Document:

srpt-ex101_224.htm

 

Exhibit 10.1

CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT (this “Agreement”), dated as of August 17, 2017 (the “Effective Date”), is entered into by and between by and between Sarepta Therapeutics, Inc., a Delaware corporation (the “Company”), and Edward M. Kaye, M.D. (the “Consultant”).

WITNESSETH

WHEREAS, as of the Effective Date, the Consultant is no longer an employee or a member of the Board of Directors of the Company, however, the Consultant has invaluable knowledge and expertise regarding the Company and its activities (the “Business”); and

WHEREAS, due to the Consultant’s knowledge and expertise, the Company wishes to have the cooperation of, and access to, the Consultant; and

WHEREAS, the Company and the Consultant have mutually agreed that the Consultant shall serve as an advisor to the Company on the terms and subject to the conditions hereinafter specified.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Consultant hereby agree as follows: 

1.Term of Consulting Period.  The Consultant shall render consulting services, on the terms and conditions set forth in this Agreement, for the period beginning on the Effective Date and ending upon the first to occur of (a) the Consultant’s death or permanent disability and (b) the date that is one year after the Effective Date (the “Initial Consulting Period”).  At the conclusion of the Initial Consulting Period, the term of this Agreement may be extended for up to an additional one year (the “Renewal Consulting Period”), at the option of the Company, by the Company giving written notice to the Consultant.  The period of time between the Effective Date and the termination of the Consultant’s service to the Company hereunder shall be referred to herein as the “Consulting Period.”

2.Consulting Services.  During the Consulting Period, the Consultant shall (a) answer questions with respect to matters that were previously within the scope of the Consultant’s responsibilities as President and Chief Executive Officer of the Company, (b) cooperate with the Company with respect to any internal investigation or administrative, regulatory or judicial proceeding involving matters within the scope of the Consultant’s duties and responsibilities to the Company or its affiliates during his term as a President and Chief Executive Officer of the Company (including, without limitation, the Consultant being available to the Company upon reasonable notice for interviews and factual investigations, appearing at the Company’s reasonable request to give testimony without requiring service of a subpoena or other legal process, and turning over to the Company all relevant Company documents which are or may have come into the Consultant’s possession during his term as President and Chief Executive Officer of the Company) and (c) provide general consulting services to the Company in respect of the Business.  Such consulting services shall be performed at such place or places as shall be mutually agreed upon by the Consultant and the Company.  

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3.Level of Services During the Consulting Period.  During the Consulting Period, the Consultant shall provide services as a senior level consultant to the Company on an as‐needed basis with regard to matters of the Company and the Business, as mutually agreed to by Consultant and the Company.  Notwithstanding anything to the contrary herein, the parties hereby agree that (i) it is anticipated that the level of services provided by the Consultant to the Company during the Consulting Period shall be less than twenty percent (20%) of the average level of services provided by the Consultant to the Company over the thirty‐six (36) month period preceding the Effective Date but in no event more than ten (10) hours a week during the Consulting Period, and (ii) it is intended that the Consultant’s change in status from President and Chief Executive Officer of the Company to consultant hereunder shall be a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (collectively “Code Section 409A”).

4.Consideration.  In consideration for agreeing to provide the consulting services set forth in Section 2, during the Consulting Period the Consultant shall be paid a consulting fee of $500.00 per hour during the Consulting Period (the “Consulting Fee”), payable in arrears, with the first payment beginning thirty (30) days after the Effective Date.  

5.Expenses.  The Company shall reimburse the Consultant pursuant to the Company’s reimbursement policies for any reasonable business expenses incurred by the Consultant in connection with the performance of the consulting services requested by Company and described in Section 3.

6.Sole Consideration.  Except as specifically provided herein, the Consultant shall be entitled to no compensation or benefits with respect to the consulting services from the Company and will be credited with no service or age credit for purposes of eligibility, vesting or benefit accrual under any employee benefit plan of the Company.  Notwithstanding the foregoing, the Consultant shall be entitled to continued vesting of any outstanding equity awards during the Consulting Period that did not vest and were not vested on the date of the Consultant’s termination of employment (excluding any Performance Awards), solely to the extent permitted by and in accordance with the Consultant’s Employment Agreement dated September 20, 2016, and the terms of the applicable equity award agreement.  In addition, Consultant may exercise any options in accordance with the terms of the plan and/or award agreement applicable to said options.  Consultant expressly acknowledges and agrees that his obligations under the Employment Agreement, including under Sections 10 and 11 of the Employment Agreement and under the Confidential Proprietary Rights and Non-Disclosure Agreement between Executive and the Company, dated as of June 14, 2013, continue and remain in full force and effect, notwithstanding anything in this Agreement.

