Document:

exv10w18

 

Exhibit 10.18

February 4, 2004

PERSONAL AND CONFIDENTIAL

Jim Shaffer

8905 Barleymoor Drive

Raleigh, NC 27615

Dear Jim:

     On behalf of Prestwick Pharmaceuticals, Inc. (the “Company”), it gives me great pleasure to
offer you the position of Senior Director, Commercial Operations of Prestwick Pharmaceuticals. You
have the qualities that distinguish future leaders: vision, intelligence, humility, a bias to
action, and a desire to make a difference. We believe that your highly relevant experience will add
substantially to the team, contribute greatly to the ultimate success equation, and provide the
Company with the leadership and vision that you have previously demonstrated. The management team
and I are without exception extremely enthusiastic about your accepting this offer.

This letter embodies the terms of the offer of employment (“the Agreement”) with you:

     1. Employment Duties. You shall devote your full time, ability, attention, energy and
skills solely and exclusively to performing all duties customarily associated with your position,
and as assigned or delegated to you by the Company. You will report to the Chief Commercial
Officer.

     2. Start Date. If you accept this offer, your employment with the Company shall begin
no later than April 1, 2004 (your “Start Date”). You hereby acknowledge that the terms of this
offer letter, and your performance hereunder, are not inconsistent with and will not breach any of
your contractual obligations, expressed or implied, to any third party.

     3. Salary. Upon employment as Senior Director of Commercial Operations, you shall be
compensated at a rate of $175,000 per year, to be paid per the Company’s typical payroll schedule.
Your salary will be reviewed annually by myself, the CEO, and Compensation Committee of the Board
of Directors. You will also be eligible for a cash bonus and/or stock options bonus plan to be
agreed by you, providing an annual performance bonus of up to 40% of your base salary. The Company
shall withhold and deduct all federal and state income, social
security and disability taxes as required by applicable laws. The Company may modify
compensation and benefits at any time, as permitted by law.

 

 

     4. Stock Option. Upon employment as Senior Director, Commercial Operations you will be
granted a stock option to purchase 100,000 shares of Common Stock of the Company pursuant to the
Company’s 2003 Equity Incentive Plan (the “Plan”), subject to approval of the BOD (the “Option”).
If the BOD does not approve the Option, you may resign immediately while still being entitled to
severance equivalent to one-half of year’s (6 months) salary. The exercise price for the Option
will be equal to the fair market value of the Company’s Common Stock at the time of grant. The
Option will vest over a four-year period, with 25% of the options vesting on the one-year
anniversary of your Start Date, and 1/36 of the balance of the options vesting on the last day of
each month thereafter. Your stock options will be governed by the terms of the Plan and the
Company’s standard form of stock option agreements, which you will be required to execute as a
condition of grant.

     5. Vacation, Holidays, Sick Leave, and Additional Benefits. You will be entitled to
15 days of paid vacation, and Paid Time Off and holidays as per standard Company benefits. The
Company offers a comprehensive benefits program for its employees, for which you are eligible.
Benefits include company paid medical insurance and dental insurance and 401K plan. You shall also
be entitled to reimbursement by the Company for such customary, ordinary and necessary business
expenses as are incurred by you in the performance of your duties and activities associated with
promoting and maintaining the business of the Company.

     7. Acceleration of Vesting. In the event of an Asset Transfer or Acquisition (each as
defined in the Company’s Amended and Restated Certificate of Incorporation) during your employment,
and if one of the following events occurs within twelve (12) months following such Asset Transfer
or Acquisition: (i) you are terminated without “Cause” (as defined below); (ii) the principal place
of the performance of your responsibilities and duties is changed to a location outside of a forty
(40) mile radius from your then current principal place of residence; or (iii) there is a
substantial reduction in your responsibilities, duties, or base pay that has not been cured within
thirty (30) days after written notice from you of such event, then the Option shall immediately
become fully vested upon such event.

     8. Proprietary Rights and Confidentiality. As a condition of your employment with the
Company, you shall execute, contemporaneously with the execution of this agreement, the Proprietary
Information, Non-Solicitation, and Invention Assignment Agreement and incorporated herein by this
reference. This agreement must be signed prior to initiation of employment. You will be expected to
abide by Company rules and regulations. In your work for the Company, you will be expected not to
use or disclose any confidential information, including trade secrets, of any former employer or
other person to whom you have an obligation of confidentiality. Rather, you will be expected to use
only that information 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 the Company. You also agree that you
will not bring onto Company premises any unpublished documents or property belonging to any former
employer or other person to whom you have an obligation of confidentiality.

 

 

     9. At Will Employment. The Company believes that the best work environment is one
where both you and the Company voluntarily agree to work together. Therefore, your employment with
the Company is “at-will” which means that either you or the Company may terminate the employment
relationship at any time for any reason, with or without cause or advance notice.

