Document:

Document

Privileged  and Confidential

        

Dear         :
At Capital Senior Living Corporation (the “Company”) we know that our most valuable assets are our employees and that our employees are essential to our past and future success.  In connection with the transactions contemplated by that certain Investment Agreement, by and between the Company and Conversant Capital LLC (the “Investor”), dated as of July 22, 2021 (the “Investment Agreement”), I am pleased to deliver to you this letter agreement (this “Agreement”) as you are a highly valued employee, and we  look forward to your continued contributions to the Company Group (as defined below) into the future.  To encourage your continued employment with the Company Group, you have been selected to be eligible to receive a retention bonus (the “Retention Bonus”), a new award of performance shares and certain protections or additional rights relating to your outstanding Company equity awards and your employment agreement with the Company as set forth below, subject to the terms and conditions of this Agreement.  This Agreement is conditioned upon the closing of the transactions contemplated by the Investment Agreement (the “Closing”), and in the event that the Investment Agreement terminates for any reason prior to the Closing, this Agreement shall be void ab initio.
Retention Bonus
The total amount of your Retention Bonus is $         and will be paid to you in cash lump sum in two (2) installments through normal Company payroll process on the first regularly scheduled payroll date that is on or next following the payment date(s) set forth below:
						
	Payment Date	Retention Bonus
	The Closing	50%
	Six Month Anniversary of the Closing	50%

The Retention Bonus shall be paid to you in accordance with and subject to all applicable withholding of local, state, federal, and foreign taxes, as determined in the sole discretion of the Company as well as any other voluntary deductions and withholdings authorized by you. In order to earn each of the two (2) installments of the Retention Bonus, you must remain actively employed by the Company or an entity that is a direct or indirect subsidiary or affiliate of the Company (collectively, the “Company Group”) through and including the applicable installment payment date(s).  Notwithstanding the foregoing, if, prior to the applicable payment date(s), an Involuntary Termination (as defined in the Company’s 2019 Omnibus Stock and Incentive Plan (the “Plan”)) of your employment with the Company Group occurs, you will be entitled to any unpaid portion of the Retention Bonus, which shall be payable on the first regularly scheduled payroll date that is no later than thirty (30) days following the termination date.
Except as provided in this Agreement, if your employment terminates for any reason prior to the applicable installment payment date(s), then you will not be entitled to any unpaid portion of the Retention Bonus in respect of such installment payment date(s) (and any such unpaid portion of the Retention Bonus will be forfeited).

New Equity Award
As soon as practicable (but in no event more than thirty (30) days) following the Closing, you will receive an award of not less than      performance shares, pursuant to the Company’s 2019 Omnibus Stock and Incentive Plan (as amended) (the “2019 Plan”) on the terms contemplated by the Investment Agreement.
Existing Equity Awards
All of your outstanding Company equity awards will remain outstanding and be continued following the Closing.  
Upon an Involuntary Termination of your employment with the Company Group within one (1) year following the Closing or your termination due to your death or disability, all of your outstanding equity awards in the Company (whether granted under the 2019 Plan, the Company’s 2007 Omnibus Stock and Incentive Plan or otherwise) shall immediately fully vest, subject (except in the case of your death) to your execution and delivery of an effective release of claims in a form contemplated by your employment agreement or, if none, in such form as is reasonably acceptable to the Company.
Performance shareholders only:  Upon Closing, all of your shares in any performance stock award will convert, at target achievement award level, to time-based restricted stock that vests on award termination date (without regard to achievement of performance measures), subject to your continued employment through the award termination date, or as otherwise provided in the preceding sentence.
Employment Agreement
If, within one (1) year of the Closing, the Company Group terminates your employment without “cause” (as defined in your employment agreement) or you terminate your employment with the Company Group for “good reason” (as defined in your employment agreement), the provisions of section [7(d)][6(d)] of your employment agreement shall apply.
Other Terms
You understand and agree that because the Company is extending this benefit to a limited number of individuals, you will keep this Agreement strictly confidential at all times and will not disclose the terms of this Agreement to anyone (other than to your immediate family members or your personal tax and legal advisors, each of whom will be instructed by you and agree to keep the terms of this Agreement strictly confidential).  Notwithstanding the foregoing, nothing herein will be construed to limit your right to discuss or disclose wages and working conditions, as protected under applicable law, or to limit or restrict in any way your communicating with any governmental agency or entity, or any officer or staff person thereof, concerning matters relevant to such governmental agency or entity.
Your Retention Bonus will be supplemental and in addition to (and will not be in lieu of) any previous, current or future annual bonus, retention award or other incentive compensation plans, agreements and/or amounts you may otherwise be entitled to receive from the Company Group and will not be taken into account in computing the amount of salary or compensation to determine any bonus, retirement, or other benefit under any Company Group benefit plan or arrangement, unless such plan or arrangement expressly provides otherwise.  
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Nothing in this Agreement is intended to suggest any guaranteed period of continued employment, and your employment will at all times continue to be terminable by you or your employer at any time and for any reason.  
This Agreement and any payments made hereunder are intended to be exempt from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and will be construed accordingly to the extent applicable.  
By accepting this Agreement, you hereby agree that this Agreement may only be amended or modified by a written instrument signed by you and a duly authorized representative of the Company. This Agreement shall bind any successor of the Company, its assets or its businesses (whether direct or indirect, and whether by purchase, merger, consolidation, separation, or otherwise), in the same manner and to the same extent that the Company would be obligated under this Agreement if no succession had taken place.
*    *    *    *
[Signature page follows]
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I look forward to your contribution to the future success of the Company Group.  In order for this Agreement to be valid and binding, please acknowledge your agreement and acceptance of the terms of this Agreement by signing below and returning the original copy of this Agreement to me as soon as possible but no later than         .
Sincerely,
_______________________
            
