UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): September 4, 2019

 

IMMUNIC, INC.


(Exact name of registrant as specified in its charter)

 

Delaware 001-36201 56-2358443
(State or other jurisdiction
of incorporation)
(Commission File Number) (IRS Employer Identification No.)
     
 

Am Klopferspitz 19

82152 Martinsried

Germany

 
  (Address of principal executive offices)  

 

 Registrant’s telephone number, including area code: 49 89 250079460

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Title of each class Trading symbol(s)

Name of each exchange

on which registered

Common Stock, $0.0001 par value IMUX The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b2 of this chapter).

 

Emerging growth company ý

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Yes ý No ¨

 

 

 

 

Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers

 

On September 4, 2019, Immunic AG, a wholly-owned subsidiary of Immunic, Inc. (the “Company”), entered into amendments to the employment agreements of various members of the management board (Vorstand) of Immunic AG. Under German law, a company’s management board consists of employee members and is responsible for overseeing its daily business.

 

Dr. Daniel Vitt Agreement

On September 4, 2019, Immunic AG entered into an amendment to the Service Agreement (as amended, the “Amended Vitt Agreement”), dated September 29, 2016, between Immunic AG and Dr. Daniel Vitt, the Company’s Chief Executive Officer and President. Pursuant to the Amended Vitt Agreement, Dr. Vitt will continue to serve on the management board of Immunic AG until August 31, 2021. Dr. Vitt will receive an annual salary of EUR 300,000, to be paid in 12 monthly installments, and a yearly bonus of EUR 100,000 upon achievement of certain targets.

 

Dr. Vitt is also entitled to severance of one year’s salary and a bonus upon (i) the conclusion of his term of service under the Amended Vitt Agreement, as such term may be amended or extended, or (ii) the termination of his service before August 31, 2020, in each case provided that such non-extension or termination is not due to serious cause.

 

The preceding summary does not purport to be complete and is qualified in its entirety by reference to the Amended Vitt Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

 

Dr. Manfred Gröppel Agreement

On September 4, 2019, Immunic AG entered into an amendment to the Service Agreement (as amended, the “Amended Gröppel Agreement”), dated August 29, 2016, between Immunic AG and Dr. Manfred Gröppel, the Company’s Chief Operating Officer. Pursuant to the Amended Gröppel Agreement, Dr. Gröppel will continue to serve on the management board of Immunic AG until August 31, 2021. Dr. Gröppel will receive an annual salary of EUR 200,000, to be paid in 12 monthly installments, and a yearly bonus of EUR 50,000 upon achievement of certain targets.

 

Dr. Gröppel is also entitled to severance of one year’s salary and a bonus upon (i) the conclusion of his term of service under the Amended Gröppel Agreement, as such term may be amended or extended, or (ii) the termination of his service before August 31, 2020, in each case provided that such non-extension or termination is not due to serious cause.

 

The preceding summary does not purport to be complete and is qualified in its entirety by reference to the Amended Gröppel Agreement, which is filed as Exhibit 10.2 to this Current Report on Form 8-K and is incorporated herein by reference.

 

Item 8.01. Other Events

 

Press Release

On September 5, 2019, the Company issued a press release regarding the results of a pre-planned interim dosing analysis relating to IMU-838, one of its development programs, as part of its ongoing phase 2 study in patients with moderate-to-severe ulcerative colitis. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

 

 

 

Dr. Andreas Muehler Agreements

On September 4, 2019, Immunic AG entered into an amendment to the Service Agreement (as amended, the “Amended Muehler Agreement”), dated August 22, 2016, between Immunic AG and Dr. Andreas Muehler, the Company’s Chief Medical Officer. Pursuant to the Amended Muehler Agreement, Dr. Muehler will continue to serve on the management board of Immunic AG until August 31, 2021. Dr. Muehler will receive an annual salary of EUR 140,000, to be paid in 12 monthly installments, and a yearly bonus of EUR 42,000 upon achievement of certain targets.

 

Dr. Muehler is also entitled to severance of one year’s salary and a bonus upon (i) the conclusion of his term of service under the Amended Muehler Agreement, as such term may be amended or extended, or (ii) the termination of his service before August 31, 2020, in each case provided that such non-extension or termination is not due to serious cause.

 

On September 4, 2019, Dr. Muehler also entered into a separate employment agreement (the “Muehler Employment Agreement”) with the Company. The Muehler Employment Agreement provides that Dr. Muehler will continue to serve as Chief Medical Officer until August 31, 2021, and will dedicate approximately 40% of his time to the affairs of the Company and approximately 60% of his time to the affairs of Immunic AG. The Muehler Employment Agreement provides for an annual salary of $180,000 USD and an annual bonus of at least 18% of annual base salary upon achievement of certain targets. Dr. Muehler will also receive an inaugural equity award of an option to purchase 40,000 shares of Company common stock. Dr. Muehler is also eligible for reimbursement for certain expenses, and customary insurance and benefits programs of the Company.

 

If Dr. Muehler’s employment is terminated by the Company without Cause or by him for Good Reason (each as defined in the Muehler Employment Agreement), he is entitled to (i) twelve months’ base salary, (ii) any accrued but unpaid annual bonus for the fiscal year ended prior to termination, and (iii) reimbursement of certain COBRA premiums. Additionally, all of his outstanding equity awards will vest and become exercisable.

 

The preceding summaries do not purport to be complete and are qualified in their entirety by reference to the Amended Muehler Agreement and the Muehler Employment Agreement, which are filed as Exhibits 99.2 and 99.3 to this Current Report on Form 8-K and are incorporated herein by reference.

 

Dr. Hella Kohlhof Agreement

On September 4, 2019, Immunic AG entered into an amendment to the Service Agreement (as amended, the “Amended Kohlhof Agreement”), dated September 29, 2016, between Immunic AG and Dr. Hella Kohlhof, the Company’s Chief Scientific Officer. Pursuant to the Amended Kohlhof Agreement, Dr. Kohlhof will continue to serve on the management board of Immunic AG until August 31, 2021. Dr. Kohlhof will receive an annual salary of EUR 200,000, to be paid in 12 monthly installments, and a yearly bonus of EUR 50,000 upon achievement of certain targets.

 

Dr. Kohlhof is also entitled to severance of one year’s salary and a bonus upon (i) the conclusion of her term of service under the Amended Kohlhof Agreement, as such term may be amended or extended, or (ii) the termination of her service before August 31, 2020, in each case provided that such non-extension or termination is not due to serious cause.

 

The preceding summary does not purport to be complete and is qualified in its entirety by reference to the Amended Kohlhof Agreement, which is filed as Exhibit 99.4 to this Current Report on Form 8-K and is incorporated herein by reference.

 

 

 

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

     

Exhibit No.

 

Exhibit Description

10.1   Addendum, dated September 4, 2019, to Service Agreement between Immunic AG and Dr. Daniel Vitt
10.2   Addendum, dated September 4, 2019, to Service Agreement between Immunic AG and Dr. Manfred Gröppel
99.1   Press Release, dated September 5, 2019
99.2   Addendum, dated September 4, 2019, to Service Agreement between Immunic AG and Dr. Andreas Muehler
99.3   Employment Agreement, dated September 4, 2019, between Immunic, Inc. and Dr. Andreas Muehler
99.4   Addendum, dated September 4, 2019, to Service Agreement between Immunic AG and Dr. Hella Kohlhof

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

     
Dated: September 5, 2019 Immunic, Inc.
     
  By: 

/s/ Daniel Vitt

    Daniel Vitt
    Chief Executive Officer

 

 

 

 

Exhibit 10.1

 

 

Änderungsvereinbarung zum

 

DIENSTVERTRAG vom 29. September 2016

 

  Addendum to the SERVICE AGREEMENT dated 29th September 2016

zwischen

 

 

between

 

der Immunic AG, Am Klopferspitz 19, 82152 Planegg-Martinsried

 

  Immunic AG, Am Klopferspitz 19, 82152 Planegg-Martinsried
(im Folgenden: „Gesellschaft“)  

(hereinafter: “Company”)

 

und  

and

 

Herrn Dr. Daniel Vitt, Obere Bahnhofsstr. 7 A, 82110 Germering

 

  Mr. Dr. Daniel Vitt, Obere Bahnhofsstr. 7 A, 82110 Germering

(im Folgenden: „Vorstand“)

 

 

(hereinafter: “Board Member”)

 

     
Präambel  

Preamble

 

Der Vorstand wurde durch Beschluss des Aufsichtsrats vom 20. Dezember 2016 zum ordentlichen Mitglied des Vorstandes der Gesellschaft berufen. Die dienstvertraglichen Beziehungen zwischen den Parteien werden durch den Dienstvertrag vom 29. September 2016 geregelt („Dienstvertrag“). Die Bestellung des Vorstandes zum Mitglied des Vorstandes der Gesellschaft soll durch den Aufsichtsrat für den Zeitraum bis zum 31. August 2021 (einschließlich) verlängert werden („Laufzeit“). Dies vorausgeschickt, vereinbaren die Parteien folgende Änderungen zum vorbenannten Dienstvertrag, mit einer Laufzeit ab dem 1. September 2019 („Stichtagsdatum“) bis zum 31. August 2021 (einschließlich) („Beendigungsdatum“). Im Übrigen gilt der Dienstvertrag für die Laufzeit unverändert fort. Diese Präambel ist integraler Bestandteil dieser Änderungsvereinbarung.

 

  The Board Member had been appointed as a board member of the Company by supervisory board resolution as of 20th December 2016. The relationship between the parties is governed by a service agreement dated 29th September 2016 (“Service Agreement”). The appointment of the Board Member as a board member of the Company is expected to be extended by the supervisory board for the period to (and including) 31st August 2021 (“Term”). Now, therefore the parties agree on the following amendments to the aforementioned Service Agreement from 1st September 2019 (“Effective Date”) to (and including) 31st August 2021 (“Completion Date”). Apart from that, the Service Agreement shall continue to apply without changes. This preamble shall be an integral part of this Addendum.

 

 

 

 

I.    Einfügen der Ziffer 5 in § 1

 

   I.       Insertion of Clause 5 in § 1

In § 1 des Dienstvertrages wird folgende Ziffer 5 ergänzt:

 

  § 1 of the Service Agreement shall be added by clause 5 as follows:
     

Der Vorstand übernimmt auf Wunsch der Gesellschaft ohne weitere Vergütung auch Positionen oder Ämter bei mit der Gesellschaft verbundenen Unternehmen (§ 15 AktG). Ebenso übernimmt der Vorstand Positionen oder Ämter bei Verbänden, Berufsvereinigungen oder sonstigen Organisationen, in denen die Gesellschaft oder ein verbundenes Unternehmen Mitglied ist. Ihm von dritter Seite diesbezüglich gewährte Vergütungen oder Aufwandsentschädigungen führt der Vorstand an die Gesellschaft ab. Auf Wunsch der Gesellschaft legt der Vorstand im Interesse der Gesellschaft oder verbundener Unternehmen übernommene Positionen oder Ämter nieder und setzt sich nach besten Kräften dafür ein, dass von der Gesellschaft benannte Nachfolger in die Positionen oder Ämter nachrücken.

 

  The Board Member shall, upon the Company's request, without any additional remuneration, also accept positions or offices in companies affiliated with the Company (Section 15 Stock Corporation Act - AktG). In the same way, the Board Member shall also accept positions or offices in associations and professional or other organizations of which the Company or an affiliated Company is a member. The Board Member shall transfer to the Company any remuneration or allowances he receives from third parties in this respect. Upon the Company's request, the Board Member shall resign from any position or office accepted in the interests of the Company or an affiliated Company and he shall do his utmost to ensure that the person nominated by the Company shall succeed him in the position or office.
     
 II.   Änderung des § 2  

II.       Amendment of § 2

 

§ 2 des Dienstvertrages wird wie folgt geändert:  

§ 2 of the Service Agreement shall be amended as follows:

 

 

 

 

 

1.    Überschrift § 2  

1.      Heading § 2

 

Die Überschrift des § 2 des Dienstvertrages wird wie folgt geändert:

 

  The heading of § 2 of the Service Agreement shall be amended as follows:

§ 2 Umfang der Dienste, Nebentätigkeit

 

 

§ 2 Scope of Services and Side Activity

 

2.    § 2 Ziffer 1 Satz 1 3.     

2.      § 2 Clause 1 sentence 1

 

§ 2 Ziffer 1 Satz 1 des Dienstvertrages wird durch die folgenden zwei Sätze ersetzt:

 

4.     

§ 2 clause 1 sentence 1 of the Service Agreement shall be replaced by the following two sentences:

 

Der Vorstand stellt seine ganze Arbeitskraft und all sein Wissen und Können in den Dienst der Gesellschaft. In der Bestimmung seiner Tätigkeitszeiten ist der Vorstand im Rahmen der betrieblichen Erfordernisse frei.

 

3.      The Board Member shall devote all his working capacity, knowledge and skills into the services of the Company. He shall be able to schedule his working hours, subject to business requirements.

III.   Änderung des § 3 Ziffer 1 des Dienstvertrages

 

  III.    Amendment of § 3 Clause 1 of the Service Agreement
     

§ 3 Ziffer 1 des Dienstvertrages wird wie folgt geändert:

 

  § 3 clause 1 of the Service Agreement shall be amended as follows:
     

1.    Der Vorstand erhält für seine Tätigkeit

 

  1.      The Board Member shall receive for his services

a)     ein festes Jahresgehalt („Grundvergütung“) in Höhe von EUR 300.000 brutto, das in 12 gleichen Monatsraten jeweils nachträglich am Monatsletzten ausbezahlt wird. Sofern dieser Vertrag nicht während der Dauer eines gesamten Kalenderjahres besteht, wird das Jahresfestgehalt zeitanteilig gezahlt.

 

  a)      a fixed annual salary (“basic remuneration”) in the amount of EUR 300,000 gross, which is paid in 12 equal monthly instalments at the end of each month. If this agreement does not exist for the duration of an entire calendar year, the fixed annual salary shall be paid pro rata temporis.

 

 

 

 

b)     eine jährliche variable Vergütung, die bei 100-prozentigem Erreichen der festgelegten Jahresziele maximal EUR 100.000 brutto beträgt. Die Einzelheiten, insbesondere zum Verfahren der Zielfestlegung, zur Feststellung der Zielerreichung und zur Fälligkeit ergeben sich aus dem Rahmenvertrag zur Zielvereinbarung in seiner jeweils geltenden Fassung. Die Art der Ziele, die Voraussetzungen für ihre Erreichung und ihre Gewichtung zueinander werden für das jeweilige Geschäftsjahr in einer gesonderten Zielfestlegung niedergelegt.

 

  b)     an annual variable remuneration which amounts to EUR 100,000 gross in maximum if the defined annual targets are achieved by 100 %. The details, in particular the procedure for setting targets, determining the achievement of targets and the due date, are set out in the framework agreement for the target agreement in its currently valid version. The type of targets, the prerequisites for their achievement and their weighting in relation to each other shall be laid down for the respective fiscal year in a separate definition of targets.

IV.   Einfügen der Ziffer 4 in § 3

 

   IV.       Insertion of Clause 4 in § 3

In § 3 des Dienstvertrages wird folgende Ziffer 4 ergänzt:

 

  § 3 of the Service Agreement shall be added by clause 4 as follows:
     

Sagt eine dritte Person (einschließlich solcher Unternehmen, die mit der Gesellschaft verbunden sind) dem Vorstand Anteile an der Gesellschaft oder an mit der Gesellschaft verbundenen Unternehmen oder diesbezügliche Optionen oder Ansprüche auf Optionen oder sogenannte Stock Appreciation Rights oder Phantom Stocks zu, so werden solche Zusagen weder Bestandteil des Dienstverhältnisses zwischen den Parteien dieses Vertrages noch begründen sie Verpflichtungen der Gesellschaft.

 

 

In the event that a third party (including companies which are affiliated with the Company) promises the Board Member shares in the Company or in companies affiliated with the Company or options to acquire such shares or rights to such options or so-called stock appreciation rights or phantom Stocks, such promise shall neither become part of the Service Agreement between the parties to this Agreement nor create any obligations of the Company.

 

V.      Ergänzung der Überschrift von § 10, Neufassung des § 10 des Dienstvertrages

 

  V.     Addition of the Heading of § 10, Revision of § 10 of the Service Agreement  

 

 

 

 

Die Überschrift des § 10 des Dienstvertrages wird wie folgt geändert:

 

  The heading of § 10 of the Service Agreement shall be amended as follows:
§ 10 Vertragsdauer, Abfindung   § 10 Contract Duration; Severance Payment
     

§ 10 des Dienstvertrages wird wie folgt neu gefasst:

 

  § 10 of the Service Agreement shall be revised as follows:
     

1.     Der Dienstvertrag steht insgesamt unter der aufschiebenden Bedingung, dass gemäß der Präambel der Vorstand zum Vorstand der Gesellschaft bestellt wird.

 

 

1.      The Service Agreement is subject to the condition precedent that the Board Member is appointed to the Management Board of the Company in accordance with the preamble.

 

2.      Der Dienstvertrag beginnt mit dem 1. September 2019 („Stichtagsdatum“) und endet zum 31. August 2021 („Beendigungsdatum“).

 

 

2.      The Service Agreement commences on 1st September 2019 (“Effective Date”) and ends on 31st August 2021 (“Completion Date”).

 

3.      Das Recht zur außerordentlichen Kündigung bleibt unberührt.

 

  3.      The right to terminate without notice for good cause shall remain unaffected.
4.      Im Falle eines Widerrufs der Bestellung, der Amtsniederlegung durch den Vorstand oder bei einer sonstigen Beendigung der Organstellung haben beide Parteien das Recht das Dienstverhältnis unter Einhaltung einer Kündigungsfrist von 12 Monaten zum Monatsende ordentlich zu kündigen. Eine etwaige frühere Beendigung aufgrund des § 10 Ziffer 2 dieses Vertrages bleibt unberührt.   4.      In the event of revocation of the appointment, resignation from office by the Board Member or any other termination of the position, both parties have the right to terminate the service relationship ordinarily by giving 12 months' notice to the end of the month. Any earlier termination due to § 10 clause 2 of this Service Agreement shall remain unaffected.
     

 

 

 

 

5.      Der Vorsitzende des Aufsichtsrats wird dem Vorstand spätestens neun Monate vor Ablauf dieses Vertrages schriftlich mitteilen, ob und unter welchen Bedingungen der Aufsichtsrat den Vorstand erneut zum Vorstandsmitglied bestellen wird und ob er bereit ist, den Dienstvertrag entsprechend der Dauer der neuen Bestellung zu verlängern oder einen neuen Dienstvertrag zu mindestens gleichen Bedingungen mit ihm abzuschließen. Der Vorstand wird innerhalb von zwei Monaten ab Zugang des Angebots des Aufsichtsratsvorsitzenden erklären, ob er die erneute Bestellung annimmt und bereit ist, den für die Fortsetzung oder Erneuerung des Dienstvertrages angebotenen Bedingungen zuzustimmen.

 

  5.      The Chairman of the Supervisory Board shall inform the Board Member in writing no later than nine months before the expiry of this Service Agreement whether and under what conditions the Supervisory Board will reappoint the Board Member as a member of the Executive Board and whether he is prepared to extend the Service Agreement for the duration of the new appointment or to conclude a new service agreement with the Executive Board on at least the same terms. Within two months of receipt of the offer of the Chairman of the Supervisory Board, the Board Member will declare whether he accepts the new appointment and is prepared to agree to the terms and conditions offered for the continuation or renewal of the Service Agreement.
     

