Document

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 

FORM 8–K
 
 

CURRENT REPORT
Pursuant to Section 13 OR 15 (d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 6, 2017
 
 

ELEVEN BIOTHERAPEUTICS, INC.
(Exact name of registrant as specified in its charter)
 
 

 
 
 
 
 
 
Delaware
 
001-36296
 
26-2025616
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
 
245 First Street, Suite 1800
Cambridge, MA
 
02142
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (617) 444-8550
Not Applicable
(Former name or former address, if changed since last report.)
 
 


 


Check the appropriate box below if the Form 8–K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨
Soliciting material pursuant to Rule 14a–12 under the Exchange Act (17 CFR 240.14a–12)
 
¨
Pre–commencement communications pursuant to Rule 14d–2(b) under the Exchange Act (17 CFR 240.14d–2(b))
 
¨
Pre–commencement communications pursuant to Rule 13e–4(c) under the Exchange Act (17 CFR 240.13e–4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company     ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                                 ☒



 



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

Appointment of Interim Chief Financial Officer
On October 13, 2017, Eleven Biotherapeutics, Inc. (the “Company”) announced that the Board of Directors (the “Board”) of the Company appointed Richard F. Fitzgerald, age 54, as the Company’s Interim Chief Financial Officer, effective October 13, 2017 (the “Effective Date”). In connection with Mr. Fitzgerald’s appointment, the Company entered into a consulting agreement (the “Consulting Agreement”) with Mr. Fitzgerald, effective as of the Effective Date. Under the Consulting Agreement, Mr. Fitzgerald will receive a monthly salary of $26,667 and reimbursement of business related expenses.
Mr. Fitzgerald most recently served as a consultant to private life science based companies from July 2017 through October 2017. He previously served as the Chief Financial Officer of PAVmed Inc. (NASDAQ: PAVM), a medical device company, from October 2015 through March 2017 during which time PAVmed Inc. completed its initial public offering and listing on the NASDAQ Stock Market LLC. From April 2009 to October 2015, Mr. Fitzgerald was the Chief Financial Officer of TechPrecision Inc. (OTCBB: TPCS), a global manufacturer of precision large-scale components for the medical device, defense and energy industries. From 2002 to 2008, he served in various senior financial roles culminating in the role of Vice President and Chief Financial Officer of Nucleonics Inc., a venture-backed biotechnology company and early pioneer within the field of RNAi therapeutics whose assets were sold to Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) in December 2008. During his tenure at Nucleonics, he served as co-Chair of the Biotechnology Industry Organization’s (BIO) National CFO and Tax VP Committee, supporting federal tax and finance lobbying efforts, and was active in the Association of Biotechnology Financial Officers. From 1995 to 2002, Mr. Fitzgerald served in the corporate development office and, from 1998 to 2002, as Director of Corporate Development for Exelon Corporation (formerly PECO Energy), an energy generator and distributor, where he managed business development efforts, mergers and acquisitions, including the $18 billion merger with Unicom Corp. and the rollup of utility contractors which led to the formation of InfraSource (NYSE: IFS). From 1985 to 1995, Mr. Fitzgerald served as a Senior Manager in the Audit and Transaction Services Group of Coopers & Lybrand LLP (now PricewaterhouseCoopers). He is a member of the American and Pennsylvania Institutes of Public Accounting and a founding member of the Bucknell University Business Advisory Board. Mr. Fitzgerald received his B.S. in Business Administration and Accounting from Bucknell University.
There are no family relationships between Mr. Fitzgerald and any director or executive officer of the Company, and he has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.
The description of the Consulting Agreement contained herein does not purport to be complete and is qualified in its entirety by reference to the complete text of the Consulting Agreement, a copy of which is filed as Exhibit 10.1 to this current report on Form 8-K.

Resignation of Chief Financial Officer

On October 6, 2017, John J. McCabe resigned as the Chief Financial Officer of the Company, effective as of October 20, 2017. There were no disagreements on any matter relating to the Company's operations, policies or practices between Mr. McCabe and the Company or any officer or director of the Company which led to Mr. McCabe’s resignation.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.
 

