{"id":38976,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/employment-agreement-bio-technology-general-corp-and-ernest-l.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"employment-agreement-bio-technology-general-corp-and-ernest-l","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/employment-agreement-bio-technology-general-corp-and-ernest-l.html","title":{"rendered":"Employment Agreement – Bio-Technology General Corp. and Ernest L. Kelly"},"content":{"rendered":"
BIO\u0096TECHNOLOGY GENERAL CORP.<\/font><\/b><\/p>\n\n
Employment\n\nAgreement<\/font><\/b><\/p>\n\n\n\n
for<\/font><\/b><\/p>\n\n\n\n
Ernest\n\nL. Kelly<\/font><\/b><\/p>\n\n\n\n
Senior\n\nVice President, Quality Assurance,<\/font><\/b><\/p>\n\n\n\n
Quality\n\nControl and Regulatory Affairs<\/font><\/b><\/p>\n\n\n\n
 <\/font><\/p>\n\n\n\n\n\n
\n\n\n\n
\n\n\n\n<\/font><\/div>\n\n\n\n\n\n
\n\n<\/font>\n\n\n\n
 <\/p>\n\n\n\n
Contents<\/font><\/b><\/p>\n\n\n\n
 <\/font><\/p>\n\n\n\n<\/pre>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n
Article 1. Term of<\/p>\n
  Employment<\/a><\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n<\/tr>\n
\n
Article<\/p>\n
  2. Definitions<\/a><\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n<\/tr>\n
\n
Article 3.<\/p>\n
  Position and Responsibilities<\/a><\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n<\/tr>\n
\n
Article 4. Standard of Care<\/a><\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n<\/tr>\n
\n
Article<\/p>\n
  5. Compensation<\/a><\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n<\/tr>\n
\n
Article<\/p>\n
  6. Expenses<\/a><\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n<\/tr>\n
\n
Article 7.<\/p>\n
  Employment Terminations<\/a><\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n<\/tr>\n
\n
Article 8. Change in<\/p>\n
  Control<\/a><\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n<\/tr>\n
\n
Article<\/p>\n
  9. Assignment<\/a><\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n<\/tr>\n
\n
Article 10. Legal<\/p>\n
  Fees and Notice<\/a><\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n<\/tr>\n
\n
Article<\/p>\n
  11. Confidentiality and Noncompetition<\/a><\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n<\/tr>\n
\n
Article 12.<\/p>\n
  Outplacement Assistance<\/a><\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n<\/tr>\n
\n
Article 13. Miscellaneous<\/a><\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n<\/tr>\n
\n
Article<\/p>\n
  14. Governing Law<\/a><\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n<\/tr>\n<\/table>\n
 <\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
Employment Agreement<\/font><\/b><\/p>\n
 <\/font><\/p>\n
This Agreement is made, entered into, and is effective<\/p>\n
as of the Effective Date, by and between the Company and the Executive.<\/font><\/p>\n
 <\/font><\/p>\n
Article 1. Term of Employment<\/font><\/b><\/a><\/p>\n
 <\/font><\/p>\n
1.1<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The<\/p>\n
Company hereby agrees to employ the Executive and the Executive hereby agrees<\/p>\n
to serve the Company in accordance with the terms and conditions set forth<\/p>\n
herein, for a period of three (3) years, commencing as of the Effective Date.<\/p>\n
 <\/font><\/p>\n
1.2<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Commencing<\/p>\n
on the third (3rd<\/sup>) anniversary of the Effective Date, and each<\/p>\n
anniversary thereafter, the term of this Agreement shall automatically be<\/p>\n
extended for one (1) additional year, unless at least ninety (90) days prior to<\/p>\n
such anniversary, the Company or the Executive shall have given notice in<\/p>\n
accordance with Section 10.2 hereof that it or he does not wish to extend the term<\/p>\n
of the Agreement.<\/p>\n
 <\/font><\/p>\n
Article 2. Definitions<\/font><\/b><\/a><\/p>\n
 <\/font><\/p>\n
2.1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Agreement\u0094<\/font><\/b> means this<\/p>\n
Employment Agreement.<\/font><\/p>\n
 <\/font><\/p>\n
2.2<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>\u0093Annual<\/p>\n
Bonus\u0094<\/font><\/b> means the annual bonus to be paid to the Executive in<\/p>\n
accordance with the Company\u0092s annual bonus program as described in Section 5.3<\/p>\n
herein.<\/p>\n
 <\/font><\/p>\n
2.3<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>\u0093Base<\/p>\n
Salary\u0094<\/font><\/b> means the salary of record paid to the Executive as annual<\/p>\n
salary, pursuant to Section 5.2, excluding amounts received under incentive or<\/p>\n
other bonus plans, whether or not deferred.<\/p>\n
 <\/font><\/p>\n
2.4<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>\u0093Beneficial<\/p>\n
Owner\u0094<\/font><\/b> shall have the meaning ascribed to such term in Rule<\/p>\n
13d-3 of the General Rules and Regulations under the Securities Exchange Act.<\/p>\n
 <\/font><\/p>\n
2.5<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>\u0093Beneficiary<\/font><\/b>\u0094<\/p>\n
means the persons or entities designated or deemed designated by the Executive<\/p>\n
pursuant to Section 13.6 herein.<\/p>\n
 <\/font><\/p>\n
2.6\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Board\u0094 <\/font><\/b>or \u0093Board of<\/p>\n
Directors\u0094<\/font><\/b> means the Board of Directors of the Company.<\/font><\/p>\n
 <\/font><\/p>\n
2.7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Cause\u0094 <\/font><\/b>means:<\/font><\/p>\n
 <\/font><\/p>\n
(a)\u00a0\u00a0\u00a0\u00a0 Executive materially breached any of the<\/p>\n
terms of this Agreement and failed to correct such breach within fifteen (15)<\/p>\n
days after written notice thereof from the Company;<\/font><\/p>\n
 <\/font><\/p>\n
1<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
(b)\u00a0\u00a0\u00a0\u00a0 Executive has been convicted of a criminal<\/p>\n
offense involving a felony giving rise to a sentence of imprisonment;<\/font><\/p>\n
 <\/font><\/p>\n
(c)\u00a0\u00a0\u00a0\u00a0 Executive has breached a fiduciary trust<\/p>\n
for the purpose of gaining a personal profit, including, without limitation,<\/p>\n
embezzlement; or<\/font><\/p>\n
 <\/font><\/p>\n
(d)\u00a0\u00a0\u00a0\u00a0 Despite adequate warnings, Executive<\/p>\n
intentionally and willfully failed to perform reasonably assigned duties within<\/p>\n
the normal and customary scope of the Position.<\/font><\/p>\n
 <\/font><\/p>\n
2.8<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>\u0093Change in<\/p>\n
Control\u0094 or \u0093CIC\u0094<\/font><\/b> of the Company shall be deemed to have occurred as<\/p>\n
of the first day that any one or more of the following conditions is satisfied:<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Any consolidation or merger in which the Company<\/p>\n
is not the continuing or surviving entity or pursuant to which shares of the<\/p>\n
Common Stock would be converted into cash, securities, or other property, other<\/p>\n
than (i) a merger of the Company in which the holders of the Common Stock<\/p>\n
immediately prior to the merger have the same proportionate ownership of common<\/p>\n
stock of the surviving corporation immediately after the merger, or (ii) a<\/p>\n
consolidation or merger which would result in the voting securities of the<\/p>\n
Company outstanding immediately prior thereto continuing to represent (by being<\/p>\n
converted into voting securities of the continuing or surviving entity) more<\/p>\n
than 50% of the combined voting power of the voting securities of the<\/p>\n
continuing or surviving entity immediately after such consolidation  or merger and which would result in the members<\/p>\n
of the Board immediately prior to such consolidation or merger (including for<\/p>\n
this purpose any individuals whose election or nomination for election was<\/p>\n
approved by a vote of at least two-thirds of such members) constituting a<\/p>\n
majority of the Board (or equivalent governing body) of the continuing or<\/p>\n
surviving entity immediately after such consolidation or merger;<\/p>\n
 <\/font><\/p>\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Any<\/p>\n
sale, lease, exchange, or other transfer (in one transaction or a series of<\/p>\n
related transactions) of all or substantially all the Company\u0092s assets;<\/p>\n
 <\/font><\/p>\n
(c)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The<\/p>\n
