Document:

alny-ex104_133.htm

Exhibit 10.4

 

 

 

 

April 18, 2017

Manmeet Soni

90 Wayne Road

Newton, MA 02459

Dear Manmeet:

I am pleased to offer you the position of Senior Vice President, Chief Financial Officer with Alnylam Pharmaceuticals, Inc. reporting to John M. Maraganore, Chief Executive Officer.

Base Salary

You will receive a bi-weekly salary of $18,846.16, equivalent to $490,000.16 annually. Alnylam currently has 26 pay periods annually with payments on Fridays or on the preceding day in the event of a holiday.  This position is exempt, and thus not eligible for overtime pay.

Alnylam conducts an annual performance and merit review process.  You will be eligible for a performance  and a pro-rated merit review next year if your employment begins on or before October 1st of this year.  If your employment date falls between October 2nd and December 31st, you will become eligible for review in January of the following calendar year. Notwithstanding the foregoing, the Executive Compensation review will occur in the fourth quarter of 2017 or the first quarter of 2018  to ensure competitive compensation positioning. 

Discretionary Sign-On Bonus

You will receive an initial sign-on bonus of $100,000.00 (the “Initial Bonus”) on the first regularly scheduled pay period following your first 30 days of employment and an additional $50,000.00 bonus (the “Subsequent Bonus”) on the first regularly scheduled pay period following the one-year anniversary of your employment start date.  In the event you voluntarily terminate your employment with Alnylam or you are terminated by Alnylam for Cause, within twelve (12) months of the (i) the Intial Bonus or (ii) the Subsequent Bonus, you will be required to repay the full gross amount of either the Intial Bonus (if you leave within the first twelve (12) months), or the Subsequent Bonus, if you leave within months twelve (12) through twenty-four (24).  Any such repayment will be required within 30 days following your last day of employment with Alnylam and you agree that any such repayment amount may be deducted from monies owed to you by the Company, including your last regular paycheck or any discretionary bonus payments due.

For purposes of this agreement “Cause" shall mean your substantial and continuing failure to perform your assigned duties (other than any such failure resulting from incapacity due to injury or physical or mental illness), which failure is not cured within 30 days after a written demand for substantial performance is delivered to you by the Company and you have had a reasonable opportunity, after receipt of such written 

 

300 Third Street  ●  Cambridge MA, 02142   ●  main 617.551.8200   ●  fax 617.551.8201

 

 

demand, to be heard, or your conviction of a felony (other than unintentional motor vehicle felonies), or your engaging in gross misconduct which is materially and demonstrably injurious to the Company.

Annual Incentive Program

You will be eligible to participate in Alnylam’s Annual Incentive Program consistent with incentive plan guidelines adopted by the Compensation Committee for 2017. Your incentive target will be 40% of your annual base salary and is subject to achievement of Company and individual performance goals.  You will be eligible for a pro-rated bonus if your employment date occurs on or before October 1st of this year.  

Equity Awards

You will be granted a non-qualified stock option to purchase 125,000 shares of the Company’s common stock on your first day of employment.  The stock option will be made as inducement grant under NASDAQ Stock Market Rule 5635(c)(4). The exercise price shall be equal to the closing price of the common stock on the date of grant.  The option will vest over four years at the rate of 25% after twelve months of full time active employment and then an additional 6.25% for each additional quarter of full time active employment until the fourth anniversary of the grant date, when the option will be fully vested.

You will also be granted an additional non-qualified stock option to purchase 25,000 shares of the Company’s common stock on your first day of employment, subject to the same terms as the option described above, with the exception of vesting, which shall be performance-based rather than time-based.  The additional option shall vest upon the later of the one year anniversary of the date of grant and the launch of the Company's first internally developed product; provided that any determination as to whether or not such vesting event has been met shall be made in the sole discretion of the Company’s Compensation Committee and such date of vesting shall be the date so determined by the Committee.          

Benefits

As a regular full time employee, you will be eligible to participate in the Company’s comprehensive benefits program upon hire.  Please see the enclosed Benefit Highlights and 2017 Benefit Guide summary for details.  Alnylam retains the right to modify or cancel any benefits programs.

Business expenses 

All reasonable business-related expenses are reimbursed (including phone, Internet, car service, IPad and business-related travel) in accordance with the Company’s travel and expense policy in effect from time to time. 

Termination 

While we do not have a formal severance plan nor a Change of Control plan, we would however follow past practice of providing severance, subject to Compensation Committee approval, provided any such termination is not for Cause. 

 

 

Relocation  

In addition, you will be reimbursed for reasonable relocation expenses as follows:

• Temporary housing.  Temporary housing, if needed, will be reimbursed for up to three (3) months at $7,500 per month.  You will be reimbursed on a monthly basis per receipt of a monthly invoice.

