Document:

Exhibit 10.2

 

CONSULTING AGREEMENT

 

This Consulting Agreement (the “Agreement”), dated and effective, if at all, as of the Effective Date (as defined in the letter agreement between the Parties dated August 7, 2014), is entered into between Karyopharm Therapeutics Inc., having offices at 85 Wells Avenue, Newton, MA 02459 (the “Company”) and Paul Brannelly, having an address located in Boston, MA (the “Consultant”).  The Consultant and Company are referred to in this Agreement individually as a “Party” and collectively as the “Parties”.

 

WHEREAS, Company wishes to engage the Consultant to provide certain advisory and other consulting services to Company, and  the Consultant wishes to provide such services to Company, in each case subject to the terms and conditions of this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing, and of the mutual covenants set forth in this Agreement, the Parties agree as follows:

 

1.                                      Engagement and Performance of Services.  Company hereby engages the Consultant to perform the consulting services as described under the heading Services in Exhibit A (the “Services”) on or after the Effective Date.  The Consultant shall perform the Services at Company’s facilities, or at such other location as Company may designate, and at such times as mutually agreed upon by the Parties.  With the approval of Company, the Services may also be provided by telephone or video conference.  In performing the Services, the Consultant shall comply with all applicable laws and regulations, and shall perform Services in a manner that is consistent with relevant industry and professional standards.

 

2.                                      Compensation.

 

(a)                                 Payment.  In full consideration of the Services performed and rights granted by the Consultant under this Agreement, Company shall pay the Consultant the amounts specified in Exhibit A in accordance with the specified payment terms.  In addition, Company shall reimburse the Consultant for all reasonable and necessary expenses incurred or paid by the Consultant, at Company’s request and with Company’s prior approval, in connection with the Consultant’s performance of the Services, subject, however, to any applicable Company expense policy provided to the Consultant.  The Consultant shall not be entitled to any compensation or payment for the Services or with respect to Company’s use of the results of the Services or the grant of rights by the Consultant under this Agreement other than as specified in Exhibit A.

 

(b)                                 Invoices.  The Consultant shall submit monthly statements showing the amount of time spent devoted to Services.  Each statement shall provide reasonable detail as to the place, date, nature and hours of the Services performed in such calendar quarter, and shall fully describe travel and other expenses for which reimbursement is permitted and is sought.  Each statement will be accompanied by an invoice for any amounts due.  Invoices shall be in a format approved by, or, at Company’s option, supplied by Company, and will be accompanied by

 

 

appropriate supporting documentation for expenses.  Invoices for amounts properly due will be paid by Company within thirty (30) days of receipt.

 

3.                                      Relationship of Parties.  The Consultant shall perform the Services as an “independent contractor” and not as an employee or agent of Company.  The Consultant is not authorized to assume or create any obligation or responsibility, express or implied, on behalf of, or in the name of, Company or to bind Company in any manner.  The Consultant shall not be entitled to any benefits, coverage or privileges, including, without limitation, social security, unemployment, medical or pension payments, made available to employees of Company.  Company will not withhold any amounts from the fees paid to Consultant under Section 2 as federal or state income tax withholding or as would otherwise be required to be withheld if Consultant were an employee of Company.  The Consultant will be fully responsible for all taxes, contributions and insurance coverage applicable to the Consultant.

 

4.                                      Treatment of Confidential Information.

 

(a)                                 Definition.  For purposes of this Agreement, the term “Confidential Information” means any and all information of a confidential, secret, or proprietary nature and any Materials, as defined in Section 5(a) below, provided by or on behalf of Company or any of its affiliates to the Consultant or generated by the Consultant in connection with the performance of the Services, regardless of whether such information or Materials are in written, oral, electronic or in any other form and regardless of whether such information or Materials are specifically designated as confidential.  The Confidential Information may include, without limitation: trade secrets; know-how; inventions; technical data; specifications; protocols; procedures; information related to chemical compounds or biologics, including, but not limited to, information on structure and activity; testing methods; business or financial information; forecasts; information related to strategies; information related to products, product candidates and research and development programs; the results of research and development activities, including but not limited to clinical trial results; product and marketing plans; customer and supplier information; cost and pricing data; information related to business development plans and activities; and all information, reports, evaluations and copies generated or derived by the Consultant from any of the foregoing.  The Confidential Information may also include information obtained from Company’s collaborators, customers, suppliers, vendors and other third parties who have entrusted their confidential information to Company.  The results of the Services and all Inventions, as defined in Section 5(b) below, will be considered the Confidential Information of Company.

 

(b)                                 Obligations.  The Consultant shall maintain all of the Confidential Information in strict confidence.  The Consultant shall not disclose the Confidential Information to any other person or entity without the prior written consent of Company.  The Consultant shall not use the Confidential Information except for purposes of performing the Services and always for the benefit of Company.   Notwithstanding anything to the contrary in this Agreement, the Consultant shall

 

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be entitled to disclose the Confidential Information to the extent required by applicable law or court order provided that the Consultant furnishes Company with prompt written notice that the Confidential Information is required to be disclosed.  Such notice must be given sufficiently in advance of the required disclosure so as to provide Company with a reasonable opportunity to seek to prevent disclosure or to obtain a protective order for the Confidential Information.  The Parties shall consult with each other prior to the Consultant making any such required disclosure.

