Document:

rdus-ex101_18.htm

Exhibit 10.1

950 Winter Street

Waltham,  MA 02451

Tel: (617) 551-4000

Fax: (617) 551-4701

 

 

May 9, 2017

 

Jose Carmona

721 Thomas Road

Philadelphia, PA 19118

 

Dear Pepe,

 

I am pleased to offer you full-time employment with Radius Health, Inc. (“Radius” or the “Company”) as the Chief Financial Officer (“CFO”) of Radius reporting to Bob Ward, Chief Executive Officer of Radius. Your position will be based out of our Waltham corporate offices with a start date of May 15, 2017.

 

In the course of your employment with Radius, you will be subject to and required to comply with all Company policies, and applicable laws and regulations. The Company requires that, as a full-time employee, you devote your full business time, attention, skill, and efforts to the tasks and duties of your position with the Company. The term "Agreement" as used below shall mean this letter agreement.

 

The starting salary for this position is $17,083.33 on a semi-monthly basis, which annualized is $410,000.00 (less applicable taxes and withholdings).

 

This Agreement is contingent upon, and will become effective only upon, (i) your successful completion of a drug screening test and prior to your first day of employment; (ii) satisfactory results of a comprehensive background check (including, but not limited to, social security number, previous employment, conviction record, and education); (iii) proof of your eligibility to work for Radius in the United States; (iv) your commencing employment with the Company on May 15, 2017; and (v) ratification of this Agreement by the Company’s Board of Directors (the “Board”).

 

Bonus Eligibility

Commencing with the calendar year 2017, you will be eligible to participate in the Radius discretionary Bonus plan. Under this plan, your annual bonus incentive target will be 40% of your actual base earnings for the bonus plan year, and subject to Board approval, would be payable annually, generally in March of the plan year following the year to which the bonus pertains. Your actual incentive award will be based on your individual performance and the overall performance of Radius. Your bonus will be pro-rated during the first year of employment. The criteria and amount of the bonus will be determined on an annual basis, in Radius’ sole discretion.  You must be employed as of the pay-out date of any bonus in order to earn and be eligible to receive it.

 

Sign-On Bonus

You will be eligible to receive a Sign-On Bonus in the gross amount of $40,000.00 (less applicable taxes and withholdings). This bonus will be paid in the first pay period following completion of 30 days of employment. In the unlikely event your employment is terminated for cause or should you voluntarily resign during your first year of employment, you will be required to repay the Bonus amount that has been paid to you as of your termination date.

 

 

Stock Options

As an inducement to your employment with the Company, and subject to receipt of necessary Board approvals following the date of the commencement of your employment with the Company, Radius will grant to you 125,000 non-statutory stock options (the “Options”) for the purchase of common stock of Radius, at a price equal to the closing price value of Radius’ stock on the date the Options are approved. The Options will vest as to 25% of the underlying shares on the first anniversary of the grant date and in equal monthly installments over the following thirty-six (36) months. The Options are intended to constitute an “employment inducement grant” under NASDAQ Listing Rule 5635(c)(4), and consequently are intended to be exempt from the NASDAQ rules regarding shareholder approval of stock option and stock purchase plans. The Options shall be subject to all terms, vesting schedules, limitations, restrictions and termination provisions set forth in a separate stock option agreement, outside of the Company’s 2011 Equity Incentive Plan, that shall be executed by you and Radius to evidence the grant of the Options.

 

Relocation

For the first year of employment you will receive a monthly stipend of $3,500.00 to cover temporary living expenses at our Waltham location.

 

At the conclusion of your first year of employment we will agree upon a reasonable and customary lump sum amount for your future relocation expenses. This amount will be payable to you as a lump sum immediately upon completion of a year of employment to use at your discretion.

 

Benefits

You also will be eligible to participate in a generous employee benefits program, an overview of which is enclosed, provided you are eligible under, and subject to all provisions of, the plan documents governing the program. Some benefit plans will require you to make elections and choose levels of coverage to meet your personal needs.  Effective the first of the month following your date of hire, you will be eligible to begin participation in the Company’s benefits plans including health and dental insurance, life insurance, short and long term disability as well as Flexible Spending Accounts and the Company’s 401(k) Plan and Employee Stock Purchase Plan.

