June 14, 2006 Amended June 21, 2006
Exhibit 10.4
EXECUTION COPY
| June 14, 2006 | ||
| Amended June 21, 2006 |
Xxxxx Xxxxxxx, Ph.D.
c/o OSI Pharmaceuticals, Inc.
00 Xxxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000
c/o OSI Pharmaceuticals, Inc.
00 Xxxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000
Dear Colin:
This letter is to confirm our understanding with respect to (i) your continuing employment by
OSI Pharmaceuticals, Inc. (“OSI” and, together with Company Affiliates (as defined below), the
“Company”), (ii) your agreement not to solicit employees or customers of the Company or any Company
Affiliate, (iii) your agreement to protect and preserve information and property which is
confidential and proprietary to the Company, and (iv) your agreement with respect to the ownership
of inventions, ideas, copyrights and patents which may be used in the business of the Company (the
terms and conditions agreed to in this letter are hereinafter referred to as the “Agreement”). As
used herein, any presently existing parent, subsidiary or affiliate of OSI is referred to as a
“Company Affiliate.” In consideration of the mutual promises and covenants contained in this
Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby mutually acknowledged, we have agreed as follows:
1. Employment.
(a) Subject to the terms and conditions of this Agreement, the Company will employ you, and
you will be employed by the Company and/or any Company Affiliate designated by the Company, as the
Chief Executive Officer (the “CEO”) of the Company, reporting solely to the Company’s Board of
Directors (the “Board”). You will have the responsibilities, duties and authority customarily
performed, undertaken and exercised by a person in a similar executive capacity. The principal
location at which you will perform such services will be the Company’s headquarters presently
located at 00 Xxxxxxxx Xxxx, Xxxxxxxx, Xxx Xxxx, although you will be available to perform services
at any other Company facility and to travel as the needs of business may require.
(b) Devotion to Duties. While you are employed hereunder, you will, to the best of
your ability, perform faithfully and diligently all duties assigned to you pursuant to this
Agreement and will devote your necessary business time and energies to the business and affairs
of
the Company. While you are employed hereunder, you will not undertake any other employment from
any person or entity without the prior written consent of the Company. Notwithstanding the
foregoing, nothing contained herein shall limit your ability to manage your own personal
investments on your own personal time or from serving on no more than two outside boards of
directors or advisory boards of a public company, so long as such activities do not (i) involve a
business or organization which competes with the Company or any Company Affiliate (except, in the
case of personal investments, you may own up to 1% of the outstanding capital stock of a
corporation if, at the time of your acquisition such stock is listed on a national securities
exchange, is reported on NASDAQ, or is regularly traded in the over-the-counter market by a member
of a national securities exchange), (ii) interfere or conflict with the performance of your duties
as an employee of the Company or any Company Affiliate of the Company, or (iii) otherwise result in
a breach of any of the provisions of this Agreement.
2. Term. Except for earlier termination as provided for in Section 4 hereof, your
employment under this Agreement (the “Employment Term”) shall be for an initial term commencing on
the date hereof (the “Effective Date”) and ending on the third anniversary of the Effective Date
(the “Initial Term”). Unless written notice is given of an intent not to extend the Initial Term or
any extension thereof by you or the Company at least 90 days prior to an anniversary of the
Effective Date, the Employment Term shall be deemed, as of such 90th day, to have been
extended for an additional 12-month period unless otherwise terminated as provided for in Section 4
hereof. In the event the Company elects not to renew the Employment Term, you shall be entitled to
the payments and benefits set forth in Section 6(c).
3. Compensation.
(a) Base Salary. While you are employed hereunder, the Company will pay you a base
salary at the annual rate of $600,000 (the “Base Salary”). Your Base Salary will be reviewed on an
annual basis each December (or such other time as determined by the Compensation Committee of the
Board), commencing with December, 2006, and may be increased (but not decreased) as a result of any
such review. The Base Salary will be payable in equal installments in accordance with the
Company’s payroll practices as in effect from time to time. The Company will deduct from each such
installment all amounts required to be deducted or withheld under applicable law or under any
employee benefit plan in which you participate.
