Document:

derm-ex1020_129.htm

Exhibit 10.20

TRANSITION AGREEMENT

This Transition Agreement (this “Agreement”) is made and entered into as of November 6, 2017, by and between Dermira, Inc., a Delaware corporation (“Dermira”), and UCB Pharma S.A., a limited liability corporation incorporated under the laws of Belgium (“UCB”).  Terms not otherwise defined herein shall have the respective meanings ascribed to them in the Development Agreement (as defined below).  

Recitals

Whereas, Dermira and UCB previously entered into that certain Development and Commercialisation Agreement, dated as of March 21, 2014 (the “Development Agreement”).

Whereas, pursuant to Section 20.8 of the Development Agreement, Dermira may terminate the Development Agreement for no reason at any time after both Parties have received the complete data set used to assess the primary efficacy endpoint of the first Phase 3 Clinical Study.

Whereas, both Parties have received the complete data set used to assess the primary efficacy endpoint of the first Phase 3 Clinical Study.

Whereas, Dermira expressed its intent to terminate the Development Agreement pursuant to Section 20.8.

Whereas, the Parties agree to mutually terminate the Development Agreement for strategic reasons pursuant to the terms of this Agreement.  

Agreement

Now, Therefore, in consideration of the premises and the covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.Termination of the Agreement.  The Development Agreement shall terminate on February 15, 2018 (the “Termination Date”).  The termination of the Development Agreement pursuant to this Agreement shall be deemed a termination of the Development Agreement pursuant to Section 20.8 thereof and a Non-Breach Termination for all purposes under the Development Agreement.  Notwithstanding the Termination Date, Dermira will use commercially reasonable efforts to assist UCB on the implementation of the transition plan agreed to by UCB and Dermira concurrently with the execution of this Agreement, the final version of which was exchanged by the parties with the fully-executed version of this Agreement (the “Transition Plan”) in accordance with the terms of this Agreement.

2.Amendment of Section 21.5(b)(ii)(A).  Section 21.5(b)(ii)(A) of the Development Agreement, which shall survive the termination of the Development Agreement pursuant to its terms, shall be amended and restated to read in its entirety as follows:

 

“assist UCB in the implementation of the Transition Plan pursuant to the terms of that certain Transition Agreement, dated as of November 6, 2017 (the “Transition Agreement”). Thereafter Dermira shall cease, and shall ensure that its Third Party subcontractors shall cease, all activities relating to the Development of the Development Product in the Development Territory and/or the Dermira Commercial Activities relating 

to the Product in the Development Indication and/or the Promotion Indication in the Promotion Territory; and”  

3.Addition of Section 21.5(b)(ii)(C).  The following shall be added as Section 21.5(b)(ii)(C) to the Development Agreement:

“Dermira shall make each of Dan Burge, Watiri Kamau-Kelley, Matt Swanson and Jeron Evans available to UCB via telephone or in person at Dermira’s offices for questions and general assistance regarding the clinical development and commercial portions of the Transition Plan at mutually convenient times and upon reasonable notice during normal business hours as reasonably requested by UCB, but in no event with respect to each individual for more than four hours per week commencing on the Termination Date (as defined in the Transition Agreement) and concluding on the date Regulatory Approval is obtained for the Product in the United States for use in the Development Indication; and”

4.Amendment 21.5(g).  Section 21.5(g) of the Development Agreement, which shall survive the termination of the Development Agreement pursuant to its terms, shall be amended and restated to read in its entirety as follows:

“provided that Dermira has complied in all material respects with its obligations pursuant to this Section 21.5, UCB shall pay to Dermira in consideration for the repurchase of all Product rights, licenses and intellectual property (including those granted to Dermira pursuant to Section 14) in the amount of Fifty Million Dollars ($50,000,000) (“Repurchase Payment”), of which Eleven Million Dollars ($11,000,000) shall be paid to Dermira within five Business Days following mutual execution of this Agreement and Thirty-Nine Million Dollars ($39,000,000) will be paid to Dermira thirty days following Regulatory Approval of the Product in the United States for use in the Development Indication.  

