Document:

Exhibit 10.8

ooprogyny ' ()   Smarter Fertility Benefits As of July 1, 2019 Peter Anevski 245 Fifth Avenue,   4th Floor New York, NY 10016 Re: Amended and Restated Employment Agreement   with Progyny, Inc. Dear Peter: This letter agreement (this   "Agreement") confirms the terms and conditions of your ongoing   employment with Progyny, Inc. ("Progyny" or the   "Company"), and replaces your previous employment letter dated   December 14, 2016, as previously amended on August 18, 2018 (the "Prior   Agreement"). This Agreement will be effective as of July 1, 2019 (the   "Effective Date). 1. Your Position; Salary; Bonus Eligibility. You will   continue to be employed on a full-time basis as President, Chief Financial   Officer and Chief Operating Officer, and based out of our facility located in   New York, New York. Effective July 1, 2019, your base salary shall increase   to $35,416.66 per month ($425,000.00 per year), subject to payroll deductions   ·and applicable withholdings, paid on the Company's regular payroll pay   dates. The Company may modify your compensation, position, duties and work   location from time to time in its discretion, subject to your rights, if   applicable, to severance as set forth herein. In the event of the termination   of your employment for any reason (whether at your request or the Company's   request), or your removal from your positions, you agree to promptly resign   from all positions you hold with the Company or any of its subsidiaries   (including any Board positions), effective no later than such termination or   removal date. Normal business hours are from 9:00 am to 6:00 pm, Monday   through Friday. As an exempt, salaried employee, you will continue to be   expected to work additional hours as required by the nature of your work   assignments. Throughout your employment with the Company, you shall continue   to devote your best efforts and substantially all of your business time and   attention to the business and affairs of the Company, and you agree that you   shall not have any other employment or consulting arrangements as long as you   work for the Company, other than as the Company may expressly agree in   writing. Notwithstanding your full-time business obligation to the Company,   you will continue to be permitted to participate on the boards of directors   of up to two non-competitive for-profit entities, and you may engage in civic   and not-· for-profit activities, so long as in any such case, such activities   do not interfere with the performance of your duties hereunder or present a   conflict of interest with the Company and that you have informed the Company   of the general nature of such activities and, as to any other boards of   directors, you provide advance written notice to the Company. Commencing with   the fiscal year ending on December 31, 2019 and thereafter, you will be   eligible to receive an annual discretionary performance and retention bonus   of up to a maximum of 75% of your annual salary, subject to payroll   deductions and applicable withholdings, and, if the Board adopts a bonus plan   applicable to Company executives, subject to the terms and conditions of such   plan. Whether you receive a bonus for any given year, and the amount of any   such bonus, will be determined by the Board in its good faith discretion   based upon the Company's and your achievement of objectives and milestones to   be determined on an annual basis by the . Board. Except as otherwise   specified in Section 5 of this 372509v3 

    

 

EXECUTION COPY   Agreement, (i) you must remain an active employee through the date of payment   of any such bonus in order to earn and receive that bonus and (ii) you will   not be eligible for, and will not earn, any bonus (including a prorated   bonus) if your employment terminates for any reason before the applicable   bonus payment date. 2. Stock Options. You have previously been granted   options to purchase shares of the Company's Common Stock, which are described   in Annex A (such options together with any other options that may be granted   to you in the future, shall collectively be referred to in this Agreement as   "Options") and shall continue in full force and effect in   accordance with their respective terms (including, without limitation, the   terms in Sections 5(b) and 5(c) below). 3. Benefits. You will continue to be   eligible to participate in the Company's employee benefit plans of general   application as they may exist from time to time, subject to any eligibility   requirements imposed by such plans. As a Company employee, you will continue   to accrue PTO pursuant to the Company's policies and procedures. The Company   reserves the right to change or otherwise modify, in its sole discretion, the   benefits offered to employees to conform to the Company's general policies as   they may be changed from time to time. 4. Confidentiality. As an employee of   the Company, you will continue to have access to certain confidential   information of the Company and you may, during the course of your employment,   develop certain information or inventions that will be the property of the   Company. To protect the interests ofthe Company, you will need to sign the   "Proprietary Information, Inventions and Non-Solicitation/Non­   Competition Agreement" in the form attached hereto as Exhibit A as a   condition to the effectiveness of this Agreement. We wish to impress upon you   that we do not want you to, and we hereby direct you not to, use or disclose   any confidential or proprietary material of any former employer in your work   for the Company, bring onto Company premises any unpublished documents or   property belonging to any former employer or other person to whom you have an   obligation of confidentiality, or violate any other obligations you may have   to any former employer or other third party. You agree that you have not, and   during the period that you render services to the Company, will not (i)   engage in any employment, business or activity that is in any way competitive   with the business or proposed business of the Company, or (ii) assist any   other person or organization in competing with the Company or in preparing to   engage in competition with the business or proposed business of the Company.   You represent that your signing of this Agreement and the Proprietary   Information, Inventions and Non-Solicitation/ Non-Competition Agreement and   your employment with the Company will not violate any agreement currently in   place between you and any current or past employers, or between you and any   other parties. S. AtW · ill Em plovment; Termination of Em plovment;   Severance. a. AtW· ill Employment. Your employment with the Company will be   "at will." You may terminate your employment with Company at any   time and for any reason whatsoever (or no reason) simply by notifying the   Company. Likewise, the Company may terminate your employment at any . time,   with or without Cause (as defined below) or advance notice. Your employment with   the Company may also be terminated due to your death or disability. Neither   the vesting of any option described in this Agreement (nor any other   provision of this Agreement or any other agreement between you and the   Company), nor your participation in any stock option, incentive bonus, or   other benefit program in the future, is to be regarded as assuring you of   continuing employment for any particular period of time. Your employment at­   will status can only be modified in a written agreement signed by you and by   a duly authorized officer of the Company (other than you). b. Termination   Without Cause or Resignation for Good Reason Not in Connection with an   Acquisition. In the event your employment with the Company (or its   subsidiaries) is terminated by the Company (or its subsidiaries) without   Cause or you resign for Good Reason (as defined below), in each case other   than during the Change of Control Severance Period (as defmed below), then 2 

    

 

