Document:

EX-10.7

  Exhibit 10.7

   

  global blood therapeutics, INC.
AMENDED AND RESTATED U.S. CASH INCENTIVE BONUS PLAN

  
   1.
   
    Purpose
   

  

  This Amended and Restated U.S. Cash Incentive Bonus Plan (the “Plan”) is intended to provide an annual incentive for superior work and to help motivate eligible U.S. employees of Global Blood Therapeutics, Inc. (the “Company”) toward even higher achievement and business results, to further tie their goals and interests to those of the Company and its stockholders and to help enable the Company to attract and retain highly qualified employees.  This Plan is intended to cover eligible U.S. employees of the Company

  
   2.
   
    Participants
   

  

  Except as provided in the remainder of this paragraph, each full-time and part-time U.S. employee of the Company who is employed for more than 30 hours a week and employed on the last day of the applicable Plan Year (except as specifically provided in Section 7) whose employment start date is before October 1st of the applicable Plan Year may participate in the Plan (each, a “Participant”). Temporary employees are not eligible to participate in the Plan, and sales employees who are eligible to participate in sales incentive compensation plans of the Company are not eligible to participate in the Plan.

  
   3.
   
    Plan Year
   

  

  The “Plan Year” is the calendar year.

  
   4.
   
    Target Bonus and Weighting Percentages
   

  

  “Target Bonus Percentage” levels are the percentages of base salary that are generally expected to apply for bonuses under the Plan for any Plan Year at the position levels below. Target Bonus Percentage levels may vary from Plan Year to Plan Year and between positions. “Weighting Percentage” are the allocation between corporate and individual performance goals under the Plan for any Plan Year at the position levels below. Weighting Percentage by level may vary from Plan Year to Plan Year and between position. However, as a general guideline, the Target Bonus Percentage levels and the Weighting Percentage allocations, which will typically be assigned to various categories of employees for all roles except the Access Navigator roles which are listed separately in the second table below (and vary depending on responsibility level within each category), are as follows:

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	Level
	Position Level
	Target Bonus Percentage
	Weighting Percentage
(Corp./ Indiv.)

	15
	CEO
	70%
	100 / 0

	14
	EVP/C-Suite
	50%
	80 / 20

	13
	SVP (Section 16 or SMT)
	45%
	80 / 20

	12
	SVP
	40%
	60 / 40

	11
	VP
	35%
	60 / 40

	10
	Executive Director
	32%
	50 / 50

	9
	Senior Director / Sr. Principal Scientist
	28%
	50 / 50

	8
	Director / Principal Scientist
	23%
	40 / 60

	7
	Associate Director / Staff Scientist
	20%
	25 / 75

	6
	Sr. Manager / Sr. Scientist
	18%
	25 / 75

	5
	Manager / Scientist 2
	15%
	25 / 75

	4
	Associate Scientist / Scientist 1
	12%
	25 / 75

	3
	Analyst / Executive Assistant / Sr. Research Associate 
	12%
	25 / 75

	2
	Sr. Administrative Assistant / Research Associate / Coordinator 
	10%
	25 / 75

	1
	Support
	10%
	25 / 75

   

  				
	Level
	Position Level (Access Navigator roles)
	Target Bonus Percentage
	Weighting Percentage
(Corp./ Indiv.)

	11
	VP
	35%
	60 / 40

	10
	Executive Director
	32%
	50 / 50

	9
	Senior Director / Sr. Zone Access Navigator Director
	28%
	50 / 50 

	8 
	Zone Access Navigator Director 
	25%
	40 / 60

	6 / 7 
	Regional Access Navigator Lead / Sr. Regional Access Navigator Director
	22%
	25 / 75

	4 / 5
	Access Navigator / Sr. Access Navigator 
	18%
	25 / 75

   

  If a Participant moves to a higher Target Bonus Percentage level during the Plan Year, that Participant’s Target Bonus Percentage will be reset at the higher level (and with the corresponding Weighting Percentage allocation) for the entire Plan Year. If a Participant moves to a lower Target Bonus Percentage level during the Plan Year, that Participant’s Target Bonus Percentage will be reset at the lower level (and with the corresponding Weighting Percentage allocation) for the entire Plan Year.  

  Target Bonus Percentage levels may be determined by the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) (or its delegate, as applicable) in its sole discretion. For each Participant, the Compensation Committee (or its delegate, as applicable) shall have the authority to apportion the target award so that a portion of 

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  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 goals, in accordance with Weighting Percentage allocation above.

