SEC Contract Filing

Filing Date: 2017-03-20

Document Content:
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<TYPE>EX-10.4
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<DESCRIPTION>EX-10.4
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.4 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>VIA</U><U> </U><U>HAND</U><U> </U><U>DELIVERY</U> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March&nbsp;19, 2017 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christopher D.T. Guiffre </P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">Re:</TD>
<TD ALIGN="left" VALIGN="top"><U>Retention Agreement</U> </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Chris: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">As you know, Cerulean Pharma, Inc. (the &#147;Company&#148;) is exploring the possibility of a number of business opportunities and
transactions. We recognize and appreciate the contributions you have made to the Company during your employment and want you to remain committed to and focused on the tasks that you are assigned during this time. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Accordingly, in lieu of providing you with any of the post-employment separation benefits set forth in the Amended and Restated Employment
Agreement between you and the Company dated March&nbsp;27, 2015 (the &#147;Employment Agreement&#148;), the Company has determined that you will be eligible to receive (i)&nbsp;a retention bonus payment equal to six (6)&nbsp;months of pay at your
current base salary rate (the &#147;Retention Amount&#148;), (ii) a lump sum severance payment equal to six (6)&nbsp;months of pay at your current base salary rate (the &#147;Severance Payment&#148;), and (iii)&nbsp;an additional lump sum payment to
assist you with the costs of obtaining health insurance in the amount of (x)&nbsp;the Company&#146;s current monthly contribution to Company-provided health and dental insurance coverage currently in effect with respect to your current coverage
elections multiplied by (y)&nbsp;twelve (12) (the &#147;Health Assistance Payment&#148;), in each case (i)-(iii) payable at the time and on the conditions set forth below and less all applicable taxes and withholdings, provided that: (a)&nbsp;your
employment with the Company is not terminated by the Company for Cause (as defined below) or, for at least six (6)&nbsp;months following the date of this letter agreement, by you for any reason without the Company&#146;s agreement; (b)&nbsp;you
execute and deliver to the Company no later than March 23, 2017 the Release of Claims Agreement attached hereto as Exhibit&nbsp;A (the &#147;Release Agreement&#148;); and (c)&nbsp;you execute and deliver to the Company on, but not before, your last
day of employment, the Reaffirmation of Release of Claims Agreement attached hereto as Exhibit&nbsp;B (the &#147;Reaffirmation&#148;). In the event the end of your employment occurs in connection with a Change in Control of the Company, as defined
in Exhibit C, (1)&nbsp;your Severance Payment shall be calculated by replacing the words &#147;six (6)&nbsp;months&#148; with the words &#147;twelve (12)&nbsp;months&#148; in clause (ii)&nbsp;above, (2) you shall receive a lump sum bonus payment
representing 1.5 times your 2016 cash performance bonus, equal to $360,000 less all applicable taxes and withholdings (the &#147;Severance Bonus&#148;), and (3)&nbsp;your Health Assistance Payment shall be calculated by replacing the words
&#147;twelve (12)&#148; with the words &#147;eighteen (18)&#148; in clause (iv)(y) above. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In addition, pursuant to the letter from the
Company dated November, 8, 2016 (the &#147;November 2016 Letter&#148;), you became eligible for a retention bonus payment upon a Change in Control of the Company (as defined in Exhibit C) to the extent that you remained employed with the Company
upon the closing of such Change in Control, on the terms and subject to the conditions in the November 2016 </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Cerulean Pharma Inc. | 35
Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU </P>

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Letter (the &#147;CIC Bonus&#148;).&nbsp;Notwithstanding that your last day of employment (the &#147;Separation Date&#148;) may be prior to any Change in Control of the Company, in the discretion
of the Board of Directors, you may nevertheless be eligible for a CIC Bonus of up to $125,525.63, payable on the terms and subject to the conditions determined by the Board. </P>
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