Document:

fusn-ex101_279.htm

 

Exhibit 10.1

EXECUTION COPY

AMENDMENT NO. 1 TO
ASSET PURCHASE AGREEMENT

This Amendment No. 1 to Asset Purchase Agreement (this “Amendment”), effective as of October 8, 2020 (the “Amendment Effective Date”), is entered into by and among Fusion Pharmaceuticals, Inc., a Canadian federal corporation with its principal place of business at 270 Longwood Road S., Hamilton, Ontario L8P 0A6 (“Purchaser”); Rainier Therapeutics, Inc., a Delaware corporation with its principal place of business at 500 Mercer Street, Suite C202, Seattle, Washington 98109 (“Seller”); and Fortis Advisors LLC, a Delaware limited liability company solely in its capacity as the representative for Seller for certain obligations (“Seller Representative”). Purchaser, Seller, and Seller Representative are referred to herein individually as a “Party” and collectively, as the “Parties”.

WHEREAS, the Parties previously executed that certain Asset Purchase Agreement, dated as of March 10, 2020 (the “Agreement”); and

WHEREAS, the Parties now desire to amend and restate certain provisions of the Agreement as set forth herein.

NOW, THEREFORE, in consideration of the mutual promises and undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

	
1.
	
Capitalized terms used herein and not otherwise defined shall have the meanings given to them in the Agreement.

	
2.
	
Escrow Terms.

	
 
	
a.
	
Clause (b) of Section 1.02 of the Agreement is hereby deleted and removed from the Agreement in its entirety.

	
 
	
b.
	
The final sentence of Section 5.02 of the Agreement is hereby amended and restated in its entirety as follows:

“Notwithstanding anything to the contrary in this Agreement, Purchaser shall have the right to a one-time reimbursement from Seller of any and all reasonable documented costs and expenses incurred by Purchaser prior to the Outside Date in connection with seeking or obtaining a grant of Request for Restoration of Priority Claim By Receiving Office Under 37 CFR §1.78 and 1.452, and under PCT Rule 26bis for PCT/US2020/020846 corresponding to U.S. non-provisional application 16/805,508 and claiming priority to U.S. provisional applications 62/812,929; 62/856,216; and 62/907,504; provided that such reimbursement shall only become due if the Signing Fee Second Tranche has been paid pursuant to Section 1.02 and shall not in any event exceed Two Hundred and Twenty Five Thousand Dollars ($225,000).”  

 

 

	
 
	
c.
	
Section 7.04(c) is hereby amended and restated in its entirety as follows:

“(c)If an indemnified party wishes to make an indemnification claim under this Article VII, such indemnified party shall, prior to 11:59 p.m. Eastern time of the last day of the survival period applicable to such indemnification claim, deliver a written notice (an “Indemnification Claim Notice”) to the indemnifying party (i) stating that an indemnified party has paid, incurred, suffered or sustained, or reasonably anticipates that it may pay, incur, suffer or sustain Losses, and (ii) specifying in reasonable detail the individual items of such Losses, the date each such item was paid, incurred, suffered or sustained, or the basis for such anticipated liability, and the nature of the misrepresentation, breach of warranty or covenant to which such item is related.  An indemnified party may update an Indemnification Claim Notice from time to time to reflect any new information discovered with respect to the claim set forth in such Indemnification Claim Notice.”

	
 
	
d.
	
Section 7.04(d) is hereby amended and restated in its entirety as follows:

“If the indemnifying party shall not object in writing within the 30-day period after receipt of an Indemnification Claim Notice by delivery of a written notice of objection containing a reasonably detailed description of the facts and circumstances supporting an objection to the applicable indemnification claim (an “Indemnification Claim Objection Notice”), such failure to so object shall be an irrevocable acknowledgment by the indemnifying party that the indemnified party is entitled to the full amount of the claim for Losses set forth in such Indemnification Claim Notice.  In the event that the indemnifying party delivers an Indemnification Claim Objection Notice within 30 days after its receipt of such Indemnification Claim Notice, the Seller Representative and Purchaser shall attempt in good faith to agree upon the rights of the respective parties with respect to each of such claims.”