• Reimbursement of Customary, Non-Recurring Home Purchase Closing Costs.  Alnylam will cover the closing costs related to home purchase, including mortgage origination fees up to 1% mortgage loan amount.  Total costs shall not exceed 3% of the new mortgage loan amount.  Points related to the mortgage interest rate are not covered.

• Movement of house hold goods.  Our relocation provider MoveTrek, will provide the services related to the movement of household goods from your home rental to your permanent residence.  This cost will be covered by Alnylam.

Any relocation expenses listed above that are subject to individual federal and/or state taxation will be adjusted so that any additional tax will be paid by Alnylam on your behalf. 

Contingencies

This offer of employment is contingent upon completion of Alnylam’s standard employment application, a satisfactory background screening and drug screening, reference check and your signed agreement to abide by all the terms and conditions of the Company’s standard Employee Nondisclosure, Noncompetition and Assignment of Intellectual Property Agreement (copy attached).  Until you have received confirmation from Alnylam that all the contingencies described have been met, we advise you not to resign from your current position.

Additionally, in accordance with US Immigration and Naturalization laws, our offer of employment is contingent upon your ability to provide proof of your identity and legal authorization to work in the United States.  Please refer to the enclosed pre-approved document list and bring the appropriate documents with you on your first day of employment.  

We are very excited about having you join our team and look forward to your many contributions to Alnylam’s continued success!  

Sincerely, 

 

/s/ Karen Anderson

 

Karen Anderson

Chief Human Resources Officer

 

 

 

By signing below, the undersigned understands that this offer does not create an express or implied contract of employment for any definite period of time and further agrees that there have been no express or implied representations by Alnylam (or any individual speaking on behalf of Alnylam) regarding the employment offered, other than as set forth expressly herein or, to the extent applicable, as set forth expressly in Alnylam’s employment application.  By signing below, the undersigned also understands that the employment offered is “at will,” meaning that it can be terminated by Alnylam or the employee at any time for any reason. 

 

By signing below, the undersigned represents that his acceptance of employment with Alnylam does not conflict with any obligations of the undersigned to any third party, and the undersigned will not disclose or make available to Alnylam or use for Alnylam’s benefit, any trade secrets or confidential information that is the property of any third party, including without limitation, any former employer, partner, client, customer or supplier.  The undersigned represents that he has provided Alnylam with a copy of every agreement that may bear on the undersigned’s employment with Alnylam, including any noncompetition or employment agreements, and that the undersigned will continue to honor any such agreements.

 

This offer will expire April 20, 2017. 

 

	
Accepted By:
	
  /s/ Manmeet Soni
	
 
	
Date:
	
APR 20, 2017

	
 
	
 

	
Start Date:
	
Target: May 9, 2017Exhibit

Exhibit 10.1

AMTRUST FINANCIAL SERVICES, INC. 
2010 OMNIBUS INCENTIVE PLAN 

RESTRICTED STOCK UNIT AGREEMENT 

AmTrust Financial Services, Inc., a Delaware corporation, (the “Company”), hereby grants restricted stock units (“RSUs”) relating to shares of its common stock, $.01 par value (the “Stock”), to the individual named below as the Grantee (“you”, or the “Grantee”), subject to the vesting conditions set forth in this Agreement. This grant is subject to the terms and conditions set forth in (i) this Agreement, and (ii) the 2010 Omnibus Incentive Plan (the “Plan”). Unless otherwise defined herein, capitalized terms used in this Agreement are defined in the Plan, and have the meaning set forth in the Plan. 

Award of RSUs    

You have been granted ________ RSUs, subject to the terms and conditions of this Agreement and the Plan.

Grant Date

The effective date of this grant of RSUs is _______ ____, 20__ (“Grant Date”).

Vesting Schedule

The RSUs shall vest in four equal installments of 25% on each of the first, second, third and fourth anniversaries of the Grant Date, provided you remain in Service (as defined below) on the vesting date.

“Service” means that you are currently an employee of the Company or an Affiliate, are a member of the Company’s Board of Directors, or are otherwise providing services to the Company or an Affiliate.

RSU Transferability

RSUs may not be transferred, assigned, pledged or hypothecated, whether by operation of law or otherwise, nor may the RSUs be made subject to execution, attachment or similar process.

Forfeiture of Unvested RSUs

Except as specifically provided in this Agreement or as may be provided in other agreements between you and the Company, no additional RSUs will vest after your Service has terminated for any reason and you will forfeit to the Company all of the RSUs that have not yet vested or with respect to which all applicable restrictions and conditions have not lapsed.

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Retirement

If your Service terminates because of your Orderly Retirement (as defined below), the RSUs granted under this Agreement will continue to vest in equal installments on each of the remaining vesting dates in accordance with the vesting schedule set forth above.