6.      Die Gesellschaft ist berechtigt, den Vorstand nach dem Widerruf seiner Bestellung gemäß § 84 (3) AktG oder im Zusammenhang mit einer Beendigung des Dienstvertrages, insbesondere nach einer Kündigung oder im Anschluss an den Abschluss eines Aufhebungsvertrages, ganz oder teilweise von seiner Pflicht zur Dienstleistung unter Fortzahlung der Grundvergütung gemäß § 3 Ziffer 1 lit. a) widerruflich oder unwiderruflich freizustellen. Im Fall der unwiderruflichen Freistellung werden offene Urlaubs- und sonstige Freizeitausgleichsansprüche angerechnet, die damit erledigt sind. Der Dienstvertrag im Übrigen wird von der Freistellung nicht berührt; insoweit bestehen insbesondere die Verschwiegenheitspflicht und das vertragliche Wettbewerbsverbot bis zum Ende des Dienstvertrages fort. Anderweitiger Verdienst während der Freistellungszeit wird gemäß § 615 Satz 2 BGB angerechnet. Eine Anrechnung erfolgt nicht, wenn und soweit der anderweitige Verdienst aus einer genehmigten Nebentätigkeit (§ 2 Ziffer 1 dieses Dienstvertrages) stammt.

 

  6.      The Company is entitled, after revocation of its appointment pursuant to § 84 (3) AktG or in connection with termination of the Service Agreement, in particular after termination or following the conclusion of a termination agreement, to release the Board Member in whole or in part from his obligation to provide services with continued payment of the basic remuneration pursuant to § 3 clause 1 lit. a) revocably or irrevocably. In the event of irrevocable release, outstanding vacation and other time off compensation claims shall be credited and settled. The rest of the Service Agreement shall not be affected by the release; in this respect, the obligation to maintain confidentiality and the contractual non-competition clause shall continue to apply until the end of the Service Agreement. Other earnings during the exemption period shall be credited in accordance with § 615 sentence 2 BGB. No credit shall be made if and to the extent that the other earnings originate from an approved secondary activity (§ 2 clause 1 of this Service Agreement).

 

 

 

 

7.      Der Dienstvertrag endet spätestens am Ende des Kalenderjahres, in dem das Vorstandsmitglied sein 65. Lebensjahr vollendet, sofern dieser Dienstvertrag nicht bereits nach Ziffer 1 bis 2 dieses Vertrages vor diesem Zeitpunkt geendet hat.  

7.      The Service Agreement shall end at the latest at the end of the calendar year in which the Board Member reaches the age of 65, provided that this Service Agreement has not already ended before this date in accordance with clauses 1 to 2 of this Agreement.

 

8.      Sofern der Dienstvertrag nicht über das Beendigungsdatum nach dieser Änderungsvereinbarung (oder ein später vereinbartes Beendigungsdatum nach abermaliger Wiederbestellung) hinaus fortgesetzt wird, erhält der Vorstand eine Brutto-Abfindung in Höhe von einem Jahresgehalt gemäß § 3 des Dienstvertrages in der Fassung dieser Änderungsvereinbarung. Der Bonus wird hierbei – unabhängig von der tatsächlichen Zielerreichung - auf Basis 100 % berücksichtigt. Die Abfindung ist zahlbar zum Beendigungsdatum.  

8.      If the Service Agreement is not continued beyond the Completion Date under this Amendment Agreement (or a later termination date agreed upon after reappointment), the Board Member shall receive gross severance payment equal to one year's salary pursuant to § 3 of the Service Agreement as amended by this Amendment Agreement. The bonus is taken into account here - irrespective of the actual achievement of targets - on a 100% basis. The severance payment is payable on the Completion Date,

 

 

 

 

 

Der Abfindungsanspruch entfällt, wenn der Vorstand ein Angebot auf Wiederbestellung für eine Dauer von mindestens 12 Monaten im unmittelbaren Anschluss an das hiesige Beendigungsdatum zu mindestens gleichwertigen dienstvertraglichen Bedingungen und bei mindestens 12-monatiger Laufzeit in Übereinstimmung mit den Fristen gemäß § 10 Ziffer 5 in der Fassung dieser Änderungsvereinbarung erhält und dieses nicht annimmt. Erhält der Vorstand ein solches Angebot im Sinne von § 10 Ziffer 5 verspätet oder zu nicht gleichwertigen Bedingungen, oder wird ihm mitgeteilt, dass eine Wiederbestellung nicht erfolgen soll, so werden die Zahlungen gemäß § 3 in der Fassung dieser Änderungsvereinbarung, die dem Zeitraum von der Angebotsunterbreitung bzw. Mitteilung der nicht erfolgenden Wiederstellung bis zum Beendigungsdatum zuzuordnen sind, vom Abfindungsanspruch abgezogen, aber nur den Zeitraum, für den eine Freistellung nach § 10 Ziffer 6 erfolgt ist.

 

 

The severance payment claim shall lapse if the Board member receives and does not accept an offer of reappointment for a term of at least 12 months immediately following the Completion Date here under at least equivalent terms and conditions of the Service Agreement and for a term of at least 12 months in accordance with the time limits pursuant to § 10 clause 5 as amended by this Amendment Agreement. If the Board Member receives such an offer within the meaning of § 10 clause 5 belatedly or on non-equivalent terms, or is informed that a reappointment is not to take place, the payments pursuant to § 3 in the version of this Amendment Agreement, which are attributable to the period from the submission of the offer or notification of the non-occurrence of the reappointment until the Completion Date, shall be deducted from the severance payment claim but only for the period for which a release has occurred pursuant to § 10 clause 6.

 

Der Abfindungsanspruch entfällt, sofern die Nichtverlängerung des Dienstverhältnisses auf einem vom Vorstand zu vertretenen wichtigen Grund beruht.

 

 

The severance payment claim shall lapse if the non-extension of the employment relationship is due to a serious cause for which the Board Member is responsible.

 

 

 

 

 

Der Abfindungsanspruch besteht auch dann, wenn das Dienstverhältnis mindestens 12 Monate vor dem Beendigungsdatum aufgrund Kündigung der Gesellschaft gemäß § 10 Ziffer 4 in der Fassung dieser Änderungsvereinbarung endet (vorzeitiges Beendigungsdatum), jedoch nur, soweit das Dienstverhältnis nicht aus einem vom Vorstand zu vertretenen wichtigen Grund vorzeitig beendet worden ist. Endet das Dienstverhältnisses infolge einer Kündigung gemäß vorstehenden Satz weniger als 12 Monate vor dem Beendigungsdatum, so werden die Zahlungen gemäß § 3 in der Fassung dieser Änderungsvereinbarung, die dem Zeitraum von dem vorzeitigen Beendigungsdatum bis zum Beendigungsdatum zuzuordnen sind, vom Abfindungsanspruch abgezogen. Die Abfindung ist dann zum vorzeitigen Beendigungsdatum zahlbar.

 

 

The severance payment claim also exists if the employment relationship ends at least 12 months before the Completion Date due to termination of the Company pursuant to § 10 clause 4 as amended by this Amendment Agreement (Early Completion Date), but only to the extent that the employment relationship has not been prematurely terminated for serious cause for which the Board Member is responsible. If the employment relationship ends less than 12 months prior to the Completion Date as a result of a termination pursuant to the preceding sentence, the payments pursuant to § 3 as amended by this Amendment Agreement, which are attributable to the period from the Early Completion Date to the Completion Date, shall be deducted from the severance payment claim. The severance payment shall then be payable on the Early Completion Date.

 

VI.   Änderung des § 11 Ziffer 1 des Dienstvertrages

 

   VI.    Amendment of § 11 clause 1 of the Service Agreement
     

§ 11 Ziffer 1 des Dienstvertrages wird wie folgt geändert:

 

  § 11 clause 1 of the Service Agreement shall be amended as follows:
     

Ansprüche der Gesellschaft und des Vorstands aus dem Dienstverhältnis oder im Zusammenhang mit diesem Dienstverhältnis verfallen, ungeachtet ihres Rechtsgrundes, wenn die bzw. der Anspruchsberechtigte den Anspruch nicht innerhalb einer Frist von sechs Monaten, berechnet ab dem Zeitpunkt der Fälligkeit und der Kenntnis oder grob fahrlässigen Unkenntnis des Anspruchsberechtigten von den anspruchsbegründenden Umstanden, durch Erklärung in Textform gegenüber der jeweils anderen Vertragspartei geltend macht. Für die Beurteilung der Rechtzeitigkeit der Geltendmachung ist der Zugang der Erklärung maßgeblich. Dies gilt nicht für die Geltendmachung von Ansprüchen wegen Verletzung des Lebens, des Körpers oder der Gesundheit sowie bei vorsätzlichen Pflichtverletzungen. Diese Ausschlussfrist gilt auch nicht für Ansprüche auf den gesetzlichen Mindestlohn sowie für gesetzliche Fristen, die keiner Ausschlussfrist unterliegen dürfen. Die Versäumung der Ausschlussfrist führt zum Verlust des Anspruchs.

 

  Claims of the Company and the Board Member arising from or in connection with the service relationship expire, irrespective of their legal basis, if the claimant does not assert the claim within a period of six months, calculated from the due date and the knowledge or grossly negligent ignorance of the claimant of the circumstances giving rise to the claim, by declaration in text form against the respective other contracting party. For the assessment of the timeliness of the assertion, the receipt of the declaration is decisive. This does not apply to the assertion of claims due to injury to life, bodily injury or health as well as to intentional breaches of duty. The aforementioned preclusive period shall also not apply to claims regarding the statutory minimum wage as well as to statutory time limits that are no subject to limitation periods. Failure to observe the limitation period shall result in the loss of the claim.

 

 

 

 

VII.        Die übrigen Bestimmungen des Dienstvertrages behalten unverändert ihre Gültigkeit.

 

 

VII.         The other provisions of the Service Agreement remain unaffected.

 

VIII.         Die deutsche Fassung dieser Änderungsvereinbarung ist maßgeblich.   VIII.     The German version of this Amendment Agreement shall be  authoritative.

 

Gesellschaft/Company   Vorstand/ Board Member
     
Martinsried, Germany   Germering, Germany
Ort/ Place   Ort/ Place
     
9/4/2019   9/3/2019
Datum/ Date   Datum/ Date
     
/s/ Jörg Neermann   /s/ Daniel Vitt
Unterschrift/Signature:   Unterschrift/Signature:
Für die Gesellschaft     Vorstand/ Board Member
On behalf of the Company    

 

 

 

Exhibit 10.2

 

 

Änderungsvereinbarung zum

 

DIENSTVERTRAG vom 29. August 2016

 

  Addendum to the SERVICE AGREEMENT dated 29th August 2016

zwischen

 

 

between

 

der Immunic AG, Am Klopferspitz 19, 82152 Planegg-Martinsried

 

  Immunic AG, Am Klopferspitz 19, 82152 Planegg-Martinsried
(im Folgenden: „Gesellschaft“)  

(hereinafter: “Company”)

 

und  

and

 

Herrn Dr. Manfred Gröppel, Sauerbruchstr. 54a, 81377 München

 

  Mr. Dr. Manfred Gröppel, Sauerbruchstr. 54a, 81377 Munich

(im Folgenden: „Vorstand“)

 

 

(hereinafter: “Board Member”)

 

     
Präambel  

Preamble

 

Die dienstvertraglichen Beziehungen zwischen den Parteien werden durch den Dienstvertrag vom 29. August 2016 geregelt („Dienstvertrag“). Die Bestellung des Vorstandes zum Mitglied des Vorstandes der Gesellschaft soll durch den Aufsichtsrat für den Zeitraum bis zum 31. August 2021 (einschließlich) verlängert werden („Laufzeit“). Dies vorausgeschickt, vereinbaren die Parteien folgende Änderungen zum vorbenannten Dienstvertrag, mit einer Laufzeit ab dem 1. September 2019 („Stichtagsdatum“) bis zum 31. August 2021 (einschließlich) („Beendigungsdatum“). Im Übrigen gilt der Dienstvertrag für die Laufzeit unverändert fort. Diese Präambel ist integraler Bestandteil dieser Änderungsvereinbarung.   The relationship between the parties is governed by a service agreement dated 29th August 2016 (“Service Agreement”). The appointment of the Board Member as a board member of the Company is expected to be extended by the supervisory board for the period to (and including) 31st August 2021 (“Term”). Now, therefore the parties agree on the following amendments to the aforementioned Service Agreement from 1st September 2019 (“Effective Date”) to (and including) 31st August 2021 (“Completion Date”). Apart from that, the Service Agreement shall continue to apply without changes. This preamble shall be an integral part of this Addendum.
     

 

 

 

 

I.    Einfügen der Ziffer 5 in § 1

 

   I.       Insertion of Clause 5 in § 1

In § 1 des Dienstvertrages wird folgende Ziffer 5 ergänzt:

 

  § 1 of the Service Agreement shall be added by clause 5 as follows:
     

Der Vorstand übernimmt auf Wunsch der Gesellschaft ohne weitere Vergütung auch Positionen oder Ämter bei mit der Gesellschaft verbundenen Unternehmen (§ 15 AktG). Ebenso übernimmt der Vorstand Positionen oder Ämter bei Verbänden, Berufsvereinigungen oder sonstigen Organisationen, in denen die Gesellschaft oder ein verbundenes Unternehmen Mitglied ist. Ihm von dritter Seite diesbezüglich gewährte Vergütungen oder Aufwandsentschädigungen führt der Vorstand an die Gesellschaft ab. Auf Wunsch der Gesellschaft legt der Vorstand im Interesse der Gesellschaft oder verbundener Unternehmen übernommene Positionen oder Ämter nieder und setzt sich nach besten Kräften dafür ein, dass von der Gesellschaft benannte Nachfolger in die Positionen oder Ämter nachrücken.

 

  The Board Member shall, upon the Company's request, without any additional remuneration, also accept positions or offices in companies affiliated with the Company (Section 15 Stock Corporation Act - AktG). In the same way, the Board Member shall also accept positions or offices in associations and professional or other organizations of which the Company or an affiliated Company is a member. The Board Member shall transfer to the Company any remuneration or allowances he receives from third parties in this respect. Upon the Company's request, the Board Member shall resign from any position or office accepted in the interests of the Company or an affiliated Company and he shall do his utmost to ensure that the person nominated by the Company shall succeed him in the position or office.
     
 II.   Änderung des § 2  

II.       Amendment of § 2

 

§ 2 des Dienstvertrages wird wie folgt geändert:  

§ 2 of the Service Agreement shall be amended as follows:

 

1.    Überschrift § 2  

1.      Heading § 2

 

Die Überschrift des § 2 des Dienstvertrages wird wie folgt geändert:

 

  The heading of § 2 of the Service Agreement shall be amended as follows:

§ 2 Umfang der Dienste, Nebentätigkeit

 

 

§ 2 Scope of Services and Side Activity

 

 

 

 

 

2.    § 2 Ziffer 1 Satz 1

2.      § 2 Clause 1 sentence 1

 

§ 2 Ziffer 1 Satz 1 des Dienstvertrages wird durch die folgenden zwei Sätze ersetzt:

 

4.     

§ 2 clause 1 sentence 1 of the Service Agreement shall be replaced by the following two sentences:

 

Der Vorstand stellt seine ganze Arbeitskraft und all sein Wissen und Können in den Dienst der Gesellschaft. In der Bestimmung seiner Tätigkeitszeiten ist der Vorstand im Rahmen der betrieblichen Erfordernisse frei.

 

3.      The Board Member shall devote all his working capacity, knowledge and skills into the services of the Company. He shall be able to schedule his working hours, subject to business requirements.

III.   Änderung des § 3 Ziffer 1 des Dienstvertrages

 

  III.    Amendment of § 3 Clause 1 of the Service Agreement
     

§ 3 Ziffer 1 des Dienstvertrages wird wie folgt geändert:

 

  § 3 clause 1 of the Service Agreement shall be amended as follows:
     

1.    Der Vorstand erhält für seine Tätigkeit

 

  1.      The Board Member shall receive for his services

a)     ein festes Jahresgehalt („Grundvergütung“) in Höhe von EUR 200.000 brutto, das in 12 gleichen Monatsraten jeweils nachträglich am Monatsletzten ausbezahlt wird. Sofern dieser Vertrag nicht während der Dauer eines gesamten Kalenderjahres besteht, wird das Jahresfestgehalt zeitanteilig gezahlt.

 

  a)      a fixed annual salary (“basic remuneration”) in the amount of EUR 200,000 gross, which is paid in 12 equal monthly instalments at the end of each month. If this agreement does not exist for the duration of an entire calendar year, the fixed annual salary shall be paid pro rata temporis.

b)     eine jährliche variable Vergütung, die bei 100-prozentigem Erreichen der festgelegten Jahresziele maximal EUR 50.000 brutto beträgt. Die Einzelheiten, insbesondere zum Verfahren der Zielfestlegung, zur Feststellung der Zielerreichung und zur Fälligkeit ergeben sich aus dem Rahmenvertrag zur Zielvereinbarung in seiner jeweils geltenden Fassung. Die Art der Ziele, die Voraussetzungen für ihre Erreichung und ihre Gewichtung zueinander werden für das jeweilige Geschäftsjahr in einer gesonderten Zielfestlegung niedergelegt.

 

  b)     an annual variable remuneration which amounts to EUR 50,000 gross in maximum if the defined annual targets are achieved by 100 %. The details, in particular the procedure for setting targets, determining the achievement of targets and the due date, are set out in the framework agreement for the target agreement in its currently valid version. The type of targets, the prerequisites for their achievement and their weighting in relation to each other shall be laid down for the respective fiscal year in a separate definition of targets.

 

 

 

 

IV.   Einfügen der Ziffer 4 in § 3

 

   IV.       Insertion of Clause 4 in § 3

In § 3 des Dienstvertrages wird folgende Ziffer 4 ergänzt:

 

  § 3 of the Service Agreement shall be added by clause 4 as follows:
     

Sagt eine dritte Person (einschließlich solcher Unternehmen, die mit der Gesellschaft verbunden sind) dem Vorstand Anteile an der Gesellschaft oder an mit der Gesellschaft verbundenen Unternehmen oder diesbezügliche Optionen oder Ansprüche auf Optionen oder sogenannte Stock Appreciation Rights oder Phantom Stocks zu, so werden solche Zusagen weder Bestandteil des Dienstverhältnisses zwischen den Parteien dieses Vertrages noch begründen sie Verpflichtungen der Gesellschaft.

 

 

In the event that a third party (including companies which are affiliated with the Company) promises the Board Member shares in the Company or in companies affiliated with the Company or options to acquire such shares or rights to such options or so-called stock appreciation rights or phantom Stocks, such promise shall neither become part of the Service Agreement between the parties to this Agreement nor create any obligations of the Company.

 

V.      Ergänzung der Überschrift von § 10, Neufassung des § 10 des Dienstvertrages

 

  V.      Addition of the Heading of § 10, Revision of § 10 of the Service Agreement  

Die Überschrift des § 10 des Dienstvertrages wird wie folgt geändert:

 

  The heading of § 10 of the Service Agreement shall be amended as follows:

 

 

 

 

§ 10 Vertragsdauer, Abfindung   § 10 Contract Duration; Severance Payment
     

§ 10 des Dienstvertrages wird wie folgt neu gefasst:

 

  § 10 of the Service Agreement shall be revised as follows:
     

1.      Der Dienstvertrag steht insgesamt unter der aufschiebenden Bedingung, dass gemäß der Präambel der Vorstand zum Vorstand der Gesellschaft bestellt wird.

 

 

1.      The Service Agreement is subject to the condition precedent that the Board Member is appointed to the Management Board of the Company in accordance with the preamble.

 

2.      Der Dienstvertrag beginnt mit dem 1. September 2019 („Stichtagsdatum“) und endet zum 31. August 2021 („Beendigungsdatum“).

 

 

2.      The Service Agreement commences on 1st September 2019 (“Effective Date”) and ends on 31st August 2021 (“Completion Date”).