  
   5.
   
    Administration
   

  

  The Plan will be administered by the Compensation Committee, in its sole discretion, or, to the extent delegated by the Compensation Committee, a committee consisting of the Company’s Chief Executive Officer and at least one other executive officer of the Company for Participants except (i) those at or above the level of Vice President who report directly to the Company’s Chief Executive Officer or (ii) any “officers” as defined in Section 16 of the Securities Exchange Act of 1934, as amended, and Rule 16a-1 promulgated thereunder.

  
   6.
   
    Bonus Determinations
   

  

  
   a.
   
    Corporate Performance Goals.  A Participant may receive a bonus payment under the 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”).
   

  

  
   b.
   
    Calculation of Corporate Performance Goals.  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 Plan Year and that is consistently applied with respect to a Corporate Performance Goal for the relevant Plan Year.  
   

  

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

  

  
   d.
   
    Bonus Requirements.  Except as otherwise set forth in this Section 6(d):  (i) any bonuses paid to  Participants under the Plan shall be based upon (A) objectively determinable bonus formulas that tie such bonuses to one or more performance targets relating to the Corporate Performance Goals and/or (B) the Participant’s contribution to the Company’s success and his/her success in achieving his/her individual objectives for the Plan Year, (ii) bonus formulas for Participants shall be adopted for each Plan Year by the Compensation Committee (or its delegate, as applicable) and communicated to each Participant at the beginning of each Plan Year and (iii) no bonuses shall be paid to Participants unless and until the Compensation Committee (or its delegate, as applicable) makes a determination with respect to the attainment of the performance targets relating to the Corporate Performance Goals and/or individual objectives.  If an employee who becomes a Participant during a Plan Year was not employed for the entire Plan Year, the Compensation Committee (or its delegate, if applicable) may prorate the bonus based on the number of days employed during the Plan Year.  In addition, a Participant who is on a leave of absence during the Plan Year may be eligible for a prorated bonus amount provided that he or she has been actively employed by the Company during the Plan Year, has attained the applicable Corporate Performance Goals and/or individual objectives, as determined by the Compensation Committee, and is an active employee of the Company when bonuses are 
   

  

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    paid (except as specifically provided in Section 7).  Notwithstanding the foregoing, the Compensation Committee may adjust bonuses payable under the Plan in its sole discretion.
   

  

  
   7.
   
    Termination of Employment; Death; Disability
   

  

  No bonus will be paid to any employee whose employment is terminated prior to the date the bonus is actually paid by the Company, except if such termination is due to death or disability (as determined by Compensation Committee (or its delegate, as applicable)), unless otherwise specifically agreed by the Compensation Committee (or its delegate, as applicable).

  If the Participant’s employment with the Company terminates by reason of the Participant’s disability or death during the Plan Year, the Participant or the Participant’s legal representative, as applicable, will be paid a bonus in cash (if and to the extent earned) based upon actual base salary of the Participant from the beginning of the Plan Year through the date of disability, or death, as applicable. Any such bonus will be paid at the same time at which all other Participants receive their bonuses for the Plan Year, but in no event later than 2 1⁄2 months following the end of the Plan Year in which the death or disability, as applicable, occurs.

  
   8.
   
    Payment of Awards
   

  

  Awards for any Plan Year will be paid in cash to a Participant or the Participant’s legal representative, as applicable, no later than 2 1⁄2 months following the end of applicable Plan Year. Benefits under the Plan are not transferable, and the Plan is unfunded.

  
   9.
   
    Withholding of Taxes
   

  

  Bonuses will be subject to income tax, if applicable, and employment tax withholding and contributions as required by all applicable laws.  

  
   10.
   
    Plan Amendments and Termination.
   

  

  The Plan may be revised, modified, or terminated at any time in the sole discretion of the Compensation Committee or the Board.

   

   

  Adopted:  January 6, 2016 
Amended effective: January 7, 2020

  Amended effective: January 1, 2021

  Amended effective: January 1, 2022

   

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  ACTIVE/112960897.2EX-10.12

   

  Exhibit 10.12

  Global Blood Therapeutics, Inc. 

  Amended and Restated Severance and Change in Control Policy

   

  Adopted on July 23, 2015

   

  (amended and restated on January 6, 2016, July 5, 2017, July 26, 2017, 

  December 13, 2017, March 13, 2018, July 23, 2019, October 16, 2019, January 7, 2020,  May 26, 2020, November 30, 2020 and January 1, 2022)

   

  Benefits in Connection with a Sale Event.

