Document:

ex10-7.htm

 

Exhibit 10.7

 

[OSI LETTERHEAD]

 

April 1, 2010

Dr. Angela Davies

Vice President, Clinical Research

Dear Angela:

It is my pleasure to confirm your promotion to Senior Vice President and Chief Medical Officer, Oncology, effective today, of OSI Pharmaceuticals, Inc. (“OSIP”).  In this position you will now report to me.  The grade for this position is a 12 and your salary will increase, also effective today, to an annual rate of $350,000.

In addition, in the event that there is a “Change in Control” of OSIP and within 12 months following such Change in Control either (a) your employment is terminated by OSIP (or a successor) without “Cause” or (b) you terminate your employment with “Good Reason” (terminations following a Change in Control described in clause (a) or (b) being referred to herein as a “Severance”),

	  	
(i)

	
you will be entitled to a lump sum cash payment as soon as practicable but in no event later than 10 days after the date on which you have incurred a Severance (the “Severance Date”) equal to (A) one times (1x) your annual base salary (immediately prior to the Change in Control or immediately prior to your Severance Date, whichever is higher) plus (B) a pro-rated bonus in respect of the fiscal year in which the Change of Control occurs for the period up to and including the Severance Date, based on 100% of Target (as defined in OSIP’s compensation program) plus (C) any accrued but previously unpaid annual base salary and any accrued vacation pay through the Severance Date;

	  	  	  
	  	
(ii)

	
for a period of 12 months following the Severance Date, OSIP will, at its sole expense, provide to you and your eligible dependents group medical and dental benefits substantially similar to the benefits provided to you under the OSIP group medical and dental plans in which you were eligible to participate immediately prior to the Severance Date or, if more favorable to you, immediately prior to the Change in Control. The coverage period for purposes of the group health continuation requirements of Section 4980B of the Internal Revenue Code (commonly referred to as the COBRA continuation period) will be treated as commencing on the date immediately following the 12-month period referred in this section; and

	  	  	  

  

  

  

	  	
(iii)

	
 the vesting of all unvested equity or equity based awards held by you at the time of such Severance, including stock options and RSU’s and, for the avoidance of doubt, any equity,  equity-based awards or other benefits of either OSIP or a successor into which unvested equity of OSIP held by you at the time of a Change in Control is converted in connection with the Change in Control, will accelerate and be immediately exercisable or payable, as the case may be, immediately prior to such Severance.   This provision supersedes the provisions regarding the same subject in the agreements evidencing your grants of stock options and RSU’s made in December 2009.

As an additional relocation benefit in connection with OSIP’s consolidation of its US facilities in Ardsley, NY, you will receive a payment of $100,000 on the later of December 31, 2010 or the date of closing of your purchase of a dwelling in and around Ardsley, NY, provided that you are still employed by OSIP or a successor on such date. In the event that you experience a Severance prior to December 31, 2010, you will receive this $100,000 payment at the time of such Severance provided that you have closed on the purchase of the dwelling described above prior to the date of the Severance.

 

For purposes of this letter agreement, the terms Change in Control, Cause and Good Reason (and the defined terms included in such definitions) shall have the meaning set forth on Appendix A hereto. In the event that any of the payments referenced herein must be delayed so as to avoid the imposition of additional taxes upon you pursuant to the operation of Section 409A of the Internal Revenue Code of 1986, as amended, such payments shall be delayed until the date which is six months and one day following a Severance.

  

  

  

Angela, I congratulate you on this achievement and trust you will meet the challenges of your new position with great success.  If you are in agreement with this letter, please sign both copies of this letter and return one copy to Amy Sheehan in the enclosed envelope.  One copy is for your records.

Sincerely,

/s/ Colin Goddard

Colin Goddard, Ph.D.

Chief Executive Officer

	
Accepted by:

	
/s/ Angela Davies

	  
	  	
Angela Davies

	  

Date: _______________________

  

  

  

APPENDIX A – APPLICABLE DEFINITIONS

“Affiliate” shall mean, with respect to any individual or entity, any other individual or entity who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, such individual or entity.

“Board” shall mean the Board of Directors of OSIP.

"Cause" shall mean that you have: (a) willfully and continually failed to substantially perform, or been willfully grossly negligent in the discharge of, your duties to OSIP or any of its subsidiaries (in any case, other than by reason of a disability, physical or mental illness or analogous condition), which failure or negligence continues for a period of 10 business days after a written demand for performance is delivered to you by the Board, which specifically identifies the manner in which the Board believes that you have not substantially performed, or been grossly negligent in the discharge of, his or her duties; (b) committed or engaged in an act of theft, embezzlement or fraud, or committed a willful and material breach of confidentiality with respect to OSIP or any of its subsidiaries or a willful unauthorized disclosure or use of inside information, customer lists, trade secrets or other confidential information of OSIP or any of its subsidiaries; (c) willfully breached a fiduciary duty, or willfully and materially violated any other duty, law, rule, regulation or policy of OSIP or any of its subsidiaries; or (d) been convicted of a felony or a misdemeanor with respect to which fraud or dishonesty is a material element.  No act or failure to act on your part shall be deemed "willful" unless done, or omitted to be done, by you not in good faith or without reasonable belief that your act or failure to act was in the best interests of OSIP.

