Document:

Exhibit 10.22

 

	
502 West Office Center Drive
   Fort Washington, PA 19034
   Phone: 215.461.2000
   Fax: 215.461.2006
   www.vitaepharma.com
    	

    

 

May 15, 2014

 

Richard Morris

 

Dear Rich:

 

On behalf of Vitae Pharmaceuticals, Inc. (the “Company”), I am pleased to offer you the position of Chief Financial Officer reporting directly to me. The terms of this employment offer are as follows:

 

Effective Date: The effective date of your employment shall be on May 19, 2014.

 

Compensation: In this position, your semi-monthly salary will be $11,458.34 ($275,000 annualized). You will also be eligible for an annual bonus opportunity. Your Target Bonus will be 35% of your Base Salary, pro-rated in year one based on start date. Your actual payment may be higher or lower and will be calculated in accordance with your performance and the company's performance versus objectives. Your payment will be payable in cash, stock or a combination of both. Any such Base Salary change and/or Target Bonus (including the composition of such bonus), will be determined by the Board of Directors (the “Board”) based upon your performance, the Company's performance and other factors. The determinations of the Board with respect to the Target Bonus, bonus composition and any Base Salary review shall be final and binding. You must be an active employee on March 15th of the year following the performance year to receive the bonus payment.

 

Benefits: As a full-time employee, you are eligible for a full range of company benefits, which currently includes health insurance, dental, vision, life insurance, 401(k), and long-term and short- term disability. You will be granted fifteen vacation days which will accrue on a monthly basis in accordance with company policy. Benefits become effective on the first day of employment.

 

Equity Participation; Vesting: Subject to the approval of the Company's Board of Directors, you will be granted an option to purchase 3,500,000 shares of Common Stock of the Company at an exercise price per share equal to the fair market value per share on the date the option is granted. The option will be subject to the usual terms and conditions applicable to options granted under the Company's 2001 Stock Plan and the applicable stock option agreement. The option will be exercisable only for vested shares. You will vest in 25% of the option shares after 12 months of continuous service, and the balance in equal monthly installments over the next 36 months of continuous service, as described in the applicable stock option agreement.

 

Proprietary Information; No Conflicts: You agree to execute the Company's standard form of Proprietary Information and Assignment of Inventions Agreement and to be bound by all of the provisions thereof. You hereby represent that you are not presently bound by any employment agreement, confidential or proprietary information agreement or similar agreement with any current

 

 

or previous employer that would impose any restriction on your acceptance of this offer or that would interfere with your ability to fulfill the responsibilities of your position with the Company. You agree to abide by the Company’s strict policy that prohibits any new employee from using or bringing with them from any prior employer any confidential information, trade secrets, proprietary materials or processes of such former employers.

 

Severance: As an Officer of the Company, Vitae Pharmaceuticals will also provide to you the following severance provision. If you are terminated by the Company without cause, involuntarily terminated for any reason other than for Cause, voluntarily resign for Good Reason (as defined below), or constructively terminated as a result of material diminution, on a cumulative and aggregate basis (taking into account any increases in such items), of your duties, authorities, position, compensation or benefits within one year following a Corporate Transaction (as defined below), the Company will provide you with six monthly separation payments at your current monthly base salary rate at that time, as full satisfaction of all outstanding obligations to you by the Company, provided (1) you have fulfilled and continue to fulfill the Proprietary Information and Inventions Agreement; and (2) you execute, and do not rescind, a release satisfactory to the Company. The Company will deliver the form of release to you within 30 days after your Separation, as defined below. You must execute and return the release within the period of time set forth in the form of release provided by the Company. The salary continuation payments under this Offer Letter will commence within 30 days after you return the release.

 

Termination for Cause shall mean a termination at the election of the Company, for Cause. For the purposes of this Agreement, “Cause” for termination shall be deemed to exist upon (a) the occurrence of dishonesty, gross negligence or misconduct of the Employee which is materially injurious to the Company, (b) the conviction of the Employee of, or the entry of a pleading of guilty or nolo-contendere by the Employee to, any crime involving moral turpitude or any felony, or (c) the refusal by the Employee to implement an instruction of the CEO or an approved resolution of the Board of Directors, insofar as such instruction or resolution is reasonable and not inconsistent with the terms of this Agreement.

 

Termination Without Cause shall mean any termination at the election of the Company, other than pursuant to a Termination for Cause or pursuant to the death or disability of the Employee, and shall take effect on the date of termination set forth in a notice to the Employee.

