Item 5.02 Departure of Directors or Certain Officers; Election of
Directors;Appointment of Certain Officers; Compensatory Arrangements of
Certain Officers.
(c) On January 19, 2022, the Board of Directors of Rafael Holdings, Inc. (the
"Company") elected William Conkling, the Company's current Chief Commercial and
Business Officer, as the Company's Chief Executive Officer, effective February
1, 2022 and Mr. Conkling will no longer serve in his role as Chief Commercial
and Business Officer.
In connection with Mr. Conkling's election as Chief Executive Officer, the
Company's Board of Directors and its Compensation Committee approved the Letter
Agreement with Mr. Conkling, dated January 20, 2022, which provides, among other
things, the following: (i) an annual base salary of $500,000; (ii) annual target
performance bonus of 50% of the base salary, entitlement to which and any amount
thereof to be determined in the sole and absolute discretion of the Company's
Compensation Committee; (iii) a grant of 623,732 restricted shares of the
Company's Class B common stock that will vest as to 25% of the shares (including
any anti-dilution grants) on December 21, 2022 (the "Initial Vesting Date") and
the remainder of the Shares shall vest in twelve substantially equal amounts on
or near each of the first through the twelfth quarterly anniversaries of the
Initial Vesting Date; (iv) in the event that the Company issues capital stock or
derivative equity securities in connection with the consummation, modification
or termination of the Agreement and Plan of Merger, dated as of June 17, 2021
(the "Merger Agreement"), by and among the Company, Rafael Pharmaceuticals, Inc.
and the other parties thereto, provided that Mr. Conkling has not given notice
of termination of the Letter Agreement or his employment with the Company and
the Letter Agreement or his employment with the Company shall not have otherwise
terminated, the Company will grant Mr. Conkling additional restricted shares of
Class B common stock of the Company so that his relative equity interest in the
Company shall not be diluted thereby; (v) options previously granted to Mr.
Conkling shall vest on September 30, 2026; (vi) at-will employment, provided
that if Mr. Conkling's employment is terminated without cause (as such term is
defined the Letter Agreement) or resigns for good reason (as such term is
defined the Letter Agreement) and upon other conditions set forth in the Letter
Agreement, Mr. Conkling will be entitled to severance in the amount equal to (1)
twelve (12) months of his base salary, (2) a prorated portion of the annual
bonus for the fiscal year in which the termination occurs equal to 100% of his
target annual bonus amount for the year during which the termination occurs
multiplied by (y) a fraction, the numerator of which is the number of days in
the fiscal year that Mr. Conkling was employed through the termination date and
the denominator of which is 365, and (3) to the extent not already paid, the
annual bonus for the year preceding the termination date that Mr. Conkling would
have received had he remained continuously employed by the Company through the
payment date of such Annual Bonus, if any.
Mr. Conkling, age 50, has served as Chief Commercial and Business Officer of the
Company since November 10, 2021 and Chief Commercial Officer of the Company from
March 2021 to November 10, 2021. Mr. Conkling has over 20 years' experience in
the pharmaceutical/biotech industry working in Oncology. He has extensive
experience launching innovative oncology products. His experience has spans
across all areas of commercialization including marketing, sales, market access,
commercial operations and business development. Prior to joining the Company,
Mr. Conkling helped lead the launch of Trodelvy at Immunomedics Inc. (acquired
by Gilead for $21B in October 2020) as the VP Sales, Marketing and Market
Access. Mr. Conkling also spent over 10 years at Novartis Oncology where he
helped lead the launch of the first CAR-T therapy approved in the US as the
Global Commercial Leader - Kymriah. Mr. Conkling earned his Bachelor's Degree
from Fordham University and his Master's in Business Administration from
New York University Stern School of Business in 1998.
The foregoing summary of the Letter Agreement is qualified in its entirety by
reference to the Letter Agreement, a copy of which is filed as Exhibit 10.01 to
this report and is incorporated herein by reference.
A copy of the January 21, 2022, press release relating to the above is attached
hereto as Exhibit 99.1 and is incorporated herein by reference.
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Item 5.07 Submission of Maters to a Vote of Security Holders.
(a) The Company's Annual Meeting of Stockholders was held on January 19, 2022
(the "Meeting").
(b) (1) A majority of the votes present or represented at the Meeting by the
holders of shares entitled to vote on the following matter were voted in
connection with the election of each of the Board of Directors nominees named in
the Proxy Statement of the Company.
The nominees for election to the Board of Directors were elected, each for a
one-year term, based upon the following votes:
Nominee Votes For Votes Against Abstentions Broker Non-Vote % Votes For
Stephen M. Greenberg 3,277,483 125,617 1,449 324,846 87.88
Howard S. Jonas 3,322,064 82,171 314 324,846 89.08
Rachel Jonas 3,331,735 71,447 1,367 324,846 89.34
Shannon Klinger 3,398,203 4,874 1,472 324,846 91.12
Ameet Mallik 3,396,273 6,708 1,569 324,846 91.07
Mark McCamish 3,398,151 4,857 1,542 324,846 91.12
Boris C. Pasche 3,278,062 125,025 1,462 324,846 87.90
Michael J. Weiss 3,226,940 176,178 1,431 324,846 86.53
(2) A majority of the votes present or represented at the Meeting by the holders
of shares entitled to vote on the following matter were voted in connection with
the ratification of the appointment of CohnReznick LLP as the Company's
independent registered public accounting firm for the Fiscal Year ending July
31, 2022.
The number of votes cast with respect to this matter was as follows:
Votes For Votes Against Abstentions Broker Non-Vote % Votes For
3,712,157 3,680 13,558 0 99.54
(3) A majority of the votes present or represented at the Meeting by the holders
of shares entitled to vote on the following matter were voted in connection with
the adoption of the 2021 Equity Incentive Plan (the "2021 Plan")
The number of votes cast with respect to this matter was as follows:
Votes For Votes Against* Broker Non-Vote % Votes For
3,194,746 209,804 324,846 85.66
* Abstentions are counted as a vote "Against" this proposal.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Document
10.01 Letter Agreement dated January 20, 2022, between the Company and
William Conkling.
99.1 Press Release, dated January 21, 2022.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
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