EXECUTION COPY   provided such termination constitutes a "separation from service"   (as defined under Treasury Regulation Section 1.409A-1(h), without regard to   any alternative definition thereunder, a "Separation from   Service"), and provided that you remain in compliance with the terms of   this Agreement, the Company shall provide you with the following severance   benefits: (i) Severance Pay.The Company shall pay you, as severance, the   equivalent of twelve (12) months of your base salary in effect as of your   employment termination date, subject to standard payroll deductions and   withholdings. Subject to Section 7(a), this severance amount will be paid in   installments in the form of continuation of your base salary payments, paid   on the Company's ordinary payro11 dates, commencing on the Company's first regular   payroll date that is more than 60 days following such termination of your   employment (the "Starting Date"), and shall be for any accrued base   salary for the 60-day period plus the period from the 60th day until the   regular payroll pay date, if applicable, and all salary continuation payments   thereafter, if any, shall be made on the Company's regular payroll dates.   (ii) Bonus. The Company shall pay you your current year target bonus in   effect at the time of termination, prorated (based on completed months of   service) to the date of termination. Such amount will be paid on the Starting   Date. For any bonus amounts relating to the prior year, you will be eligible   to receive such bonus to the extent earned as determined by the Board or   Company in its sole discretion, payable on the Starting Date, or if not yet   determined, then within 60 days following such board of Company   determination. (iii) Health Insurance. Provided that you timely elect   continued coverage under COBRA, the Company shall pay your COBRA premiums to   continue your coverage (including coverage for eligible dependents, if   applicable) ("COBRA Premiums") through the period (the "COBRA   Premium Period'') starting on the date of your Separation from Service and   ending on the earliest to occur of: (i) the duration of the salary   continuation period set forth in Section 5(b)(i) above; (ii) the date you   become eligible for group health insurance coverage through a new employer;   and (iii) the date you cease to be eligible for COBRA continuation coverage for   any reason, including plan termination, subject to Section 7(a). In the event   you become covered under another employer's group health plan or otherwise   cease to be eligible for COBRA during the COBRA Premium Period, you must   immediately notify the Company of such event. Notwithstanding the foregoing,   if the Company determines, in its sole discretion, that it cannot pay the   COBRA Premiums without a substantial risk of violating applicable law   (including, without limitation, Section 2716 of the Public Health Service   Act), the Company instead shall pay to you, on the first day of each calendar   month, a fully taxable cash payment equal to the applicable COBRA premiums   for that month (including premiums for you and your eligible dependents who   have elected and remain enrolled in such COBRA coverage), subject to   applicable tax withholdings (such amount, the "Special Cash   Payment"), for the remainder of the COBRA Premium Period. You may, but   are not obligated to, use such Special Cash Payments toward the cost of COBRA   premiums. In the event the Company opts for the Special Cash Payments, then   on the thirtieth (30th) day following your Separation from Service, the   Company will make the first payment to you under this paragraph, in a lump   sum, equal to the aggregate Special Cash Payments that the Company would have   paid to you through such date had the Special Cash Payments commenced on the   first day of the first month following the Separation from Service through   such thirtieth (30m) day, with the balance of the Special Cash Payments paid   thereafter on the schedule described above, subject to Section ?(a). (iv)   Vesting Acceleration; Extension of time to Exercise.The vesting of any   then-unvested shares subject to the Options shall be accelerated in an amount   equal to twelve (12) months of vesting, up to the full vesting of the grant,   such that the accelerated vesting shares subject to the Options shall be   deemed immediately vested and exercisable as of your last day of employment.   Additionally, the Options shall be exercisable for twelve (12) months   following your last day of employment. In addition, if any other form of   equity compensation is awarded to you during your employment ("Other   Equity"), the vesting of any of the then-unvested equity that would have   vested over the following twelve months shall 3 

    

 

EXECUTION COPY   be accelerated and deemed vested on the date of termination and paid or   delivered in accordance with the award agreement, subject to Section 7(a). c.   Termination Without Cause or Resignation for Good Reason in Connection with   an Acquisition. In the event your employment with the Company (or its   subsidiaries) is terminated by the Company (or its subsidiaries) without   Cause, or you resign for Good Reason, in either case (x) during the period   (the "Change of Control Severance Period'') commencing with the date   that is one (1) month prior to the execution of a definitive agreement   governing an Acquisition (as defined below) and ending on the two (2) year   anniversary of the closing of the same Acquisition, or (y) within two (2)   years after the closing of any other Acquisition, then provided such   termination constitutes a Separation from Service, and provided that you   remain in compliance with the terms of this Agreement, the Company shall   provide you with the following severance benefits: (i) Severance Pay. The   Company shall pay you, as severance, the Severance Payments, under the terms   and conditions set forth in Section 5(b)(i) above. Bonus. The Company shall   pay you (A) your bonus for the year prior to (ii) the year of termination, to   the extent not previously paid, calculated under the terms and conditions set   forth in Section 5(b)(ii) above and (B) a pro rata portion of the bonus for   the year in which the termination occurs calculated under the terms and   conditions set forth in Section 5(b)(ii) above based on the number of days   worked in such year. Such payments to be made within sixty days of the date   of termination, subject to Section 7(a). Health Insurance. The Company shall   pay your COBRA Premiums or (iii) Special Cash Payment, as applicable, through   the COBRA Premium Period, under the terms and conditions set forth in Section   5(b)(iii)hove. (iv) Vesting Acceleration; Extension of time to Exercise.The   vesting of any then-unvested shares subject to the Options shall be   accelerated such that 100% of the shares subject to the Options shall be   deemed immediately vested and exercisable as of your last day of employment.   Additionally, the Options shall be exercisable for twelve (12) months   following your last day of employment. In addition, any Other Equity shall be   deemed 100% vested and paid or delivered in accordance with the applicable   award agreement, subject to Section 7(a). d. Resignation without Good Reason;   Termination for Cause; Death or Disability.If at any time the Company   terminates your employment for Cause, you resign your employment without Good   Reason, or your employment terminates upon your death or disability, then (i)   you will no longer vest in the Options or Other Equity, (ii) all payments of   compensation by the Company to you hereunder will terminate immediately   (except as to amounts already earned), and (iii) you will not be entitled to   any severance benefits (except as otherwise below related to Disability (as   defined in the applicable option plan)). In addition, you shall resign from   all positions and terminate any relationships as an employee, advisor,   officer or director with the Company and any of its affiliates (including   without limitation any subsidiaries), each effective on the date of   termination. Notwithstanding the foregoing, if your employment terminates as   a result of your Disability (as defined in the applicable option plan   pursuant to which your Option is granted), the Option shall be exercisable   for twelve (12) months following your last day of employment. 6. Conditions   to Receipt of Severance Benefits. The receipt of any severance benefits as   described in Section 5 above will be subject to and conditioned upon your   signing and not revoking a separation agreement and release of claims in a   form reasonably satisfactory to the Company (the "Separation Agreement')   within the time period specified therein, but in any event no later than   sixty (60) days following your Separation from Service date. No severance benefits   of any kind will be paid or 4 

    

 