 


 
 
 
 
Exhibit Number
 
Description
10.1
 



 


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 13, 2017
 
 
 
 
Eleven Biotherapeutics, Inc.
 
 
By:
 
/s/ Stephen A. Hurly
 
 
Stephen A. Hurly
 
 
President and Chief Executive Officer




 
Exhibit


                        
Exhibit 10.1
CONSULTING AGREEMENT
THIS CONSULTING AGREEMENT (together with the attached Business Terms Exhibit, the “Agreement”), is made as of October 13, 2017 (the “Effective Date”) by and between ELEVEN BIOTHERAPEUTICS, INC., a Delaware corporation with an office at 245 First Street, Suite 400, Cambridge, MA 02142 (“Eleven”), and Richard F. Fitzgerald with an address at 330 Bair Road, Berwyn, PA 19312 (“Consultant”). Eleven desires to have the benefit of Consultant’s knowledge and experience, and Consultant desires to provide services to Eleven, all as provided in this Agreement.
1.
Services. Eleven retains Consultant, and Consultant agrees to provide, consulting and advisory services to Eleven as Eleven may from time to time reasonably request and as specified in the attached Business Terms Exhibit (the “Consulting Services”). Any changes to the Consulting Services (and any related compensation adjustments) must be agreed to in writing between Consultant and Eleven prior to implementation of the changes.
2.
Compensation. As full consideration for Consulting Services provided under this Agreement, Eleven agrees to pay Consultant and reimburse expenses as described in the Business Terms Exhibit.
3.
Performance. Consultant agrees to provide the Consulting Services to Eleven, or to its designee, in accordance with all applicable laws and regulations and the highest professional standards. Consultant represents and warrants that Consultant has not been, and is not under consideration to be (a) debarred from providing services pursuant to Section 306 of the United States Federal Food Drug and Cosmetic Act, 21 U.S.C. § 335a; (b) excluded, debarred or suspended from, or otherwise ineligible to participate in, any federal or state health care program or federal procurement or non-procurement programs (as that term is defined in 42 U.S.C. § 1320a-7b(f)); (c) disqualified by any government or regulatory agencies from performing specific services, and is not subject to a pending disqualification proceeding; or (d) convicted of a criminal offense related to the provision of health care items or services, or under investigation or subject to any such action that is pending.
4.
Compliance with Obligations to Third Parties. Consultant represents and warrants to Eleven that the terms of this Agreement and Consultant’s performance of Consulting Services do not and will not conflict with any of Consultant’s obligations to any third parties. Consultant agrees not to use any trade secrets or other confidential information of any other person, firm, corporation, institution or other third party in connection with any of the Consulting Services. If Consultant is an employee of another company or institution, Consultant represents and warrants that Consultant is permitted to enter into this Agreement pursuant to such company’s or institution’s policies concerning professional consulting and additional workload. Consultant agrees not to make any use of any funds, space, personnel, facilities, equipment or other resources of a third party in performing the Consulting Services, nor take any other action that would result in a third party asserting ownership of, or other rights in, any Work Product (defined in Section 5), unless agreed upon in writing in advance by Eleven.
5.
Work Product. Consultant will promptly and fully disclose in confidence to Eleven all inventions, discoveries, improvements, ideas, concepts, designs, processes, formulations, products, computer programs, works of authorship, databases, mask works, trade secrets, know-how, information, data, documentation, reports, research, creations and other products arising from or made in the