  In connection with a Sale Event (as defined in the Global Blood Therapeutics, Inc. 2015 Stock Option and Incentive Plan (as may be amended or restated, the “2015 Plan”)), employees of Global Blood Therapeutics, Inc. and its subsidiaries and affiliates (collectively, the “Company”) will be entitled to receive the following benefits in the event of a termination of their employment or other service relationship with the Company (or its successor or acquirer) without Cause (as defined below) or for Good Reason (as defined below) within one (1) year after the closing of the Sale Event (the “Change in Control Period”), subject to each such employee’s execution and non-revocation of a severance agreement within sixty (60) days following the date of such termination, including a general release of claims acceptable to the Company or its successor or acquirer:

   

  
   •
   
    Full acceleration of vesting of all outstanding equity-based awards, including stock options and restricted stock units, under the 2015 Plan, the Company’s 2017 Inducement Equity Plan, and such additional equity incentive plans, arrangements and agreements (as each may be further amended or restated) covering employees of the Company as the Company’s Board of Directors may adopt and approve from time to time (collectively, “Awards”), and for the sake of clarity, for any Awards accelerated in such manner that contain conditions and restrictions relating to the attainment of performance goals, such performance goals will be deemed achieved as determined under the applicable award agreement, or, if not specified in such award agreement, at one hundred percent (100%) of target levels; and
   

  

   

  
   •
   
    Payment of (a) severance in a lump sum in the amounts set forth below, (b) lump sum target incentive bonus payouts in the amounts set forth below, equal to (i) a percentage, as set forth below, of the employee’s Target Incentive Bonus for the year in which the closing of the Sale Event occurred plus (ii) a prorated incentive bonus payout for the portion of the year in which the closing of the Sale Event occurred, prorated based on employee’s Target Incentive Bonus and the date of termination of their employment or other service relationship with the Company and (c) if the employee was participating in the Company’s group health plan immediately prior to the date of termination of his or her employment and elects COBRA health continuation, payment of a monthly cash payment for the period set forth below or the employee’s COBRA health continuation period, whichever ends earlier, in an amount equal to the monthly employer contribution that the Company would have made to provide health insurance to the employee if the 
   

  

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    employee had remained employed by the Company, including, if applicable, the monthly employer contribution to a health savings account: 
   

  

   

  				
	Position
	Severance (Amount of Base Salary)
	Incentive Bonus
	Benefits Continuation

	Chief Executive Officer
	18 months
	150% Target Incentive Bonus and prorated Target Incentive Bonus
	18 months

	Senior Management Team (“SMT”) members
	12 months
	100% Target Incentive Bonus and prorated Target Incentive Bonus
	12 months

	Senior Vice Presidents and Vice Presidents (other than SMT members)
	9 months
	100% Target Incentive Bonus and prorated Target Incentive Bonus
	9 months

	All Other Employees 
 
	6 months
	100% Target Incentive Bonus and prorated Target Incentive Bonus
	6 months

   

  Benefits Not in Connection with a Sale Event.

  Certain designated employees of the Company who execute a participation letter in substantially the form attached hereto as Exhibit A will be entitled to receive the following benefits in the event of a termination of their employment or other service relationship with the Company (or its successor or acquirer) without Cause or for Good Reason outside of the Change in Control Period, subject to each such employee’s execution and non-revocation of a severance agreement within sixty (60) days following the date of such termination, including a general release of claims acceptable to the Company or its successor or acquirer:

   

  
   •
   
    Payment of (a) severance in a lump sum in the amounts set forth below, (b) lump sum target incentive bonus payouts in the amounts set forth below, equal to (i) a percentage, as set forth below, of the employee’s Target Incentive Bonus for the year in which such termination of employment or other service relationship occurred plus (ii) a prorated incentive bonus payout for the portion of the year in which such termination of employment or other service relationship occurred, prorated based on employee’s Target Incentive Bonus and the date of termination of their employment or other service relationship with the Company and (c) if the employee was participating in the Company’s group health plan immediately prior to the date of termination of his or her employment and elects COBRA health continuation, payment of a monthly cash payment for the period set forth below or the employee’s COBRA health continuation period, whichever ends earlier, in an amount equal to the monthly employer contribution that the Company would have made to provide health insurance to the employee if the employee 
   

  

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    had remained employed by the Company, including, if applicable, the monthly employer contribution to a health savings account: 
   

  

   

  				
	Position
	Severance (Amount of Base Salary)
	Incentive Bonus
	Benefits Continuation

	Chief Executive Officer
 
	12 months
	100% Target Incentive Bonus and prorated Target Incentive Bonus
	12 months

	SMT members 
	12 months
	N/A
	12 months

   

  General Provisions.