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7.Status as an Independent Contractor.  The Company and the Consultant acknowledge and agree that the Company shall not exercise general supervision or control over the time, place or manner in which the Consultant provides consulting services hereunder, and that in performing consulting services pursuant to this Agreement the Consultant shall be acting and shall act at all times as an independent contractor only and not as an employee, agent, partner or joint venturer of or with the Company or any entity for which the Company provides services.  The Consultant acknowledges that he is solely responsible for the payment of all Federal, state, local and foreign taxes that are required by applicable laws or regulations to be paid with respect to the Consulting Fees payable hereunder.

8.Termination of Consulting Arrangement.  The parties hereto expect that this consulting arrangement will continue for the full term of the Consulting Period, but the Company may terminate the Consulting Period prior to the end of the scheduled Consulting Period upon written notice provided to the Consultant, without further obligation hereunder other than the payment of any earned but unpaid amounts due hereunder.  Upon termination or expiration of the Consulting Period, Consultant shall sign a supplemental release in a form substantially similar to that included in the employment agreement dated September 20, 2016.

9.Miscellaneous.  

(a)Successors and Assigns.  This Agreement will be binding upon, inure to the benefit of and be enforceable by, as applicable, the Company and the Consultant and their respective personal or legal representatives, executors, administrators, successors, assigns, heirs, distributees and legatees.  This Agreement is personal in nature and the Consultant shall not, without the written consent of the Company, assign, transfer or delegate this Agreement or any rights or obligations hereunder.  

(b)Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts without giving effect to such state’s laws and principles regarding the conflict of laws.

(c)Amendment.  No provision of this Agreement may be amended, modified, waived or discharged unless such amendment, waiver, modification or discharge is agreed to in writing and such writing is signed by the Consultant and the Company.

(d)Notice.  All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

if to the Consultant:

At the address most recently on the books and records of the Company.

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if to the Company:

Sarepta Therapeutics, Inc.
215 First St.
Cambridge, MA 02142
Attention: Ty Howton, General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective when actually received by the addressee.

(e)Headings. The headings of this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

(f)Counterparts.This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument.

(g)Taxes.  Notwithstanding the foregoing, all payments and other consideration made or provided to Consultant as an independent contractor consultant to the Company under this Agreement shall be made or provided without withholding or deduction of any kind, and Consultant shall assume sole responsibility for discharging all tax or other obligations associated therewith.

(h) Code Section 409A.  This Agreement is intended to comply with or be exempt from the applicable requirements of Code Section 409A to the extent applicable, and this agreement shall be interpreted to comply with or be exempt from Code Section 409A.  In no event whatsoever shall the Company or its affiliates be liable for any additional tax, interest or penalties that may be imposed on Consultant by Code Section 409A or for any damages for failing to comply with Code Section 409A.  With regard to the  reimbursement of any costs and expenses or the provision of any in-kind benefits that are to be paid or provided to the Consultant hereunder and that are subject to the requirements of  Code Section 409A (after taking into account all applicable exclusions and exemptions), (i) the Consultant’s right to receive such reimbursements or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits to be provided, during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, and (iii) any such reimbursement of expenses shall be made on or before the last day of the calendar year following the calendar year in which such  expenses were incurred. 

10. Restrictive Covenants.  Consultant expressly acknowledges and agrees that during the Consulting Period his obligations under the Confidential Proprietary Rights and Non-Disclosure Agreement between Consultant and the Company, dated as of June 14, 2013, continue and remain in full force and effect pursuant to Section 1.8 thereof.

 

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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the date first above written.

 

	
 
	
SAREPTA THERAPEUTICS, INC.

	
 
	
 
	
 

	
 
	
By:
	
/s/ Douglas S. Ingram

	
 
	
 
	
 

	
 
	
Name: Douglas S. Ingram

	
 
	
 
	
 

	
 
	
Title: President and Chief Executive Officer

	
 
	
 
	
 

	
 
	
CONSULTANT

	
 
	
 
	
 

	
 
	
By:
	
/s/ Edward M. Kaye, M.D.

	
 
	
 
	
 

	
 
	
Name: Edward M. Kaye, M.D.