	
 
	
e.
	
Section 7.08 of the Agreement is hereby deleted in its entirety and replaced with the following text:

“[INTENTIONALLY OMITTED]”

	
 
	
f.
	
The following defined terms are hereby deleted in their entirety from Section 9.07(b) of the Agreement:

“Escrow Agent”, “Escrow Agreement”, “Escrow Fund”.

	
 
	
g.
	
The definition of “Other Transaction Documents” in Section 9.07(b) of the Agreement is hereby amended and restated in its entirety as follows:

“Other Transaction Documents” means (i) the Bill of Sale and Assignment and Assumption Agreement, (ii) the Patent Assignment Agreement, and (iii) the BC Therapeutics Termination Agreement.

	
 
	
h.
	
Section 9.15 of the Agreement is hereby amended and restated in its entirety as follows:

“Seller Representative. The Seller hereby appoints Fortis Advisors LLC, a Delaware limited liability company, as the sole and exclusive representative of the Seller solely with respect to Article VII and the express obligations of the Seller Representative in Article I and acknowledge and agree that the Seller Representative has the authority to act on the 

 

 

Seller’s behalf with respect to the matters set forth therein, including giving and receiving all notices, communications and instructions to be given or received by the Seller and to take on the Seller’s behalf all actions necessary or appropriate in the judgment of the Seller Representative in connection with the Seller’s rights and obligations under Article VII and the express obligations of the Seller Representative in Article I.

	
 
	
i.
	
The Escrow Agreement included as Exhibit B to the Agreement is deleted in its entirety and replaced with the following text:

“[INTENTIONALLY OMITTED]”

	
3.
	
Section 5.01(b) of the Agreement is hereby amended and restated in its entirety as follows:

“(b)Seller shall do or cause to be done all things necessary to preserve, maintain and keep in full force and effect its corporate existence from and after the Closing until the date that is twelve (12) months after the Closing Date or as otherwise required for Seller to satisfy its obligations under this Agreement, and shall comply in all material respects with all Applicable Laws.

	
4.
	
The “Outside Date” as defined in the first sentence of Section 8.01 of the Agreement is hereby amended and restated to be the date that is eleven (11) months after the Closing Date.  For the avoidance of doubt, the Outside Date as amended herein is February 10, 2021.

	
5.
	
Section 7.04(b) is hereby amended to remove the text “(the “Release Date”)” found in the first sentence of 7.04(b).

	
6.
	
Purchaser agrees to pay or, if so requested, to reimburse Seller for all costs, fees and expenses associated with preparing and filing any Tax Returns that Seller is required to file as a result of the amendment of Section 5.01(b) and the definition of “Outside Date” of the Agreement pursuant to Sections 3 and 4 of this Amendment, which Tax Returns Seller would otherwise not be required to file had Section 5.01(b) of the Agreement not been so amended, including without limitation any Tax Returns of the Seller, with respect to the Program, the Product, or the Acquired Assets for the year 2020 or 2021 (or any portion thereof).

	
7.
	
Purchaser agrees to pay or, if so requested, to reimburse Seller, all reasonable attorneys’ fees which may be incurred by Seller in connection with entering this Amendment.

	
8.
	
Except as amended hereby, the Agreement shall remain in full force and effect.

	
9.
	
This Amendment shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to agreements made and to be performed entirely within such state, without regard to the conflicts of law principles of such state.

	
10.
	
This Amendment may be executed in counterparts, each of which shall be deemed an original, and both of which together shall constitute one and the same instrument.

[Remainder of page left intentionally blank]

 

 

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the Amendment Effective Date.

 

	
FUSION PHARMACEUTICALS INC.
	
 
	
RAINIER THERAPEUTICS, INC.

