Document:

srpt-ex104_15.htm

Exhibit 10.4

 

Friday, February 3, 2017

 

Catherine Stehman-Breen

Home Address:  REDACTED

 

Dear Catherine:

 

On behalf of Sarepta Therapeutics, Inc. (“Sarepta” or the “Company”), it is a great pleasure to extend you this offer of employment as Chief Medical Officer in Cambridge, MA effective on a date agreed upon following your acceptance of this offer ( “Hire Date”), reporting to Edward M. Kaye, Chief Executive Officer. 

 

Base Salary. 

In this position, you will earn an annual base salary of $405,000, subject to applicable taxes and withholdings, which will be paid on a bi-weekly basis. 

 

Future Salary Increases. 

If you join Sarepta between January 1 and September 30, you will be eligible for a pro-rated merit increase for the next calendar year’s Annual Compensation Review process. The Annual Compensation Review process generally takes place in the first quarter of the calendar year. Salary merit increases, if any, will be awarded at the Company’s discretion on the basis of your performance, and will be pro-rated.    

 

Annual Bonus Program. 

During your employment, you will also be eligible to participate in Sarepta’s annual bonus program. The target bonus opportunity for your position is 40% of your annual base salary, with the actual amount of such bonus, if any, being determined by the Company in its sole discretion, based on your performance and that of the Company against goals established by the Board.  You must commence your employment by September 30 in order to be eligible for a bonus for the calendar year during which you were hired. If you join the Company between January 1 and September 30, you will be eligible for a pro-rated bonus for that calendar year. You must be employed through the date bonuses are disbursed to employees generally in order to be eligible for the bonus. Additional details regarding Sarepta’s bonus program will be provided to you upon commencing employment. 

 

New Hire Option Grant. 

The Company, as an inducement for acceptance of the terms of the offer letter, plans to grant to you, subject to Compensation Committee approval, the option to purchase 100,000 shares of Company common stock pursuant to the inducement exemption contained in Nasdaq’s Rule 5635(c)(4). 

 

Under our current policy, the grant date of such option will be fixed as either (i) the last trading day of the month during which a meeting of the New Employee Option Committee or Compensation Committee is held to approve such option or (ii) the effective date of an action by unanimous written consent of the Compensation Committee approving such option.  The exercise price of such option will equal the closing sales price of the Company’s Common Stock as reported by The NASDAQ Global Market on the grant date.  Twenty-five percent of the shares underlying the option will vest and become exercisable on the first anniversary of your hire date, and 1/48th of the shares underlying the option will vest and become exercisable on each monthly anniversary of your hire date thereafter, such that the shares underlying the option will be fully vested and exercisable on the fourth anniversary of your hire date, subject to your continued employment through each such vesting date.

 

Annual Equity Grant Program

You may also be eligible to be considered for the Company’s annual equity grant program based on your performance. If you join the Company between January 1 and September 30 of the current calendar year, you will be eligible for a prorated annual equity grant in the calendar year that follows, with the actual amount of such equity grant, if any, being determined by the Company in its sole discretion. If you join the Company after September 30 of the current calendar year, your eligibility to participate will be postponed by one more calendar year.

 

 

617-274-4000    215 First Street, Cambridge, MA 02142

SAREPTA  COM

 

Catherine Stehman-Breen

February 3rd 2017

Page 2 of 4

 

Benefits. 

You will be eligible to participate in the benefit plans and programs made available by the Company from time to time for employees generally, subject to plan terms and generally applicable Company policies.  These currently include, but are not limited to:

	
 
	
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health insurance such as medical, dental and vision; 

	
 
	
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company-paid basic life insurance, accidental death & dismemberment, and short- and long-term disability; 

	
 
	
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paid time off such as accrued vacation, sick leave and company-paid holidays; 

	
 
	
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401(k) retirement savings plan; and employee stock purchase plan; 

 

For additional details, please review the enclosed Employees Benefits You Can Count On document.

 

Relocation/Temporary Housing.  

The Company will reimburse you up to $60,000 for eligible relocation expenses, subject to applicable taxes and the terms of the enclosed Relocation Agreement.  Please review the Relocation Agreement for important related details and, if you agree to the terms outlined, please provide a signed copy together with your signed offer of employment letter.  [You acknowledge and agree that you will not be eligible for Company reimbursement of any relocation expenses unless you accept the Relocation Agreement before incurring any such expenses.]

 

Background Check and Reference Check. 

As a part of Sarepta’s employment process, we reserve the right to conduct background checks and/or reference checks on all potential employees to the fullest extent permitted under applicable law.  This offer of employment, therefore, is contingent upon your successful completion of these checks.

