Item 5.02 - Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(b)
On July 29, 2021, Stuart Kingsley's employment as the Chief Executive Officer
and President of Scholar Rock Holding Corporation (the "Company") ended, as did
his service on the Company's Board of Directors (the "Board"). Mr. Kingsley's
departure from the Company was not the result of any disagreement with the
Company on any matters relating to the Company's operations, policies or
practices. The Company plans to enter into a Separation and Release Agreement
with Mr. Kingsley.
(c)
On July 30, 2021, the Board appointed Nagesh Mahanthappa, the Company's former
Chief Executive Officer and President, as Interim Chief Executive Officer and
President of the Company and appointed Dr. Mahanthappa to serve as a member of
the Board, while he remains the Company's Interim Chief Executive Officer.
Prior to his appointment as Interim Chief Executive Officer and President of the
Company, Dr. Mahanthappa had been serving as a senior advisor to the Company
since his resignation from the Company in July 2020.
Dr. Mahanthappa was thefounding employee of Scholar Rock and served as a
director and its President and Chief Executive Officer from October 2012 to July
2020. Prior to joining Scholar Rock, from February 2007 to May 2012,
Dr. Mahanthappa was a founding employee and Vice President, Corporate
Development & Operations at Avila Therapeutics, Inc. (acquired by Celgene
Corporation in March 2012). Previously, from August 2002 to February 2007, he
served in roles of increasing responsibility at Alnylam Pharmaceuticals, Inc.,
most recently as Vice President, Scientific & Strategic Development. He was also
a founder of TwistDx, Inc. a DNA diagnostics company acquired by Inverness
Medical Innovations, Inc. (now Alere, Inc.) in 2010. Dr. Mahanthappa received
his Ph.D. in Neurobiology from the California Institute of Technology and
completed his post-doctoral training at the E.K. Shriver Center for Mental
Retardation (then affiliated with Massachusetts General Hospital) and Harvard
Medical School. He received his M.B.A. from the F.W. Olin Graduate School of
Management at Babson College and his B.A. in Biology and Chemistry from the
University of Colorado, Boulder.
(e)
In connection with his appointment as the Interim Chief Executive Officer and
President, Dr. Mahanthappa entered into an employment agreement with the Company
effective July 30, 2021 (the "Mahanthappa Agreement"). Pursuant to the
Mahanthappa Agreement, Dr. Mahanthappa will receive an initial annual base
salary of $538,200 and will be eligible for an annual cash bonus as determined
by the Board or the Compensation Committee of the Board with an annual incentive
target of 55% of his annual base salary. Dr. Mahanthappa's 2021 base salary and
any cash bonus payable for service in 2021 shall be subject to proration.
During the term of his employment, he will continue to vest in his existing
equity awards with the Company, subject to the terms of the applicable equity
award agreements and equity incentive plans. If the Company terminates Dr.
Mahanthappa from the Interim Chief Executive Officer position prior to February
28, 2022, then the portion of his stock options that would have vested through
February 28, 2022 shall immediately accelerate and become fully vested and
exercisable as of the date of termination. Dr. Mahanthappa is also eligible to
participate in the employee benefit plans available to the Company's employees,
subject to the terms of those plans. The Mahanthappa Agreement also contains
other customary terms and provisions.
The above summary is not complete and is qualified in its entirety by
Mahanthappa Agreement, a copy of which is attached hereto as Exhibit 10.1 and is
incorporated herein by reference.
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Item 7.01. Regulation FD Disclosure.
On August 3, 2021, the Company issued a press release announcing Mr. Kingsley's
departure and Dr. Mahanthappa's appointment as Interim Chief Executive Officer
and President. A copy of this press release is furnished as Exhibit 99.1 to this
Report on Form 8-K.
The information in this Item 7.01 and Exhibit 99.1 attached hereto is intended
to be furnished and shall not be deemed "filed" for purposes of Section 18 of
the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to
the liabilities of that section, nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933 or the Exchange Act,
except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit
No. Description
10.1 Employment Agreement, by and between Scholar Rock, Inc. and Nagesh
Mahanthappa, dated July 30, 2021 .
99.1 Press Release issued by Scholar Rock Holding Corporation dated August
3, 2021.
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