 

(c)                                  Exclusions.  The obligations of non-disclosure and restrictions on use under this Agreement shall not apply to information which the Consultant can clearly demonstrate, by written records, falls within any of the following categories:

 

(i)                                     information that was generally known to the public prior to disclosure or being generated under this Agreement or later becomes generally known to the public through no fault of the Consultant;

 

(ii)                                  information that was already known to the Consultant prior to disclosure or being generated under this Agreement, as the case may be;

 

(iii)                               information obtained by the Consultant from a third party other than on behalf of Company and provided such third party is lawfully in possession of and has the right to disclose the same without limitation upon further disclosure; and

 

(iv)                              information that was independently developed by the Consultant without reference to the Confidential Information and other than as part of the Services.

 

(d)                                 Property of Company.  All of the Confidential Information and all intellectual property rights in or arising from the Confidential Information, will at all times be and remain the property of Company.  The Consultant will not have the right to publish any of the results of the Services without the prior written consent of Company.

 

(e)                                  Return or Destruction of Confidential Information.  If requested by Company, at any time, the Consultant shall, subject to Section 5(f) below, return to Company or destroy, as directed by Company, all of the Confidential Information and all related material provided to or generated by the Consultant by or on behalf of Company.  The related material refers to all memoranda, notes, reports and documents containing copies, extracts, or reproductions in any format whatsoever of the Confidential Information.  The Consultant shall confirm in writing that all of the Confidential Information and related materials have been, according to Company’s instructions, either returned to Company or destroyed.

 

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5.                                      Proprietary Rights.

 

(a)                                 Materials.  All biological, chemical or other materials owned or controlled by Company and/or any of its affiliates and furnished to the Consultant (together with all subparts, components, progeny, modifications, analogs and derivatives of such materials to be referred to in this Agreement as, the “Materials”) and all associated intellectual property rights are and will remain the exclusive property of Company.  The Consultant shall use the Materials only as necessary to perform the Services and shall not transfer the Materials to any third party without the prior written consent of Company.  In using the Materials, the Consultant shall comply with the standard operating procedures and other written instructions provided by Company.  Upon the completion of the Services or the expiration or termination of this Agreement, the Consultant shall provide to Company a written statement accounting for all quantities of the Materials furnished to the Consultant, and, as directed by Company, shall return to Company or dispose of all unused portions of the Materials.

 

(b)                                 Ownership of Intellectual Property.  The Consultant will make full and prompt disclosure to Company of all discoveries, inventions, improvements, know-how, enhancements, processes, procedures, compositions, structures, sequences, methods, techniques, developments, software, and works of authorship (collectively referred to in this Agreement as “Inventions”) whether patentable or not, which the Consultant, alone or with others, develops in connection with performance of Services for Company under this Agreement or using Materials or Company Confidential Information.  The Consultant agrees to assign, and does hereby assign, transfer and convey, to the Company (or any person or entity designated by the Company) all of Consultant’s right, title and interest in and to all Inventions and all related intellectual property rights.  Information and materials comprising or contained in Inventions or regarding Inventions shall constitute Company’s Confidential Information.

 

(c)                                  Cooperation.  The Consultant agrees to cooperate fully with Company, both during and after the term of this Agreement, with respect to the procurement, maintenance and enforcement of copyrights, patents and other intellectual property rights (both in the United States and foreign countries) relating to Inventions.  The Consultant shall sign all papers, including, without limitation, copyright applications, patent applications, declarations, oaths, formal assignments, assignments of priority rights, and powers of attorney, which Company may deem necessary or desirable in order to protect or exploit its rights and interests in any Inventions and to effect the assignment set forth in Section 5(b).  The Consultant further agrees that if the Company is unable, after reasonable effort, to secure the signature of the Consultant on any such papers, any executive officer of the Company shall be entitled to execute any such papers as the agent and the attorney-in-fact of the Consultant, and the Consultant hereby irrevocably designates and appoints each executive officer of the Company as the Consultant’s agent and attorney-in-fact to execute any such papers on his/her behalf, and to take any and all actions as the Company may deem necessary or

 

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desirable in order to protect or exploit its rights and interests in any Invention and to effect the assignment set forth in Section 5(b), under the conditions described in this paragraph; provided, however, that before the Company exercises its authority as attorney-in-fact in any particular case, it shall first have given the Consultant ten (10) days’ written notice, that the Company intends to exercise its rights as attorney-in-fact under this sentence, and such notice shall be accompanied by a description of the relevant Invention.

 

(d)                                 Original Works of Authorship.  The Consultant acknowledges that all Inventions which are original works of authorship and which are protectable by copyright are works made for hire.  As to any Invention which is an original works of authorship as described in the preceding sentence made by the Consultant (solely or with others) that is protectable by copyright but which is not eligible to be works made for hire, the Consultant agrees to and does hereby assign to Company or its designee, in accordance with Section 5(b), all of the Consultant’s right, title and interest in such works, including but not limited to the Consultant’s copyright interest.