In the event that UCB licenses the Product in the Promotion Territory prior to paying the full Repurchase Payment to Dermira, the remainder of the purchase price shall be paid to Dermira immediately upon the execution of the agreement providing for such license.  For the avoidance of doubt, UCB shall have no obligation whatsoever to make any of the Development milestone payments to Dermira identified in the table in Section 10.2 as Milestone Numbers 5a, 5b, 5c, 5d and 5e.”

5.Cross-Charges in 2018.   Consistent with the Transition Plan, UCB will provide Dermira with a list of third party contracts to be assumed by UCB and, to the extent permitted under the terms thereof, Dermira shall assign such third party contracts to UCB as of January 1, 2018.  From and after January 1, 2018, UCB shall make all payments due and owing to third parties under the third party contracts for work done from and after January 1, 2018.  During the first quarter and second quarter of 2018, UCB may cross-charge Dermira on a monthly basis for development costs incurred by UCB during the first and second quarter of 2018 up to an aggregate amount of Ten Million Dollars ($10,000,000) based on actual invoices.  Dermira shall pay to UCB the amount of each cross-charge within ten Business Days of receipt of the applicable cross-charge invoice.  If the aggregate cross-charges in first quarter and second quarter of 2018 combined are less than Ten Million Dollars ($10,000,000), then Dermira shall pay to UCB on or before July 30, 2018, the difference between the aggregate cross-charges and Ten Million Dollars ($10,000,000).  

2

 

6.Resignation of UCB Designee; Amendment of Section 2.5(f).  

6.1Pursuant to Section 2.5(f) of the Development Agreement, the current UCB Designee is Emmanuel Caeymaex.  Concurrently with the effectiveness of this Agreement, Mr. Caeymaex shall execute the resignation letter attached hereto as Exhibit A, specifying that Mr. Caeymaex is resigning from the Dermira Board of directors as of the date of this Agreement, and UCB’s right to designate a director nominee to Dermira’s Board of Directors is hereby terminated.  

6.2Section 2.5(f) of the Development Agreement shall be amended and restated to read in its entirety as follows:

“[Reserved.]”

7.Miscellaneous.

(a)Entire Agreement.  This Agreement, the Development Agreement and the documents and instruments and other agreements specifically referred to herein or delivered pursuant hereto constitute the entire agreement between the Parties and supersedes and extinguishes all previous drafts, agreements, arrangements and understandings between them, whether written or oral, relating to its subject matter. 

(b)Further Assurances.  Each Party agrees to execute any instrument, to take any other action and to give any further assurances to effect the intent of this Agreement.  In addition, notwithstanding the timelines for completion of the Transition Plan set forth in Exhibit A of this Agreement, (i) if reasonably requested by UCB in connection with responding to any written or oral FDA request, inquiry, inspection, comment or action, or to address clinical development or quality issues relating to the provision of services by Parexel, Dermira shall continue to assist UCB on such matters through the date of Product launch in the United States for use in the Development Indication (but in no event after 30 days following Regulatory Approval for the Product in the United States for use in the Development Indication) and (ii) if reasonably requested by either Party in connection with responding to any compliance or independent audit inquiry or action by a governmental authority or preparation or audit of a Party’s financial statements, the other Party will cooperate with the requesting Party in making appropriate individuals and information available to enable the Party requesting assistance to respond to such inquiry or action or to timely prepare or audit its financial statements, provided that confidential information shall not be disclosed to the governmental agency except to the extent required by law. 

(c)Other Provisions.  Sections 23, 25, 26, 27, 28, 29, 31, 32 and 33 of the Development Agreement are hereby incorporated into this Agreement mutatis mutandis.  

(d)Signature.  Electronic, pdf and facsimile signatures shall be deemed originals and binding as such.

[Remainder of page intentionally left blank]

 

3

 

Exhibit 10.20

In Witness Whereof, Dermira and UCB have executed this Transition Agreement as of the date first set forth above.

 

 

DERMIRA:

Dermira, Inc.

