Document:

Exhibit 10.22

 

SIGILON THERAPEUTICS INC.

 

AMENDED AND RESTATED SEVERANCE AND CHANGE IN CONTROL POLICY

 

This Amended and Restated Severance and Change in Control Policy (the “Policy”) of Sigilon Therapeutics Inc. (the “Company”), effective as of April 17, 2020 and amended and restated as of October 7, 2020, sets forth the payments and benefits the Company intends to provide to certain employees of the Company and its subsidiaries at the level of Vice President and higher (the “Executives”) who have a Qualifying Termination (the “Eligible Executives”), subject to the terms and conditions of this Policy. The severance benefits payable under this Policy as herein amended and restated shall apply to Qualifying Terminations on and after the Amendment Date. This Policy does not alter the “at will” nature of an Executive’s employment.  Capitalized terms that are not defined within this Policy have the meaning ascribed to it in Appendix A.

 

QUALIFYING TERMINATION OUTSIDE OF THE CHANGE IN CONTROL PERIOD.

 

In the event an Executive’s Qualifying Termination does not occur within the Change in Control Period, the Eligible Executive will be eligible to receive, depending upon his or her title as set forth in the table below, (i) a payment equal to the number of months set forth below (the “Severance Period”) of the Eligible Executive’s then-current annual base salary, paid in cash as payroll continuation payments payable beginning on the first payroll date following the Release Effective Date (as defined below) through the Severance Period; and (ii) if the Eligible Executive timely elects COBRA continuation coverage, reimbursement for his or her COBRA premium payments until the earlier of (x) the last day of the Severance Period, (y) the date upon which COBRA coverage otherwise terminates (including, without limitation, when the Eligible Executive becomes eligible to participate in any other employers’ group health plan), or (z) the date on which the Eligible Executive ceases to be eligible for COBRA continuation coverage for any reason.

 

	
Title
    	
 
    	
Severance Period (in months)
    	
 
    
	
Chief   Executive Officer (CEO)
    	
 
    	
12
    	
 
    
	
C-Level   Officer or Senior Vice President (SVP)
    	
 
    	
9
    	
 
    
	
Vice   President
    	
 
    	
6
    	
 
    

 

Any severance benefits payable under this Policy are subject to the Eligible Executive executing and not revoking the Release and ongoing compliance with any Restrictive Covenants (as defined below), as further described below.

 

QUALIFYING TERMINATION WITHIN THE CHANGE IN CONTROL PERIOD.

 

In the event an Executive’s Qualifying Termination occurs during the Change in Control Period, the Eligible Executive will be eligible to receive, depending upon his or her title as set forth in the table below, (i) a payment equal to the number of months set forth below (the “CIC Severance Period”) of the Eligible Executive’s then-current annual base salary, paid in cash as payroll continuation payments payable beginning on the first payroll date following the Release Effective Date (as defined below) through the CIC Severance Period; (ii) a percentage of his or her target annual performance bonus (set forth below) for the year in which his or her termination

 

 

of employment occurs, paid ratably each payroll period beginning on the first payroll date following the Release Effective Date (as defined below) and ending on the last day of the CIC Severance Period; (iii) if the Eligible Executive timely elects COBRA continuation coverage, reimbursement for his or her COBRA premium payments until the earlier of (x) the last day of the CIC Severance Period, (y) the date upon which COBRA coverage otherwise terminates (including, without limitation, when the Eligible Executive becomes eligible to participate in any other group health plan), or (z) the date on which the Eligible Executive ceases to be eligible for COBRA continuation coverage for any reason; and (iv) notwithstanding the terms of the Company’s equity incentive plan under which the Eligible Executive’s equity awards were granted or any applicable award agreements, full acceleration of all of the Eligible Executive’s unvested and outstanding equity awards and, in the case of stock options, such stock options will remain outstanding and exercisable for the remainder of its full term.