 

(e)                                  Use of Third Party Facilities or Property.  Except as Company may otherwise consent in writing, the Consultant agrees not to make any use of any funds, space, personnel, facilities, equipment, employees or other resources of a third party, in performing the Services, nor to take any other action that would result in a third party owning or having a right in the results of the Services or the Inventions.  Without limiting the foregoing, the Consultant agrees that it will not utilize in the performance of any Services or incorporate into any deliverables or materials provided to Company:  (i) any confidential information of the Consultant or any third party; or (ii) any technology, materials, know-how or inventions, covered by proprietary rights of the Consultant or any third party, except as Consultant is freely permitted to do without further compensation by Company to the Consultant or any third party.  In the event the Consultant incorporates any proprietary know-how, materials, inventions or technology of the Consultant into any Inventions or deliverables or other results of Services, the Consultant hereby grants to Company a perpetual, irrevocable, non-exclusive, worldwide, royalty-free, fully paid-up license (with a right to grant sublicenses) under Consultant’s intellectual property rights in such know-how, materials, inventions or technology solely to the extent necessary for Company to utilize the Inventions or deliverables or other results of Services for any purpose.

 

(f)                                   Record Retention and Storage.  In no event shall the Consultant dispose of any records or files generated by the Consultant in the course of providing Services (the “Records”) without first giving Company sixty (60) days’ prior written notice of the Consultant’s intent to do so and an opportunity to have the Records transferred to Company.  Notwithstanding anything in this Section 5(f) to the contrary, the Consultant may retain copies of the Records to the extent necessary for compliance with applicable law or regulatory requirements, subject to the Consultant’s continuing obligations of confidentiality and restrictions on use

 

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under this Agreement, and Company’s right to access such retained Records, and have copies made upon reasonable notice to the Consultant.

 

(g)                                  No License Grant by Company.  Nothing in this Agreement, nor the delivery of any Confidential Information or Materials to the Consultant in connection with the Consultant’s performance of Services under this Agreement shall be deemed to grant to the Consultant any right or license under any patents, patent applications, know-how, technology, inventions or other intellectual property of Company.  Notwithstanding anything in this Agreement to the contrary, the Company shall own all right, title and interest in all inventions, know-how, information and materials, and all related intellectual property rights, that arise from Company’s use of Inventions or from Company’s use of the other results of Services.

 

6.                                      Representation, Warranties and Covenants.

 

(a)                                 Other Engagements.  The Consultant agrees that, during the term of this Agreement and until August 7, 2015, the Consultant will not, without the prior written consent of the Company provide services to, collaborate with, or become a partner, officer, director, employee, consultant, agent, independent contractor or stockholder of, any company or business organization engaged in the research, development or commercialization of therapeutics targeting the nuclear pore complex machinery in oncology; provided, however, that the record or beneficial ownership by the Consultant of 1% or less of the outstanding publicly traded capital stock of any such company shall not be deemed to be in violation of this Section 6(a), provided that the Consultant has no other relationship with such company.

 

(b)                                 Non-solicitation. The Consultant agrees during the term of this Agreement and until August 7, 2015, the Consultant will not in any capacity, either separately, jointly or in association with others, directly or indirectly, solicit any of the employees, customers, suppliers, consultants or advisors of the Company to terminate or otherwise modify their relationship with the Company.

 

(c)                                  No Conflict.  The Consultant represents that, except as the Consultant has disclosed in writing to Company, the Consultant is not bound by the terms of any agreement with any employer or other party which are inconsistent with the provisions of this Agreement.  The Consultant further represents that the Consultant’s performance of the Services, and the grant of rights specified in this Agreement, do not and will not conflict with, or breach any, agreement with any prior or existing employer or other entity (including without limitation any nondisclosure or non-competition agreement), and that the Consultant will not disclose to Company or induce Company to use any confidential or proprietary information or material belonging to any employer or others unless Consultant has a license to use such information and materials and to allow Company to use such information and materials.

 

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(d)                                 No Debarment.  The Consultant has not been, and is not under consideration to be, excluded, suspended, debarred or otherwise declared ineligible to participate in federal healthcare programs, federal procurement or non-procurement programs, or from any other activities or programs related to the Services contemplated by this Agreement, including debarment under the provisions of the Generic Drug Enforcement Act of 1992, as amended from time to time.

 

(e)                                  No Use of Name.  Unless Company otherwise consents in writing, the Consultant shall not disclose to a third party the terms of this Agreement or the nature of the Services being provided to Company.  Neither Party may use the other Party’s name in any form of advertising or promotion, including press releases, without the prior written consent of the other Party, except Company may disclose that it has engaged the Services of the Consultant and may describe the nature of the Services.  The provisions of this Section 6(e) shall not restrict a Party’s ability to use the other Party’s name in filings with the Securities and Exchange Commission, the United States Food and Drug Administration, or other governmental agencies, when required by applicable law or regulation to do so.

 

(f)                                   Not Employment Contract.  The Consultant acknowledges that the Consultant is not an employee of the Company, that this Agreement does not constitute a contract of employment, and does not imply that the Company will continue this Agreement in effect for any period of time beyond its terms.

 

7.                                      Term; Termination.

 

(a)                                 Term.  The term of this Agreement shall commence on the effective date of this Agreement as specified in the first paragraph and shall continue in effect through and including November 1, 2014, unless earlier terminated by either Party as set forth in Section 7(b) below or extended by mutual agreement (the “Completion Date”).

