Re: Amendment to Stock Option Agreement(s) /Restricted Stock Award Agreement(s) and Employment Agreement
May
7,
2007
Re:
|
Amendment
to Stock Option Agreement(s) /Restricted Stock Award
Agreement(s)
and Employment Agreement
|
Dear
Xxxxx:
As
you
know, inVentiv Health, Inc. (the “Corporation”) has previously granted to you
certain options (the “Options”) to purchase shares of common stock, $0.001 par
value, of the Corporation. As of the date hereof, you are the owner of the
following Options:
Option
Number
|
Option
Grant Date
|
Number
of Option Shares
|
00001770
|
12/10/2003
|
20,000
|
00001895
|
9/23/2004
|
150,000
|
00002202
|
1/17/2006
|
33,750
|
00002586
|
1/22/2007
|
31,211
|
Additionally,
you have been awarded restricted shares of common stock, par value $.001 per
share, of the Corporation (the “Restricted Stock”).
As of
this date hereof, you have been awarded the following Restricted Stock
grants:
Award
Number
|
Award
Date
|
Number
of Restricted Shares
|
00002027
|
3/9/2005
|
4,000
|
00002197
|
1/17/2006
|
8,438
|
00002603*
|
1/22/2007
|
14,282
|
00002625
|
1/22/2007
|
14,282
|
*
denotes
a performance based grant.
We
hereby
confirm the following:
1.
Section 1(c) of each option agreement/notice of grant relating to the Options
listed above is hereby amended to provide that such Options and the shares
of
common stock subject thereto shall immediately vest in the event that your
employment with the Corporation is terminated by the Corporation “Without Cause”
(as defined in Section 5(d) of the Employment Agreement dated April
8,
2002 between
you and the Corporation (the “Employment Agreement”)) within six (6) months
following a “Change of Control” (as defined in Section 5(f) of the Employment
Agreement) of the Corporation.
2.
Section 3 of each of the notices of grant relating to award numbers 00002027,
00002197, and 00002625 is hereby amended to provide that the shares of
Restricted Stock subject thereto shall immediately vest in the event that your
employment with the Corporation is terminated by the Corporation “Without Cause”
within six (6) months following a “Change of Control” (in each case as so
defined).
3.
Section 3 of the notice of grant relating to award number 00002603 is hereby
amended to provide that in the event your employment with the Corporation is
terminated by the Corporation “Without Cause” upon or after six (6) months
following a “Change of Control” (in each case as so defined), a number of shares
of Restricted Stock subject thereto equal to the Target Number (as defined
in
such notice of grant) shall immediately vest.
2. |
Continuing
Effectiveness of Stock Option Agreements/ Restricted Stock
Awards
|
Except
as
modified herein, the above-referenced award documentation remains in full force
and effect.
3. |
Amendment
to Employment
Agreement
|
This
letter shall serve to amend the April 8, 2002 Employment Agreement between
you
and the Company, as amended January 1, 2004, June 15, 2004, October 18, 2004
and
January 23, 2006 (the "Employment Agreement") in accordance with the following,
which amendment shall be effective as of the date hereof, in the case of
paragraphs a. and f. below, and as of July 1, 2007:
a. |
Duties.
|
The
first
sentence of Section 2 of the Employment Agreement is hereby amended to read
as
follows:
The
Executive shall serve as the Chief Operating Officer of the Company and
President & CEO of the Company's inVentiv Commercial Services division and
shall perform such duties, functions and responsibilities as are associated
with
and incident to that position and as the Company may, from time to time, require
of him. The Executive shall assume responsibility as the Chief Operating Officer
of the Company no later than July 1, 2007.
b. |
Base
Salary.
|
The
first
sentence of Section 3(a) of the Employment Agreement is hereby amended to read
as follows:
The
Company shall pay the Executive a base salary at an annual rate of $425,000
payable at such times and in accordance with the Company's customary payroll
practices as they may be adopted or modified from time to time.
c. |
Bonus.