 

3.      Das Recht zur außerordentlichen Kündigung bleibt unberührt.

 

  3.      The right to terminate without notice for good cause shall remain unaffected.

4.      Im Falle eines Widerrufs der Bestellung, der Amtsniederlegung durch den Vorstand oder bei einer sonstigen Beendigung der Organstellung haben beide Parteien das Recht das Dienstverhältnis unter Einhaltung einer Kündigungsfrist von 12 Monaten zum Monatsende ordentlich zu kündigen. Eine etwaige frühere Beendigung aufgrund des § 10 Ziffer 2 dieses Vertrages bleibt unberührt.

 

  4.      In the event of revocation of the appointment, resignation from office by the Board Member or any other termination of the position, both parties have the right to terminate the service relationship ordinarily by giving 12 months' notice to the end of the month. Any earlier termination due to § 10 clause 2 of this Service Agreement shall remain unaffected.

5.      Der Vorsitzende des Aufsichtsrats wird dem Vorstand spätestens neun Monate vor Ablauf dieses Vertrages schriftlich mitteilen, ob und unter welchen Bedingungen der Aufsichtsrat den Vorstand erneut zum Vorstandsmitglied bestellen wird und ob er bereit ist, den Dienstvertrag entsprechend der Dauer der neuen Bestellung zu verlängern oder einen neuen Dienstvertrag zu mindestens gleichen Bedingungen mit ihm abzuschließen. Der Vorstand wird innerhalb von zwei Monaten ab Zugang des Angebots des Aufsichtsratsvorsitzenden erklären, ob er die erneute Bestellung annimmt und bereit ist, den für die Fortsetzung oder Erneuerung des Dienstvertrages angebotenen Bedingungen zuzustimmen.

 

  5.      The Chairman of the Supervisory Board shall inform the Board Member in writing no later than nine months before the expiry of this Service Agreement whether and under what conditions the Supervisory Board will reappoint the Board Member as a member of the Executive Board and whether he is prepared to extend the Service Agreement for the duration of the new appointment or to conclude a new service agreement with the Executive Board on at least the same terms. Within two months of receipt of the offer of the Chairman of the Supervisory Board, the Board Member will declare whether he accepts the new appointment and is prepared to agree to the terms and conditions offered for the continuation or renewal of the Service Agreement.

 

 

 

 

6.      Die Gesellschaft ist berechtigt, den Vorstand nach dem Widerruf seiner Bestellung gemäß § 84 (3) AktG oder im Zusammenhang mit einer Beendigung des Dienstvertrages, insbesondere nach einer Kündigung oder im Anschluss an den Abschluss eines Aufhebungsvertrages, ganz oder teilweise von seiner Pflicht zur Dienstleistung unter Fortzahlung der Grundvergütung gemäß § 3 Ziffer 1 lit. a) widerruflich oder unwiderruflich freizustellen. Im Fall der unwiderruflichen Freistellung werden offene Urlaubs- und sonstige Freizeitausgleichsansprüche angerechnet, die damit erledigt sind. Der Dienstvertrag im Übrigen wird von der Freistellung nicht berührt; insoweit bestehen insbesondere die Verschwiegenheitspflicht und das vertragliche Wettbewerbsverbot bis zum Ende des Dienstvertrages fort. Anderweitiger Verdienst während der Freistellungszeit wird gemäß § 615 Satz 2 BGB angerechnet. Eine Anrechnung erfolgt nicht, wenn und soweit der anderweitige Verdienst aus einer genehmigten Nebentätigkeit (§ 2 Ziffer 1 dieses Dienstvertrages) stammt.

 

  6.      The Company is entitled, after revocation of its appointment pursuant to § 84 (3) AktG or in connection with termination of the Service Agreement, in particular after termination or following the conclusion of a termination agreement, to release the Board Member in whole or in part from his obligation to provide services with continued payment of the basic remuneration pursuant to § 3 clause 1 lit. a) revocably or irrevocably. In the event of irrevocable release, outstanding vacation and other time off compensation claims shall be credited and settled. The rest of the Service Agreement shall not be affected by the release; in this respect, the obligation to maintain confidentiality and the contractual non-competition clause shall continue to apply until the end of the Service Agreement. Other earnings during the exemption period shall be credited in accordance with § 615 sentence 2 BGB. No credit shall be made if and to the extent that the other earnings originate from an approved secondary activity (§ 2 clause 1 of this Service Agreement).

 

 

 

 

7.      Der Dienstvertrag endet spätestens am Ende des Kalenderjahres, in dem das Vorstandsmitglied sein 65. Lebensjahr vollendet, sofern dieser Dienstvertrag nicht bereits nach Ziffer 1 bis 2 dieses Vertrages vor diesem Zeitpunkt geendet hat.  

7.      The Service Agreement shall end at the latest at the end of the calendar year in which the Board Member reaches the age of 65, provided that this Service Agreement has not already ended before this date in accordance with clauses 1 to 2 of this Agreement.

 

8.      Sofern der Dienstvertrag nicht über das Beendigungsdatum nach dieser Änderungsvereinbarung (oder ein später vereinbartes Beendigungsdatum nach abermaliger Wiederbestellung) hinaus fortgesetzt wird, erhält der Vorstand eine Brutto-Abfindung in Höhe von einem Jahresgehalt gemäß § 3 des Dienstvertrages in der Fassung dieser Änderungsvereinbarung. Der Bonus wird hierbei – unabhängig von der tatsächlichen Zielerreichung - auf Basis 100 % berücksichtigt. Die Abfindung ist zahlbar zum Beendigungsdatum.

 

 

8.      If the Service Agreement is not continued beyond the Completion Date under this Amendment Agreement (or a later termination date agreed upon after reappointment), the Board Member shall receive gross severance payment equal to one year's salary pursuant to § 3 of the Service Agreement as amended by this Amendment Agreement. The bonus is taken into account here - irrespective of the actual achievement of targets - on a 100% basis. The severance payment is payable on the Completion Date,

 

 

 

 

 

Der Abfindungsanspruch entfällt, wenn der Vorstand ein Angebot auf Wiederbestellung für eine Dauer von mindestens 12 Monaten im unmittelbaren Anschluss an das hiesige Beendigungsdatum zu mindestens gleichwertigen dienstvertraglichen Bedingungen und bei mindestens 12-monatiger Laufzeit in Übereinstimmung mit den Fristen gemäß § 10 Ziffer 5 in der Fassung dieser Änderungsvereinbarung erhält und dieses nicht annimmt. Erhält der Vorstand ein solches Angebot im Sinne von § 10 Ziffer 5 verspätet oder zu nicht gleichwertigen Bedingungen, oder wird ihm mitgeteilt, dass eine Wiederbestellung nicht erfolgen soll, so werden die Zahlungen gemäß § 3 in der Fassung dieser Änderungsvereinbarung, die dem Zeitraum von der Angebotsunterbreitung bzw. Mitteilung der nicht erfolgenden Wiederstellung bis zum Beendigungsdatum zuzuordnen sind, vom Abfindungsanspruch abgezogen, aber nur den Zeitraum, für den eine Freistellung nach § 10 Ziffer 6 erfolgt ist.

 

 

The severance payment claim shall lapse if the Board member receives and does not accept an offer of reappointment for a term of at least 12 months immediately following the Completion Date here under at least equivalent terms and conditions of the Service Agreement and for a term of at least 12 months in accordance with the time limits pursuant to § 10 clause 5 as amended by this Amendment Agreement. If the Board Member receives such an offer within the meaning of § 10 clause 5 belatedly or on non-equivalent terms, or is informed that a reappointment is not to take place, the payments pursuant to § 3 in the version of this Amendment Agreement, which are attributable to the period from the submission of the offer or notification of the non-occurrence of the reappointment until the Completion Date, shall be deducted from the severance payment claim but only for the period for which a release has occurred pursuant to § 10 clause 6.

 

Der Abfindungsanspruch entfällt, sofern die Nichtverlängerung des Dienstverhältnisses auf einem vom Vorstand zu vertretenen wichtigen Grund beruht.

 

 

The severance payment claim shall lapse if the non-extension of the employment relationship is due to a serious cause for which the Board Member is responsible.

 

 

 

 

 

Der Abfindungsanspruch besteht auch dann, wenn das Dienstverhältnis mindestens 12 Monate vor dem Beendigungsdatum aufgrund Kündigung der Gesellschaft gemäß § 10 Ziffer 4 in der Fassung dieser Änderungsvereinbarung endet (vorzeitiges Beendigungsdatum), jedoch nur, soweit das Dienstverhältnis nicht aus einem vom Vorstand zu vertretenen wichtigen Grund vorzeitig beendet worden ist. Endet das Dienstverhältnisses infolge einer Kündigung gemäß vorstehenden Satz weniger als 12 Monate vor dem Beendigungsdatum, so werden die Zahlungen gemäß § 3 in der Fassung dieser Änderungsvereinbarung, die dem Zeitraum von dem vorzeitigen Beendigungsdatum bis zum Beendigungsdatum zuzuordnen sind, vom Abfindungsanspruch abgezogen. Die Abfindung ist dann zum vorzeitigen Beendigungsdatum zahlbar.

 

 

The severance payment claim also exists if the employment relationship ends at least 12 months before the Completion Date due to termination of the Company pursuant to § 10 clause 4 as amended by this Amendment Agreement (Early Completion Date), but only to the extent that the employment relationship has not been prematurely terminated for serious cause for which the Board Member is responsible. If the employment relationship ends less than 12 months prior to the Completion Date as a result of a termination pursuant to the preceding sentence, the payments pursuant to § 3 as amended by this Amendment Agreement, which are attributable to the period from the Early Completion Date to the Completion Date, shall be deducted from the severance payment claim. The severance payment shall then be payable on the Early Completion Date.

 

VI.   Änderung des § 11 Ziffer 1 des Dienstvertrages

 

   VI.    Amendment of § 11 clause 1 of the Service Agreement
     

§ 11 Ziffer 1 des Dienstvertrages wird wie folgt geändert:

 

  § 11 clause 1 of the Service Agreement shall be amended as follows:
     

Ansprüche der Gesellschaft und des Vorstands aus dem Dienstverhältnis oder im Zusammenhang mit diesem Dienstverhältnis verfallen, ungeachtet ihres Rechtsgrundes, wenn die bzw. der Anspruchsberechtigte den Anspruch nicht innerhalb einer Frist von sechs Monaten, berechnet ab dem Zeitpunkt der Fälligkeit und der Kenntnis oder grob fahrlässigen Unkenntnis des Anspruchsberechtigten von den anspruchsbegründenden Umstanden, durch Erklärung in Textform gegenüber der jeweils anderen Vertragspartei geltend macht. Für die Beurteilung der Rechtzeitigkeit der Geltendmachung ist der Zugang der Erklärung maßgeblich. Dies gilt nicht für die Geltendmachung von Ansprüchen wegen Verletzung des Lebens, des Körpers oder der Gesundheit sowie bei vorsätzlichen Pflichtverletzungen. Diese Ausschlussfrist gilt auch nicht für Ansprüche auf den gesetzlichen Mindestlohn sowie für gesetzliche Fristen, die keiner Ausschlussfrist unterliegen dürfen. Die Versäumung der Ausschlussfrist führt zum Verlust des Anspruchs.

 

  Claims of the Company and the Board Member arising from or in connection with the service relationship expire, irrespective of their legal basis, if the claimant does not assert the claim within a period of six months, calculated from the due date and the knowledge or grossly negligent ignorance of the claimant of the circumstances giving rise to the claim, by declaration in text form against the respective other contracting party. For the assessment of the timeliness of the assertion, the receipt of the declaration is decisive. This does not apply to the assertion of claims due to injury to life, bodily injury or health as well as to intentional breaches of duty. The aforementioned preclusive period shall also not apply to claims regarding the statutory minimum wage as well as to statutory time limits that are no subject to limitation periods. Failure to observe the limitation period shall result in the loss of the claim.

 

 

 

 

VII.       Die übrigen Bestimmungen des Dienstvertrages behalten unverändert ihre Gültigkeit.

 

 

VII.        The other provisions of the Service Agreement remain unaffected.

 

VIII.         Die deutsche Fassung dieser Änderungsvereinbarung ist maßgeblich.   VIII.     The German version of this Amendment Agreement shall be  authoritative.

 

Gesellschaft/Company   Vorstand/ Board Member
     
Martinsried, Germany   Munich, Germany
Ort/ Place   Ort/ Place
     
9/4/2019   9/3/2019
Datum/ Date   Datum/ Date
     
/s/ Jörg Neermann   /s/ Manfred Gröppel
Unterschrift/Signature:   Unterschrift/Signature:
Für die Gesellschaft     Vorstand/ Board Member
On behalf of the Company    

 

 

 

  

Exhibit 99.1

 

 

 

Immunic, Inc.’s Interim Dosing Analysis of IMU-838 as Part of its Ongoing
Phase 2 CALDOSE-1 Study in Patients with Moderate-to-Severe Ulcerative Colitis Establishes Broad, Potentially Safe and Effective Dose Range

 

– Unblinded Data Review Committee Recommended Continuation of the Lowest, 10 mg Dose as well as the Highest, 45 mg Dose –

 

– Company Now Plans to Continue Study with All Three Dosing Arms –

 

SAN DIEGO, September 5, 2019 – Immunic, Inc. (Nasdaq: IMUX), a clinical-stage biopharmaceutical company focused on developing potentially best-in-class, oral therapies for the treatment of chronic inflammatory and autoimmune diseases, today announced the results of a pre-planned interim dosing analysis in the phase 2 CALDOSE-1 study of IMU-838 in patients with moderate-to-severe ulcerative colitis (UC). Based on the available data, an unblinded and independent data review committee has concluded that the study’s lowest, 10 mg dose was found not to be likely ineffective and that the highest, 45 mg dose was not intolerable. As a result, the company intends to continue the trial with all three dosing arms.

 

The phase 2 CALDOSE-1 trial is an international, multicenter, double-blind, placebo-controlled study being conducted in the United States and Europe and is designed to evaluate the company’s lead compound, IMU-838, in patients with UC. The study’s primary endpoint comprises a composite of a patient reported outcome and endoscopy-assessed outcome, both to be evaluated following ten weeks of induction treatment with IMU-838 or placebo.

 

Under an agreement between Immunic and the U.S. Food and Drug Administration (FDA), reached during the company’s pre-IND meeting in 2017, the CALDOSE-1 trial was designed to begin enrollment with three active dosing arms of 10 mg, 30 mg and 45 mg, respectively, in addition to a placebo arm. Based on preclinical target engagement data, Immunic had hypothesized 30 mg to be the lowest effective dose. The 10 mg dose was added to the trial at the suggestion of the FDA to include a lower dose than the expected effective doses. The interim dosing analysis was to be conducted after approximately 60 patients were evaluable following their ten-week induction treatment. At the time, Immunic anticipated that the lowest, 10 mg dose might be found to be likely ineffective in this interim dosing analysis, and therefore discontinued.

 

The interim dosing analysis has now been performed by an unblinded and independent data review committee, which has concluded that the 10 mg dose appeared not to be likely ineffective, the 45 mg dose was not intolerable, and no safety signal was identified for any of the trial’s three doses of IMU-838. The data review committee has not shared with the company any of the unblinded data underlying these conclusions, and the study remains blinded to the company, the investigators and the enrolled patients. The interim dosing analysis was not designed to be a futility analysis nor was the primary endpoint or any other endpoint of the study tested statistically.

 

 

 

 

 

 

As a result of these findings, the trial’s steering committee has recommended continuation of all three dosing arms, which recommendation is intended to be implemented by Immunic. Expansion of IMU-838’s potentially effective dose range will require inclusion of a third active dosing arm to the study’s second enrollment period and will increase the overall number of patients expected to be included in the ongoing trial from a previously anticipated 195 patients, to a total of approximately 240 anticipated patients.

 

“While unexpected, we are very pleased to learn that even the lowest, 10 mg dose seems to show activity, suggesting that the potentially effective dose range for UC patients may be broader than previously thought,” stated Daniel Vitt, Ph.D., Chief Executive Officer and President of Immunic. “Moreover, the knowledge that all three doses included in the CALDOSE-1 trial did not show unacceptable intolerance and are expected to be continued confirms the promising safety profile already established for IMU-838 in previous studies. These results speak to the strength of IMU-838 as a possible best-in-class oral therapy for this growing patient population. We look forward to continuing the study and reporting top-line data, when available.”

 

Management noted that the positive findings of this interim dosing analysis will impact the timing of completion of patient enrollment, previously expected during the second half of 2020, as well as availability of top-line data, which was anticipated during the first quarter of 2021. Management will re-evaluate and report on its adjusted timeline with respect to the CALDOSE-1 study, as well as the expected dose selection and initiation of the CALDOSE-2 phase 2 trial of IMU-838 in Crohn’s disease patients, after a thorough review has been completed.

 

Finally and as pre-defined in the study protocol, this interim dosing analysis was based on data from only a relatively small number of patients in the CALDOSE-1 trial, and no formal statistical analysis was performed. This interim dosing analysis and the conclusions made by the independent data review committee may not reflect results of a final analysis of the trial once the full data set is analyzed.

 

About IMU-838

IMU-838 is an orally available, next-generation selective immune modulator that inhibits the intracellular metabolism of activated immune cells by blocking the enzyme dihydroorotate dehydrogenase (DHODH). IMU-838 acts on activated T and B cells while leaving other immune cells largely unaffected and allows the immune system to stay functioning, e.g. in fighting infections. In previous trials, IMU-838 did not show an increased rate of infections compared to placebo. In addition, DHODH inhibitors such as IMU-838 are known to possess a direct antiviral effect. IMU-838 was successfully tested in two phase 1 clinical trials in 2017 and is currently being tested in phase 2 trials in patients with relapsing-remitting multiple sclerosis and ulcerative colitis. Immunic also intends to initiate an additional phase 2 trial in patients with Crohn’s disease. Furthermore, Immunic’s collaboration partner, Mayo Clinic, has started an investigator-sponsored proof-of-concept clinical trial testing IMU-838 activity in patients with primary sclerosing cholangitis.

 

 

 

 

 

 

About Immunic, Inc.

Immunic, Inc. (Nasdaq: IMUX) is a clinical-stage biopharmaceutical company developing a pipeline of selective oral immunology therapies aimed at treating chronic inflammatory and autoimmune diseases, including relapsing-remitting multiple sclerosis, ulcerative colitis, Crohn’s disease, and psoriasis. The company is developing three small molecule products: IMU-838 is a selective immune modulator that inhibits the intracellular metabolism of activated immune cells by blocking the enzyme DHODH; IMU-935 is an inverse agonist of RORγt; and IMU-856 targets the restoration of the intestinal barrier function. Immunic’s lead development program, IMU-838, is in phase 2 clinical development for relapsing-remitting multiple sclerosis and ulcerative colitis, with an additional phase 2 trial planned in Crohn’s disease. An investigator-sponsored proof-of-concept clinical trial for IMU-838 in primary sclerosing cholangitis is ongoing at the Mayo Clinic. For further information, please visit: www.immunic-therapeutics.com.

 

Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, future financial position, future revenue, projected expenses, prospects, plans and objectives of management are forward-looking statements. Examples of such statements include, but are not limited to, statements relating to Immunic’s three development programs and the targeted diseases; the potential for IMU-838, IMU-935 and IMU-856 to safely and effectively target diseases; preclinical and clinical data for IMU-838; the timing of future clinical trials and expected results of such trials; the nature, strategy and focus of the company; and the development and commercial potential of any product candidates of the company. Immunic may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in the forward-looking statements and you should not place undue reliance on these forward-looking statements. Such statements are based on management’s current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including, without limitation, risks and uncertainties associated with the ability to project future cash utilization and reserves needed for contingent future liabilities and business operations, the availability of sufficient resources to meet business objectives and operational requirements, the fact that the results of earlier studies and trials may not be predictive of future clinical trial results, the protection and market exclusivity provided by Immunic’s intellectual property, risks related to the drug development and the regulatory approval process and the impact of competitive products and technological changes. A further list and descriptions of these risks, uncertainties and other factors can be found in the section captioned “Item 1A. Risk Factors,” in the company’s Current Report on Form 8-K filed on July 17, 2019, and in the company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov or ir.immunic-therapeutics.com/sec-filings and on request from Immunic. Any forward-looking statement made in this release speaks only as of the date of this release. Immunic disclaims any intent or obligation to update these forward-looking statements to reflect events or circumstances that exist after the date on which they were made. Immunic expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this press release.