 

(b)                                 Termination.  Either Party may terminate this Agreement upon fifteen (15) days’ prior written notice to the other Party if such other Party has breached this Agreement and fails to cure the breach during the notice period.  In the event of termination by either Party as permitted under this Agreement, Company shall direct the Consultant as to whether the Consultant shall stop performing the Services immediately or shall continue such performance for all or part of the applicable notice period.  In the event of any early termination of this Agreement under this Section, Company shall pay the Consultant at the agreed rate for the Services performed prior to the cessation of the Services by the Consultant.

 

(c)                                  Survival.  The termination or expiration of this Agreement shall not affect the rights or obligations which have accrued prior to the effective date of such termination or expiration.  Sections 4, 5, 6(a),6(b), 6(e), 7, 8 and 12 of this Agreement shall survive any termination or expiration of this Agreement.

 

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8.                                      Damages.  The Consultant acknowledges that the business of Company depends significantly upon the maintenance of trade secrets, technical innovations, and other confidential and proprietary information that is disclosed to and/or developed by Company.  Accordingly, the Consultant agrees that a breach of the provisions of this Agreement may be highly detrimental to the interests of Company and that adequate damages for breach might be impossible to ascertain.  The Consultant agrees that Company shall be entitled to seek injunctive relief (without the need to post a bond), in addition to any other remedies, to prevent any breach of this Agreement by the Consultant.

 

9.                                      Notice.  All notices required or permitted under this Agreement will be in writing and will be given by addressing the same to the address for the recipient set forth on the signature page of this Agreement or at such other address as the recipient may specify in writing under this procedure.  Notices will be deemed to have been given (i) three (3) business days after deposit in the U.S. mail with proper postage for first class registered or certified mail prepaid, return receipt requested; or (ii) one (1) business day after being sent by a nationally recognized courier service for next day delivery. Notices to Company must be marked “Attention:  Chief Executive Officer”.

 

10.                               Assignment; No Subcontracting.  This Agreement shall be binding upon and enure to the benefit of the Parties and their respective successors and permitted assigns. The Consultant may not assign, subcontract or delegate any of the Consultant’s rights or obligations under this Agreement without the prior written consent of Company. Company may assign this Agreement to any of its affiliates or to any successor by law or by merger, acquisition or sale of assets, provided that any such assignee shall assume all obligations of Company under this Agreement.

 

11.                               Severability.  Each and every provision set forth in this Agreement is independent and severable from the others, and no provision will be rendered unenforceable by virtue of the fact that, for any reason, any other provision may be invalid or unenforceable in whole or in part.  If any provision of this Agreement is invalid or unenforceable for any reason whatsoever, that provision will be appropriately limited and reformed to the maximum extent provided by applicable law.  If the scope of any restriction contained herein is too broad to permit enforcement to its full extent, then such restriction will be enforced to the maximum extent permitted by law so as to be judged reasonable and enforceable.  If, as a result of the unenforceability of a provision or any limitation on enforceability, the intent of the parties in entering into this Agreement is materially affected, the parties will negotiate in good faith to amend this Agreement to as close as possible implement the original intent of the parties.

 

12.                               Governing Law.  This Agreement shall be construed in accordance with and governed by the laws of the Commonwealth of Massachusetts, without reference to the state’s conflict-of-laws principles.

 

13.                               Entire Agreement.  This Agreement constitutes the entire agreement between the Parties pertaining to its subject matter.

 

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14.                               Waivers.  No delay or omission by a Party in exercising any right under this Agreement will operate as a waiver of that or any other right.  A waiver or consent given by a Party will be effective only if contained in a written document signed by such Party.  A waiver or consent given by a Party on any one occasion is effective only in that instance and will not be construed as a bar to or waiver of any right on any other occasion.

 

15.                               Amendments.  No amendment of this Agreement shall be binding unless executed in writing by both Parties.

 

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IN WITNESS WHEREOF, Company and the Consultant have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.

 

 

	
KARYOPHARM   THERAPEUTICS INC.
    	
CONSULTANT:
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Michael G. Kauffman
    	
 
    	
By:
    	
/s/ Paul Brannelly
    
	
 
    	
Name: Michael G. Kauffman
    	
 
    	
Name: Paul Brannelly
    
	
 
    	
Title: CEO
    	
 
    	
 
    
					

 

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Exhibit A

 

I.                            DESCRIPTION OF SERVICES

 

Consultant shall provide assistance to Karyopharm, as from time to time requested by Karyopharm, in the following areas:

 

Any area reasonably request by an executive officer of the Company, including financial accounting systems, stock plan management, human resources, accounting, leased property management, budgeting, payroll, taxes, banking and other matters.

 

During the first month of the term of this Agreement, Consultant shall devote at least fifteen (15) hours per week to Services.

 

II.                       FEES AND PAYMENT SCHEDULE

 

Karyopharm shall pay Consultant for Services rendered at Karyopharm’s request at the rate of $350 per hour, provided that in no event shall the total amount payable to Consultant under this Agreement exceed $75,000, unless Karyopharm specifically authorizes a change in the cap in writing.