|
The
last
sentence of Section 3 (c) of
the
Employment Agreement is hereby amended to read as follows:
If
the
Executive remains employed through December 31, 2007, the Executive will be
guaranteed a minimum bonus payout of $150,000 for 2007.
d. |
Termination
Without Cause or for Good
Reason.
|
Section
6
(c) of
the
Employment Agreement is hereby amended to read as follows:
(i)
If
the Executive's employment hereunder is terminated by the Company Without Cause
pursuant to Section 5(a)(iv) above or For Good Reason pursuant to Section 5
(a)(v) the Company shall award the Executive severance benefits, subject to
the
terms and conditions of this Agreement and of The Ventiv Health, Inc. Severance
Benefit Plan, if applicable as follows: a lump sum payment of fifty two (52)
weeks of the Executive’s base pay, minus such deductions as may be required by
law or reasonably requested by the Executive to be paid out immediately. If
Executive has not secured a new position with a competitive company in the
Pharma Services arena within 52-weeks from his termination, the Executive will
receive up to an additional twenty six (26) weeks of Executive’s base pay
commencing on the first anniversary of the effective date of the termination
as
long as he has not been employed by, or otherwise rendered services, directly
or
indirectly, in any capacity to, a company in the pharma services arena prior
to
such first anniversary and continues to be refrained from being so employed
or
otherwise rendering such services during such additional 26-week period. The
additional twenty six (26) weeks of Executive’s base pay will be paid bi-weekly,
reduced by such deductions as may be required by law or reasonably requested
by
the Executive. In order to be eligible to receive any severance payment pursuant
to this paragraph 6(c)(i), the Executive must sign, prior to receiving such
severance payment, a valid release and waiver of all claims against the Company
relating to the executive’s employment or the termination thereof, in a format
to be determined by the Company. No payment shall be made hereunder until at
least eight (8) days following the execution and delivery by the Executive
of
the valid release and waiver.
(ii)
If
the Executive, on the one hand and either the Chief Executive Officer or the
President of the Company, on the other, agree in writing that the Executive's
employment shall terminate pursuant to this Section 6(c)(ii), then (x) the
Executive acknowledges that such termination shall be deemed a resignation
without Good Reason and agrees that the Company shall not have any obligation
to
pay severance as described in Section 6(c)(i), (y) such resignation shall be
effective on the later of (I) July 1, 2008 and (II) the expiration of the notice
period provided for in Section 6(e) (measured from the date of such written
agreement) and (z) the Company shall award the Executive termination benefits,
subject to the terms and conditions of this Agreement and of the inVentiv
Health, Inc. Severance Benefit Plan, if applicable, as follows: a lump sum
payment of Six (6) months of the Executive’s base pay, minus such deductions as
may be required by law or reasonably requested by the Executive to be paid
out
immediately. In order to be eligible to receive any termination benefit pursuant
to this paragraph 6(c)(ii), the Executive must sign, prior to receiving such
termination benefit, a valid release and waiver of all claims against the
Company relating to the executive’s employment or the termination thereof, in a
format to be determined by the Company. No payment shall be made hereunder
until
at least eight (8) days following the execution and delivery by the Executive
of
the valid release and waiver.
e. |
Notice
of Resignation
|
The
following is added as Section 6 (e) of
the
Employment Agreement:
e.
The
Executive shall give the Company one (1) months notice prior to any resignation
with the exception of resignation pursuant to Section 6(c)(ii). If the Executive
resigns pursuant to Section 6(c)(ii), the Executive will give the company two
(2) Months notice of the effective date of the resignation.
f.
Continuing Effectiveness
of Employment Agreement
Except
as
modified herein, the Employment Agreement dated April 8, 2002, shall remain
in
full force and effect in accordance with their respective terms.
Very
truly yours,
INVENTIV
HEALTH, INC.
By:
_/s/
Eran Broshy_________________
Xxxx
Xxxxxx
Chairman
& CEO
Accepted
and agreed to by:__/s/
Xxxxxxx Herring_________ Dated:______________ Xxxxxxx
Xxxxxxx