UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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): December 29, 2016
Synergy Pharmaceuticals Inc.
(Exact name of registrant as specified in its charter)
Delaware |
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001-35268 |
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33-0505269 |
(State or other jurisdiction |
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(Commission |
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IRS Employer |
of incorporation or organization) |
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File Number) |
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Identification No.) |
420 Lexington Avenue, Suite 2012
New York, NY 10170
(Address of principal executive offices)
Registrants telephone number, including area code: (212) 297-0020
(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:
o Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On December 29, 2016, Synergy Pharmaceuticals Inc. (the Company) entered into a fifth amended and restated employment agreement with Gary S. Jacob, its Chief Executive Officer, which amended and restated his previous agreement dated January 7, 2015 (the Jacob Agreement). In the Jacob Agreement, the term of his employment agreement was extended to December 31, 2019 and a new provision was added to Dr. Jacobs realization bonus in Section 1.5(b) that in the event the Company engages in a merger transaction or a sale of substantially all of its assets where (i) the Companys enterprise value at the time of the merger or sale equals or exceed $2 billion and its stockholders prior to consummation of the merger or sale beneficially own less than 20% of the stock of the surviving entity after consummation of the merger, Dr. Jacob shall receive a bonus in an amount determined by multiplying the enterprise value by 4.5%.
The foregoing information is a summary of the agreement involved in the transaction described above, is not complete, and is qualified in its entirety by reference to the full text of such agreement, a copy of which will be attached as an exhibit to the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Readers should review such agreement for a complete understanding of the terms and conditions associated with this transaction.
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.
Dated: December 30, 2016
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SYNERGY PHARMACEUTICALS INC. | |
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By: |
/s/ Gary S. Jacob |
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Gary S. Jacob, Ph.D. | |
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President and Chief Executive Officer |