 

11Exhibit 10.3

 

 

BY HAND DELIVERY

 

August 7, 2014

 

Mr. Paul Brannelly

c/o Karyopharm Therapeutics Inc.

85 Wells Avenue, Suite 210

Newton, MA 02459

 

Dear Paul:

 

The purpose of this letter agreement is to confirm the terms regarding your separation of employment from Karyopharm Therapeutics Inc. (the “Company”).  The Company will provide you with the severance benefits described in paragraph 2 below if you sign and return this letter agreement (the “Agreement”) to me on or before August 28, 2014 and it becomes binding between you and the Company and you sign and return the additional release of claims attached hereto as Exhibit B (the “Additional Release”) to me at the end of the Consulting Period (as defined herein).  By timely signing and returning this Agreement and the Additional Release and not revoking them, you will be entering into binding agreements with the Company and will be agreeing to the terms and conditions set forth therein.  Therefore, you are advised to consult with an attorney before signing this Agreement and you have been given at least twenty-one (21) days to do so.  If you sign this Agreement, you may change your mind and revoke your agreement during the seven (7) day period after you have signed it by notifying me in writing.  If you do not so revoke, this Agreement will become a binding agreement between you and the Company upon the expiration of the seven (7) day period (the “Effective Date”).

 

If you choose not to sign and return this Agreement and Exhibit B in a timely manner as set forth above, or if you timely revoke your acceptance in writing, you shall not receive any severance benefits from the Company.  You will, however, receive payment on your Separation Date for your final wages and any unused vacation time accrued through the Separation Date.  You may also, if eligible, elect to continue receiving group health insurance pursuant to the federal “COBRA” law, 29 U.S.C. § 1161 et seq.  Please consult the COBRA materials to be provided by the Company under separate cover for details regarding these benefits.

 

Pursuant to the Company’s Amended and Restated 2010 Stock Incentive Plan and 2013 Stock Incentive Plan, you have up to three months after the Separation Date to exercise any vested stock rights you may have (as provided for by the plans) and, except as set forth herein, all unvested stock rights will be irrevocably cancelled on the Separation Date.  Notwithstanding the foregoing, if (i) you sign this Agreement and do not revoke it and (ii) you sign the Consulting Agreement (as defined herein), you will continue to vest in any stock rights you may have through the Completion Date (as defined herein) and you will have up to three months after the Completion Date to exercise any vested stock rights and all unvested stock rights will be irrevocably cancelled on the Completion Date.

 

 

The following numbered paragraphs set forth the terms and conditions that will apply if you timely sign and return this Agreement and do not revoke it in writing within the seven (7) day period.

 

1.                                      Separation Date — Your effective date of separation from the Company as an employee is August 7, 2014 (the “Separation Date”).  As of the Separation Date, all salary payments from the Company will cease and any benefits you had as of the Separation Date under Company-provided benefit plans, programs, or practices will terminate, except as required by federal or state law.

 

2.                                      Description of Severance Benefits — If you timely sign and return this Agreement and do not revoke your acceptance, the Company will engage you as a consultant pursuant to the terms of the Consulting Agreement attached hereto as Exhibit A (the “Consulting Agreement”), which Consulting Agreement shall be executed on the date you sign this Agreement, shall become effective on the Effective Date, and shall continue in full force and effect until the earlier of (i) November 1, 2014 or (ii) the termination of such Consulting Agreement in accordance with Section 7 thereof ((i) or (ii), as applicable, being the “Completion Date”).  Provided that (i) you timely sign and return this Agreement and do not revoke your acceptance, (ii) the Consulting Agreement becomes effective and (iii) with respect to subparagraphs (b), (c) and (e) of this paragraph 2, you sign and return the Additional Release on or after the Completion Date, you will be entitled to the following severance benefits (the “Severance Benefits”):

 

(a)                                 Consulting Arrangement.  In accordance with the terms of the Consulting Agreement, you will provide consulting services under the direction of the Chief Executive Officer beginning on the Effective Date and continuing through the Completion Date (the “Consulting Period”), and the Company shall pay you the hourly rate set forth in the Consulting Agreement, and reimburse reasonable out-of-pocket expenses, in connection with such services.

 

(b)                                 Severance Pay.  The Company will pay you severance pay in the form of continuation of your base salary, less all applicable state and federal taxes, for six months (the “Severance Pay Period”).  This severance pay will be paid in accordance with the Company’s normal payroll procedures, and will commence on the first payroll period following the expiration of the seven day revocation period, provided that you do not revoke this Agreement.

 

(c)                                  Restricted Stock Vesting.  On July 25, 2013, the Company granted you a non-qualified stock option to purchase 63,636 shares (the “Option Shares”) of the Company’s Common Stock (the “Option”) as set forth in the Non-Qualified Stock Option Agreement between you and the Company dated July 25, 2013 (the “Option Agreement”).  You exercised the Option on July 31, 2013 and purchased all of the Option Shares, subject to the understanding between you and the Company that the Option Shares would remain subject to the vesting schedule set forth in the Option Agreement.  Subject to the terms of this Agreement and upon satisfactory completion of your obligations under the

 

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Consulting Agreement, the Company agrees not to assert any claim that the unvested Option Shares remain subject to vesting restrictions as of the Completion Date.