 

You are eligible to accrue 15 days of paid vacation time per year, which shall accrue on a pro-rated monthly basis and may be used in accordance with Radius’ regular policies. Your vacation days will be pro-rated during the first year of employment.

 

All of the Company's employee plans, to include all compensation and benefit programs, are subject to change at any time, at the sole discretion of the Company, and the plan provisions in effect from time to time will govern all awards and benefits provided.

 

Severance

On or prior to your commencing employment, you and the Company will enter into the Company’s current form of Executive Severance Agreement (the "Severance Agreement"), which agreement will govern the payments and benefits you may receive upon a termination of your employment with the Company. Except as otherwise provided in the Severance Agreement, the Company's obligations to you under this Agreement will cease upon your termination of employment for any reason.

 

Confidentiality And Post-Employment Obligations

As a condition of employment, you hereby agree to execute and abide by the Company’s current form of Confidentiality and Non-Competition Agreement (“Confidentiality Agreement”), which may be amended by the parties from time to time without regard to this Agreement. The Confidentiality Agreement contains provisions that are intended by the parties to survive and do survive termination of this Agreement. Radius expects that you will honor your contractual and/or common-law obligations not to disclose any confidential, proprietary or trade secret information (such as formulas, marketing or development plans, or confidential client information) you acquired while employed by your current or former employers. Furthermore, to the extent you have post-employment contractual obligations to another employer, by signing this letter you certify to Radius that you will 

 

 

be able to fully perform the duties and responsibilities of your position with Radius without violating any obligations to any former employer.

 

Term and Termination

This Agreement shall commence on your first day of your employment with the Company. This Agreement is not intended to be, and should not be construed as, a contract of employment for any specific period of time. Employment at Radius is at-will, which means that either you or Radius may terminate your employment at any time. Radius also reserves the right to change the terms and conditions of your employment, including the provisions of compensation and benefits programs, at any time.

 

Successors

This Agreement is personal to you and without the prior written consent of the Company you shall not assign your rights or obligations under this Agreement, otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by your legal representatives. This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

 

Applicable Law

This Agreement has been made under and shall be construed and enforced in accordance with the laws of the Commonwealth of Massachusetts, disregarding any choice of law rules that would result in the application of the laws of another jurisdiction.

 

Notice

Any notice, statement or demand required to be given under this Agreement shall be in writing and shall be sent by hand delivery against receipt, certified mail, return receipt requested or by a nationally recognized overnight carrier to the address of the parties first listed above or such other address as either party subsequently provides to the other in accordance with the provisions of this paragraph.

 

Waiver

The failure of either party to insist upon strict performance of any of the terms or provisions of this Agreement or to exercise any option, right or remedy contained in this Agreement, shall not be construed as a waiver or as a relinquishment for the future of such term, provision, option, right or remedy, but the same shall continue and remain in full force and effect. No waiver by either party of any term or provision of this Agreement shall be deemed to have been made unless expressed in writing and signed by such party.

 

Entire Agreement

If you accept this offer, this Agreement, the Confidentiality Agreement and the Severance Agreement shall constitute the complete agreement between you and the Company with respect to the terms and conditions of your employment. Any prior or contemporaneous representations (whether oral or written) not contained in this Agreement, the Confidentiality Agreement or the Severance Agreement or contrary to those contained in this Agreement, the Confidentiality Agreement or the Severance Agreement that may have been made to you are expressly cancelled and superseded by this offer. Except as otherwise specified herein, the terms and conditions of your employment may not be changed, except in another written agreement, signed by you and an authorized representative of the Company.

 

 

 

Pepe, we are thrilled to have you accept as the Company’s CFO and look forward to you joining Radius. If this Agreement correctly sets forth the terms under which you will be employed by Radius, please countersign this letter in the space provided below. Please return your countersigned offer letter to Deb Kauffman by e-mail.