  For purposes of this Amended and Restated Severance and Change in Control Policy (this “Policy”), SMT members shall include (i) each individual who is then employed by the Company as an executive officer and (ii) such other employees of the Company as may be designated by the Compensation Committee of the Board as SMT members for purposes of this Policy from time to time, which individuals specified in clauses (i) and (ii) shall each continue to be considered SMT members for purposes of general severance and change in control severance benefits so long as they are employed with the Company as SMT members; provided that (a) if any such individual is employed by the Company in any other capacity (other than serving as a SMT member), such individual will be eligible for benefits under this Policy in accordance with their then-applicable level of service as provided above; (b) any individual employed as the Company’s Chief Executive Officer shall be eligible for the general severance and change in control severance benefits applicable to the Chief Executive Officer only so long as such individual is employed with the Company as the Chief Executive Officer (and if at any time such individual remains employed by the Company but is not serving as the Chief Executive Officer, e.g., serving as a non-CEO SMT member, such individual will be eligible for benefits under this Policy in accordance with his or her then-applicable level of service as provided above) and (c) any SMT member shall cease to be considered an SMT member for purposes of this Policy upon the termination of such individual’s employment with the Company (except to the extent such termination triggers such individual’s entitlement to general severance or change in control severance benefits in accordance with this Policy).

  The amounts payable pursuant to this Policy shall be paid or commence to be paid within 60 days following the date of termination of employment, provided that if the 60-day period begins in one calendar year and ends in a second calendar year, such payments shall be paid or commence to be paid in the second calendar year by the last day of such 60-day period.

  Upon the consummation of a Sale Event, to the extent Section 280G of the Internal Revenue Code is applicable to an employee, such employee shall be entitled to receive either: (a) payment of the full amounts set forth above to which the employee is entitled or (b) payment of such lesser amount that does not trigger excise taxes under Section 280G, whichever results in the employee receiving a higher amount after taking into account all federal, state, and local income, excise and employment taxes.

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  For purposes of this Policy, “Base Salary” shall mean the greater of (i) the base salary, at the annualized rate, in effect immediately prior to the date of termination or (ii) the base salary, at the annualized rate, in effect immediately prior to the Sale Event, as applicable. 

  For purposes of this Policy, “Cause” shall mean (i) the employee’s dishonest statements or acts with respect to the Company, or any current or prospective customers, suppliers, vendors or other third parties with which such entity does business, including without limitation, the employee engaging in misappropriation of funds or financial accounting improprieties; (ii) the employee’s commission of (A) a felony or (B) any misdemeanor involving moral turpitude, deceit, dishonesty or fraud; (iii) the employee’s continued non-performance of his or her duties to the Company which has continued for thirty (30) or more days following written notice of such non-performance by the Company; (iv) the employee’s material violation of the Company’s Code of Business Conduct and Ethics or of any of the Company’s other written employment, compliance or other policies as in effect from time to time; (v) the employee’s material violation of any provision of any agreement(s) between the employee and the Company relating to noncompetition, nonsolicitation, confidentiality, nondisclosure or assignment of inventions; or (vi) the employee’s failure to cooperate with a bona fide internal investigation or an investigation by regulatory or law enforcement authorities, after being instructed by the Company to cooperate, or the willful destruction or failure to preserve documents or other materials known to be relevant to such investigation or the inducement of others to fail to cooperate or to produce documents or other materials in connection with such investigation.

  For purposes of this Policy, “Good Reason” shall mean that the employee followed the “Good Reason Process” following the occurrence of (a) a material diminution in the employee’s job responsibilities (provided that a change in the employee’s job title or reporting relationship shall not be deemed a material diminution in the employee’s job responsibilities), (b) a material diminution in the employee’s base salary or (c) the relocation of the employee’s principal place of business to a location that is more than twenty-five (25) miles from the employee’s then-current location of employment. “Good Reason Process” shall mean that (i) the employee reasonably determines in good faith that a “Good Reason” condition has occurred; (ii) the employee notifies the Company (or its successor) in writing of the first occurrence of the Good Reason condition within 60 days of the first occurrence of such condition; (iii) the employee cooperates in good faith with the Company’s (or its successor’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) the employee terminates his employment within 60 days after the end of the Cure Period. If the Company or its successor cures the Good Reason condition during the Cure Period, Good Reason shall be deemed not to have occurred.