For purposes of this Agreement, “Orderly Retirement” shall mean the voluntary termination of your employment with the Company and its Affiliates, provided that:

(i) as of the date of such termination, (a) you are at least 55 years of age and have been employed by the Company for at least 10 years, or (b) you are at least 65 years of age and have been employed by the Company for at least 5 years; 

(ii) you have notified the Company in writing (a) not less than 12 months in advance of the effective date of termination of your employment if you are at least 55 years of age, or (b) not less than 6 months in advance of the effective date of termination of your employment if you are at least 65 years of age; and 

(iii) the Committee (or its delegate), in its discretion, has approved the termination of your employment as an Orderly Retirement, based upon such factors as it shall consider appropriate, which may include (but shall not be limited to) the existence of an approved succession plan for your position, and your compliance (and expected future compliance) with the restrictive covenants set forth in this Agreement and/or the Plan.

Death

If your Service terminates because of your death, or if you die following your Orderly Retirement and prior to the full vesting of the RSUs, all of the outstanding unvested RSUs granted under this Agreement will automatically vest, effective as of the date of your death.

Disability

If your Service terminates because of your Disability (as defined below), all of the outstanding unvested RSUs granted under this Agreement will automatically vest, effective as of the date of your Disability.

For purposes of this Agreement, “Disability” shall mean that the Grantee is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits (for a period of not less than 3 months) under a long-term disability plan of the Company or an Affiliate.

Termination for Cause

If your Service is terminated for Cause (as defined below), then you shall immediately forfeit all rights to your vested (but undelivered) and unvested RSUs and this award shall immediately terminate.

For purposes of this Agreement, “Cause” shall mean (a) willful misconduct or gross negligence; (b) a plea of guilty or conviction of a felony or a crime involving moral turpitude; (c) any act constituting fraud or the misappropriation or embezzlement of money or other property of the Company; and (d) any 

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willful act or course of conduct constituting an abuse of office or authority which has a material adverse impact on the Company’s reputation or financial condition.

Termination without Cause within 12 Months of Change in Control

If your Service is terminated by the Company without Cause within 12 months following the effective date of a “Change in Control,” the Board or the Committee, in its discretion, may accelerate the vesting of all or any portion of this award of RSUs.  Further, in the event that a Change in Control that also constitutes a “change in control event” (within the meaning of Treasury Regulation § 1.409A-3(i)(5)) occurs following your Orderly Retirement and prior to the full vesting of the RSUs, the Board or the Committee, in its discretion, may accelerate the vesting and payment of all of the outstanding unvested RSUs granted under this Agreement, to a time otherwise permitted under Section 409A of the Code, in accordance with the requirements, restrictions and limitations of Treasury Regulation § 1.409A-3(j).

For purposes of this Agreement: “Change in Control” shall mean:

(i) any “person” (as such term is used in Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including any syndicate or group deemed to be a “person” under Section 13(d)(3) of the Exchange Act) other than Barry Zyskind, George Karfunkel, Leah Karfunkel, any of their spouses or lineal descendants, any trust or charitable foundation controlled by any of them or their lineal descendants, any subsidiary or any employee benefit plan of the Company or a subsidiary or former subsidiary, is or becomes a beneficial owner, directly or indirectly, of stock of the Company representing 50% of more of the total voting power of the Company’s then outstanding stock;

(ii) a tender offer (for which a filing has been made with the Securities and Exchange Commission (the “SEC”) that purports to comply with the requirements of Section 14(d) of the Exchange Act, and the corresponding SEC rules) is made for the stock of the Company. In case of a tender offer described in this paragraph (ii), the “Change in Control” will be deemed to have occurred any time during the offer when the person (using the definition in (i) above) making the offer owns or has accepted for payment stock of the Company with 50% or more of the total voting power of the Company's outstanding stock; or

(iii)  individuals who were the Board’s nominees for election as directors of the Company immediately prior to a meeting of the stockholders of the Company involving a contest for the election of directors shall not constitute a majority of the Board following the election.

Share Delivery Pursuant to Vested Units; Withholding Tax

On the vesting date (or as soon as practicable thereafter but in no event after the later of (i) the last day of the calendar year in which the shares vest, or (ii) the date that is 21⁄2 months after the applicable vesting date), at the Company’s option, (a) a brokerage account in your name will be credited with Stock representing the number of shares that vested under this grant (the “Vesting Shares”), or (b) the Company shall physically deliver the Vesting Shares. If the vesting date is not a trading day, the Stock will be delivered on the next trading day. 