A "Change in Control" shall be deemed to mean the first of the following events to occur after the date hereof:

(a)           The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a "Person")) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either (1) the then-outstanding shares of common stock of OSIP (the "Outstanding Company Common Stock") or (2) the combined voting power of the then-outstanding voting securities of OSIP entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities"); provided, however, that, for purposes of this clause (a), the following acquisitions shall not constitute a Change in Control; (A) any acquisition directly from OSIP, (B) any acquisition by OSIP, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by OSIP or any Affiliate of OSIP or a successor, or (D) any acquisition by any entity pursuant to a transaction that complies with clause (c)(1) or (c)(2) below;

(b)           Individuals who, as of the date hereof, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by OSIP's shareholders, was approved by a vote of at least two-thirds of

  

  

  

the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

(c)           The consummation of a merger or consolidation of OSIP or any direct or indirect subsidiary of OSIP with any other corporation, other than (1) a merger or consolidation which results in the directors of OSIP immediately prior to such merger or consolidation continuing to constitute at least a majority of the board of directors of OSIP, the surviving entity or any parent thereof or (2) a merger or consolidation effected to implement a recapitalization of OSIP (or similar transaction) in which no Person acquires beneficial ownership, directly or indirectly, of securities of OSIP (not including in the securities beneficially owned by such Person any securities acquired directly from OSIP) representing 50% or more of the Outstanding Company Common Stock or the Outstanding Company Voting Securities; or

(d)           Shareholders of OSIP approve a plan of complete liquidation or dissolution of OSIP or there is consummated an agreement for the sale or disposition by OSIP of all or substantially all of OSIP 's assets, other than a sale or disposition by OSIP of all or substantially all of OSIP 's assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by shareholders of OSIP in substantially the same proportions as their ownership of OSIP immediately prior to such sale.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

“Good Reason” shall mean (i) a material adverse alteration in the nature or status of your responsibilities with OSIP or any subsidiary thereof from those in effect immediately prior to the Change in Control, (ii) a reduction in your salary or target bonus opportunity from those in effect immediately prior to the Change in Control, or (iii) a relocation of your principal place of business of more than 35 miles; provided that the relocation of your work location to Ardsley, New York which is planned as of the date hereof shall not constitute Good Reason hereunder.isdr_ex101.htm

Back to 8-K

EXHIBIT 10.1

 SETTLEMENT AND RELEASE AGREEMENT

            THIS SETTLEMENT AGREEMENT AND RELEASE (“Agreement”) is entered into, effective the 31st day of March 2010 (the “Effective Date”), by and between Issuer Direct Corporation, a Delaware corporation (“Issuer Direct”) and Edward Gistaro, an individual (“Gistaro”).  Issuer Direct and Gistaro are referred to in this Agreement individually as the “Party” or collectively as the “Parties.”

 

1.          Pursuant to an unsecured note payable issued on November 16, 2007, Issuer Direct owes to Gistaro $29,833, including all principal and accrued but paid interest (“Settled Debt”). Issuer Direct and Gistaro desire to settle the Settled Debt pursuant to the terms and conditions of this Agreement.

 

2.          Issuer Direct agrees to issue to Gistaro 229,485 shares of the common stock, par value $.001 per share, of Issuer Direct (the “Shares”), upon the execution of this Agreement in settlement of the Settled Debt. Upon issuance of the Shares to Gistaro, the Shares shall be “restricted securities”, as that term is defined under Rule 144 of the Securities Act of 1933, as amended (the “Securities Act”) and may not be sold or otherwise transferred unless the Shares have been registered with the Securities and Exchange Commission (the “SEC”) in the opinion of counsel other than from Gistaro reasonably satisfactory to Issuer Direct, an exemption from the registration requirements under the Securities Act is available. Gistaro understands and acknowledges that Issuer Direct makes no representations or warranties regarding the future price of the Shares, the current or future value of the Shares, or its current business, operations or financial condition or prospects and, except as expressly set forth in this Agreement, Gistaro has not relied on any representations or warranties from Issuer Direct or its representatives in any manner whatsoever. Gistaro represents and warrants to Issuer Direct that he is an “accredited investor”, as such term is defined under Rule 501(a)(3) of the Securities Act, they are acquiring the Shares for their own account and for investment purposes, they have no present intention to distribute the Shares publicly, and they have the financial sophistication and knowledge to understand the risk of acceptance of the Shares in cancellation of the Advance and can risk an entire loss of their investment in the Shares.

