Document:

exv10w1

 

Exhibit 10.1

ViaCell

As of June 16, 2007

John Thero

12 Buttonwood Drive

Andover, MA 01810

Dear John:

On behalf of ViaCell, Inc. (the “Company”), I am pleased to extend an offer of employment to you.
You have made an outstanding impression, and we feel confident that you will become a valuable
asset to the Company. Information about the Company as well as the details of our offer of
employment are summarized below.

	 	 	 
	ViaCell Mission

	 	ViaCell is dedicated to the
commercialization of cell
therapy for serious or life
threatening diseases.
	 
	 	 
	ViaCell Culture

	 	Every day you will be
contributing to technology
that will enrich of the
future lives of people. We
hire innovative thinkers,
with the skills and
capabilities to thrive on a
high quality,
success-driven team.
	 
	 	 
	Position and Anticipated Start Date

	 	Chief Financial Officer,
reporting to Marc Beer,
President and Chief
Executive Officer. As
discussed, we expect your
start date to be on or
before June 29, 2007. This
position is a key factor in
the Company’s continued
success, and I am confident
that it will be an exciting
opportunity for you as
well. We agreed you may
spend reasonable time with
your former employer, post
your ViaCell start date, to
complete a professional
transition.
	 
	 	 
	Compensation

	 	The starting base salary
for this position is
$330,000 per year payable
in bi-weekly installments
of $12,692.31.
	 
	 	 
	 

	 	In addition, you will be
eligible to participate in
the Management Bonus Plan
at an annual target of 40%
of your base salary, based
on agreed to company and
individual performance
objectives. Your
eligibility will provide
for a full annual bonus
opportunity, without
proration, and will be
based on personal goals and
second half 2007 corporate
performance goals. It is understood that for the purposes of your
bonus evaluation that the second half 2007 corporate performance
goals will be consistent with the financial forecast presented to the
Company’s Board of Directors in May 2007.
It is also understood that with
respect to the individual
performance portion of the
Management Bonus Plan that
within 30 days of your
start date that you and the
Company’s President and CEO
will mutually agree upon
written goals which gives
consideration to you being
new to the Company.
	 
	 	 
	 

	 	The Company’s
President and CEO will
review your individual
performance against your
personal goals in Q1 2008.
This assessment, along with
management’s assessment of
performance against
corporate performance
goals, including the second
half performance goals
described above, will be
submitted to the
Compensation Committee for
review in Q1 2008. The
Compensation Committee and
the Board of Directors will
determine the actual amount
of the bonus payable to you
based on its

 

 

	 	 	 
	 

	 	own
assessments of performance
against individual and
corporate goals, and core
competencies, such as
management and development
of people, team-work,
communication, leadership,
compliance and the exercise
of sound judgment in
performing your
responsibilities, and such
other matters as management
or the Board of Directors
may elect to factor into
the calculation, such as
integrity, compliance and
leadership. Payout of the
bonus will occur by end of
Q1 2008.
	 
	 	 
	 

	 	Finally, ViaCell will
provide a cash sign-on
bonus in the amount of
$20,000. Should you leave
your employment voluntarily
within one year of receipt
of this bonus, you agree to
repay a prorated portion of
the full amount.
	 
	 	 
	Stock Options

	 	As an incentive for you to
participate in our future
growth, you will receive,
subject to approval by our
Board of Directors, an
incentive stock option to
purchase up to 150,000
shares of our Common Stock.
Management will recommend
to the Board of Directors
that the exercise price of
the options be the closing
price of our Common Stock
on your first date of
employment with the Company. The options will vest
quarterly over four years,
with 6.25% of the options
vesting on each three month
anniversary of your
employment start date until
fully vested. The options
are subject to the terms
and provisions of our
Amended and Restated 1998
Equity Incentive Plan (the
“Plan”) and the option
certificate (or other
similar document) that will
be issued to you in
connection with the option
grant, and any other terms
or conditions that the
Board of Directors may
require. The Plan and a
Prospectus summarizing the
Plan are available on
Viasphere (our intranet
site) and upon request to
HR. Please review the
Plan, the summary
Prospectus and the option
certificate (or other
similar document) carefully
and contact HR if you have
any questions. A copy of
the Plan and the Prospectus
are attached to this
letter.
	 