 

 

 

 

 

 

Contact Information


Immunic, Inc.
Jessica Breu
Manager IR and Communications
+49 89 250 0794 69
jessica.breu@immunic.de

 

Or

 

Rx Communications Group

Melody Carey

+1-917-322-2571 

immunic@rxir.com

 

 

 

 

Exhibit 99.2

 

 

Änderungsvereinbarung zum

 

DIENSTVERTRAG vom 22. August 2016

 

  Addendum to the SERVICE AGREEMENT dated 22nd August 2016

zwischen

 

 

between

 

der Immunic AG, Am Klopferspitz 19, 82152 Planegg-Martinsried

 

  Immunic AG, Am Klopferspitz 19, 82152 Planegg-Martinsried
(im Folgenden: „Gesellschaft“)  

(hereinafter: Company”)

 

und  

and

 

Herrn Dr. med. Andreas Mühler, Krüner Str. 37, 81373 München

 

  Mr. Dr. med. Andreas Mühler, Krüner Str. 37, 81373 Munich

(im Folgenden: „Vorstand“)

 

 

(hereinafter: “Board Member”)

 

     
Präambel  

Preamble

 

Die dienstvertraglichen Beziehungen zwischen den Parteien werden durch den Dienstvertrag vom 22. August 2016 geregelt („Dienstvertrag“). Die Bestellung des Vorstandes zum Mitglied des Vorstandes der Gesellschaft soll durch den Aufsichtsrat für den Zeitraum bis zum 31. August 2021 (einschließlich) verlängert werden („Laufzeit“). Dies vorausgeschickt, vereinbaren die Parteien folgende Änderungen zum vorbenannten Dienstvertrag, mit einer Laufzeit ab dem 1. September 2019 („Stichtagsdatum“) bis zum 31. August 2021 (einschließlich) („Beendigungsdatum“). Im Übrigen gilt der Dienstvertrag für die Laufzeit unverändert fort. Diese Präambel ist integraler Bestandteil dieser Änderungsvereinbarung.   The relationship between the parties is governed by a service agreement dated 22nd August 2016 (“Service Agreement”). The appointment of the Board Member as a board member of the Company is expected to be extended by the supervisory board for the period to (and including) 31st August 2021 (“Term”). Now, therefore the parties agree on the following amendments to the aforementioned Service Agreement from 1st September 2019 (“Effective Date”) to (and including) 31st August 2021 (“Completion Date”). Apart from that, the Service Agreement shall continue to apply without changes. This preamble shall be an integral part of this Addendum.

 

 

 

 

I.    Einfügen der Ziffer 5 in § 1

 

   I.       Insertion of Clause 5 in § 1

In § 1 des Dienstvertrages wird folgende Ziffer 5 ergänzt:

 

  § 1 of the Service Agreement shall be added by clause 5 as follows:
     

Der Vorstand übernimmt auf Wunsch der Gesellschaft ohne weitere Vergütung auch Positionen oder Ämter bei mit der Gesellschaft verbundenen Unternehmen (§ 15 AktG). Ebenso übernimmt der Vorstand Positionen oder Ämter bei Verbänden, Berufsvereinigungen oder sonstigen Organisationen, in denen die Gesellschaft oder ein verbundenes Unternehmen Mitglied ist. Ihm von dritter Seite diesbezüglich gewährte Vergütungen oder Aufwandsentschädigungen führt der Vorstand an die Gesellschaft ab. Auf Wunsch der Gesellschaft legt der Vorstand im Interesse der Gesellschaft oder verbundener Unternehmen übernommene Positionen oder Ämter nieder und setzt sich nach besten Kräften dafür ein, dass von der Gesellschaft benannte Nachfolger in die Positionen oder Ämter nachrücken.

 

Unberührt bleibt die Tätigkeit des Vorstands für die Immunic Inc. im Rahmen eines mit dieser Gesellschaft bestehenden Vertragsverhältnisses, die vergütet wird. Die dort erhaltene Vergütung ist nicht an die Gesellschaft abzuführen.

 

 

The Board Member shall, upon the Company's request, without any additional remuneration, also accept positions or offices in companies affiliated with the Company (Section 15 Stock Corporation Act - AktG). In the same way, the Board Member shall also accept positions or offices in associations and professional or other organizations of which the Company or an affiliated Company is a member. The Board Member shall transfer to the Company any remuneration or allowances he receives from third parties in this respect. Upon the Company's request, the Board Member shall resign from any position or office accepted in the interests of the Company or an affiliated Company and he shall do his utmost to ensure that the person nominated by the Company shall succeed him in the position or office.

 

The remunerated activities of the Board Member for Immunic Inc. in accordance with the contractual relationships agreed on with this company shall remain unaffected. Remuneration received in the context of this contractual relationship shall not be transferred to the Company.

 

 II.   Änderung des § 2  

II.       Amendment of § 2

 

§ 2 des Dienstvertrages wird wie folgt geändert:   § 2 of the Service Agreement shall be  amended as follows:

 

 

 

 

1.    Überschrift § 2  

1.      Heading § 2

 

Die Überschrift des § 2 des Dienstvertrages wird wie folgt geändert:

 

  The heading of § 2 of the Service Agreement shall be amended as follows:
§ 2 Umfang der Dienste, Nebentätigkeit  

§ 2 Scope of Services and Side Activity

 

2.    § 2 Ziffer 1 Satz 1 3.     

2.      § 2 Clause 1 sentence 1

 

§ 2 Ziffer 1 Satz 1 des Dienstvertrages wird durch die folgenden Sätze ersetzt:

 

4.     

§ 2 clause 1 sentence 1 of the Service Agreement shall be replaced by the following sentences:

 

Der Vorstand stellt 60 % seiner Arbeitskraft und all sein Wissen und Können in den Dienst der Gesellschaft. In der Bestimmung seiner Tätigkeitszeiten ist der Vorstand im Rahmen der betrieblichen Erfordernisse frei. Es besteht Einvernehmen, dass der Vorstand die verbleibenden 40 % seiner Arbeitskraft der Immunic, Inc. zur Verfügung zu stellen hat. Hinsichtlich der Verteilung der Arbeitszeiten ist auf die Interessen der Gesellschaft und der Immunic, Inc. Rücksicht zu nehmen.

 

3.      The Board Member shall devote 60 % of his working capacity, knowledge and skills into the services of the Company. He shall be able to schedule his working hours, subject to business requirements. It is agreed that the Board Member shall devote the remaining 40 % of his working capacity to Immunic, Inc. The Board Member shall reasonably take into account the interests of the Company as well as Immunic, Inc. with regard to the distribution of his working time.  

III.   Änderung des § 3 Ziffer 1 des Dienstvertrages

 

  III.     Amendment of § 3 Clause 1 of the Service Agreement
     

§ 3 Ziffer 1 des Dienstvertrages wird wie folgt geändert:

 

  § 3 clause 1 of the Service Agreement shall be amended as follows:
     

1.    Der Vorstand erhält für seine Tätigkeit

 

  1.      The Board Member shall receive for his services

a)     ein festes Jahresgehalt („Grundvergütung“) in Höhe von EUR 140.000 brutto, das in 12 gleichen Monatsraten jeweils nachträglich am Monatsletzten ausbezahlt wird. Sofern dieser Vertrag nicht während der Dauer eines gesamten Kalenderjahres besteht, wird das Jahresfestgehalt zeitanteilig gezahlt.

 

  a)      a fixed annual salary (“basic remuneration”) in the amount of EUR 140,000 gross, which is paid in 12 equal monthly instalments at the end of each month. If this agreement does not exist for the duration of an entire calendar year, the fixed annual salary shall be paid pro rata temporis.

 

 

 

 

b)     eine jährliche variable Vergütung, die bei 100-prozentigem Erreichen der festgelegten Jahresziele maximal EUR 42.000 brutto beträgt. Die Einzelheiten, insbesondere zum Verfahren der Zielfestlegung, zur Feststellung der Zielerreichung und zur Fälligkeit ergeben sich aus dem Rahmenvertrag zur Zielvereinbarung in seiner jeweils geltenden Fassung. Die Art der Ziele, die Voraussetzungen für ihre Erreichung und ihre Gewichtung zueinander werden für das jeweilige Geschäftsjahr in einer gesonderten Zielfestlegung niedergelegt.

 

  b)      an annual variable remuneration which amounts to EUR 42,000 gross in maximum if the defined annual targets are achieved by 100 %. The details, in particular the procedure for setting targets, determining the achievement of targets and the due date, are set out in the framework agreement for the target agreement in its currently valid version. The type of targets, the prerequisites for their achievement and their weighting in relation to each other shall be laid down for the respective fiscal year in a separate definition of targets.

IV.   Einfügen der Ziffer 4 in § 3

 

   IV.       Insertion of Clause 4 in § 3

In § 3 des Dienstvertrages wird folgende Ziffer 4 ergänzt:

 

  § 3 of the Service Agreement shall be added by clause 4 as follows:
     

Sagt eine dritte Person (einschließlich solcher Unternehmen, die mit der Gesellschaft verbunden sind) dem Vorstand Anteile an der Gesellschaft oder an mit der Gesellschaft verbundenen Unternehmen oder diesbezügliche Optionen oder Ansprüche auf Optionen oder sogenannte Stock Appreciation Rights oder Phantom Stocks zu, so werden solche Zusagen weder Bestandteil des Dienstverhältnisses zwischen den Parteien dieses Vertrages noch begründen sie Verpflichtungen der Gesellschaft.

 

 

In the event that a third party (including companies which are affiliated with the Company) promises the Board Member shares in the Company or in companies affiliated with the Company or options to acquire such shares or rights to such options or so-called stock appreciation rights or phantom Stocks, such promise shall neither become part of the Service Agreement between the parties to this Agreement nor create any obligations of the Company.

 

 

 

 

 

V.          Einfügen einer Ziffer 3 in § 5

 

 

V.       Insertion of Clause 3 in § 5

 

In § 5 des Dienstvertrages wird folgende Ziffer 3 ergänzt:

 

  § 5 of the Service Agreement shall be added by clause 3 as follows:
     

Der Urlaubsanspruch wird entsprechend angepasst, wenn der Vorstand regelmäßig an weniger als fünf Tagen in der Woche arbeitet. Es besteht Einvernehmen, dass der im Rahmen des Vertragsverhältnisses mit der Immunic Inc. gewährte Urlaub auf die Urlaubsansprüche im Rahmen dieses Dienstvertrages anzurechnen ist (sowie umgekehrt), so dass dem Vorstand im Rahmen beider Verträge insgesamt ein Jahresurlaub von 30 Tagen zusteht.

 

  The vacation entitlement will be adapted accordingly if the Board Member regularly works less than five days per week. It is agreed that vacation granted under the contractual relationship with Immunic Inc. will be offset against vacation entitlements deriving from this Service Agreement (and vice versa). As a result, the Board Member shall be able to take 30 days of vacation in total in the addition of these two contracts.

VI.  Ergänzung der Überschrift von § 10, Neufassung des § 10 des Dienstvertrages

 

  VI.       Addition of the Heading of § 10, Revision of § 10 of the Service Agreement  

Die Überschrift des § 10 des Dienstvertrages wird wie folgt geändert:

 

  The heading of § 10 of the Service Agreement shall be amended as follows:
§ 10 Vertragsdauer, Abfindung   § 10 Contract Duration; Severance Payment

§ 10 des Dienstvertrages wird wie folgt neu gefasst:

 

  § 10 of the Service Agreement shall be revised as follows:

1.     Der Dienstvertrag steht insgesamt unter der aufschiebenden Bedingung, dass gemäß der Präambel der Vorstand zum Vorstand der Gesellschaft bestellt wird.

 

 

1.      The Service Agreement is subject to the condition precedent that the Board Member is appointed to the Management Board of the Company in accordance with the preamble.

 

 

 

 

 

2.      Der Dienstvertrag beginnt mit dem 1. September 2019 („Stichtagsdatum“) und endet zum 31. August 2021 („Beendigungsdatum“).

 

 

2.      The Service Agreement commences on 1st September 2019 (“Effective Date”) and ends on 31st August 2021 (“Completion Date”).

 

3.      Das Recht zur außerordentlichen Kündigung bleibt unberührt.

 

  3.      The right to terminate without notice for good cause shall remain unaffected.

4.      Im Falle eines Widerrufs der Bestellung, der Amtsniederlegung durch den Vorstand oder bei einer sonstigen Beendigung der Organstellung haben beide Parteien das Recht das Dienstverhältnis unter Einhaltung einer Kündigungsfrist von 12 Monaten zum Monatsende ordentlich zu kündigen. Eine etwaige frühere Beendigung aufgrund des § 10 Ziffer 2 dieses Vertrages bleibt unberührt.

 

  4.      In the event of revocation of the appointment, resignation from office by the Board Member or any other termination of the position, both parties have the right to terminate the service relationship ordinarily by giving 12 months' notice to the end of the month. Any earlier termination due to § 10 clause 2 of this Service Agreement shall remain unaffected.

5.      Der Vorsitzende des Aufsichtsrats wird dem Vorstand spätestens neun Monate vor Ablauf dieses Vertrages schriftlich mitteilen, ob und unter welchen Bedingungen der Aufsichtsrat den Vorstand erneut zum Vorstandsmitglied bestellen wird und ob er bereit ist, den Dienstvertrag entsprechend der Dauer der neuen Bestellung zu verlängern oder einen neuen Dienstvertrag zu mindestens gleichen Bedingungen mit ihm abzuschließen. Der Vorstand wird innerhalb von zwei Monaten ab Zugang des Angebots des Aufsichtsratsvorsitzenden erklären, ob er die erneute Bestellung annimmt und bereit ist, den für die Fortsetzung oder Erneuerung des Dienstvertrages angebotenen Bedingungen zuzustimmen.

 

  5.      The Chairman of the Supervisory Board shall inform the Board Member in writing no later than nine months before the expiry of this Service Agreement whether and under what conditions the Supervisory Board will reappoint the Board Member as a member of the Executive Board and whether he is prepared to extend the Service Agreement for the duration of the new appointment or to conclude a new service agreement with the Executive Board on at least the same terms. Within two months of receipt of the offer of the Chairman of the Supervisory Board, the Board Member will declare whether he accepts the new appointment and is prepared to agree to the terms and conditions offered for the continuation or renewal of the Service Agreement.

 

 

 

 

6.      Die Gesellschaft ist berechtigt, den Vorstand nach dem Widerruf seiner Bestellung gemäß § 84 (3) AktG oder im Zusammenhang mit einer Beendigung des Dienstvertrages, insbesondere nach einer Kündigung oder im Anschluss an den Abschluss eines Aufhebungsvertrages, ganz oder teilweise von seiner Pflicht zur Dienstleistung unter Fortzahlung der Grundvergütung gemäß § 3 Ziffer 1 lit. a) widerruflich oder unwiderruflich freizustellen. Im Fall der unwiderruflichen Freistellung werden offene Urlaubs- und sonstige Freizeitausgleichsansprüche angerechnet, die damit erledigt sind. Der Dienstvertrag im Übrigen wird von der Freistellung nicht berührt; insoweit bestehen insbesondere die Verschwiegenheitspflicht und das vertragliche Wettbewerbsverbot bis zum Ende des Dienstvertrages fort. Anderweitiger Verdienst während der Freistellungszeit wird gemäß § 615 Satz 2 BGB angerechnet. Eine Anrechnung erfolgt nicht, wenn und soweit der anderweitige Verdienst aus einer genehmigten Nebentätigkeit (§ 2 Ziffer 1 dieses Dienstvertrages) stammt.   6.      The Company is entitled, after revocation of its appointment pursuant to § 84 (3) AktG or in connection with termination of the Service Agreement, in particular after termination or following the conclusion of a termination agreement, to release the Board Member in whole or in part from his obligation to provide services with continued payment of the basic remuneration pursuant to § 3 clause 1 lit. a) revocably or irrevocably. In the event of irrevocable release, outstanding vacation and other time off compensation claims shall be credited and settled. The rest of the Service Agreement shall not be affected by the release; in this respect, the obligation to maintain confidentiality and the contractual non-competition clause shall continue to apply until the end of the Service Agreement. Other earnings during the exemption period shall be credited in accordance with § 615 sentence 2 BGB. No credit shall be made if and to the extent that the other earnings originate from an approved secondary activity (§ 2 clause 1 of this Service Agreement).

 

 

 

 

7.      Der Dienstvertrag endet spätestens am Ende des Kalenderjahres, in dem das Vorstandsmitglied sein 65. Lebensjahr vollendet, sofern dieser Dienstvertrag nicht bereits nach Ziffer 1 bis 2 dieses Vertrages vor diesem Zeitpunkt geendet hat.  

7.      The Service Agreement shall end at the latest at the end of the calendar year in which the Board Member reaches the age of 65, provided that this Service Agreement has not already ended before this date in accordance with clauses 1 to 2 of this Agreement.

 

8.      Sofern der Dienstvertrag nicht über das Beendigungsdatum nach dieser Änderungsvereinbarung (oder ein später vereinbartes Beendigungsdatum nach abermaliger Wiederbestellung) hinaus fortgesetzt wird, erhält der Vorstand eine Brutto-Abfindung in Höhe von einem Jahresgehalt gemäß § 3 des Dienstvertrages in der Fassung dieser Änderungsvereinbarung. Der Bonus wird hierbei – unabhängig von der tatsächlichen Zielerreichung - auf Basis 100 % berücksichtigt. Die Abfindung ist zahlbar zum Beendigungsdatum.

 

 

8.      If the Service Agreement is not continued beyond the Completion Date under this Amendment Agreement (or a later termination date agreed upon after reappointment), the Board Member shall receive gross severance payment equal to one year's salary pursuant to § 3 of the Service Agreement as amended by this Amendment Agreement. The bonus is taken into account here - irrespective of the actual achievement of targets - on a 100% basis. The severance payment is payable on the Completion Date,

 

Der Abfindungsanspruch entfällt, wenn der Vorstand ein Angebot auf Wiederbestellung für eine Dauer von mindestens 12 Monaten im unmittelbaren Anschluss an das hiesige Beendigungsdatum zu mindestens gleichwertigen dienstvertraglichen Bedingungen und bei mindestens 12-monatiger Laufzeit in Übereinstimmung mit den Fristen gemäß § 10 Ziffer 5 in der Fassung dieser Änderungsvereinbarung erhält und dieses nicht annimmt. Erhält der Vorstand ein solches Angebot im Sinne von § 10 Ziffer 5 verspätet oder zu nicht gleichwertigen Bedingungen, oder wird ihm mitgeteilt, dass eine Wiederbestellung nicht erfolgen soll, so werden die Zahlungen gemäß § 3 in der Fassung dieser Änderungsvereinbarung, die dem Zeitraum von der Angebotsunterbreitung bzw. Mitteilung der nicht erfolgenden Wiederstellung bis zum Beendigungsdatum zuzuordnen sind, vom Abfindungsanspruch abgezogen, aber nur den Zeitraum, für den eine Freistellung nach § 10 Ziffer 6 erfolgt ist.

 

 

The severance payment claim shall lapse if the Board member receives and does not accept an offer of reappointment for a term of at least 12 months immediately following the Completion Date here under at least equivalent terms and conditions of the Service Agreement and for a term of at least 12 months in accordance with the time limits pursuant to § 10 clause 5 as amended by this Amendment Agreement. If the Board Member receives such an offer within the meaning of § 10 clause 5 belatedly or on non-equivalent terms, or is informed that a reappointment is not to take place, the payments pursuant to § 3 in the version of this Amendment Agreement, which are attributable to the period from the submission of the offer or notification of the non-occurrence of the reappointment until the Completion Date, shall be deducted from the severance payment claim but only for the period for which a release has occurred pursuant to § 10 clause 6.

