Document:

svra-ex1039_618.htm

 

Exhibit 10.39

 

 

Badrul Chowdhury, MD, PhD

Transmitted via email to: badrulc@gmail.com 

Dear Badrul,

Savara Inc. (“Savara’’ or “Company’’) is extremely pleased to extend to you an offer of employment with our Company as Chief Medical Officer. This offer letter and the terms contained herein supersede all other communications verbal or written. Subject to your acceptance of the terms herein, we would expect that your employment with the Company start on November 15th, 2019. Your actual first date of employment will hereinafter be referred to as "Start Date".

In this position, you will report directly to the CEO, and you will assume the role of Chief Medical Officer at Savara, and will focus on the development and implementation of the company's growth strategy, and will also be a key support person to the commercial, corporate/business development, and R&D teams as a clinical expert, as well as oversee the regulatory approval process for our drug candidates. As part of the Company's external facing activities, you will participate in the Company's medical communications and publications activities, and interactions with investors, key opinion leaders, and other key external stakeholders. Performance of the duties will require travel, as necessary, to vendors and international offices of Savara. Your responsibilities may be adjusted from time to time in line with your performance, and growth of the company. A more detailed outline of your responsibilities (job description)  is attached to this letter.

As a valued Savara employee, you will receive a salary and other benefits specified below where Savara is your primary employer. You should note that the Company may modify job titles, wages and benefits from time to time as it deems necessary.

	
 
	
1.
	
Salary: Upon the commencement of your employment and your completion of requisite compliance and payroll documents, you will receive an annual salary of $525,000 (before applicable withholding and taxes) to be paid in semimonthly installments on the Company's regular paydays by direct deposit.

	
 
	
2.
	
Signing Bonus: Upon the commencement of your employment and your completion of requisite compliance and payroll documents, you will receive a one-time signing bonus of $150,000 (before applicable withholding and taxes) to be paid along with your first scheduled semimonthly salary (or as soon as practical thereafter). If you resign within eighteen (18) months of employment, you will be required to refund to the Company the full amount of your signing bonus. Additionally, subject to the approval of Savara's Board of Directors (the “Board’’) and as a material inducement to your accepting of employment with the Company, upon the commencement of your employment and your completion of requisite compliance and payroll documents, you will receive a one-time signing bonus grant of 200,000 RSUs, vesting in full after eighteen (18) months (i.e. cliff-vesting).

	
 
	
3.
	
Annual Bonus: Currently, Savara has a cash-based incentive plan (the “Bonus Award’’) in place for executives and employees. You will be eligible for the Bonus Award, which is currently targeted at 40% of your base salary, beginning in 2020. The amount of the Bonus Award is based upon achievement of performance objectives to be determined by the Board or the Compensation Committee of the Board (the “Compensation Committee’’) or CEO (with potential of up to 100% 

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bonus based upon material Company success, determined at the discretion of the Board or the Compensation Committee). For 2019, you may earn a bonus of up to $50,000 at the discretion of the Board, which would be paid in January 2020. You may also be eligible for other cash or equity bonuses from time to time as determined by the CEO and the Board, in their sole discretion. The terms and conditions of the Bonus Award and/or any other bonus programs, and whether you have met the eligibility objectives and earned the Bonus Award and/or bonuses related to other bonus programs will be determined by the Company. The Company reserves the right to modify, interpret, and/or apply the terms of the Bonus Award and/or bonuses related to other bonus programs in its sole discretion. Your eligibility for the Bonus Award and/or bonuses related to other bonus programs will be reviewed from time to time as part of the Company's normal compensation review process.

	
 
	
4.
	
Grant of Options: Subject to Board approval and as a material inducement to your accepting of employment with the Company, effective on your Start Date or as soon as practical thereafter, you will receive a grant of 300,000 options to purchase the Company's common stock. Such Options shall vest as to 1/16th of the total number of Options each quarter with vesting commencing on your Start Date, subject to your continued employment with the Company. The Options will be granted under and subject to the terms of the Company's 2015 Omnibus Incentive Plan (the “Incentive Plan’’) in the form of an Option Agreement. You will be eligible for additional equity incentives from time to time, based on performance, and as determined by the CEO and the Board, at their sole discretion.

	
 
	
5.
	
Vacation: You will be eligible for the Company's vacation/PTO plan and will be provided with three weeks of vacation time per calendar year (accumulating based on full-time employment). See Savara's Employee Handbook for complete policies on vacation/PTO.

	
 
	
6.
	
Health Care Plan and Other Benefits: You will be entitled to participate in the Company's health care, vision and dental plans, 401(k), and short-term and long-term disability plans, as well as receive paid holidays common to all employees as established by Savara policy. Note some programs require employment at Savara for up to three months prior to eligibility (e.g., participation in the Company's 401(k) plan).