	 	 
	Additional Employment Terms

	 	ViaCell will provide for twelve (12)
months’ severance pay in the event of
involuntary termination without Cause or
voluntary termination for Good Reason. If
the Company terminates your employment
without Cause or if you terminate your
employment for Good Reason, then ViaCell
will continue paying your base salary and
medical and dental benefit contributions
for a period of twelve (12) months in
accordance with its regular payroll
practices at such time (collectively the
severance pay and continuation of benefits
described in this paragraph are the
“Severance Payments”).
	 
	 	 
	 

	 	The term “Cause” as used herein means (i)
your continued failure to substantially
perform your duties, provided you are
reasonably notified of such failure and
given reasonable time to correct such
failure, (ii) any misappropriation of
funds, properties or assets of the Company
by you, (iii) any damage or destruction of
any property or assets of the Company
caused by you, whether resulting from your
willful actions or willful omissions or
gross negligence; (iv) your being convicted
of a felony; or (v) any material breach of
your employment obligations or of the
Intellectual Property and Confidential
Information Agreement.
	 
	 	 
	 

	 	The term “Good Reason” as used herein means
any action by the Company without your
prior consent which results in (i) any
material diminution in your title,
position, duties, responsibilities or
authority; or (ii) any breach by the
Company of any material provision contained
herein; provided that a Good Reason shall
not be deemed to exist for purposes of this
severance provision until you have provided
the Company with written notice of same and
the Company has not cured it for 30 days
following the receipt of such notice.

 

 

	 	 	 
	Change of Control

	 	Upon a Change of Control of the
Company, all options held by you at the
time of such Change of Control scheduled to
vest in the subsequent twelve-month period
only as a result of the passage of time
shall vest immediately with respect to that
portion of such options so scheduled to
vest. Such options will otherwise continue
to be subject to other applicable grant
provisions.
	 
	 	 
	 

	 	If the Company terminates your employment
without Cause or you voluntarily resign for
Good Reason within twelve months of a
Change of Control, all options held by you
at the time of such Change of Control that,
by their terms, become exercisable only as
a result of the passage of time shall
become fully vested and exercisable. Such
options will otherwise continue to be
subject to other applicable grant
provisions. Further, ViaCell will, upon
such a termination following a Change of
Control and in addition to the Severance
Payments described above, pay you your
bonus pursuant to the Management Bonus Plan
for the bonus year in which such
termination occurs, with the bonus for such
period determined by assuming achievement
of Company and individual performance
objectives (the “Change of Control Bonus”).
	 
	 	 
	 

	 	A “Change in Control” shall mean: (i) a
merger, consolidation or similar
combination after which 50% or more of the
voting stock of the surviving corporation
is held by persons who were not
stockholders of the Company immediately
prior to such merger or combination; (ii)
the sale, transfer or other disposition of
all or substantially all of the Company’s
assets to one or more persons (other than
any wholly owned subsidiary of the Company)
in a single transaction or series of
related transactions; or (iii) any person
or related group of persons (other than the
Company or a person who directly or
indirectly controls, is controlled by, or
is under common control with the Company)
directly or indirectly acquires beneficial
ownership (determined pursuant to Rule
13d-3 promulgated under the Securities
Exchange Act of 1934, as amended) of
securities comprising more than 50% of the
total combined voting power of the
Company’s outstanding securities pursuant
to a tender or exchange offer made directly
to the Company ’s stockholders.
	 
	 	 
	Release of Claims

	 	Any obligation of the Company to pay
you the Severance Payments or the Change of
Control Bonus described above is
conditioned on your signing and returning
to the Company a timely and effective
release of claims in the form provided by
the Company (the “Release of Claims”).
Such Release of Claims creates legally
binding obligations on your part, and the
Company therefore advises you to seek the
advice of an attorney before signing it.
Any Severance Payments or Change of Control
Bonus to which you are entitled shall be
payable in accordance with the normal
payroll practices of the Company, and will
begin at the Company’s next regular payroll
period which is at least five business days
following the later of the effective date
of the Release of Claims or the date the
Release of Claims, signed by you, is
received by the Company; but the first
payment shall be retroactive to the date of
termination.
	 
	 	 
	Benefits

	 	Because we care about the well being
of our employees, we are pleased to provide
you with a comprehensive offering of
benefits. Our benefits currently include
medical, dental, life insurance, 401k,
three weeks vacation (accrued monthly and
pro-rated during your first calendar year
of employment), balance benefit,
educational assistance and
flexible-spending accounts. The ViaCell
Benefits summary is attached to this
letter.

