Document:

Document

October 7, 2019

Bruce Car

Dear Bruce,

I am pleased to extend to you a contingent offer for the position of Chief Scientific Officer at Agios Pharmaceuticals, Inc. (the “Company”), reporting to me with a start date of January 6, 2020.  You will receive a semi-monthly salary of $20,833.34 which is equivalent to $500,000.16 annually. Agios will provide relocation assistance for your move to the Boston area covering reasonable relocation costs.  If you leave the company within 18 months you will be required to repay the full amount covered for relocation assistance.  

You will be eligible for our annual Bonus and Equity Programs.  If the company meets or exceeds its annual goals, a pool will be established for employees, which will be subject to approval by the Board of Directors.  This pool will be allocated according to level and your individual performance.  Your bonus payment and equity grant will be pro-rated based on the amount of time you worked at Agios in the prior calendar year and you must be employed by Agios at the time of payment/grant in order to receive them. Your target bonus is 45% of your base compensation.  You will be eligible to participate in the 2020 plan year, which begins on January 1, 2020.

Subject to approval by the Board of Directors or its designated representative, on your start date (the “Grant Date”), you will be granted: (i) stock options to purchase shares of the company’s Common stock (the “Options”) with a Black-Scholes value of $1.5 million, based on the closing price of the Company’s common stock on the Grant Date (the “Closing Price”); (ii) a number of restricted stock units (the “RSUs), which the number shall be determined by dividing $500,000 by the Closing Price; and (iii) a number of performance share units (the “PSUs”), which number shall be determined by dividing $1.0 million by the Closing Price.  The Options will have an exercise price per share equal to the Closing Price and will become exercisable as to 25% of the underlying shares on the first anniversary of the Grant Date and the remaining shares will vest and become exercisable monthly thereafter until the fourth anniversary of the Grant Date.  Each RSU shall entitle you to receive one share of the Company’s common stock for each RSU that vests.   One-third of the RSUs shall vest on each of the first, second and third anniversaries of the Grant Date.  The PSUs give you the opportunity to earn full value shares of Agios stock upon achievement against any or all of the performance goals outlined, with each PSU entitling you to receive one share of the Company’s common stock for each PSU that vests.  Achievement against each goal will be evaluated independently by the Compensation Committee of the Board of Directors.   Upon confirmed achievement, you will receive 100% of the target share units corresponding to the specific goal as outlined.  The opportunity to achieve all of these milestones runs through the end of 2022, at which time, any unearned shares will be forfeited.  The specific performance milestones for the PSUs will be the same as those contained in 2019 PSU grants to 
88 Sidney Street ●   Cambridge, MA 02139
Main:  617-649-8600 ● Fax: 617-649-8618
www. agios.com

the Company’s executive officers.  The Option, RSUs, and PSUs will be subject to the terms and conditions of the Company’s 2013 Stock Incentive Plan (the “Plan”) and the applicable award agreement.  

You will be eligible to participate in all of the company’s benefits plans, which include Medical and Dental Insurance Programs, Flexible Spending Program for medical and daycare expenses, Life Insurance, AD&D, and Short and Long Term Disability Plans, and 401(k). The Company provides a discretionary time off policy and 11 paid holidays annually in accordance with the company holiday schedule.  

You are also eligible to receive severance benefits under our Severance Benefits Plan, effective April 22, 2016 (the “Severance Benefits Plan”) for a Covered Termination as defined in the Severance Benefits Plan.

In the initial recruitment process you were advised that your acceptance of this position is with the understanding that the offer of employment is contingent upon successful completion of a background investigation.  We will contact you as soon as the background check process has been completed.  At that time, assuming successful completion of this process, we can determine the date when your employment will begin.

The offer of employment is also contingent upon your signing the company’s standard  Forms of Agreement Regarding Inventions, Confidentiality and Non-Competition (Copy attached) and I-9 Employment Verification Form.  You will be required to submit documentation that establishes identity and employment eligibility in accordance with the US Immigration and Naturalization requirements.  If there are any other agreements of any type that you are aware of which may impact or limit your ability to perform your job at Agios Pharmaceuticals, please let us know as soon as possible.

This offer letter is not intended to create or constitute an employment agreement or contract between you and Agios Pharmaceuticals.  It is also important for you to understand that Massachusetts is an “at will” employment state.  This means that you will have the right to terminate your employment relationship with Agios Pharmaceuticals at any time for any reason.  Similarly, Agios Pharmaceuticals will have the right to terminate its employment relationship with you at any time for any reason, except as prohibited by law. 

88 Sidney Street ●   Cambridge, MA 02139
Main:  617-649-8600 ● Fax: 617-649-8618
www. agios.com

I am very excited about having you join our team and I anticipate that you will make many important contributions to our Company and strategic mission.  Please acknowledge your acceptance of this offer by returning a signed copy of this letter no later than October 14, 2019. 
 