(b) Bonus. In addition to the Base Salary, for each fiscal year of the Company ending
during the Employment Term, beginning with the 2006 fiscal year, you will be eligible to receive a
target bonus of 100% of the Base Salary, determined and payable in accordance with the Company’s
practices applicable to bonuses paid to its executives and payable on such date as the Company pays
bonuses to its executives generally but no later than February 28th of the year
following the year for which such bonus is paid. The Company’s bonus system is a discretionary
annual performance-based incentive bonus system, approved by the Company’s Board, and is based upon
a combination of personal and corporate performance contributing to your maximum target. Bonuses
are determined in December of each year.
(c) Equity Compensation. On each date that annual stock options or other equity
compensation, including restricted stock, restricted stock units or deferred stock units, are
granted by the Company to its executive management group, so long as you then remain in the
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employ
of the Company, the Company will grant you stock options or other equity compensation (an “Annual
Equity Grant”) in respect of a number of shares of Common Stock to be determined by the
Compensation Committee of the Board based upon your grade level, which during the Employment Term
shall be the highest of any of the annual equity grants to executive officers of the Company. The
terms and conditions of each Annual Equity Grant will be as set forth in the OSI Pharmaceuticals,
Inc. Amended and Restated Stock Incentive Plan and accompanying agreement or agreements evidencing
the grant or other applicable plans or agreements then in effect with regard to such Annual Equity
Grant. Notwithstanding the foregoing, each Annual Equity Grant (as well as stock options and
other equity compensation granted prior to the date of this Agreement) shall vest and be fully
exercisable upon a Change in Control (as defined in Section 7) or upon a termination of your
employment by the Company “without cause” (as defined in Section 4(c)) or by you for “good reason”
(as defined in Section 4(d)).
(d) Vacation. You will be entitled to 25 paid vacation days in each calendar year,
including 2006, and paid holidays plus personal days in accordance with the Company’s policies for
its senior executives as in effect from time to time.
(e) Fringe Benefits. In addition to the equity compensation provided for herein, you
will be entitled to participate in employee benefit plans which the Company provides or may
establish for the benefit of its senior executives generally (for example, term life, disability,
medical, dental and other insurance, retirement, pension, profit-sharing and similar plans)
(collectively, the “Fringe Benefits”). Your eligibility to participate in the Fringe Benefits and
receive benefits thereunder will be subject to the plan documents governing such Fringe Benefits.
Without limiting the foregoing, during the Employment Term you will be provided with individual
long term disability coverage (which the Company may provide directly or through insurance)
providing benefits equal to at least 65% of your Base Salary if you experience a Permanent
Disability (as defined in Section 4(b)). The Company will structure all applicable premium
payments so that any disability payments made to you in the event of a Permanent Disability will
not be considered taxable income to you. Except as expressly provided in this Agreement, the
Company shall not be required to establish or maintain any Fringe Benefits.
(f) Company Car. The Company will provide you with an approved company car and will
reimburse you for related expenses in accordance with the Company’s policy for its senior
executives as in effect from time to time.
(g) Reimbursement of Expenses. Upon presentation of documentation of such expenses
reasonably satisfactory to the Company, the Company will reimburse you for all ordinary and
reasonable out-of-pocket business expenses that are reasonably incurred by you in furtherance of
the Company’s business in accordance with the Company’s policies with respect thereto as in effect
from time to time.
4. Termination. The Employment Term shall end upon the earliest of the following to
occur:
(a) Your death.
(b) Upon written notice to you of termination as a result of your Permanent Disability.
“Permanent Disability” means you are, by reason of any medically determinable
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physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, unable to perform substantially all of your duties under this
Agreement. Determinations of the foregoing shall be made by a qualified physician with no history
of prior dealings with you or the Company, as reasonably agreed upon by you (or, if you are unable
to make such selection, by an adult member of your immediate family) and the Company. Such
physician’s written determination of your Permanent Disability shall, upon delivery to the Company,
be final and conclusive for purposes of this Agreement.