CONFIDENTIAL    Page 1 of 1


performance of (solely or jointly with others) the Consulting Services (whether or not patentable or subject to copyright or trade secret protection) (collectively, the “Work Product”). Consultant assigns and agrees to assign to Eleven all rights in the United States and throughout the world to Work Product. Consultant will keep and maintain adequate and current written records of all Work Product, and such records will be available to and remain the sole property of Eleven at all times. For purposes of the copyright laws of the United States, Work Product will constitute “works made for hire,” except to the extent such Work Product cannot by law be “works made for hire”. Consultant represents and warrants that Consultant has and will have the right to transfer and assign to Eleven ownership of all Work Product. Consultant will execute all documents, and take any and all actions needed, all without further consideration, in order to confirm Eleven’s rights as outlined above. In the event that Consultant should fail or refuse to execute such documents within a reasonable time, Consultant appoints Eleven as attorney to execute and deliver any such documents on Consultant’s behalf.
6.
Confidentiality.Confidential Information” means (a) any scientific, technical, business or financial information in whatever form (written, oral or visual) that is furnished or made available to Consultant by or on behalf of Eleven, (b) all information contained in or comprised of Eleven Materials (defined in Section 8); and (c) all Work Product. Confidential Information is, and will remain, the sole property of Eleven. During the Term (as defined in Section 9) and for a period of seven (7) years thereafter, Consultant agrees to (i) hold in confidence all Confidential Information, and not disclose Confidential Information without the prior written consent of Eleven; (ii) use Confidential Information solely in connection with the Consulting Services; (iii) treat Confidential Information with no less than a reasonable degree of care; (iv) reproduce Confidential Information solely to the extent necessary to provide the Consulting Services, with all such reproductions being considered Confidential Information; and (v) notify Eleven of any unauthorized disclosure of Confidential Information promptly upon becoming aware of such disclosure. Consultant’s obligations of non-disclosure and non-use under this Agreement will not apply to any portion of Confidential Information that Consultant can demonstrate, by competent proof:
(a)
is generally known to the public at the time of disclosure or becomes generally known through no wrongful act on the part of Consultant;
(b)
is in Consultant’s possession at the time of disclosure other than as a result of Consultant’s breach of any legal obligation;
(c)
becomes known to Consultant on a non-confidential basis through disclosure by sources other than Eleven having the legal right to disclose such Confidential Information; or
(d)
is independently developed by Consultant without reference to or reliance upon Confidential Information.
If Consultant is required by a governmental authority or by order of a court of competent jurisdiction to disclose any Confidential Information, Consultant will give Eleven prompt written notice thereof and Consultant will take all reasonable and lawful actions to avoid or minimize the degree of such disclosure. Consultant will cooperate reasonably with Eleven in any efforts to seek a protective order.
7.
Eleven Materials. All documents, data, records, materials, compounds, apparatus, equipment and other physical property furnished or made available by or on behalf of Eleven to Consultant in connection with this Agreement (“Eleven Materials”) are and will remain the sole property of Eleven. Consultant will use Eleven Materials only as necessary to perform the Consulting Services