 

Parking. 

As a part of Sarepta’s transportation assistance program, the Company will reimburse 50% of your parking or commuting services expenses, up to $140 per month, subject to generally applicable program terms and conditions, including acceptable substantiation of eligible expenses.

 

Employment At-Will. 

This letter and your response are not intended to constitute a contract of employment for a definite term.  If you accept our offer of employment, you will be an employee at-will, meaning that either you or the Company may terminate our employment relationship at any time for any reason, with or without cause and with or without advance notice.  None of the benefits offered to you by the Company create a right to continue in employment for any particular period of time.  The terms and conditions of your employment, including without limitation your job title, hours of work, work location, compensation, the stock option plan, and other employee benefits may change over the course of employment at the Company’s sole discretion.

 

Proprietary Rights Agreement. 

As a condition of your employment, you are required to sign a Confidential Proprietary Rights and Non-Disclosure Agreement (“Agreement”).  The Agreement is enclosed to give you an opportunity to read it carefully prior to your Hire Date.  The Agreement must be signed on or before your Hire Date as a condition of employment.

 

We would like to emphasize the importance we place on the proper treatment of all proprietary information, including that which you may have come into contact with in your prior employment.  The Company is extending this offer to you based upon your general skills and abilities, and not your possession of any trade secret, confidential or proprietary information of a former employer.  The Company requires that you do not obtain, keep, use for Sarepta’s benefit, or disclose this type of information from any prior employers to Sarepta.  By accepting this offer, you will also be affirming to the Company that you are not a party to any agreement with a prior employer that would prohibit your employment with us.

 

Moreover, you agree that during the term of your employment, 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.

 

Eligibility for Employment. 

In compliance with the United States’ Citizenship and Immigration Services, Sarepta must verify your identity and eligibility for employment in the United States within 3 business days of your Hire Date. For a list of acceptable documents, please visit http://www.uscis.gov/i-9.  Please bring the appropriate documents listed on that form with you when you report for work.  Sarepta will not be able to employ you if you fail to comply with this requirement.

 

 

	
 
	
617-274-4000  
	
215 First Street, Cambridge, MA 02142
	
 

	
 
	
SAREPTA  COM  
	
 

 

 

Catherine Stehman-Breen

February 3rd 2017

Page 3 of 4

 

In addition, since the Company is a Federal contractor, we participate in e-Verify, an Internet-based system that allows businesses to determine the eligibility of their employees to work in the United States.  For more information on this service, please visit http://www.uscis.gov/e-verify.

 

Change in Control.

Please reference the attached document outlining the terms of the agreement.

 

Acceptance. 

If you wish to accept this offer of employment with Sarepta, please sign below and return one signed copy to me.  This offer of employment will expire on Friday, February 10th 2017.

 

This offer of employment, the Relocation Agreement, and the Confidential Proprietary Rights and Non-Disclosure Agreement (described below) constitute the entire agreement, and supersedes all prior agreements, understanding or statements concerning your employment and all related matters, including, but not limited to, any representations made during your interviews or relocation negotiations, whether written or oral. This offer of employment letter, including, but not limited to, its at-will employment provision, may not be modified or amended, and no breach is regarded as waived, except by a written agreement signed by the Company’s CEO and President and you.

 

We are pleased to welcome you to Sarepta.  If you have any questions, please do not hesitate to contact me at 617-274-4076.

 

Sincerely,

 

/s/ Edward M. Kaye, MD

 

 

Edward M. Kaye, MD

Chief Executive Officer

 

Enclosures

 

 

 

	
 
	
617-274-4000  
	
215 First Street, Cambridge, MA 02142
	
 

	
 
	
SAREPTA  COM  
	
 

 

 

Catherine Stehman-Breen

February 3rd 2017

Page 4 of 4

 

Agreed to and accepted:

I accept the written terms in this offer of employment letter.

 

 

					
	
Signature:
	
/s/ Catherine Stehman-Breen
	
 
	
Date:
	
February 2, 2017

 

 

	
 
	
617-274-4000  
	
215 First Street, Cambridge, MA 02142
	
 

	
 
	
SAREPTA  COMEX-10.1

 Exhibit 10.1 

CONSULTING AGREEMENT 
 This Consulting
Agreement (this “Agreement”) is between Harvest Natural Resources, Inc., a Delaware corporation (the “Company”), and Robert Speirs, with a residence at 177 Tanjong Rhu Road, Tower A3
20-1, Singapore (“Consultant”), and is effective as of the latest date set forth beside the signatures of the parties on the signature page of this Agreement (the “Effective
Date”). 
 RECITALS: 