(c) Your termination by the Company for “cause” as evidenced by, and effective upon, delivery
by the Company to you of a Notice of Termination (as defined in Section 5 below). “Cause” shall
mean, for purposes of this Agreement, (i) an act of fraud or embezzlement against the Company or an
unauthorized disclosure of Confidential Information (as defined in Section 9(a)(iv) hereof) of the
Company, in each case which is willful and results in material damage to the Company, (ii) any
criminal violation of the Securities Act of 1933 or the Securities Exchange Act of 1934, (iii) your
conviction (or a plea of nolo contendere) of any felony, (iv) your gross neglect of your duties or
your willful and continuing refusal to perform your duties, provided you have been given written
notice of such neglect or refusal and within 30 days have failed to cure such neglect and refusal,
or (v) your material willful misconduct with respect to the business or affairs of the Company.
(d) Your termination of your employment for “good reason” by delivering to the Company a
Notice of Termination (as defined in Section 5 below) not less than 30 days prior to the effective
date of such termination. For purposes of this Agreement, “good reason” shall mean the occurrence
of any of the events hereinafter set forth which are not cured by the Company (to the extent cure
is possible) within 30 days after the Company has received written notice from you specifying the
particular events or conditions which constitute “good reason”:
(i) a material reduction in your duties, title, responsibilities, authority,
status, or reporting responsibilities (including as specifically provided herein)
unless you have previously consented to such reduction (which consent may be given
or withheld in your sole discretion);
(ii) your failure to be reelected to the Board and, as a result thereof, your
service on the Board ceases;
(iii) a reduction in your Base Salary or the target rate of your bonus;
(iv) a material failure to pay or provide Fringe Benefits or other benefits
described in this Agreement or any other material breach of this Agreement by the
Company;
(v) the Company’s requiring you to be based more than 50 miles from the
Company’s current headquarters in Melville, New York or to any location for which
the average commute from your residence exceeds one hour; or
(vi) a Change in Control (as defined in Section 7).
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(e) Termination of your employment by the Company “without cause” by delivery by the Company
to you of a Notice of Termination (as defined in Section 5 below) not less than 30 days prior to
the effective date of such termination. Your termination by the Company shall be considered to be
“without cause” if you are terminated or dismissed by the Company for reasons other than death,
Permanent Disability or for “cause”.
(f) Your termination of your employment “without good reason” by delivery by you to the
Company of a Notice of Termination (as defined in Section 5 below). Your termination of your
employment shall be considered to be “without good reason” unless you resign for “good reason” (as
defined in Section 4(d)).
5. Notice of Termination. Any termination by the Company or by you shall be
communicated by a written “Notice of Termination” to the other party hereto. A “Notice of
Termination” shall mean a notice which indicates a termination date and the specific termination
provision in this Agreement relied upon and which sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination under the provision so indicated.
6. Payments Upon Termination.
(a) Upon termination of your employment for any reason you will become entitled to (i) any
accrued and unpaid Base Salary up to the date of termination, (ii) any accrued and unpaid vacation
pay up to the date of termination, and (iii) an amount equal to the bonus that you would have been
entitled to receive for the fiscal year in which your termination occurs had you continued to be
employed until the end of such fiscal year, multiplied by a fraction (A) the numerator of which is
the number of days in such fiscal year through the termination date and (B) the denominator or
which is 365 ((i), (ii) and (iii) being collectively referred to as the “Accrued Compensation”).
(b) Upon termination of your employment due to death or Permanent Disability you (or your
estate, as the case may be) will be entitled to receive your Accrued Compensation.
(c) Upon a termination of your employment by the Company “without cause” or by you “for good
reason”, or following the expiration of the Employment Term if the Company elects not to renew the
Employment Term, in addition to Accrued Compensation, subject to Section 6(e) below you will become
entitled to (i) your Base Salary at the rate in effect as of the time of termination of your
employment for 36 months following the date of termination, and (ii) continued coverage for 36
months following termination under any health, dental and disability program in which you were
participating as of the time of termination of your employment, at levels comparable to those in
effect as of the time of such termination.
(d) You shall not be required to mitigate the amount of any payment provided for under this
Section 6 by seeking other employment or otherwise and no payment shall be offset or reduced by the
amount of any compensation or benefits provided to you in any subsequent employment. The Company’s
obligation to make the payments provided for in this Section 6 and
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otherwise perform its
obligations hereunder shall not be affected by any circumstances, including, without limitation,
set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may
have against you or others.