	
By:
	
 
	
/s/John Valliant
	
 
	
Date:
	
 
	
/s/Max Barker

	
Name:
	
 
	
John Valliant
	
 
	
Name:
	
 
	
Max Barker

	
Title:
	
 
	
CEO, Fusion Pharmaceuticals Inc.
	
 
	
Title:
	
 
	
President & Secretary

	
FORTIS ADVISORS LLC
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/Richard Fink
	
 
	
 
	
 
	
 

	
Name:
	
 
	
Richard Fink
	
 
	
 
	
 
	
 

	
Title:
	
 
	
Managing Directorplrx-ex101_224.htm

Exhibit 10.1

 

August 12, 2020 

 

Dear Mike:

We are very pleased to offer you the position of General Counsel & Corporate Secretary, at Pliant Therapeutics, Inc., a Delaware corporation (the “Company”), with an employment commencement date by October 1, 2020.  This letter outlines certain terms and conditions of your employment with the Company.  We would be delighted to answer any questions you may have.

You will report to the Bernard Coulie, President & CEO at Pliant.   You agree that you will devote your best efforts and your full business time to the business and affairs of the Company and its subsidiaries, and you will be expected to be present during regular business hours.  Your work location will be at the Company’s offices at 260 Littlefield Avenue, South San Francisco, CA 94080.  This is a full-time exempt position.

Base Salary.  We are offering you starting compensation at the annual salary of $360,000, less applicable withholdings and deductions.  Wages are paid semi‐monthly in accordance with the Company’s normal payroll procedures.  

Annual Cash Incentive Bonus.  Beginning with calendar year 2020, you will be eligible to receive an annual cash incentive bonus based upon the achievement of annual performance goals or objectives established and measured by the Compensation Committee (the “Committee”) of the Company’s Board of Directors (the “Board”) in its sole discretion.  You will have a target annual incentive bonus opportunity equal to 35% of your annual base salary, payable in accordance with the Company’s annual cash incentive bonus program, as may be amended from time to time.  Actual bonus awards may pay below or above your target opportunity, including a zero payout, based on your and the Company’s achievement of the applicable performance goals or objectives.  In order to earn a bonus for any particular calendar year of employment, you must remain employed by the Company through the date the bonus is paid.

Incentive Compensation.  In addition, if you decide to join the Company, subject to approval by the Board or the Committee, following the commencement of your employment, you will be granted an option to purchase 108,240 shares of the Company’s Common Stock at an exercise price per share equal to the fair market value per share of such Common Stock on the date of grant (the “Option”).  Twenty‐five percent (25%) of the shares subject to the Option shall vest on the one‐year anniversary of the commencement date of your employment (the “Vesting Commencement Date”), and 1/48th of the shares subject to the Option shall vest each month thereafter on the same day of the month as the Vesting Commencement Date (or if there is no corresponding day, on the last day of such month), subject to your continued service relationship 

 

PLIANT THERAPEUTICS | 260 Littlefield Ave. | SOUTH SAN FRANCISCO, CA 94080 PLIANTRX.COM

 

with the Company through each such date.  Your Option shall be subject to the terms and conditions of the Company’s 2020 Stock Option and Incentive Plan, as amended from time to time, and form of stock option agreement thereunder, which you will be required to sign as a condition to receiving the Option.  No right to any stock is earned or accrued until such time that Company Common Stock is delivered to you upon the exercise of the Option, nor does the Option confer any right to continue vesting, employment or other service relationship with the Company.

Employee Benefits.  You will be eligible to participate in the Company’s standard employee benefits including vacation, sick leave, medical, dental, life, 401(k), accidental life and dismemberment, and disability benefits, as in effect at the time of hire.  Certain participation costs for our employee benefit programs are borne by our employees.  Participation in our employee benefit programs is subject to the terms of the underlying plans and requirements established by the group insurance carriers.  The Company reserves the right to discontinue or amend its employee benefits, including group insurance programs, from time to time in its sole discretion. Participation in any benefit program is not to be regarded as assurance of continued employment or other service relationship with the Company for any particular period of time.