WHEREAS, Consultant was employed by the Company as Senior Vice President of Operations and was responsible for overseeing and managing
the Company’s Global operations 
 WHEREAS, the Company sold its remaining assets in Gabon on April 10, 2017; 

WHEREAS, the Company is currently in the process of liquidating and dissolving and as part of the liquidation and dissolution process
the Company terminated Consultant’s employment with the Company effective April 30, 2017 because the Company no longer needed the services of Consultant on a full time basis; 

WHEREAS, the Company anticipates that the Company may need the services of Consultant on a limited basis during 2017 to respond to
questions and resolve issues that the Company may have regarding the Gabonese assets and the sale of such assets, the Company desires to have Consultant available to assist the Company with any such matters that may arise; and 

WHEREAS, the Company and Consultant have agreed to memorialize the terms and conditions upon which Consultant will provide services to
the Company. 
 NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows: 

1. SERVICES AND NATURE OF RELATIONSHIP 

1.1 Engagement. The Company hereby retains Consultant to consult with and assist the Company during the Service Term (as that term is
defined in Section 2.1) with respect to matters and issues designated by the Company concerning the Gabonese asset. Consultant hereby accepts such appointment and agrees to perform all services under this Agreement timely,
diligently, in a good and workmanlike manner, and to the satisfaction of Company. 
 1.2 Reporting Relationship and Assignment.
Consultant shall report to the President and Chief Executive Officer of the Company or to such other person or persons as the Company may designate in writing to Consultant from time to time. 

1.3 Method of Performing Services. Consultant, as an independent contractor, shall determine the method, details, and means of
performing any services furnished pursuant to this Agreement, but the results of the services provided must meet the approval and requirements of the Company. Consultant will devote sufficient time, attention and energies to the services to be
provided to the Company and diligently perform such duties. Subject to the provisions of this Agreement, during the Service Term Consultant may be employed by, perform services for, or be retained by such other persons or entities as Consultant
determines. 

  
 - 1 - 

 1.4 Compliance with Law and Company Policy. Consultant acknowledges that he previously has
been provided a copy of, and has read and understands, the Company’s Code of Business Conduct and Ethics (the “Code”) and the Company’s Compliance Manual (the “Compliance Manual”), and Consultant agrees
throughout the Service Term: 
 (a) to comply with all policies of the Company and its subsidiaries and affiliates, including, without
limitation, the Code and the Compliance Manual; 
 (b) to comply with all applicable laws and regulations, including, without limitation,
such laws and regulations of the United States and Gabon; and 
 (c) to promptly report, as provided in the Code, any violation or suspected
violation of any law, regulation or Company policy. 
 This provision does not obligate the Company to police Consultant’s compliance
with the Code, laws, regulations or Company policies and does not impose any obligation on the part of the Company or its affiliates under such laws, regulations or Company policies. Nothing contained in this provision shall be interpreted as
enlarging the legal duty of the Company or its affiliates to Consultant or any other person or alter the status of Consultant as an independent contractor as set forth in this Agreement. 

The preceding paragraphs of this provision are agreed to by both the Company and Consultant to be of the highest importance. A breach or
violation of any of the terms of this provision by Consultant will be a material breach of this Agreement. 
 1.5 No Authority to
Bind. Consultant shall have no authority to obligate the Company in any manner whatsoever without the express and specific prior written consent of the President and Chief Executive Officer of the Company permitting Consultant to do so,
including, without limitation, incurring any expenses or entering into contracts for the benefit of or on behalf of the Company. 
 1.6
Status as Independent Consultant. Consultant acknowledges and agrees that, in performing services pursuant to this Agreement, Consultant shall be serving as an independent contractor. Consultant agrees that Consultant is not and will not
become an employee of the Company or any of its subsidiaries while this Agreement is in effect. Consultant agrees that the provision of services pursuant to this Agreement will not entitle Consultant to any rights or benefits afforded to the
employees of the Company and its subsidiaries, including such benefits as coverage under worker’s compensation insurance, health insurance, sick leave, retirement benefits or any other employment benefit. 

1.7 Payment of Taxes. Consultant acknowledges that Consultant is solely responsible for paying when due all self-employment, income and
other taxes imposed as a result of or in connection with the compensation paid by the Company to Consultant for the services rendered under this Agreement and the Company shall report the compensation paid pursuant to this Agreement on the
appropriate form. Consultant hereby indemnifies, and undertakes to defend the Company and hold it free and harmless from and against any demands or claims for any taxes, interest or penalties assessed by any taxing authority with respect to amounts
paid to Consultant pursuant to this Agreement. 