Company\u0092s stockholders approve any plan or proposal for the liquidation or<\/p>\n
dissolution of the Company;<\/font><\/p>\n
 <\/font><\/p>\n
(d)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Any<\/p>\n
Person shall become the Beneficial Owner of forty (40) percent or more of the<\/p>\n
Common Stock other than pursuant to a plan or arrangement entered into by such Person<\/p>\n
and the Company; or<\/p>\n
 <\/font><\/p>\n
(e)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>During<\/p>\n
any period of two consecutive years, individuals who at the beginning of such<\/p>\n
period constitute the entire Board of Directors shall cease for any reason to<\/p>\n
constitute a majority of the Board unless the election or nomination for<\/p>\n
election by the Company\u0092s stockholders of each new director was approved by a<\/p>\n
vote of at lest two-thirds of the directors then still in office who were<\/p>\n
directors at the beginning of the period.<\/p>\n
 <\/font><\/p>\n
2.9<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>\u0093CIC<\/p>\n
Severance Benefits\u0094 <\/font><\/b>means the payment of severance compensation<\/p>\n
associated with a Qualifying Termination occurring subsequent to a Change in<\/p>\n
Control, as described in Section 8.3.<\/p>\n
 <\/font><\/p>\n
2<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
2.10\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Code\u0094 <\/font><\/b>means the United<\/p>\n
States Internal Revenue Code of 1986, as amended.<\/font><\/p>\n
 <\/font><\/p>\n
2.11\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Common Stock\u0094<\/font><\/b> means the<\/p>\n
common stock of the Company, $.01 par value.<\/font><\/p>\n
 <\/font><\/p>\n
2.12<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>\u0093Compensation<\/p>\n
Committee\u0094<\/font><\/b> means the Compensation and Stock Option Committee of the<\/p>\n
Board, or any other committee appointed by the Board to perform the functions<\/p>\n
of such\u00a0 committee.<\/p>\n
 <\/font><\/p>\n
2.13<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>\u0093Company\u0094<\/font><\/b><\/p>\n
means Bio-Technology General Corp., a Delaware corporation, or any Successor<\/p>\n
Company thereto as provided in Section 9.1 herein.<\/p>\n
 <\/font><\/p>\n
2.14\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Director\u0094<\/font><\/b> means any<\/p>\n
individual who is a member of the Board of Directors of the Company.<\/font><\/p>\n
 <\/font><\/p>\n
2.15<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>\u0093Disability\u0094<\/font><\/b><\/p>\n
or \u0093Disabled\u0094<\/font><\/b><\/p>\n
means for all purposes of this Agreement, the meaning ascribed to such term in<\/p>\n
the Company\u0092s long-term disability plan, or in any successor to such plan.<\/p>\n
 <\/font><\/p>\n
2.16\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Effective Date\u0094<\/font><\/b> means<\/p>\n
January 1, 2002.<\/font><\/p>\n
 <\/font><\/p>\n
2.17\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Effective Date of Termination\u0094 <\/font><\/b>means<\/p>\n
the date on which a termination of the Executive\u0092s employment occurs.<\/font><\/p>\n
 <\/font><\/p>\n
2.18\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Employment Date\u0094 <\/font><\/b>means<\/p>\n
February 5, 1996.<\/font><\/p>\n
 <\/font><\/p>\n
2.19<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>\u0093Executive\u0094 <\/font><\/b>means<\/p>\n
Ernest L. Kelly, Ph.D. who, as of the Effective Date, resides at 159 Pine Lane,<\/p>\n
Yardley, Pennsylvania 19067.<\/p>\n
 <\/font><\/p>\n
2.20\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Good Reason\u0094 <\/font><\/b>shall mean,<\/p>\n
without the Executive\u0092s express written consent, the occurrence of any one or<\/p>\n
more of the <\/font><\/p>\n
following:<\/font><\/p>\n
 <\/font><\/p>\n
(a)\u00a0\u00a0\u00a0\u00a0 Reducing the Executive\u0092s Base Salary;<\/font><\/p>\n
 <\/font><\/p>\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Failing to maintain<\/p>\n
Executive\u0092s amount of benefits under or relative level of participation in the<\/p>\n
Company\u0092s employee benefit or retirement plans, policies, practices, or<\/p>\n
arrangements in which the Executive participates as of the Effective Date of<\/p>\n
this Agreement, including any perquisite program; provided, however, that any<\/p>\n
such change that applies consistently to all executive officers of the Company<\/p>\n
or is required by applicable law shall not be deemed to constitute Good Reason;<\/p>\n
 <\/font><\/p>\n
(c)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Failing to require<\/p>\n
any Successor Company to assume and agree to perform the Company\u0092s obligations<\/p>\n
hereunder;<\/p>\n
 <\/font><\/p>\n
(d)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The occurrence of<\/p>\n
any one or more of the following events on or after the announcement of the<\/p>\n
transaction which leads to the CIC and up to twenty\u0096four (24) calendar<\/p>\n
months following the effective date of a CIC:<\/p>\n
 <\/font><\/p>\n
3<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
(1)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Requiring Executive<\/p>\n
to be based at a location that requires the Executive to travel at least an<\/p>\n
additional thirty-five (35) miles per day;<\/p>\n
 <\/font><\/p>\n
(2)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Requiring Executive<\/p>\n
to report to a position which is at a lower level than the highest level to<\/p>\n
which Executive reported within the six (6) months prior to the CIC;<\/p>\n
 <\/font><\/p>\n
(3)\u00a0\u00a0\u00a0\u00a0 Demoting Executive to a level lower than<\/p>\n
Executive\u0092s level in the Company as of the Effective Date.<\/font><\/p>\n
 <\/font><\/p>\n
2.21<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>\u0093Notice of<\/p>\n
Termination\u0094 <\/font><\/b>means a written notice  <\/font><\/b>which shall indicate the<\/p>\n
specific termination provision in this Agreement relied upon, and shall set<\/p>\n
forth in reasonable detail the facts and circumstances claimed to provide a<\/p>\n
basis for termination of the Executive\u0092s employment under the provisions so<\/p>\n
indicated, and, where applicable, shall specifically include notice pursuant to<\/p>\n
Section 1.2 that Company has elected not to renew this Agreement.<\/p>\n
 <\/font><\/p>\n
2.22<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>\u0093Person\u0094 <\/font><\/b>shall<\/p>\n
have the meaning ascribed to such term in Section 3(a)(9) of the<\/p>\n
Securities Exchange Act and used in Sections 13(d) and 14(d) thereof,<\/p>\n
including a \u0093group\u0094 as defined in Section 13(d) thereof.<\/p>\n
 <\/font><\/p>\n
2.23\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Position\u0094<\/font><\/b> shall have the<\/p>\n
meaning ascribed to it in Section 3.1.<\/font><\/p>\n
 <\/font><\/p>\n
2.24<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>\u0093Qualifying<\/p>\n
Termination\u0094<\/font><\/b> means any of the events described in Section 8.2<\/p>\n
herein, the occurrence of which triggers the payment of CIC Severance Benefits<\/p>\n
hereunder.<\/p>\n
 <\/font><\/p>\n
2.25\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Securities Exchange Act\u0094 <\/font><\/b>means<\/p>\n
the United States Securities Exchange Act of 1934, as amended.<\/font><\/p>\n
 <\/font><\/p>\n
2.26\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Service Multiple\u0094 <\/font><\/b>shall have<\/p>\n
the meaning ascribed to it in Section 7.4(c).<\/font><\/p>\n
 <\/font><\/p>\n
2.27<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>\u0093Severance<\/p>\n
Benefits\u0094 <\/font><\/b>means the payment of severance compensation as provided in<\/p>\n
Sections 7.4 and 7.6 herein, and not payable due to a Change in Control of<\/p>\n
the Company.<\/p>\n
 <\/font><\/p>\n
2.28\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Successor Company\u0094 <\/font><\/b>shall<\/p>\n
have the meaning ascribed to it in Section 9.1.<\/font><\/p>\n
 <\/font><\/p>\n
2.29\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u0093Term\u0094 <\/font><\/b>shall mean that period<\/p>\n
of time commencing on the Effective Date and ending on the Effective Date of<\/p>\n