No conflicts.  By signing below, you agree that there is no lawful reason to prevent you from accepting a position with the Company.  We also ask that, if you have not already done so, you disclose to the Company any and all agreements relating to your prior employment that may affect your eligibility to be employed by the Company or limit the manner in which you may be employed by the Company.  It is the Company’s understanding that any such agreements will not prevent you from performing the duties of your position with the Company, and you represent that such is the case.

Company Policies.  As a Company employee, you will be expected to abide by the Company’s rules and policies which may change from time to time in accordance with applicable laws.  Such policies may include, without limitation, stock ownership guidelines, clawback policies, insider trading policies and policies regarding hedging or pledging of Company Common Stock.  

Confidential Information/Nondisclosure/Nonsolicitation of Employees.  As a condition of your employment with the Company, you will be required to sign the Company’s Confidential Information and Invention Assignment Agreement, a copy of which is enclosed (the “Confidentiality Agreement”).  For the avoidance of doubt, nothing contained in this letter or the Confidentiality Agreement limits your ability to report possible violations of law or regulation to, or file a charge or complaint with any federal, state or local governmental agency or commission (“Government Agencies”).  Further, nothing in this letter or the Confidentiality Agreement shall limit your ability under applicable law to (i) disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law, (ii) disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure or (iii) communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company.  

 

 

Dispute Resolution Arbitration.  As a condition of your employment, you must sign the enclosed Mutual Arbitration Agreement which you should carefully review.  Also enclosed are the related JAMS Rules.

At‐Will Employment.  Your employment is at will, which means that either you or the Company can terminate your employment with the Company at any time with or without notice and with or without cause.  Nothing in this letter or the Offer Package Documents (as defined below) shall be construed to alter the at‐will nature of your employment relationship with the Company.  In addition, nothing in this letter prohibits the Company from terminating or modifying any of its compensation or benefits programs at any time.  

Conditions to Employment.  The Company reserves the right to conduct background investigations and reference checks on all of its potential employees.  Your job offer, therefore, is contingent upon a clearance of such background investigations and reference checks.  For purposes of federal immigration law, you are required, as a condition of employment, to provide to the Company documentary evidence of your identity and eligibility for employment in the United States.  Such documentation must be provided to us within three (3) business days of your date of hire or our employment relationship with you may be terminated.

Severability.  Should any provision contained in this letter be held as invalid, illegal or unenforceable, such holding shall not affect the validity of the remainder of this letter, the balance of which shall continue to be binding upon the parties with any such modification to become a part hereof and treated as though originally set forth herein.

Enclosures.  The Confidentiality Agreement and the Mutual Arbitration Agreement are collectively referred to as the “Offer Package Documents.”

Acceptance of Offer.  To accept the Company’s offer of employment, please sign and date this letter in the space provided below and return it to me no later than seven (7) days after the date of this letter (the “Offer Deadline”) along with the Offer Package Documents.  A duplicate original of this letter is enclosed for your records.

Entire Agreement.  This letter, along with the Offer Package Documents, sets forth the terms of your employment with the Company and supersedes any prior representations or agreements including, but not limited to, any representations made during your recruitment, interviews or pre‐employment negotiations, whether written or oral.  This letter, including, but not limited to, its at‐will employment provision, may not be modified or amended except by a written agreement signed by you and the Company’s Chief Executive Officer.  This offer of employment will terminate if it is not accepted, signed and returned by the Offer Deadline.

We are excited by the prospect of your joining our team and our working together to promote you and the Company’s success. 

Sincerely,

/s/Bernard Coulie      

Bernard Coulie, M.D., Ph.D.

President and Chief Executive Officer

 

Agreed to and accepted:

Signature:  /s/ Mike Ouimette

Printed Name:  Mike Ouimette

Date:  8/17/2020

Enclosures:  Confidential Information and Invention Assignment Agreement; Mutual Arbitration Agreement; JAMS Rules; Executive Severance Document, Executive Severance Letter

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