 

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Exhibit 10.2

 

August 28, 2017

 

Dear Guriqbal,

 

On behalf of Sarepta Therapeutics, Inc. (“Sarepta” or the “Company”), it is a great pleasure to extend you this offer of employment as Sr. Vice President, Chief Scientific Officer in Cambridge, MA effective on a date agreed upon following your acceptance of this offer (“Start Date”), reporting to Doug Ingram, President & Chief Executive Officer. 

 

Base Salary. 

In this position, you will earn an annual base salary of $390,000.00, subject to applicable taxes and withholdings, which will be paid on a bi-weekly basis. 

 

Future Salary Increases. 

If you join Sarepta between January 1 and September 30, you will be eligible for a pro-rated merit increase for the next calendar year’s Annual Compensation Review process. The Annual Compensation Review process generally takes place in the first quarter of the calendar year. Salary merit increases, if any, will be awarded at the Company’s discretion on the basis of your performance, and will be pro-rated.    

 

Annual Bonus Program.

During your employment, you will also be eligible to participate in Sarepta’s annual bonus program. The target bonus opportunity for your position is 40% of your annual base salary, with the actual amount of such bonus, if any, being determined by the Company in its sole discretion, based on your performance and that of the Company against goals established by the Board.  You must commence your employment by September 30 in order to be eligible for a bonus for the calendar year during which you were hired. If you join the Company between January 1 and September 30, you will be eligible for a pro-rated bonus for that calendar year. You must be employed through the date bonuses are disbursed to employees generally in order to be eligible for the bonus. Additional details regarding Sarepta’s bonus program will be provided to you upon commencing employment. 

 

New Hire Option Grant. 

The Compensation Committee of our Board of Directors has approved an executive inducement grant of options to purchase 100,000 shares of the Company’s common stock (the “Option”) subject to you becoming an employee of the Company.  The Option grant will be subject to the terms, definitions and provisions of the Executive Inducement Stock Option Agreement by and between you and the Company (the “Option Agreement”) which Option Agreement is incorporated herein by reference.  Twenty-five percent (25%) of the shares underlying the Option will vest on the one (1) year anniversary of the Start Date, and 1/48th of the shares underlying the Option will vest on each monthly anniversary of the Start Date thereafter, such that the shares underlying the Option will be fully exercisable on the fourth annual anniversary of the Start Date, subject to your continued employment through any such anniversary dates.  Shares shall only vest on such dates; no rights to any vesting shall be earned or accrued prior to such dates.

 

Annual Equity Grant Program

You may also be eligible to be considered for the Company’s annual equity grant program based on your performance. If you join the Company between January 1 and September 30 of the current calendar year, you will be eligible for a prorated annual equity grant in the calendar year that follows, with the actual amount of such equity grant, if any, being determined by the Company in its sole discretion. If you join the Company after September 30 of the current calendar year, your eligibility to participate will be postponed by one more calendar year.

 

Benefits. 

You will be eligible to participate in the benefit plans and programs made available by the Company from time to time for employees generally, subject to plan terms and generally applicable Company policies.  These currently include, but are not limited to:

	
 
	
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health insurance such as medical, dental and vision; 

	
 
	
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company-paid basic life insurance, accidental death & dismemberment, and short- and long-term disability; 

	
 
	
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paid time off such as accrued vacation, sick leave and company-paid holidays; 

	
 
	
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401(k) retirement savings plan; and employee stock purchase plan; 

 

 

Guriqbal Basi

August 28, 2017

Page 2 of 3

For additional details, please review the enclosed Employees Benefits You Can Count On document.

 

Relocation/Temporary Housing. 

The Company will reimburse you up to $87,500 for eligible relocation expenses, subject to applicable taxes and the terms of the enclosed Relocation Agreement.  Please review the Relocation Agreement for important related details and, if you agree to the terms outlined, please provide a signed copy together with your signed offer of employment letter.  [You acknowledge and agree that you will not be eligible for Company reimbursement of any relocation expenses unless you accept the Relocation Agreement before incurring any such expenses.]

 

Severance

You will be eligible for a severance agreement on terms approved by the Compensation Committee of the Board of Directors.

 

Intellectual Property

During the term of your employment, you may continue to reduce to practice the Prior Inventions (as defined in the Confidential Proprietary Rights and Non-Disclosure Agreement by and between Sarepta and you and having an Effective Date of August 14, 2017, the “NDA”) provided that you do not use any equipment, supplies, facilities or trade secret information of Sarepta and that such reduction to practice is performed on your own time.  You acknowledge and agree that any Invention (as defined in the NDA) so reduced to practice will constitute a Non-Listed Prior Invention (as defined in the NDA) and subject to the obligations set forth in the NDA, including the obligation to provide Sarepta with timely written 

notice thereof.

