Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e)
Entry into Amended and Restated Employment Agreement with Douglas Manion
As previously disclosed, on November 21, 2022 the board of directors (the
"Board") of Aclaris Therapeutics, Inc. (the "Company") appointed Douglas Manion
as the Company's Chief Executive Officer, effective as of January 1, 2023.
In connection with Dr. Manion's appointment as Chief Executive Officer, on
January 6, 2023, the Company and Dr. Manion entered into an amended and restated
employment agreement, effective January 1, 2023 (the "Manion Employment
Agreement"). The Manion Employment Agreement has an initial term of two years
and thereafter shall be automatically renewed for successive one-year periods
unless either party elects not to renew the agreement at least 90 days prior to
the expiration of the applicable term. Dr. Manion will receive an annual base
salary of $600,000, which may be increased by the Board in its sole discretion.
Dr. Manion will be eligible to receive a target annual bonus equal to up to 55%
of the annual base salary, subject to the achievement of performance goals to be
determined by the Board.
Under the Manion Employment Agreement, if Dr. Manion's employment with the
Company ends due to his death or "disability", his resignation for "good reason"
or his termination by the Company other than for "cause," each as defined in the
Manion Employment Agreement, in either case that does not occur within three
months prior to or 12 months after the effective date of a "change of control"
(as defined in the Manion Employment Agreement), he is entitled to receive
(i) continuation of his then-current base salary for a period of 12 months;
(ii) a lump sum payment of any approved but unpaid bonuses or portion thereof
for the preceding year or the year of termination; and (iii) continued health
benefits under COBRA for up to 12 months. Dr. Manion would also receive the
foregoing benefits in the event his employment is terminated upon non-renewal of
the Manion Employment Agreement by the Company.
In the case Dr. Manion's employment with the Company ends due to his death or
"disability", his resignation for "good reason" or his termination by the
Company other than for "cause," in either case that occurs within three months
prior to or 12 months after the effective date of a "change of control", then he
is entitled to receive, in addition to the benefits described in the preceding
paragraph, (i) continuation of his then-current base salary for an additional
six months; (ii) an additional lump sum payment equal to 150% of his target
bonus; (iii) continued health benefits under COBRA for up to an additional six
months; and (iv) acceleration of all unvested equity awards.
The foregoing benefits are conditioned, among other things, on Dr. Manion's
compliance with his post-termination obligations under the Manion Employment
Agreement and his execution of a general release of claims in favor of the
Company.
Dr. Manion has previously entered into the Company's standard form of
indemnification agreement.
The foregoing summary of the Manion Employment Agreement is not complete and is
qualified in its entirety by reference to the full text of the Manion Employment
Agreement, which the Company intends to file as an exhibit to the Company's
Annual Report on Form 10-K for the year ended December 31, 2022.
Entry into Employment Agreement with Kevin Balthaser
As previously disclosed, on November 21, 2022 the Board of the Company appointed
Kevin Balthaser as the Company's Chief Financial Officer, effective as of
January 1, 2023.
On December 31, 2022, the Company entered into an employment agreement with
Mr. Balthaser, effective January 1, 2023 (the "Balthaser Employment Agreement").
The Balthaser Employment Agreement has an initial term of two years and
thereafter shall be automatically renewed for successive one-year periods unless
either party elects not to renew the agreement at least 90 days prior to the
expiration of the applicable term. Mr. Balthaser will receive an annual base
salary of $444,000, which may be increased by the Board in its sole discretion.
Mr. Balthaser will be eligible to receive a target annual bonus equal to up to
40% of the annual base salary, subject to the achievement of performance goals
to be determined by the Board.
Under the Balthaser Employment Agreement, if Mr. Balthaser's employment with the
Company ends due to his death or "disability", his resignation for "good reason"
or his termination by the Company other than for "cause," each as defined in the
Balthaser Employment Agreement, in either case that does not occur within three
months prior to or 12 months after the effective date of a "change of control"
(as defined in the Balthaser Employment Agreement), he is entitled to receive
(i) continuation of his then-current base salary for a period of 12 months;
(ii) a lump sum payment of any approved but unpaid bonuses or portion thereof
for the preceding year or the year of termination; and (iii) continued health
benefits under COBRA for up to 12 months. Mr. Balthaser would also receive the
foregoing benefits in the event his employment is terminated upon non-renewal of
the Balthaser Employment Agreement by the Company.
In the case Mr. Balthaser's employment with the Company ends due to his death or
"disability", his resignation for "good reason" or his termination by the
Company other than for "cause," in either case that occurs within three months
prior to or 12 months after the effective date of a "change of control", then he
is entitled to receive, in addition to the benefits described in the preceding
paragraph, (i) an additional lump sum payment equal to his target bonus; and
(ii) acceleration of all unvested equity awards.
The foregoing benefits are conditioned, among other things, on Mr. Balthaser's
compliance with his post-termination obligations under the Balthaser Employment
Agreement and his execution of a general release of claims in favor of the
Company.
Mr. Balthaser has also entered into the Company's standard form of
indemnification agreement.
The foregoing description of the Balthaser Employment Agreement is not complete
and is qualified in its entirety by reference to the Balthaser Employment
Agreement, which the Company intends to file as an exhibit to the Company's
Annual Report on Form 10-K for the year ended December 31, 2022.
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