     10. Severance. In the event that your employment with the Company is terminated by the
Company without “Cause” (as defined below), subject to your compliance with the non-competition
provisions of the attached Proprietary Information, Inventions, and Non-Competition Agreement, and
upon your execution of a release in a form reasonably satisfactory to the Company, you will be
entitled to receive a severance in the form of payments at your then current base salary for a
period of six months. Any severance payment paid to you under this Section 9 will be subject to
applicable tax withholding and can be paid, at the Company’s option, periodically in accordance
with the Company’s normal payroll. The severance payment you receive under this paragraph shall be
in lieu of any further payments to you. Being terminated for “Cause” shall specifically mean, (i)
conviction of a felony or any crime involving moral turpitude or dishonesty; (ii) participation in
a fraud or act of dishonesty against the Company; (iii) willful breach of your duties to the
Company or failure to follow lawful directions of the CEO or Board of Directors, in either case if
such breach or failure has not been cured within thirty (30) days after written notice from the
Company’s CEO or Board of Directors of such event; (iv) intentional and material damage to the
Company’s property; or (v) material breach of the attached Proprietary Information, Inventions and
Non-Competition Agreement.

     11. Disputes. While the Company hopes in each instance that its employment
relationships will be free of controversy, we are aware that disputes sometimes do arise. In the
event any dispute arises between you and the Company or you and any employee of the Company, then,
to the extent permitted by law, it shall be settled exclusively by binding arbitration before a
single arbitrator in accordance with the Employment ADR Rules of the American Arbitration
Association. The arbitrator shall be appointed by both parties to this Agreement, and shall be a
person independent of the parties. If the parties are unable to agree on the arbitrator within a
reasonable period of time, then they shall apply to the local chapter of American Arbitration
Association, who will make such appointment according to their rules and the requirements of this
Agreement. The arbitrator’s decision shall be final and binding upon the parties, and may be
entered and enforced in any court of competent jurisdiction by either of the parties. The
arbitrator shall have the power to grant temporary, preliminary and permanent relief, including
without limitation, injunctive relief and specific performance. The Company will pay the direct
costs and expenses of the arbitration. You and the Company are responsible for your respective
attorneys’ fees incurred in connection with enforcing this offer letter; however, you and the
Company agree that, except as may be prohibited by law, the arbitrator may, in his or her
discretion, award reasonable attorneys’ fees to the prevailing party.

     This Agreement, together with the Employee Proprietary Information, Inventions,
Non-Competition and Non-Solicitation Agreements, contain the entire agreement between you and the
Company regarding the terms of your employment and supersedes all prior and contemporaneous
agreements or understandings with respect thereto. If you wish to accept this offer of employment,
please sign in the space provided below. By so signing, you acknowledge

 

 

that you have received no inducements or representations other than those set forth in this letter,
which caused you to accept this offer of employment. This offer expires at 8pm, EDT, on February 9,
2004.

     I look forward to your favorable reply, and to working together to build a significant
enterprise for our investors, delivering life changing therapies to patients, and to having fun
again.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	By:  	 	 
	 	 	David Cory, R.Ph. 	 
	 	 	Chief Commercial Officer

Prestwick Pharmaceuticals, Inc. 	 
	 

I have read this offer and I understand and accept its terms:

	 	 	 
	 

	 	 
	James P. Shaffer

	 	Dateexv10w19

 

Exhibit 10.19

Prestwick Pharmaceuticals, Inc.

1825 K Street NW, Suite 1475

Washington, DC 20006

November 1, 2004

PERSONAL AND CONFIDENTIAL

William H. Washecka

16617 Harbour Town Drive

Silver Spring, MD 20905

Dear Bill:

     On behalf of Prestwick Pharmaceuticals, Inc. (the “Company”), it gives me great pleasure to
offer you the position of Chief Financial Officer (CFO), Prestwick Pharmaceuticals. You have the
qualities that we seek: intelligence, humility, a bias to action, and a desire to make a
difference. We believe that your highly relevant experience will add substantially to the senior
management team, contribute greatly to the ultimate success equation, and provide the Company
with the leadership that you have previously demonstrated. The management team and I are without
exception extremely enthusiastic about your accepting this offer.

This letter embodies the terms of the offer of employment (“the Agreement”) with you:

     1. Employment Duties. You shall devote your full time, ability, attention, energy and
skills solely and exclusively to performing all duties customarily associated with your position,
and as assigned or delegated to you by the Company. You will report to the President and Chief
Operating Officer .

     2. Start Date. If you accept this offer, your employment with the Company shall begin
November 8, 2004 (your “Start Date”). You hereby acknowledge that the terms of this offer letter,
and your performance hereunder, are not inconsistent with and will not breach any of your
contractual obligations, expressed or implied, to any third party.

     3. Salary. Upon employment as CFO, you shall be compensated at a rate of $225,000 per
year, to be paid per the Company’s typical payroll schedule. Your salary will be reviewed annually
by myself, the CEO, Executive Chairman of the Board and Compensation Committee of the Board of
Directors. The Company shall withhold and deduct all federal and state income, social security and
disability taxes as required by applicable laws. The Company may modify compensation and benefits
at any time, as permitted by law.