Agreed and Accepted:
            
            
Date:     August ___, 2021
[Signature Page to Retention Agreement]mtem-ex101_45.htm

Exhibit 10.1

 

 

November 4, 2019

 

Sean McLennan

1110 Pine Tree Lane 

Libertyville, IL 60048

 

Dear Mr. McLennan,

On behalf of Molecular Templates, Inc. (“MTEM” or the “Company”), I am pleased to offer you the position of Senior Vice President, Finance, reporting directly to me.

 

Total Rewards

Annual Salary

Your salary will be paid at the rate of $25,000.00 per month ($300,000.00 annualized) less payroll deductions and all required withholdings. Your salary will be paid in 24 installments annually or under such similar payroll procedure.

 

Target Bonus

You will be eligible to receive a target discretionary annual bonus of 35% of your base salary. Actual bonus awards may be above or below the targeted amount based on the Company’s performance and your individual performance, subject to MTEM’s policy for paying annual bonuses set forth in MTEM’s Employee Handbook, as may be amended from time to time. Your 2019 bonus, if any, will be prorated based on your start date of November 12, 2019.

 

Whether the Company awards bonuses for any given year, the allocation of the bonuses for Company and individual performance, and the amounts of such bonuses, if awarded, will be in the sole discretion of the Company as determined by its Compensation Committee of the Board of Directors (the “Committee”). If the Committee approves payment of bonuses for any given year, the bonus amounts generally will be determined and paid within the first calendar quarter of the year based on the prior year’s performance. To incentivize you to remain employed with MTEM, you must be employed on the date any bonus is paid in order to earn the bonus. If your employment terminates for any reason prior to the payment of the bonus, then you will not have earned the bonus and will not receive any portion of it. Notwithstanding the foregoing, it MTEM terminates your employment without “Cause” (as defined in MTEM’s 2018 Equity Incentive Plan) after the close of the fiscal year and prior to payment of the bonus, the Company will pay you any bonus awarded by the Compensation Committee on or before March 15.

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Equity Incentives

Subject to approval by the Committee, you will be granted an initial new hire option to purchase 80,000 shares of the Company’s common stock, subject to the terms and conditions of MTEM’s 2018 Equity Incentive Plan and a stock option grant notice and agreement that will be provided to you. The grant agreement will include a four (4) year vesting schedule, such that 25% of the shares will vest on the first anniversary of the commencement of your employment, with the balance vesting in equal monthly installments over the subsequent thirty-six (36) months, until either your option shares are fully vested or your employment ends, whichever occurs first. The stock option award vesting is subject to acceleration in certain circumstances following a Change in Control, as set forth below under “Termination Without Cause in Connection With a Change in Control”.

 

Annually, you will be eligible to participate in any long-term incentive plan in effect at a level commensurate with your position and role with MTEM under such plan’s terms and conditions.

 

Benefits

You will be eligible to receive MTEM’s complete package of wellness and insurance benefits. MTEM may, in its sole discretion, discontinue or modify any such plans, programs or practices at any time, with or without notice. Details about these benefit plans will be made available for your review.

 

Paid Time Off

Vacation. You are eligible for three weeks of paid vacation during each fiscal year at times that are mutually convenient for you and the Company.