CONFIDENTIAL    Page 2 of 2


and will not transfer or make available to any third party the Eleven Materials without the express prior written consent of Eleven. Consultant will return to Eleven any and all Eleven Materials upon request.
8.
Publication; Publicity. Consultant may not publish or refer to Work Product, in whole or in part, without the prior express written consent of Eleven. Consultant will not use the name, logo, trade name, service mark, or trademark, or any simulation, abbreviation, or adaptation of same, or the name of Eleven or any of its affiliates for publicity, promotion, or other uses without Eleven’s prior written consent.
9.
Expiration/Termination. The term of this Agreement will commence on the Effective Date and expire at the end of the period specified in the “Term” Section of the Business Terms Exhibit, unless sooner terminated pursuant to the provisions of this Section 9 or extended by mutual written agreement of the parties (the “Term”). Eleven may terminate this Agreement at any time with or without cause upon not less than ten (10) days’ prior written notice to Consultant. Consultant may terminate this Agreement at any time with or without cause upon not less than sixty (60) days’ prior written notice to Eleven. Any expiration or termination of this Agreement shall be without prejudice to any obligation of either party that has accrued prior to the effective date of expiration or termination. Upon expiration or termination of this Agreement, neither Consultant nor Eleven will have any further obligations under this Agreement, except that (a) Consultant will terminate all Consulting Services in progress in an orderly manner as soon as practicable and in accordance with a schedule agreed to by Eleven, unless Eleven specifies in the notice of termination that Consulting Services in progress should be completed; (b) Consultant will deliver to Eleven all Work Product made through expiration or termination; (c) Eleven will pay Consultant any monies due and owing Consultant, up to the time of termination or expiration, for Consulting Services properly performed and all authorized expenses actually incurred; (d) Consultant will immediately return to Eleven all Eleven Materials and other Confidential Information and copies thereof provided to Consultant under this Agreement; and (e) the terms, conditions and obligations under Sections 3, 5, 6, 7, 8, 9 and 10 will survive expiration or termination of this Agreement.
10.
Miscellaneous.
(a)
Independent Contractor. The parties understand and agree that Consultant is an independent contractor and not an agent or employee of Eleven. Consultant has no authority to obligate Eleven by contract or otherwise. Consultant will not be eligible for any employee benefits of Eleven and expressly waives any rights to any employee benefits. Consultant will bear sole responsibility for paying and reporting Consultant’s own applicable federal and state income taxes, social security taxes, unemployment insurance, workers’ compensation, and health or disability insurance, retirement benefits, and other welfare or pension benefits, if any, and indemnifies and holds Eleven harmless from and against any liability with respect to such taxes, benefits and other matters.
(b)
Use of Name. Consultant consents to the use by Eleven of Consultant’s name on its website, in press releases, company brochures, offering documents, presentations, reports or other documents in printed or electronic form, and any documents filed with or submitted to any governmental or regulatory agency or any securities exchange or listing entity; provided, that such materials or presentations accurately describe the nature of Consultant’s relationship with or contribution to Eleven.

CONFIDENTIAL    Page 3 of 3


(c)
Entire Agreement. This Agreement contains the entire agreement of the parties with regard to its subject matter, and supersedes all prior or contemporaneous written or oral representations, agreements and understandings between the parties relating to that subject matter. This Agreement may be changed only by a writing signed by Consultant and an authorized representative of Eleven.
(d)
Certain Disclosures and Transparency. Consultant acknowledges that Eleven and its affiliates are required to abide by federal and state disclosure laws and certain transparency policies governing their activities including providing reports to the government and to the public concerning financial or other relationships with healthcare providers. Consultant agrees that Eleven and its affiliates may, in their sole discretion, disclose information about this Agreement and about Consultant’s Consulting Services including those relating to healthcare providers and any compensation paid to healthcare providers pursuant to this Agreement. Consultant agrees to promptly supply information reasonably requested by Eleven for disclosure purposes. To the extent that Consultant is independently obligated to disclose specific information concerning the Consulting Services relating to healthcare providers and compensation paid to healthcare providers pursuant to this Agreement, Consultant will make timely and accurate required disclosures.
(e)
Assignment and Binding Effect. The Consulting Services to be provided by Consultant are personal in nature. Consultant may not assign or transfer this Agreement or any of Consultant’s rights or obligations hereunder. In no event will Consultant assign or delegate responsibility for actual performance of the Consulting Services to any third party. Eleven may transfer or assign this Agreement, in whole or in part, without the prior written consent of Consultant. Any purported assignment or transfer in violation of this Section is void. This Agreement will be binding upon and inure to the benefit of the parties and their respective legal representatives, heirs, successors and permitted assigns.
(f)
Notices. All notices required or permitted under this Agreement must be in writing and must be given by directing the notice to the address for the receiving party set forth in this Agreement or at such other address as the receiving party may specify in writing under this procedure. Notices to Eleven will be marked “Attention: CEO”. All notices must be given (i) by personal delivery, with receipt acknowledged, (ii) by prepaid certified or registered mail, return receipt requested, or (iii) by prepaid recognized next business day delivery service. Notices will be effective upon receipt or at a later date stated in the notice.
(g)
Governing Law. This Agreement and any disputes relating to or arising out of this Agreement will be governed by, construed, and interpreted in accordance with the internal laws of the State of Delaware, without regard to any choice of law principle that would require the application of the law of another jurisdiction. The parties agree to submit to the exclusive jurisdiction of the state and federal courts located in the State of Delaware and waive any defense of inconvenient forum to the maintenance of any action or proceeding in such courts.
(h)
Severability; Reformation. Each provision in this Agreement is independent and severable from the others, and no provision will be rendered unenforceable because any other provision is found by a proper authority to be invalid or unenforceable in whole or in part. If any provision of this Agreement is found by such an authority to be invalid or unenforceable in whole or in part, such provision shall be changed and interpreted so as to best accomplish