(e) Any payments under Section 6(b) or (c) to which you may become entitled will not
commence until the first day of the seventh month following the date your employment with the
Company is terminated, and shall continue on the first day of each month thereafter (as
applicable), so as to avoid any adverse tax consequences with respect to Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”), or any successor statute, regulation and
guidance thereto. With respect to the continued monthly payments that may become due to you under
Section 6(c)(i) and (iii), on the first day of the seventh month following the termination of your
employment, you shall receive an amount equal to seven monthly payments otherwise due to you under
the terms of Section 6(c)(i) and (iii), and thereafter, you shall receive a pro-rata monthly
payment on the first day of each month until all payments due under the terms of Section 6(c)(i)
and (iii) have been fully paid.
7. Change in Control. For purposes of this Agreement, a “Change in Control” shall
occur on the date that:
(a) any one person, entity or group acquires ownership of capital stock of the Company that,
together with the capital stock of the Company already held by such person, entity or group,
constitutes more than 50% of the total fair market value or total voting power of the capital stock
of the Company; provided, however, if any one person, entity or group is considered to own more
than 50% of the total fair market value or total voting power of the capital stock of the Company,
the acquisition of additional capital stock by the same person, entity or group shall not be deemed
to be a Change in Control;
(b) any one person, entity or group acquires (or has acquired during the 12-month period
ending on the date of the most recent acquisition by such person, entity or group) ownership of
capital stock of the Company possessing 35% or more of the total voting power of the capital stock
of Company;
(c) a majority of members of the Board is replaced during any 12-month period by directors
whose appointment or election is not endorsed by the nominating committee of the Board prior to the
date of the appointment or election; or
(d) any one person, entity or group acquires (or has acquired during the 12-month period
ending on the date of the most recent acquisition by such person, entity or group) assets from the
Company that have a total gross fair market value at least equal to 40% of the total gross fair
market value of all of the assets of the Company immediately prior to such acquisition or
acquisitions; provided, however, a transfer of assets by the Company shall not deemed to be a
Change in Control if the assets are transferred to (i) a shareholder of the Company
(immediately before the asset transfer) in exchange for or with respect to its capital stock in the
Company, (ii) an entity, 50% or more of the total value or voting power of which is owned, directly
or indirectly, by the Company, (iii) a person, entity or group that owns, directly or indirectly,
50% or more of the total value or voting power of all the outstanding capital stock of the Company,
or
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(iv) an entity, at least 50% of the total value or voting power of which is owned, directly or
indirectly, by a person, entity or group described in subparagraph (iii) above. In all respects,
the definition of “Change in Control” shall be interpreted to comply with Code Section 409A, and
the provisions of Treasury Notice 2005-1, and any successor statute, regulation and guidance
thereto.
8. Excise Tax. If it is determined that the amounts payable to you under this
Agreement, when considered together with any amounts payable to you in connection with a Change in
Control, cause such payments to be treated as excess parachute payments within the meaning of
Section 280G of the Code, then the Company will make an additional “gross up” payment to you in
order to pay for any additional tax imposed on you pursuant to Section 4999 of the Code.
9. Prohibited Activities.
(a) Certain Acknowledgements and Agreements.
(i) We have discussed, and you recognize and acknowledge the competitive and
proprietary aspects of the business of the Company.
(ii) You acknowledge that your employment by the Company creates a relationship
of confidence and trust between the Company and you with respect to certain
information relating to the business and affairs of the Company or applicable to the
business of any client, customer, consultant, partner, external collaborator or
service provider of the Company, which may be made known to you by the Company or by
any client, customer, consultant, partner, external collaborator or service provider
of the Company, or learned by you during the period of your affiliation with the
Company.