 

Termination With Good Reason shall mean your voluntary resignation within 12 months after one of the following conditions comes into existence without your consent: (A) a change in your position with the Company that materially reduces your level of authority or responsibility, including without limitation a change in your reporting obligations, by requiring you to report to someone other than the Chief Executive Officer of the Company (provided that, in the event a Change in Control occurs, a change in your reporting relationship with the Chief Executive Officer of the Company (or it’s successor entity) pursuant to such Change in Control shall not be deemed Good Reason hereunder), (B) a material reduction in your base salary, (C) receipt of notice that your principal workplace will be relocated by more than 50 miles, or (D) a material failure by the company to comply with its obligations to you under this letter agreement. Notwithstanding the foregoing, a condition will not be considered “Good Reason” unless you give the Company written notice of the condition within 90 days after the condition comes into existence and the Company fails to remedy the condition within 30 days after receiving your written notice.

 

 

Corporate Transaction shall mean either of the following stockholder approved transactions to which the Corporation is a party:

 

1.    a merger or consolidation in which securities possessing more that fifty percent (50%) of the total combined voting power of the Corporation’s outstanding securities are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction, or

 

2.    the sale, transfer or other disposition of all or substantially all of the Corporation’s assets, a completed liquidation, or dissolution of the Corporation.

 

Separation from Service: Wherever this Offer Letter refers to a termination of employment, termination of service or similar event, including (without limitation) a termination without cause or involuntary termination, the reference will be construed as a Separation, as defined below.

 

Mandatory Deferral of Payments. If the Company determines that you are a “specified employee” under Section 409A(a)(2)(B)(i) of the Code at the time of your Separation, as defined below, then (a) the salary continuation payments under this Offer Letter, to the extent that they are subject to Section 409A of the Code, will commence during the seventh month after your Separation and (b) the installments that otherwise would have been paid during the first six months after your Separation will be paid in a lump sum when the salary continuation payments commence.

 

Definition. For all purposes under this Offer Letter, “Separation” means a “separation from service,” as defined in the regulations under Section 409A of the Code.

 

Substance Abuse Program: The Company requires you as a job applicant to satisfactorily pass a drug-screening test. The offer of employment is contingent based on the final results of your drug test. All job applicants must understand that current illegal use of drugs or abuse of alcohol would prohibit this offer from becoming effective. In order to satisfy the conditions of this offer, as part of your application for a position with the Company, you must agree to submit to urinalysis or other tests to be conducted by Quest Diagnostics Lab, as are required by the Company for the purposes of determining any illegal drug or alcohol use. Such test results will be reviewed by the Company or an authorized medical review officer for compliance with the Company’s drug and alcohol policy.

 

Background and Reference Check: You understand and agree that this offer of employment is contingent upon you successfully passing (to the Company’s satisfaction) a background check, and you agree to fully and timely cooperate with the Company to complete the background check process.

 

Withholding Taxes: All salary and allowances referred to in this letter will be considered normal income and will be subject to applicable state and federal income taxes.

 

At-Will Employment: Vitae Pharmaceuticals is an at-will employer. Under this condition of at-will employment, the employee or the Company may, with or without cause and with or without notice, terminate employment at any time for any lawful reason. Any contrary representations that may have been made to you are superseded by this offer. Nothing in this offer is to be construed as creating any right to employment for any specified period of time. This is the full and complete agreement between you and the Company on this term. Although your job duties, title, compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express writing signed by you and the Chief Executive Officer of the Company.

 

 

Entire Agreement: This letter agreement supersedes and replaces any prior agreements, representations or understandings, whether written, oral or implied, between you and the Company.

 

Governing Law: The terms of this letter agreement and the resolution of any disputes will be governed by Pennsylvania law (without reference to its conflicts of laws provisions).

 

This offer is subject to proof of eligibility to work in the U.S. On your first day of employment, please bring evidence of your identity and employment eligibility. A list of acceptable documentation is attached.

 

Vitae’s executive team is very enthusiastic about you joining the Company. We believe together with your leadership we can build a very successful pharmaceutical company that develops leading drugs to treat human disease.

 

To accept this offer, please sign the enclosed copy of this letter and return it to me as soon as possible. You may fax it to 215-461-2016. If you have any questions please feel free to contact me at 215-461-2025.

 

Sincerely,

 

 

	
/s/ Jeff Hatfield
    	
 
    
	
Jeff Hatfield
    	
 
    
	
Chief Executive   Officer
    	
 
    

 

 

I have read and accept the terms of this employment offer:

 

 

	
/s/ Richard Morris
    	
 
    
	
Richard Morris
    	
 
    

 

 

	
May 19, 2014
    	
 
    
	
DateExhibit 10.23

 

Vitae Pharmaceuticals, Inc.
  502 West Office Center Drive
 Ft. Washington, PA 19034

 

April 3, 2006

 

Donald J. Hayden, Jr.

Dear Donald,

 

Vitae Pharmaceuticals, Inc. (the “Company”) is pleased to offer you a position as Chairman of the Company’s Board of Directors (the “Board”). The following letter agreement sets forth our agreement regarding the terms of your service and provides some information on the benefits available to you as a member of the Board.