 

	
Title
    	
 
    	
CIC Severance Period
   (in months)
    	
 
    	
Percentage of Annual
   Performance Bonus
    	
 
    
	
CEO
    	
 
    	
18
    	
 
    	
150
    	
%
    
	
Chief   Operating Officer (COO)
    	
 
    	
12
    	
 
    	
100
    	
%
    
	
C-Level   Officer or SVP
    	
 
    	
9
    	
 
    	
75
    	
%
    
	
Vice   President
    	
 
    	
6
    	
 
    	
50
    	
%
    

 

Any severance benefits payable under this Policy are subject to the Eligible Executive executing and not revoking the Release and ongoing compliance with any Restrictive Covenants (as defined below), as further described below.

 

RELEASE OF CLAIMS.

 

Payment of the severance benefits described above will be subject to the Eligible Executive executing a Release, which becomes irrevocable at the time specified in the Release (the “Release Effective Date”), but in no event later than sixty (60) days following the date of the Eligible Executive’s termination.  Any severance benefits described in this Policy that would otherwise be payable prior to the Release Effective Date will be paid in arrears on the first regularly scheduled payroll date of the Company that follows such Release Effective Date by at least five (5) business days.

 

COMPLIANCE WITH RESTRICTIVE COVENANTS.

 

The Eligible Executive’s right to receive and retain the severance benefits provided for in this Policy is conditioned on his or her compliance with any agreement between the Eligible Executive and the Company or any of its affiliates that includes non-competition, non-solicitation and/or confidentiality restrictions (the “Restrictive Covenants”).  The severance benefits payable under this Policy shall be subject to forfeiture, clawback and/or recoupment by the Company automatically upon the Eligible Executive’s breach of any Restrictive Covenants.

 

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TIMING OF PAYMENTS AND SECTION 409A; WITHHOLDING.

 

The Company will have the right to withhold from any amount payable hereunder any federal, state and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

 

This Policy is intended to comply with Section 409A of the Code (“Section 409A”) or an exemption thereunder and shall be construed and administered in accordance with Section 409A. Notwithstanding any other provision of this Policy, payments provided under this Policy may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this Policy that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, references to termination of employment will be interpreted consistent with the definition of “separation from service” in Section 409A, and each installment in a series of payments will be treated as a separate “payment.”

 

Notwithstanding any other provision of this Policy, if any payment or benefit is conditioned on the Eligible Executive’s execution of a Release, the first payment shall include all amounts that would otherwise have been paid to the Eligible Executive during the period beginning on the date of the Qualifying Termination and ending on the payment date if no delay had been imposed. If the period within which the Eligible Executive must execute a Release would begin in one calendar year and expire in the following calendar year, then any payments contingent upon the execution of a Release shall be made in such following calendar year (regardless of the year of execution of the Release) if the payment in such following calendar year is required to avoid penalty under Section 409A.

 

Notwithstanding anything to the contrary in the Policy, if at the time of an Eligible Executive’s termination of employment, the Eligible Executive is a “specified employee,” as defined below, any and all amounts payable under the Policy on account of such separation from service that are covered in (i) below would (but for this provision) be payable within six (6) months following the date of termination, will instead be paid on the next business day following the expiration of such six (6) month period or, if earlier, upon the Eligible Executive’s death; except (i) to the extent of amounts that do not constitute a deferral of compensation within the meaning of Treasury Regulation Section 1.409A-1(b) (including without limitation by reason of the safe harbor set forth in Section 1.409A-1(b)(9)(iii), as determined by the Company in its reasonable good faith discretion); (ii) benefits that qualify as excepted welfare benefits pursuant to Treasury Regulation Section 1.409A-1(a)(5); or (iii) other amounts or benefits that are not subject to the requirements of Section 409A.

 

Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Policy comply with Section 409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by an Eligible Executive on account of non-compliance with Section 409A.

 

SECTION 280G OF THE CODE.