	
 
	
7.
	
Travel and Other Expenses: You will be entitled to reimbursement of typical business expenses associated with pre-approved travel that are incurred in connection with the performance of your duties, against receipts or other appropriate written evidence of such expenditures, as required by the appropriate United States Internal Revenue Service regulations and the Company's standard policies and practices. In addition, you will be reimbursed for a Savara-approved cell phone plan and device, provided that you submit applicable receipts or other appropriate written evidence of such expenditures on a monthly basis. See Company's Employee Handbook for complete details.

	
 
	
8.
	
At-Will Employment: Subject to information in this section, your employment relationship with Savara is on an at-will basis as governed by Texas law. That is, even after accepting this employment offer, you will have the right to resign at any time, and the Company will have the right to end your employment relationship with the Company for any reason, with or without Cause, or for no reason subject to the below provisos. Of course, we hope everything works out for the best, but the Company wants to make sure that you understand that nothing in this letter or in any Company policy or statement (including any other written or verbal statements made to you during negotiations about working at Savara) is intended to or does create anything but an at-will employment relationship. Only the Company's CEO in collaboration with the Board may modify your at-will employment status, or guarantee that you will be employed for a specific period of time. Such modification must be in writing, signed by the CEO, and approved by the Board. If for any reason, including a Change in Control (as defined in Section 10.3 of the Incentive Plan), you are terminated by the Company (or the Company's successor) without Cause (as defined below), Savara will compensate you (1) twelve-months of your then current base salary less applicable taxes, (2) the portion of the Bonus Award, if any, that the Company, in its sole discretion, has 

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determined you have earned as of the last day of your employment (the "Termination Date") based on your achievement of goals established by the CEO, (3) reimbursement of any outstanding and reasonable business related expenses, (4) any accrued base salary as of the Termination Date, and (5) a one-time payment equal to the cost of three (3) months of health, vision, and dental benefits via Texas State Continuation coverage following the Termination Date. Additionally, if termination occurs related to a Change in Control, your Options will be treated as outlined under Section 10 of the Incentive Plan. Any and all payments noted in this paragraph are conditioned upon execution of a release of any and all claims against the Company in a form satisfactory to the Company. Also, Savara requires 30-day notice period should you decide to terminate your employment.

	
 
	
9.
	
Prior Employment/Third Party Information: We ask that, if you have not already done so, you disclose to the Company any and all agreements relating to your prior employment that may affect your eligibility to be employed by the Company or limit the manner in which you may be employed. It is the Company's understanding that any such agreements will not prevent you from performing the duties of your position and you represent that such is the case. Moreover, you agree that, during the term of your employment with the Company, you will not engage in any other employment, occupation, consulting, or other business activity directly related to the business in which the Company is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company. Similarly, you agree not to bring any third-party confidential information to the Company, including that of your former employer, and that you will not in any way utilize any such information in performing your duties for the Company. In addition, you agree that you will not disclose to any Savara employee, any confidential information or trade secrets of any former employer or other person which would violate your legal obligations to those parties. Performance of your duties at Savara will only require information and knowledge which is generally known and used by persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by Savara.

	
 
	
10.
	
Background Check: As a condition of this offer, you will be required to consent to a background investigation and reference check in accordance with applicable law. This background investigation and reference check may include an investigative consumer report, as defined by the Fair Credit Reporting Act (“FCRA’’), 15 U.S.C. 1681a. This investigation may also include a consumer report, as defined by the FCRA, 15 U.S.C. 1681a, which may include information bearing on your credit worthiness. This job offer is contingent upon a clearance of such a background investigation, and upon your written authorization to obtain a consumer report and/or investigative consumer report.

	
 
	
11.
	
Immigration Laws: For purposes of federal immigration law, you also will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided within three (3) business days of the effective date of your employment, or your employment relationship with the Company may be terminated.

	
 
	
12.
	
Proprietary Information and Inventions Agreement:  As a condition  of your employment  with the Company, you will be required to sign and comply with the Company's Proprietary Information and Inventions Agreement, which requires, among other provisions, the assignment of patent rights to any invention made during your employment at the Company, and non-disclosure of Company proprietary information. A copy of the Proprietary Information and Inventions Agreement is attached hereto. Please note that we must receive your signed Proprietary Information and Inventions Agreement before your first day of employment with the Company.

	
 
	
13.
	
Company Policies: As a Company employee, you will be expected to abide by the Company's rules and standards. Specifically, you will be required to sign an acknowledgment that you have read and that you understand the Company's policies which are included in the Employee Handbook attached hereto.