(iii) You further acknowledge that, while you are employed hereunder, the
Company will furnish, disclose or make available to you Confidential Information (as
defined in Section 9 (a) (iv) below) related to the business of the Company (whether
or not the information has commercial value to the Company’s business). You also
acknowledge that such Confidential Information has been developed and will be
developed by the Company through the expenditure by the Company of substantial time,
effort and money and that all such Confidential Information could be used by you to
compete with the Company. You also acknowledge that if you become employed or
affiliated with any competitor of the Company, it is possible that you would
disclose Confidential Information to such competitor and would use Confidential
Information, knowingly or unknowingly, on behalf of such competitor.
(iv) For purposes of this Agreement, “Confidential Information” means
confidential and proprietary information of the Company, whether in written, oral,
electronic or other form, including, without limitation, systems, processes,
formulae, data, functional specifications, computer software, programs and displays,
know-how, improvements, discoveries, inventions, developments, designs,
techniques, marketing plans, strategies, forecasts, new and proposed products and technologies,
unpublished financial statements and
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financial
information, business plans, budgets,
projections, licenses, prices, costs, training methods and materials, sales
prospects, and customer, supplier, manufacturer, collaborator, partner, and client
lists and any and all intellectual properties, including any scientific, technical
or trade secrets of the Company or of any third party provided to you or the Company
under a condition of confidentiality, provided that Confidential Information will
not include information that is in the public domain other than through any fault or
act by you or is lawfully and in good faith made available to you by a third party
under no obligation of confidentiality with respect thereto.
(b) Covenants. While you are employed hereunder and for a period of six months
following the termination of your employment hereunder for any reason or for no reason, you will
not, without the prior written consent of the Company:
(i) Engage, directly or indirectly, for your benefit or the benefit of others,
in any activity or employment in the performance of which any Confidential
Information obtained during the course of your employment would, by necessity, need
to be disclosed by you in order to engage in any such activity or employment. This
covenant shall not be construed to limit in any way your obligation not to use or
disclose Confidential Information as set forth in Section 9 below.
(ii) Either individually or on behalf of or through any third party, directly
or indirectly, solicit, divert or appropriate or attempt to solicit, divert or
appropriate, any customers of the Company or any prospective customers with respect
to which the Company has developed or made a sales presentation (or similar offering
of services) for the purpose of directly competing with the Company with respect to
the Company’s “principal marketed products” (i.e., those products which are in the
first or second detail position) or its development candidates which have material
financial significance to the Company and which are in Phase III programs; or
(iii) Either individually or on behalf of or through any third party, directly
or indirectly, (A) solicit, entice or persuade or attempt to solicit, entice or
persuade any employees of or consultants to the Company to leave the service of the
Company for any reason, or (B) employ, cause to be employed, or solicit the
employment of, any employees of or consultants to the Company while any such person
is providing services to the Company or within six months after any such person has
ceased providing services to the Company; or
(iv) Either individually or on behalf of or through any third party, directly
or indirectly, interfere with, or attempt to interfere with, the relations between
the Company and any manufacturer or supplier to or customer of the Company.
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(c) Reasonableness of Restrictions. You understand that the provisions set forth in
Section 9(b) are not meant to prevent you from earning a living or fostering your career. They are
intended, however, to prevent competitors of the Company from gaining an unfair advantage from your
knowledge of Confidential Information. You understand that, by making any other employer aware of
the provisions set forth in this Section 9, that employer can take such action as to avoid your
breach of this Section 9.
(d) Survival of Acknowledgements and Agreements. Your acknowledgements and agreements
set forth in this Section 9 will survive the termination of this Agreement and the termination of
your employment hereunder for any reason or for no reason.
10. Protected Information. All Confidential Information shall be the sole property of
the Company and its assigns. You hereby assign to the Company any right you may have or acquire in
such Confidential Information. You will at all times, both during the period while you are
employed hereunder and after the termination of this Agreement and the termination of your
employment hereunder for any reason or for no reason, maintain in confidence and will not, without
the prior written consent of the Company, use, except as required in the course of performance of
your duties for the Company or by court order, disclose or give to others any Confidential
Information. In the event you are questioned by anyone not employed by the Company or by an
employee of or a consultant to the Company not authorized to receive Confidential Information, in
regard to any Confidential Information, or concerning any fact or circumstance relating thereto,
you will promptly notify the Company. Upon the termination of your employment hereunder for any
reason or for no reason, or if the Company otherwise requests, you will return to the Company all
tangible Confidential Information and copies thereof (regardless how such Confidential Information
or copies are maintained). The terms of this Section 10 are in addition to, and not in lieu of,
any statutory or other contractual or legal obligation that you may have relating to the protection
of the Company’s Confidential Information. The terms of this Section 10 will survive indefinitely
any termination of this Agreement and/or any termination of your employment hereunder for any
reason or for no reason.