 

Notwithstanding anything in this Policy to the contrary, if at any time it is determined that payment of the severance benefits described herein, together with any other payments and benefits

 

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payable to an Eligible Executive (the “280G Payments”) would constitute “parachute payments” within the meaning of Section 280G of the Code and would, but for this paragraph, be subject to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), then such 280G Payments will be reduced by the Company by first reducing or eliminating payments that are payable in cash and then by reducing or eliminating payments, rights, and benefits that are not payable in cash, in each case, in reverse order beginning with payments, rights, or benefits that are to be paid farthest in time from the Change in Control so that the Eligible Executive will not be subject to the Excise Tax; provided that such reduction or elimination will not apply if the Eligible Executive would receive a greater after-tax amount by receiving all such 280G Payments without reduction or elimination pursuant to the foregoing provisions of this sentence.  In the event that an Eligible Executive receives payments or benefits that should not have been paid under this paragraph, the Eligible Executive must repay or reimburse the Company promptly upon receiving notice that an overpayment has been made.  Nothing in this paragraph will cause the Company to be responsible for, or to have any liability or obligation with respect to, the Excise Tax, including, but not limited to a tax gross-up.

 

DISCRETION TO INTERPRET THE POLICY.

 

As noted above, the Company has the sole discretion to make determinations as to (i) an Executive’s eligibility to participate in this Policy, (ii) the circumstances under which the severance benefits may be paid, (iii) the amount of severance benefits that may be paid, and (iv) whether any payments or benefits are 280G Payments. All determinations by the Company concerning the terms and provisions of this Policy and its administration will be final and binding.

 

NO DUPLICATION OF BENEFITS.

 

This Policy governs severance payable to any Eligible Executive; provided, however, if an Eligible Executive has an agreement with the Company or any of its affiliates, such as an offer letter or employment agreement, that provides for severance, then such agreement will govern the severance payments payable to such Eligible Executive, unless he or she consents in writing to waive the severance payments in such agreement and to be subject to this Policy. In no event will an Eligible Executive be entitled to a duplication of amounts or benefits under this Policy and under (i) any general severance policy or severance plan that the Company or any of its affiliates maintain or (ii) any agreement or arrangement between the Eligible Executive and the Company that provides for severance benefits (collectively under (i) and (ii), the “Company Plans”).  Any severance benefits payable to an Eligible Executive under this Policy, as amended and restated, will be in lieu of and not in addition to any benefits that the Company may provide under any other Company Plans to which the Eligible Executive would otherwise be entitled, including this Policy as in effect prior to October 7, 2020 (unless the Company Plan expressly provides for severance benefits to be in addition to those provided under this Policy).  The Company will reduce any severance benefits payable to an Eligible Executive under this Policy by any severance benefits to which the Eligible Executive is entitled by operation of a law or government regulations.

 

ACKNOWLEDGEMENTS.

 

The benefits provided under this Policy are entirely discretionary to the Company and the Company reserves the right in its sole and absolute discretion to amend or modify, in any respect

 

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whatsoever, or to suspend or terminate this Policy at any time and from time to time without notice, including the right to terminate, cancel or rescind any severance benefits that would otherwise be payable to any Eligible Executive (even a terminated Eligible Executive) after any change to this Policy to the maximum extent permitted by law.  This Policy does not represent a commitment by the Company to provide severance benefits at any point in the future.

 

This Policy is unfunded, and payments and benefits hereunder are payable from the general assets of the Company.

 

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APPENDIX A

 

For purposes of this Policy, the following terms will have the following meanings:

 

“Amendment Date” means October 7, 2020, the date on which the amended and restated Policy was approved by the Compensation Committee.

 

“Board” means the board of directors of the Company.

 

“Cause” means, as reasonably determined by the Board or the Compensation Committee, any one or more of the following actions: (i) the Executive’s material breach of the terms and conditions of any of the Restrictive Covenants, (ii) the Executive’s willful, malfeasant, dishonest or reckless conduct, in each case that relates to the Company and causes or could reasonably be expected to cause the Company material harm or damage, (iii) the Executive’s commission of an act of fraud, theft, misappropriation or embezzlement, or conviction, indictment for or pleading guilty or nolo contendere to a felony or any other crime involving moral turpitude, or (iv) the Executive’s failure to comply with a lawful directive of the Board or the person to whom the Executive reports, as applicable, or gross negligence in the performance of his or her duties and responsibilities to the Company.