 

 

     4. Stock Option. Upon employment as CFO, you will be granted a stock option to purchase
800,000 shares of Common Stock of the Company pursuant to the Company’s 2003 Equity Incentive Plan
(the “Plan”), subject to approval by the BOD (the “Option”). The exercise price for the Option will
be equal to the fair market value of the Company’s Common Stock at the time of grant, post closing
Series B financing. The Option will vest over a four-year period, with 25% of the options vesting
on the one-year anniversary of your Start Date, and 1/36 of the balance of the options vesting on
the last day of each month thereafter. Your stock options will be governed by the terms of the Plan
and the Company’s standard form of stock option agreements, which you will be required to execute
as a condition of grant.

     5. Vacation, Holidays, Sick Leave, and Additional Benefits. You will be entitled to
15 days of paid vacation, and Paid Time Off and holidays as per standard Company benefits. The
Company offers a comprehensive benefits program for its employees, for which you are eligible.
Benefits include company paid medical insurance and dental insurance and 401K plan. You shall also
be entitled to reimbursement by the Company for such customary, ordinary and necessary business
expenses as are incurred by you in the performance of your duties and activities associated with
promoting and maintaining the business of the Company.

     6. Acceleration of Vesting. In the event of an Asset Transfer or Acquisition (each as
defined in the Company’s Amended and Restated Certificate of Incorporation) during your employment,
and if one of the following events occurs within twelve (12) months following such Asset Transfer
or Acquisition: (i) you are terminated without “Cause” (as defined below); (ii) the principal place
of the performance of your responsibilities and duties is changed to a location outside of a forty
(40) mile radius from your then current principal place of residence; or (iii) there is a
substantial reduction in your responsibilities, duties, or base pay that has not been cured within
thirty (30) days after written notice from you of such event, then the Option shall immediately
become fully vested upon such event.

     7. Proprietary Rights and Confidentiality. As a condition of your employment with the
Company, you shall execute, contemporaneously with the execution of this agreement, the Proprietary
Information, Non-Solicitation, and Invention Assignment Agreement and incorporated herein by this
reference. This agreement must be signed prior to initiation of employment. You will be expected to
abide by Company rules and regulations. In your work for the Company, you will be expected not to
use or disclose any confidential information, including trade secrets, of any former employer or
other person to whom you have an obligation of confidentiality. Rather, you will be expected to use
only that information 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 the Company. You also agree that you
will not bring onto Company premises any unpublished documents or property belonging to any former
employer or other person to whom you have an obligation of confidentiality.

     8. At Will Employment. The Company believes that the best work environment is one
where both you and the Company voluntarily agree to work together. Therefore, your employment with
the Company is “at-will” which means that either you or the Company may

 

 

terminate the employment relationship at any time for any reason, with or without cause or advance
notice.

     9. Disputes. While the Company hopes in each instance that its employment
relationships will be free of controversy, we are aware that disputes sometimes do arise. In the
event any dispute arises between you and the Company or you and any employee of the Company, then,
to the extent permitted by law, it shall be settled exclusively by binding arbitration before a
single arbitrator in accordance with the Employment ADR Rules of the American Arbitration
Association. The arbitrator shall be appointed by both parties to this Agreement, and shall be a
person independent of the parties. If the parties are unable to agree on the arbitrator within a
reasonable period of time, then they shall apply to the local chapter of American Arbitration
Association, who will make such appointment according to their rules and the requirements of this
Agreement. The arbitrator’s decision shall be final and binding upon the parties, and may be
entered and enforced in any court of competent jurisdiction by either of the parties. The
arbitrator shall have the power to grant temporary, preliminary and permanent relief, including
without limitation, injunctive relief and specific performance. The Company will pay the direct
costs and expenses of the arbitration. You and the Company are responsible for your respective
attorneys’ fees incurred in connection with enforcing this offer letter; however, you and the
Company agree that, except as may be prohibited by law, the arbitrator may, in his or her
discretion, award reasonable attorneys’ fees to the prevailing party.

     10. Condition of Employment. Permanent employment will be predicated on passing a
physical exam with the physician of your choice.

     This Agreement, together with the Employee Proprietary Information, Inventions,
Non-Competition and Non-Solicitation Agreements, contain the entire agreement between you and the
Company regarding the terms of your employment and supersedes all prior and contemporaneous
agreements or understandings with respect thereto. If you wish to accept this offer of employment,
please sign in the space provided below. By so signing, you acknowledge that you have received no
inducements or representations other than those set forth in this letter, which caused you to
accept this offer of employment. This offer expires at 8pm, EDT, on November 7, 2004.

     I look forward to your favorable reply, and to working together to build a significant
enterprise for our investors, delivering life changing therapies to patients, and to having fun.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	By:  	 	 
	 	 	David Cory, R.Ph. 	 
	 	 	President and Chief Operating Officer

Prestwick Pharmaceuticals, Inc. 	 

 

 

	 	 	 	 	 

I have read this offer and I understand and accept its terms:

	 	 	 
	 

	 	 
	William H. Washecka

	 	Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]