11. Ownership of Ideas, Copyrights and Patents.
(a) Property of the Company. All ideas, discoveries, creations, manuscripts and
properties, innovations, improvements, know-how, inventions, designs, developments, apparatus,
techniques, methods, biological processes, cell lines, laboratory notebooks and formulae
(collectively, the “Inventions”) which may be used in the current or planned business of the
Company or which in any way relates to such business, whether patentable, copyrightable or not,
which you may conceive, reduce to practice or develop while you are employed hereunder, alone or in
conjunction with another or others, whether during or out of regular business hours, whether or not
on the Company’s premises or with the use of its equipment, and whether at the request or upon the
suggestion of the Company or otherwise, will be the sole and
exclusive property of the Company, and that you will not publish any of the Inventions without
the prior written consent of the Company. Without limiting the foregoing, you also acknowledge
that all original works of authorship which are made by you (solely or jointly with others) within
the scope of your employment or which relate to the business of the Company and which are
protectable by copyright are “works made for hire” pursuant to the United States Copyright Act
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(17
U.S.C. Section 101). You will promptly disclose to the Company all of the foregoing and you hereby
assign to the Company all of your right, title and interest in and to all of the foregoing. You
further represent that, to the best of your knowledge and belief, none of the Inventions will
violate or infringe upon any right, patent, copyright, trademark or right of privacy, or constitute
libel or slander against or violate any other rights of any person, firm or corporation, and that
you will use your best efforts to prevent any such violation.
(b) Cooperation. At any time during your employment hereunder or after the
termination of your employment hereunder for any reason or for no reason, you will cooperate
reasonably with the Company and its attorneys and agents in the preparation and filing of all
papers and other documents as may be required to perfect the Company’s rights in and to any of such
Inventions, including, without limitation, joining in any proceeding to obtain letters patent,
copyrights, trademarks or other legal rights with respect to any such Inventions in the United
States and in any and all other countries, provided that the Company will bear the expense of such
proceedings and will compensate you at a reasonable agreed upon daily rate for your time, and that
any patent or other legal right so issued to you personally will be assigned by you to the Company
without charge by you.
(c) Licensing and Use of Inventions. With respect to any Inventions, and work of any
similar nature (from any source), whenever created, which you have not prepared or originated in
the performance of your employment, but which you provide to the Company or incorporate in any
Company product or system, you hereby grant to the Company a royalty-free, fully paid-up,
non-exclusive, perpetual and irrevocable license throughout the world to use, modify, create
derivative works from, disclose, publish, translate, reproduce, deliver, perform, dispose of, and
to authorize others so to do, all such Inventions. You will not include in any Inventions you
deliver to the Company or use on its behalf, without the prior written approval of the Company, any
material which is or will be patented, copyrighted or trademarked by you or others unless you
provide the Company with the written permission of the holder of any patent, copyright or trademark
owner for the Company to use such material in a manner consistent with then-current Company policy.
12. Records. Upon termination of your employment hereunder for any reason or for no
reason and at any other time requested by the Company, you will deliver to the Company any property
of the Company which may be in your possession, including products, materials, memoranda, notes,
records, reports, or other documents or photocopies of the same.
13. Representations. You hereby represent and warrant to the Company that you
understand this Agreement, that you enter into this Agreement voluntarily and that your employment
under this Agreement will not conflict with any legal duty owed by you to any other party, or with
any agreement to which you are a party or by which you are bound, including, without limitation,
any non-competition or non-solicitation provision contained in any such agreement.
