   P. Doggrell
    
	
 
    	
Title:   
    	
Vice   President, Chief Legal Officer
    

 

3Exhibit 10.1

 

FIRST AMENDMENT TO AMENDED AND RESTATED BUSINESS MANAGEMENT AGREEMENT

 

This FIRST AMENDMENT TO AMENDED AND RESTATED BUSINESS MANAGEMENT AGREEMENT, dated as of May 9, 2014 (this “Amendment”), by and between Reit Management & Research LLC, a Delaware limited liability company (the “Manager”), and Government Properties Income Trust, a Maryland real estate investment trust (the “Company”).

 

WHEREAS, the Company and the Manager are parties to an Amended and Restated Business Management Agreement, dated as of December 23, 2013 (the “Business Management Agreement”); and

 

WHEREAS, the Company and the Manager wish to amend the Business Management Agreement as further provided in this Amendment;

 

NOW, THEREFORE, in consideration of the mutual agreements herein set forth, the parties hereto agree as follows:

 

1.   Section 20 of the Business Management Agreement is hereby replaced in its entirety to read as follows:

 

Term, Termination.  This Agreement shall continue in force and effect until December 31, 2014, and shall be automatically renewed for successive one year terms annually thereafter unless notice of non-renewal is given by the Company or the Manager before the end of the term.  It is expected that the terms and conditions may be reviewed by the Independent Trustees at least annually.

 

Notwithstanding any other provision of this Agreement to the contrary, this Agreement, or any extension thereof, may be terminated by the Company upon sixty (60) days’ written notice to the Manager, which termination must be approved by a majority vote of the Independent Trustees, or by the Manager on one hundred twenty (120) days’ written notice to the Company, provided if the Company gives notice of termination or notice of non-renewal of this Agreement, in either case given other than for Cause (either, a “Covered Termination”), the Company shall pay the Manager an amount (the “Termination Fee”) determined by (a) taking the average of the installments of the Management Fee payable for each of the twenty-four consecutive calendar months ended next prior to the date of notice of the Covered Termination (the “Determination Period”) and multiplying the average monthly installment by 12 (the “Annual Management Fee”), (b) taking the aggregate of all amounts payable for internal audit services pursuant to Section 15 of this Agreement during the Determination Period and dividing the result by 2 (the “Annual Audit Services Expense”) and (c) adding the Annual Management Fee and the Annual Audit Services Expense and multiplying the sum by 2.75.  One half of the Termination Fee shall be paid in cash together with the notice of the Covered Termination and the balance on or before the effective date of the Covered Termination.

 

If there is a Covered Termination within twenty-four calendar months following a merger between the Company and another RMR Managed Company, in determining the Termination Fee: monthly installments of the Management Fee and amounts payable for internal audit services for the portion of the Determination Period which follows the merger shall be those payable by the survivor of the merger, and monthly installments of the Management Fee and amounts payable for internal audit services for the portion of the Determination Period which is prior to the merger shall be the aggregate of those payable by each of the Company and the other RMR Managed Company.

 

If there is a Covered Termination within twenty-four calendar months following the spin-off of a subsidiary of the Company (by sale in whole or part to the public or distribution to the Company’s shareholders) to which the Company contributed Properties (the “Contributed Properties”) and which was an RMR Managed Company both at the time of the spin-off and on the date of the Covered Termination, in determining the Termination Fee: (a) monthly installments of the Management Fee for the portion of the Determination Period which is prior to the spin-off shall be recalculated based upon Average Invested Capital and Average Invested Capital of the Transferred Assets after reduction by the historical cost of the Contributed Properties (if then included in Average Invested Capital or Average Invested Capital of the Transferred Assets), provided such recalculated monthly installments of the Management Fee shall only be used in determining the Termination Fee if they result in monthly installments of

 

 

the Management Fee for the period prior to the spin-off which would have been lower than those which were payable, and (b) amounts payable for internal audit services for the portion of the Determination Period which is prior to the spin-off shall be reduced to represent the same percentage of amounts charged to all RMR Managed Companies as is charged to the Company after the spin-off.

 

Except for payment of the Termination Fee in the event of a Covered Termination, Section 21 hereof shall govern the rights, liabilities and obligations of the parties upon termination of this Agreement; and, except as provided in Sections 19, 20 and 21, such termination shall be without further liability of either party to the other, other than for breach or violation of this Agreement prior to termination.

 

For purposes of this Section 20, “Cause” shall mean acts of the Manager constituting bad faith, willful or wanton misconduct or gross negligence in the performance of its obligations under this Agreement.

 

The provisions of this Section 20 shall not apply as a limitation on the amount which may be paid by agreement of the Company and the Manager in connection with a transaction pursuant to which any assets or going business values of the Manager are acquired by the Company in association with termination of this Agreement and the Termination Fee is in addition to any amounts otherwise payable to the Manager under this Agreement as compensation for services and for expenses of or reimbursement due to the Manager through the date of termination.

 

2.   The following shall be added to Section 21 of the Business Management Agreement as the last paragraph:

 

In addition to other actions on termination or non-renewal of this Agreement, for up to one hundred twenty (120) days following the date of any notice of a Covered Termination or any notice of termination given by the Manager, the Manager shall cooperate with the Company and use commercially reasonable efforts to facilitate the orderly transfer of the management and real estate investment services provided under this Agreement to employees of the Company or to its designee, including, but not limited to the transfer of bookeeping and accounting functions and legal and regulatory compliance and reporting. In connection therewith, the Manager shall assign to the Company, and the Company shall assume, any authorized agreements the Manager executed in its name on behalf of the Company and the Manager shall assign to the Company all proprietary information with respect to the Company.  Additionally, the Company or its designee shall have the right to offer employment to any employee of the Manager whom the Manager proposes to terminate in connection with the Covered Termination and the Manager shall cooperate with the Company or its designee in connection therewith.

 

3.   This Amendment shall be effective as of the day and year first above written. Except as amended hereby, and as so amended, the Business Management Agreement shall remain in full force and effect and shall be otherwise unaffected hereby.

 

4.   The provisions of this Amendment shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts.

 

5.   This Amendment may be executed in separate counterparts, each of such counterparts shall for all purposes be deemed to be an original and all such counterparts shall together constitute but one and the same instrument.

 

[Signature Page to Follow]

 

2

 

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to Amended and Restated Business Management Agreement to be executed by their duly authorized officers, under seal, as of the day and year first above written.

 

	
 
    	
MANAGER:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
REIT MANAGEMENT & RESEARCH LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Adam D. Portnoy
    
	
 
    	
Name: 
    	
Adam   D. Portnoy
    
	
 
    	
Title: 
    	
President   and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GOVERNMENT PROPERTIES INCOME TRUST
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Blackman
    
	
 
    	
Name: 
    	
David   M. Blackman
    
	
 
    	
Title: 
    	
President   and Chief Operating Officer
    

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}]]