 

 

	 	 	 
	 
	 	 
	Employment Relationship

	 	While we look forward to a long and
mutually beneficial relationship, you
acknowledge that this letter does not
constitute a contract of employment for any
particular period of time and does not
affect the at-will nature of the employment
relationship with the company. Either you
or the Company has the right to terminate
your employment at any time.

The Company agrees to work with you on the plan, timing and content of the public announcement of
your hire. Of course, any such plan, timing and content must comply with applicable disclosure
laws and regulations.

We are very excited about the future of the Company and believe that the opportunities presented
will allow you significant personal and professional growth. If you have any questions or
concerns, please do not hesitate to contact me anytime. We look forward to having you join our
team!

Sincerely,

/s/ Marc Beer

Marc Beer

President and Chief Executive Officer

Please acknowledge your acceptance of this offer by signing a copy of this document along with the
Agreement Relating to Intellectual Property and Confidential Information and the Code of Business
Conduct and Ethics and mailing the signed documents back in the self addressed envelope provided at
your earliest convenience. This offer of employment is contingent upon your signed acceptance of
the offer and the Agreement and Code documents.

	 	 	 	 	 
	/s/ John Thero

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Signature

	 	Date	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Social Security Number

	 	Start Date<PAGE>

                                                                    EXHIBIT 10.1

                              AMENDED AND RESTATED
                     MOLECULAR INSIGHT PHARMACEUTICALS, INC.
                           2006 EQUITY INCENTIVE PLAN

                          INCENTIVE STOCK OPTION AWARD

[Name]
[Address]

Dear _____________________:

You have been granted an option (the "Option") to purchase shares of common
stock of Molecular Insight Pharmaceuticals, Inc. (the "Company") under the
Amended and Restated Molecular Insight Pharmaceuticals, Inc. 2006 Equity
Incentive Plan (the "Plan") with the following terms and conditions:

Grant Date:                __________, 20___

Type of Option:            Incentive Stock Option

Number of Option Shares:   __________________

Exercise Price per Share:  U.S. $_____________

Expiration:                Close of business at the Company headquarters on the
                           tenth (10th) anniversary of the Grant Date, subject
                           to earlier termination as described under
                           "Termination of Employment."

Vesting:                   Your Option will vest in accordance with the
                           following schedule, provided you are continuously
                           employed by the Company or an Affiliate until the
                           applicable vesting date:

                               Percent of
                             Option Vested               Vesting Date
                             -------------               ------------
                           25%                 1st anniversary of the Grant Date
                           An additional 25%   2nd anniversary of the Grant Date
                           An additional 25%   3rd anniversary of the Grant Date
                           An additional 25%   4th anniversary of the Grant Date

                           [__________ PERCENT (___%) OF YOUR OPTION WILL VEST
                           ON ACHIEVEMENT OF PERFORMANCE GOALS AS SPECIFIED IN
                           SCHEDULE A TO THIS STOCK OPTION AWARD, PROVIDED YOU
                           ARE CONTINUOUSLY EMPLOYED BY THE COMPANY OR AN
                           AFFILIATE UNTIL THE PERFORMANCE GOALS ARE ACHIEVED.]*

----------------------
* If a milestone provision is included, the vesting percentage subject to four
equal annual installments needs to be proportionally reduced.

<PAGE>
<TABLE>
<CAPTION>
<S>                                   <C>

                                       Upon termination of your employment with
                                       the Company and its Affiliates for
                                       any other reason (other than for Cause),
                                       the unvested portion of your Option
                                       will terminate on the date of such
                                       termination.

                                       In the event of a Change of Control of
                                       the Company, your Option will be
                                       treated as provided in Section 14(c) of
                                       the Plan.

Manner of Exercise:                    You may exercise your Option only to the
                                       extent vested and only if the Option
                                       has not terminated. To exercise your
                                       Option, you must complete the "Notice
                                       of Stock Option Exercise" form provided
                                       by the Company and return it to the
                                       address indicated on the form. Your form
                                       must specify how many shares you
                                       wish to purchase and will explain how you
                                       must satisfy the exercise price and
                                       withholding taxes due, if any, upon
                                       exercise. The form will be effective
                                       when it is received by the Company.

                                       If someone else wants to exercise your
                                       Option after your death, that person
                                       must contact the Company and prove to the
                                       Company's satisfaction that he or
                                       she is entitled to do so. Your ability to
                                       exercise the Option may be
                                       restricted by the Company if required by
                                       applicable law, any Company policy
                                       or any agreement between the Company and
                                       its underwriters.

