Document:

Exhibit 10.2

 

 

08/07/2014

 

Nitro Petroleum, Inc.

Mr. James Borem

624 W. Independence St.

STE. 101

Shawnee, OK 74804

 

Gentlemen:

 

As you are aware, Core Resource Management, Inc. ("Buyer") and Nitro Petroleum, Inc. (the "Company") have engaged in a Letter of Intent regarding the terms of an acquisition of the Company by Buyer (the "Proposed Transaction"). Although no definitive final agreements have been entered into regarding the Transaction, Buyer and the Company have concluded that it is in their mutual best interests to continue with due diligence and drafting of final merger agreements. Accordingly, Buyer and the Company hereby agree that commencing on the date hereof until 5:00 PM Eastern Standard Time on August 31, 2014 or such earlier time as Buyer and the Company shall mutually execute merger agreement (such period of time, the "Exclusivity Period"), Buyer and the Company shall continue to proceed on an exclusive basis the Proposed Transaction, including due diligence procedures, the negotiation of the terms thereof, and the definitive documentation regarding the same.

In consideration of the time, effort and expenses to be undertaken by Buyer in connection with the pursuit of the Proposed Transaction, and other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company hereby agrees that, during the Exclusivity Period, the Company shall not, and shall not authorize or permit any of its Representatives to, directly or indirectly:

		(i)	solicit, initiate or take any action to facilitate or encourage any inquiries or the making of any proposal from a person or group of persons other than Buyer and its affiliates that may constitute, or could reasonably be expected to lead to, an Alternative Transaction (as defined below);

		(ii)	enter into or participate in any discussions or negotiations with any person or group of persons other than Buyer and its affiliates regarding an Alternative Transaction;

		(iii)	furnish any non-public information relating to the Company or any of its subsidiaries, assets or businesses, or afford access to the assets, business, properties, books or records of the Company or any of its subsidiaries to any person or group of persons other than Buyer and its Representatives, in all cases for the purpose of assisting with or facilitating an Alternative Transaction; or

		(iv)	Enter into an Alternative Transaction or any agreement, arrangement or understanding, including, without limitation, any letter of intent, term sheet or other similar document, relating to an Alternative Transaction.

Immediately upon execution of this letter, the Company shall, and shall cause its Representatives to, terminate any and all existing discussions or negotiations with any person or group of persons other than Buyer and its affiliates regarding an Alternative Transaction.

As used herein, the term "Representatives" means a party's stockholders, affiliates, directors, officers, employees, agents, investment bankers, attorneys, accountants, consultants, advisors and other representatives.

As used herein, the term "Alternative Transaction" means any (i) direct or indirect acquisition of assets of the Company or any of its subsidiaries (including any voting equity interests of the Company's subsidiaries) equal to 15% or more of the fair market value of the Company's consolidated assets or to which 15% or more of the Company's net revenues or net income on a consolidated basis are attributable, (ii) direct or indirect acquisition of 10% or more of the voting equity interests of the Company, (iii) a new tender offer or exchange offer that if consummated would result in any persons beneficial ownership rising to over 10% or more of the voting equity interests of the Company, (iv) liquidation or dissolution (or the adoption of a plan of liquidation or dissolution) of the Company or the declaration or payment of an extraordinary dividend (whether in cash or other property) by the Company; in all cases of clauses (i)-(iv) where such transaction is to be entered into with any person or group of persons other than Buyer or its affiliates.

 

During the Exclusivity Period, the Company will conduct its business in the ordinary course, consistent with past practice, and will use its commercially reasonable efforts to maintain the value of its business as a going concern.  During the Exclusivity Period, the Company will not sell, license, or transfer and any material asset, except in the ordinary course of business and consistent with the past practices of the Company.

2

During the Exclusivity Period, the Company shall promptly notify Buyer of the receipt of any oral or written offer, indication of interest, proposal or inquiry relating to an Alternative Transaction, such notice to include the material terms thereof, including the identity of the person or group of persons involved. The Company shall promptly furnish Buyer with a copy of any written offer or other information that it receives relating to an Alternative Transaction and shall keep Buyer fully informed on a current basis of any modifications to such offer or information.

