SEC Contract Filing

Filing Date: 2022-02-18

Document Content:
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<TYPE>EX-10.1
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<FILENAME>d309078dex101.htm
<DESCRIPTION>EX-10.1
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>FIRST AMENDMENT </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TO THE
</B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EMPLOYMENT AGREEMENT BETWEEN </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>LYRA THERAPEUTICS, INC. AND MARIA PALASIS </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This Amendment (the &#147;<U>Amendment</U>&#148;) to that certain Employment Agreement between Lyra Therapeutics, Inc., a Delaware corporation
(together with any successor thereto, the &#147;<U>Company</U>&#148;), and Maria Palasis (the &#147;<U>Executive</U>&#148;) dated as of April&nbsp;27, 2020 (the &#147;<U>Employment Agreement</U>&#148;) is made as of this 16th day of February, 2022
(the &#147;<U>Ame</U><U>ndment Date</U>&#148;), by and among the Company and the Executive. Except as set forth in this Amendment, capitalized terms used but not defined herein shall have the meanings ascribed to them in the Employment Agreement.
</P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>WITNESSETH </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS,
the Company anticipates entering into an employment agreement with Harlan Waksal (the &#147;<U>Executive Chair Agreement</U>&#148;), pursuant to which Mr.&nbsp;Waksal will serve as the Executive Chair of the Company; and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, subject to the execution of the Executive Chair Agreement (the &#147;<U>Agreement Execution</U>&#148;), the Company and the Executive
desire to amend the terms of the Employment Agreement as set forth herein; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Executive and the Company (collectively the &#147;<U>Parties</U>&#148;) hereby agree, subject to and effective upon the Agreement Execution, to the following: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1. Section&nbsp;2 of the Employment Agreement is hereby amended to add a new subsection (g)&nbsp;as follows: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(g) <U>Transaction Bonus</U>. In connection with a Change in Control in which the Market Capitalization of the Company equals
or exceeds $750&nbsp;million, Executive shall be entitled to a cash bonus in the amount of 1.0% of the Market Capitalization (the &#147;<U>Transaction Bonus</U>&#148;). The Transaction Bonus shall be payable within thirty (30)&nbsp;days after the
completion of the Change in Control transaction, subject to Executive&#146;s continued employment with the Company through the completion of the Change in Control transaction and execution, within thirty (30)&nbsp;days after the completion of the
Change in Control transaction, of a release of claims in favor of the Company materially consistent with the terms of the release attached as <U>Exhibit B</U> to this Agreement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2. Section&nbsp;4(b) of the Employment Agreement is hereby amended to add a new subclause (iv)&nbsp;as follows: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) any vested and exercisable options held by Executive as of the Date of Termination, will remain outstanding and
exercisable for fifteen (15)&nbsp;months from the Date of Termination (provided that (a)&nbsp;in no event will any such option remain outstanding past the final expiration date set forth in the applicable option award agreement (b)&nbsp;all such
options will in all events remain subject to earlier termination in connection with a corporate transaction or event in accordance with the applicable option award agreement and the 2020 Incentive Award Plan, any equity plan subsequently adopted by
the Company or any successor plan, as applicable). </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3. Section&nbsp;4(c) of the Employment Agreement is hereby amended to replace the <FONT
STYLE="white-space:nowrap">lead-in</FONT> language in its entirety as follows: </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In lieu of the payments and benefits set forth in <U>Section</U><U></U><U>&nbsp;4(b)</U>, in
the event Executive&#146;s employment terminates without Cause pursuant to <U>Section</U><U></U><U>&nbsp;3(a)(iv)</U>, or due to Executive&#146;s resignation with Good Reason pursuant to <U>Section</U><U></U><U>&nbsp;3(a)(v)</U>, in either case,
within three (3)&nbsp;months prior or twelve (12)&nbsp;months following t