14. General.
(a) Notices. All notices, requests, consents and other communications hereunder which
are required to be provided, or which the sender elects to provide, in writing, will
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be addressed
to the receiving party’s address set forth above or to such other address as a party may designate
by notice hereunder, and will be either (i) delivered by hand, (ii) sent by overnight courier, or
(iii) sent by registered or certified mail, return receipt requested, postage prepaid. All
notices, requests, consents and other communications hereunder will be deemed to have been given
either (i) if by hand, at the time of the delivery thereof to the receiving party at the address of
such party set forth above, (ii) if sent by overnight courier, on the next business day following
the day such notice is delivered to the courier service, or (iii) if sent by registered or
certified mail, on the fifth business day following the day such mailing is made.
(b) Entire Agreement. This Agreement, and the other agreements specifically referred
to herein, embodies the entire agreement and understanding between the parties hereto with respect
to the subject matter hereof and supersedes all prior oral or written agreements and understandings
relating to the subject matter hereof, including your existing Employment Agreement dated as of
April 30, 1998. No statement, representation, warranty, covenant or agreement of any kind not
expressly set forth in this Agreement will affect, or be used to interpret, change or restrict, the
express terms and provisions of this Agreement.
(c) Modifications and Amendments. The terms and provisions of this Agreement may be
modified or amended only by written agreement executed by the parties hereto. Notwithstanding the
foregoing, the Company and you agree to jointly execute an amendment to modify this Agreement to
the extent necessary to comply with the requirements of Code Section 409A, or any successor
statute, regulation and guidance thereto; provided that no such amendment shall increase the total
financial obligation of the Company under this Agreement.
(d) Waivers and Consents. The terms and provisions of this Agreement may be waived,
or consent for the departure therefrom granted, only by written document executed by the party
entitled to the benefits of such terms or provisions. No such waiver or consent will be deemed to
be or will constitute a waiver or consent with respect to any other terms or provisions of this
Agreement, whether or not similar. Each such waiver or consent will be effective only in the
specific instance and for the purpose for which it was given, and will not constitute a continuing
waiver or consent.
(e) Assignment. The Company may assign its rights and obligations hereunder to any
person or entity that succeeds to all or substantially all of the Company’s business or that aspect
of the Company’s business in which you are principally involved or to any Company Affiliate;
provided, that the Company shall remain responsible for any payments and obligations to you to the
extent any assignee fails to fulfill such payments and obligations. You may not assign your rights
and obligations under this Agreement without the prior written consent of the Company and any such
attempted assignment by you without the prior written consent of the Company will be void.
(f) Benefit. All statements, representations, warranties, covenants and agreements in
this Agreement will be binding on the parties hereto and will inure to the benefit of
the respective successors and permitted assigns of each party hereto. Nothing in this
Agreement will be construed to create any rights or obligations except between the Company and you,
except for your obligations to the Company as set forth herein, and no person or entity (except for
a
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Company Affiliate as set forth herein) will be regarded as a third-party beneficiary of this
Agreement.
(g) Governing Law. This Agreement and the rights and obligations of the parties
hereunder will be construed in accordance with and governed by the laws of the State of New York,
without giving effect to the conflict of law principles thereof.
(h) Jurisdiction, Venue and Service of Process. Any legal action or proceeding with
respect to this Agreement that is not subject to arbitration pursuant to Section 15 (i) below will
be brought in the courts of Suffolk County, New York. By execution and delivery of this Agreement,
each of the parties hereto accepts for itself and in respect of its property, generally and
unconditionally, the exclusive jurisdiction of the aforesaid courts.
(i) Arbitration. Any controversy, dispute or claim arising out of or in connection
with this Agreement, other than a controversy, dispute or claim arising under Section 9, 10 or 11
hereof, will be settled by final and binding arbitration to be conducted in New York, New York
pursuant to the national rules for the resolution of employment disputes of the American
Arbitration Association then in effect. The decision or award in any such arbitration will be
final and binding upon the parties and judgment upon such decision or award may be entered in any
court of competent jurisdiction or application may be made to any such court for judicial
acceptance of such decision or award and an order of enforcement. In the event that any procedural
matter is not covered by the aforesaid rules, the procedural law of New York will govern. Any
disagreement as to whether a particular dispute is arbitrable under this Agreement shall itself be
subject to arbitration in accordance with the procedures set forth herein. The fees of the
arbitrators shall be paid by the Company.