 

Holidays. You are eligible for paid holidays. These holidays are listed in our employee handbook.

 

At-Will Employment; Termination; Severance

Acknowledgement. Your employment with MTEM is “at will,” which means you may terminate your employment with the Company at any time and for any reason whatsoever simply by notifying MTEM, and likewise, MTEM may terminate your employment at any time and for any reason whatsoever, with or without cause or advance notice. This at-will employment relationship cannot be changed except in a writing signed by a Company officer.

 

Termination in General. In the event your employment with MTEM terminates for any reason, you will receive (i) your base salary through the date of termination; (ii) reimbursement of all expenses for which you are entitled to be reimbursed, but for which you have not yet been reimbursed; and (iii) if you participate in MTEM’s group 

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health plans, the right to continue health care benefits under COBRA, at your cost, to the extent required and available by law.

 

Termination Without Cause. In the event MTEM terminates your employment without “Cause” (as defined in MTEM’s 2018 Equity Incentive Plan) in addition to (i), (ii) and (iii) above, provided you execute, deliver to MTEM and do not revoke a separation agreement and general release within 60 days following your last date of employment, the Company will pay you severance pay at a rate equal to 100% of your base salary, (less applicable withholding), for a period of nine months from the date of such termination, to be paid periodically in accordance with MTEM’s normal payroll practices. Payments will commence on the next payroll period following the date the separation agreement becomes enforceable, provided that if the 60-day period to sign the separation agreement extends into the following calendar year, the payments will begin in the new calendar year. The first payment will include all amounts due to you under this paragraph through that date.

 

Termination Without Cause in Connection With a Change in Control. In the event that a Change in Control (as defined in MTEM’s 2018 Equity Incentive Plan) occurs during your employment with us and MTEM terminates your employment without Cause (as defined in MTEM’s 2018 Equity Incentive Plan) three months prior to or twelve months after the Change in Control, provided you execute, deliver to MTEM and do not revoke a separation agreement and general release within 60 days following your last date of employment, the Company will (i) pay you in lieu of the severance benefit described in the preceding paragraph, a lump sum amount equal to one times (1x) the sum of your current base salary and your annual target bonus, and (ii) accelerate your vesting in all Company time-based equity awards that you then hold. All stock options then held by you shall immediately become exercisable in full and any other stock awards held by you will become free of restrictions. MTEM will pay you the lump sum severance payment on the next payroll period following the date the separation agreement becomes enforceable, provided that if the 60-day period to sign the separation agreement extends into the following calendar year, the lump sum payment will be made in the new calendar year.

 

Confidentiality

As a MTEM employee, you will be expected to abide by Company rules and regulations and sign and comply with the Company’s Proprietary Information and Inventions Agreement which prohibits unauthorized use or disclosure of company proprietary information.

 

In your work for the Company, you will be expected not to use or disclose any confidential information, including trade secrets, of any former employer or other person to whom you have an obligation of confidentiality. Rather, you will be expected to use only that information which is generally known and used by persons with training and experience comparable to your own, which is common knowledge 

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in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company.

 

You agree that you will not 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.

 

You represent that you are not a party to any agreement that would prohibit you from entering into employment with the Company and have otherwise brought to the Company’s attention any agreement that purports to restrict the activities in which you can engage on behalf of the Company.

 

This letter, together with the Proprietary Information and Inventions Agreement, forms the complete and exclusive statement of your agreement with MTEM. The terms in this letter supersede any other agreements or promises made to you by anyone, whether oral or written. Changes in your agreement terms, other than those changes expressly reserved to the Company’s discretion in this letter, require a written modification signed by an officer of the Company. As required by law, this offer is subject to satisfactory proof of your right to work in the United States of America.

 

The Company reserves the right to conduct background investigations and/or reference checks on all of its potential employees. Your employment offer, therefore, is contingent upon a clearance of such a background investigation and/or reference check, if any.

 

The terms of this letter are governed by the laws of Texas without regard to its or any other state’s conflict of law rules.

 

 

 

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Please sign and date this letter and return it to the Company by December 4, 2019, if you wish to accept employment at MTEM under the terms described above.

 

We welcome you to the Molecular Templates team and look forward to your contribution to our success.

 

	
	
Sincerely,

	
 

	

	
/s/ Adam Cutler (MTEM Supervisor)

	
Chief Financial Officer

	
Date: 8/27/2020

	
 

	
 

	
Accepted:

	
 

	
 

	
/s/ Sean McLennan 

	
Sean McLennan

	
 

	
Date: 12/4/19

 

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