 

 

 

 

 

Der Abfindungsanspruch entfällt, sofern die Nichtverlängerung des Dienstverhältnisses auf einem vom Vorstand zu vertretenen wichtigen Grund beruht.

 

 

The severance payment claim shall lapse if the non-extension of the employment relationship is due to a serious cause for which the Board Member is responsible.

 

Der Abfindungsanspruch besteht auch dann, wenn das Dienstverhältnis mindestens 12 Monate vor dem Beendigungsdatum aufgrund Kündigung der Gesellschaft gemäß § 10 Ziffer 4 in der Fassung dieser Änderungsvereinbarung endet (vorzeitiges Beendigungsdatum), jedoch nur, soweit das Dienstverhältnis nicht aus einem vom Vorstand zu vertretenen wichtigen Grund vorzeitig beendet worden ist. Endet das Dienstverhältnisses infolge einer Kündigung gemäß vorstehenden Satz weniger als 12 Monate vor dem Beendigungsdatum, so werden die Zahlungen gemäß § 3 in der Fassung dieser Änderungsvereinbarung, die dem Zeitraum von dem vorzeitigen Beendigungsdatum bis zum Beendigungsdatum zuzuordnen sind, vom Abfindungsanspruch abgezogen. Die Abfindung ist dann zum vorzeitigen Beendigungsdatum zahlbar.

 

 

The severance payment claim also exists if the employment relationship ends at least 12 months before the Completion Date due to termination of the Company pursuant to § 10 clause 4 as amended by this Amendment Agreement (Early Completion Date), but only to the extent that the employment relationship has not been prematurely terminated for serious cause for which the Board Member is responsible. If the employment relationship ends less than 12 months prior to the Completion Date as a result of a termination pursuant to the preceding sentence, the payments pursuant to § 3 as amended by this Amendment Agreement, which are attributable to the period from the Early Completion Date to the Completion Date, shall be deducted from the severance payment claim. The severance payment shall then be payable on the Early Completion Date.

 

 

 

 

 

VII.      Änderung des § 11 Ziffer 1 des Dienstvertrages

 

   VII.        Amendment of § 11 clause 1 of the Service Agreement
     

§ 11 Ziffer 1 des Dienstvertrages wird wie folgt geändert:

 

  § 11 clause 1 of the Service Agreement shall be amended as follows:
     

Ansprüche der Gesellschaft und des Vorstands aus dem Dienstverhältnis oder im Zusammenhang mit diesem Dienstverhältnis verfallen, ungeachtet ihres Rechtsgrundes, wenn die bzw. der Anspruchsberechtigte den Anspruch nicht innerhalb einer Frist von sechs Monaten, berechnet ab dem Zeitpunkt der Fälligkeit und der Kenntnis oder grob fahrlässigen Unkenntnis des Anspruchsberechtigten von den anspruchsbegründenden Umstanden, durch Erklärung in Textform gegenüber der jeweils anderen Vertragspartei geltend macht. Für die Beurteilung der Rechtzeitigkeit der Geltendmachung ist der Zugang der Erklärung maßgeblich. Dies gilt nicht für die Geltendmachung von Ansprüchen wegen Verletzung des Lebens, des Körpers oder der Gesundheit sowie bei vorsätzlichen Pflichtverletzungen. Diese Ausschlussfrist gilt auch nicht für Ansprüche auf den gesetzlichen Mindestlohn sowie für gesetzliche Fristen, die keiner Ausschlussfrist unterliegen dürfen. Die Versäumung der Ausschlussfrist führt zum Verlust des Anspruchs.

 

  Claims of the Company and the Board Member arising from or in connection with the service relationship expire, irrespective of their legal basis, if the claimant does not assert the claim within a period of six months, calculated from the due date and the knowledge or grossly negligent ignorance of the claimant of the circumstances giving rise to the claim, by declaration in text form against the respective other contracting party. For the assessment of the timeliness of the assertion, the receipt of the declaration is decisive. This does not apply to the assertion of claims due to injury to life, bodily injury or health as well as to intentional breaches of duty. The aforementioned preclusive period shall also not apply to claims regarding the statutory minimum wage as well as to statutory time limits that are no subject to limitation periods. Failure to observe the limitation period shall result in the loss of the claim.

VIII.        Die übrigen Bestimmungen des Dienstvertrages behalten unverändert ihre Gültigkeit.

 

  VIII.        The other provisions of the Service Agreement remain unaffected.

 

IX.           Die deutsche Fassung dieser Änderungsvereinbarung ist maßgeblich.   IX.        The German version of this Amendment Agreement is authoritative.

 

Gesellschaft/Company   Vorstand/ Board Member
     
Martinsried, Germany   Munich, Germany
Ort/ Place   Ort/ Place
     
9/4/2019   9/3/2019
Datum/ Date   Datum/ Date
     
/s/ Jörg Neermann   /s/ Andreas Mühler
Unterschrift/Signature:   Unterschrift/Signature:
Für die Gesellschaft     Vorstand/ Board Member
On behalf of the Company    

 

 

 

 

 

Exhibit 99.3

 

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”) is entered into as of September 1, 2019 (the “Effective Date”), by and between IMMUNIC, INC., a Delaware corporation (the “Company”), and ANDREAS ROLF MUEHLER (the “Executive”), with residential address of ***.

 

WHEREAS, the Company desires that the Executive be retained to serve in the capacity of Chief Medical Officer of the Company, and the Executive has agreed to serve in such position in accordance with the terms and conditions of this Agreement;

 

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, and for other valuable consideration, the Company and the Executive hereby agree as follows:

 

1.                  Certain Definitions. Capitalized terms shall have the meanings set forth on Exhibit A attached hereto.

 

2.                  Term of Employment. The Company shall employ the Executive, and the Executive shall accept employment, upon the terms and conditions set forth in this Agreement for the period commencing on the Effective Date and ending on the earlier of: (a) August 31, 2021 and (b) the Executive’s Date of Termination as provided in Section 6 (such period shall be referred to as the “Initial Term of Employment”). Following the Initial Term of Employment, both parties intend to negotiate in good faith an extension of this Agreement that may consider a new adjustment to section 4(a) regarding the split of efforts between the Company and Immunic AG or a possible re-assignment of the Executive within the Company or as consultant to the Company. The Company shall provide written notice of non-renewal at least nine (9) months, or the Executive shall provide written notice of non-renewal at least six (6) months, before the end of Initial Term of Employment, if such negotiation in good faith for an extension to this Agreement will no longer be sought. In the event the parties negotiate an extension of this Agreement, the extended period, together with the Initial Term of Employment shall be referred to in this Agreement as the “Term of Employment”.

 

3.                  Executive’s Duties and Obligations.

 

(a)                Duties. The Executive shall serve as the Company’s Chief Medical Officer. The Executive shall be responsible for all duties customarily associated with the Chief Medical Officer of a publicly-traded company. The Executive shall report directly to the Company’s Chief the Executive Officer (“CEO”) and shall be subject to reasonable policies established by the CEO.

 

(b)               Location of Employment. The Executive’s principal place of business shall be primarily at the headquarters of the Company to be located in New York, New York. In addition, the Executive acknowledges and agrees that the performance by the Executive of the Executive’s duties shall require frequent travel including, without limitation, overseas travel from time to time, and may also work from his home office, to the extent it does not interfere with work assignments.

 

(c)                Confidential Information, Assignment of Rights, Non-Solicitation and Non-Competition Agreement. In consideration of the covenants contained herein, the Executive has executed and agrees to be bound by the Confidential Information, Assignment of Rights, Non-Solicitation and Non-Competition Agreement (the “Confidentiality Agreement”) attached to this Agreement as Exhibit B. The Executive shall comply at all times with the covenants (including covenants not to compete or solicit employees, consultants and independent contractors) and other terms and conditions of the Confidentiality Agreement and all other reasonable policies of the Company governing its confidential and proprietary information. The Executive’s obligations under the Confidentiality Agreement shall survive the Term of Employment.

 

 

 

 

4.                  Devotion of Time to the Company’s Business.

 

(a)                Efforts. During the Term of Employment, the Executive shall devote forty percent (40%) of his business time, attention and effort to the affairs of the Company, excluding any periods of disability, vacation, or sick leave to which the Executive is entitled, and shall use his reasonable best efforts to perform the duties properly assigned to him hereunder and to promote the interests of the Company. It is agreed the Executive shall devote the remaining sixty percent (60%) of his business time to Immunic AG.

 

(b)               Other Activities. The Executive may serve on corporate, civic or charitable boards or committees, deliver lectures, fulfill speaking engagements and may manage personal investments; provided that such activities do not individually or in the aggregate significantly interfere with the performance of his duties under this Agreement. In addition, Executive may engage in certain limited consulting agreements as provided in the Service Agreement dated September 21, 2016 with Immunic AG.

 

5.                  Compensation and Benefits.

 

(a)                Base Salary. The Company shall pay to the Executive in accordance with its normal payroll practices (but not less frequently than monthly) an annual salary at a rate of one hundred eighty thousand dollars ($180,000 USD) per annum (“Base Salary”). The Executive’s Base Salary shall be reviewed at least annually for the purpose of determining increases, if any, based on the Executive’s performance, the performance of the Company, then prevailing salary scales for comparable positions, inflation and other relevant factors. Effective as of the date of any increase in the Executive’s Base Salary, Base Salary as so increased shall be considered the new Base Salary for all purposes of this Agreement and may not thereafter be reduced. Any increase in Base Salary shall not limit or reduce any other obligation of the Company to the Executive under this Agreement.

 

(b)               Annual Bonus. During the Term of Employment, the Executive shall be eligible to receive an annual cash incentive award (“Annual Bonus”) pursuant to the bonus plan then in effect for executive employees of the Company (the “Bonus Plan”). All Annual Bonuses are subject to the terms and conditions of then-current Bonus Plan adopted by the Company. If the Executive achieves his target performance goals for a Fiscal Year, which goals shall be determined by the Compensation Committee on an annual or more frequent basis, the Annual Bonus shall be not less than eighteen percent (18%) of his Base Salary. To be eligible to receive an Annual Bonus, the Executive must be actively employed by the Company at the time the Annual Bonus, if any, is paid; provided, however, that if the Executive’s employment is terminated by the Company without Cause, by the Executive for Good Reason, or upon non-renewal by the Executive as provided in Section 2, Executive shall be entitled to receive a pro-rated Annual Bonus for such Fiscal Year, subject to his achievement of his target performance goals prior to such termination. Any such pro-rated bonus shall be paid within thirty (30) days of the Executive’s termination of employment.

 

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(c)                Equity Awards. As soon as practicable following the Effective Date, and subject to approval of the Incentive Plan Committee, Executive shall receive a grant of equity-based compensation in the form of a stock option grant. The terms and conditions of the equity award shall be documented in a corresponding Nonqualified Stock Option Agreement between the Company and the Executive. The equity award will provide an option to acquire forty thousand (40,000) shares of the Company’s common stock under the Immunic, Inc. 2019 Omnibus Equity Incentive Plan (“Equity Plan). The equity award will reflect a per share exercise price equal to the fair market value of the Company’s common stock on the date of grant, as determined pursuant to the terms of the Equity Plan. From time to time, the Executive may receive additional equity awards under the Equity Plan (or under any other equity incentive plan adopted by the Company to supplement or succeed the Equity Plan) subject to such terms and conditions as the Incentive Plan Committee, in its sole discretion, may determine.

 

(d)               Benefits. During the Term of Employment, the Executive shall be entitled to participate in all employee benefit plans, programs and arrangements made available generally to the Company’s senior executives or to other full-time employees on substantially the same basis that such benefits are provided to such senior executives of a similar level or to other full-time employees (including, without limitation profit-sharing, savings and other retirement plans or programs (e.g., a 401(k) plan)), long-term cash incentive plan, program or arrangement, medical, dental, hospitalization, vision, short- term and long-term disability and life insurance plans or programs, accidental death and dismemberment protection, travel accident insurance, and any other fringe benefit or employee welfare benefit plans or programs that may be sponsored by the Company from time to time, including any plans or programs that supplement the above-listed types of plans or programs (whether funded or unfunded); provided, however, that during the Term of Employment, the Executive shall not be eligible to participate in any generally available severance benefit plan, program or arrangement sponsored or maintained by the Company. Nothing in this Agreement shall be construed to require the Company to establish or maintain any such fringe or employee benefit plans, programs or arrangements. If a conflict should exist between similar benefits afforded under any Company policy and the benefits afforded under this Agreement, to the extent that this Agreement shall provide for greater benefits, the terms of this Agreement shall control.

 

(e)                Vacations. During the Term of Employment, the Executive shall be entitled to an annual aggregate maximum of thirty (30) days’ vacation under this Agreement and his Service Agreement with Immunic AG.

 

(f)                Reimbursement of Expenses. During the Term of Employment, the Executive shall be entitled to receive prompt reimbursement for all reasonable business-related or employment-related expenses incurred by the Executive upon the receipt by the Company of reasonable documentation in accordance with standard practices, policies and procedures applicable to other senior executives of the Company.

 

6.                  Termination of Employment. The Term of Employment shall be automatically terminated upon the first to occur of the following:

 

(a)                Death. The Executive’s employment shall terminate immediately upon the Executive’s death.

 

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(b)               Disability. If the Executive is Disabled, either party may terminate the Executive’s employment due to such Disability upon delivery of written notice to the other party. The effective date of such termination of employment will be the Date of Termination set forth in such written notice or immediately upon delivery of such written notice if no effective date is specified in the written notice. For avoidance of doubt, if the Executive’s employment is terminated pursuant to this Section 6(b), his employment will not constitute a termination of employment by the Company without Cause or by the Executive for Good Reason.

 

(c)                Termination by the Executive Without Good Reason. The Executive may terminate his employment for any reason other than Good Reason upon his delivery of written notice to the Company at least thirty (30) days prior to his Date of Termination.

 

(d)               Termination by the Executive for Good Reason. The Executive may terminate his employment for Good Reason if (i) not later than ninety (90) days after the occurrence of any act or omission that constitutes Good Reason, the Executive provides the Company with a written notice setting forth in reasonable detail the acts or omissions that constitute Good Reason, (ii) the Company fails to correct or cure the acts or omissions within thirty (30) days after it receives such written notice, and (iii) the Executive terminates his employment with the Company after the expiration of such cure period but not later than sixty (60) days after the expiration of such cure period.

 

(e)                Termination by the Company Without Cause. The Company may terminate the Executive’s employment without Cause upon delivery of written notice to the Executive at least thirty (30) days prior to his Date of Termination.

 

(f)                Termination Upon Non-Renewal. Unless otherwise agreed to by the parties, the Executive’s employment shall terminate on the last day of the Initial Term of Employment if either the Company or the Executive provides the other party with a written notice of non-renewal of this Agreement in accordance with Section 2 and the parties do not extend this Agreement prior to the expiration of the Initial Term of Employment (“Non-Renewal”).

 

(g)               Termination by the Company for Cause. Upon the occurrence of any act or omission that constitutes Cause, the Company may terminate the Executive’s employment upon delivery of written notice to the Executive at least fifteen (15) days prior to his Date of Termination, unless the Executive cures such acts or omissions constituting Cause to the satisfaction of the Company prior to the expiration of such period.

 

7.                  Compensation and Benefits Payable Upon of Termination of Employment.

 

(a)                Payment of Accrued But Unpaid Compensation and Benefits. Upon the Executive’s termination of employment for any reason, the Executive (or his Beneficiary following the Executive’s death) shall receive (i) a lump sum payment on the Date of Termination in an amount equal to the sum of the Executive’s earned but unpaid Base Salary through his Date of Termination plus his accrued but unused vacation days at the Executive’s Base Salary in effect as of his Date of Termination; plus (ii) any other benefits or rights the Executive has accrued or earned through his Date of Termination in accordance with the terms of the applicable fringe or employee benefit plans and programs of the Company. Except as provided in Section 7(b) or (c) below or as expressly provided pursuant to the terms of any employee benefit plan, the Executive will not be entitled to earn or accrue any additional compensation or benefits for any period following his Date of Termination.

 

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(b)               Termination of Employment Due to Death or Disability. In addition to the compensation and benefits payable under Section 7(a) above, if the Executive’s employment is terminated due to his death or Disability, the Executive (or his Beneficiary following the Executive’s death) shall receive:

 

(i)                 the Executive’s accrued but unpaid Annual Bonus, if any, for the Fiscal Year ended prior to his Termination Date payable at the same time annual bonuses for such Fiscal Year are paid to other key executives of the Company pursuant to the terms of the Bonus Plan; and

 

(ii)               one hundred percent (100%) of the Executive’s outstanding Equity Awards as of the Date of Termination will be fully vested and exercisable.

 

(c)                Termination of Employment by the Company Without Cause, by the Executive for Good Reason or Upon Non-Renewal by the Company. In addition to the compensation and benefits payable under Section 7(a) above, if the Executive’s employment is terminated by the Company without Cause, by the Executive for Good Reason or upon Non-Renewal in accordance with Section 2 where it is the Company that provided written notice of non-renewal of this Agreement in accordance with Section 2, and the Executive returns an executed Release to the Company, which becomes final, binding and irrevocable within sixty (60) days following the Executive’s Date of Termination in accordance with Section 8, the Executive (or his Beneficiary following the Executive’s death) shall receive:

 

(i)                 the Executive’s accrued but unpaid Annual Bonus, if any, for the Fiscal Year ended prior to his Termination Date payable at the same time annual bonuses for such Fiscal Year are paid to other key executives of the Company pursuant to the terms of the Bonus Plan;

 

(ii)               one hundred percent (100%) of the Executive’s outstanding Equity Awards as of the Date of Termination will be fully vested and exercisable;

 

(iii)              a severance payment payable in a single lump sum within five (5) business days after the Executive’s Release becomes final, binding and irrevocable in accordance with Section 8, in an amount equal to twelve (12) months of Base Salary; and

 

(iv)             reimbursement of the COBRA premiums, if any, paid by the Executive for continuation coverage for the Executive, his spouse and dependents under the Company’s group health, dental and vision plans for the period such individuals have COBRA continuation coverage.

 

Notwithstanding the foregoing, if the Executive materially breaches this Agreement or the Executive’s Confidential Agreement, then the Company’s continuing obligations under this Section 7(c) shall cease as of the date of the breach and the Executive shall be entitled to no further payments hereunder.

 

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8.                  Release. As a condition of receiving the compensation and benefits described in Section 7(c), the Executive must execute a release of any and all claims arising out of the Executive’s employment with the Company or the Executive’s separation from such employment (including, without limitation, claims relating to age, disability, sex or race discrimination to the extent permitted by law), excepting (i) claims for benefits under any employee benefit plan in accordance with the terms of such employee benefit plan, (ii) any right to exercise Equity Awards that are vested on the Date of Termination pursuant to the terms of such Equity Awards (as modified by the Employment Agreement), (iii) claims based on breach of the Company’s obligations to pay the compensation and benefits described in Sections 5 and 7(a) or (c) of this Employment Agreement, (iv) claims arising under the Age Discrimination in Employment Act after the date the Executive signs such release, and (v) any right to indemnification by the Company or to coverage under directors and officers liability insurance to which the Executive is otherwise entitled in accordance with this Agreement and the Company’s articles of incorporation or by laws or other agreement between the Executive and the Company (the “Release”). Such Release shall be in a form tendered to the Executive by the Company within five (5) business days following the termination of the Executive’s employment by the Company without Cause or by the Executive for Good Reason, which shall comply with any applicable legislation or judicial requirements, including, but not limited to, the Older Workers Benefit Protection Act, and shall be substantially in the form of release attached as Exhibit C. The compensation and benefits described in Section 7(c) will not be paid to the Executive if the Executive fails to execute the Release within the time frame specified in such Release, if the Executive revokes the Release within the applicable revocation period set forth in such Release or if the revocation period expires more than sixty (60) days following the Executive’s Date of Termination.