  
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 2. TERM AND TERMINATION 

2.1 Term. Consultant shall provide services under this Agreement during the period beginning on May 1, 2017 through
July 31, 2017 or such earlier date elected by the Company pursuant to Section 2.2 (the “Service Term”). 

2.2 Termination. The Company may elect to end the Service Term: 

(a) as of the last day of any calendar month occurring prior to July 2017 by providing to Consultant notice of the Company’s election no
less than five (5) days prior to the end of such month; 
 (b) as of the date Consultant dies; or 

(c) at the time Consultant materially breaches the terms of this Agreement or otherwise materially fails to provide the services contemplated
by this Agreement. 
 3. FEES AND EXPENSES 

The Company shall compensate Consultant for services rendered pursuant to this Agreement during the Service Term as follows: 

3.1 Rates. 
 (a) For each
calendar month that begins and ends during the Service Term, the Company will pay Consultant a base retainer fee of $10,000 (the “Retainer Fee”), irrespective of the number of hours Consultant provides services to the Company under
this Agreement during such month. If the Service Term begins after the first day of a calendar month or ends before the last day of a calendar month, the Retainer Fee will be prorated by multiplying the Retainer Fee amount by the quotient of
(i) the number of days in such month that are included in the Service Term divided by (ii) the total number of days in such month; provided, however, if the Service Term is terminated by the Company pursuant to
Section 2.2(c) no Retainer Fee will be payable for the month in which the Service Term so ends. 
 (b) If during a
calendar month during the Service Term Consultant provides more than 40 hours of services during such month: 
 (i) the Company will pay
Consultant an additional hourly fee of $250.00 for each hour worked during such month in excess of 40 hours; and 
 (ii) Consultant will
provide the Company, within 10 days after the end of that calendar month, a timesheet describing the services Consultant provided during such month including the dates and number of hours of service Consultant provided under this Agreement. 

  
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 3.2 Timing of Payments. The Company will pay to Consultant the Retainer Fee earned for a
month during the Service Term on the last day of such month. The Company will pay to Consultant the amount payable under Section 3.1(b)(i) for a month during the Service Term no later than the last day of the following
month. 
 3.3 Expense Reimbursements. As provided in Section 1.5, Consultant is not authorized to incur
expenses on behalf of the Company. If Consultant is expressly authorized, as described in Section 1.5, to incur expenses such authorization will include any basis for reimbursing Consultant for such amounts incurred. 

4. ADDITIONAL COVENANTS BY CONSULTANT 

4.1 Property of the Company. Consultant covenants and agrees that upon the termination of the Service Term for any reason or, if
earlier, upon the Company’s request, Consultant shall promptly return all Property which had been entrusted or made available to Consultant by the Company or its affiliates. The term “Property” shall mean all records, files,
memoranda, reports, price lists, drawing, plans, sketches, keys, codes, computer hardware and software and other property of any kind or description prepared, used or possessed by Consultant during the Service Term (and any duplicates of any such
property) which relate to the former or current business, products or services of the Company or its affiliates. 
 4.2 Confidential
Information. Consultant covenants and agrees that during the Service Term and thereafter he shall hold in a fiduciary capacity for the benefit of the Company and each of its affiliates, and shall not directly or indirectly use or disclose, any
of the former or current Confidential or Proprietary Information of the Company or its affiliates that Consultant may have acquired (whether or not developed or compiled by Consultant and whether or not Consultant is authorized to have access to
such information) prior to or during the Service Term. The term “Confidential or Proprietary Information” shall mean any secret, confidential or proprietary information of the Company or an affiliate that has not become generally
available to the public by the act of one who has the right to disclose such information without violation of any right of the Company or its affiliates or other owner thereof. 

4.3 Conflict of Interest and FCPA. Consultant covenants and agrees that Consultant will not receive during the Service Term and
represents that Consultant has not received prior to the Service Term any payments, gifts or promises with respect to the current or former business of the Company and its affiliates. Consultant shall not make any payments, loans, gifts or promises
or offers of payments, loans or gifts, directly or indirectly, to or for the use or benefit of any official or employee of any government, political party or candidate for political office or to any other person if Consultant knows, or has reason to
believe, that any part of such payments, loans or gifts, or promise or offer, would violate the laws or regulations of any country, including, without limitation, the United States of America, having jurisdiction over Consultant, the Company or any
of the Company’s affiliates. By signing this Agreement, Consultant acknowledges that he has not made and will not make any payments, loans, gifts, promises of payments, loans or gifts to or for the use or benefit of any official or employee of
any government, political party or candidate for political office or to any other person which would violate the laws or regulations of any country, including, without limitation, the United States of America, having jurisdiction over Consultant,
the Company or any of the Company’s affiliates. 