Termination.<\/font><\/p>\n
 <\/font><\/p>\n
Article<\/p>\n
3. Position and Responsibilities<\/font><\/b><\/a><\/p>\n
 <\/font><\/p>\n
3.1<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>During<\/p>\n
the term of this Agreement, the Executive agrees to serve as Senior Vice<\/p>\n
President, Quality Assurance, Quality Control, and Regulatory Affairs of the<\/p>\n
Company or in such other position which Executive shall agree to accept or to<\/p>\n
which Executive shall be promoted during the Term and Executive shall report<\/p>\n
directly to the President or such other position<\/p>\n
 <\/font><\/p>\n
4<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
which is at a higher position or level in the Company<\/p>\n
than Executive and as shall be determined by the Chief Executive Officer in his<\/p>\n
sole discretion, and shall maintain the level of duties and responsibilities as<\/p>\n
in effect as of the Effective Date, or such higher level of duties and<\/p>\n
responsibilities as Executive may be assigned during the Term (the \u0093Position\u0094).<\/font><\/p>\n
 <\/font><\/p>\n
 <\/font><\/p>\n
4.1<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>During<\/p>\n
the term of this Agreement, the Executive agrees to devote substantially his<\/p>\n
full time, attention, and energies to the Company\u0092s business and shall not be<\/p>\n
engaged in any other business activity, whether or not such business activity<\/p>\n
is pursued for gain, profit, or other pecuniary advantage unless such business<\/p>\n
activity is approved by the Compensation Committee (or, in the event the<\/p>\n
Compensation Committee ceases to exist, the Board).\u00a0 However, subject to Article 11 herein and approval by the<\/p>\n
Compensation Committee (or the Board, as the case may be), the Executive may<\/p>\n
serve as a director of other companies so long as such service is not injurious<\/p>\n
to the Company.<\/p>\n
 <\/font><\/p>\n
Article 5. Compensation<\/font><\/b><\/a><\/p>\n
 <\/font><\/p>\n
5.1<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>As<\/p>\n
remuneration for all services to be rendered by the Executive during the term<\/p>\n
of this Agreement, and as consideration for complying with the covenants<\/p>\n
herein, the Company shall pay and provide to the Executive those items set<\/p>\n
forth in Sections 5.2 through 5.8.<\/p>\n
 <\/font><\/p>\n
5.2<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Base Salary<\/font><\/b>.  <\/font><\/b>The<\/p>\n
Company shall pay the Executive a Base Salary in an amount which shall be<\/p>\n
established from time to time by the Board of Directors of the Company or the<\/p>\n
Board\u0092s designee; provided, however, that such Base Salary shall not be less<\/p>\n
than TWO-HUNDRED-TWENTY-FIVE-THOUSAND DOLLARS (US$225,000) per year.<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>This Base Salary<\/p>\n
shall be paid to the Executive in equal installments throughout the year,<\/p>\n
consistent with the normal payroll practices of the Company.<\/p>\n
 <\/font><\/p>\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The Base Salary<\/p>\n
shall be reviewed at least annually following the Effective Date of this<\/p>\n
Agreement, while this Agreement is in force, to ascertain whether, in the<\/p>\n
judgment of the Board or the Board\u0092s designee, such Base Salary should be<\/p>\n
increased based primarily on the performance of the Executive during the year.<\/p>\n
If so increased, the Base Salary as stated above shall, likewise, be increased<\/p>\n
for all purposes of this Agreement and shall not, in any event, be decreased in<\/p>\n
any year.<\/p>\n
 <\/font><\/p>\n
5.3<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Annual Bonus<\/font><\/b>.  <\/font><\/b>In<\/p>\n
addition to his Base Salary, the Executive shall be entitled to participate in<\/p>\n
the Company\u0092s annual short-term incentive program, as such program may exist<\/p>\n
from time to time, at a level commensurate with the Position.\u00a0 The percentage of Base Salary targeted as<\/p>\n
annual short-term incentive compensation shall be established for the Position<\/p>\n
by the Company\u0092s Compensation Committee in its sole discretion (the \u0093targeted<\/p>\n
Annual Bonus <\/p>\n
 <\/font><\/p>\n
5<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
award\u0094). Executive acknowledges that the amount of<\/p>\n
annual short-term incentive, if any, to be awarded shall be at the sole discretion<\/p>\n
of the Company\u0092s Compensation Committee, may be less or more than the targeted<\/p>\n
Annual bonus award, and will be based on a number of factors set in advance by<\/p>\n
the Compensation Committee for each calendar year, including the Company\u0092s<\/p>\n
performance and the Executive\u0092s individual performance. Nothing in this Section<\/p>\n
5.3 shall be construed as obligating the Company or the Board to refrain from<\/p>\n
changing, and\/or amending the short-term incentive program, so long as such<\/p>\n
changes are equally applicable to all executive employees in the Company.<\/font><\/p>\n
 <\/font><\/p>\n
5.4<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Long-Term<\/p>\n
Incentives<\/font><\/b>.  <\/font><\/b>The Executive shall be eligible to<\/p>\n
participate in the Company\u0092s long-term incentive plan, as such shall be amended<\/p>\n
or superseded from time to time provided, however, that nothing in this Section<\/p>\n
5.4 shall be construed as obligating the Company or the Board to refrain from<\/p>\n
changing, and\/or amending the long-term incentive plan, so long as such changes<\/p>\n
are equally applicable to all executive employees in the Company.<\/p>\n
 <\/font><\/p>\n
5.5<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Retirement<\/p>\n
Benefits<\/font><\/b>.  <\/font><\/b>The Company shall provide to the Executive<\/p>\n
participation in any Company qualified defined benefit and defined contribution<\/p>\n
retirement plans as may be established during the term of this Agreement;<\/p>\n
provided, however, that nothing in this Section 5.5 shall be construed as<\/p>\n
obligating the Company to refrain from changing, and\/or amending the<\/p>\n
nonqualified retirement programs, so long as such changes are equally<\/p>\n
applicable to all executive employees in the Company.<\/p>\n
 <\/font><\/p>\n
5.6<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Employee<\/p>\n
Benefits<\/font><\/b>.  <\/font><\/b>During the Term, and as otherwise provided<\/p>\n
within the provisions of each of the respective plans, the Company shall<\/p>\n
provide to the Executive all benefits to which other executives and employees<\/p>\n
of the Company are entitled to receive, as commensurate with the Position,<\/p>\n
subject to the eligibility requirements and other provisions of such<\/p>\n
arrangements as applicable to executives of the Company generally.<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Such benefits shall<\/p>\n
include, but shall not be limited to, group term life insurance, comprehensive<\/p>\n
health and major medical insurance, dental and life insurance,<\/p>\n
and short-term and long-term disability.<\/p>\n
 <\/font><\/p>\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The Executive shall<\/p>\n
likewise participate in any additional benefit as may be established during the<\/p>\n
term of this Agreement, by standard written policy of the Company.<\/p>\n
 <\/font><\/p>\n
5.7<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Vacation.<\/font><\/b>\u00a0 The Executive shall be entitled to such paid<\/p>\n
vacation as is customary for the Position in corporate institutions of similar<\/p>\n
size and character, but in any event not less than twenty (20) paid vacation<\/p>\n
days during each calendar year; provided, however, that without prior written<\/p>\n
approval, Executive may carry forward into the next year no more than ten (10)<\/p>\n
unused vacation days from the current year.<\/p>\n
 <\/font><\/p>\n
5.8<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Perquisites<\/font><\/b>.  <\/font><\/b>The<\/p>\n
Company shall provide to the Executive, at the Company\u0092s expense, all perquisites which the Board may determine<\/p>\n
from time to time to provide; provided, however, that nothing in this<\/p>\n