EXECUTION COPY   provided until the Separation Agreement becomes effective. Pursuant to or in   connection with any termination of service to the Company, you shall also   resign from all positions and terminate any relationships as an employee,   advisor, officer or director with the Company and any of its affiliates   (including without limitation any subsidiaries), each effective on the date   of termination. For avoidance of doubt, under no circumstances will you   receive severance benefits under both Sections 5(b) and 5(c) herein. 7. Tax   Matters. a. It is intended that all of the severance benefits and other   payments payable under this Agreement satisfy, to the greatest extent   possible, the exemptions from the application of Code Section 409A provided   under Treasury Regulations 1.409A-l(b)(4), 1.409A-l(b)(5) and 1.409A-l(b)(9),   and this Agreement will be construed to the greatest extent possible as   consistent with those provisions, and to the extent no so exempt, this   Agreement (and any definitions hereunder) will be construed in a manner that   complies with Section 409A. For purposes of Code Section 409A (including,   without limitation, for purposes of Treasury . Regulation Section   1.409A-2(b)(2)(iii)), your right to receive any installment payments under   this Agreement (whether severance payments, reimbursements or otherwise)   shall be treated as a right to receive a series of separate payments and,   accordingly, each installment payment hereunder shall at all times be   considered a separate and distinct payment. Notwithstanding any provision to   the contrary in this Agreement, if you are deemed by the Company at the time   of your Separation from Service to be a "specified employee" for   purposes of Code Section 409A(a)(2)(B)(i), and if any of the payments upon Separation   from Service set forth herein and/or under any other agreement with the   Company are deemed to be "deferred compensation", then to the   extent delayed commencement of any portion of such payments is required in   order to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i)   and the related adverse taxation under Section 409A, such payments shall not   be provided to you prior to the earliest of (i) the expiration of the   six-month period measured from the date of your Separation from Service with   the Company, (ii) the date of your death or (iii) such earlier date as   permitted under Section 409A without the imposition of adverse taxation. Upon   the first business day following the expiration of such applicable Code   Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this   Paragraph shall be paid in a lump sum to you, and any remaining payments due   shall be paid as otherwise provided herein or in the applicable agreement. No   interest shall be due on any amounts so deferred. b. To the extent the   Parachute Payment Vote (as defined below) is permitted by the Regulations (as   defined below), and you agree to waive (as would be required under the   Regulations) the right to all or any portion of the payment or benefit you   would receive pursuant to an Acquisition as a result of the provisions of   this Agreement that would (i) constitute a "parachute payment"   within the meaning of Section 280G of the Code, and (ii) be subject to the   excise tax imposed by Section 4999 of the Code (the "At-Risk   Payments"), the Company shall use commercially reasonable efforts to   timely solicit stockholder approval of the At-Risk Payments (the   "Parachute Payment Vote") in accordance with the requirements of   Treasury Regulations § 1.2800-1, Q&A-7 or any successor thereto (the   "Regulations"). Excise Taxes. Notwithstanding any other provision   of this Agreement to the c. contrary, if any payment or benefit you would   receive from the Company under this Agreement or otherwise (including,   without limitation, any payment, benefit, entitlement or distribution paid or   provided by the person or entity effecting the change in control) in   connection with an Acquisition (the "Total Payments") (a)   constitute "parachute payments" within the meaning of Section 2800   of the Code, and (b) but for this Section 7(c), would be subject to the   excise tax imposed by Section 4999 of the Code, then you will be entitled to   receive either (i) the full amount of the Total Payments (taking into account   the full value of the equity awards), or (ii) a portion of the Total Payments   having a value equal to $1less than three (3) times your "base   amount" (as such term is defined in Section 280G(b)(3)(A) of the Code),   whichever of clauses (i) and (ii), after taking into account applicable   federal, state, and local income and employment taxes and the excise tax   imposed by Section 4999 of the Code, results in your receipt, on an after-tax   basis, of the greatest portion of the Total Payments. Any determination   required under this Section 7(c) shall be 5 

    

 

EXECUTION COPY   made in writing by the independent public accountants of the Company (the   "Accountants"), whose determination shall be conclusive and binding   for all purposes upon you and the Company. For purposes of making the   calculations required by this Section 7(c), the Accountants may make   reasonable assumptions and approximations concerning applicable taxes and may   rely on reasonable, good-faith interpretations concerning the application of   Sections 280G and 4999 of the Code. If there is a reduction pursuant to this   Section 7(c) of the Total Payments to be delivered to you, such reduction   shall occur in the following order: (i) any cash severance payable by   reference to your base salary or annual bonus, (ii) any other cash amount   payable to you, (iii) any benefit valued as a "parachute payment,"   and (iv) acceleration of vesting of any equity award. This Section 7(c) shall   not apply, however, to any payment or benefit if the application of Section   280G(b)(5) of the Code to such payment or benefit results in such payment or   benefit not constituting a parachute payment under Section 280G(b)(2). For   the avoidance of doubt, in the event additional Total Payments are made to   you after the application of the cutback in this Section 7(c), which   additional Total Payments result in the cutback no longer being applicable,   the Company shall pay you an additional amount equal to the value of the   Total Payments which were originally cutback. The Company shall determine at   the end of each calendar year whether any such restoration is necessary based   on additional Total Payments (if any) made during such calendar year, and   shall pay such restoration not later than March 15 of the following calendar   year. 8. Definitions. For purposes of this Agreement: "Acquisition"   means either of the following transactions: (i) a Deemed a. Liquidation Event   (as defined in the Company's Restated Certificate of Incorporation currently   in effect); or (ii) a sale by the Company's stockholders of outstanding   shares of the Company's capital stock in one transaction, or a series of   related transactions, representing a majority of voting power of the   Company's all then outstanding shares of capital stock; provided, however,   that if the holders of the Company's Preferred Stock waive treatment of any   such transaction as a "Liquidation Event" as permitted by the   Company's Restated Certificate of Incorporation currently in effect, such   transaction shall nonetheless be an Acquisition hereunder. Notwithstanding   the foregoing, upon the consummation of an initial public offering of the   Company's securities, the definition of "Acquisition" shall have   the same meaning as a "Change in Control" as defmed in the Progyny,   Inc. 2019 Equity Incentive Plan. "Cause" for your employment   termination will be deemed to exist at any time b. after the occurrence of   one of more of the following: (i) your commission of, conviction for, or   guilty plea to, a felony or crime involving moral turpitude; (ii) a willful   refusal by you to comply with the lawful, material and reasonable   instructions of the Company (or its subsidiaries), or to otherwise materially   perform your duties as lawfully and reasonably determined by the Company (or   its subsidiaries), in each case that is not cured by you (if such refusal is   of a type that is capable of being cured) within 15 days of written notice   being given to you of such refusal; (iii) any willful act or acts of   dishonesty undertaken by you and intended to result in your (or any other   person's) material gain or personal enrichment at the expense of the Company,   its subsidiaries or any of its or their customers, partners, affiliates, or   employees; (iv) any willful act of gross misconduct by you which is injurious   to the Company or its subsidiaries; or (v) any material breach by you of your   obligations under any agreement between you and the Company or its   subsidiaries, including without limitation this Agreement or your Proprietary   Information, Inventions and Non­ Solicitation/Non-Competition Agreement, that   is not cured by you (if such breach is of a type that is capable of being   cured) within 15 days of written notice being given to you of such breach.   "Good Reason" means the occurrence of any of the following without   your prior c. written consent: (i) a material reduction in your then-current   annual base salary; except for a reduction (not to exceed 10%) that is part   of a proportional reduction of the base salaries of all Company executives;   (ii) relocation of your principal place of employment to a place that   increases your one-way commute by more than thirty (30) miles as compared to   your then-current principal place of employment immediately prior to such   relocation; or (iii) a material and adverse change in your duties and   responsibilities (it being agreed 6 

    

 