 

9.                  Excess Parachute Excise Tax.

 

(a)                Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment, award, benefit or distribution (including any acceleration) by the Company or any entity which effectuates a transaction described in Section 280G(b)(2)(A)(i) of the Code to or for the benefit of the Executive (whether pursuant to the terms of this Agreement or otherwise, but determined before application of any reductions required pursuant to this Section 9) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties are incurred with respect to such excise tax by the Executive (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), the Company will automatically reduce such Payments to the extent, but only to the extent, necessary so that no portion of the remaining Payments will be subject to the Excise Tax, unless the amount of such Payments that the Executive would retain after payment of the Excise Tax and all applicable Federal, state and local income taxes without such reduction would exceed the amount of such Payments that the Executive would retain after payment of all applicable Federal, state and local taxes after applying such reduction. Unless otherwise elected by the Executive, to the extent permitted under Code Section 409A, such reduction shall first be applied to any severance payments payable to the Executive under this Agreement, then to the accelerated vesting on any Equity Awards.

 

(b)               All determinations required to be made under this Section 9, including the assumptions to be utilized in arriving at such determination, shall be made by the Company’s independent auditors or such other certified public accounting firm of national standing reasonably acceptable to the Executive as may be designated by the Company (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and the Executive within fifteen (15) business days of the receipt of notice from the Executive that there has been a Payment, or such earlier time as is requested by either the Company or the Executive. All fees and expenses of the Accounting Firm shall be borne solely by the Company. If the Accounting Firm determines that no Excise Tax is payable by the Executive, it shall furnish the Executive with a written opinion to such effect. Any determination by the Accounting Firm shall be binding upon the Company and the Executive.

 

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10.              Legal Fees. All reasonable legal fees and related expenses (including costs of experts, evidence and counsel) paid or incurred by the Executive pursuant to any claim, dispute or question of interpretation relating to this Agreement shall be paid or reimbursed by the Company if the Executive is successful on the merits pursuant to a legal judgment or arbitration. Except as provided in this Section 10, each party shall be responsible for its own legal fees and expenses in connection with any claim or dispute relating to this Agreement. The Company will reimburse the Executive for all legal fees associated with the negotiation and execution of this agreement, up to a maximum amount of five thousand dollars ($5,000 USD).

 

11.              Beneficiary. If the Executive dies prior to receiving all of the amounts payable to him in accordance with the terms of this Agreement, such amounts shall be paid to one or more beneficiaries (each, a “Beneficiary”) designated by the Executive in writing to the Company during his lifetime, or if no such Beneficiary is designated, to the Executive’s estate. Such payments shall be made in accordance with the terms of this Agreement. The Executive, without the consent of any prior Beneficiary, may change his designation of Beneficiary or Beneficiaries at any time or from time to time by a submitting to the Company a new designation in writing.

 

12.              Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand, email or mailed within the continental United States by first class certified mail, return receipt requested, postage prepaid, addressed as follows:

 

If to the Company:

 

Immunic, Inc.

c/o Immunic AG

Am Klopferspitz 19

82152 Planegg-Martinsried, Germany

Attn: Chief Operating Officer

Email: manfred.groeppel@immunic.de

 

If to the Executive:

 

Andreas Rolf Muehler

***

 

Addresses may be changed by written notice sent to the other party at the last recorded address of that party.

 

13.              Withholding. The Company shall be entitled to withhold from payments due hereunder any required federal, state or local withholding or other taxes.

 

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14.              Arbitration.

 

(a)                If the parties are unable to resolve any dispute or claim relating directly or indirectly to this agreement or any dispute or claim between the Executive and the Company or its officers, directors, agents, or employees (a “Dispute”), then either party may require the matter to be settled by final and binding arbitration by sending written notice of such election to the other party clearly marked “Arbitration Demand.” Thereupon such Dispute shall be arbitrated in accordance with the terms and conditions of this Section 16. Notwithstanding the foregoing, either party may apply to a court of competent jurisdiction for a temporary restraining order, a preliminary injunction, or other equitable relief to preserve the status quo or prevent irreparable harm or to enforce the terms of the Confidentiality Agreement.

 

(b)               The Dispute shall be resolved by a single arbitrator in an arbitration administered by the American Arbitration Association in accordance with its Employment Arbitration Rules and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The decision of the arbitrator shall be final and binding on the parties, and specific performance giving effect to the decision of the arbitrator may be ordered by any court of competent jurisdiction.

 

(c)                Nothing contained herein shall operate to prevent either party from asserting counterclaim(s) in any arbitration commenced in accordance with this Agreement, and any such party need not comply with the procedural provisions of this Section 16 in order to assert such counterclaim(s).

 

(d)               The arbitration shall be filed with the office of the American Arbitration Association (“AAA”) located in New York or such other AAA office as the parties may agree upon (without any obligation to so agree). The arbitration shall be conducted pursuant to the Employment Arbitration Rules of AAA as in effect at the time of the arbitration hearing, such arbitration to be completed in a sixty (60)-day period. In addition, the following rules and procedures shall apply to the arbitration:

 

(e)                The arbitrator shall have the sole authority to decide whether or not any Dispute between the parties is arbitrable and whether the party presenting the issues to be arbitrated has satisfied the conditions precedent to such party’s right to commence arbitration as required by this Section 14.

 

(f)                The decision of the arbitrator, which shall be in writing and state the findings, the facts and conclusions of law upon which the decision is based, shall be final and binding upon the parties, who shall forthwith comply after receipt thereof. Judgment upon the award rendered by the arbitrator may be entered by any competent court. Each party submits itself to the jurisdiction of any such court, but only for the entry and enforcement to judgment with respect to the decision of the arbitrator hereunder.

 

(g)               The arbitrator shall have the power to grant all legal and equitable remedies (including, without limitation, specific performance) and award compensatory and punitive damages if authorized by applicable law.

 

(h)               Except as otherwise provided in Section 10 or by law, the parties shall bear their own costs in preparing for and participating in the resolution of any Dispute pursuant to this Section 16, and the costs of the arbitrator(s) shall be equally divided between the parties.

 

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(i)                 Except as provided in the last sentence of Section 14(a), the provisions of this Section 14 shall be a complete defense to any suit, action or proceeding instituted in any federal, state or local court or before any administrative tribunal with respect to any Dispute arising in connection with this Agreement. Any party commencing a lawsuit in violation of this Section 14 shall pay the costs of the other party, including, without limitation, reasonable attorney’s fees and defense costs.

 

15.              Recoupment.

 

(a)                Policy. Any incentive-based compensation received by the Executive including Annual Bonus and Equity Awards, whether pursuant to this Agreement or otherwise, that is granted, earned or vested based in any part on attainment of a financial reporting measure, shall be subject to the terms and conditions of the Company’s Claw Back Compensation Policy, if any (the “Recoupment Policy”), and any other policy of recoupment of compensation as shall be adopted from time to time by the Board or its Compensation Committee as it deems necessary or appropriate to comply with the requirements of Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Section 304 of the Sarbanes-Oxley Act of 2002, and any implementing rules and regulations of the U.S. Securities and Exchange Commission and applicable listing standards of a national securities exchange adopted in accordance with any of the foregoing. The terms and conditions of the Recoupment Policy, including any changes to the Recoupment Policy adopted from time to time by the Company, are hereby incorporated by reference into this Agreement.

 

(b)               Non-Indemnification and Advancement for Recoupment. The Company shall not be obligated to indemnify or advance funds to the Executive for any payment or reimbursement by the Executive to the Company of any bonus or other incentive-based or equity-based compensation previously received by the Executive or payment of any profits realized by the Executive from the sale of securities of the Company, as required in each case under the Securities Exchange Act of 1934 or under the rules of the stock exchange on which the common stock of the Company is listed (including any such payments or reimbursements under Section 304 and 306 of the Sarbanes-Oxley Act of 2002, or pursuant to Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and any implementing rules and regulations of the U.S. Securities and Exchange Commission and applicable listing standards of a national securities exchange adopted in accordance with any of the foregoing).

 

16.              Miscellaneous

 

(a)                Governing Law. This Agreement shall be interpreted, construed, governed and enforced according to the laws of the State of New York without regard to the application of choice of law rules.

 

(b)               Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes any and all other prior agreements, promises, understandings and representations regarding the Executive’s employment, compensation, severance or other payments contingent upon the Executive’s termination of employment, whether written or otherwise, other than the Executive’s Service Agreement with Immunic AG.

 

(c)                Amendments. No amendment or modification of the terms or conditions of this Agreement shall be valid unless in writing and signed by the parties hereto.

 

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(d)               Severability. If one or more provisions of this Agreement are held to be invalid or unenforceable under applicable law, such provisions shall be construed, if possible, so as to be enforceable under applicable law, or such provisions shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

 

(e)                Binding Effect. This Agreement shall be binding upon and inure to the benefit of the beneficiaries, heirs and representatives of the Executive (including the Beneficiary) and the successors and assigns of the Company. The Company shall require any successor (whether direct or indirect, by purchase, merger, reorganization, consolidation, acquisition of property or stock, liquidation, or otherwise) to all or substantially all of its assets, by agreement in form and substance satisfactory to the Executive, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform this Agreement if no such succession had taken place. Regardless whether such agreement is executed, this Agreement shall be binding upon any successor of the Company in accordance with the operation of law and such successor shall be deemed the Company for purposes of this Agreement.

 

(f)                Successors and Assigns; Nonalienation of Benefits. Except as provided in Section (e) in the case of the Company, or to the Beneficiary in the case of the death of the Executive, this Agreement is not assignable by any party. Compensation and benefits payable to the Executive under this Agreement shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary, prior to actually being received by the Executive or a Beneficiary, as applicable, and any such attempt to dispose of any right to benefits payable hereunder shall be void and no payment to be made hereunder shall be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or other charge.

 

(g)               Remedies Cumulative; No Waiver. No remedy conferred upon either party by this Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy given hereunder or now or hereafter existing at law or in equity. No delay or omission by either party in exercising any right, remedy or power hereunder or existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or power may be exercised by such party from time to time and as often as may be deemed expedient or necessary by such party in such party’s sole discretion.

 

(h)               Survivorship. Notwithstanding anything in this Agreement to the contrary, all terms and provisions of this Agreement that by their nature extend beyond the Date of Termination shall survive termination of this Agreement.

 

(i)                 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute one document.

 

17.              No Contract of Employment. Nothing contained in this Agreement will be construed as a right of the Executive to be continued in the employment of the Company, or as a limitation of the right of the Company to discharge the Executive with or without Cause.

 

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18.              Section 409A of the Code.

 

(a)                The intent of the parties is that payments and benefits under this Agreement comply with, or be exempt from, Section 409A of the Code and, accordingly, to the maximum extent permitted, this Agreement shall be construed and interpreted in accordance with such intent. The Executive’s termination of employment (or words to similar effect) shall not be deemed to have occurred for purposes of this Agreement unless such termination of employment constitutes a “separation from service” within the meaning of Code Section 409A and the regulations and other guidance promulgated thereunder.

 

(b)               Notwithstanding any provision in this Agreement to the contrary, if the Executive is deemed on the date of the Executive’s separation from service to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B) and using the identification methodology selected by the Company from time to time, or if none, the default methodology set forth in Code Section 409A, then with regard to any payment or the providing of any benefit that constitutes “non-qualified deferred compensation” pursuant to Code Section 409A and the regulations issued thereunder that is payable due to the Executive’s separation from service, to the extent required to be delayed in compliance with Code Section 409A(a)(2)(B), such payment or benefit shall not be made or provided to the Executive prior to the earlier of (i) the expiration of the six (6)-month period measured from the date of the Executive’s separation from service, and (ii) the date of the Executive’s death (the “Delay Period”). On the first day of the seventh (7th) month following the date of the Executive’s separation from service or, if earlier, on the date of the Executive’s death, all payments delayed pursuant to this Section 18 shall be paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits due to the Executive under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

 

(c)                To the extent any reimbursement of costs and expenses (including reimbursement of COBRA premiums pursuant to Section 7(c)(vi)) provided for under this Agreement constitutes taxable income to the Executive for Federal income tax purposes, such reimbursements shall be made as soon as practicable after the Executive provides proper documentation supporting reimbursement but in no event later than December 31 of the calendar year next following the calendar year in which the expenses to be reimbursed are incurred. With regard to any provision herein that provides for reimbursement of expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, and (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

 

(d)               If under this Agreement, any amount is to be paid in two (2) or more installments, each such installment shall be treated as a separate payment for purposes of Section 409A.

 

19.              Executive Acknowledgement. The Executive hereby acknowledges that the Executive has read and understands the provisions of this Agreement, that the Executive has been given the opportunity for the Executive’s legal counsel to review this Agreement, that the provisions of this Agreement are reasonable and that the Executive has received a copy of this Agreement.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

11 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Employment Agreement to be executed as of the 4th day of September 2019.

 

IMMUNIC, INC.

 

By: /s/ Daniel Vitt

Name: Daniel Vitt

Title: Chief Executive Officer

 

 

EXECUTIVE

 

/s/ Andreas Rolf Muehler
Andreas Rolf Muehler

 

12 

 

 

EXHIBIT A

 

“Annual Bonus” shall have the meaning set forth in Section 5(b) of the Employment Agreement.

 

“Base Salary” shall have the meaning set forth in Section 5(a) of the Employment Agreement.

 

“Beneficiary” shall have the meaning set forth in Section 13 of the Employment Agreement.

 

“Board” means the Board of Directors of the Company.

 

“Bonus Plan” shall have the meaning set forth in Section 5(c) of the Employment Agreement.

 

“Cause” means one or more of the following:

 

(i)       The Executive’s willful failure to perform his duties hereunder (other than as a result of illness or injury) that directly, materially and demonstrably impairs or damages the property, goodwill, reputation, business or finances of the Company;

 

(ii)       The Executive’s willful misconduct or gross negligence in the performance of his duties hereunder that directly, materially and demonstrably impairs or damages the property, goodwill, reputation, business or finances of the Company;

 

(iii)       The conviction of, or plea of nolo contendere by, the Executive to, a felony or a crime involving moral turpitude that materially and demonstrably impairs or damages the property, goodwill, reputation, business or finances of the Company; or

 

(iv)       The Executive’s commission of any willful acts of personal dishonesty in connection with his responsibilities as an employee of the Company that directly, materially and demonstrably impairs or damages the property, goodwill, reputation, business or finances of the Company.

 

“Code” means the Internal Revenue Code of 1986, as amended and the regulations promulgated thereunder.

 

“Competing Business” shall have the meaning set forth in Section 10(a) of Exhibit B to the Employment Agreement.

 

“Confidentiality Agreement” means the Confidential Information, Assignment of Rights, Non-Solicitation and Non-Competition Agreement between the Company and the Executive, a copy of which is attached to this Agreement as Exhibit B, pursuant to which the Executive has agreed to abide by certain covenants (including covenants not to disclose confidential information, compete with the Company or solicit employees, consultants or independent contractors of the Company).

 

“Date of Termination” means the date specified in a written notice of termination delivered pursuant to Section 6 hereof, or the Executive’s last date as an active employee of the Company before a termination of employment due to his death or Non-Renewal.

 

EXHIBIT A-1 

 

 

“Disabled” or “Disability” means a mental or physical condition that renders the Executive substantially incapable of performing his duties and obligations under this Agreement, after taking into account provisions for reasonable accommodation, as determined by a medical doctor (such doctor to be mutually determined in good faith by the parties) for four (4) or more consecutive months or for a total of four (4) months during any twelve (12) consecutive months.

 

“Fiscal Year” means the fiscal year of the Company, which is the calendar year.

 

“Good Reason” means, unless the Executive has consented in writing thereto, the occurrence of any of the following:

 

(i)       the assignment to the Executive of any duties materially inconsistent with the Executive’s position, including any change in status, title, authority, duties or responsibilities or any other action which results in a material diminution in such status, title, authority, duties or responsibilities;

 

(ii)       a material reduction in the Executive’s Base Salary by the Company or any breach by the Company of its obligations pursuant to Section 5(e) with respect to the Executive’s benefits;

 

(iii)       the relocation of the Executive’s office to a location more than fifty (50) miles from New York, New York; or

 

(iv)       a material breach of this Agreement by the Company.

 

“Non-Renewal” shall have the meaning set forth in Section 6(f) of the Employment Agreement.

 

“Release” shall have the meaning set forth in Section 8 of the Employment Agreement.

 

“Term of Employment” shall have the meaning set forth in Section 2 of the Employment Agreement.

 

EXHIBIT A-2 

 

 

EXHIBIT B

 

CONFIDENTIAL INFORMATION, ASSIGNMENT OF RIGHTS,
NON-SOLICITATION AND NON-COMPETITION AGREEMENT

 

In consideration of my employment with Immunic, Inc., or any of its subsidiaries, in connection with the performance of my duties as an employee of the Immunic, Inc. or any of its subsidiaries (“Company”) (hereinafter, my “Employment”), I hereby agree and acknowledge, effective as of _____________, 2019, that:

 

Confidential Information

 

1. As a result of my Employment, I may come to possess Confidential Information, and the Company has informed me that it will not retain me unless I agree to the terms of this Agreement and abide by them. As used in this Agreement, “Confidential Information” includes, without limitation, information, whether or not in tangible form, which has not been publicly disclosed regarding Company, any of Company’s customers, remarketing and/or support agreements made between Company and its business partners which disclose product data, commission rates, territories, quotas, and terms of licenses; the identities and locations of vendors and consultants furnishing materials and services to Company and the terms of such arrangements (including prices) negotiated by Company with such vendors and consultants; data relating to sales and license volumes, by customer, by location or by product; data relating to consulting agreements between Company and its customers which disclose billing rates, budgets, deliverables, time schedules and staff assignments; customer and product licensee and prospective product licensee lists; financial information that has not been released to the public by Company; employee lists of Company; future business plans, licensing strategies, advertising campaigns and the like; data provided to you which is marked as confidential or proprietary to Company, one of Company’s customers or business partners; proposed or actual acquisitions of stock or assets by Company; and/or any other information concerning or used in Company’s business, its manner of operations, its plan, processes or other data.

 

The definition of Confidential Information also shall include “Trade Secrets”, which are defined as the whole or any portion or phase of any scientific or technical information, design, process, procedure, formula, data-processing technique, computer program, or improvement that is valuable and secret (in the sense that it is not generally known to competitors of Company or competitors of its business partners). To the extent consistent with the foregoing, Trade Secrets include, without limitation, the specialized information and technology embodied in computer program material, including source and object code, system and user documentation, and program and system designs that provide Company or its business partners with an advantage over their competitors in the development, sales, implementation and support of their application software and products.

 

I acknowledge that Company has developed its Confidential Information through its own efforts and at great expense. I further acknowledge that Company has a legitimate interest in protecting its Confidential Information.

 

EXHIBIT B-1 

 

 

2. I will not at any time, except as required by my duties at Company, duplicate, remove, transfer, use, disclose or communicate, or knowingly allow any other person to duplicate, remove, transfer, use, disclose or communicate, any Confidential Information. I will safeguard all Confidential Information at all times so that it is not exposed to, or taken by, unauthorized persons and will exercise my best efforts to assure its safekeeping. I understand that the maintenance of the confidentiality of Confidential Information is material and essential to Company and its disclosure would have a severe adverse effect on the conduct of Company’s business, and Company’s competitive position and goodwill.

 

3. Upon termination of my Employment, whether voluntary or involuntary, or upon Company’s request at any time during the term of my Employment, I will deliver to Company all written and other materials which contain or relate to Confidential Information, whether formal or informal, whether prepared by me or by others and whether required by my employment or for my personal use, including, without limitation, all documents, notes, computer programs and data prepared for or stored in or obtained from any automated information system, all of which materials shall be and remain the property of Company. In addition, I shall also provide any information, such as passwords or codes, necessary to allow Company to fully utilize its property.