Section 5.8 shall be construed as obligating the Company or the Board to<\/p>\n
refrain from changing, and\/or amending the perquisite program, so long as such<\/p>\n
changes are equally applicable to all executive employees in the Company.<\/p>\n
 <\/font><\/p>\n
6<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
5.9<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Right to<\/p>\n
Change Plans<\/font><\/b>. The Company shall not be obligated to institute,<\/p>\n
maintain, or refrain from changing, amending, or discontinuing any benefit<\/p>\n
plan, program, or perquisite, so long as such changes are equally applicable to<\/p>\n
all executive employees in the Company.<\/p>\n
 <\/font><\/p>\n
 <\/font><\/p>\n
6.1<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Upon<\/p>\n
presentation of appropriate documentation, the Company shall pay, or reimburse<\/p>\n
the Executive for all ordinary and necessary expenses, in a reasonable amount,<\/p>\n
which the Executive incurs in performing his duties under this Agreement<\/p>\n
including, but not limited to, travel, entertainment, professional dues and<\/p>\n
subscriptions, and all dues, fees, and expenses associated with membership in<\/p>\n
various professional, business, and civic associations and societies.<\/p>\n
 <\/font><\/p>\n
Article<\/p>\n
7. Employment Terminations<\/font><\/b><\/a><\/p>\n
 <\/font><\/p>\n
7.1<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Termination<\/p>\n
Due to Death<\/font><\/b>.  <\/font><\/b>In the event the Executive\u0092s employment is<\/p>\n
terminated while this Agreement is in force by reason of death, the Company\u0092s<\/p>\n
obligations under this Agreement shall immediately expire. Notwithstanding the<\/p>\n
foregoing, the Company shall be obligated to pay to the Executive the<\/p>\n
following:<\/p>\n
 <\/font><\/p>\n
(a)\u00a0\u00a0\u00a0\u00a0 Base Salary through the Effective Date of<\/p>\n
Termination;<\/font><\/p>\n
 <\/font><\/p>\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>An amount equal to<\/p>\n
the Executive\u0092s unpaid targeted Annual Bonus award, established for<\/p>\n
the fiscal year in which such termination is effective, multiplied by a<\/p>\n
fraction, the numerator of which is the number of completed days in the<\/p>\n
then-existing fiscal year through the Effective Date of Termination, and the<\/p>\n
denominator of which is three hundred sixty-five (365);<\/p>\n
 <\/font><\/p>\n
(c)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>All outstanding<\/p>\n
long-term incentive awards shall be subject to the treatment provided under the<\/p>\n
applicable long-term incentive plan of the Company;<\/p>\n
 <\/font><\/p>\n
(d)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Accrued but unused<\/p>\n
vacation pay through the Effective Date of Termination; and<\/p>\n
 <\/font><\/p>\n
(e)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>All other rights<\/p>\n
and benefits the Executive is vested in, pursuant to other plans and programs<\/p>\n
of the Company.<\/p>\n
 <\/font><\/p>\n
(f)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The benefits<\/p>\n
described in Sections 7.1(a) and (d) shall be paid in cash to the Executive in<\/p>\n
a single lump sum as soon as practicable following the Effective Date of<\/p>\n
Termination, but in no event beyond thirty (30) days from such date. All other<\/p>\n
payments due to the Executive upon termination of employment, including those<\/p>\n
in Sections 7.1(b) and (c), shall be paid in accordance with the terms of such<\/p>\n
applicable plans or programs.<\/p>\n
 <\/font><\/p>\n
7<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
(g)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>With the exception<\/p>\n
of the covenants contained in Articles 9 and 14 and Sections 7.1(f), 13.3,<\/p>\n
13.5, and 13.7 herein (which shall survive such termination), the Company and<\/p>\n
the Executive thereafter shall have no further obligations under this<\/p>\n
Agreement.<\/p>\n
 <\/font><\/p>\n
7.2<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Termination<\/p>\n
Due to Disability.<\/font><\/b>\u00a0 In the<\/p>\n
event that the Executive becomes Disabled during the term of this Agreement and<\/p>\n
is, therefore, unable to perform his duties herein for more than<\/p>\n
one hundred eighty (180) total calendar days during any period of twelve<\/p>\n
(12) consecutive months, or in the event of the Board\u0092s reasonable expectation<\/p>\n
that the Executive\u0092s Disability will exist for more than a period of one<\/p>\n
hundred eighty (180) calendar days, the Company shall have the right to<\/p>\n
terminate the Executive\u0092s active employment as provided in this Agreement.<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The Board shall<\/p>\n
deliver written notice to the Executive of the Company\u0092s intent to terminate<\/p>\n
for Disability at least thirty (30) calendar days prior to the Effective Date<\/p>\n
of Termination.<\/p>\n
 <\/font><\/p>\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Such Disability to<\/p>\n
be determined by the Board of Directors of the Company upon receipt of and in<\/p>\n
reliance on competent medical advice from one (1) or more individuals, selected<\/p>\n
by the Board, who are qualified to give such professional medical advice.<\/p>\n
 <\/font><\/p>\n
(c)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>A termination for<\/p>\n
Disability shall become effective upon the end of the thirty (30) day notice<\/p>\n
period. Upon the Effective Date of Termination, the Company\u0092s obligations under<\/p>\n
this Agreement shall immediately expire.<\/p>\n
 <\/font><\/p>\n
(d)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Notwithstanding the<\/p>\n
foregoing, the Company shall be obligated to pay to the Executive the following:<\/p>\n
 <\/font><\/p>\n
(1)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Base Salary through<\/p>\n
the Effective Date of Termination;<\/p>\n
 <\/font><\/p>\n
(2)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>An amount equal to<\/p>\n
the Executive\u0092s unpaid targeted Annual Bonus award, established for<\/p>\n
the fiscal year in which the Effective Date of Termination occurs,<\/p>\n
multiplied by a fraction, the numerator of which is the number of completed<\/p>\n
days in the then-existing fiscal year through the Effective Date of<\/p>\n
Termination, and the denominator of which is three hundred sixty-five (365);<\/p>\n
 <\/font><\/p>\n
(3)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>All outstanding<\/p>\n
long-term incentive awards shall be subject to the treatment provided under the<\/p>\n
applicable long-term incentive plan of the Company;<\/p>\n
 <\/font><\/p>\n
(4)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Accrued but unused<\/p>\n
vacation pay through the Effective Date of Termination; and<\/p>\n
 <\/font><\/p>\n
(5)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>All other rights<\/p>\n
and benefits the Executive is vested in, pursuant to other plans and programs<\/p>\n
of the Company.<\/p>\n
 <\/font><\/p>\n
(e)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The benefits<\/p>\n
described in Sections 7.2(d)(1) and (d)(4) shall be paid in cash to the<\/p>\n
Executive in a single lump sum as soon as practicable following the Effective<\/p>\n
Date of Termination, but in no event beyond thirty (30) days from such date.<\/p>\n
All other payments due to the Executive upon termination of employment,<\/p>\n
including those in Sections <\/p>\n
 <\/font><\/p>\n
8<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
7.2(d)(2) and (d)(3),<\/p>\n
shall be paid in accordance with the terms of such applicable plans or program.<\/font><\/p>\n
 <\/font><\/p>\n
(f)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>With the<\/p>\n
exception of the covenants contained in Articles 8, 9, 11, and 14 and Sections<\/p>\n
7.2(e), 13.3, 13.5, and 13.7 herein (which shall survive such termination), the<\/p>\n
Company and the Executive thereafter shall have no further obligations under<\/p>\n
this Agreement.<\/p>\n
 <\/font><\/p>\n
7.3<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Voluntary<\/p>\n
Termination by the Executive<\/font><\/b>. The Executive may terminate this<\/p>\n
Agreement at any time by giving Notice of Termination to the Board of Directors<\/p>\n