EXECUTION COPY   that (A) a change in duties and responsibilities following an Acquisition   that is inherent in the Company becoming a part of a larger business   organization or (B) your no longer serving as Chief Financial Officer or   performing the duties or responsibilities associated with such position,   whether or not in connection with an Acquisition, shall not constitute a   material adverse change); provided, however, that a resignation by you shall   not be considered to be for a "Good Reason" under this agreement unless   (i) you provide written notice to the Company of the occurrence of the event   which you contend constitutes Good Reason within thirty (30) days after the   date such event occurs, which notice states your intention to resign for a   "Good Reason" under this Agreement as a result thereof, (ii) the   Company does not effect a cure with respect to such event within thirty (30)   days after receipt of such written notice, and (iii) you thereafter resign   and cease to perform services as an employee of the Company within ten (10)   days after the expiration of the Company's cure period. Good Reason shall   also include you resigning from all Company positions for any reason during   the Change of Control Severance Period but no earlier than nine months after   an Acquisition. You agree to provide 60 days prior written notice to the   Company of your decision to resign pursuant to this provision. Arbitration.   As a condition of your ongoing employment with Company, you and the 9.   Company agree to submit to mandatory final, binding and confidential   arbitration any and all disputes, claims or controversies arising out of,   related to or connected with your employment with the Company, including, but   not limited to, claims of discrimination, harassment, unpaid wages, breach of   contract (express or implied), wrongful termination, torts, claims for stock   or stock options, as well as claims based upon any federal, state or local   ordinance, statute, regulation or constitutional provision, including, but   not limited to, the Age Discrimination in Employment Act, 29 U.S.C. § 621, et   seq., the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1001,   et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, et   seq., and 42 U.S.C. § 1981, and any and all state or local laws prohibiting   discrimination or regulating any terms or conditions of employment   "Arbitrable Claims"). Arbitration shall be the exclusive method by   which to resolve all Arbitrable Claims and shall be final and binding upon   the parties. BY AGREEING TO TillS ARBITRATION PROCEDURE, YOU AND TilE COMPANY   HEREBY WANE ANY RIGHTS EITIIER MAY HAVE TO TRIAL BY JURY IN REGARD TO   ARBITRABLE CLAIMS. The arbitration shall be conducted pursuant to the Federal   Arbitration Act, 9 U.S.C. § 1-16, and to the fullest extent permitted by law,   in New York, New York by a single arbitrator conducted by JAMS, Inc.   ("JAMS") under the then-applicable JAMS rules (which can be found   at http://www.jamsadr.com/rulesclauses). In addition, all claims, disputes,   or causes of action under this section, whether by you or the Company, must   be brought in an individual capacity, and shall not be brought as a plaintiff   (or claimant) or class member in any purported class or representative   proceeding, nor joined or consolidated with the claims of any other person or   entity. The Arbitrator may not consolidate the claims of more than one person   or entity, and may not preside over any form of representative or class   proceeding. To the extent that the preceding sentences regarding class claims   or proceedings are found to violate applicable law or are otherwise found   unenforceable, any claim(s) alleged or brought on behalf of a class shall   proceed in a court of law rather than by arbitration. In any arbitration   proceeding, you will have the right to be represented by legal counsel at   your own expense (subject to applicable law requiring that the Company pay   the fees and/or costs of your legal counsel). The arbitrator shall: (a) have   the authority to compel adequate discovery for the resolution of the dispute   and to award such relief as would otherwise be available under applicable law   in a court proceeding; and (b) issue a written statement signed by the   arbitrator regarding the disposition of each claim and the relief, if any,   awarded as to each claim, the reasons for the award, and the arbitrator's   essential fmdings and conclusions on which the award is based. The   arbitrator, and not a court, shall also be authorized to determine whether   the provisions of this paragraph apply to a dispute, controversy, or claim   sought to be resolved in accordance with these arbitration proceedings. The   Company shall pay all costs and fees in excess of the amount of court fees   that you would be required to incur if the dispute were filed or decided in a   court of law. Nothing in this Agreement is intended to prevent either you or   the Company from obtaining injunctive relief in court to prevent irreparable   harm pending the conclusion of any such arbitration. 7 

    

 

EXECUTION COPY   10. Entire Agreement. This Agreement, together with the Proprietary   Information, Inventions and Non-Solicitation/Non-Competition Agreement and   the equity documentation referred to herein, will form the complete and   exclusive statement of your employment agreement with the Company. It supersedes   any other agreements or promises with respect to your employment made to you   by anyone, whether oral or written, and other than those changes expressly   reserved to the Company's discretion in this letter, this letter can only be   modified in a written agreement signed by you and a duly authorized officer   of the Company. 8 

    

 

EXECUTION COPY   11. Acceptance. To indicate your acceptance of this Agreement, please sign   and date this Agreement and the Proprietary Information, Inventions and   Non-Solicitation/Non-Competition Agreement and return the signed copies to   me. Very truly yours, PROGYNY, INC. I have read and underst forth above. this   Agreement and hereby acknowledge, accept and agree to the terms as set q /'5   / 1 DATE 9 

    

 

progyny Smarter   Fertility Benefits oOo. () EXIDBITA NON-DISCLOSURE AND NON-COMPETE AGREEMENT   In consideration of my employment or continued employment by Progyny, Inc.,   its subsidiaries, parents, affiliates, predecessors, successors and assigns   (together, the "Company") and the compensation now and hereafter   paid to me, I hereby enter into this Non-Disclosure and Non-Compete Agreement   (the "Agreement") and agree as follows: improvements, discoveries,   developments, designs and techniques and any other proprietary technology,   patents, copyrights, trademarks, and other intellectual 1. NONDISCLOSURE. 1.1   Recognition of Company's Rights; Nondisclosure. I understand and acknowledge   that my employment by the Company creates a relationship of confidence and   trust with respect to the Company's Proprietary Information (defined below)   and that the Company has a protectable interest therein. At all times during   my employment and thereafter, I will hold in strictest confidence and will   not disclose, use, lecture upon or publish any of the Company's Proprietary   Information, except as such disclosure, use or publication may be required in   connection with my work for the Company, or unless an officer of the Company   expressly authorizes such in writing. I will obtain the Company's written   approval before publishing or submitting for publication any material (written,   verbal, or otherwise) that relates to my work at the Company and/or   incorporates any Proprietary Information. I hereby assign to the Company any   rights I may have or acquire in such Proprietary Information and recognize   that all Proprietary Information shall be the sole property of the Company   and its assigns. I will take all reasonable precautions to prevent the   inadvertent or accidental disclosure of Proprietary Information. property;   (b) information regarding research, development, new products, marketing and   selling, business plans, budgets and unpublished financial statements,   licenses, prices and costs, margins, discounts, credit terms, pricing and   billing policies, quoting procedures, methods of obtaining business,   forecasts, future plans and potential strategies, financial projections and   business strategies, operational plans, financing and capital-raising plans,   activities and agreements, internal services and operational manuals, methods   of conducting Company business, suppliers and supplier information, and   purchasing; (c) information regarding customers and potential customers of   the Company, including customer lists, names, representatives, their needs or   desires with respect to the types of products or services offered by the   Company, proposals, bids, contracts and their contents and parties, the type   and quantity of products and services provided or sought to be provided to   customers and potential customers of the Company and other non-public   information relating to customers and potential customers; (d) information   regarding any of the Company's business partners and their services,   including names; representatives, proposals, bids, contracts and their   contents and parties, the type and quantity of products and services received   by the Company, and other non-public information relating 12 Proprietary   Information. The term "Proprietary Information" shall mean any and   all confidential and/or proprietary knowledge, data or information of the   Company, its afflliates, parents and subsidiaries, whether having existed,   now existing, or to be developed during my employment. By way of to business   partners; personnel, employee employee skills; and (e) information regarding   lists, compensation, and (f) any other non-public illustration but not limitation,   "Proprietary information which a competitor of the Company could use to   the competitive disadvantage of the Company. Notwithstanding the foregoing,   it is understood that, at Information" includes (a) trade secrets,   inventions, ideas, processes, formulas, source and object codes, data,   programs, other works of authorship, know-how, 

    