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the objectives of such unenforceable or invalid provision and the intent of the parties, within the limits of applicable law.
(i)
No Strict Construction; Headings. This Agreement has been prepared jointly and will not be strictly construed against either party. The section headings are included solely for convenience of reference and will not control or affect the meaning or interpretation of any of the provisions of this Agreement.
(j)
Waivers. Any delay in enforcing a party’s rights under this Agreement, or any waiver as to a particular default or other matter, will not constitute a waiver of such party’s rights to the future enforcement of its rights under this Agreement, except with respect to an express written waiver relating to a particular matter for a particular period of time signed by Consultant and an authorized representative of the waiving party, as applicable.
(k)
Remedies. Consultant agrees that (i) Eleven may be irreparably injured by a breach of this Agreement by Consultant; (ii) money damages would not be an adequate remedy for any such breach; (iii) as a remedy for any such breach Eleven will be entitled to seek equitable relief, including injunctive relief and specific performance, without being required by Consultant to post a bond; and (iv) such remedy will not be the exclusive remedy for any breach of this Agreement.
(l)
Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. A facsimile or portable document format (“.pdf”) copy of this Agreement, including the signature pages, will be deemed an original.
[Signature page follows]

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
ELEVEN BIOTHERAPEUTICS, INC.
By: /s/ Stephen A. Hurly
Name: Stephen A. Hurly
Title: President and Chief Executive Officer
RICHARD F. FITZGERALD
/s/ Richard F. Fitzgerald




BUSINESS TERMS EXHIBIT
Consulting Agreement with Richard F. Fitzgerald
Dated October 13, 2017
1.
Consulting Services:
Consultant will provide the following Consulting Services to Eleven:
Provision of Interim Chief Financial Officer support services for the Company, focused on leadership and day-to-day management of the accounting and finance function, external SEC reporting, issuance of monthly, quarterly and annual financial statements and related filings, external financing support, provision of financial analysis and financial support to senior management, coordination and communication with external constituents, and maintenance of financial policies, processes, procedures and controls. The Interim Financial Officer role will begin on October 20, 2017; provided, however, Consultant shall begin to provide Consulting Services to the Company beginning on the Effective Date.
Consultant will provide Consulting Services on a schedule and at a location or locations mutually agreed between Consultant and Stephen Hurly, the Company’s CEO. In addition, Consultant will be available for a reasonable number of telephone and/or written consultations.
2.
Compensation:
Fees: Eleven will pay Consultant $26,667 per month during the Term.
Expenses: Eleven will reimburse Consultant for any pre-approved expenses actually incurred by Consultant in connection with the provision of Consulting Services. Requests for reimbursement will be in a form reasonably acceptable to Eleven, will include supporting documentation and will accompany Consultant’s invoices.
Invoicing: On a bi-weekly basis, Consultant will invoice Eleven for Consulting Services rendered and related expenses incurred during the bi-weekly period. Invoices should reference this Agreement and should be submitted to Eleven to the attention of: Stephen Hurly, CEO. Invoices will contain such detail as Eleven may reasonably require and will be payable in U.S. Dollars. Undisputed payments will be made by Eleven within fifteen (15) days after Eleven’s receipt of Consultant’s invoice, request for reimbursement and all supporting documentation.
3.
Term:
This Agreement will be for a term of one (1) year beginning on the Effective Date.

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