of the Company, delivered at least fourteen (14) calendar days prior to the<\/p>\n
Effective Date of Termination.<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The termination<\/p>\n
automatically shall become effective upon the expiration of the fourteen (14)<\/p>\n
day notice period. Notwithstanding the foregoing, the Company may waive the<\/p>\n
fourteen (14) day notice period; however, the Executive shall be entitled to<\/p>\n
receive all elements of compensation described in Sections 5.1 through 5.6<\/p>\n
for the fourteen (14) day notice period, subject to the eligibility and<\/p>\n
participation requirements of any qualified retirement plan.<\/p>\n
 <\/font><\/p>\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Upon the Effective<\/p>\n
Date of Termination, following the expiration of the fourteen (14) day notice<\/p>\n
period, the Company shall pay the Executive his full Base Salary and accrued<\/p>\n
but unused vacation pay, at the rate then in effect, through the Effective Date<\/p>\n
of Termination, plus all other benefits to which the Executive has a vested<\/p>\n
right at that time (for this purpose, the Executive shall not be paid any<\/p>\n
Annual Bonus with respect to the fiscal year in which voluntary termination<\/p>\n
under this Section occurs).<\/p>\n
 <\/font><\/p>\n
(c)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>With the exception<\/p>\n
of the covenants contained in Articles 8, 9, 11, and 14 and Sections 13.3,<\/p>\n
13.5, and 13.7 herein (which shall survive such termination), the Company and<\/p>\n
the Executive thereafter shall have no further obligations under this<\/p>\n
Agreement.<\/p>\n
 <\/font><\/p>\n
7.4<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Involuntary<\/p>\n
Termination by the Company without Cause<\/font><\/b>. At all times during the<\/p>\n
Term, the Board may terminate the Executive\u0092s employment for reasons other than<\/p>\n
death, Disability, or for Cause, by providing to the Executive a Notice of<\/p>\n
Termination, at least sixty (60) calendar days (ninety (90) calendar days when<\/p>\n
termination is due to non-renewal of this Agreement by the Company pursuant to<\/p>\n
Section 1.2) prior to the Effective Date of Termination; provided, however,<\/p>\n
that such notice shall not preclude the Company from requiring Executive to<\/p>\n
leave the Company immediately upon receipt of such notice.<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Such Notice of<\/p>\n
Termination shall be irrevocable absent express, mutual consent of the parties.<\/p>\n
 <\/font><\/p>\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Upon the Effective<\/p>\n
Date of Termination (not a Qualifying Termination), following the expiration of<\/p>\n
the sixty (60) day notice period (90 days in the case of non-renewal), the<\/p>\n
Company shall pay and provide to the Executive:<\/p>\n
 <\/font><\/p>\n
(1)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>An amount equal to<\/p>\n
the Service Multiple times the Executive\u0092s annual Base Salary established for<\/p>\n
the fiscal year in which the Effective Date of Termination occurs;<\/p>\n
 <\/font><\/p>\n
9<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
(2)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>An amount equal to<\/p>\n
the Service Multiple times the Executive\u0092s targeted Annual Bonus award<\/p>\n
established for the fiscal year in which the Effective Date of Termination<\/p>\n
occurs; provided, however, that no payment shall be made under this Section<\/p>\n
7.4(b)(2) if the Effective Date of Termination is less than twelve (12) months<\/p>\n
after the Employment Date;<\/p>\n
 <\/font><\/p>\n
(3)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>A continuation of<\/p>\n
the welfare benefits of health care, life and accidental death and<\/p>\n
dismemberment, and disability insurance coverage (or if continuation under the<\/p>\n
Company\u0092s then current plans is not allowed, then provision at the Company\u0092s<\/p>\n
expense but subject to payment by Executive of those payments which Executive<\/p>\n
would have been obligated to make under the Company\u0092s then current plan, of<\/p>\n
substantially similar welfare benefits from one or more third party providers)<\/p>\n
after the Effective Date of Termination for a number of months equal to the<\/p>\n
Service Multiple times twelve (12). These benefits shall be provided to the<\/p>\n
Executive at the same coverage level as in effect as of the Effective Date of<\/p>\n
Termination, and at the same premium cost to the Executive which was paid by<\/p>\n
the Executive at the time such benefits were provided. However, in the event<\/p>\n
the premium cost and\/or level of coverage shall change for all employees of the<\/p>\n
Company, or for management employees with respect to supplemental benefits, the<\/p>\n
cost and\/or coverage level, likewise, shall change for the Executive in a<\/p>\n
corresponding manner. The continuation of these welfare benefits shall be<\/p>\n
discontinued if prior to the expiration of the period, the Executive has<\/p>\n
available substantially similar benefits at a comparable cost to the Executive<\/p>\n
from a subsequent employer, as determined by the Compensation Committee (or, in<\/p>\n
the event the Compensation Committee ceases to exist, the Board);<\/p>\n
 <\/font><\/p>\n
(4)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>All outstanding<\/p>\n
long-term incentive awards shall be subject to the treatment provided under the<\/p>\n
applicable long-term incentive plan of the Company;<\/p>\n
 <\/font><\/p>\n
(5)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>An amount equal to<\/p>\n
the Executive\u0092s unpaid Base Salary and accrued but unused vacation pay through<\/p>\n
the Effective Date of Termination; and<\/p>\n
 <\/font><\/p>\n
(6)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>All other benefits<\/p>\n
to which the Executive has a vested right at the time, according to the<\/p>\n
provisions of the governing plan or program.<\/p>\n
 <\/font><\/p>\n
(c)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>For purposes of<\/p>\n
this Section 7.4, the term \u0093Service Multiple\u0094 shall be equal to the quotient<\/p>\n
resulting from a formula the numerator of which is the lesser of (a) full<\/p>\n
number of completed months that have elapsed since the Employment Date (but not<\/p>\n
less than 6 months) and (b) eighteen (18) and the denominator of which is<\/p>\n
twelve (12);<\/p>\n
 <\/font><\/p>\n
(d)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>In the event that<\/p>\n
the Board terminates the Executive\u0092s employment without Cause on or after the<\/p>\n
date of the announcement of the transaction which leads to a CIC, the Executive<\/p>\n
shall be entitled to the CIC Severance Benefits as provided in Section 8.3<\/p>\n
in lieu of the Severance Benefits outlined in this Section 7.4.<\/p>\n
 <\/font><\/p>\n
(e)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Payment of all of<\/p>\n
the benefits described in Section 7.4(b)(1) shall be paid in cash to the<\/p>\n
Executive in equal bi-weekly installments over a period of consecutive months<\/p>\n
equal to <\/p>\n
 <\/font><\/p>\n
10<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
the Service Multiple times twelve (12) and beginning<\/p>\n
on the fifteenth day of the month following the month in which the Effective<\/p>\n
Date of Termination occurs.<\/font><\/p>\n
 <\/font><\/p>\n
(f)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Payment of all<\/p>\n
but forty thousand dollars ($40,000) of the benefits described in<\/p>\n
Section 7.4(b)(2) shall be paid in cash to the Executive in a single lump<\/p>\n
sum as soon as practicable following the Effective Date of Termination, but in<\/p>\n
no event beyond thirty (30) days from such date.\u00a0 The forty thousand dollars ($40,000) which was withheld shall be<\/p>\n
paid in cash to the Executive in a single lump sum at the end of the twelve<\/p>\n
(12) month restrictive period set forth in Sections 11.2 and 11.3 of this<\/p>\n
Agreement.<\/p>\n
 <\/font><\/p>\n
(g)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Except as<\/p>\n
specifically provided in Section 7.4(e) and (f), all other payments due to the<\/p>\n