 

(d)                                 Benefit Continuation.  Should you elect to continue receiving group medical insurance pursuant to the federal “COBRA” law, 29 U.S.C. § 1161 et seq., during the Severance Pay Period, the Company shall continue to pay the share of the premium for such coverage that is paid by the Company for active and similarly-situated employees who receive the same type of coverage.  The remaining balance of any premium costs, and all applicable premium costs after the end of the Severance Pay Period, shall be paid by you on a monthly basis for as long as, and to the extent that, you remain eligible for COBRA continuation.  You should consult the COBRA materials to be provided by the Company for details regarding these benefits.

 

(e)                                  Continued Vesting of Options.  On September 3, 2013, the Company granted you a non-qualified stock option to purchase 56,060 shares of the Company’s Common Stock (the “September Option”) as set forth in the Non-Qualified Stock Option Agreement between you and the Company dated September 3, 2013 (the “September Option Agreement”).  The Company hereby acknowledges, in accordance with Section 4(b) of the September Option Agreement that there is no termination of the Business Relationship (as defined in the September Option Agreement) while you are serving as a consultant pursuant to the terms of the Consulting Agreement, such that the September Option shall continue to vest until the Completion Date.

 

(f)                                   Additional Cash Payment.  The Compensation Committee of the Company’s Board of Directors will, in its sole discretion, determine whether or not to make an additional cash payment to you (the “Additional Cash Payment”), in an amount not to exceed $71,250 based upon your satisfactory completion of the requirements of the Consulting Agreement.  If the Compensation Committee authorizes the Company to make the Additional Cash Payment, such payment shall be made on the earlier of (i) March 15, 2015 and (ii) five (5) business days following the date on which the Company’s executive officers receive annual bonus payments for the 2014 fiscal year.

 

3.                                      You will not be eligible for, nor shall you have a right to receive, any payments or benefits from the Company following the Separation Date other than as described in this paragraph 2 and pursuant to the Consulting Agreement.

 

4.                                      Representation on Action — You represent that you have not filed or reported any complaints, claims or actions against any of the Released Parties with any state, federal or local agency or court.

 

5.                                      Release — In consideration of the Severance Benefits, which you acknowledge you would not otherwise be entitled to receive, you hereby fully, forever, irrevocably and unconditionally release, remise and discharge the Company, its affiliates, subsidiaries, parent

 

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companies, predecessors, and successors, and all of their respective past and present officers, directors, stockholders, partners, members, employees, agents, representatives, plan administrators, attorneys, insurers and fiduciaries (each in their individual and corporate capacities) (collectively, the “Released Parties”) from any and all claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature that you ever had or now have against any or all of the Released Parties, including, but not limited to, any and all claims arising out of or relating to your employment with and/or separation from the Company, including, but not limited to, all claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Genetic Information Nondiscrimination Act of 2008, 42 U.S.C. § 2000ff et seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., Executive Order 11246, Executive Order 11141, the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., all as amended; all claims arising out of the Massachusetts Fair Employment Practices Act., M.G.L. c. 151B, § 1 et seq., the Massachusetts Civil Rights Act, M.G.L. c. 12, §§ 11H and 11I, the Massachusetts Equal Rights Act, M.G.L. c. 93, § 102 et seq. and M.G.L. c. 214, § 1C, the Massachusetts Age Discrimination Law, M.G.L. c. 149, § 24A et seq., the Massachusetts Small Necessities Leave Act, M.G.L. c. 149, § 52D, the Massachusetts Equal Pay Law, M.G.L. c. 149, § 105A et seq., the Massachusetts Maternity Leave Act, M.G.L. c. 149, § 105D, and the Massachusetts Privacy Act, M.G.L. c. 214, § 1B, all as amended; all common law claims including, but not limited to, actions in defamation, intentional infliction of emotional distress, misrepresentation, fraud, wrongful discharge, and breach of contract; all claims to any non-vested ownership interest in the Company, contractual or otherwise, and any claim or damage arising out of your employment with and/or separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above; provided, however, that nothing in this Agreement prevents you from filing a charge with, cooperating with, or participating in any proceeding before the Equal Employment Opportunity Commission or a state fair employment practices agency (except that you acknowledge that you may not recover any monetary benefits in connection with any such claim, charge or proceeding and you further waive any rights or claims to any payment, benefit, attorneys’ fees or other remedial relief in connection with any such claim, charge or proceeding).

 

6.                                      Post-Separation Obligations — You acknowledge and reaffirm your obligation to keep confidential and not to disclose any and all non-public information concerning the Company that you acquired during the course of your employment with the Company, including, but not limited to, any non-public information concerning the Company’s business affairs, business prospects, and financial condition.  You further acknowledge and reaffirm your obligations under the Non-Disclosure and Inventions Assignment Agreement you previously executed for the benefit of the Company, which remains in full force and effect.  Notwithstanding the foregoing, you and the Company agree that your non-competition obligations to the Company shall be limited such that through August 7, 2015, you will not, without the prior written consent of the Company, provide services to, collaborate with, or

 

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become a partner, officer, director, employee, consultant, agent, independent contractor or stockholder of, any company or business organization engaged in the research, development or commercialization of therapeutics targeting the nuclear pore complex machinery in oncology; provided, however, that the record or beneficial ownership by you of 1% or less of the outstanding publicly traded capital stock of any such company shall not be deemed to be in violation of this non-competition agreement, provided that you have no other relationship with such company.