 

oOo. progyny   all such times, I am free to use information which is generally known in the   trade or industry through no breach of this agreement or other act or   omission by me; I am free to disclose information to the U.S. Securities and   Exchange Commission (the "SEC") pursuant to its governmental   authority; I am free to disclose information as otherwise required · by   applicable law, rule or regulation; and I am free to discuss the terms and   conditions of my employment with others to the extent permitted by law.   consented to in writing by that former employer or person. 2. DUTY OF LOYALTY   DURING EMPLOYMENT. I agree that during the period of my employment by the   Company I will not, without the Company's express written consent, directly   or indirectly engage in any employment or business activity which is directly   or indirectly competitive with, or would otherwise conflict with, my   employment by the Company. 1.3 Third Party lnfonnation. I 3. NO SOLICITATION   OF EMPLOYEES, understand, in addition, that the Company has received and in   the future will receive from third parties their confidential and/or   proprietary knowledge, data, or information ("Third Party Infonnation").   During my employment and thereafter, I will hold Third Party Information in   the strictest confidence and will not disclose to anyone (other than Company   personnel who need to know such information in connection with their work for   the Company) or use, except in connection with my work for the Company, Third   Party Information unless expressly authorized by an officer of the Company in   writing. CONSULTANTS, CONTRACI'ORS, OR CUSTOMERS OR POTENTIAL CUSTOMERS. I   agree that during the period of my employment and for the one (1) year period   after the date my employment ends for any reason, including but not limited   to voluntary termination by me or involuntary termination by the Company, I   will not, as an officer, director, employee, consultant, owner, partner, or   in any other capacity, either directly or through others, except on behalf of   the Company: 3.1 solicit, .induce, encourage, or participate in soliciting,   inducing, or encouraging any employee of the Company to terminate his or her   relationship with the Company; 1.4 Tenn of Nondisclosure Restrictions. I   understand that Proprietary Information and Third Party Information is not to   be used or disclosed by me, except as provided in this Section 1. If,   however, a court or authorized governmental agency decides that this Section   1 or any of its provisions is unenforceable for lack of reasonable temporal   limitation and the Agreement or its restriction(s) cannot otherwise be   enforced, I agree and the Company agrees that the two (2) year period after   the date my employment ends shall be the temporal limitation relevant to the   contested restriction, provided, however, that this sentence shall not apply   to trade secrets protected without temporal limitation under applicable law.   3.2 hire, employ, or engage in business with or attempt to hire, employ, or   engage in business with any person employed by the Company or who has left   the employment of the Company within the preceding three (3) months or   discuss any potential employment or business association with such person,   even if I did not initiate the discussion or seek out the contact; or 3.3   solicit, induce or attempt to induce any Customer or Potential Customer, or   any consultant or independent contractor with whom I had direct or indirect   contact or whose identity I learned as a result of my employment with the   Company, to terminate, diminish, or materially alter in a manner harmful to   the Company its relationship with the Company. 1.5 No Improper Use of   lnfonnation of Prior Employers and Others. During my employment by the   Company I will not improperly use or disclose any confidential information or   trade secrets, if any, of any former employer or any other person to whom I   have an obligation of confidentiality, and I will not bring onto the premises   of the Company any unpublished documents or any property belonging to any   former employer or any other person to whom I have an obligation of   confidentiality unless The parties agree that for purposes of this Agreement,   a "Customer or Potential Customer" is any person or entity who or   which, at any time during the one (1) year prior to the date my employment   with the Company ends, (i) contracted for, was billed for, or received from   the Company any product, service or 

    

 

5.   REASONABLENESS OF REsTRICTIONS. process with which I worked directly or   indirectly during my employment by the Company or about which I acquired   Proprietary Information; or (ii) was in contact with me or in contact with   any other employee, owner, or agent ofthe Company, of which contact I was or   should have been aware, concerning any product, service or process with which   I worked directly or indirectly during my employment with the Company or   about which I acquired Proprietary Information; or (iii) was solicited by the   Company in an effort in which I was involved or of which I was or should have   been aware. 5.1 I agree that I have read this entire Agreement and understand   it. I agree that this Agreement does not prevent me from earning a living or   pursuing my career. I agree that the restrictions contained in this Agreement   are reasonable, proper, and necessitated by the Company's legitimate business   interests. I represent and agree that I am entering into this Agreement   freely and with knowledge of its contents with the intent to be bound by the   Agreement and the restrictions contained in it. 4. NON-COMPETE PROVISION.I   agree that 5.2 In the event that a court or authorized governmental agency   finds this Agreement, or any of its restrictions, to be ambiguous,   unenforceable, or invalid, I and the Company agree that the court or such   agency shall . read the Agreement as a whole and interpret the restriction(s)   at issue to be enforceable and valid to the maximum extent allowed by law.   during the period of my employment and for the one (1) year period after the   date my employment ends for any reason, including but not limited to   voluntary termination by me or involuntary termination by the Company, I will   not within the United States or any other geographic region in which the   Company conducts its business, and in any capacity, whether individually or   as an employee, consultant, director, officer, agent, advisor or otherwise   for or on behalf of any. entity (a "Competing Organization") engage   in any business activities that are competitive with the products or services   offered or being provided by the Company or being actively developed by the   Company during my employment. Notwithstanding the foregoing, this restriction   under Section 4 shall not apply if my duties at such Competing Organization   do not relate to the development, marketing or sale (or related strategies)   of any product or service offered or provided by the Company or being   actively developed by the Company; provided that I have delivered to the   Company a written statement, confirmed by my prospective employer or   consulting client, as the case may be, describing my duties and stating that   such duties are consistent with my obligations under this Agreement. If any   court or governmental agency of competent jurisdiction shall at any time deem   the duration or the geographic scope of any of the provisions of this Section   4 unenforceable, the other provisions of this Section 4 shall nevertheless   stand, and the duration and/or geographic scope set forth herein shall be   deemed to be the longest period and/or greatest size permissible by. law   under the circumstances, and the parties hereto agree that such court shall   reduce the time period and/or geographic scope to permissible duration or   size. 6. NO CONFLICTING AGREEMENT OR OBLIGATION. I represent that my   performance of all the terms of this Agreement and as an employee of the   Company does not and will not breach any agreement to keep in confidence   information acquired by me in confidence or in trust prior to my employment   by the Company. I have not entered into, and I agree I will not enter into,   any agreement either written or oral in conflict herewith. 7.   RETURNOFCOMPANYPROPERTY. Whenlleave the employ of the Company, I will deliver   to the Company any and all drawings, notes, memoranda, and documents,   together with all copies thereof, and any other material containing or   disclosing any Third Party Information or Proprietary Information of the   Company. I further agree that any property situated on the Company's premises   and owned by the Company, including disks and other storage media, filing   cabinets or other work areas, is subject to inspection by Company personnel   at any time with or without notice. Prior to leaving, I will cooperate with   the Company in completing and signing the Company's termination statement if   requested to do so by the Company. 

    

 

o(O). progyny   Stnarttt ttrt ··tv Btnet:a 8. LEGAL AND EQUITABLE REMEDIES. 10.2 I agree to   inform the· Company of all employment and business ventures which I enter   into while the restrictions described in Section 5 and 6 of this Agreement   are in effect and I also authorize the Company to provide copies of this   Agreement to my employer, partner, co-owner and/or others involved in   managing the business with which I am employed or associated and to make such   persons aware of my obligations under this Agreement. 8.1 I agree that it may   be impossible to assess the damages caused by my violation of this Agreement   or any of its terms. I agree that any threatened or actual violation of this   Agreement or any of its terms will constitute immediate and irreparable injury   to the Company and the Company shall have the right to enforce this Agreement   and any of its provisions by injunction, specific performance or other   equitable relief, without bond and without prejudice to any other rights and   remedies that the Company may have for a breach or threatened breach of this   Agreement. 11. GENERAL PROVISIONS. 11.1 Governing Law; Consent to Personal   Jurisdiction. This Agreement will be governed by and construed according to   the laws of the State of New York as such laws are applied to agreements   entered into and to be performed entirely within New York between New York   residents. I hereby expressly consent to the personal jurisdiction and venue   of the state and federal courts located in the State of New York for any   lawsuit filed there against me by Company arising from or related to this   Agreement. 8.2 I agree that if the Company is successful in whole or in part   in any legal or equitable action against me under this Agreement, the Company   shall be entitled to payment of all costs, including reasonable attorney's   fees, from me. 8.3 In the event the Company enforces this Agreement through a   court order, I agree that the restrictions of Section 5 and 6 shall remain in   effect for a period of twelve (12) months from the effective date of the   Order enforcing the Agreement. 11.2 Acknowledgement of Securities Laws. I am   aware of and acknowledge the restrictions imposed by the securities laws of   the United States on the purchase or sale of securities by any person who has   received material, nonpublic information from the issuer of such securities   and on the communication of such information to any other person when it is   reasonably foreseeable that such other person is likely to purchase or sell   such securities in reliance upon such information. 9. NOTICES. Any notices   required or permitted hereunder shall be given to the appropriate party at   the address specified below or at such other address as the party shall   specify in writing. Such notice shall be deemed given upon personal delivery to   the appropriate address or if sent by certified or registered mail, three (3)   days after the date of mailing. 10. PuBLICATIONOF Tms AGREEMENT TO SUBSEQUENT   EMPLOYERS OR BUSINESS AsSOCIATES OF EMPLOYEE. 10.1 If I am offered employment   or the opportunity to enter into any business venture as owner, partner,   consultant or other capacity while the restrictions described in Section 5   and 6 of this Agreement are in effect I agree to inform my potential   employer, partner, co-owner and/or others involved in managing the business   with which I have an opportunity to be associated of my obligations under   this Agreement and also agree to provide such person or persons with a copy   of this Agreement. 

