Exhibit 10.6
TRANSITIONAL SERVICES AGREEMENT
This Transitional Services Agreement (“Agreement”) is made between Scholar Rock, Inc., a Delaware corporation (the “Company”), and Jay Backstrom (the “Employee”). The Company together with the Employee shall be referred to as the “Parties”. Terms with initial capitalization not otherwise defined shall have the meanings ascribed to such terms in the Employment Agreement (as defined below).
WHEREAS, the Parties entered into an Employment Agreement dated as of September 19, 2022 (the “Employment Agreement”);
WHEREAS, pursuant to the Employment Agreement, the Company agreed to provide the Employee with certain severance pay and benefits (the “Severance Pay and Benefits”) in the event of certain cessations of employment, subject to, among other things, the Employee entering into, not revoking and complying with a Separation Agreement and Release;
WHEREAS, the Employee’s employment with the Company will be ending pursuant to Section 3(c) and Section 4 of the Employment Agreement following an advisory period, during which the Employee will serve as a Senior Advisor, all as set forth below;
WHEREAS, this Agreement is the Separation Agreement and Release referred to in the Employment Agreement;
WHEREAS, in exchange for, among other things, the Employee entering into and not revoking this Agreement and fully complying with the Continuing Obligations (as defined below), the Employee will be employed as a Senior Advisor and then his employment will end and the Company shall provide the Employee with Severance Pay and Benefits, as modified by this Agreement, as set forth below; and
WHEREAS, the payments and benefits set forth in this Agreement are the exclusive payments and benefits to be paid or provided to the Employee in connection with the ending of the Employee’s employment. By entering into this Agreement, the Employee acknowledges and agrees that he is not entitled to any other severance pay, benefits or equity rights including without limitation pursuant to any severance plan, program or arrangement.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:
2
3
The amounts payable under Section 3(a) and (b), to the extent taxable, shall be paid out in substantially equal installments in accordance with the Company’s payroll practice commencing on the Company’s next regular payroll date following the later of (i) the Date of Termination and (ii) the Effective Date of the Follow on Release; provided, that the initial payment shall include a catch-up payment to cover amounts retroactive to the day immediately following the Date of Termination. Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2).
4
5
6
7
8
9
IN WITNESS WHEREOF, the Parties, intending to be legally bound, have executed this Agreement on the date(s) indicated below.
SCHOLAR ROCK, INC.
By:/s/ David Hallal
Name: David Hallal
Title: Chairman of the Board
Date:__________________________________
EMPLOYEE
Jay Backstrom
Date:___________________________________
10
The schedule and exhibit to this Agreement listed below have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of the schedule and exhibit will be provided to the Securities and Exchange Commission upon request.
Schedule A
Exhibit A – Follow On Release
11