 

4. I will not make any unauthorized disclosure of trade secrets or confidential information to any third person, including any such information which is subject to a confidentiality agreement between Company and such third person, to which I gain access as a result of my Employment.

 

5. My obligations under this Agreement will remain in effect both during the term of my Employment and thereafter, whatever the reason for termination of my Employment, and shall survive any termination of this Agreement.

 

Assignment of Right

 

6. (a) All intellectual property in whatever form including, without limitation, inventions, discoveries, ideas, computer programs, programs based upon or developed from computer programs, improvements, codes, methods, algorithms, trade secrets, know-how, system documentation, technical data, drawings, flow charts, prototypes, design specifications, and any other documentation, notes and materials related to the foregoing (whether or not patentable or copyrightable) that are conceived or made by me, either alone or with others, during the course of or derived from my Employment by Company and in any way related to my Employment or to any business in which Company is engaged at any time during the term of my Employment or (if it should reasonably be known by me) is considering in engaging (“Discoveries”), shall be deemed to be “works made for hire” if permitted by applicable law and shall belong to Company.

 

(b) I will promptly disclose all Discoveries to Company.

 

(c) To the extent that any Discovery does not constitute a work made for hire pursuant to applicable law, I hereby transfer, grant, convey, assign and relinquish exclusively to Company all of my rights to, title to and interest in all Discoveries, in perpetuity (or for the longest period of time otherwise permitted by law), including:

 

EXHIBIT B-2 

 

 

(i) all of my rights, title, interest, and benefit (including the right to make, use, or sell under patent law; to copy, adapt, distribute, display, and perform under copyright law; and to use and disclose under trade secret law) in and to all United States and foreign patents and patent applications, patent license rights, patentable inventions, trade secrets, trademarks, service marks, trade names (including, in the case of trademarks, service marks and trade names, all goodwill pertaining thereto), copyrights, technology licenses, know-how, confidential information, shop rights, and all other intellectual property rights owned or claimed or acquired in the future by me as embodied in the Discoveries; and

 

(ii) all of my rights, title, interest, and benefit and all powers and privileges, in, to, and under all technical data, drawings, prototypes, engineering files, system documentation, flow charts, and design specifications developed by, owned, or acquired previously or in the future by me in connection with the development of the programming, inventions, processes, and apparatus entailed by the Discoveries.

 

(d) I will execute and deliver, from time to time after the date hereof, upon Company’s request, such further conveyance instruments, and take such further actions, as may be necessary or desirable to evidence more fully the transfer of ownership of all the Discoveries to Company, or the original ownership of all the Discoveries on the part of Company, to the fullest extent possible. I therefore agree to:

 

(i) execute, acknowledge, and deliver any affidavits or documents of assignment and conveyance regarding the Discoveries.

 

(ii) provide testimony in connection with any proceeding affecting the right, title, interest, or benefit of Company in or to the Discoveries.

 

(iii) perform any other acts deemed necessary to carry out the intent of this Agreement including, without limitation, assisting in the application, perfection, maintenance and enforcement of the Discoveries and all rights relating thereto.

 

(e) In furtherance of this Agreement, I hereby acknowledge that, from this date forward, or a previous date if rights were earlier transferred, Company has succeeded to all of my rights, title, and standing to:

 

(i) receive all rights and benefits pertaining to the Discoveries.

 

(ii) institute and prosecute all suits and proceedings and take all actions that Company, in its sole discretion may deem necessary or proper to collect, assert, or enforce any claim, right, or title of any kind in and to any and all of the Discoveries.

 

EXHIBIT B-3 

 

 

(iii) defend and compromise any and all such actions, suits, or proceedings relating to such transferred and assigned rights, title, interest, and benefits, and do all other such acts and things in relation thereto as Company, in its sole discretion, deems advisable.

 

(f) Upon termination of my Employment, I will immediately surrender to Company all materials and work product in my possession or within my control (including all copies thereof) relating in any way to the Discoveries.

 

(g) To effectuate the terms of this paragraph 6, I hereby name and irrevocably constitute and appoint Company, with the full power of substitution therein, as my true and lawful attorney-in-fact to exercise the rights assigned hereby.

 

(h) I represent and warrant that no consents of any other parties are necessary or appropriate under any agreements concerning any of the Discoveries in order for the transfer and assignment of any of the Discoveries under this Agreement to be legally effective.

 

(i) I represent and warrant that, to the best of my knowledge, upon consummation of this Agreement, Company will have good and marketable title to the Discoveries, free and clear of any and all liens, mortgages, encumbrances, pledges, security interests, or charges of any nature whatsoever.

 

7. I have listed on the Schedule attached to this Agreement all inventions, if any, conceived or made by me prior to my Employment by Company and which are to be excluded from this Agreement, as well as any restrictions on any work for Company or any obligations under this Agreement arising from any prior employment or other agreement. I am not required to list on the Schedule any inventions conceived or made by me prior to my Employment by Company that (i) are unrelated to the business, operations, services or products of Company or (ii) are solely related to my personal hobbies and not to the business, operations, service or products of Company.

 

Non-Solicitation

 

8. I agree that all Company relationships, whether or not contractual, including but not limited to, relationships with employees, contractors, consultants, partners (collectively “Relationships”) are the sole property of Company. I agree that, during and after my Employment with Company, unless Company provides written consent, I will not directly or indirectly provide information, including but not limited to, employee lists, resumes, independent contractor agreements, employment information and contact information, to other entities or individuals. I agree not to interfere with these Relationships by hiring or soliciting for hire individuals or entities, directly or indirectly, to work with or for any person or entity external to Company without the written consent of Company, during, and for a period of twenty-four (24) months after the termination of, my Employment with Company.

 

9. I agree that all Company relationships with customers, partners, resellers, vendors and suppliers and all information, whether or not in writing, are and shall be the exclusive property of Company (collectively “Customer Information”). Customer Information shall not be used outside the duties of my Employment with Company without the written consent of Company, either during or after the termination of my Employment with Company.

 

EXHIBIT B-4 

 

 

Non-Competition

 

10. (a) I further agree that, during the term of my Employment with Company, and for a period of twelve (12) months following the termination (whether voluntary or involuntary) of such Employment, I will not engage in any capacity (including without limitation, as an employee, officer, director, consultant or shareholder (other than as an owner of one percent (1%) or less of the outstanding shares of any publicly-traded company)), in any Competing Business in any geographical area in which Company (or any of Company’s affiliates) transacts such business. For purposes of this Agreement a “Competing Business” means a pharmaceutical or biotech company for which their commercial business or their development portfolio based on number of development projects (for a non-commercial company) comprises at least 50% of oral drugs to be used in non-oncology immunological diseases.

 

(b) The covenants contained in this Section 10 shall be enforced to the fullest extent permissible under the laws of each jurisdiction in which enforcement is sought. Accordingly, I agree that if any of the provisions of this Section 10 shall be adjudicated to be invalid or unenforceable for any reason whatsoever, said provision shall be construed (only with respect to the operation thereof in the particular jurisdiction in which such adjudication is made) by limiting and reducing it so as to be enforceable to the fullest extent permissible, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of said provision in any other jurisdiction.

 

11. Breach by me of any provision of this Agreement will cause Company irreparable injury and damage for which money damages may not be adequate. In addition to all other remedies that are available to it, Company shall be entitled to preliminary and permanent injunctive and equitable relief to prevent or remedy a breach of this Agreement by me.

 

12. This Agreement:

 

(a) shall bind my heirs, executors, administrators, legal representatives and assigns, and supersedes any prior agreements concerning Confidential Information executed by me with or in favor of Company, if any.

 

(b) constitutes the entire understanding between Company and me concerning Confidential Information and no waiver or amendment of any provision of this Agreement shall be valid or effective unless in writing and signed by the party against whom enforcement thereof is sought.

 

(c) shall be enforceable by Company or any of its successors or assigns.

 

(d) shall be enforced and construed in accordance with the laws of the State of New York, without giving effect to the choice of laws principles of New York that would result in the application of the laws of any other jurisdiction.

 

EXHIBIT B-5 

 

 

13 Should any part of this Agreement for any reason be declared by any court of competent jurisdiction to be invalid, that decision shall not affect the validity of the remaining portion, which shall continue in full force and effect as if this Agreement had been executed with the invalid portion eliminated, provided, however, that this Agreement shall be interpreted to carry out to the greatest extent possible the intent of the parties and to provide to Company substantially the same benefits as Company would have received under this Agreement if such invalid part of this Agreement had been enforceable.

 

14. I represent that I am not a party to, or bound by, any confidentiality agreements, non-compete agreements, restrictive covenants, non-solicitation agreements, invention and assignment agreements, or any other agreements or obligations to any former employer or other entity that will prevent me from performing, or impede me in performance of service for Company. I also represent that I have disclosed to Company all contracts or agreements that could prevent me from carrying out my responsibilities for Company. I further acknowledge that I have not and will not take or remove from my prior employment the originals or copies of any documents maintained as confidential or proprietary information by my prior employer, and that I have not and will not disclose any confidential or proprietary information of my prior employer. Therefore, I am “free and clear” to be employed by Company. I acknowledge that Company is relying on my representation in making its offer of employment, in employing me, or in continuing my employment with Company. I further agree not to enter into any agreement either written or oral in conflict with my Employment with Company.

 

15. I further agree that this Agreement does not constitute a contract of employment, and that I have the right to resign and Company has the right to terminate my employment at any time, for any reason, with or without cause, subject to the provisions of any written employment agreement between Company and me. I hereby acknowledge that I have read this Agreement, understand it and agree to be bound by its restrictions.

 

  _____________________________
  ANDREAS ROLF MUEHLER
   
  _____________________________
  (Date Signed)
   
ACCEPTED AND DATED AS OF ___________________  
   
IMMUNIC, INC.  
   
By: _____________________________  
   
Name: ___________________________  
   
Title: ____________________________  

 

EXHIBIT B-6 

 

 

SCHEDULE

 

Immunic, Inc.

c/o Immunic AG

Am Klopferspitz 19

82152 Planegg-Martinsried, Germany

Attn: Chief Operating Officer

Email: manfred.groeppel@immunic.de

 

Attn:

 

1.       The following is a complete list of all inventions or improvements relevant to the subject matter of my employment by Immunic, Inc. (the “Company”) that have been made or conceived or first reduced to practice by me, alone or jointly with others, prior to my employment by the Company that I desire to remove from the operation of the Company’s Confidential Information, Assignment of Rights, Non-Solicitation and Non-Competition Agreement.

 

  ______________ No inventions or improvements.
     
  ______________ See below: Any and all inventions regarding
     
  ______________ Additional sheets attached.

 

2.       I propose to bring to my employment the following materials and documents of a former employer:

 

  ______________ No materials or documents.
     
  ______________ See below:
     
  _______________________________
  Andreas Rolf Muehler
   
  _______________________________
  Date

 

EXHIBIT B-7 

 

 

EXHIBIT C

 

WAIVER AND RELEASE

 

This is a Waiver and Release (“Release”) between Andreas Rolf Muehler (“Executive”) and Immunic, Inc. (the “Company”). The Company and the Executive agree that they have entered into this Release voluntarily, and that it is intended to be a legally binding commitment between them.

 

In consideration for and contingent upon the Executive’s right to receive the benefits described in the Employment Agreement between the Company and the Executive (the “Employment Agreement”) and this Release, the Executive hereby agrees as follows:

 

(a)       General Waiver and Release. Except as provided in Paragraph (e) below, the Executive and any person acting through or under the Executive hereby release, waive and forever discharge the Company, its past and present subsidiaries and affiliates, and their respective successors and assigns, and their respective past and present officers, trustees, directors, shareholders, executives and agents of each of them, from any and all claims, demands, actions, liabilities and other claims for relief and remuneration whatsoever (including without limitation attorneys’ fees and expenses), whether known or unknown, absolute, contingent or otherwise (each, a “Claim”), arising or which could have arisen up to and including the date of his execution of this Release, including without limitation those arising out of or relating to the Executive’s employment or cessation and termination of employment, or any other written or oral agreement, any change in the Executive’s employment status, any benefits or compensation, any tortious injury, breach of contract, wrongful discharge (including any Claim for constructive discharge), infliction of emotional distress, slander, libel or defamation of character, and any Claims arising under Title VII of the Civil Rights Act of 1964 (as amended by the Civil Rights Act of 1991), the Americans With Disabilities Act, the Rehabilitation Act of 1973, the Equal Pay Act, the Older Workers Benefits Protection Act, the Age Discrimination in Employment Act, the Employee Retirement Income Security Act of 1974, or any other federal, state or local statute, law, ordinance, regulation, rule or executive order, any tort or contract claims, and any of the claims, matters and issues which could have been asserted by the Executive against the Company or its subsidiaries and affiliates in any legal, administrative or other proceeding. the Executive agrees that if any action is brought in his name before any court or administrative body, the Executive will not accept any payment of monies in connection therewith.

 

(b)       Miscellaneous. the Executive agrees that Section 7(c) of the Employment Agreement (which is specifically incorporated herein by reference) specifies payments from the Company to himself, the total of which meets or exceeds any and all funds due him by the Company, and that he will not seek to obtain any additional funds from the Company with the exception of non-reimbursed business expenses. (This covenant does not preclude the Executive from seeking workers’ compensation, unemployment compensation, or benefit payments from the Company’s insurance carriers that could be due him.)

 

(c)       Non-Solicitation, Confidentiality and Non-Solicitation Covenants. the Executive warrants that the Executive has, and will continue to comply fully with Section 3(c) of the Employment Agreement and the provisions of the Confidential Information, Assignment of Rights, Non-Solicitation and Non-Competition Agreement by and between the Company and the Executive.

 

EXHIBIT C-1 

 

 

(d)       THE COMPANY AND THE EXECUTIVE AGREE THAT THE BENEFITS DESCRIBED IN SECTION 7(C) OF THE EMPLOYMENT AGREEMENT AS SUBJECT TO EXECUTIVE’S COMPLIANCE WITH SECTION 8 THEREOF ARE CONTINGENT UPON THE EXECUTIVE SIGNING THIS RELEASE. THE EXECUTIVE FURTHER UNDERSTANDS AND AGREES THAT IN SIGNING THIS RELEASE, EXECUTIVE IS RELEASING POTENTIAL LEGAL CLAIMS AGAINST THE COMPANY. THE EXECUTIVE UNDERSTANDS AND AGREES THAT IF HE DECIDES NOT TO SIGN THIS RELEASE, OR IF HE REVOKES THIS RELEASE, THAT HE WILL IMMEDIATELY REFUND TO THE COMPANY ANY AND ALL SEVERANCE PAYMENTS AND OTHER BENEFITS HE MAY HAVE ALREADY RECEIVED.

 

(e)       The waiver contained in Paragraph (a) and (b) above does not apply to:

 

(i) Any claims for benefits under employee benefit plans in accordance with the terms of the applicable employee benefit plan, including the Executive’s right to elect continuation coverage under the Company’s group health, dental and/or visions plans pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (COBRA),

 

(ii) Any right to exercise stock options or stock appreciation rights that were vested and exercisable on the Date of Termination or the end of the Term of Employment in accordance with the terms thereof (as modified by the Employment Agreement);

 

(iii) Any Claim under or based on a breach of the Company’s obligations to pay the compensation and benefits described in Sections 5 or 7(a) or (c) of the Employment Agreement,

 

(iv) Rights or Claims that may arise under the Age Discrimination in Employment Act after the date that the Executive signs this Release, and

 

(v) Any right to indemnification by the Company or to coverage under directors and officers liability insurance to which the Executive is otherwise entitled in accordance with Section 12 of Employment or the Company’s articles of incorporation or by-laws or other agreement between the Executive and the Company.

 

(f)       EXECUTIVE ACKNOWLEDGES THAT HE HAS READ AND IS VOLUNTARILY SIGNING THIS RELEASE. EXECUTIVE ALSO ACKNOWLEDGES THAT HE IS HEREBY ADVISED TO CONSULT WITH AN ATTORNEY, HE HAS BEEN GIVEN AT LEAST [21][45] DAYS TO CONSIDER THIS RELEASE BEFORE THE DEADLINE FOR SIGNING IT; [HE HAS RECEIVED A RECEIVED A WRITTEN DESCRIPTION OF THE JOB TITLES AND AGES ALL INDIVIDUALS SELECTED FOR THIS JOB ELIMINATION PROGRAM AND THE AGES OF ANY INDIVIDUALS IN THE SAME JOB CLASSIFICATIONS WHO ARE NOT SELECTED FOR THIS JOB ELIMINATION PROGRAM AS PROVIDED BY THE ADEA (SUCH DESCRIPTION ATTACHED AS EXHIBIT A HERETO)]; AND HE UNDERSTANDS THAT HE MAY REVOKE THE RELEASE WITHIN SEVEN (7) DAYS AFTER SIGNING IT. IF NOT REVOKED WITHIN SUCH PERIOD, THIS RELEASE WILL BECOME EFFECTIVE ON THE EIGHTH (8) DAY AFTER IT IS SIGNED BY EXECUTIVE.

 

EXHIBIT C-2 

 

 

BY SIGNING BELOW, BOTH THE COMPANY AND EXECUTIVE AGREE THAT THEY UNDERSTAND AND ACCEPT EACH PART OF THIS RELEASE.

 

  _____________________________
  ANDREAS ROLF MUEHLER
   
  _____________________________
  (Date Signed)
   
ACCEPTED AND DATED AS OF ___________________  
   
IMMUNIC, INC.  
   
By: _____________________________  
   
Name: ___________________________  
   
Title: ____________________________  

 

 

EXHIBIT C-3

 

 

Exhibit 99.4

 

 

Änderungsvereinbarung zum

 

DIENSTVERTRAG vom 29. September 2016

 

  Addendum to the SERVICE AGREEMENT dated 29th September 2016

zwischen

 

 

between

 

der Immunic AG, Am Klopferspitz 19, 82152 Planegg-Martinsried

 

  Immunic AG, Am Klopferspitz 19, 82152 Planegg-Martinsried
(im Folgenden: „Gesellschaft“)  

(hereinafter: “Company”)

 

und  

and

 

Frau Dr. Hella Kohlhof, Stöhrstraße 11, 81477 München

 

  Ms. Dr. Hella Kohlhof, Stöhrstraße 11, 81477 Munich

(im Folgenden: „Vorstand“)

 

 

(hereinafter: “Board Member”)

 

     
Präambel  

Preamble

 

Die dienstvertraglichen Beziehungen zwischen den Parteien werden durch den Dienstvertrag vom 29. September 2016 geregelt („Dienstvertrag“). Die Bestellung des Vorstandes zum Mitglied des Vorstandes der Gesellschaft soll durch den Aufsichtsrat für den Zeitraum bis zum 31. August 2021 (einschließlich) verlängert werden („Laufzeit“). Dies vorausgeschickt, vereinbaren die Parteien folgende Änderungen zum vorbenannten Dienstvertrag, mit einer Laufzeit ab dem 1. September 2019 („Stichtagsdatum“) bis zum 31. August 2021 (einschließlich) („Beendigungsdatum“). Im Übrigen gilt der Dienstvertrag für die Laufzeit unverändert fort. Diese Präambel ist integraler Bestandteil dieser Änderungsvereinbarung.

 

  The relationship between the parties is governed by a service agreement dated 29th September 2016 (“Service Agreement”). The appointment of the Board Member as a board member of the Company is expected to be extended by the supervisory board for the period to (and including) 31st August 2021 (“Term”). Now, therefore the parties agree on the following amendments to the aforementioned Service Agreement from 1st September 2019 (“Effective Date”) to (and including) 31st August 2021 (“Completion Date”). Apart from that, the Service Agreement shall continue to apply without changes. This preamble shall be an integral part of this Addendum.