    

 

oOo. 0 progyny   11.3 Severability. In case any one or more of the provisions, subsections, or   sentences contained in this Agreement shall, for any reason, be held to be   invalid, illegal or unenforceable in any respect, such invalidity, illegality   or unenforceability shall not affect the other provisions of this Agreement,   and this Agreement shall be construed as if such invalid, illegal or   unenforceable provision had never been contained herein. If moreover, any one   or more of the provisions contained in this Agreement shall for any reason be   held to be excessively broad as to duration, geographical scope, activity or   subject, it shall be construed by limiting and reducing it, so as to be   enforceable to the extent compatible with the applicable law as it shall then   appear. 11.7 Waiver. NowaiverbytheCompanyof any breach of this Agreement   shall be a waiver of any preceding or succeeding breach. No waiver by the   Company of any right under this Agreement shall be construed as a waiver of   any other right. The Company shall not be required to give notice to enforce   strict adherence to all terms of this Agreement. 11.8 Advice ofCounsel. I   ACKNOWLEDGETHAT, IN EXECUTING miS AGREEMENT, I HAVE HAD THE OPPORTUNITY TO   SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL, AND I HAVE READ AND UNDERSTOOD   ALL OF mE TERMS AND PROVISIONS OF miS AGREEMENT. miS AGREEMENT SHALL NOT BE   CONSTRUED AGAINST ANY PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF.   11.4 Successors and Assigns. This Agreement is for my benefit and the benefit   of the Company, its successors, assigns, parent corporations, subsidiaries,   affiliates, and purchasers, and will be binding upon my heirs, executors,   administrators and other legal representatives. Entire Agreement. The   obligations pursuant to Sections 1 of this Agreement shall apply to any time   during which I was previously engaged, or am in the future engaged, by the   Company as a consultant if no 11.5 Survival. The provisions of Agreement   shall survive the termination of employment, regardless of the reason, and   this my the other agreement governs nondisclosureand assignment of inventions   during such period. This Agreement is the fmal, complete and exclusive   agreement of the parties with respect to the subject matter hereof and   supersedes and merges all prior assignment of this Agreement by the Company   to any successor in interest or other assignee. discussions between us. No   modification of or 11.6 Employment At-Will. I agree and understand that   nothing in this Agreement shall change my at-will employment status or confer   any right with respect to continuation of employment by the Company, nor   shall it interfere in any way with my right or the Company's right to   terminate my employment at any time, with or without cause or advance notice.   amendment to this Agreement, nor any waiver of any rights under this Agreement,   will be effective unless in writing and signed by the party to be charged.   Any subsequent change or changes in my duties, salary or compensation will   not affect the validity or scope of this Agreement. 

    

 

oO.o. ()   progyny Smarter Fertility Benefits This Agreement shall be effective as of   the first day of my provision of services to the Company. I HAVE READ THIS   AGREEME (Signature) (Printed Name) 9/d.S/11 (Date) I;)...S I I AccEPrED AND   AGREED To AS OF PROGYNY, INC.Exhibit 10.9

 

 

May 23, 2019

As amended on June 3, 2019

 

Karin Ajmani

 

Dear Karin:

 

This letter agreement (“Agreement”) confirms the terms and conditions of your ongoing employment with Progyny, Inc. (“Progyny” or the “Company”), and replaces your previous employment letter dated June 11, 2015 (the “Prior Agreement”). This Agreement will be effective on June 10, 2019 (the “Effective Date”), subject to your execution of it and the Non-Disclosure and Non-Compete Agreement further described below.

 

1.              Position. Your new position will be EVP, Chief of Strategic Development, beginning Monday, June 10, 2019 and you will continue to report to David Schlanger, Chief Executive Officer. Your principal place of employment will continue to be Progyny’s New York City office.

 

2.              Compensation and Benefits: As an employee of Progyny you will receive the following compensation and benefits:

 

Base Salary. Your annual base salary will continue to be $325,000, less applicable deductions authorized by you and required by law, which will be paid in accordance with the Company’s normal payroll practices. The Company, in its sole judgement and discretion, may modify your salary upon periodic review.

 

Variable Compensation. You are eligible for an annual discretionary bonus up to a maximum of 50% of your base salary (the “Target Bonus”) beginning in 2019. In order to receive the Target Bonus or any portion of the Target Bonus, you must achieve certain individual performance goals, Progyny must achieve certain performance targets, and you must be employed with the Company on the date the bonus is paid. The actual amount of your annual bonus will be determined by the Company or its Board of Directors (the “Board”) in its sole discretion.

 

Stock Options. Subject to approval by the Board, on or before June 15, 2019, you will be granted an option to purchase an additional 750,000 shares of the Company’s Common Stock at an exercise price per share equal to the fair market value of the Common Stock on the grant date, as determined by the Board in its reasonable discretion. Subject to your continuing to be an employee, this option will vest over the four-year period following the grant date, with 25% vesting on the twelve (12) month anniversary of the grant date and the remainder vesting monthly over the following 36 months, and will be subject to the grant agreement and the Company’s standard terms and conditions under its option plan.

 

Employee Benefits. You will continue to be eligible to participate in the Company’s employee benefit plans as they may exist from time to time, including its health and welfare and paid time off benefits. The Company reserves the right to modify or terminate its employee benefit plans, in whole or in part, at any time in its sole discretion.

 

 

3.              Non-Disclosure and Non-Compete Agreement. As an employee of the Company, you will continue to have access to certain confidential information of the Company and you may, during the course of your employment, develop certain information or inventions that will be the property of the Company. To protect the interests of the Company, you will need to sign the Company’s standard “Non-Disclosure and Non-Compete Agreement in the form attached hereto as Exhibit A as a condition of your ongoing employment.

 

4.              At-Will Employment. Your employment with the Company is “at will”, which means that it is for no specified term or duration. You may terminate your employment with Company at any time and for any reason whatsoever simply by notifying the Company, subject to the notice provisions required to resign for Good Reason (as defined below). Likewise, the Company may terminate your employment at any time, with or without Cause (as defined below) or advance notice, subject to the consequences set forth in Section 5. Neither the vesting of the option described in this Agreement (nor any other provision of this Agreement or any other agreement between you and the Company), nor your participation in any stock option, incentive bonus, or other benefit program in the future, is to be regarded as assuring you of continuing employment for any particular period of time. Your employment at-will status can only be modified in a written agreement signed by you and by an officer of Progyny.