Termination of Employment:             If your employment terminates your Option
                                       will terminate on the close of
                                       business at the Company headquarters as
                                       follows:

                                       -    If your employment terminates as a
                                            result of death or Disability (at
                                            a time when your employment could
                                            not have been terminated for
                                            Cause), the vested portion of your
                                            Option will terminate ninety (90)
                                            calendar days after the date of the
                                            termination.

                                       -    If your employment terminates as a
                                            result of your Retirement, the
                                            vested portion of your Option will
                                            terminate ninety (90) calendar days
                                            after the date of your termination
                                            of employment.

                                       -    If your employment terminates for
                                            any other reason (other than for
                                            Cause, as described below), the
                                            vested portion of your Option will
                                            terminate ninety (90) calendar days
                                            after the date of the termination.

                                       If your employment is terminated for
                                       Cause, your entire Option (whether
                                       vested or nonvested) is terminated
                                       immediately. In addition, if you have
                                       submitted a notice of exercise that has
                                       not yet been processed and your
                                       employment is terminated for Cause, your
                                       notice of exercise will be rescinded
                                       and your exercise price will be returned
                                       to you.
</TABLE>

                                       2

<PAGE>
<TABLE>
<CAPTION>
<S>                                   <C>

Transferability:                       You may not transfer or assign your
                                       Option for any reason, other than under
                                       your will or as required by intestate
                                       laws. Any attempted transfer or
                                       assignment in violation of this provision
                                       will be null and void. During your
                                       lifetime, only you (or your guardian or
                                       legal representative if approved by
                                       the Company in the event of your
                                       incapacity) are entitled to exercise the
                                       Option.

Restrictions on Resale:                By accepting the Option, you agree not to
                                       sell any Shares acquired under the
                                       Option at a time when applicable laws,
                                       Company policies or an agreement
                                       between the Company and its underwriters
                                       prohibit a sale.

Notice of Sale:                        You must report to the Secretary of the
                                       Company any disposition of the Shares
                                       acquired under this Option that is made
                                       within two (2) years from the Grant
                                       Date or within twelve (12) months from
                                       the date you acquired the Shares (the
                                       "Notice Period"). In addition, the
                                       Company may, at any time during the
                                       Notice Period, place a legend or legends
                                       on any certificate(s) for the Option
                                       Shares requesting the Company's transfer
                                       agent to notify the Company of any
                                       transfer of the Shares.

Miscellaneous:                         -    This Stock Option Award may be
                                            amended only by written consent
                                            signed by you and the Company,
                                            except to the extent the amendment
                                            is not to your detriment or the
                                            Committee deems it necessary to
                                            comply with any applicable law or
                                            listing requirement of any principal
                                            securities exchange or market on
                                            which the Company's common stock is
                                            then traded, or to preserve
                                            favorable accounting treatment of
                                            the Option for the Company.

                                       -    As a condition of the granting of
                                            the Option, you agree, for
                                            yourself and your legal
                                            representatives or guardians, that
                                            this Stock Option Award shall be
                                            interpreted by the Committee and
                                            that any interpretation by the
                                            Committee of the terms of this Stock
                                            Option Award and any determination
                                            made by the Committee pursuant to
                                            this Stock Option Award shall be
                                            final, binding and conclusive.

                                       -    This Stock Option Award may be
                                            executed in counterparts.
</TABLE>

                                       3
<PAGE>

The Option is granted under and governed by the terms and conditions of the
Plan. Additional provisions regarding your Option and definitions of capitalized
terms used and not defined in this Stock Option Award can be found in the Plan.

                                         MOLECULAR INSIGHT PHARMACEUTICALS, INC.

                                         By:
                                            ------------------------------------
                                               Authorized Officer

                              OPTIONEE'S ACCEPTANCE

BY SIGNING BELOW AND ACCEPTING THIS STOCK OPTION AWARD, YOU AGREE TO ALL OF THE
TERMS AND CONDITIONS DESCRIBED HEREIN AND IN THE PLAN, AND YOU ALSO ACKNOWLEDGE
RECEIPT OF THE PLAN IN ITS ENTIRETY AND THE SUMMARY OF THE PLAN, WHICH
CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES THAT HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MEETS THE REQUIREMENTS OF
SECTION 10(a) OF SAID ACT.

                                         ---------------------------------------
                                         Optionee Signature
                                         Print Name:
                                                    ----------------------------

                                       4

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