Adicet Bio, Inc.
May 17, 2018
Stewart E. Abbot
Adicet Bio, Inc., a Delaware corporation (the Company), is pleased to make you an offer of employment on the following terms and conditions:
1. Position and Duties. You will serve as SVP, Chief Scientific Officer and shall perform such duties as are ordinary, customary and necessary in such role. You will report initially to Companys Chief Executive Officer and thereafter to such person as the Company may designate. Your start date with the Company shall be June 25, 2018, or such earlier date as agreed to by you and the Companys Chief Executive Officer. You shall devote your full business time, skill and attention to the performance of your duties on behalf of the Company. Without the prior written consent of the Companys Chief Executive Officer, you will not engage in other employment or in any activities that could interfere with the performance of your duties or your availability to perform such duties or that will adversely affect, or negatively reflect upon, the Company or that would be detrimental to the interests of the Company.
2. Compensation and Benefits.
| ||a) || |
Salary. The Company agrees to pay you an annual salary of $365,000 (Base Salary), less all required deductions and withholdings, payable as earned in accordance with the Companys customary payroll practices.
| ||b) || |
Performance Bonus. You will be eligible to earn an annual performance bonus of up to 35% of your Base Salary, based on achievement of performance targets established by the Company. The amount of any such bonus will be determined in the sole discretion of the Company. You must be employed with the Company on the date such bonus is paid in order to be eligible for any bonus payment. Such bonus will be pro-rated for any partial year of employment.
| ||c) || |
Sign-On Bonus. The Company agrees to pay you a sign-on bonus of $275,000 in the aggregate, less all required deductions and withholdings (the Sign-On Bonus), which Sign-On Bonus shall be payable in two tranches and subject to the following terms:
The initial tranche of the Sign-On bonus shall be for $137,500, less all required deductions and withholdings, and shall be payable upon your first payroll in accordance with the Companys customary payroll practices.
The final tranche of the Sign-On Bonus shall be the remaining sum of $137,500, less all required deductions and withholdings, and shall be payable within 45 days of the six (6) month anniversary of your start date in accordance with the Companys customary payroll practices.
To receive the final tranche of the Sign-On bonus, you must be employed with the Company on the six (6) month anniversary of your start date. You agree to repay (i) the full amount of your Sign-On Bonus to the Company if you voluntarily terminate your employment prior to the twelve (12) month anniversary of your start date and (ii) 50% of your Sign-On Bonus to the Company if you voluntarily terminate your employment on or after the twelve (12) month anniversary of your start date and prior to the twenty-four (24) month anniversary of your start date.
| ||d) || |
Stock Options. Subject to approval of the Companys Board of Directors (the Board), you will receive an option to purchase 683,800 shares of the Companys common stock (the Option) pursuant to the Companys 2015 Stock Incentive Plan. The per share exercise price of the Option will be equal to the per share fair market value of the Companys common stock on the date of grant, as determined by the Board. The Option will be contingent upon you executing the Companys standard stock option agreement. So long as you continue in service with the Company, the Option will vest and become exercisable with respect to 25% of the shares subject to the Option on the one-year anniversary of your start date, and with respect to the balance, in thirty-six (36) equal monthly installments upon your completion of each additional month of service thereafter.
| ||e) || |
Benefits. You will be eligible to participate in regular health insurance, vacation, and other employee benefit plans established by the Company for its employees from time to time on substantially the same terms as are made available to employees of the Company generally, provided you are eligible under (and subject to all provisions of) the plan documents governing those plans. You will be eligible to participate in retention, change in control or similar plans or programs (if any), as are made available to similarly situated executives of the Company, provided you are eligible under (and subject to all provisions of) the terms governing those plans or programs.
| ||f) || |
Commuting and Lodging Expenses. The Company will provide reimbursement for reasonable travel and lodging expense of up to $6,000 per month (for up to two years from your start date) related to your travel back and forth from San Diego, California to the San Francisco Bay Area to provide services under this Agreement, upon submission of proper vouchers and documentation in accordance with the Companys expense reimbursement policy (Commuting Expenses). If you choose to relocate permanently (a Permanent Relocation), the Company will make a lump sum payment to you to cover Reasonable Moving Expenses (as defined below) of up to a maximum of $60,000 (the Relocation Reimbursement); provided, however, that if you are terminated for Cause (as defined below) or resign other than for Good Reason (as defined below) within
| || six (6) months of such Relocation Reimbursement, you shall repay to the Company such Relocation Reimbursement. The Relocation Reimbursement shall be paid within thirty (30) days after you have submitted to the Company such documentation supporting such reimbursement as is required under the Companys generally applicable policies regarding same. Following any Permanent Relocation, you shall no longer be eligible for reimbursement of any Commuting Expenses. For purposes of this Agreement, Reasonable Moving Expenses shall mean your actual out of pocket expenses (but not, for the avoidance of doubt, any loss on sale, real estate-related taxes or attorneys fees) related to (A) the disposition of your then current principal residence, (B) relocation of your principal residence to a location within seventy-five (75) miles of your then current principal place of work for the Company, (C) house-hunting trips related to such relocation and (D) other moving expenses incurred to relocate your household goods, furnishings, and personal belongings from your then current residence to your new residence. |
| ||g) || |
Other Expenses. The Company will reimburse you for all reasonable and necessary expenses incurred by you in connection with the Companys business, in accordance with any applicable policy established by the Company from time to time.
