Invivo Therapeutics Holdings Corp (NASDAQ:NVIV) entered into a letter agreement (the “Agreement”) with Lorianne K. Masuoka, M.D., the Company’s Chief Medical Officer, in connection with Dr. Masuoka’s retirement. Pursuant to the Agreement, Dr. Masuoka’s employment with the Company will end effective as of January 2, 2017, unless earlier terminated pursuant to Dr. Masuoka’s resignation or termination by the Company (the “Separation Date”). From the Effective Date until the Separation Date, Dr. Masuoka will continue to serve as the Company’s Chief Medical Officer.
The Company also engaged Dr. Louis Vaickus to advise the Company on medical and regulatory issues as a consultant until a new permanent chief medical officer is named. Dr. Vaickus previously served as the Company’s interim Chief Medical Officer from October 2013 until February 2015.
Pursuant to the Agreement, the Company will, (i) pay Dr. Masuoka severance in an amount equal to her bi-weekly base salary for twelve months, subject to customary payroll withholding and other deductions, (ii) if Dr. Masuoka elects continued health or dental insurance coverage under COBRA, pay for the monthly cost of such coverage for up to six months following the Separation Date, (iii) provide Dr. Masuoka with twelve months of outplacement counseling, (iv) pay Dr. Masuoka her 2016 annual cash bonus weighted 100% on the achievement of 2016 corporate objectives, as determined by the Company’s Board of Directors for all Company employees (i.e. without any weighting to Dr. Masuoka’s individual objectives) and (v) extend to January 2, 2018 the period during which Dr. Masuoka may exercise stock options that were vested as of the Separation Date. The bonus will be payable at the time that 2016 bonuses are paid to all Company employees receiving 2016 bonuses, which is expected to occur on or about March 1, 2017.
The Agreement also includes a general release of claims by Dr. Masuoka.