 

“Change in Control” means (i) a merger or consolidation of the Company with or into any other corporation or other entity or person, (ii) a sale, lease, exchange or other transfer in one transaction or a series of related transactions of all or substantially all of the Company’s assets, or (iii) any other transaction, including without limitation, the sale by the Company of new shares of its capital stock or a transfer of existing shares of capital stock of the Company, the result of which is that a third party that is not an affiliate of the Company or its stockholders (or a group of third parties not affiliated with the Company or its stockholders) immediately prior to such transaction acquires or holds capital stock of the Company representing a majority of the Company’s outstanding voting power immediately following such transaction; provided that the following events will not constitute a “Change in Control”: (A) a transaction (other than a sale of all or substantially all of the Company’s assets) in which the holders of the voting securities of the Company immediately prior to the merger or consolidation hold, directly or indirectly, a majority of the voting securities in the successor corporation or its parent immediately after the merger or consolidation; (B) a sale, lease, exchange or other disposition in one transaction or a series of related transactions of all or substantially all of the Company’s assets to an affiliate of the Company; (C) an initial public offering of, or other financing involving, any of the Company’s securities; (D) a reincorporation of the Company solely to change its jurisdiction; or (E) a transaction undertaken for the primary purpose of creating a holding company that will be owned in substantially the same proportion by the persons who held the Company’s securities immediately before such transaction.

 

“Change in Control Period” means the period beginning upon the consummation of a Change in Control and ending twelve (12) months thereafter.

 

“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Compensation Committee” means the Compensation Committee of the Board.

 

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“Good Reason” means that one or more of the following events occur without the Executive’s consent: (i) the material diminution in the Executive’s responsibilities, authority and function; or (ii) a reduction in the Executive’s base salary or annual bonus opportunity, other than an across-the-board reduction that affects other similarly situated Executives of the Company on a proportionate basis (which such reduction will be disregarded when determining the amount of payments due following a termination of employment for Good Reason); or (iii) a requirement by the Company that the Executive relocate his or her principal location of employment to a location that is more than fifty (50) miles from his or her principal work location at the time of the consummation of the applicable Change in Control; provided, however, that, (a) an event will not give rise to a termination for Good Reason, unless the Executive has notified the Company in writing within sixty (60) days of the initial occurrence of such event, the Company has failed to correct the event within a period of not less than thirty (30) days after the Company’s receipt of such written notice (the “Cure Period”), and the Executive actually terminates employment with the Company within thirty (30) days of the Cure Period, and (b) the suspension of an Executive’s title and authority while on administrative leave due to the administrator’s reasonable, good faith belief that the Executive has engaged in misconduct, whether or not the suspected misconduct constitutes Cause, will not be considered Good Reason.

 

“Qualifying Termination” means an involuntarily termination without Cause (which, for the avoidance of doubt, will not include a termination due to an Executive’s disability or death) or a voluntarily termination for Good Reason during the Change in Control Period, provided that a termination of the employment of an Executive in connection with a sale of all or substantially all of the Company’s assets will not be considered a Qualifying Termination if the Executive is offered comparable employment by the Company or its successors, defined as a position having a comparable role in the purchaser of such assets (or any of its affiliates) with similar or greater span of responsibility and with comparable compensation and benefits opportunities, regardless of whether the Executive accepts such offer of employment.

 

“Release” means a general release in favor of the Company, its affiliates and their respective officers in a form that the Company provides to the Eligible Executive around the time of the Qualifying Termination.

 

7Exhibit 10.23

 

SIGILON THERAPEUTICS, INC.