The parties hereto acknowledge that a breach of this letter would cause irreparable harm for which monetary damages would be only partial and inadequate remedy. Accordingly, the Company hereby agrees that Buyer may seek equitable relief in the event of any breach or threatened breach of this letter, including injunctive relief against any breach thereof and specific performance of any provision thereof, in addition to any other remedy to which Buyer may be entitled.

This letter shall be governed by and construed in accordance with the internal laws of the State of ARIZONA without giving effect to any choice or conflict of law provision or rule that would cause the application of Laws of any jurisdiction other than those of the State of ARIZONA.

This letter may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement.

(Signature Page to Follow)

3

If this letter accurately sets forth our understanding, kindly execute the enclosed copy of this letter and return it to the undersigned.

 

	
 

	
 

		
Very truly yours,

	 			
	
 

	
 

		
Core Resource Management, Inc.

	
 

	
 

		
 

	
 

	
 

	
 

		
By:

	
/s/James D. Clark

	
 

	
 

		
Name: Mr. James Clark

	
 

	
 

		
Title: CEO

	
 

	
 

		
 

	
 

	
ACCEPTED AND AGREED:

		
 

	
 

	 			
	
Nitro Petroleum, Inc.

		
 

	
 

		
 

		
 

	
 

	
By:

	
/s/James G. Borem

		
 

	
 

	
Name: Mr. James Borem

		
 

	
 

	
Title: CEO

		
 

	
 

 

 

4EX-10.1

 Exhibit 10.1 
  

 
 August 1, 2014 
 Adrian
Senderowicz 
 7 Park Pave, Unit 1 
 Somerville, MA 02144 

Dear Adrian: 
 On behalf of Ignyta, Inc. (the
“Company”), I am pleased to confirm our offer of employment to you for the position of Chief Medical Officer and Senior Vice President, Clinical Development and Regulatory Affairs, reporting directly to the Chief Executive Officer
of the Company. This letter sets out the terms of your offer of employment with the Company, which pending your acceptance will start on or before Thursday, August 14, 2014. 

You will be paid at a rate of $15,625.00 ($375,000.00 annually) (“Base Salary”) twice per month, less applicable tax and other withholdings.
An increase in your Base Salary will be considered in connection with the Company’s normal compensation review process for its executive officers. You may also be eligible for an annual bonus of up to 40% of your base salary, prorated
for days worked based on your hire date with respect to 2014, subject to the approval by the Board of Directors and achievement of corporate and individual performance goals, which shall be communicated to you within a reasonable time following the
start of your employment and within a reasonable time after new goals are adopted. On the first of the month following the start of your employment, you will also be eligible to participate in all applicable Company-wide benefit plans. 

The Company will also provide you with a signing bonus of $50,000.00 (the “Signing Bonus”), payable within the first month of your
employment. The Company will also pay directly to your previous employer, Sanofi, the amount owed by you to Sanofi related to your relocation to Massachusetts (the “Relocation Payment”), subject to a maximum amount of
$200,000. Both the Signing Bonus and the Relocation Payment will be grossed up for applicable taxes and other withholdings. Should you voluntarily leave the company other than for Good Reason within twenty four months of your employment
start date, you would be responsible for reimbursing the company a prorated portion of such amounts. For purposes of the preceding sentence, “Good Reason” shall mean a separation from employment with the Company as a result of your
resignation after one of the following conditions has come into existence: (a) a material reduction in your Base Salary; (b) a material reduction of your authority, position, responsibilities or duties; or (c) a relocation of your
principal workplace by more than 50 miles (other than a mutually-agreed relocation to San Diego). Notwithstanding the foregoing, a resignation for Good Reason will not be deemed to have occurred unless you give the Company written notice of the
condition within 30 days after the condition comes into existence specifying all relevant facts and the Company fails to remedy the condition within 30 days after receiving your written notice. 