 

 

 

 

I.    Einfügen der Ziffer 5 in § 1

 

   I.       Insertion of Clause 5 in § 1

In § 1 des Dienstvertrages wird folgende Ziffer 5 ergänzt:

 

  § 1 of the Service Agreement shall be added by clause 5 as follows:
     

Der Vorstand übernimmt auf Wunsch der Gesellschaft ohne weitere Vergütung auch Positionen oder Ämter bei mit der Gesellschaft verbundenen Unternehmen (§ 15 AktG). Ebenso übernimmt der Vorstand Positionen oder Ämter bei Verbänden, Berufsvereinigungen oder sonstigen Organisationen, in denen die Gesellschaft oder ein verbundenes Unternehmen Mitglied ist. Ihm von dritter Seite diesbezüglich gewährte Vergütungen oder Aufwandsentschädigungen führt der Vorstand an die Gesellschaft ab. Auf Wunsch der Gesellschaft legt der Vorstand im Interesse der Gesellschaft oder verbundener Unternehmen übernommene Positionen oder Ämter nieder und setzt sich nach besten Kräften dafür ein, dass von der Gesellschaft benannte Nachfolger in die Positionen oder Ämter nachrücken.

 

  The Board Member shall, upon the Company's request, without any additional remuneration, also accept positions or offices in companies affiliated with the Company (Section 15 Stock Corporation Act - AktG). In the same way, the Board Member shall also accept positions or offices in associations and professional or other organizations of which the Company or an affiliated Company is a member. The Board Member shall transfer to the Company any remuneration or allowances he receives from third parties in this respect. Upon the Company's request, the Board Member shall resign from any position or office accepted in the interests of the Company or an affiliated Company and he shall do his utmost to ensure that the person nominated by the Company shall succeed him in the position or office.
     
 II.   Änderung des § 2  

II.       Amendment of § 2

 

§ 2 des Dienstvertrages wird wie folgt geändert:  

§ 2 of the Service Agreement shall be amended as follows:

 

1.    Überschrift § 2  

1.      Heading § 2

 

Die Überschrift des § 2 des Dienstvertrages wird wie folgt geändert:   The heading of § 2 of the Service Agreement shall be amended as follows:

 

 

 

 

§ 2 Umfang der Dienste, Nebentätigkeit

 

 

§ 2 Scope of Services and Side Activity

 

2.    § 2 Ziffer 1 Satz 1  

2.      § 2 Clause 1 sentence 1

 

§ 2 Ziffer 1 Satz 1 des Dienstvertrages wird durch die folgenden zwei Sätze ersetzt:

 

4.     

§ 2 clause 1 sentence 1 of the Service Agreement shall be replaced by the following two sentences:

 

Der Vorstand stellt seine ganze Arbeitskraft und all sein Wissen und Können in den Dienst der Gesellschaft. In der Bestimmung seiner Tätigkeitszeiten ist der Vorstand im Rahmen der betrieblichen Erfordernisse frei.

 

3.      The Board Member shall devote all his working capacity, knowledge and skills into the services of the Company. He shall be able to schedule his working hours, subject to business requirements.

III.   Änderung des § 3 Ziffer 1 des Dienstvertrages

 

  III.    Amendment of § 3 Clause 1 of the Service Agreement
     

§ 3 Ziffer 1 des Dienstvertrages wird wie folgt geändert:

 

  § 3 clause 1 of the Service Agreement shall be amended as follows:
     

1.    Der Vorstand erhält für seine Tätigkeit

 

  1.      The Board Member shall receive for his services

a)     ein festes Jahresgehalt („Grundvergütung“) in Höhe von EUR 200.000 brutto, das in 12 gleichen Monatsraten jeweils nachträglich am Monatsletzten ausbezahlt wird. Sofern dieser Vertrag nicht während der Dauer eines gesamten Kalenderjahres besteht, wird das Jahresfestgehalt zeitanteilig gezahlt.

 

  a)      a fixed annual salary (“basic remuneration”) in the amount of EUR 200,000 gross, which is paid in 12 equal monthly instalments at the end of each month. If this agreement does not exist for the duration of an entire calendar year, the fixed annual salary shall be paid pro rata temporis.

b)     eine jährliche variable Vergütung, die bei 100-prozentigem Erreichen der festgelegten Jahresziele maximal EUR 50.000 brutto beträgt. Die Einzelheiten, insbesondere zum Verfahren der Zielfestlegung, zur Feststellung der Zielerreichung und zur Fälligkeit ergeben sich aus dem Rahmenvertrag zur Zielvereinbarung in seiner jeweils geltenden Fassung. Die Art der Ziele, die Voraussetzungen für ihre Erreichung und ihre Gewichtung zueinander werden für das jeweilige Geschäftsjahr in einer gesonderten Zielfestlegung niedergelegt.

 

  b)     an annual variable remuneration which amounts to EUR 50,000 gross in maximum if the defined annual targets are achieved by 100 %. The details, in particular the procedure for setting targets, determining the achievement of targets and the due date, are set out in the framework agreement for the target agreement in its currently valid version. The type of targets, the prerequisites for their achievement and their weighting in relation to each other shall be laid down for the respective fiscal year in a separate definition of targets.

 

 

 

 

IV.   Einfügen der Ziffer 4 in § 3

 

   IV.       Insertion of Clause 4 in § 3

In § 3 des Dienstvertrages wird folgende Ziffer 4 ergänzt:

 

  § 3 of the Service Agreement shall be added by clause 4 as follows:
     

Sagt eine dritte Person (einschließlich solcher Unternehmen, die mit der Gesellschaft verbunden sind) dem Vorstand Anteile an der Gesellschaft oder an mit der Gesellschaft verbundenen Unternehmen oder diesbezügliche Optionen oder Ansprüche auf Optionen oder sogenannte Stock Appreciation Rights oder Phantom Stocks zu, so werden solche Zusagen weder Bestandteil des Dienstverhältnisses zwischen den Parteien dieses Vertrages noch begründen sie Verpflichtungen der Gesellschaft.

 

 

In the event that a third party (including companies which are affiliated with the Company) promises the Board Member shares in the Company or in companies affiliated with the Company or options to acquire such shares or rights to such options or so-called stock appreciation rights or phantom Stocks, such promise shall neither become part of the Service Agreement between the parties to this Agreement nor create any obligations of the Company.

 

V.      Ergänzung der Überschrift von § 10, Neufassung des § 10 des Dienstvertrages

 

  V.     Addition of the Heading of § 10, Revision of § 10 of the Service Agreement  
Die Überschrift des § 10 des Dienstvertrages wird wie folgt geändert:   The heading of § 10 of the Service Agreement shall be amended as follows:

 

 

 

 

     
§ 10 Vertragsdauer, Abfindung   § 10 Contract Duration; Severance Payment
     

§ 10 des Dienstvertrages wird wie folgt neu gefasst:

 

  § 10 of the Service Agreement shall be revised as follows:
     

1.     Der Dienstvertrag steht insgesamt unter der aufschiebenden Bedingung, dass gemäß der Präambel der Vorstand zum Vorstand der Gesellschaft bestellt wird.

 

 

1.      The Service Agreement is subject to the condition precedent that the Board Member is appointed to the Management Board of the Company in accordance with the preamble.

 

2.      Der Dienstvertrag beginnt mit dem 1. September 2019 („Stichtagsdatum“) und endet zum 31. August 2021 („Beendigungsdatum“).

 

 

2.      The Service Agreement commences on 1st September 2019 (“Effective Date”) and ends on 31st August 2021 (“Completion Date”).

 

3.      Das Recht zur außerordentlichen Kündigung bleibt unberührt.

 

  3.     The right to terminate without notice for good cause shall remain unaffected.

4.      Im Falle eines Widerrufs der Bestellung, der Amtsniederlegung durch den Vorstand oder bei einer sonstigen Beendigung der Organstellung haben beide Parteien das Recht das Dienstverhältnis unter Einhaltung einer Kündigungsfrist von 12 Monaten zum Monatsende ordentlich zu kündigen. Eine etwaige frühere Beendigung aufgrund des § 10 Ziffer 2 dieses Vertrages bleibt unberührt.

 

  4.      In the event of revocation of the appointment, resignation from office by the Board Member or any other termination of the position, both parties have the right to terminate the service relationship ordinarily by giving 12 months' notice to the end of the month. Any earlier termination due to § 10 clause 2 of this Service Agreement shall remain unaffected.

5.      Der Vorsitzende des Aufsichtsrats wird dem Vorstand spätestens neun Monate vor Ablauf dieses Vertrages schriftlich mitteilen, ob und unter welchen Bedingungen der Aufsichtsrat den Vorstand erneut zum Vorstandsmitglied bestellen wird und ob er bereit ist, den Dienstvertrag entsprechend der Dauer der neuen Bestellung zu verlängern oder einen neuen Dienstvertrag zu mindestens gleichen Bedingungen mit ihm abzuschließen. Der Vorstand wird innerhalb von zwei Monaten ab Zugang des Angebots des Aufsichtsratsvorsitzenden erklären, ob er die erneute Bestellung annimmt und bereit ist, den für die Fortsetzung oder Erneuerung des Dienstvertrages angebotenen Bedingungen zuzustimmen.

 

  5.      The Chairman of the Supervisory Board shall inform the Board Member in writing no later than nine months before the expiry of this Service Agreement whether and under what conditions the Supervisory Board will reappoint the Board Member as a member of the Executive Board and whether he is prepared to extend the Service Agreement for the duration of the new appointment or to conclude a new service agreement with the Executive Board on at least the same terms. Within two months of receipt of the offer of the Chairman of the Supervisory Board, the Board Member will declare whether he accepts the new appointment and is prepared to agree to the terms and conditions offered for the continuation or renewal of the Service Agreement.

 

 

 

 

6.      Die Gesellschaft ist berechtigt, den Vorstand nach dem Widerruf seiner Bestellung gemäß § 84 (3) AktG oder im Zusammenhang mit einer Beendigung des Dienstvertrages, insbesondere nach einer Kündigung oder im Anschluss an den Abschluss eines Aufhebungsvertrages, ganz oder teilweise von seiner Pflicht zur Dienstleistung unter Fortzahlung der Grundvergütung gemäß § 3 Ziffer 1 lit. a) widerruflich oder unwiderruflich freizustellen. Im Fall der unwiderruflichen Freistellung werden offene Urlaubs- und sonstige Freizeitausgleichsansprüche angerechnet, die damit erledigt sind. Der Dienstvertrag im Übrigen wird von der Freistellung nicht berührt; insoweit bestehen insbesondere die Verschwiegenheitspflicht und das vertragliche Wettbewerbsverbot bis zum Ende des Dienstvertrages fort. Anderweitiger Verdienst während der Freistellungszeit wird gemäß § 615 Satz 2 BGB angerechnet. Eine Anrechnung erfolgt nicht, wenn und soweit der anderweitige Verdienst aus einer genehmigten Nebentätigkeit (§ 2 Ziffer 1 dieses Dienstvertrages) stammt.

 

  6.      The Company is entitled, after revocation of its appointment pursuant to § 84 (3) AktG or in connection with termination of the Service Agreement, in particular after termination or following the conclusion of a termination agreement, to release the Board Member in whole or in part from his obligation to provide services with continued payment of the basic remuneration pursuant to § 3 clause 1 lit. a) revocably or irrevocably. In the event of irrevocable release, outstanding vacation and other time off compensation claims shall be credited and settled. The rest of the Service Agreement shall not be affected by the release; in this respect, the obligation to maintain confidentiality and the contractual non-competition clause shall continue to apply until the end of the Service Agreement. Other earnings during the exemption period shall be credited in accordance with § 615 sentence 2 BGB. No credit shall be made if and to the extent that the other earnings originate from an approved secondary activity (§ 2 clause 1 of this Service Agreement).

 

 

 

 

7.      Der Dienstvertrag endet spätestens am Ende des Kalenderjahres, in dem das Vorstandsmitglied sein 65. Lebensjahr vollendet, sofern dieser Dienstvertrag nicht bereits nach Ziffer 1 bis 2 dieses Vertrages vor diesem Zeitpunkt geendet hat.  

7.      The Service Agreement shall end at the latest at the end of the calendar year in which the Board Member reaches the age of 65, provided that this Service Agreement has not already ended before this date in accordance with clauses 1 to 2 of this Agreement.

 

8.      Sofern der Dienstvertrag nicht über das Beendigungsdatum nach dieser Änderungsvereinbarung (oder ein später vereinbartes Beendigungsdatum nach abermaliger Wiederbestellung) hinaus fortgesetzt wird, erhält der Vorstand eine Brutto-Abfindung in Höhe von einem Jahresgehalt gemäß § 3 des Dienstvertrages in der Fassung dieser Änderungsvereinbarung. Der Bonus wird hierbei – unabhängig von der tatsächlichen Zielerreichung - auf Basis 100 % berücksichtigt. Die Abfindung ist zahlbar zum Beendigungsdatum.

 

 

8.      If the Service Agreement is not continued beyond the Completion Date under this Amendment Agreement (or a later termination date agreed upon after reappointment), the Board Member shall receive gross severance payment equal to one year's salary pursuant to § 3 of the Service Agreement as amended by this Amendment Agreement. The bonus is taken into account here - irrespective of the actual achievement of targets - on a 100% basis. The severance payment is payable on the Completion Date,

 

 

 

 

 

Der Abfindungsanspruch entfällt, wenn der Vorstand ein Angebot auf Wiederbestellung für eine Dauer von mindestens 12 Monaten im unmittelbaren Anschluss an das hiesige Beendigungsdatum zu mindestens gleichwertigen dienstvertraglichen Bedingungen und bei mindestens 12-monatiger Laufzeit in Übereinstimmung mit den Fristen gemäß § 10 Ziffer 5 in der Fassung dieser Änderungsvereinbarung erhält und dieses nicht annimmt. Erhält der Vorstand ein solches Angebot im Sinne von § 10 Ziffer 5 verspätet oder zu nicht gleichwertigen Bedingungen, oder wird ihm mitgeteilt, dass eine Wiederbestellung nicht erfolgen soll, so werden die Zahlungen gemäß § 3 in der Fassung dieser Änderungsvereinbarung, die dem Zeitraum von der Angebotsunterbreitung bzw. Mitteilung der nicht erfolgenden Wiederstellung bis zum Beendigungsdatum zuzuordnen sind, vom Abfindungsanspruch abgezogen, aber nur den Zeitraum, für den eine Freistellung nach § 10 Ziffer 6 erfolgt ist.

 

 

The severance payment claim shall lapse if the Board member receives and does not accept an offer of reappointment for a term of at least 12 months immediately following the Completion Date here under at least equivalent terms and conditions of the Service Agreement and for a term of at least 12 months in accordance with the time limits pursuant to § 10 clause 5 as amended by this Amendment Agreement. If the Board Member receives such an offer within the meaning of § 10 clause 5 belatedly or on non-equivalent terms, or is informed that a reappointment is not to take place, the payments pursuant to § 3 in the version of this Amendment Agreement, which are attributable to the period from the submission of the offer or notification of the non-occurrence of the reappointment until the Completion Date, shall be deducted from the severance payment claim but only for the period for which a release has occurred pursuant to § 10 clause 6.

 

Der Abfindungsanspruch entfällt, sofern die Nichtverlängerung des Dienstverhältnisses auf einem vom Vorstand zu vertretenen wichtigen Grund beruht.

 

 

The severance payment claim shall lapse if the non-extension of the employment relationship is due to a serious cause for which the Board Member is responsible.

 

Der Abfindungsanspruch besteht auch dann, wenn das Dienstverhältnis mindestens 12 Monate vor dem Beendigungsdatum aufgrund Kündigung der Gesellschaft gemäß § 10 Ziffer 4 in der Fassung dieser Änderungsvereinbarung endet (vorzeitiges Beendigungsdatum), jedoch nur, soweit das Dienstverhältnis nicht aus einem vom Vorstand zu vertretenen wichtigen Grund vorzeitig beendet worden ist. Endet das Dienstverhältnisses infolge einer Kündigung gemäß vorstehenden Satz weniger als 12 Monate vor dem Beendigungsdatum, so werden die Zahlungen gemäß § 3 in der Fassung dieser Änderungsvereinbarung, die dem Zeitraum von dem vorzeitigen Beendigungsdatum bis zum Beendigungsdatum zuzuordnen sind, vom Abfindungsanspruch abgezogen. Die Abfindung ist dann zum vorzeitigen Beendigungsdatum zahlbar.

 

 

The severance payment claim also exists if the employment relationship ends at least 12 months before the Completion Date due to termination of the Company pursuant to § 10 clause 4 as amended by this Amendment Agreement (Early Completion Date), but only to the extent that the employment relationship has not been prematurely terminated for serious cause for which the Board Member is responsible. If the employment relationship ends less than 12 months prior to the Completion Date as a result of a termination pursuant to the preceding sentence, the payments pursuant to § 3 as amended by this Amendment Agreement, which are attributable to the period from the Early Completion Date to the Completion Date, shall be deducted from the severance payment claim. The severance payment shall then be payable on the Early Completion Date.

 

 

 

 

 

VI.   Änderung des § 11 Ziffer 1 des Dienstvertrages

 

   VI.    Amendment of § 11 Clause 1 of the Service Agreement
     

§ 11 Ziffer 1 des Dienstvertrages wird wie folgt geändert:

 

  § 11 clause 1 of the Service Agreement shall be amended as follows:
     

Ansprüche der Gesellschaft und des Vorstands aus dem Dienstverhältnis oder im Zusammenhang mit diesem Dienstverhältnis verfallen, ungeachtet ihres Rechtsgrundes, wenn die bzw. der Anspruchsberechtigte den Anspruch nicht innerhalb einer Frist von sechs Monaten, berechnet ab dem Zeitpunkt der Fälligkeit und der Kenntnis oder grob fahrlässigen Unkenntnis des Anspruchsberechtigten von den anspruchsbegründenden Umstanden, durch Erklärung in Textform gegenüber der jeweils anderen Vertragspartei geltend macht. Für die Beurteilung der Rechtzeitigkeit der Geltendmachung ist der Zugang der Erklärung maßgeblich. Dies gilt nicht für die Geltendmachung von Ansprüchen wegen Verletzung des Lebens, des Körpers oder der Gesundheit sowie bei vorsätzlichen Pflichtverletzungen. Diese Ausschlussfrist gilt auch nicht für Ansprüche auf den gesetzlichen Mindestlohn sowie für gesetzliche Fristen, die keiner Ausschlussfrist unterliegen dürfen. Die Versäumung der Ausschlussfrist führt zum Verlust des Anspruchs.

 

  Claims of the Company and the Board Member arising from or in connection with the service relationship expire, irrespective of their legal basis, if the claimant does not assert the claim within a period of six months, calculated from the due date and the knowledge or grossly negligent ignorance of the claimant of the circumstances giving rise to the claim, by declaration in text form against the respective other contracting party. For the assessment of the timeliness of the assertion, the receipt of the declaration is decisive. This does not apply to the assertion of claims due to injury to life, bodily injury or health as well as to intentional breaches of duty. The aforementioned preclusive period shall also not apply to claims regarding the statutory minimum wage as well as to statutory time limits that are no subject to limitation periods. Failure to observe the limitation period shall result in the loss of the claim.

VII.         Die übrigen Bestimmungen des Dienstvertrages behalten unverändert ihre Gültigkeit.

 

 

VII.         The other provisions of the Service Agreement remain unaffected.

 

VIII.        Die deutsche Fassung dieser Änderungsvereinbarung ist maßgeblich.   VIII.        The German version of this Amendment Agreement shall be  authoritative.

 

Gesellschaft/Company   Vorstand/ Board Member
     
Martinsried, Germany   Germany
Ort/ Place   Ort/ Place
     
9/4/2019   9/3/2019
Datum/ Date   Datum/ Date
     
/s/ Jörg Neermann   /s/ Hella Kohlhof
Unterschrift/Signature:   Unterschrift/Signature:
Für die Gesellschaft     Vorstand/ Board Member
On behalf of the Company