Executive upon termination of employment shall be paid in accordance with the<\/p>\n
terms of such applicable plans or programs.<\/p>\n
 <\/font><\/p>\n
(h)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>With the exception<\/p>\n
of the covenants contained in Articles 8, 9, 10, 11, 12 and 14 and Sections<\/p>\n
7.4, 13.3, 13.5, and 13.7 (which shall survive such termination), the Company<\/p>\n
and the Executive thereafter shall have no further obligations under this<\/p>\n
Agreement.<\/p>\n
 <\/font><\/p>\n
(i)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Notwithstanding<\/p>\n
anything herein to the contrary, the Company\u0092s payment obligations under this<\/p>\n
Section 7.4 shall be offset by any amounts that the Company is required to pay<\/p>\n
to the Executive under a national statutory severance program applicable to<\/p>\n
such Executive.<\/p>\n
 <\/font><\/p>\n
7.5<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Termination<\/p>\n
for Cause<\/font><\/b>. Nothing in this Agreement shall be construed to prevent<\/p>\n
the Board from terminating the Executive\u0092s employment under this Agreement for<\/p>\n
Cause.<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>To be effective,<\/p>\n
the Notice of Termination must set forth in reasonable detail the facts and<\/p>\n
circumstances claimed to provide a basis for such termination for Cause.<\/p>\n
 <\/font><\/p>\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>In the event this<\/p>\n
Agreement is terminated by the Board for Cause, the Company shall pay the<\/p>\n
Executive his Base Salary and accrued vacation pay through the Effective Date<\/p>\n
of Termination, and the Executive shall immediately thereafter forfeit all<\/p>\n
rights and benefits (other than vested benefits) he would otherwise have been<\/p>\n
entitled to receive under this Agreement. The Company and the Executive<\/p>\n
thereafter shall have no further obligations under this Agreement with the<\/p>\n
exception of the covenants contained in Articles 9, 10, 11, and 14 and Sections<\/p>\n
13.3, 13.5, and 13.9 herein (which shall survive such termination).<\/p>\n
 <\/font><\/p>\n
7.6<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Termination<\/p>\n
for Good Reason<\/font><\/b>.  <\/font><\/b>Except where Section 2.20(d) is<\/p>\n
applicable, this Section 7.6 shall only become effective when at least twelve<\/p>\n
(12) months have elapsed since the Employment Date.\u00a0\u00a0 Prior to this Section 7.6 becoming effective, any notice of<\/p>\n
termination by Executive may only be given pursuant to Section 7.3.\u00a0 The Executive shall have sixty (60) days<\/p>\n
from the date he learns of action taken by the Company that allows the<\/p>\n
Executive to terminate his employment for Good Reason to provide the Board with<\/p>\n
a Notice of Termination.<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The Notice of<\/p>\n
Termination must set forth in reasonable detail the facts and circumstances<\/p>\n
claimed to provide a basis for such Good Reason termination.<\/p>\n
 <\/font><\/p>\n
11<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The Company shall<\/p>\n
have thirty (30) days to cure such Company action following receipt of the<\/p>\n
Notice of Termination.<\/p>\n
 <\/font><\/p>\n
(c)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The Executive is<\/p>\n
required to continue his employment for the sixty (60) day period following the<\/p>\n
date in which he provided the Notice of Termination to the Board. The Company<\/p>\n
may waive the sixty (60) day notice period; however, the Executive shall be<\/p>\n
entitled to receive all elements of compensation described in Sections 5.1<\/p>\n
through 5.6 for the sixty (60) day notice period, subject to the eligibility<\/p>\n
and participation requirements of any qualified retirement plan.<\/p>\n
 <\/font><\/p>\n
(d)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Upon a termination<\/p>\n
of the Executive\u0092s employment for Good Reason during the Term, and following<\/p>\n
the expiration of the sixty (60) day notice period, the Company shall pay and<\/p>\n
provide to the Executive the following:<\/p>\n
 <\/font><\/p>\n
(1)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>An amount equal to<\/p>\n
one-and-one-half (1.5) times the Executive\u0092s annual Base Salary established for<\/p>\n
the fiscal year in which the Effective Date of Termination occurs;<\/p>\n
 <\/font><\/p>\n
(2)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>An amount equal to<\/p>\n
one-and-one-half (1.5) times the Executive\u0092s targeted Annual Bonus award<\/p>\n
established for the fiscal year in which the Effective Date of Termination<\/p>\n
occurs;<\/p>\n
 <\/font><\/p>\n
(3)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>A continuation of<\/p>\n
the welfare benefits of health care, life and accidental death and dismemberment,<\/p>\n
and disability insurance coverage for one-and-one-half (1.5) years after the<\/p>\n
Effective Date of Termination (or if continuation under the Company\u0092s then<\/p>\n
current plans is not allowed, then provision at the Company\u0092s expense but<\/p>\n
subject to payment by Executive of those payments which Executive would have<\/p>\n
been obligated to make under the Company\u0092s then current plan, of substantially<\/p>\n
similar welfare benefits from one or more third party providers). These<\/p>\n
benefits shall be provided to the Executive at the same coverage level, as in<\/p>\n
effect as of the Effective Date of Termination and at the same premium cost to<\/p>\n
the Executive which was paid by the Executive at the time such benefits were<\/p>\n
provided. However, in the event the premium cost and\/or level of coverage shall<\/p>\n
change for all employees of the Company, or for management employees with<\/p>\n
respect to supplemental benefits, the cost and\/or coverage level, likewise,<\/p>\n
shall change for the Executive in a corresponding manner. The continuation of<\/p>\n
these welfare benefits shall be discontinued prior to the end of the<\/p>\n
one-and-one-half (1.5) year period in the event the Executive has available<\/p>\n
substantially similar benefits at a comparable cost to the Executive from a<\/p>\n
subsequent employer, as determined by the Compensation Committee (or, in the<\/p>\n
event the Compensation Committee ceases to exist, the Board);<\/p>\n
 <\/font><\/p>\n
(4)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>All outstanding<\/p>\n
long-term incentive awards shall be subject to the treatment provided under the<\/p>\n
applicable long-term incentive plan of the Company;<\/p>\n
 <\/font><\/p>\n
(5)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>An amount equal to<\/p>\n
the Executive\u0092s unpaid Base Salary and accrued but unused vacation pay through<\/p>\n
the Effective Date of Termination; and<\/p>\n
 <\/font><\/p>\n
(6)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>All other benefits<\/p>\n
to which the Executive has a vested right at the time, according to the<\/p>\n
provisions of the governing plan or program.<\/p>\n
 <\/font><\/p>\n
12<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
(e)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>In the event of<\/p>\n
termination of Executive\u0092s employment for Good Reason on or after the date of<\/p>\n
the announcement of the transaction which leads to the CIC and up to<\/p>\n
twenty-four (24) months following the date of the CIC, the Executive shall be<\/p>\n
entitled to the CIC Severance Benefits as provided in Section 8.3 in lieu<\/p>\n
of the Severance Benefits outlined in this Section 7.6.<\/p>\n
 <\/font><\/p>\n
(f)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The Executive\u0092s<\/p>\n
right to terminate employment for Good Reason shall not be affected by the<\/p>\n
Executive\u0092s incapacity due to physical or mental illness unless such incapacity<\/p>\n
is determined to constitute a Disability as provided herein.<\/p>\n
 <\/font><\/p>\n
(g)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Payment of all but<\/p>\n
forty thousand dollars ($40,000) of the benefits described in<\/p>\n
Section 7.6(d)(1) and payment of all of the benefits described in Section<\/p>\n
7.6(d)(2) shall be paid in cash to the Executive in a single lump sum as soon<\/p>\n
