SEC Contract Filing

Filing Date: 2019-11-07

Document Content:
<DOCUMENT>
<TYPE>EX-10.31
<SEQUENCE>2
<FILENAME>pti-ex1031_26.htm
<DESCRIPTION>EX-10.31
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:11pt;">&nbsp;</p>
<p style="text-align:right;margin-bottom:6pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Calibri;font-size:12pt;font-style:normal;text-transform:none;font-variant: normal;">Exhibit 10.31</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Calibri;font-size:12pt;font-style:normal;text-transform:none;font-variant: normal;">SEPARATION AGREEMENT AND GENERAL RELEASE</p>
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<p style="margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-family:Calibri;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_cp_text_2_102"></a><a name="_cp_text_1_103"></a><a name="_cp_text_4_106"></a>This Separation Agreement and General Release (the &#8220;<font style="text-decoration:underline;">Agreement</font><a name="_cp_text_2_102"></a><a name="_cp_text_1_103"></a>&#8221;) is entered into by and between Proteostasis Therapeutics, Inc. (the &#8220;<font style="text-decoration:underline;">Company</font><a name="_cp_text_4_106"></a>&#8221;) and Po-Shun Lee (the &#8220;<font style="text-decoration:underline;">Executive</font>&#8221; and, together with the Company, the &#8220;<font style="text-decoration:underline;">Parties</font>&#8221;).&nbsp;&nbsp;This Agreement is effective as of the Effective Date, as defined below.&nbsp;&nbsp;Capitalized terms that are not otherwise defined in this Agreement shall have the meanings as defined in the Amended and Restated Employment Agreement dated October 21, 2016 between the Parties (the &#8220;<font style="text-decoration:underline;">Employment Agreement</font>&#8221;).</p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-family:Calibri;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">WHEREAS, pursuant to the Employment Agreement, the Executive has an opportunity to receive certain pay, benefits and other consideration in the event of termination of his employment by the Company without &#8220;Cause&#8221; or his resignation for &#8220;Good Reason,&#8221; each as defined in the Employment Agreement, subject to the Executive&#8217;s timely execution and non-revocation of a Separation Agreement and Release in substantially the form attached to the Employment Agreement; </p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-family:Calibri;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">WHEREAS, the Parties engaged in discussions concerning possible amendments to the Employment Agreement to provide the Executive with additional consideration opportunities in the event of a termination of his employment without Cause or his resignation for Good Reason;</p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-family:Calibri;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">WHEREAS, before the execution of an amended Employment Agreement, the Company decided to terminate the Executive&#8217;s employment without Cause; and</p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-family:Calibri;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">WHEREAS, the Company remains prepared to offer additional consideration consistent with the substantive terms proposed by the Company as amendments to the Employment Agreement;</p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-family:Calibri;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">NOW, THEREFORE, in consideration of its mutual covenants and other consideration set forth herein, the Parties hereby agree as follows:</p>
<p style="text-align:left;margin-bottom:12pt;margin-top:0pt;margin-left:7.69%;text-indent:7.69%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1.<font style="margin-left:36pt;"></font><font style="text-decoration:underline;font-family:Calibri;">Enhanced Severance Terms</font><font style="font-family:Calibri;">.&nbsp;&nbsp;In place of the terms set forth in Sections 4(c) and 5 of the Employment Agreement and in addition to the payment and provision of the Accrued Benefit as defined in Section 4(a) of the Employment Agreement, the Company shall pay and otherwise provide to the Executive the following payments, benefits and other terms as set forth in this Section 1.&nbsp;&nbsp;For the avoidance of doubt, if the Company has tendered to the Executive a Separation and Release Agreement substantially in the form of Exhibit A to the Employment Agreement (the &#8220;</font><font style="text-decoration:underline;font-family:Calibri;">EA Separation Agreement</font><font style="font-family:Calibri;">&#8221;), this shall replace such EA Separation Agreement and the EA Separation Agreement shall have no force and effect regardless of whether it has been or is subsequently executed.&nbsp;&nbsp;</font></p>
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<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ACTIVE/100310529.4&nbsp;&nbsp;</p>
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