Document:

Exhibit 10.2

 

PAPA JOHN’S INTERNATIONAL, INC.

 

AMENDMENT NO. 1

TO

SEVERANCE PAY PLAN

 

This AMENDMENT NUMBER ONE (the “Amendment”), dated as of November 1, 2018, and effective as of November 1, 2018, amends the Papa John’s International, Inc. Severance Pay Plan, dated May 1, 2012 (the “Plan”).  Terms used herein, unless otherwise defined herein, shall have the meanings ascribed to them in the Plan.

 

RECITALS

 

WHEREAS, Papa John’s International, Inc. (the “Company”) considers it essential to the best interests of its stockholders to foster the continued employment of key management personnel.

 

WHEREAS, in order to fulfill such purpose, the Company desires to amend the Plan to provide certain additional severance benefits to key managers.

 

WHEREAS, the Company has full discretion and authority to amend the terms of the Plan, pursuant to Sections 2.B. and 7 of the Plan.

 

WHEREAS, the Compensation Committee of the Board of Directors of the Company has approved an amendment to the scope of the Plan’s terms related to the level of benefits certain key managers may receive under the Plan.

 

AMENDMENT

 

The Plan is hereby amended as set forth below.

 

1.              The Severance Schedule is amended to add a new level above the “Vice Presidents and above” level, as follows:

 

·                  Senior Vice Presidents and above who are designated by Chief Executive Officer of the Company as members of the Executive Leadership Team:

 

o                Nine months base salary (paid over nine month severance period) and COBRA coverage continuation benefits

o                Pro-rata portions of any bonus payouts based upon period of service during the year employment terminates under any incentive-based compensation plans then in effect (provided that any applicable performance measures are achieved)

o                Nine months outplacement services

 

2.              And all references to “Vice Presidents and above” outside of the Severance Schedule shall be deemed to include Senior Vice Presidents and above.

 

Continuing Effect.  Except as specifically provided herein, the Plan shall remain in full force and effect in accordance with its terms and is hereby ratified and confirmed in all respects.

 

Binding Effect.  The Amendment shall be binding upon and inure to the benefit of any successors to the Company.

 

* * *

 

1

Exhibit 10.2

 

IN WITNESS WHEREOF, the Company has caused this Amendment to be duly executed by its officer thereunto duly authorized as of the date referred to above.

 

PAPA JOHN’S INTERNATIONAL, INC.

 

	
By:
    	
/s/   Steve Ritchie
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Steve Ritchie
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
President and Chief   Executive Officer
    	
 
    

 

2Exhibit 10.1

 

TERMS OF EMPLOYMENT OFFER

 

 

 

 

POSITION

 

We are pleased to offer
you the position of President, Clinical Development. Subject to the provisions listed in the “General Terms” section
below, your start date in this position will be on or before November 15, 2018. In this role, you will report directly to Celgene’s
Chairman and Chief Executive Officer.

 

CASH COMPENSATION

 

Your semi-monthly compensation
for this position will be $31,666.67 (which when annualized equals approximately $760,000.00).

 

In addition to this base
compensation, you will be eligible to participate in our Management Incentive Plan (MIP), which would target you for a bonus of
80% of your eligible base salary earnings, based on the achievement of corporate performance objectives. Actual awards are determined
by the Compensation Committee in its sole discretion and are paid annually, typically during the first quarter of the following
year. The award may be at, above or below the target level, but you can potentially earn up to 200% of your target award based
upon achievement of Company objectives.

 

Provided you start your
employment with Celgene at the agreed start date and are actively employed with Celgene through December 31, 2018, your 2018 bonus
to be paid in the first quarter of 2019 will not be less than $608,000, which reflects 80% of your annualized base salary (or increased
to the amount payable under the MIP based on actual Celgene performance).

 

ONE TIME PAYMENT

Celgene will also grant
you a one-time payment of $400,000 (gross) which is payable within 30 days from your start date. This payment will be considered
a taxable event for the purpose of payroll tax calculations. Please refer to the terms in the attached repayment agreement.

 

EQUITY COMPENSATION

 

As a new employee, you
will receive a new hire equity grant on the first trading day of the month following your start date. The total value of this new
hire equity grants will be $4,700,000 and will be granted to you in the form of stock options, Restricted Stock Units (RSUs) and
Performance Stock Units (PSUs).

 

The number of stock options
you will receive will be determined on the grant date by dividing the value of that portion of your new hire equity grant to be
delivered in stock options ($1,000,000) by the applicable Black-Scholes value per stock option. The exercise price will be the
closing stock price of Celgene common stock on the date of grant. The stock option grant will have a ten-year term and will vest
equally over the first four years, i.e., 25% on each anniversary of the grant date.

 

     

     

    

 

The number of RSUs you
will receive will be determined on the grant date by dividing the value of that portion of your new hire equity grant to be delivered
in RSUs ($2,700,000) by the closing stock price of Celgene common stock on the grant date. These RSUs will vest according to the
vesting schedule in the RSU grant agreement as follows:

 

		·	1/3 will vest on the 1st anniversary of the grant date

		·	1/3 will vest on the 2nd anniversary of the grant date

		·	1/3 will vest on the 3rd anniversary of the grant date

 

The target number of PSUs
you will receive will be determined on the grant date by dividing the value of that portion of your new hire equity grant to be
delivered in PSUs by the closing stock price of Celgene common stock on the date of grant. The total value of the PSU grant is
$1,000,000. A portion of the PSU value ($325,000) will be granted under the 2017 – 2019 Long-Term Incentive Plan (“LTIP”)
and the remaining portion of the PSU value ($675,000) will be granted under the 2018 – 2020 LTIP.