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In addition, this offer of employment is contingent upon approval by the Board. The terms and conditions of the offer reflected in this letter are subject to completion of our final reference and background checks or until the close of business on September 15th, 2019 unless revoked before then by the Company. Upon execution, this letter, together with the Employee Handbook and Proprietary Information and Inventions Agreement contains the entire agreement among the parties relating to your proposed employment with the Company and supersedes any previous agreements, including consulting agreements, communications or offers of any kind, written or verbal, between the parties. This offer letter will be governed by Texas law.

We have genuinely enjoyed our interactions to this point, and are excited about you joining the Savara team as a full-time employee. We all believe that you will continue to make a significant contribution to the success of the Company and are eager to have you onboard.

To signify your acceptance of this offer and the terms cited herein, please sign the letter below and return a copy to me along with the other employment documents described above.

With kind regards,

 

	
/s/ Rob Neville

	
Rob Neville

	
Date:
	
 
	
Aug 29, 2019

 

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Accepted and agreed:

	
 

	
/s/ Badrul Chowdhury

	
 

	
Badrul Chowdhury, MD, PhD

	
Date:
	
 
	
Sep 6, 2019

 

Enclosures:

 

Proprietary Information and Inventions Agreement Savara Inc. Employee Handbook

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Exhibit 4.12

DESCRIPTION OF COMMON STOCK 
The following description of our common stock and provisions of our restated certificate of incorporation, as amended, or restated certificate, and amended and restated by-laws are summaries. You should also refer to the restated certificate and the amended and restated by-laws. 
General 
Our restated certificate authorizes us to issue up to 33,333,333 shares of common stock, $0.001 par value per share.
Holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. An election of directors by our stockholders shall be determined by a plurality of the votes cast by the stockholders entitled to vote on the election. Holders of common stock are entitled to receive proportionately any dividends as may be declared by our board of directors, subject to any preferential dividend rights of any series of preferred stock that we may designate and issue in the future. 
In the event of our liquidation or dissolution, the holders of common stock are entitled to receive proportionately our net assets available for distribution to stockholders after the payment of all debts and other liabilities and subject to the prior rights of any outstanding preferred stock. Holders of common stock have no preemptive, subscription, redemption or conversion rights. There are no redemption or sinking fund provisions applicable to the common stock. The rights, preferences and privileges of holders of common stock are subject to and may be adversely affected by the rights of the holders of shares of any series of preferred stock that we may designate and issue in the future. 
Registration Rights 
Under the terms of a share purchase agreement with New Enterprise Associates 16, L.P., or NEA, we have granted NEA the right to require us to register 333,333 shares of our common stock under the Securities subject to specified limitations set forth in such share purchase agreement. We are not obligated to file a registration statement pursuant to this provision on more than two occasions. After registration pursuant to these rights, the registrable securities will become freely tradable without restriction under the Securities Act. NEA’s registration rights will terminate upon the earlier to occur of November 17, 2020 or the date on which NEA has sold all shares subject to NEA’s registration rights. 
Pursuant to the share purchase agreement, we are required to pay all registration expenses, including all registration, filing and printing fees, issuer counsel and accounting fees and expenses, costs and expenses associated with clearing the shares for sale under applicable Blue Sky laws, listing fees, expenses incurred by us in connection with any “road show,” and reasonable fees, charges and disbursements of counsel to NEA, but excluding underwriting discounts or commissions and fees with respect to the shares being sold. 
 
The share purchase agreement contains customary cross-indemnification provisions, pursuant to which we are obligated to indemnify NEA in the event of material misstatements or omissions in the registration statement attributable to us, and NEA is obligated to indemnify us for material misstatements or omissions in the registration statement attributable to NEA. 
Anti-Takeover Provisions 
Section 203 of the Delaware General Corporation Law 
We are subject to Section 203 of the DGCL, which prohibits a Delaware corporation from engaging in any business combination with any interested stockholder for a period of three years after the date that such stockholder became an interested stockholder, with the following exceptions: 

 
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	 	•	 	before such date, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;

 
												
	 	•	 	upon completion of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction began, excluding for purposes of determining the voting stock outstanding, but not the outstanding voting stock owned by the interested stockholder, those shares owned (i) by persons who are directors and also officers and (ii) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

 
												
	 	•	 	on or after such date, the business combination is approved by the board of directors and authorized at an annual or special meeting of the stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder.

In general, Section 203 defines a “business combination” to include the following: 
 
												
	 	•	 	any merger or consolidation involving the corporation and the interested stockholder;

 
												
	 	•	 	any sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder;

 
												
	 	•	 	subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;

 
												
	 	•	 	any transaction involving the corporation that has the effect of increasing the proportionate share of the stock or any class or series of the corporation beneficially owned by the interested stockholder; or

 
												
	 	•	 	the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits by or through the corporation.