3. At-Will Employment. You will be an at-will employee of the Company, which means that the employment relationship can be terminated by either you or the Company for any reason, at any time, with or without prior notice and with or without cause. Any statements or representations to the contrary should be regarded by you as ineffective. Any modification or change in the at-will employment status may only occur by way of a written agreement signed by you and the Companys Chief Executive Officer.
| ||a) || |
Severance. Except in situations where your employment is terminated (1) by the Company for Cause (as defined below) or as a result of your death or Disability (as defined below), or (2) by you other than for Good Reason (as defined below), you will be eligible to receive the following severance benefits (collectively, the Severance Benefits):
| ||(i) || |
An amount equal to six (6) months of your then-current Base Salary, less standard withholdings for tax and social security purposes, payable in six (6) equal monthly installments commencing within seventy (70) days following the date of termination of employment on the first payroll date following the date the Release (as defined below) becomes irrevocable (with the first payment including any installments that otherwise would have been paid between the date of termination and the date of such first installment); provided, however, that if the seventy (70) day period described above spans calendar years, the payments will commence in the second calendar year.
| ||(ii) || |
Subject to your timely election under COBRA, payment of your
| ||(iii) || |
Good Reason means any of the following events if (A) such event is affected without your consent, (B) you provide written notice to the Company that such event constitutes Good Reason within thirty (30) days of the occurrence thereof, (C) you provide the Company with a period of twenty (20) days to cure such event, and (D) the Company fails to cure such event within that period: (1) a change in your position with the Company which materially and substantially reduces your level of responsibility or duties; provided, however, that if the Company is being acquired and made part of a larger entity, a change in your position shall not constitute Good Reason if such change does not result in a material and substantial reduction in your level of responsibility or duties with respect to the Companys business operations (whether as a subsidiary, business unit, division or otherwise of the acquirer) following such acquisition; (2) a material reduction in your Base Salary, except for reductions that are comparable to reductions generally applicable to similarly situated executives of the Company; or (3) a relocation of your principal place of employment by more than seventy five (75) miles from the Company s current headquarters.
5. Representations and Warranties. You hereby represent and warrant as follows:
| ||a) || |
Neither your execution and delivery of this letter agreement nor the performance of your duties and other obligations hereunder violate or will violate any statute or law or conflict with or constitute a default or breach of any covenant or obligation, including without limitation any non-competition restrictions, under any prior employment agreement, contract, or other instrument to which you are a party or by which you are bound (whether immediately, upon the giving of notice or lapse of time or both).
| ||b) || |
You have the full right, power and legal capacity to enter and deliver this letter agreement and to perform your duties and other obligations hereunder. This letter agreement constitutes the legal, valid and binding obligation of you enforceable against you in accordance with its terms. No approvals or consents of any persons or entities are required for you to execute and deliver this letter agreement or perform your duties and other obligations hereunder.
6. Conditions to Employment. This offer of employment is contingent upon, and your employment shall be subject to you:
| ||a) || |
Executing the Companys form of Employee Proprietary Information and Invention Assignment Agreement attached hereto as Exhibit A, which, among other things, prohibits unauthorized use or disclosure of the Companys proprietary information;
| ||b) || |
Satisfying the requirements of the Immigration Control and Reform Act of 1986, which may be accomplished by showing your proof of right to work in the U.S. within three days of commencing employment (e.g., an original drivers license and social security card, or a passport).
| ||c) || |
Satisfactorily completing a background check investigation.
| ||d) || |
Notwithstanding anything to the contrary, this offer may be withdrawn by the Company at any time by the Companys Chief Executive Officer prior to the execution of this letter agreement by you.
Please indicate your acceptance to the foregoing terms by signing this letter agreement where indicated below and returning it to me not later than May 23, 2018. This letter agreement sets forth our entire agreement and understanding regarding the terms of your employment with the Company and supersedes any prior representations or agreements, whether written or oral. This letter agreement may not be modified in any way except in a writing signed by an officer of the Company and you.
We look forward to you accepting our offer and becoming part of the Companys team.
| || |
|Adicet Bio, Inc.|
|By: || || |
/s/ Carrie Krehlik
|Name: || ||Carrie Krehlik|
|Title: || ||SVP and Chief Human Resource Officer|
| || |
|AGREED TO AND ACCEPTED BY:|
|By: || || |
/s/ Stewart E. Abbot
|Name: || ||Stewart E. Abbot|
|Date: || ||May 23, 2018|
EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS ASSIGNMENT AGREEMENT