Arbutus Biopharma Corp (NASDAQ:ABUS) entered into a termination and severance agreement with Dr. Michael Abrams, the Managing Director of the Corporation (the “Abrams Termination Agreement”). Pursuant to the terms of the Abrams Termination Agreement, Dr. Abrams’ employment with the Corporation was terminated effective as of September 30, 2016 (the “Abrams Effective Date”) and in accordance with the terms of Dr. Abrams’ employment agreement dated August 4, 2015, Dr. Abrams will receive (i) all earned but unpaid base salary including any accrued but unused vacation time and (ii) a lump sum payment of $417,000 and potential continued insurance benefit coverage or reimbursement for equivalent private coverage. In addition, all previously granted and outstanding options will expire on September 30, 2017 and Dr. Abrams will be required to sign a consulting agreement with the Corporation to provide transitional business services for a period of twelve months from the Abrams Effective Date.
On September 30, 2016, the Corporation entered into a termination and severance agreement with Dr. Mark Kowalski, the Chief Medical Officer of the Corporation (the “Kowalski Termination Agreement”). Pursuant to the terms of the Kowalski Termination Agreement, Dr. Kowalski’s employment with the Corporation was terminated effective as of September 30, 2016 (the “Kowalski Effective Date”) and in accordance with the terms of Dr. Kowalski’s employment agreement dated August 4, 2015, Dr. Kowalski will receive (i) all earned but unpaid base salary including any accrued but unused vacation time and (ii) a lump sum payment of $547,500, a lump sum payment of $76,500 representing the average bonus earned in the past three years, pro-rated for the period worked in 2016, and potential continued insurance benefit coverage or reimbursement for equivalent private coverage. In addition, all previously granted and outstanding options will expire on September 30, 2017 and Dr. Kowalski will be required to sign a consulting agreement with the Corporation to provide transitional business services for a period of twelve months from the Kowalski Effective Date.