2020 CASH INCENTIVE PLAN

 

1.                                      DEFINED TERMS

 

Exhibit A, which is incorporated by reference, defines certain terms used in the Plan and sets forth operational rules related to those terms.

 

2.                                      PURPOSE

 

The Plan has been established to advance the interests of the Company by providing for the grant of cash-based incentive Awards to Participants that will attract, retain, and reward such persons and incentivize them to attain key Company performance criteria and metrics.

 

3.                                      ADMINISTRATION

 

The Plan will be administered by the Administrator.  The Administrator has discretionary authority, subject only to the express provisions of the Plan, to administer and interpret the Plan and any Award; to determine eligibility for and grant Awards; to adjust the performance criterion or criteria applicable to Awards; to determine, modify or waive the terms and conditions of any Award; to prescribe forms, rules and procedures relating to the Plan and Awards; and to otherwise do all things necessary or desirable to carry out the purposes of the Plan or any Award.  Determinations of the Administrator made with respect to the Plan or any Award are conclusive and bind all persons.

 

4.                                      ELIGIBILITY; PARTICIPATION

 

The Administrator may select Participants from among executive officers and key employees of the Company and its subsidiaries.

 

5.                                      GRANT OF AWARDS

 

A Participant who is granted an Award will be entitled to a payment, if any, in respect of the Award only if all conditions to payment have been satisfied in accordance with the Plan and the terms of the Award.  By accepting (or being deemed to have accepted) an Award, the Participant agrees or will be deemed to have agreed to the terms and condition of the Award and the Plan.  The Administrator will select the Participants, if any, who receive Awards for each Performance Period and, for each Award, will establish the following:

 

(a)                                 the Performance Criterion or Criteria applicable to the Award;

 

(b)                                 the amount or amounts that will be payable (subject to adjustment in accordance with Section 6) if the performance criterion or criteria are achieved in whole or in part; and

 

(c)                                  such other terms and conditions as the Administrator determines with respect to the Award.

 

 

6.                                      DETERMINATION OF PERFORMANCE; AMOUNTS PAYABLE UNDER AWARDS

 

As soon as practicable after the end of the applicable Performance Period, the Administrator will determine whether and to what extent, if at all, the performance criterion or criteria applicable to each Award granted for such Performance Period have been satisfied.  The Administrator will then determine the amount payable, if any, under each Award.  The Administrator may, in its sole discretion and with or without specifying its reasons for doing so, after determining the amount that would otherwise be payable in respect of any Award, adjust the actual payment, if any, to be made with respect to such Award.  The Administrator may exercise the discretion described in the immediately preceding sentence either in individual cases or in ways that affect more than one Participant.  In each case, the Administrator’s discretionary determination, which may affect different Awards differently, is conclusive and binds all persons.

 

7.                                      PAYMENTS UNDER AWARDS

 

The Administrator will determine the payment dates for Awards under the Plan.  Except as otherwise determined by the Administrator or set forth in an effective individual employment or other written agreement or policy with respect to a Participant:

 

(a)                                 all payments under the Plan will be made, if at all, not later than March 15th of the calendar year immediately following the calendar year in which the Performance Period ends; provided, however, that the Administrator may authorize elective deferrals of any Award payments in accordance with the deferral rules of Section 409A;

 

(b)                                 payment will not be made with respect to an Award unless the Participant has remained employed with the Company and its subsidiaries through the date of payment; and

 

(c)                                  awards under the Plan are intended to qualify for exemption from Section 409A of the Code and shall be construed and administered accordingly.

 

8.                                      TAX WITHHOLDING; LIMITATION ON LIABILITY

 

All payments under the Plan will be reduced by all tax and other amounts required to be withheld with respect to the payment.  Any amounts withheld pursuant to this Section 8 will be treated as though such payment had been made directly to the Participant.

 

9.                                      AMENDMENT AND TERMINATION

 

The Administrator may at any time or times amend the Plan or any outstanding Award for any purpose which may at the time be permitted by applicable law, and may at any time terminate the Plan as to any future grants of Awards.