 

Background Check and Reference Check. 

As a part of Sarepta’s employment process, we reserve the right to conduct background checks and/or reference checks on all potential employees to the fullest extent permitted under applicable law.  This offer of employment, therefore, is contingent upon your successful completion of these checks.

 

Parking. 

As a part of Sarepta’s transportation assistance program, the Company will reimburse 50% of your parking or commuting services expenses, up to $140 per month, subject to generally applicable program terms and conditions, including acceptable substantiation of eligible expenses.

 

Employment At-Will. 

This letter and your response are not intended to constitute a contract of employment for a definite term.  If you accept our offer of employment, you will be an employee at-will, meaning that either you or the Company may terminate our employment relationship at any time for any reason, with or without cause and with or without advance notice.  None of the benefits offered to you by the Company create a right to continue in employment for any particular period of time.  The terms and conditions of your employment, including without limitation your job title, hours of work, work location, compensation, the stock option plan, and other employee benefits may change over the course of employment at the Company’s sole discretion.

 

Proprietary Rights Agreement. 

As a condition of your employment, you are required to sign a Confidential Proprietary Rights and Non-Disclosure Agreement (“Agreement”).  The Agreement is enclosed to give you an opportunity to read it carefully prior to your Hire Date.  The Agreement must be signed on or before your Hire Date as a condition of employment.

 

We would like to emphasize the importance we place on the proper treatment of all proprietary information, including that which you may have come into contact with in your prior employment.  The Company is extending this offer to you based upon your general skills and abilities, and not your possession of any trade secret, confidential or proprietary information of a former employer.  The Company requires that you do not obtain, keep, use for Sarepta’s benefit, or disclose this type of information from any prior employers to Sarepta.  By accepting this offer, you will also be affirming to the Company that you are not a party to any agreement with a prior employer that would prohibit your employment with us.

 

Moreover, you agree that during the term of your employment, you will not engage in any other employment, occupation, consulting, or other business activity directly related to the business in which the Company is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company.

 

617-274-4000    215 First Street, Cambridge, MA 02142

SAREPTA  COM

Guriqbal Basi

August 28, 2017

Page 3 of 3

 

Eligibility for Employment. 

In compliance with the United States’ Citizenship and Immigration Services, Sarepta must verify your identity and eligibility for employment in the United States within 3 business days of your Hire Date. For a list of acceptable documents, please visit http://www.uscis.gov/i-9.  Please bring the appropriate documents listed on that form with you when you report for work.  Sarepta will not be able to employ you if you fail to comply with this requirement.

 

In addition, since the Company is a Federal contractor, we participate in e-Verify, an Internet-based system that allows businesses to determine the eligibility of their employees to work in the United States.  For more information on this service, please visit http://www.uscis.gov/e-verify.

 

Acceptance. 

If you wish to accept this offer of employment with Sarepta, please sign below and return one signed copy to me.  This offer of employment will expire on Tuesday, August 29, 2017.

 

This offer of employment, the Relocation Agreement, and the Confidential Proprietary Rights and Non-Disclosure Agreement (described below) constitute the entire agreement, and supersedes all prior agreements, understanding or statements concerning your employment and all related matters, including, but not limited to, any representations made during your interviews or relocation negotiations, whether written or oral. This offer of employment letter, including, but not limited to, its at-will employment provision, may not be modified or amended, and no breach is regarded as waived, except by a written agreement signed by the Company’s CEO and President and you.

 

We are pleased to welcome you to Sarepta.  If you have any questions, please do not hesitate to contact me at 617-274-4004.

 

	
Sincerely,
	
 
	
 

	
 
	
 
	
 

	
/s/ Doug Ingram
	
 
	
 

	
Doug Ingram
	
 
	
 

	
President & Chief Executive Officer
	
 
	
 

	
 
	
 
	
 

	
Enclosures
	
 
	
 

	
 
	
 
	
 

	
Agreed to and accepted:
	
 
	
 

	
I accept the written terms in this offer of employment letter.
	
 
	
 

 

	
Signature
	
/s/ Guriqbal S. Basi
	
 
	
Date: 
	
August 29, 2017

 

 

617-274-4000    215 First Street, Cambridge, MA 02142

SAREPTA  COM

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