In connection with Mr. Jacobs’ resignation in January 2023, we agreed to extend the
exercise period of his vested stock options until April 20, 2023, in exchange for his release of all claims against Harmony and its affiliates.
Sandip Kapadia Employment Agreement
On March 4, 2021, we entered into an employment agreement with Sandip Kapadia. Mr. Kapadia’s
employment under the agreement began on March 31, 2021 and will continue until terminated upon written notice by either party in accordance with the terms of the employment agreement.
Pursuant to his employment agreement, Mr. Kapadia is entitled to receive an annual base
salary of $465,000 per year; the actual base salary earned by Mr. Kapadia for services during the last completed fiscal year is set forth above in the Summary Compensation Table. In addition, Mr. Kapadia is eligible to participate in the health
and welfare benefit plans and programs maintained by us for the benefit of our employees with comparable responsibilities.
Mr. Kapadia is eligible to earn annual discretionary cash bonuses, as determined by our
Chief Executive Officer in his sole discretion, based on the assessment of individual and Company performance. Mr. Kapadia’s target bonus opportunity is 50% of his annual base salary. The payment of any annual bonus, to the extent any annual
bonus becomes payable, will be contingent upon Mr. Kapadia’s continued employment through the applicable payment date.
In addition, in connection with the commencement of his employment with us, Mr. Kapadia is
eligible to receive a cash sign-on bonus in the aggregate amount of $350,000, payable in two equal installments of $175,000. The first installment was paid to Mr. Kapadia on June 15, 2021; the second installment is payable to Mr. Kapadia on
June 15, 2022, subject to Mr. Kapadia’s continued employment through the payment date. If Mr. Kapadia resigns from employment without “good reason” (as defined in his employment agreement) within 12 months after receiving the first installment
payment, or within 12 months after receiving the second installment payment, Mr. Kapadia is obligated to repay the full amount of either such installment (as applicable) to the Company on an after-tax basis. If Mr. Kapadia’s employment is
terminated by the Company without “cause” (as defined in his employment agreement), by Mr. Kapadia for “good reason,” or due to his death or disability, any then-unpaid portion of the sign-on bonus shall be paid to Mr. Kapadia (or his estate, as
applicable) within 15 days of the applicable termination date.
In connection with entering into his employment agreement, Mr. Kapadia was awarded (i)
60,000 RSUs (the “Kapadia RSU Award”) and (ii) an option to purchase 230,000 shares of our common stock (the “Kapadia Option Award”), pursuant to the 2020 Plan. The Kapadia RSU Award vests as to 50% of the total RSUs underlying the award on
March 29, 2023, and as to 25% of the total RSUs underlying the award on each of the first and second anniversaries of such date, subject to continued employment through the applicable vesting date. The Kapadia Option Award vests and becomes
exercisable over four years (i) with respect to 50% of the total shares of our common stock underlying the option on the second anniversary of the applicable vesting commencement date, and (ii) with respect to 1/48 of the total shares underlying
the option on each of the first 24 monthly anniversaries of the vesting commencement date thereafter, subject to continued service through the applicable vesting date.
The severance benefits and payments payable to Mr. Kapadia upon certain qualifying
terminations of his employment are summarized below under the section titled, “—Potential Payments Upon Termination or Change in Control.” In addition, Mr. Kapadia’s employment agreement contains customary
confidentiality provisions, as well as standard non-compete and employee non-solicitation restrictions effective during employment and for one year thereafter. Mr. Kapadia’s employment agreement includes a “best pay” provision under Section 280G
of the Code, pursuant to which any “parachute payments” that become payable to him will be reduced so that such payments are not subject to the excise tax under Section 4999 of the Code.
Jeffrey Dayno Offer Letter
On October 10, 2017, we entered into an offer letter with Jeffrey Dayno. Dr. Dayno’s
employment under the offer letter is at-will, and will continue until terminated at any time by either party.
Pursuant to his offer letter, Dr. Dayno is entitled to receive an annual base salary of
$400,000 per year; the actual base salary earned by Dr. Dayno for services during the last completed fiscal year is set forth above in the Summary Compensation Table. In addition, Dr. Dayno is eligible to participate in the health and welfare
benefit plans and programs maintained by us for the benefit of our employees.
Dr. Dayno is eligible to earn annual cash bonuses under our bonus program, based on the
achievement of individual performance goals relating to our growth and overall performance. Dr. Dayno’s target bonus opportunity is 50% of his