  
 11095 Flintkote
Avenue, Suite D, San Diego, CA 92121 

 

 
  

 You will be granted a stock option under the Company’s 2014 Incentive Award Plan (the “Option
Plan”) exercisable for the purchase of two hundred fifty thousand (250,000) shares of Company common stock at an exercise price per share equal to the fair market value per share of the Company’s stock on the date of grant.
Your options will vest on the Company’s standard four-year schedule, and will be subject to the terms and conditions of the Plan and standard form of stock option agreement thereunder, which you will be required to sign as a condition of
receiving the option. 
 You will participate in the Company’s Severance and Change in Control Severance Plan (the “Severance Plan”) as a
Tier 2 Covered Employee; provided, that for purposes of Severance Benefits under Section 4 of the Severance Plan, you shall be entitled to the benefits of a Tier 1 Covered Employee. For purposes of this paragraph, capitalized terms that are not
otherwise defined in this offer letter shall have the meanings assigned to such terms in the Severance Plan. 
 As Chief Medical Officer and Senior Vice
President, Clinical Development and Regulatory Affairs, we understand that your primary residence will remain in Massachusetts. The mutual expectation is that you will average approximately one week every eight weeks in the San Diego office
(with in-person meetings with senior management and other Company personnel as and when such personnel travel to the East coast), and the Company will reimburse you for reasonable travel expenses. We will discuss any potential relocation assistance
as soon as it is a viable option for you. 
 In accordance with Company policy, your employment is contingent upon the successful verification of a
background check. Our Company adheres to a policy of employment-at-will that allows either party to terminate the employment relationship at any time for any reason. As a condition of your employment, you will be required to sign the enclosed
Employee Proprietary Information and Invention Assignment Agreement, and to provide the Company with documents establishing your identity and right to work in the United States. Those documents must be provided to the Company within three days after
your employment start date. 
 In the event of any dispute or claim relating to or arising out of our employment relationship or the termination of that
relationship (including, but not limited to, any claims of breach of contract, wrongful termination or age, sex, race, national origin, disability or other discrimination or harassment), you and the Company agree that all such disputes shall be
fully and finally resolved by binding arbitration conducted before a single neutral arbitrator pursuant to the then current rules for arbitration of employment disputes by the American Arbitration Association (available at www.adr.org or from
Human Resources) in San Diego, California. The arbitrator shall permit adequate discovery and is empowered to award all remedies otherwise available in a court of competent jurisdiction and any judgment rendered by the arbitrator may be entered by
any court of competent jurisdiction. The arbitrator shall issue an award in writing and state the essential findings and conclusions on which the award is based. By executing this letter, you and the Company are both waiving the right to a jury or
bench trial with respect to any such disputes. The Company shall bear the costs of the arbitrator, forum and filing fees. Each party shall bear its own respective attorney fees and all other costs, unless otherwise provided by law and awarded by the
arbitrator. 

  
 11095 Flintkote
Avenue, Suite D, San Diego, CA 92121 

 

 
  

 This offer letter, and the Employee Proprietary Information and Invention Assignment Agreement referred to
above, constitute the entire agreement between you and the Company regarding the terms and conditions of your employment, and supersede all prior negotiations, representations, or agreements between you and the Company. The provisions of this
agreement, including the “at will” employment and arbitration provisions, may only be modified by a specific, written agreement signed by you and the Chief Executive Officer of the Company. 

Adrian, we look forward to working with you at the Company. Please sign and date this letter on the spaces provided below to acknowledge your
acceptance of the terms of this offer letter at your earliest convenience on or before Friday, August 1, 2014. This letter agreement shall be governed and construed in accordance with the laws of the State of California, without regard
to conflicts of laws principles. If any provision of this letter agreement is found to be unenforceable, the remainder of this letter agreement will continue in full force and effect. This letter agreement may be executed in two or more
counterparts, via facsimile, or through e-mail exchange of executed PDF reproductions of this letter agreement. 
 Sincerely, 

 

			
	By:	 	/s/ Jonathan Lim, M.D.
		 	Jonathan Lim, M.D.
		 	Chairman and CEO
		 	 Ignyta, Inc.

 I agree to and accept employment with Ignyta, Inc. on the terms and conditions set forth in this offer letter. 

 

					
	By:	 	/s/ Adrian Senderowicz	    	Date: July 31, 2014
		 	    Adrian Senderowicz	    	

  
 11095 Flintkote
Avenue, Suite D, San Diego, CA 92121

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