SEC Contract Filing

Filing Date: 2015-10-19

Document Content:
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<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>d53049dex105.htm
<DESCRIPTION>EX-10.5
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<TITLE>EX-10.5</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.5 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>FIRST AMENDMENT TO CHANGE IN CONTROL SEVERANCE AGREEMENT</U> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">THIS FIRST AMENDMENT TO CHANGE IN CONTROL SEVERANCE AGREEMENT (this &#147;<U>Amendment</U>&#148;) is made and entered into this 13th day of
October, 2015 by and between Cempra, Inc., a Delaware corporation with its principal executive offices at 6320 Quadrangle Drive, Suite 360, Chapel Hill, NC 27517 (the &#147;<U>Company</U>&#148;), and David Moore (the &#147;<U>Employee</U>&#148;).
</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, Employee and the Company previously entered into a Change in Control Severance Agreement (the &#147;<U>Severance Agreement</U>&#148;)
as of May&nbsp;23, 2014; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, Employee and the Company wish to amend the Severance Agreement to alter certain provisions regarding
the consideration to be paid to Employee under certain circumstances following a &#147;Change in Control&#148; of the Company; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS,
the Company wishes to protect its investment in its business, employees, customer relationships, and confidential information, by requiring Employee to abide by certain restrictive covenants regarding competition and other matters, each of which is
an inducement to the Company to provide Employee with the benefits described in this Amendment; and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, in light of the foregoing,
Employee and the Company desire to mutually and voluntarily amend the Severance Agreement, effective as of the date set forth above (the &#147;<U>Effective Date</U>&#148;), pursuant to the terms 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, in consideration of the foregoing, the mutual promises herein contained, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.
<U>AMENDMENT TO SECTION 1(d) OF THE SEVERANCE AGREEMENT</U>. Section&nbsp;1 of the Severance Agreement is modified by replacing existing Section&nbsp;1(d)(v) with a new Section&nbsp;1(d)(v) as follows: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(v) The determination by the Company, after a reasonable and good-faith investigation by the Company following a written allegation by another
employee of the Company, that Employee personally engaged in some form of discrimination, harassment or retaliatory conduct prohibited by law (including, without limitation, discrimination based on race, color, religion, sex, national origin, age,
disability or other status protected by law); </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2. <U>AMENDMENT TO SECTION 1(f) OF THE SEVERANCE AGREEMENT</U>. Section&nbsp;1 of the
Severance Agreement is modified by replacing existing Section&nbsp;1(f) with a new Section&nbsp;1(f) as follows: </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) &#147;<U>Good Reason</U>&#148; shall mean any of the following: (i)&nbsp;the
assignment to Employee of duties materially inconsistent with Employee&#146;s position, duties, responsibilities, titles or offices as described herein; (ii)&nbsp;material reduction by the Company of Employee&#146;s duties and responsibilities;
(iii)&nbsp;any reduction or series of reductions in excess of ten percent (10%)&nbsp;by the Company of Employee&#146;s compensation or benefits payable hereunder (it being understood that a reduction of benefits applicable to all employees of the
Company, including Employee, shall not be deemed a reduction of Employee&#146;s compensation package for purposes of this definition); or (iv)&nbsp;a change of more than thirty-five (35)&nbsp;miles in the geographic location at which Employee must
perform services for the Company. Notwithstanding the foregoing, Employee shall not have Good Reason for termination unless Employee gives written notice of termination for Good Reason within thirty (30)&nbsp;days after the event giving rise to Good
Reason occurs, and the Company does not correct the action or failure to act that constitutes the grounds for Good Reason, as set forth in Employee&#146;s notice of termination, within thirty (30)&nbsp;days after the date on which Employee gives
written notice of termination. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3. <U>AMENDMENT TO SECTION 2 OF THE SEVERANCE AGREEMENT</U>. Section&nbsp;2 of the Severance Agreement is
modified by replacing existing Section&nbsp;2(b) with a new Section&nbsp;2(b) as follows: </P>