In general, Section 203 defines an “interested stockholder” as an entity or person who, together with the person’s affiliates and associates, beneficially owns, or within three years prior to the time of determination of interested stockholder status did own, 15% or more of the outstanding voting stock of the corporation. 
Staggered Board 
Our restated certificate and by-laws divide our board of directors into three classes with staggered three year terms. In addition, our restated certificate and by-laws provide that directors may be removed only for cause and only by the affirmative vote of the holders of 75% of our shares of capital stock present in person or by proxy and entitled to vote. Under our restated certificate and by-laws, any vacancy on our board of directors, including a vacancy resulting from an enlargement of our board of directors, may be filled only by vote of a majority of our directors then in office. Furthermore, our restated certificate provides that the authorized number of directors may be changed only by the resolution of our board of directors, subject to the rights of any holders of preferred stock to elect directors. The classification of our board of directors and the limitations on the ability of our stockholders to remove directors, change the authorized number of directors and fill vacancies could make it more difficult for a third party to acquire, or discourage a third party from seeking to acquire, control of us. 
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Authorized but Unissued Shares 
The authorized but unissued shares of common stock are available for future issuance without stockholder approval, subject to any limitations imposed by the listing standards of any exchange on which our shares are listed. These additional shares may be used for a variety of corporate finance transactions, acquisitions and employee benefit plans. The existence of authorized but unissued and unreserved common stock could make more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise. 
Special Meeting of Stockholders; Advance Notice Requirements for Stockholder Proposals and Director Nominations; Stockholder Action 
Our restated certificate and restated by-laws provide that any action required or permitted to be taken by our stockholders at an annual meeting or special meeting of stockholders may only be taken if it is properly brought before such meeting and may not be taken by written action in lieu of a meeting. Our restated certificate and our restated by-laws also provide that, except as otherwise required by law, special meetings of the stockholders can only be called by the chairman of our board of directors, our chief executive officer or our board of directors. In addition, our restated by-laws establish an advance notice procedure for stockholder proposals to be brought before an annual meeting of stockholders, including proposed nominations of candidates for election to our board of directors. Stockholders at an annual meeting may only consider proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of our board of directors, or by a stockholder of record on the record date for the meeting who is entitled to vote at the meeting and who has delivered timely written notice in proper form to our secretary of the stockholder’s intention to bring such business before the meeting. These provisions could have the effect of delaying until the next stockholder meeting stockholder actions that are favored by the holders of a majority of our outstanding voting securities. These provisions also could discourage a third party from making a tender offer for our common stock because even if the third party acquired a majority of our outstanding voting stock, it would be able to take action as a stockholder, such as electing new directors or approving a merger, only at a duly called stockholders meeting and not by written consent. 
Super Majority Voting 
The DGCL provides generally that the affirmative vote of a majority of the shares entitled to vote on any matter is required to amend a corporation’s certificate of incorporation or by-laws, unless a corporation’s certificate of incorporation or by-laws, as the case may be, require a greater percentage. Our amended and restated by-laws may be amended or repealed by a majority vote of our board of directors or the affirmative vote of the holders of at least 75% of the votes that all of our stockholders would be entitled to cast in any election of directors. In addition, the affirmative vote of the holders of at least 75% of the votes that all of our stockholders would be entitled to cast in any election of directors is required to amend or repeal or to adopt any provisions inconsistent with certain of the provisions of our restated certificate. 
Exclusive Forum Selection 
Our restated certificate of incorporation provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for (1) any derivative action or proceeding brought on behalf of our company, (2) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers, employees or stockholders to our company or our stockholders, (3) any action asserting a claim arising pursuant to any provision of the General Corporation Law of the State of Delaware or as to which the General Corporation Law of the State of Delaware confers jurisdiction on the Court of Chancery of the State of Delaware, or (4) any action asserting a claim arising pursuant to any provision of our restated certificate or restated by-laws (in each case, as they may be amended from time to time) or governed by the internal affairs doctrine. This exclusive forum provision would not apply to suits brought to enforce any liability or duty created by the Securities Act or the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction. To the extent that any such claims may be based upon federal law claims, Section 27 of the Exchange Act creates exclusive federal jurisdiction over all suits brought to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder. Furthermore, Section 22 of the Securities Act creates 
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concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder. Although our restated certificate contains the choice of forum provision described above, it is possible that a court could rule that such a provision is inapplicable for a particular claim or action or that such provision is unenforceable. 
Transfer Agent and Registrar 
The transfer agent and registrar for our common stock is Computershare Trust Company, N.A., with offices at 250 Royall Street, Canton, Massachusetts 02021. 
Listing on Nasdaq 
Our common stock is listed on the Nasdaq Capital Market under the symbol “XFOR.” 
 

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