(j) WAIVER OF JURY TRIAL. ANY ACTION, DEMAND, CLAIM OR COUNTERCLAIM ARISING UNDER OR
RELATING TO THIS AGREEMENT THAT IS NOT SUBJECT TO ARBITRATION PURSUANT TO SECTION 15(i) ABOVE WILL
BE RESOLVED BY A JUDGE ALONE AND EACH OF YOU AND THE COMPANY WAIVE ANY RIGHT TO A JURY TRIAL
THEREOF.
(k) Severability. The parties intend this Agreement to be enforced as written.
However, (i) if any portion or provision of this Agreement is to any extent declared illegal or
unenforceable by a duly authorized court having jurisdiction, then the remainder of this Agreement,
or the application of such portion or provision in circumstances other than those as to which it is
so declared illegal or unenforceable, will not be affected thereby, and each portion and provision
of this Agreement will be valid and enforceable to the fullest extent permitted by law and (ii) if
any provision, or part thereof, is held to be unenforceable because of the duration of such
provision, the geographic area covered thereby, or other aspect or scope of such provision, the
court making such determination will have the power to reduce the duration, geographic area of such
provision, or other aspect or scope of such provision, and/or to delete specific words and phrases
(“blue-penciling”), and in its reduced or blue-penciled form, such provision will then be
enforceable and will be enforced.
(l) Injunctive Relief. You hereby expressly acknowledge that any breach or threatened
breach of any of the terms and/or conditions set forth in Section 9, 10 or 11 of this
12
Agreement
will result in substantial, continuing and irreparable injury to the Company. Therefore, in
addition to any other remedy that may be available to the Company, the Company will be entitled to
seek injunctive or other equitable relief by a court of appropriate jurisdiction in the event of
any breach or threatened breach of the terms of Section 9, 10 or 11 of this Agreement. The period
during which the covenants contained in Section 9 will apply will be extended by any periods during
which you are found by a court to have been in violation of such covenants.
(m) No Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto
in exercising any right, power or remedy under this Agreement, and no course of dealing between the
parties hereto, will operate as a waiver of any such right, power or remedy of the party. No
single or partial exercise of any right, power or remedy under this Agreement by a party hereto,
nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, will
preclude such party from any other or further exercise thereof or the exercise of any other right,
power or remedy hereunder. The election of any remedy by a party hereto will not constitute a
waiver of the right of such party to pursue other available remedies. No notice to or demand on a
party not expressly required under this Agreement will entitle the party receiving such notice or
demand to any other or further notice or demand in similar or other circumstances or constitute a
waiver of the rights of the party giving such notice or demand to any other or further action in
any circumstances without such notice or demand.
(n) Counterparts. This Agreement may be executed in two or more counterparts, and by
different parties hereto on separate counterparts, each of which will be deemed an original, but
all of which together will constitute one and the same instrument.
(o) Opportunity to Review. You hereby acknowledge that you have had adequate
opportunity to review these terms and conditions and to reflect upon and consider the terms and
conditions of this Agreement, and that you have had the opportunity to consult with counsel of your
own choosing regarding such terms. You further acknowledge that you fully understand the terms of
this Agreement and have voluntarily executed this Agreement.
(p) Survival of the Company’s Obligations. Notwithstanding the termination of this
agreement pursuant to Section 4, the Company’s obligation to make payments and provide benefits to
you as set forth in Section 6 will remain in effect.
(q) Expenses. The Company shall bear its own fees and expenses incurred in connection
with the preparation, negotiation, execution and delivery of this Agreement and shall pay or
reimburse you for your fees and expenses (including, legal fees and expenses) incurred in
connection with the same.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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If the foregoing accurately sets forth our agreement, please so indicate by signing and
returning to us the enclosed copy of this Agreement.
| Very truly yours, | ||||||
| OSI Pharmaceuticals, Inc. | ||||||
| By: Name: |
/s/ Xxxxxx Xxxxxx
|
|||||
| Title: | Chairman, duly authorized | |||||
Accepted and Approved:
|
||||
/s/ Xxxxx Xxxxxxx
|
6/21/2006 | |||
| Date |
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