 

5.              Termination of Employment; Severance.

 

a.              Termination Without Cause or Resignation for Good Reason. In the event your employment with the Company (or its subsidiaries) is terminated by the Company (or its subsidiaries) without Cause or you resign for Good Reason, then provided such termination constitutes a “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “Separation from Service”), and provided that you remain in compliance with the terms of this Agreement (including, without limitation, the Non-Disclosure and Non-Compete Agreement), the Company shall provide you with the following severance payments and benefits:

 

i.                 Severance Pay. The Company shall pay you, as severance, the equivalent of twelve (12) months of your base salary in effect as of your employment termination date, subject to standard payroll deductions and withholdings. This severance amount will be paid in equal installments in the form of continuation of your base salary payments, paid on the Company’s ordinary payroll dates, commencing on the Company’s first regular payroll date that is 60 days following such termination of your employment (the “Starting Date”), with the first payment of severance to include any accrued base salary from the Starting Date until the first payment of severance. All salary continuation payments thereafter shall be made on the Company’s regular payroll dates.

 

ii.             Bonus. The Company shall pay you your then current year Target Bonus in effect at the time of termination, prorated to the date of termination. Such amount will be paid on the Starting Date. For any bonus amounts relating to the prior year which have not yet been paid, you will receive such bonus as determined by the Board or Company in its sole discretion, payable on the Starting Date, or if not yet determined, on the later of: (i) the date other executives receive their bonus; and (ii) the Starting Date; but in no event later than June 30th of the year of termination of employment.

 

iii.         Vesting Acceleration. Any unvested options held by you as of the date of your termination that would have vested through the twelve (12) month anniversary of your termination date shall be accelerated and deemed immediately vested and exercisable as of your last day of employment; provided, however that in the event that your employment is terminated by the Company without Cause or you resign for Good Reason on or within twelve (12) months

 

 

following an Acquisition (as defined below), all of the unvested options held by you will be 100% vested and exercisable as of the date of your last day of employment. Any incentive stock options will be treated in accordance with the applicable grant agreements and plan document (but in no event less favorably than as set forth herein).

 

iv.          Post Termination Exercise of Options. The period during which your vested non-qualified stock options (including those vested in accordance with Section 5(a)(iii) above) will remain outstanding and exercisable that, as of the date of grant, were non-qualified stock options, or portions of grants that were, as of the date of grant, non-qualified stock options, may be exercised will be extended to and expire upon the six-month anniversary of your employment termination date. Under no circumstance will this provision extend the period of exercise beyond the contractual term of the applicable options, nor will such extension apply to any incentive stock options.

 

v.              Health Insurance. Provided that you timely elect continued coverage under COBRA, the Company shall pay your COBRA premiums to continue your coverage (including coverage for eligible dependents, if applicable) (“COBRA Premiums”) through the period (the “COBRA Premium Period”) starting on the date of your termination of employment and ending on the earliest to occur of: (i) the duration of the salary continuation period set forth in Section (a)(i) above; (ii) the date you become eligible for group health insurance coverage through a new employer with whom you become associated; and (iii) the date you cease to be eligible for COBRA continuation coverage for any reason, including plan termination. In the event you become covered under another employer’s group health plan or otherwise cease to be eligible for COBRA during the COBRA Premium Period, you must immediately notify the Company of such event. Notwithstanding the foregoing, if the Company determines, in its sole discretion, that it cannot pay the COBRA Premiums without a substantial risk of violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company instead shall pay to you, on the first day of each calendar month, a fully taxable cash payment equal to the applicable COBRA premiums for that month (including premiums for you and your eligible dependents who have elected and remain enrolled in such COBRA coverage), subject to applicable tax withholdings (such amount, the “Special Cash Payment”), for the remainder of the COBRA Premium Period. You may, but are not obligated to, use such Special Cash Payments toward the cost of COBRA premiums. In the event the Company opts for the Special Cash Payments, then on the thirtieth (30th) day following your termination of employment, the Company will make the first payment to you under this paragraph, in a lump sum, equal to the aggregate Special Cash Payments that the Company would have paid to you through such date had the Special Cash Payments commenced on the first day of the first month following your termination date through such thirtieth (30th) day, with the balance of the Special Cash Payments paid thereafter on the schedule described above.

 

b.              Resignation without Good Reason; Termination for Cause; Death or Disability. If at any time the Company terminates your employment for Cause, you resign your employment without Good Reason, or your employment terminates upon your death or disability, then (i) you will no longer vest in the option referenced in Section 2 above, the prior option granted to you in connection with the commencement of your employment, or any other stock option or other equity incentive otherwise held by you, (ii) all payments of compensation by the Company to you hereunder will terminate immediately (except as to amounts already earned), and (iii) you will not be entitled to any severance benefits. In addition, you shall resign from all positions and terminate any relationships as an employee, advisor, officer or director with the Company and any of its affiliates (including without limitation any subsidiaries), each effective on the date of termination.

 

 

c.               Conditions to Receipt of Severance Benefits. The receipt of any severance benefits as described in Section a. above will be subject to and conditioned upon your signing (and not revoking, if such a right is afforded to you) a separation agreement and release of claims in a form reasonably satisfactory to the Company (the “Separation Agreement”) within the time period specified therein, but in any event no later than sixty (60) days following your termination date. The Separation Agreement shall not contain any post-employment non-competition or non-solicit or doing business restrictions (whether employee or client) more restrictive than any such provided in this Agreement or the Non-Disclosure and Non- Compete Agreement signed simultaneously with this Agreement. No severance benefits of any kind will be paid or provided until the Separation Agreement becomes effective. Pursuant to or in connection with any termination of employment with the Company, you shall also resign from all positions and terminate any relationships as an employee, advisor, officer or director with the Company and any of its affiliates (including without limitation any subsidiaries), each effective on the date of termination.

 

d.              Definitions. For purposes of this Agreement:

 

i.                 “Acquisition” means either of the following transactions: (i) a Deemed Liquidation Event (as defined in the Company’s Restated Certificate of Incorporation currently in effect); or (ii) a sale by the Company’s stockholders of outstanding shares of the Company’s capital stock in one transaction, or a series of related transactions, representing a majority of voting power of the Company’s all then outstanding shares of capital stock.

 

ii.             “Cause” for your employment termination will be deemed to exist at any time after the occurrence of one of more of the following: (i) your commission of, conviction for, or guilty plea to, a felony or crime involving moral turpitude; (ii) a willful refusal by you to comply with the lawful, material and reasonable instructions of the Company (or its subsidiaries), or to otherwise materially perform your duties as lawfully and reasonably determined by the Company (or its subsidiaries), in each case that is not cured by you (if such refusal is of a type that is capable of being cured) within 15 days of written notice being given to you of such refusal; (iii) any willful act or acts of dishonesty undertaken by you and intended to result in your (or any other person’s) material gain or personal enrichment at the expense of the Company, its subsidiaries or any of its or their customers, partners, affiliates, or employees; (iv) any willful and intentional act of gross misconduct by you which is injurious to the Company or its subsidiaries; or (v) any material breach by you of your obligations under any agreement between you and the Company or its subsidiaries, including without limitation this Agreement or your Non-Disclosure and Non-Compete Agreement, that is not cured by you (if such breach is of a type that is capable of being cured) within 15 days of written notice being given to you of such breach; (vi) or any material non-fulfillment of your primary role duties which is not cured by you (if such non-fulfillment is of a type that is capable of being cured) within 15 days of written notice being given to you of such non- fulfillment.