 

 

Best regards,

 

 

/s/ Robert E. Ward

Robert E. Ward

President and Chief Executive Officer

 

By signing below, you agree that you are not relying on any representations other than as set out above, and that you accept employment with Radius on the terms set forth in this letter.

 

 

					
	
Signature:
	
/s/ Jose Carmona
	
 
	
Date:
	
May 11, 2017

 

 

cc:  D. Kauffmanrdus-ex102_19.htm

Exhibit 10.2

Radius Health, Inc.

Employment Inducement Stock Option Agreement

This Stock Option Agreement (the “Agreement”) is entered into as of the Grant Date set forth below (the “Grant Date”) between Radius Health, Inc., a corporation organized under the laws of the State of Delaware (the “Company”), and the individual identified in paragraph 1 below, currently residing at the address set out at the end of this Agreement (the “Optionee”).  

1.Grant of Option; Incorporation of Terms of Plan.  Pursuant and subject to the terms of this Agreement, the Company grants to you, the Optionee identified in the table below, an option (the “Option”) to purchase from the Company all or any part of a total of the number of shares identified in the table below (the “Optioned Shares”) of the common stock, par value $0.0001 per share, in the Company (the “Stock”), at the exercise price per share set out in the table below.  

 

		
	
Optionee
	
Jose Carmona

	
 
	
 

	
Number of Shares
	
125,000

	
 
	
 

	
Exercise Price Per Share
	
$34.96

	
 
	
 

	
Grant Date
	
May 15, 2017

	
 
	
 

	
Vesting Commencement Date
	
May 15, 2017

	
 
	
 

	
Expiration Date
	
May 15, 2027

	
 
	
 

This Option is made and granted as a stand-alone award and is not granted under or pursuant to the Company’s 2011 Equity Incentive Plan (as the same may be amended from time to time, the “Plan”).  Notwithstanding the foregoing, except as set forth in the immediately preceding sentence, the terms, conditions and definitions set forth in the Plan shall apply to the Option as though the Option had been granted under the Plan (including but not limited to the adjustment provision contained in Section 8 of the Plan) as an “Option,” as such term is used in the Plan, and the Option shall be subject to such terms, conditions and definitions, which are hereby incorporated into this Agreement by reference.  For the avoidance of doubt, the Option shall not be counted for purposes of calculating the aggregate number of shares of Stock that may be issued or transferred pursuant to Awards under the Plan.  You hereby acknowledge receipt of a copy of the Plan and agree to be bound by all the terms and provisions thereof.  In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.

2.Character of Option. Nonstatutory Stock Option.

3.Expiration of Option.  No portion of the Option which has not become vested and exercisable at the date of your termination of employment or other service with the Company shall thereafter become vested and exercisable (and any such unvested portion shall thereupon be immediately forfeited), except as may be otherwise provided by the Board or Committee, as applicable, or as set forth in a written agreement between the Company and you.  This Option shall expire at 5:00 p.m. Eastern Time on the Expiration Date or, if earlier, the earliest of the dates specified in whichever of the following applies:

 

 

(a)If the termination of your employment or other service is on account of your death or disability, the date that is twelve (12) months from the date on which your employment or other service with the Company ends.

(b)If the termination of your employment or other service is due to any other reason, the date that is three (3) months from the date on which your employment or other service with the Company ends.

(c)If the Company terminates your employment or other service for cause, or at the termination of your employment or other service the Company had grounds to terminate your employment or other service for cause (whether then or thereafter determined), the start of business on the date on which the termination of your employment or other service with the Company ends.

4.Exercise of Option.  Subject to Section 3, this Option will vest and become exercisable as to 25% of the Optioned Shares on the first anniversary of the Vesting Commencement Date and as to 1/48th of the Optioned Shares on the same day of each of the 36 consecutive months thereafter, provided that each Optioned Share which would be fractionally vested shall be cumulated and shall vest on the first vesting date upon which the whole Optioned Share has cumulated.  However, during any period that this Option remains outstanding after your employment or other service with the Company ends, you may exercise it only to the extent it was exercisable immediately prior to the end of your employment or other service.  The procedure for exercising this Option is described in Section 7.1(e) of the Plan (Method of Exercise).

