• Sat. Dec 2nd, 2023

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TFF PHARMACEUTICALS, INC. : Entry into a Material Definitive Agreement, Change in Directors or Principal Officers (form 8-K)

Item 1.01 Entry into a Material Definitive Agreement.

On December 4, 2022, TFF Pharmaceuticals, Inc., or the Company, entered into a
Separation Agreement and General Release with Glenn Mattes. On the same day, the
Company agreed to employ Harlan Weisman, M.D. as president and chief executive
officer of the Company. A summary of the terms of both agreements are provided
in Item 5.02 below.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On December 4, 2022, Glenn Mattes resigned as president and chief executive
officer and as a member of the board of directors, or Board, of the Company. On
the same day, the Board appointed Harlan Weisman, M.D., the current vice
chairman of the Board, to serve as president and chief executive officer of the
Company. Dr. Weisman has accepted the president and chief executive officer
positions on an interim basis pending completion of the Board’s search for a
permanent president and chief executive officer. In addition to his new interim
duties, Dr. Weisman also continues in his role as vice chairman of the Board. Mr. Mattes has agreed to serve as a consultant to the Company on an as-needed
basis.

Mr. Mattes’ resignation as an officer the Company is regarded as a termination
without cause under his employment agreement with the Company. Pursuant to his
employment agreement, Mr. Mattes was entitled to one year of severance at his
current salary in consideration of his execution of a customary release and
separation agreement. Instead, the Company and Mr. Mattes have entered into a
Separation Agreement and General pursuant to which:

? Mr. Mattes has agreed to provide certain transition services and cooperation,

as requested by the Company, for a period of seven months from the date of his

resignation;

? The Company has agreed to continue payment of Mr. Mattes’ monthly salary for a

period of seven months, instead of the 12 months provided for under Mr.

Mattes’ employment agreement;

? The Company has agreed to extend for a period of two years from the date of

Mr. Mattes’ resignation options held by Mr. Mattes to purchase up to 450,000

shares of the common stock of the Company, which otherwise would have expired

on the three-month anniversary of Mr. Mattes’ resignation: and

? Mr. Mattes provided the Company and its affiliates with a general release along

with customary covenants of nondisparagement and nonsolicitation.

At the time of his resignation, Mr. Mattes held vested options (in addition to
the 450,000 options described above) to purchase 584,548 shares of Company
common stock, all of which will expire on the three-month anniversary of his
resignation, unless earlier exercised. Mr. Mattes also held unvested options to
purchase 178,509 shares of Company common stock, all of which terminated as of
the date of his resignation.

On December 4, 2022, the Company reached a binding agreement in principle to
employ Dr. Weisman as president and chief executive officer. The Company has
agreed to pay Dr. Weisman an annual salary of $550,000, plus a performance-based
bonus of up to 50% of Dr. Weisman’s then-current salary based on performance
metrics to be determined by the Board. Dr. Weisman and his family will be
entitled to medical benefits, at the Company’s expense, on par with those
offered to the other senior executive officers of the Company. Dr. Weisman will
otherwise be eligible to participate in all other benefit plans offered to the
senior executive officers of the Company.



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In connection the appointment of Dr. Weisman, the Company granted Dr. Weisman options to purchase up to 1,792,450 shares of the Company’s common stock over a
ten-year period at an exercise price of $1.19 per share. The options shall vest
during the period of Dr, Weisman’s service as chief executive officer of the
Company as follows: options to purchase 298,750 shares of common stock, referred
to as the Six Month Options, shall vest and be immediately exercisable upon the
six-month anniversary of the date of grant and options to purchase 49,790 shares
of common stock shall vest and become exercisable in 30 monthly installments
commencing on the seven-month anniversary of the date of grant. In the event of
the Company’s termination of Dr. Weisman’s service as chief executive officer,
referred to as the Termination of Service, as a result of hiring a permanent
chief executive officer during the first six months of Dr. Weisman’s employment,
the Six Month Options shall immediately vest and all other options shall
immediately expire and (ii) in the event of a Termination of Service as a result
of hiring a permanent chief executive officer at any time, all options vested as
of the date of Termination of Service (including any Six Month Options vesting
as result of the Termination of Service) shall expire on the two-year
anniversary of the date of the discontinuation of all service by Dr. Weisman to
the Company or the term of the option, whichever occurs first, and all other
options shall immediately expire. The options are granted under the Company’s
2021 Stock Incentive Plan and the termination of the options are subject to the
Plan except as set forth above. The exercise of all options are also contingent
on the Company’s filing of an amendment to its certificate of incorporation for
purposes of increasing its authorized common stock.

Dr. Weisman and the Company have agreed to negotiate in good faith a definitive
employment agreement and definitive stock option agreement on the terms and
conditions set forth above, with a goal of executing both agreements as soon as
practicable. The definitive agreements shall include such other terms and
conditions as are customary and reasonable for agreements of such nature,
provided that such other terms and conditions are not inconsistent with those
set forth above.

Dr. Weisman has served as a member of the Board since December 2018 and vice
chairman of the Board since November 2022. Since 2012, Dr. Weisman has also been
Managing Director of And-One Consulting, LLC, which is engaged in the business
of advising medical product companies, investment firms, and government and
non-government healthcare organizations in formulating and implementing
strategies for driving innovation in healthcare products and services.
Since 2014, Dr. Weisman has also served as Executive Chairman of the Board of
3DBio Therapeutics, a company using 3D bioprinting technology to develop whole
tissue implants that fully integrate into body. Dr. Weisman was Co-founder,
Chairman and CEO of Flame Biosciences, a clinical stage company focused on the
research, development and commercialization of transformative therapies for
cancer, from January 2020 to January 2022. From February 2016 through 2019, Dr. Weisman served as co-founder and Chief Scientific Officer for Mycrobiomics,
a company developing counseling and educational material to help consumers to
understand the microbiome and improve their health and well-being. Between
December 2012 and December 2013, Dr. Weisman was Chairman and Chief Executive
Officer of Coronado Biosciences, a biopharmaceutical company developing novel
immunotherapies for autoimmune diseases and cancer. Between 2012 and 2019, Dr. Weisman served on the Board of Directors of ControlRad, Inc, a medical
device company developing technology to reduce radiation exposure during
fluoroscopic procedures. Dr. Weisman also served on the Board of Directors of
Caelum Biosciences, Inc from 2019 until its acquisition by AstraZeneca in 2021.
Since 2012, Dr. Weisman has also been an Operating Partner at CRG, an investment
management firm making structured debt and equity investments in healthcare
companies. Since 2016, Dr. Weisman has been a venture advisor to the Israel
Biotech Fund
, which invests and develops clinical-stage biotechnology companies
based in Israel. From 2010 to 2016, Dr. Weisman served on the Board of Governors
of the Patient Centered Outcomes Research Institute, established by the U.S.
Congress
as part of the Patient Protection and Affordable Care Act of 2010. Dr.
Weisman
was the Chief Science and Technology Officer of the Johnson & Johnson
Medical Devices and Diagnostics Group
from 2006 to 2012 and served as Chairman
of the J&J Worldwide R&D Council. Dr. Weisman was Company Group Chairman of J&J
Pharmaceutical Research & Development
from 2004 to 2006.




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