 

10.                               RECOVERY OF COMPENSATION

 

The Administrator may provide in any case that any outstanding Award and any amounts received in respect of any Award will be subject to forfeiture and disgorgement to the Company, with interest and other related earnings, if the Participant to whom the Award was granted is not in compliance with any provision of the Plan or any applicable Award, or any non-competition,

 

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non-solicitation, no-hire, non-disparagement, confidentiality, invention assignment or other restrictive covenant by which he or she is bound.  In addition, each Award will be subject to any policy of the Company or any of its affiliates that provides for forfeiture, disgorgement or clawback with respect to incentive compensation that includes Awards under the Plan and will be further subject to forfeiture and disgorgement to the extent required by law or applicable stock exchange listing standards, including, without limitation, Section 10D of the Securities Exchange Act of 1934, as amended.  Each Participant, by accepting (or being deemed to have accepted) an Award under the Plan, agrees or will be deemed to have agreed to the provisions of this Section 10 and any clawback, recoupment or similar policy of the Company or any of its subsidiaries and further agrees (or will be deemed to have further agreed) to cooperate fully with the Administrator to effectuate any forfeiture or disgorgement described in this Section 10.  Neither the Administrator nor the Company nor any other person, other than the Participant, will be responsible for any adverse tax or other consequences to a Participant that may arise in connection with this Section 10.

 

11.                               MISCELLANEOUS

 

(a)                                 Waiver of Jury Trial.  By accepting or being deemed to have accepted an Award under the Plan, each Participant waives (or will be deemed to have waived), to the maximum extent permitted under applicable law, any right to a trial by jury in any action, proceeding or counterclaim concerning any rights under the Plan or any Award, or under any amendment, waiver, consent, instrument, document or other agreement delivered or which in the future may be delivered in connection therewith, and agrees (or will be deemed to have agreed) that any such action, proceedings or counterclaim will be tried before a court and not before a jury.  By accepting or being deemed to have accepted an Award under the Plan, each Participant certifies that no officer, representative, or attorney of the Company has represented, expressly or otherwise, that the Company would not, in the event of any action, proceeding, or counterclaim, seek to enforce the foregoing waivers.  Notwithstanding anything to the contrary in the Plan, nothing herein is to be construed as limiting the ability of the Company and a Participant to agree to submit any dispute arising under the terms of the Plan or any Award to binding arbitration or as limiting the ability of the Company to require any individual to agree to submit such disputes to binding arbitration as a condition of receiving an Award hereunder.

 

(b)                                 Limitation of Liability.  Notwithstanding anything to the contrary in the Plan or any Award, neither the Company, nor any of its subsidiaries, nor the Administrator, nor any person acting on behalf of the Company, any of its subsidiaries, or the Administrator, will be liable to any Participant or to any other person by reason of any acceleration of income, any additional tax, or any penalty, interest or other liability asserted by reason of the failure of an Award to satisfy the requirements of Section 409A or by reason of Section 4999 of the Code, or otherwise asserted with respect to any Award.

 

(c)                                  Unfunded Plan.  The Company’s obligations under the Plan are unfunded, and no Participant will have any right to specific assets of the Company in respect of any Award.  Participants will be general unsecured creditors of the Company with respect to any amounts due or payable under the Plan.

 

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(d)                                 Governing Law.  Except as otherwise provided by the express terms of an Award, the domestic substantive laws of the Commonwealth of Massachusetts govern the provisions of the Plan and of Awards under the Plan and all claims or disputes arising out of or based upon the Plan or any Award under the Plan or relating to the subject matter hereof or thereof, without giving effect to any choice or conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction.