5.Transfer of Option.  You may not transfer this Option except by will or the laws of descent and distribution, and, during your lifetime, only you may exercise this Option.  After your death, any exercisable portion of the Option may, prior to the time when the Option becomes unexercisable under Sections 3 and 4, be exercised by your personal representative or by any person empowered to do so under your will or under the then-applicable laws of descent and distribution.

6.Community Property.  Without prejudice to the actual rights of the spouses as between each other, for all purposes of this Agreement, you shall be treated as agent and attorney-in-fact for that interest held or claimed by your spouse with respect to this Option and any Optioned Shares and the parties hereto shall act in all matters as if you were the sole owner of this Option and (following exercise) any such Optioned Shares.  This appointment is coupled with an interest and is irrevocable.

7.Employment Inducement Grant.  This Option is intended to constitute an “employment inducement grant” under NASDAQ Listing Rule 5635(c)(4), and consequently is intended to be exempt from the NASDAQ rules regarding shareholder approval of stock option and stock purchase plans. This Agreement and the terms and conditions of the Option shall be interpreted in accordance and consistent with such exemption.

8.Rights as Stockholder.  The holder of the Option shall not be, nor have any of the rights or privileges of, a stockholder of the Company in respect of any shares of Stock purchasable upon the exercise of any part of the Option unless and until such shares of Stock shall have been issued by the Company to such holder (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).  

9.Miscellaneous.  The Board or Committee, as applicable, shall have the power to interpret this Agreement and to adopt such rules for the administration, interpretation and application of this Agreement and the Plan as are consistent therewith and to interpret, amend or revoke any 

 

 

such rules.  This Agreement shall be construed and enforced in accordance with the laws of the State of Delaware, without regard to the conflict of laws principles thereof and shall be binding upon and inure to the benefit of any successor or assign of the Company and any executor, administrator, trustee, guardian, or other legal representative of you.  The Plan and this Agreement constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and you with respect to the subject matter hereof.  Capitalized terms used but not defined herein shall have the meaning assigned under the Plan.  This Agreement may be executed in one or more counterparts all of which together shall constitute but one instrument.   

10.Tax Consequences.  The Company makes no representation or warranty as to the tax treatment to you of your receipt or exercise of this Option or upon your sale or other disposition of the Optioned Shares.  You should rely on your own tax advisors for such advice.  

11.Consideration to the Company.  In consideration of the grant of the Option by the Company, you agree to render faithful and efficient services to the Company or any Affiliate.  Nothing in the Plan or this Agreement shall confer upon you any right to continue in the employ or service of the Company or any Affiliate or shall interfere with or restrict in any way the rights of the Company and its Affiliates, which rights are hereby expressly reserved, to discharge or terminate your services at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in a written agreement between the Company or an Affiliate and you.

12.Limitations Applicable to Section 16 Persons.  Notwithstanding any other provision of the Plan or this Agreement, if you are subject to Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Plan, the Option and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule.  To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

13.Conformity to Securities Laws.  You acknowledge that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act of 1933, as amended, and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, and state securities laws and regulations.  Notwithstanding anything herein to the contrary, the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations.  To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

 

In Witness Whereof, the parties have executed this Agreement as a sealed instrument as of the date first above written.

 

RADIUS HEALTH INC.

				
	
 
	
 
	
 
	
 

	
By:
	
/s/ Robert E. Ward
	
 
	
/s/ Jose Carmona

	
Name:
Title:
	
Robert E. Ward

President and Chief Executive Officer
	
 
	
Signature of Optionee

	
 
	
 
	
 
	
Optionee’s Address:

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
721 Thomas Road

	
 
	
 
	
 
	
Philadelphia, PA 19118

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