 

As we have discussed, you will perform certain consulting, advisory and related services to and for the Company on a part-time basis as may be reasonably requested by the Board (the “Services”). In consideration of performance of the Services, which are expected to require approximately one (1) to two (2) days per month, the Company shall pay you during the term of this letter agreement a monthly fee of $3,334.00. The fee shall be paid by check or wire transfer in accordance with the Company’s usual payroll practices but in no event later than fifteen (15) business days following the end of each applicable month. The Company acknowledges that you may engage in other business activities (the “Other Activities”) on the terms and conditions set forth herein during the term of this letter agreement.

 

Subject to the approval of the Board or its Compensation Committee, you will be granted two options to purchase shares of the Company’s Common Stock.

 

The first option will cover 786,497 shares, which amount is equal to thirty-five one hundredths of one percent (0.35%) of the outstanding capitalization of the Company as of the date of this letter agreement (assuming exercise of all outstanding options), and will be in consideration of your service as a member of the Board. You will vest in 25% of these option shares after providing twelve (12) months of continuous service as a member of the Board, and with respect to an additional 2.08333% of these option shares when you complete each month of continuous service as a member of the Board thereafter, as described in the applicable stock option agreement.

 

The second option will also cover 786,497 shares, but will be in consideration of your performance of the Services. You will vest in fifty percent (50%) of these option shares after providing twelve (12) months of continuous Services, you will vest in an additional twenty-five

 

 

percent (25%) of these option shares after providing twenty four (24) months of continuous Services and you will vest in the final twenty-five percent (25%) of these option shares after providing thirty six (36) months of continuous Services, as described in the applicable stock option agreement.

 

The exercise price per share will be equal to the fair market value per share on the date the options are granted. The current fair market value of the Company’s Common Stock is $0.15 per share. The options will be immediately exercisable, but the purchased shares will be subject to repurchase by the Company at the exercise price in the event that your service as a Board member or your performance of the Services, as applicable, terminates for any reason before you vest in the shares. The options will be subject to the terms and conditions applicable to options granted under the Company’s 2001 Stock Plan, as described in that Plan and the applicable stock option agreements.

 

The entire unvested portion, if any, of the option shares covered by both options shall become vested if the Company is subject to a Change in Control (as defined in the applicable stock option agreement) before your service terminates.

 

In addition, you will be authorized to incur reasonable travel expenses in connection with attendance at Board meetings. The Company will promptly reimburse you for such expenses after receipt of appropriate supporting documentation.

 

As a member of the Board, you shall be bound by your fiduciary duties to the Company. In addition, you agree that all inventions, works of authorship, mask works, know-how, ideas and information made or conceived or reduced to practice, in whole or in part, and other business, technical and financial information (including information relating to the Company’s plans, customers and employees) that you develop, learn or obtain in connection with your service as a member of the Board, constitute Proprietary Information. You agree to safeguard, hold in confidence and not disclose or, except in performing your duties under this agreement, use any Proprietary Information. However, you shall not be so obligated with respect to information that you can document (a) is or becomes readily publicly available without restriction through no fault of your own, or (b) you knew without restriction prior to its disclosure by the Company. Upon termination of your service and as otherwise requested by Company, you will promptly return to Company all originals and copies of any Proprietary Information, and all information, records and materials developed therefrom.

 

You agree any Services you provide the Company are as an independent contractor and that you are solely responsible for all taxes, withholdings, and other statutory or contractual obligations of any sort, including, but not limited to, Workers’ Compensation Insurance. You shall not be entitled to consideration for the Services other than that set forth in this letter agreement. You shall not be entitled to any benefits, coverages or privileges, including, without limitation, social security, unemployment, medical or pension payments, made available to employees of the Company.

 

You or the Company may terminate this letter agreement at any time, with or without cause, upon fifteen (15) days’ written notice.

 

2

 

Nothing in this letter agreement or the stock option agreement should be construed to interfere with or otherwise restrict in any way the rights of the Company to remove any individual from the Board at any time.

 

We hope that you find the foregoing terms acceptable. You may indicate your agreement with these terms and accept this offer by signing and dating both the enclosed duplicate original of this letter and returning them to me.

 

If you have any questions, please call.

 

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
VITAE PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeffrey Hatfield
    
	
 
    	
 
    	
Jeffrey Hatfield, Chief Executive Officer
    

 

 

I have read and accept this offer:

 

 

	
/s/ Donald J. Hayden, Jr.
    	
 
    
	
Signature of Donald J. Hayden, Jr.
    	
 
    
	
Date: April 4, 2006
    	
 
    

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00234-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00234-of-00352.parquet"}]]