 

(e)                                  Jurisdiction.  By accepting (or being deemed to have accepted) an Award, each Participant agrees or will be deemed to have agreed to (i) submit irrevocably and unconditionally to the jurisdiction of the federal and state courts located within the geographic boundaries of the United States District Court for the District of Massachusetts for the purpose of any suit, action or other proceeding arising out of or based upon the Plan or any Award; (ii) not commence any suit, action or other proceeding arising out of or based upon the Plan or any Award, except in the federal and state courts located within the geographic boundaries of the United States District Court for the District of Massachusetts; and (iii) waive, and not assert, by way of motion as a defense or otherwise, in any such suit, action or proceeding, any claim that he or she is not subject personally to the jurisdiction of the above-named courts, that his or her property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that the Plan or any Award or the subject matter thereof may not be enforced in or by such court.

 

(f)                                   Other Compensation Arrangements.  The existence of the Plan or the grant of any Award will not affect the right of the Company or any of its subsidiaries to grant any person bonuses or other compensation in addition to Awards under the Plan.

 

(g)                                 Rights Limited.  Nothing in the Plan or any Award will be construed as giving any person the right to be granted an Award or to continued employment or service with the Company or any of its subsidiaries.  The loss of any Award will not constitute an element of damages in the event of a termination of a Participant’s employment for any reason, even if the termination is in violation of an obligation of the Company or any of its subsidiaries to the Participant.

 

(h)                                 Effective Date.  The Plan will be effective upon adoption of the Plan by the Administrator and will supersede and replace the Company’s annual cash bonus program with respect to awards granted to eligible executive officers and employees for fiscal years beginning after the date of adoption.

 

[The remainder of this page is intentionally left blank.]

 

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EXHIBIT A

 

Definitions

 

The following terms, when used in the Plan, have the meanings and are subject to the provisions set forth below:

 

“Administrator”:  The Compensation Committee, except with respect to such matters that are not delegated to the Compensation Committee by the Board (whether pursuant to committee charter or otherwise).  The Compensation Committee (or the Board, with respect to such matters over which it retains authority under the Plan or otherwise) may delegate (i) to one or more of its members (or one or more other members of the Board) such of its duties, powers and responsibilities as it may determine; (ii) to one or more officers of the Company the power to grant Awards to the extent permitted by applicable law; and (iii) to such employees or other persons as it determines such ministerial tasks as it deems appropriate.  For purposes of the Plan, the term “Administrator” will include the Board, the Compensation Committee, and the person or persons delegated authority under the Plan to the extent of such delegation, as applicable.

 

“Award”:  A cash bonus award that is granted to a Participant with respect to a Performance Period.  An Award opportunity may be expressed as a percentage of the Participant’s base salary, as a fixed dollar amount, or in such other form determined by the Administrator.

 

“Board”:  The board of directors of the Company.

 

“Code”:  The U.S. Internal Revenue Code of 1986, as from time to time amended and in effect, or any successor statute as from time to time in effect.

 

“Company”:  Sigilon Therapeutics, Inc., a Delaware corporation.

 

“Compensation Committee”:  The compensation committee of the Board.

 

“Participant”:  A person who is granted an Award under the Plan.

 

“Performance Criteria”:  Specified criteria, other than the mere continuation of employment or the mere passage of time, the satisfaction of which is a condition for the grant, exercisability, vesting, or full enjoyment of an Award.  A Performance Criterion and any targets with respect thereto need not be based upon an increase, a positive or improved result, or avoidance of loss and may be applied to a Participant individually, or to a business unit or division of the Company or to the Company as a whole.  A Performance Criterion may also be based on individual performance and/or subjective performance criteria.  The Administrator may provide that one or more of the Performance Criteria applicable to such Award will be adjusted in a manner to reflect events (for example, but without limitation, acquisitions or dispositions) occurring during the Performance Period that affect the applicable Performance Criterion or Criteria.

 

“Performance Period”:  A specified performance period, consisting of the Company’s fiscal year or such other period as the Administrator determines.

 

A-1

 

“Plan”:  The Sigilon Therapeutics, Inc. 2020 Cash Incentive Plan, as from time to time amended and in effect.

 

“Section 409A”:  Section 409A of the Code and the regulations thereunder.

 

A-2

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