  For purposes of this Policy, “Target Incentive Bonus” shall mean the greater of (i) the target bonus in effect immediately prior to the date of termination or (ii) the target bonus in effect immediately prior to the Sale Event, as applicable.

  This Policy shall be administered by the Company, and the Company shall have the power and authority to interpret the terms and provisions of this Policy, to make all determinations it deems advisable for the administration of this Policy, to decide all disputes arising in connection with 

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  this Policy and to otherwise supervise administration of this Policy. The Company retains the right to amend, revise, change or end this Policy at any point in the future; provided that this Policy may not be amended or terminated during the period commencing on the date that it enters into a definitive agreement that if consummated, would result in a Sale Event and ending on the earlier of (i) one (1) year after a Sale Event and (ii) the termination of the definitive agreement without the consummation of a Sale Event. This Policy does not change the “at-will” employment status of any employee. 

  In the event an employee of the Company is party to an agreement or other arrangement with the Company that provides greater benefits than set forth in this Policy, such employee shall be entitled to receive the payments or benefits under such other agreement or arrangement and shall not be eligible to receive any payments or benefits under this Policy, provided that the definition of Cause set forth herein shall continue to apply to the eligibility to receive such other benefits. 

  If due to the termination of an employee’s relationship with the Company that would trigger any benefits under this Policy, the employee would also qualify for any statutory benefits under applicable employment legislation (including, but not limited to, statutory notice, statutory severance, or similar statutory indemnities related to termination, collectively “Statutory Benefits”) under applicable employment laws, the benefits described under this Policy shall be reduced by such Statutory Benefits.

   

  The payments under this Policy are intended either to be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) under the short-term deferral, separation pay, or other applicable exception, or to otherwise comply with Section 409A. This Policy shall be administered in a manner consistent with such intent. For purposes of Section 409A, all payments under this Policy shall be considered separate payments. To the extent that any payment or benefit described in this Policy constitutes “non-qualified deferred compensation” under Section 409A, and to the extent that such payment or benefit is payable upon an employee’s termination of employment, then such payments or benefits shall be payable only upon such employee’s “separation from service” (determined in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h)). Notwithstanding any provision to the contrary, to the extent an employee is considered a specified employee under Section 409A and would be entitled during the six-month period beginning on such employee’s separation from service to a payment that is not otherwise excluded under Section 409A, such payment will not be made until the earlier of (i) the date six months and one day after the employee’s separation from service or (ii) the employee’s death. This Policy may be amended as may be necessary to fully comply with Section 409A and all related rules and regulations in order to preserve the payments and benefits provided hereunder. The Company makes no representation or warranty and shall have no liability to any employee or any other person if any provisions of this Policy are determined to constitute deferred compensation subject to Section 409A but do not satisfy an exemption from, or the conditions of, such Section.

   

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  EXHIBIT A 

  PARTICIPATION LETTER

  [DATE]

  [PARTICIPANT NAME]
[ADDRESS]

 

  Dear [PARTICIPANT]:

  The Board of Directors of Global Blood Therapeutics, Inc. (the “Company”) has designated you as eligible for benefits not in connection with a Sale Event (the “Non-Sale Benefits”) as set forth in the Company’s Amended and Restated Severance and Change in Control Policy as may be amended from time to time (the “Policy”). As set forth in the Policy, there are certain eligibility requirements for such Non-Sale Benefits including, but not limited to, your execution of a participation letter as set forth herein.  

  You agree that to the extent any benefits to which you may be eligible under the Policy are contingent on the termination of your employment or other service relationship by the Company (or a successor or acquirer) without “cause,” such term shall mean Cause as defined in the Policy. For the avoidance of doubt, the Cause definition in the Policy supersedes any other definition of such term which may apply to you. 

  This letter and the Policy constitute the entire agreement between you and the Company with respect to the subject matter hereof and supersede in all respects any and all prior agreements (oral or written) between you and the Company concerning such subject matter. In the event of a conflict between the terms of this letter and the terms of the Policy, the terms of the Policy shall apply.

  Congratulations on being selected to be eligible for Non-Sale Benefits under the Policy. 

   

  GLOBAL BLOOD THERAPEUTICS, INC.

  By:	

  Name:

  Title:

  AGREED TO AND ACCEPTED

  __________________________________

  [Participant Name]

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