Best regards, 

/s/ Jacqualyn Fouse

Jacqualyn Fouse, Ph.D. Chief Executive Officer
Agios Pharmaceuticals, Inc

 I accept this contingent offer of employment with Agios Pharmaceuticals Inc., subject to successful completion of my background investigation.

Signature:

/s/ Bruce D. Car     October 11, 2019 
              Date
88 Sidney Street ●   Cambridge, MA 02139
Main:  617-649-8600 ● Fax: 617-649-8618
www. agios.comDocument

Certain identified information has been marked in the exhibit because it is both (i) not material and (ii) would likely cause competitive harm to the Company, if publicly disclosed. 
Double asterisks denote omissions.

AMENDMENT TO
MASTER RESEARCH AND COLLABORATION AGREEMENT
        This Amendment to Master Research and Collaboration Agreement (this “Amendment”) is entered into as of February 5, 2020 (the “Amendment Date”), by and among Agios Pharmaceuticals, Inc., a Delaware corporation (“Agios”), on the one hand, and Celgene Corporation, a Delaware corporation (“Celgene Corp.”), with respect to all rights and obligations under the Master Collaboration Agreement (as defined below) in the United States, and Celgene RIVOT Ltd., a Bermuda entity (“Celgene RIVOT”), with respect to all rights and obligations under the Master Collaboration Agreement outside of the United States (Celgene RIVOT and Celgene Corp. together, “Celgene”), on the other hand.  Capitalized terms used herein and not defined herein shall have the meanings ascribed to them in the Master Collaboration Agreement.
        WHEREAS, the Parties entered into that certain Master Research and Collaboration Agreement, dated as of May 17, 2016 (the “Master Collaboration Agreement”), pursuant to which Celgene obtained exclusive options to obtain certain rights to participate in the development and commercialization of Compounds and Products arising out of activities conducted pursuant to certain research and development programs under the Master Collaboration Agreement and to share profits and losses arising from the development and commercialization of such Compounds and Products on a worldwide basis; and
        WHEREAS, the Parties previously entered into a certain Appendix Substitution Agreement dated as of January 29, 2019, relating to the Master Collaboration Agreement;
        NOW THEREFORE, the Parties are entering into this Amendment to provide for (i) a modification to the notice period for extensions of the Research Term and (ii) an extension of the Option Exercise Window solely with respect to the [**], in each case as set forth below.
1. Amendment Relating to Research Term.
Section 2.1.2(a) of the Master Collaboration Agreement is hereby deleted and replaced in its entirety with the following:
“2.1.2(a) Initial Extension Right.  Celgene may, at its election, extend the Research Term for up to two (2) one (1) year extension periods (each to run consecutively after the end of the then-current Research Term) by giving notice to Agios of its election (i) in the case of the first one (1) year extension period, by no later than [**] and (ii) in the case of the second one (1) year extension period, at least [**] prior to the expiration of the then-current Research Term, and (in each case (i) and (ii)) by paying the Research Term Extension Fee as set forth in Section 6.3.”
2. Amendment Relating to the Option Exercise Window with respect to the [**].

(a) Prior to the Amendment Date, Agios provided to Celgene an Option Data Package for the [**].  Celgene acknowledges receipt of such Option Data Package.
(b) The Option Exercise Window applicable to the [**] is hereby amended to continue through [**] and to expire at the end of such day.  
3. Continued Effectiveness of Master Collaboration Agreement.  As amended hereby, the Master Collaboration Agreement remains in full force and effect.
[Signature Pages Follow]

IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties have caused this Amendment to be executed by their respective duly authorized officers as of the date first written above.
CELGENE CORPORATION
By:  /s/ Susana Parathath Name: Susana ParathathTitle: Dir Global Alliances
[Signature Page to Amendment to Master Research and Collaboration Agreement]

IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties have caused this Amendment to be executed by their respective duly authorized officers as of the date first written above.

Solely with respect to the rights and obligations under the Master Collaboration Agreement outside of the United States (subject to Section 12.13 of the Master Collaboration Agreement):
CELGENE RIVOT LTD.
By: /s/ Kevin Mello  Name: Kevin MelloTitle: Director 
[Signature Page to Amendment to Master Research and Collaboration Agreement]

IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties have caused this Amendment to be executed by their respective duly authorized officers as of the date first written above.
AGIOS PHARMACEUTICALS, INC.
By:  /s/ Andrew Hirsch Name: Andrew HirschTitle: Chief Financial Officer
 [Signature Page to Amendment to Master Research and Collaboration Agreement]

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