as practicable following the Effective Date of Termination, but in no event<\/p>\n
beyond thirty (30) days from such date. The forty thousand dollars ($40,000)<\/p>\n
which was withheld shall be paid in cash to the Executive in a single lump sum<\/p>\n
at the end of the twelve (12) month restrictive period set forth in<\/p>\n
Sections 11.2 and 11.3 of this Agreement.<\/p>\n
 <\/font><\/p>\n
(h)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Except as specifically<\/p>\n
provided in Section 7.6(g), all other payments due to the Executive upon<\/p>\n
termination of employment shall be paid in accordance with the terms of such<\/p>\n
applicable plans or programs.<\/p>\n
 <\/font><\/p>\n
(i)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Notwithstanding<\/p>\n
anything herein to the contrary, the Company\u0092s payment obligations under this<\/p>\n
Section 7.6 shall be offset by any amounts that the Company is required to pay<\/p>\n
to the Executive under a national statutory severance program applicable to<\/p>\n
such Executive.<\/p>\n
 <\/font><\/p>\n
(j)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>With the<\/p>\n
exceptions of the covenants contained in Articles 8, 9, 10, 11, 12 and 14 and<\/p>\n
Sections 7.6, 13.3, 13.5, and 13.7 (which shall survive such termination)<\/p>\n
herein, the Company and the Executive thereafter shall have no further<\/p>\n
obligations under this Agreement.<\/p>\n
 <\/font><\/p>\n
Article 8. Change in Control<\/font><\/b><\/a><\/p>\n
 <\/font><\/p>\n
8.1<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Employment<\/p>\n
Termination Following a Change in Control<\/font><\/b>.  <\/font><\/b>The Executive shall be<\/p>\n
entitled to receive from the Company CIC Severance Benefits if a Notice of<\/p>\n
Termination for a Qualifying Termination of the Executive has been delivered;<\/p>\n
provided, that:<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The Executive shall<\/p>\n
not be entitled to receive CIC Severance Benefits if he is terminated for Cause<\/p>\n
(as provided in Section 7.5 herein), or if his employment with the Company ends<\/p>\n
due to death, or Disability, or due to voluntary termination of employment by<\/p>\n
the Executive without Good Reason.<\/p>\n
 <\/font><\/p>\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>CIC Severance<\/p>\n
Benefits shall be paid in lieu of all other benefits provided to the Executive<\/p>\n
under the terms of this Agreement.<\/p>\n
 <\/font><\/p>\n
13<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
8.2<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Qualifying<\/p>\n
Termination<\/font><\/b>.  <\/font><\/b>The occurrence of any one or more of the<\/p>\n
following events on or after the date of the announcement of the transaction<\/p>\n
which leads to the CIC and up to twenty-four (24) months following the date of<\/p>\n
the CIC shall trigger the payment of CIC Severance Benefits to the Executive<\/p>\n
under this Agreement:<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>An involuntary<\/p>\n
termination of the Executive\u0092s employment by the Company for reasons other than<\/p>\n
Cause, death, or Disability, as evidenced by a Notice of Termination delivered<\/p>\n
by the Company to the Executive;<\/p>\n
 <\/font><\/p>\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>A voluntary<\/p>\n
termination by the Executive for Good Reason as evidenced by a Notice of<\/p>\n
Termination delivered to the Company by the Executive;<\/p>\n
 <\/font><\/p>\n
(c)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Failure to renew<\/p>\n
this Agreement (if the Agreement would expire unless renewed within such<\/p>\n
period), as evidenced by a Notice of Termination delivered by the Company to<\/p>\n
the Executive; or<\/p>\n
 <\/font><\/p>\n
(d)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The Company or any<\/p>\n
Successor Company materially breaches any material provision of this Agreement<\/p>\n
and does not cure such breach within thirty (30) days of receiving a written<\/p>\n
notice from the Executive with such notice explaining in reasonable detail the<\/p>\n
facts and circumstances claimed to provide a basis for the Executive\u0092s claim.<\/p>\n
 <\/font><\/p>\n
8.3<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Severance<\/p>\n
Benefits Paid upon a Qualifying Termination<\/font><\/b>.  <\/font><\/b>In the event the Executive<\/p>\n
becomes entitled to receive CIC Severance Benefits, the Company shall pay to<\/p>\n
the Executive and provide him the following:<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>An<\/p>\n
amount equal to two (2)  <\/font><\/b>times the Executive\u0092s annual Base Salary<\/p>\n
established for the fiscal year in which the Effective Date of Termination<\/p>\n
occurs;<\/p>\n
 <\/font><\/p>\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>An<\/p>\n
amount equal to two (2)  <\/font><\/b>times the Executive\u0092s targeted Annual<\/p>\n
Bonus award established for the fiscal year in which the Executive\u0092s Effective<\/p>\n
Date of Termination occurs;<\/p>\n
 <\/font><\/p>\n
(c)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>An<\/p>\n
amount equal to the Executive\u0092s unpaid Base Salary and accrued but unused<\/p>\n
vacation pay through the Effective Date of Termination;<\/p>\n
 <\/font><\/p>\n
(d)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>All<\/p>\n
outstanding long-term incentive awards shall be subject to the treatment<\/p>\n
provided under the applicable long-term incentive plan of the Company;<\/p>\n
 <\/font><\/p>\n
(e)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>A<\/p>\n
continuation of the welfare benefits of health care, life and accidental death<\/p>\n
and dismemberment, and disability insurance coverage for two (2)  <\/font><\/b>full<\/p>\n
years after the Effective Date of Termination (or if continuation under the<\/p>\n
Company\u0092s then current plans is not allowed, then provision at the Company\u0092s<\/p>\n
expense but subject to payment by Executive of those payments which Executive<\/p>\n
would have been obligated to make under the Company\u0092s then current plan, of<\/p>\n
substantially similar welfare benefits from one or more third party providers).<\/p>\n
 <\/font><\/p>\n
14<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
(1)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>These<\/p>\n
benefits shall be provided to the Executive at the same coverage level, as in<\/p>\n
effect as of the Effective Date of Termination or, if greater, as in effect<\/p>\n
sixty (60) days prior to the date of the Change in Control, and at the same<\/p>\n
premium cost to the Executive which was paid by the Executive at the time such<\/p>\n
benefits were provided.<\/p>\n
 <\/font><\/p>\n
(2)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>In<\/p>\n
the event the premium cost and\/or level of coverage shall change for all<\/p>\n
employees of the Company, or for management employees with respect to<\/p>\n
supplemental benefits, the cost and\/or coverage level, likewise, shall change<\/p>\n
for the Executive in a corresponding manner.<\/p>\n
 <\/font><\/p>\n
(3)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The<\/p>\n
continuation of these welfare benefits shall be discontinued prior to the end<\/p>\n
of the  <\/font><\/b>two<\/p>\n
year period in the event the Executive has available substantially similar<\/p>\n
benefits at a comparable cost to the Executive from a subsequent employer, as<\/p>\n
determined by the Compensation Committee (or, in the event the Compensation<\/p>\n
Committee ceases to exist, the Board).<\/p>\n
 <\/font><\/p>\n
8.4<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Form and<\/p>\n
Timing of Severance Benefit<\/font><\/b>. Payment of all of the benefits<\/p>\n
described in Sections 8.3(a) through (c) shall be paid in cash to the Executive<\/p>\n
in a single lump sum as soon as practicable following the Effective Date of<\/p>\n
Termination, but in no event beyond thirty (30) days from such date. All other<\/p>\n
payments due to the Executive upon termination of employment shall be paid in<\/p>\n
accordance with the terms of such applicable plans or programs.<\/p>\n
 <\/font><\/p>\n
8.5<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Excise Tax<\/font><\/b>.<\/p>\n