 

These and all other conditions
surrounding your new hire grants have been approved by the Compensation Committee of the Board of Directors or its delegate outlined
in the Celgene Corporation 2014 Stock Incentive Plan. Terms and conditions surrounding the new hire equity grants (and subsequent
equity grants) are outlined in the Stock Option & Restricted Stock Unit Award documents that you will receive on the date of
grant and which must be accepted as a condition of the grants, and will be substantially similar to the terms and conditions applicable
to the stock options, RSUs and PSUs that were granted in 2017 to other Celgene executives who are direct reports of the CEO.

 

Beginning in fiscal year
2019, you will be granted annual equity awards on a substantially similar basis as other executives who are direct reports to the
CEO, in similar amounts (i.e., proportion of total annual compensation), types of awards, and terms and conditions.

 

ADDITIONAL PROGRAMS

 

Health
and Welfare Benefits: You will be eligible to participate in all Celgene comprehensive
US health and welfare benefit programs on the first day of the month following your date of employment. Information on your Celgene
benefits package will be provided under separate cover.

 

Deferred
Compensation Plan: Celgene maintains a Deferred Compensation Plan for a select group of
employees. You will be notified when you are eligible to begin participating in the Plan. Enrollment occurs semi-annually, typically
at the end of the second quarter and again at the end of the fourth quarter. Information regarding the Plan, your investment options
and how to enroll will be available from Celgene's deferred compensation provider in advance of the enrollment period.

 

Financial
and Tax Planning: You will be eligible for reimbursement up to $15,000 per calendar year
for Financial and Tax planning assistance.

 

Severance
Compensation: If your employment is terminated by Celgene at any time, other than for Cause
(as defined in the repayment agreement), or by you for Good Reason (as defined below), we will pay you severance compensation in
a lump sum in an amount equal to twelve months’ base salary and bonus at target, plus 12 months’ continuation of medical
and dental benefits at active employee rates, less applicable taxes. 

 

In
the event of “double-trigger” circumstance resulting from a change in control, you will be paid in a lump sum an amount
equal to twelve months’ base salary and bonus at target, plus continuation of medical and dental benefits at active employee
rates, less applicable taxes, and your unvested stock options and RSUs will fully vest. PSUs will vest according to the terms noted
in the applicable award agreement. Additionally, in the event of change in control, under a modified economic cutback, your change
in control-related payments would be reduced to avoid the 280G excise tax if the result would be economically beneficial to you.
Double-trigger shall mean that there is a change in control AND, within two years of the change in control, either (x) you are
terminated without cause or (y) your position is eliminated, you are required to report to anyone other than the Celgene CEO, your
duties/responsibilities/compensation are significantly reduced or your primary place of work is relocated greater than 50 miles
from your current work location (“Good Reason”).

 

     

     

    

 

Paid
Time Off: You will be eligible for five weeks of vacation annually. In addition, Celgene
offers ten company holidays and 3 personal days.

 

Retirement
Benefits: You will be eligible to participate in Celgene’s 401(k) Plan on the first
day of the month following your date of employment.

 

Legal Expenses: You will be reimbursed
for reasonable legal fees and expenses that you incur in connection with the negotiation and preparation of this agreement. In
the unlikely event of any lawsuit from your former employer relating to your employment with Celgene, then Celgene shall indemnify
you for the reasonable legal, expenses and any losses resulting therefrom.

 

Relocation: You will be reimbursed for
reasonable out-of-pocket relocation expenses that you incur within the first two years of your assuming this position, in accordance
with any then applicable Celgene policy.

 

GENERAL TERMS

 

In your role,
you will be expected to undertake the duties and responsibilities customary for your role as President, Clinical Development, or
as otherwise agreed between you and Celgene’s CEO or Chairman of its Board of Directors.

 

The compensation
and benefits content described in this offer letter does not constitute a contractual guarantee of employment for any specific
duration of time. Celgene has the right to amend plans and policies at any time, except that your vested rights cannot be adversely
affected without your consent. Your employment relationship with Celgene is at-will, which means that either you or Celgene can
terminate the relationship at any time for any reason with or without cause. The information regarding employee benefits contained
in this offer letter are subject to the terms and conditions of Celgene's written plan documents which provide that Celgene retains
the right to alter, amend or eliminate said benefits in its sole discretion. Celgene requires a pre-employment drug screen. You
will receive information regarding the drug screen via email following the acceptance of your offer and return of the completed
documents. This offer is contingent upon completion of satisfactory employment and associated references and background check.
We advise that you not alter your current employment status until you have cleared these contingencies. In addition, all employees
are required to sign Celgene’s “Global Reproductive Health and Safety policy” and a “Proprietary Information
and Inventions Agreement” upon the start of their employment. Current Federal regulations require you to furnish proof of
your right to work in the United States. These documents must be submitted on your first day of work.

 

 

With my best regards,

 

/s/ Joe Hand

 

Joe Hand

EVP, Human Resources & Corporate
Services

 

 

I Accept the offer as outlined above:

 

/s/ Alise Reicin

Alise Reicin

 

October 4, 2018

Date

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