 

3.          In consideration of the performance of Issuer Direct described in Paragraph 3, above, Gistaro, on behalf of itself and its successors, assigns, members, managers, officers, employees, agents, and representatives hereby releases and forever discharges, Issuer Direct, together with its successors, assigns, directors, officers, agents, employees, and representatives, from any and all actions, causes of action, claims, liability, demands, damages, costs, and expenses of every kind whatsoever, in law or in equity, known or unknown, contemplated, accrued, existing or not yet mature, which Gistaro has or may have as of the Effective Date relating specifically to the Settled Debt.  This paragraph shall not discharge Issuer Direct from any obligations arising out of this Agreement.

 

4.          The Parties represent that they have made no assignment and will make no assignment of the actions, causes of action, or claims released herein.

 

5.          It is expressly understood that any action by any Party in connection with this Agreement is not, and shall not be construed as, an admission of liability; rather, any such actions are made and done only as part of this settlement and release of disputed claims.

 

6.          Each undersigned Party acknowledges that: (1) the Party has read this Agreement fully and carefully before signing it; (2) the Party has consulted with or has had the opportunity to consult with an attorney regarding the legal effect and meaning of this Agreement and all of its terms and conditions, and that the Party is aware of the contents of this Agreement and its legal effects; (3) the Party has had the opportunity to make whatever investigation or inquiry that the Party deems necessary or appropriate in connection with the subject matter of this Agreement; (4) the Party is of sound mind and is executing this Agreement voluntarily and free from any undue influence, coercion, duress, or fraud of any kind; and (5) the Party is waiving and releasing all claims against the other Party as provided herein knowingly and voluntarily.

 

7.          This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina.

 

8.          The Parties agree, to the extent permitted by law, that any and all disputes arising from or related to this Agreement shall be settled exclusively by binding arbitration with the Judicial Arbiter Group, Inc. in Cary, North Carolina.  The arbitration shall be based on the substantive laws of the State of North Carolina.  The arbitrator shall order, to the extent permitted by law, that disclosures shall be made and discovery shall be permitted in a manner generally comparable to that prescribed by the North Carolina Rules of Civil Procedure, and the North Carolina Rules of Evidence shall apply.   Judgment entered upon the award by the arbitrator may be entered in any court having jurisdiction thereof.  The decision of the arbitrator shall be in writing and shall include an explanation for the decision.  The prevailing party, if any, as determined by the arbitrator, shall be awarded all costs and fees, including, without limitation, reasonable attorneys’ fees and the costs and fees of arbitration.

 

9.          It is expressly understood and agreed that the execution and performance of this Agreement is in full accord and satisfaction of all demands between the Parties as of the Effective Date of this Agreement.  This Agreement shall be binding and inure to the benefit of the Parties and their successors and assigns.

 

10.        The Parties acknowledge that this Agreement contains the entire agreement and understanding between the Parties relating to the subject matter hereof, and that this Agreement merges and supersedes all prior discussions and understandings between the Parties relating to said subject matter.  The Parties confirm that no promise or inducement not expressed in the written terms of this Agreement has been made to the other.  In entering into this Agreement, the Parties are not relying upon any statement or representation not contained in this Agreement made by any other Party, the Party’s counsel, partners, directors, managers, members, officers, employees, agents, or any other person representing either of the Parties concerning the nature, severity, extent, or consequences of any injuries, damages, losses, costs, and claims of any Party hereto and any liability therefor.

 

 

  

  

  

 

11.        Whenever possible, each provision of this Agreement shall be interpreted in a manner as to be valid under existing law.  A finding of invalidity as to any provision of this Agreement or any portion thereof, shall void only that provision or portion and no other, and this Agreement shall be interpreted as if it did not contain such invalid provision or portion.

12.        The Parties agree to keep the terms of this Agreement and any earlier discussions and correspondence relating to this Agreement confidential.  The Parties shall not disclose or discuss the terms of this Agreement with any other person or entity.  Provided, however, that the Parties may disclose or discuss the terms of this Agreement with legal and accounting professionals, in connection with the performance of professional services, who have a need to know such terms in connection with the performance of professional services, or as may be required by state or federal law.

 

13.        The Parties shall perform any additional lawful acts, including the execution of additional agreements, as are reasonably necessary to effectuate the purposes of this Agreement.

 

14.        This Agreement may be signed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

 

15.        This Agreement may be executed by exchange of facsimile copies. The facsimile copies showing the signatures of the Parties shall constitute originally signed copies of the Agreement requiring no further execution.

 

 

[Signature Page Follows]

  

  

  

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

 

	 	Issuer Direct Corporation	 
	 	 	 	 
	
March 31, 2010

	
By: 

	/s/ Brian R. Balbirnie	 
	 	 	Brian R. Balbirnie	 
	 	 	Chief Executive Officer	 
	 	 	 	 

	 	 	 
	 	 	 	 
	

March 31, 2010

	
By: 

	/s/ Edward Gistaro	 
	 	 	Edward Gistaro	 
	 	 	Director

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