 

By:/s/ Thomas G. Wiggans

 

Name:Thomas G. Wiggans

 

Title:Chairman and CEO

 

UCB:

UCB Pharma S.A.

 

By:/s/ Detlef Thielgen

 

Name:Detlef Thielgen

 

Title:EVP – CFO

 

 

UCB Pharma S.A.

 

By:/s/ Emmanuel Caeymaex

 

Name:Emmanuel Caeymaex

 

Title:EVP, Immunology PVU Head

 

[Signature Page to Transition Agreement]

 

Exhibit 10.20

EXHIBIT A

Resignation Letter

November 6, 2017

Dermira, Inc.
275 Middlefield Road, Suite 150
Menlo Park, California 94025

 

Re:  Resignation as a Director of Dermira, Inc.

 

Ladies and Gentlemen:

 

Effective as of the date of this letter, I hereby voluntarily resign (a) as a member of the Board of Directors (the “Board”) of Dermira, Inc. (the “Company”) and any subsidiary of which I am a member and (b) from all committees of the Board and any subsidiary of which I am a member.  I am not resigning because of a disagreement with the Company.

 

 

Sincerely,

 

 

 

Emmanuel Caeymaexderm-ex1021_848.htm

Exhibit 10.21

 

 

 

 

 December 2, 2016

 

 

 

Sent via email: lorimlyons@gmail.com

 

 

Dear Lori:

 

 

It is my pleasure to offer you employment with Dermira, Inc. (“Dermira” or the “Company”) on the terms set forth in this offer letter.  We are building a premier dermatology company and are excited to have you as part of the team.

 

The terms of your offer are as follows:

 

Title:  Chief Commercial Officer

 

Start Date:  December 12, 2016

 

Responsibilities:  The Chief Commercial Officer will provide the leadership, strategic vision, and functional expertise required to prepare Dermira for a successful US launch and commercialization of its late stage pipeline.   The CCO will be responsible for building and leading a best-in-class, biopharmaceutical commercial organization in the achievement of its short-term launch and long-range business objectives.   As a member of the executive management team, the CCO will be involved in all aspects of Dermira’s strategy, objectives and execution.

 

Annual Salary:  $360,000.00 USD less applicable withholding taxes.

 

Stock Option Grant:  Subject to the approval of the Company’s Board of Directors (the “Board”), you will be granted an initial option to purchase 100,000 shares of the Company’s common stock at a price equal to the fair market value as approved by the Board. On-going equity grants will be reviewed on an annual basis.

 

Bonus:  You will be eligible for an annual target performance bonus of 40% of your annual salary, subject to your achievement of specified performance targets determined by the Board (the “Bonus”).  Any Bonus for the fiscal year in which employment begins will be prorated, based on the number of days you are employed by the Company.  You must be employed by September 30th of the year in order to be eligible for a Bonus.  Any Bonus for a fiscal year will be paid within 21⁄2 months after the close of that fiscal year, but only if you are still employed by the 

Company at the time of payment.  Any Bonus payment shall be subject to applicable withholding taxes.  The determinations of the Board with respect to any Bonus will be final and binding. 

 

Relocation:  You will be able to receive relocation assistance for your move to the Bay Area.  The following reasonable expenses will be reimbursed:

 

	
 
	
-
	
Travel, hotel and meal expenses for you and your family to make up to two house-hunting trips to the Bay Area.

	
 
	
-
	
Reimbursement for reasonable travel expenses including flights and/or auto mileage when you move your household to the Bay Area.

	
 
	
-
	
Shipment of your household goods and automobiles to the Bay Area up to a maximum of $25,000

	
 
	
-
	
Reimbursement of closing costs and realtor fees (and other relocation incidentals) on the sale of your current home and/or purchase of new home in the Bay Area, up to a maximum of $110,000.

	
 
	
-
	
Temporary lodging for you and your family in the Bay area for up to a maximum of 3 months.

 

Benefits:  You shall be entitled to participate in any of the Company’s employee benefit plans or programs that become available to similarly situated employees of the Company to the full extent of your eligibility.