The Company will determine the number of the Vesting Shares necessary to cover the statutory minimum amount (or such other amount determined by the Company as will not cause a negative accounting impact to the Company) of federal, state, local, and foreign taxes that the Company is 

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required to withhold with respect to the delivery of the Vesting Shares, rounding up to the nearest whole Share of Stock (the “Withholding Shares”).  By accepting this award of RSUs, you irrevocably authorize and direct the Company to withhold the Withholding Shares from the Vesting Shares at the time of delivery thereof to be used to fund the payment of the withholding taxes and instruct the Company to deliver the remaining Vesting Shares to your account.

If the Company or any Affiliate is required to withhold any federal, state, local or foreign taxes at any time other than upon delivery of Stock under this Agreement, then the Company or Affiliate (as applicable) shall have the right in its sole discretion to (i) require the Grantee to pay or provide for payment of the required tax withholding, or (ii) deduct the required tax withholding from any amount of salary, bonus, incentive compensation or other amounts otherwise payable in cash to the Grantee (other than deferred compensation subject to Section 409A of the Code).

Notwithstanding any other provision of this Agreement to the contrary, if, at the time of the Grantee’s separation from service (within the meaning of Section 409A of the Code), (i) the Grantee is a specified employee (within the meaning of Section 409A of the Code and using the identification methodology selected by the Company from time to time), and (ii) the Company makes a good faith determination that the RSUs constitute deferred compensation (within the meaning of Section 409A of the Code) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A of the Code, in order to avoid taxes or penalties under Section 409A of the Code, then the Company shall not deliver the Stock underlying the vested RSUs on the otherwise scheduled payment date, but such Stock shall instead be delivered on the first business day of the seventh month after such six-month period.

The purchase price for the vested Stock is deemed paid by your prior services to the Company.

Withholding shall only be applicable to employees of the Company.

Forfeiture and Recapture Rights Under Section 10 of the Plan

By accepting this award of RSUs, you acknowledge and agree that the RSUs and the Award Gain (as defined in Section 10 of the Plan) with respect to any Stock delivered hereunder shall be subject to forfeiture and repayment to the Company as provided in Section 10 of the Plan upon the occurrence of a Forfeiture Event (as defined therein), including any violation of the non-competition, non-solicitation or non-disclosure restrictions set out in Section 10 of the Plan.  The provisions of this paragraph and of Section 10 of the Plan shall survive and continue in full force in accordance with their terms notwithstanding any termination of your Service for any reason or the delivery of any Stock pursuant to the RSUs as provided herein.

No Right to Employment

Neither your RSUs nor this Agreement give you the right to be retained by the Company in any capacity and your Service may be terminated at any time and for any reason.

No Shareholder Rights

You have no rights as a shareholder unless and until the Stock relating to the RSUs has been issued to you (or an appropriate book entry has been made). You will not be entitled to receive any dividends or dividend equivalent payments with respect to the RSUs. 

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Applicable Law

This Agreement shall be governed by the laws of the State of New York, with consent to jurisdiction by you in the State of New York or the U.S. District Court for the Southern District of New York.

Adjustments

The number and kind of shares of Stock deliverable pursuant to the RSUs are subject to adjustment as provided in Section 11(c) of the Plan.

Data Privacy

To administer the Plan, the Company may process personal data about you. Such data includes the information provided in this Agreement, other appropriate personal and financial data about you such as home address and business addresses and other contact information, payroll information and any other information deemed appropriate by the Company to facilitate the administration of the Plan.

By accepting this award, you consent to the Company’s processing of such personal data and the transfer of such data outside the country in which you work or are employed, including, with respect to non-U.S. residents, to the United States, to transferees who shall include the Company and other persons designated by the Company to administer the Plan.

Consent to Electronic Delivery

Certain statutory materials relating to the Plan may be delivered to you in electronic form. By accepting this grant, you consent to electronic delivery and acknowledge receipt of these materials, including the Plan and the Plan prospectus.

This Agreement is not a stock certificate or a negotiable instrument. 

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By accepting your grant, you agree to the terms and conditions in this Agreement and in the Plan, and agree that the Plan will control in the event any provision of this Agreement should appear to be inconsistent with the terms and conditions of the Plan.  In particular, and without limiting the foregoing:

		
	•
	You acknowledge that you have read and agree to the forfeiture and repayment provisions of Section 10 of the Plan (the “Restrictive Covenants”).  

		
	•
	You understand that as a condition to your right to realize and retain value from your award of RSUs under this Agreement, you must comply with the terms and conditions of the Restrictive Covenants.  

		
	•
	You agree to timely notify the Company in writing if you have, or reasonably should have, any questions regarding the applicability of the Restrictive Covenants.  

IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year below. 

AMTRUST FINANCIAL SERVICES, INC.

____________________________________        Date: ___________________________
By: Stephen B. Ungar 
Its: General Counsel and Secretary                            

GRANTEE

____________________________________        Date:____________________________
Name:

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