employment with us is terminated, or earlier, if he becomes eligible to enroll in a health benefit plan with a new employer.
In the event that Mr. Burgess employment is terminated by us without cause or by Mr. Burgess with good reason, each as defined in
the Burgess Letter Agreement, within twelve (12) months following a change of control, Mr. Burgess will be entitled under the Burgess Letter Agreement to (i) continue receiving his then-current annual base salary for a period of
twelve (12) months following the date his employment is terminated, (ii) receive payment of his target annual bonus for the year in which termination of employment occurred; (iii) continue receiving an amount equal to COBRA premiums
for health benefit coverage on the same terms as were applicable to him prior to his termination for a period of twelve (12) months following the date his employment is terminated, or earlier, if he becomes eligible to enroll in a health
benefit plan with a new employer; and (iv) the automatic vesting of any unvested stock options and other equity awards then held by him on the date his employment is terminated, which options will remain exercisable for the time period set
forth in the applicable grant agreement. The Burgess Letter Agreement also provides a modified economic cutback provision.
Letter
Agreement with John R. Schroer
In connection with our initial hiring of Mr. Schroer as our chief financial officer, we entered
into a letter agreement with him dated May 14, 2018. The letter agreement was amended and restated in March 2020, which we refer to as the Schroer Letter Agreement. The Schroer Letter Agreement provided that Mr. Schroer was entitled to a
base salary of $405,000 during his employment with us and that he was eligible, at our sole discretion, to earn an annual bonus of up to 40% of his base salary.
On December 22, 2020, we announced the departure of Mr. Schroer as our chief financial officer effective as of December 27,
2020, referred to as the Separation Date. In connection with Mr. Schroers departure, on December 27, 2020, we and Mr. Schroer entered into a letter agreement, or the Separation Agreement. Pursuant to the terms of the Separation
Agreement, we agreed to provide certain benefits to Mr. Schroer, including: (i) severance pay of nine months of Mr. Schroers current base salary in accordance with our regular payroll practices; (ii) if Mr. Schroer
timely elects and is eligible to continue receiving group health insurance pursuant to the COBRA law, payment by us, for a period of up to nine months following the Separation Date, for the share of the premiums for such coverage that is
paid for active and similarly situated employees who receive the same type of coverage, unless our provision of such COBRA payments will violate the non-discrimination requirements of applicable law;
(iii) to the extent that we award bonuses for the 2020 calendar year, payment of the discretionary bonus Mr. Schroer would have received for the 2020 calendar year had he remained employed; and (iv) acceleration of vesting of all of
Mr. Schroers unvested and outstanding stock options that would have vested had he remained employed through March 31, 2021.
In order to receive the foregoing benefits, Mr. Schroer executed a general release in our favor and continues to be bound by covenants
contained in his employment agreement and his non-competition, non-solicit, confidentiality and invention assignment agreement, including covenants related to
confidentiality, non-competition, non-solicitation, cooperation and non-disparagement.
Letter Agreement with Richard Wooster, Ph.D.
In connection with our initial hiring of Dr. Wooster as our chief scientific officer in April 2019, we entered into a letter agreement
with him. The letter agreement was amended and restated in March 2020, which we refer to as the Wooster Letter Agreement. Under the Wooster Letter Agreement, Dr. Wooster is an at-will employee, and his
employment with us can be terminated by Dr. Wooster or us at any time and for any reason. The Wooster Letter Agreement provides that Dr. Wooster is entitled to an initial base salary during his employment with us, subject to periodic
review and adjustment and that he is eligible, at our sole discretion, to earn an annual bonus of up to 40% of his base salary.
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