Attached files
EXHIBIT 10.55
GW UK CHANGE IN CONTROL AND SEVERANCE BENEFIT PLAN
(GW PHARMA LIMITED / GW RESEARCH LIMITED)
PARTICIPATION AGREEMENT – UK Form 2
Name:[●] (Tier 2)
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SECTION 1. |
ELIGIBILITY. |
You have been designated as a Participant eligible to receive Severance Benefits under the GW UK Change in Control and Severance Benefit Plan (the “Plan”), a copy of which is attached as Exhibit A to this Participation Agreement (the “Participation Agreement”).
You will be eligible to receive the Severance Benefits set forth below if you meet all the eligibility requirements set forth in the Plan, including, without limitation, in respect of a CIC Termination executing the required Release in the Company’s standard form (which, for the avoidance of doubt shall not require restrictive covenants but shall be without prejudice to the restrictive covenants contained in your employment contract with the Company as in effect immediately prior to your execution of this Participation Agreement (the “Employment Contract”) continuing in full force and effect) within such reasonable time period as may be required by the Company and take such legal advice in respect of the Release as may be required by law.
Additionally, in connection with the Specified Transaction, the Company acknowledges and agrees that upon the Effective Time you will have the right to incur a CIC Termination under clause (ii)(1) of the definition of Resignation for Good Reason (as such term is defined in the Plan) and that, as a result, if you choose to resign all of your rights and benefits in connection with such a CIC Termination shall be considered earned and vested as of the Effective Time and the Company will not take any action to reduce or eliminate such rights and benefits; provided, however, that by executing this Participation Agreement you have agreed to provide such co-operation and assistance as the Company may reasonably require in post-Specified Transaction integration activities, and accordingly any such resignation would not be capable of taking effect until the later of: (x) December 31, 2021; and (y) 180 days after the Change in Control, subject to you having provided the Board of Directors of the Company at least thirty (30) days’ notice prior to the effective date of any such resignation.
The Severance Benefits are in addition to the Change in Control Benefits to which you are also eligible for under the Plan, as described in Section 3(a) of the Plan. Capitalised terms not explicitly defined in this Participation Agreement but defined in the Plan shall have the same definitions as in the Plan.
If you incur an Involuntary Termination that does not occur within the Change in Control Period, you shall receive the Severance Benefits set forth in this Section 2:
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(a) |
Notice Period. You shall be entitled to receive 12 months’ notice of termination from the Company (the “Enhanced Notice Period”) instead of (and not in addition to) the period of notice that you are entitled to receive from the Company under the terms of your Employment Contract provided that if the period of notice that you are entitled to receive from the Company under the Employment Contract is greater than or equal to the Enhanced Notice Period then it shall not be varied by this Section 2. In the event of your Involuntary Termination, the Company may, in its absolute discretion, pay you a sum equal to the basic salary you would have received during your notice period under the Employment Contract, as amended by this Section 2, (or any the remainder of that notice period) and may pay such sum in equal monthly instalments in arrears until the date on which the period of notice would have expired (the “PILON”). Notwithstanding the foregoing, the Plan Administrator, it its sole discretion, may determine to pay some or all of the PILON in one lump sum cash payment. The Employment Contract is amended solely to the extent provided for in this Section 2. |
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(b) |
Health Insurance. The Company will pay to you in monthly instalments a fully taxable cash payment equal to the premium paid by the Company for your (and your covered dependents, as applicable) health insurance coverage in effect on the termination date until the earliest of: (1) the end of the 12 month period following the date on which your employment terminates; or (2) the date when you become eligible for substantially equivalent health insurance coverage in connection with any new employment. |
If you incur a CIC Termination, you shall receive the Severance Benefits set forth in this Section 3.
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(b) |
Health Insurance. The Company will pay to you in monthly instalments a fully taxable cash payment equal to the premium for your (and your covered dependents, as |
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applicable) health insurance coverage in effect on the termination date until the earliest of: (1) the close of the CIC Severance Period; or (2) the date when you become eligible for substantially equivalent health insurance coverage in connection with any new employment. |
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(c) |
Bonus. The Company will make a lump sum cash payment to you in an amount equal to the greater of (1) your annual target bonus for the year in which the date of your termination occurs, if established by the Company at the time of such termination, and (2) the average of the actual annualized bonus payment percentages (as described below) for the three years prior to the year in which date of termination occurs (the greater of such amounts (1) and (2), as applicable, the “Severance Bonus”), multiplied by one and a half (1.5). Your “bonus payment percentage” for purposes of calculation of your Severance Bonus is the actual annual bonus earned by you with respect to a particular year, expressed as a percentage of your annual base salary for such year. The Severance Bonus shall be payable to you in a lump sum payment within 30 days following the Release Date. |
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SECTION 4. |
NO DUPLICATION OF BENEFITS. |
For the avoidance of doubt, upon your Involuntary Termination, you shall be eligible to receive Severance Benefits under one, but not more than one, of Sections 2 or 3 of this Participation Agreement or your Employment Contract. If you incur an Involuntary Termination and are eligible for Severance Benefits under more than one of Sections 2 or 3 or your Employment Contract, you shall receive the Severance Benefits under the Section providing the greatest level of benefits to you (without duplication) and such Severance Benefits shall be reduced by any Severance Benefits previously provided to you under a different Section of this Participation Agreement or your Employment Contract.
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SECTION 5. |
ACKNOWLEDGEMENTS. |
As a condition to participation in the Plan, you hereby acknowledge each of the following:
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(a) |
The benefits that may be provided to you under this Participation Agreement are subject to certain reductions and termination under the Plan. |
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(b) |
As further provided in Section 2(b) of the Plan, this Plan and the benefits provided hereunder shall supersede any change in control or severance benefits in any individually negotiated employment contract, offer letter or other written or oral agreement between the Company and you (save for the termination notice provisions within the Employment Contract, except to the extent varied by this Participation Agreement). |
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(c) |
Your eligibility for and receipt of any Severance Benefits to which you may become entitled under this Participation Agreement is expressly contingent upon your compliance with the provisions of the Employment Contract (as amended from time to time) and, in the event of a CIC Termination, the terms and conditions of the Release. Severance benefits under this Participation Agreement shall immediately cease in the event of your violation of the provisions of the Employment Contract or, in the event of a CIC Termination, the Release. |
To accept the terms of this Agreement and participate in the Plan, please sign and date this Agreement in the space provided below and return it to [Name], [Position] no later than [Date] 2021.
[GW Pharma Limited][GW Research Limited]
By:
Title:
Participant
[Name]
Date:
EXHIBIT A
Change in Control and Severance Benefit Plan