outstanding equity awards (including such awards subject to performance criteria) such that 100% of such equity awards shall become fully vested and exercisable as of the date of his termination, provided, however, that the vesting of any performance-based awards shall be as if all applicable performance criteria were achieved at target levels, except as otherwise provided in the applicable award agreement. Additionally, in connection with Mr. Kastenmayer’s appointment as Interim Chief Executive Officer, on August 23, 2022, the Board approved certain adjustments to Mr. Kastenmayer’s compensation terms for such position, which includes an increase in base salary to $588,000 and an increase in target bonus amount to 50%. The adjustments to Mr. Kastenmayer’s compensation in relation to his appointment as Interim CEO will be prorated for time served.
Mr. Kastenmayer is also party to the Company’s standard form of indemnification agreement. The form of the amended and restated indemnification agreement was previously filed by the Company as Exhibit 10.1 to the Company’s Form 10-Q filed with the SEC on August 9, 2018 and incorporated by reference herein.
Appointment of Chief Business Officer
On August 23, 2022, the Board appointed Michael Hanley to the position of the Company’s Chief Business Officer (“CBO”). Mr. Hanley previously served as the Company’s Chief Commercial Officer since October 2019. Biographical information for Mr. Hanley is available in the Company’s proxy statement filed with the Securities and Exchange Commission on April 21, 2022, in connection with the Company’s 2022 annual meeting of stockholders, such information being incorporated herein by reference.
There are no arrangements or understandings between Mr. Hanley and any other persons, pursuant to which he was appointed as CBO of the Company, no family relationships among any of the Company’s directors or executive officers and Mr. Hanley 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.
On August 24, 2022, the Company also announced a restructuring resulting in an approximately 25% headcount reduction year-to-date. The Company also plans to realize additional cost savings by transitioning patients out of the ongoing extension studies of pegzilarginase in Arginase 1 Deficiency while it engages with the FDA on a regulatory path forward. The implementation of the restructuring plan will prioritize development of AGLE-177 and result in extending the Company’s cash runway into the fourth quarter of 2023.
This current report contains “forward-looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Examples of forward-looking statements include, among others, statements we make regarding our ability to achieve further cost-savings, the timing of announcements and updates relating to our clinical trials and related data, including the clinical data for our Phase 1/2 trial of AGLE-177 in Homocystinuria, the timing and success of our clinical trials and related data, the timing and expectations for regulatory submissions and approvals, including the MAA for pegzilarginase in Europe, our ability to obtain regulatory approval for, and commercialize, pegzilarginase, recognize milestone and royalty payments from our agreement with Immedica, our ability to enroll patients into our clinical trials, the expected impact of the COVID-19 pandemic on our operations and clinical trials, success in our collaborations, the length of time that we believe our existing cash resources will fund operations, the potential addressable markets of our product candidates and the potential therapeutic benefits and economic value of our lead product candidate or other product candidates. Further information on potential risk factors that could affect our business and its financial results are detailed in our most recent Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed with the Securities and Exchange Commission (SEC), and our other reports as filed with the SEC. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
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