 

7.                                      Non-Disparagement — You understand and agree that, in consideration of the Severance Benefits, you shall not make any false, disparaging or derogatory statements to any person or entity, including, without limitation, any media outlet, industry group, financial institution or current or former employee, consultant, client or customer of the Company, regarding the Company or any of its directors, officers, employees, agents or representatives or about the Company’s business affairs or financial condition; provided, however, that nothing herein shall be construed as preventing you from making truthful disclosures to any governmental entity or in any litigation or arbitration.

 

8.                                      Cooperation — To the extent permitted by law, you agree to cooperate fully with the Company in the defense or prosecution of any claims or actions which already have been brought, are currently pending, or which may be brought in the future against or on behalf of the Company, whether before a state or federal court, any state or federal government agency, or a mediator or arbitrator.  Your full cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare its claims or defenses, to prepare for trial or discovery or an administrative hearing or a mediation or arbitration and to act as a witness when requested by the Company at reasonable times designated by the Company.  You agree that you will notify the Company promptly in the event that you are served with a subpoena or in the event that you are asked to provide a third party with information concerning any actual or potential complaint or claim against the Company.

 

9.                                      Return of Company Property — You represent and confirm that you have returned to the Company all Company-owned property in your possession, custody or control, including, without limitation, all keys, files, documents and records (and copies thereof), equipment (including, but not limited to, computer hardware, software and printers, wireless handheld devices, cellular phones, pagers, etc.), Company identification and Company vehicles, and that you have left intact all electronic Company documents, including, without limitation, those that you developed or helped to develop during your employment.  You further confirm that you have cancelled all accounts for your benefit, if any, in the Company’s name, including, without limitation, credit cards, telephone charge cards, cellular phone and/or pager accounts, and computer accounts.

 

10.                               Business Expenses and Final Compensation — You acknowledge that you have been reimbursed by the Company for all business expenses incurred in conjunction with the performance of your employment and that no other reimbursements are owed to you.  You further acknowledge that you have received payment in full for all services rendered in conjunction with your employment by the Company, including, without limitation, payment for all wages, bonuses, equity, commissions and accrued, unused vacation time, and that no other compensation is owed to you except as provided herein.

 

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11.                               Amendment and Waiver — This Agreement and the Additional Release shall be binding upon the parties and may not be modified in any manner, except by an instrument in writing of concurrent or subsequent date signed by duly authorized representatives of the parties hereto.  This Agreement and the Additional Release are binding upon and shall inure to the benefit of the parties and their respective agents, assigns, heirs, executors, successors and administrators.  No delay or omission by the Company in exercising any right under this Agreement and the Additional Release shall operate as a waiver of that or any other right.  A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar to or waiver of any right on any other occasion.

 

12.                               Validity — Should any provision of this Agreement be declared or be determined by any court of competent jurisdiction to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a part of this Agreement.

 

13.                               Confidentiality — To the extent permitted by law, you understand and agree that as a condition of the Severance Benefits herein described, the terms and contents of this Agreement, and the contents of the negotiations and discussions resulting in this Agreement or the Additional Release, shall be maintained as confidential by you and your agents and representatives and shall not be disclosed except to the extent required by federal or state law or as otherwise agreed to in writing by the Company.

 

14.                               Tax Provision — In connection with the Severance Benefits to be provided to you pursuant to this Agreement and the Additional Release, the Company shall withhold and remit to the tax authorities the amounts required under applicable law, and you shall be responsible for all applicable taxes with respect to such Severance Benefits under applicable law.  You acknowledge that you are not relying upon advice or representation of the Company with respect to the tax treatment of any of the Severance Benefits.

 

15.                               Nature of Agreement — You understand and agree that this Agreement is a severance agreement and does not constitute an admission of liability or wrongdoing on the part of the Company.

 

16.                               Acknowledgments — You acknowledge that you have been given at least twenty-one (21) days to consider this Agreement, and that the Company advised you to consult with an attorney of your own choosing prior to signing this Agreement and the Additional Release.  You understand that you may revoke this Agreement and the Additional Release for a period of seven (7) days after you sign it by notifying me in writing, and the Agreement and the Additional Release shall not be effective or enforceable until the expiration of this seven (7) day revocation period.  You understand and agree that by entering into this Agreement and the Additional Release, you are waiving any and all rights or claims you might have under the Age Discrimination in Employment Act, as amended by the Older Workers Benefits Protection Act, and that you have received consideration beyond that to which you were previously entitled.

 

17.                               Voluntary Assent — You affirm that no other promises or agreements of any kind have been made to or with you by any person or entity whatsoever to cause you to sign this Agreement and the Additional Release, and that you fully understand the meaning and intent of

 

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this Agreement and the Additional Release.  You state and represent that you have had an opportunity to fully discuss and review the terms of this Agreement and the Additional Release with an attorney.  You further state and represent that you have carefully read this Agreement and the Additional Release, understand the contents herein, freely and voluntarily assent to all of the terms and conditions hereof, and sign your name of your own free act.

