Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
On October 6, 2022 (the "Separation Date"), Kenneth L. Waggoner, the Chief
Executive Officer, President and General Counsel of PharmaCyte Biotech, Inc.
(the "Company") resigned from his position as an employee of the Company and its
direct and indirect subsidiaries and affiliates (collectively, the "Company
Group") and as a director on the Board of Directors of the Company (the
"Board"). Effective October 6, 2022, the Board appointed Joshua N. Silverman, a
director on the Board since August 2022, as interim Chairman of the Board,
interim Chief Executive Officer and interim President of the Company. Mr.
Silverman is expected to serve in such capacities for an indeterminate amount of
time and is expected to enter into a compensatory agreement, which will occur in
the near future.
In connection with Mr. Waggoner's departure, on October 6, 2022, the Company
entered into a Separation, Consulting and Release Agreement with Mr. Waggoner
(the "Separation Agreement"). The Separation Agreement becomes irrevocable seven
days after execution of the Separation Agreement and becomes effective on
October 13, 2022 (the "Effective Date"). Pursuant to the Separation Agreement,
the Company agreed to pay Mr. Waggoner a lump sum payment of $216,667 within
five business days of the Effective Date. In addition, Mr. Waggoner will be paid
for his earned but unpaid salary through the Separation Date in accordance with
the Company's payroll practices and reasonable business expenses incurred prior
to the Separation Date, as set forth on Exhibit A to the Separation Agreement.
Mr. Waggoner will be entitled to continued medical and health benefits at his
sole expense and retain his option to purchase 15,000 shares of common stock of
the Company and 23,000 restricted stock units previously granted to Mr.
Waggoner. The Separation Agreement includes mutual releases of claims, by Mr.
Waggoner in favor of the Company and certain Company Parties (as defined
therein) and by the Company in favor of Mr. Waggoner, and mutual
non-disparagement obligations on Mr. Waggoner and on the Company. Mr. Waggoner
remains subject to certain restrictive covenants, including any confidentiality,
non-compete, non-solicit, invention assignment, or similar agreement or
arrangement to which he is a party with any member of the Company Group and
Sections 5 through 7 of the Amended and Restated Executive Compensation
Agreement, dated May 8, 2022, between the Company and Mr. Waggoner. During the
twelve months immediately following the Separation Date (the "Consulting
Period"), Mr. Waggoner agreed to serve as a consultant to facilitate the orderly
transfer of work to other employees of the Company. In consideration for Mr.
Waggoner's consulting services, the Company will pay Mr. Waggoner $433,333,
payable in twelve installments at the end of each month of the Consulting Period
in arrears.
The foregoing summary of the Separation Agreement does not purport to be
complete and is subject to, and qualified in its entirety by, the full text of
the Separation Agreement, a copy of which is filed as Exhibit 10.1 to this
Current Report on Form 8-K and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On October 7, 2022, the Company issued a press release announcing the executive
transition discussed above in Item 5.02. A copy of the press release is
furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 7.01, including Exhibit 99.1,
will not be deemed "filed" for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the
liabilities under that Section and will not be deemed to be incorporated by
reference into any filing of the Company under the Securities Act of 1933, as
amended, or the Exchange Act, except as will be expressly set forth by specific
reference in such filing.
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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Number Description
10.1 Separation, Consulting and Release Agreement, dated October 6, 2022,
by and between PharmaCyte Biotech, Inc. and Kenneth L. Waggoner.
99.1 Press Release, dated October 7, 2022
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
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