  
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 4.4 Reasonable and Continuing Obligations. Consultant agrees that Consultant’s
obligations under Section 4 are obligations which will continue beyond the date the Service Term terminates and that such obligations are reasonable and necessary to protect the Company’s legitimate business interests.
The Company additionally shall have the right to take such other action as the Company deems necessary or appropriate to compel compliance with the provisions of this Section 4 (including, without limitation, seeking a
court order for specific performance). 
 5. GENERAL PROVISIONS 

5.1 Notice. Notices and all other communications shall be in writing and shall be deemed to have been duly given when personally
delivered or when mailed by United States registered or certified mail. Notices to the Company shall be sent to the Vice President and General Counsel of the Company at khead@harvestnr.com or 1177 Enclave Parkway Suite 300,
Houston, Texas 77077. Notices and communications to Consultant shall be sent to the Consultant’s address provided above or at maudigi@hotmail.com. Either party may change its/his address by providing notice to the other party consistent
with the terms of this section. 
 5.2 Assignment/Subcontracting. This Agreement, and all duties and obligations hereunder are
personal in nature, and Consultant shall not assign this Agreement, or any portion hereof, voluntarily or involuntarily by operation of law, or enter into any subcontract for the performance of any services under this Agreement, or any portion
thereof. The Company may assign this Agreement to any affiliate or successor of the Company. 
 5.3 Governing Law. This Agreement and
all matters relating to the meaning, validity or enforceability thereof and the performance of the services hereunder shall be governed by the laws of the State of Texas, exclusive of its conflict of laws rule. 

5.4 Arbitration. SUBJECT TO THE PROVISIONS OF SECTION 4.4 OF THIS AGREEMENT, ANY UNRESOLVED DISPUTE OR
CONTROVERSY BETWEEN CONSULTANT AND THE COMPANY ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT SHALL BE SETTLED EXCLUSIVELY BY ARBITRATION, CONDUCTED BEFORE A SINGLE ARBITRATOR IN ACCORDANCE WITH THE RULES OF THE AMERICAN ARBITRATION ASSOCIATION
THEN IN EFFECT. THE ARBITRATOR SHALL NOT HAVE THE AUTHORITY TO ADD TO, DETRACT FROM, OR MODIFY ANY PROVISION HEREOF. A DECISION BY THE ARBITRATOR SHALL BE IN WRITING AND WILL BE FINAL AND BINDING. JUDGMENT MAY BE ENTERED ON THE ARBITRATOR’S
AWARD IN ANY COURT HAVING JURISDICTION. THE ARBITRATION PROCEEDING SHALL BE HELD IN HOUSTON, TEXAS. 
 5.5 Entire Agreement and
Modification. This Agreement supersedes any and all agreements, either oral or written, between the parties with respect to the rendering of consulting services by Consultant for the Company, and contains all representations, covenants and
agreements between the parties with respect to the rendering of such services by Consultant. Any modification of this Agreement will be effective only if it is in writing and signed by the party to be charged. 

  
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 5.6 Severability. If any term, provision, covenant or condition of this Agreement shall be
or become illegal, null, void or against public policy, or shall be held by an arbitrator to be illegal, null or void or against public policy, the remaining provisions of this Agreement shall remain in full force and effect and shall not be
affected, impaired or invalidated thereby. The term, provision, covenant or condition that is so invalidated, voided or held to be unenforceable shall be modified or changed by the parties to the extent possible to carry out the intentions and
directives set forth in this Agreement. 
 5.7 Successors and Assigns. Except as restricted herein, this Agreement shall be binding on
and shall inure to the benefit of the parties and their respective heirs, legal representatives, successors and permitted assigns. 
 5.8
Waiver. No waiver of any provision or consent to any action shall constitute a waiver of any other provision or consent to any other action, whether or not similar. No waiver or consent shall constitute a continuing waiver or consent or
commit a party to provide a waiver in the future except to the extent specifically set forth in writing. Any waiver given by a party shall be null and void if the party requesting such waiver has not provided a full and complete disclosure of all
material facts relevant to the waiver requested. No waiver shall be binding unless executed in writing by the party making the waiver. 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date(s) set
forth below. 
  

							
		 		 	HARVEST NATURAL RESOURCES, INC.
				
	Date: April 30, 2017	 		 	By:	 	 /s/ James A. Edmiston

		 		 	Title:	 	President and Chief Executive Officer
				
	Date: April 30, 2017	 		 		 	 /s/ Robert Speirs

		 		 		 	Robert Speirs

  
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