 

iii.         “Good Reason” means the occurrence of any of the following without your prior written consent: (i) a material reduction in your then-current annual base salary; except for a reduction (not to exceed 10%) that is part of a proportional reduction of the base salaries of all Company executives; (ii) relocation of your principal place of employment to a place that increases your one-way commute by more than thirty (30) miles as compared to your then- current principal place of employment immediately prior to such relocation; or (iii) a material and adverse change in your duties and responsibilities (it being agreed that a change in duties and responsibilities following an Acquisition shall not be an event of Good Reason); provided, however, that a resignation by you shall not be considered to be for a 

 

 

“Good Reason” under this Agreement unless: (1) you provide written notice to the Board of the occurrence of the event which you contend constitutes Good Reason within thirty (30) days after the date such event occurs, which notice states your intention to resign for a “Good Reason” under this Agreement as a result thereof, (2) the Company does not effect a cure with respect to such event within thirty (30) days after receipt of such written notice, and (3) you thereafter resign and cease to perform services as an employee of the Company within ten (10) days after the expiration of the Company’s cure period.

 

6.              Section 409A. It is intended that all of the severance payments and benefits, and all other payments payable under this Agreement, satisfy, to the greatest extent possible, the exemptions from the application of Code Section 409A provided under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9) (“collectively “Section 409A”), and this Agreement will be construed to the greatest extent possible as consistent with those provisions, and to the extent no so exempt, this Agreement (and any definitions hereunder) will be construed in a manner that complies with Section 409A. For purposes of Code Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), your right to receive any installment payments under this letter agreement (whether severance payments, reimbursements or otherwise) shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment. Notwithstanding any provision to the contrary in this Agreement, if you are deemed by the Company at the time of your Separation from Service to be a “specified employee” for purposes of Code Section 409A(a)(2)(B)(i), and if any of the payments upon Separation from Service set forth herein and/or under any other agreement with the Company are deemed to be “deferred compensation”, then to the extent delayed commencement of any portion of such payments is required in order to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments shall not be provided to you prior to the earliest of (i) the expiration of the six-month period measured from the date of your Separation from Service with the Company, (ii) the date of your death or (iii) such earlier date as permitted under Section 409A without the imposition of adverse taxation. Upon the first business day following the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Paragraph shall be paid in a lump sum to you, and any remaining payments due shall be paid as otherwise provided herein or in the applicable agreement. No interest shall be due on any amounts so deferred. The parties agree that this Agreement may be amended as may be necessary to fully comply with Section 409A in order to preserve the payments and benefits provided hereunder. Notwithstanding the foregoing, the Company makes no representation or warranty and will have no liability to you or to any other person if any of the provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A, but does not satisfy an exemption from, or the conditions of, Section 409A.

 

7.              Arbitration. As a condition of your ongoing employment with the Company, you and the Company agree to submit to mandatory final, binding and confidential arbitration any and all disputes, claims or controversies arising out of, related to or connected with your employment with the Company, including, but not limited to, claims of discrimination, harassment, unpaid wages, breach of contract (express or implied), wrongful termination, torts, claims for stock or stock options, as well as claims based upon any federal, state or local ordinance, statute, regulation or constitutional provision, including, but not limited to, the Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq., the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1001, et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, et seq., and 42 U.S.C. § 1981, and any and all state or local laws prohibiting discrimination or regulating any terms or conditions of employment “Arbitrable Claims”). Arbitration shall be the exclusive method by which to resolve all Arbitrable Claims and shall be final and binding upon the parties. BY AGREEING TO THIS ARBITRATION PROCEDURE, YOU AND THE COMPANY HEREBY WAIVE ANY RIGHTS EITHER MAY HAVE TO TRIAL BY JURY IN REGARD TO ARBITRABLE CLAIMS.

 

 

The arbitration shall be conducted pursuant to the Federal Arbitration Act, 9 U.S.C. § 1-16, and to the fullest extent permitted by law, in New York, New York by a single arbitrator conducted by JAMS, Inc. (“JAMS”) under the then-applicable JAMS Employment Arbitration Rules and Procedures (which can be found at https://www.jamsadr.com/rules-employment-arbitration/english). In addition, all claims, disputes, or causes of action under this section, whether by you or the Company, must be brought in an individual capacity, and shall not be brought as a plaintiff (or claimant) or class member in any purported class or representative proceeding, nor joined or consolidated with the claims of any other person or entity. The Arbitrator may not consolidate the claims of more than one person or entity and may not preside over any form of representative or class proceeding. To the extent that the preceding sentences regarding class claims or proceedings are found to violate applicable law or are otherwise found unenforceable, any claim(s) alleged or brought on behalf of a class shall proceed in a court of law rather than by arbitration. In any arbitration proceeding, you will have the right to be represented by legal counsel at your own expense (subject to applicable law requiring that the Company pay the fees and/or costs of your legal counsel). The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be available under applicable law in a court proceeding; and (b) issue a written statement signed by the arbitrator regarding the disposition of each claim and the relief, if any, awarded as to each claim, the reasons for the award, and the arbitrator’s essential findings and conclusions on which the award is based. The arbitrator, and not a court, shall also be authorized to determine whether the provisions of this paragraph apply to a dispute, controversy, or claim sought to be resolved in accordance with these arbitration proceedings. The Company shall pay all costs and fees in excess of the amount of court fees that you would be required to incur if the dispute were filed or decided in a court of law. Nothing in this Agreement is intended to prevent either you or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration.

 

8.              Indemnification; D&O Insurance: In your capacity as an officer of the Company or any subsidiary, you will be treated the same as similarly situated officers of the Company with respect to (i) coverage under the Company’s directors and officers liability insurance policy and (ii) indemnification pursuant to the Company’s by-laws or any indemnification agreement that may be offered to officers of the Company.

 

9.              Entire Agreement. This Agreement, together with Non-Disclosure and Non-Compete Agreement, will form the complete and exclusive statement of your employment agreement with the Company. Nothing in this Agreement, however, waives or impacts any previously granted stock, stock options, equity or any other deferred compensation in any form, the terms of each shall continue to apply. It supersedes any other agreements or promises with respect to your employment made to you by anyone, whether oral or written, and other than those changes expressly reserved to the Company’s discretion in this Agreement. This Agreement can only be modified in a written agreement signed by you and a duly authorized officer of the Company. You hereby acknowledge and agree that no event has occurred that would give rise to an event of Good Reason under this Agreement, the Prior Agreement or any other agreement between you and the Company or its affiliates.

 

10.       Payment of Attorneys’ Fees. The Company shall pay your attorneys’ fees in connection with this Agreement up to $5,000.

 

 

Acceptance:

 

To indicate your acceptance of this Agreement, and we hope that you do, please sign and date this Agreement and sign and date the Non-Disclosure and Non-Compete Agreement and return the signed copies of these documents to me, by no later than June 6, 2019.

 

We are extremely pleased to make this offer to you, Karin, and we are confident you will make a significant contribution to Progyny’s success in your new role!

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ David Schlanger
    
	
 
    	
David Schlanger
    
	
 
    	
Chief Executive Officer 
   Progyny, Inc.
    

 

I have read and understood this Agreement and hereby acknowledge, accept and agree to the terms as set forth above.

 

	
/s/ Karin Ajmani
    	
 
    
	
Karin Ajmani
    	
 
    
	
June 6, 2019

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