 

Health Insurance:  You will be entitled to participate in the company’s health insurance programs to the full extent of your eligibility.  If necessary, the Company will reimburse the employee one month of COBRA expenses to bridge her benefits.

 

 

This offer is contingent upon a clear background check. You agree to assist as needed and to complete any documentation at the Company’s request to meet this condition.   Should your background check not be completed before your scheduled start date, the Company will permit you to start work provisionally, subject to a final clear background check.   If the contingency for the background check is not met, then your employment will be terminated for Cause.  

The Company reserves the right to change or otherwise modify, in its sole discretion, any of the preceding terms of employment, including those relating to salary, bonus plan, if applicable, and benefits at any time.  The foregoing sentence does not change the at-will nature of your employment and the Company may terminate you at any time.

While we look forward to a long and profitable relationship should you decide to accept this employment offer, you will be an at-will employee of the Company, which means the employment relationship can be terminated by either party for any reason, at any time, with or without prior notice and with or without cause.  Any statements or representations to the contrary (and any statements contradicting any provision in this letter) should be regarded by you as ineffective.  Further, your participation in any stock, option or benefit program is not to be regarded as assuring you of continuing employment for any particular period of time.  Any modification or change in your at-will employment status may only occur by way of a written employment agreement signed by you and the Chief Executive Officer of the Company.

 

2

 

Please note that because of employer regulations adopted in the Immigration Reform and Control Act of 1986, within three (3) business days of starting your new position you will need to present documentation demonstrating that you have authorization to work in the United States.

As an employee of the Company, you will 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 “Employee Intellectual Property Protection Agreement” as a condition of your employment, a copy of which is attached hereto as Appendix A (the “EIPPA”).  During the period that you render services to the Company, you agree to not engage in any employment, business or activity that is in any way competitive with the business or proposed business of the Company and agree not to 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 and the Company agree to submit to mandatory binding arbitration any and all claims arising out of or related to your employment with the Company and the termination thereof, including, but not limited to, claims for unpaid wages, wrongful termination, torts, stock or stock options or other ownership interest in the Company, and/or discrimination (including harassment) based upon any federal, state or local ordinance, statute, regulation or constitutional provision.  All arbitration hearings shall be conducted in San Mateo County, California.  THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN REGARD TO SUCH CLAIMS.  This Agreement does not restrict your right to file administrative claims you may bring before any government agency where, as a matter of law, the parties may not restrict the employee’s ability to file such claims (including, but not limited to, the National Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor).  However, the parties agree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrative claims.  The arbitration shall be conducted through JAMS before a single neutral arbitrator, in accordance with the JAMS employment arbitration rules then in effect. The JAMS rules may be found and reviewed at http://www.jamsadr.com/rules-employment-arbitration. If you are unable to access these rules, please let me know and I will provide you with a hardcopy.  The arbitrator shall issue a written decision that contains the essential findings and conclusions on which the decision is based.

With respect to the terms addressed in this offer letter, this offer letter contains the entire agreement and understanding by and between you and the Company.  This offer letter supersedes all prior undertakings and agreements, written or oral, as may have existed prior to the date of execution of this offer letter with regard to the terms addressed in this offer letter.  By executing this offer letter, you acknowledge that any such superseded understandings and agreements are terminated, and you disclaim any and all rights or interest that may have existed with respect thereto.  Further, any representations, promises, agreements or understandings, written or oral, with regard to the terms addressed in this offer letter that are not contained in this offer letter shall be of no force or effect.

 

 

 

 

 

3

 

Lori, please indicate your acceptance of this offer by signing below and returning to me within seven days of the date of this offer letter, or let me know if you have additional questions.  I look forward to you joining Dermira.

Sincerely,

 

 

/s/ Thomas G. Wiggans

 

Thomas G. Wiggans

Chief Executive Officer

 

 

 

 

 

 

Accepted and agreed to, December 5, 2016:

 

 

By:/s/ Lori Lyons Williams

Lori Lyons-Williams

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}]]