 

18.                               Applicable Law — This Agreement and the Additional Release shall be interpreted and construed by the laws of the Commonwealth of Massachusetts, without regard to conflict of laws provisions.  You hereby irrevocably submit to and acknowledge and recognize the jurisdiction of the courts of the Commonwealth of Massachusetts, or if appropriate, a federal court located in the Commonwealth of Massachusetts (which courts, for purposes of this Agreement and the Additional Release, are the only courts of competent jurisdiction), over any suit, action or other proceeding arising out of, under or in connection with this Agreement and the Additional Release or the subject matter hereof.

 

19.                               Entire Agreement — This Agreement and the Additional Release contain and constitute the entire understanding and agreement between the parties hereto with respect to your Severance Benefits, the Consulting Agreement and the consulting relationship and the settlement of claims against the Company and cancels all previous oral and written negotiations, agreements, and commitments in connection therewith.  Nothing in this paragraph, however, shall modify, cancel or supersede your obligations set forth in paragraph 5 above.

 

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If you have any questions about the matters covered in this Agreement and the Additional Release, please call Chris Primiano, General Counsel of the Company at (617) 658-0600.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael G. Kauffman
    
	
 
    	
 
    	
Michael   G. Kauffman
    
	
 
    	
 
    	
Chief   Executive Officer
    

 

I hereby agree to the terms and conditions set forth above.  I have been given at least twenty-one (21) days to consider this Agreement and I have chosen to timely execute it.  I intend that this Agreement will become a binding agreement.

 

 

	
/s/   Paul Brannelly 
    	
 
    	
August 7,   2014 
    
	
Paul   Brannelly
    	
 
    	
Date
    

 

To be returned in a timely manner as set forth on the first page of this Agreement.

 

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Exhibit A

 

 

EXHIBIT B

 

ADDITIONAL RELEASE OF CLAIMS

 

Defined terms used herein but not otherwise defined herein shall have the meaning given to them in the letter agreement to which this Exhibit B is attached.

 

1.                                      Release - In consideration of the benefits set forth in the Agreement to which this Additional Release of Claims (the “Additional Release”) is attached, which you acknowledge you would not otherwise be entitled to receive, you hereby fully, forever, irrevocably and unconditionally release, remise and discharge the Company, its affiliates, subsidiaries, parent companies, predecessors, and successors, and all of their respective past and present officers, directors, stockholders, partners, members, employees, agents, representatives, plan administrators, attorneys, insurers and fiduciaries (each in their individual and corporate capacities) (collectively, the “Released Parties”) from any and all claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature that you ever had or now have against any or all of the Released Parties, including, but not limited to, any and all claims arising out of or relating to your relationship during the Consulting Period as defined in the Agreement and cessation of that relationship including but not limited to all common law claims including, but not limited to, actions in defamation, intentional infliction of emotional distress, misrepresentation, fraud, wrongful discharge, and breach of contract;  the Massachusetts Wage Act, Mass. Gen. Laws ch. 149, § 148 et seq. (Massachusetts law regarding payment of wages and overtime) including but not limited to all claims under any applicable federal, state or local statute or ordinance.

 

2.                                      Business Expenses and Compensation - You acknowledge that you have been reimbursed by the Company for all business expenses incurred in conjunction with the performance of your consulting and that no other reimbursements are owed to you.  You further acknowledge that you have received payment in full for all services rendered in conjunction with your consulting by the Company and that no other compensation is owed to you except as provided in the letter agreement.

 

3.                                      Return of Company Property - You confirm that you have returned to the Company all keys, files, records (and copies thereof), equipment (including, but not limited to, computer hardware, software and printers, wireless handheld devices, cellular phones, smartphones, tablets, flash drives and storage devices, etc.), Company identification, Company vehicles and any other Company-owned property in your possession or control and have left intact all electronic Company documents, including but not limited to those that you developed or helped to develop during your service as a consultant.  You further confirm that you have cancelled all accounts for your benefit, if any, in the Company’s name, including but not limited to, credit cards, telephone charge cards, cellular phone and/or computer accounts.

 

4.                                      Acknowledgments — You acknowledge that you have been given 21 days to consider this Additional Release, and that the Company advised you to consult with an attorney of your own choosing prior to signing this Additional Release.

 

5.                                      Voluntary Assent - You affirm that no other promises or agreements of any kind have been made to or with you by any person or entity whatsoever to cause you to sign this Additional

 

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Release, and that you fully understand the meaning and intent of this Additional Release.  You state and represent that you have had an opportunity to fully discuss and review the terms of this Additional Release with an attorney.  You further state and represent that you have carefully read this Additional Release, understand the contents herein, freely and voluntarily assent to all of the terms and conditions hereof, and sign your name of your own free act.

 

I hereby provide this Additional Release as of the current date and acknowledge that the execution of this Additional Release is in further consideration of the Severance Benefits, including the Additional Cash Payment, to which I acknowledge I would not be entitled if I did not sign this Additional Release.

 

 

	
 
    	
 
    	
 
    
	
Paul Brannelly
    	
Date
    
	
 
    	
 
    
	
 
    	
 
    
	
To be signed on or   after the Completion Date.
    	
 
    

 

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