In the event that a Change in Control occurs, and a determination is made by<\/p>\n
the Company pursuant to Section 280G and 4999 of the Code that a golden<\/p>\n
parachute excise tax is due, the benefits provided to the Executive under this<\/p>\n
Agreement that are classified as \u0093parachute payments\u0094 (as such term is defined<\/p>\n
in Section 280G of the Code), shall be limited to the amount just necessary to<\/p>\n
avoid the excise tax.<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>This limitation<\/p>\n
shall be applied if, and only if, such a limitation results in a greater net<\/p>\n
(of excise tax) cash benefit to the Executive than he would receive had the<\/p>\n
benefits not been capped and an excise tax been levied.<\/p>\n
 <\/font><\/p>\n
8.6<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>With<\/p>\n
the exceptions of the covenants contained in Articles 8, 9, 10, 11, 12 and 14<\/p>\n
and Sections 13.3, 13.5, and 13.7 (which shall survive such termination) herein,<\/p>\n
the Company and the Executive thereafter shall have no further obligations<\/p>\n
under this Agreement.<\/p>\n
 <\/font><\/p>\n
Article 9. Assignment<\/font><\/b><\/a><\/p>\n
 <\/font><\/p>\n
9.1<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Assignment<\/p>\n
by Company<\/font><\/b>.  <\/font><\/b>This Agreement may and shall be assigned<\/p>\n
or transferred to, and shall be binding upon and shall inure to the benefit of<\/p>\n
any Successor Company, with Successor Company for purposes of this Agreement<\/p>\n
being defined as a company that (i) acquires greater than fifty percent (50%)<\/p>\n
of the assets of the Company or (ii) acquires greater than fifty percent (50%)<\/p>\n
of the outstanding stock of the Company, or (iii) is the surviving entity in<\/p>\n
the event of a CIC.<\/p>\n
 <\/font><\/p>\n
15<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Any such Successor<\/p>\n
Company shall be deemed substituted for all purposes of the \u0093Company\u0094 under the<\/p>\n
terms of this Agreement.<\/p>\n
 <\/font><\/p>\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Failure of the<\/p>\n
Company to obtain the agreement of any Successor Company to be bound by the<\/p>\n
terms of this Agreement prior to the effectiveness of any such succession shall<\/p>\n
be a breach of this Agreement, and shall immediately entitle the Executive to<\/p>\n
benefits from the Company in the same amount and on the same terms as the<\/p>\n
Executive would be entitled to receive in the event of a termination of<\/p>\n
employment for Good Reason as provided in Section 7.7 (failure not related to a<\/p>\n
Change in Control) or Section 8.3 (if the failure of assignment follows or is<\/p>\n
in connection with a Change in Control).<\/p>\n
 <\/font><\/p>\n
(c)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Except as herein<\/p>\n
provided, this Agreement may not otherwise be assigned by the Company.<\/p>\n
 <\/font><\/p>\n
9.2<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Assignment<\/p>\n
by Executive<\/font><\/b>.  <\/font><\/b>This Agreement shall inure to the benefit<\/p>\n
of and be enforceable by the Executive\u0092s personal or legal representatives,<\/p>\n
executors, administrators, successors, heirs, distributees, devisees, and<\/p>\n
legatees.<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>If the Executive<\/p>\n
dies while any amount would still be payable to him pursuant to this Agreement<\/p>\n
had he continued to live, all such amounts, unless otherwise provided herein,<\/p>\n
shall be paid in accordance with the terms of this Agreement, to the<\/p>\n
Executive\u0092s Beneficiary.<\/p>\n
 <\/font><\/p>\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>If the Executive has<\/p>\n
not named a Beneficiary, then such amounts shall be paid to the Executive\u0092s<\/p>\n
devisee, legatee, or other designee, or if there is no such designee, to the<\/p>\n
Executive\u0092s estate.<\/p>\n
 <\/font><\/p>\n
 <\/font><\/p>\n
10.1<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Payment of<\/p>\n
Legal Fees<\/font><\/b>.  <\/font><\/b>To the<\/p>\n
extent permitted by law, the Company shall pay all legal fees, costs of<\/p>\n
litigation, prejudgment interest, and other expenses incurred by Executive in<\/p>\n
contesting a termination, if Executive prevails.<\/p>\n
 <\/font><\/p>\n
10.2<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Notice<\/font><\/b>.  <\/font><\/b>Any<\/p>\n
notices, requests, demands, or other communications provided by this Agreement<\/p>\n
shall be sufficient if in writing and if sent by registered or certified<\/p>\n
mail to the Executive at the last address he has filed in writing with the<\/p>\n
Company or, in the case of the Company, at its principal offices to the<\/p>\n
attention of the General Counsel.<\/p>\n
 <\/font><\/p>\n
16<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
Article<\/p>\n
11. Confidentiality and Noncompetition<\/font><\/b><\/a><\/p>\n
 <\/font><\/p>\n
11.1<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Disclosure<\/p>\n
of Information<\/font><\/b>.  <\/font><\/b>The Executive recognizes that he has<\/p>\n
access to and knowledge of confidential and proprietary information of the<\/p>\n
Company that is essential to the performance of his duties under this<\/p>\n
Agreement.<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The Executive will<\/p>\n
not, during and for five (5) years after the term of his employment by the<\/p>\n
Company, in whole or in part, disclose such information to any person, firm,<\/p>\n
corporation, association, or other entity for any reason or purpose whatsoever,<\/p>\n
nor shall he make use of any such information for his own purposes, so long as<\/p>\n
such information has not otherwise been disclosed to the public or is not<\/p>\n
otherwise in the public domain except as required by law or pursuant to<\/p>\n
administrative or legal process.<\/p>\n
 <\/font><\/p>\n
11.2<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Covenants<\/p>\n
Regarding Other Employees<\/font><\/b>. During the term of this Agreement, and<\/p>\n
for a period of twelve (12) months following the Executive\u0092s termination of<\/p>\n
employment for any reason, the Executive agrees not to actively solicit any<\/p>\n
employee of the Company to terminate his or her employment with the Company or<\/p>\n
to interfere in a similar manner with the business of the Company.<\/p>\n
 <\/font><\/p>\n
11.3<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Noncompete<\/p>\n
Following a Termination of Employment<\/font><\/b>.  <\/font><\/b>From the Effective Date of this<\/p>\n
Agreement until six (6) months following the Executive\u0092s Effective Date of<\/p>\n
Termination for any reason, the Executive will not: (a) directly or indirectly<\/p>\n
own any equity or proprietary interest in (except for ownership of shares in a publicly<\/p>\n
traded company not exceeding three percent (3%) of any class of outstanding<\/p>\n
securities), or be an employee, agent, director, advisor, or consultant to or<\/p>\n
for any competitor of the Company, whether on his own behalf or on behalf of<\/p>\n
any person; or (b) undertake any action to induce or cause any customer or<\/p>\n
client to discontinue any part of its business with the Company.<\/p>\n
 <\/font><\/p>\n
11.4<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Waiver of Covenants Upon a Change in Control. <\/font><\/b>Upon the occurrence of a Change in<\/p>\n
Control, the Executive shall be released from each of the covenants set forth<\/p>\n
in Section 11.2 and 11.3, if such Executive is terminated by the Company<\/p>\n
without Cause or if the Executive terminates his employment with the Company<\/p>\n
for Good Reason.<\/p>\n
 <\/font><\/p>\n
Article<\/p>\n
12. Outplacement Assistance<\/font><\/b><\/a><\/p>\n
 <\/font><\/p>\n
12.1<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Following a termination of employment, other than<\/p>\n
for Cause, the Executive shall be reimbursed by the Company for the costs of<\/p>\n
all outplacement services obtained by the Executive within the two (2) year<\/p>\n
period after the Effective Date of Termination; provided, however, that the<\/p>\n
total reimbursement shall be limited to an amount equal to twenty percent (20%)<\/p>\n
of the Executive\u0092s Base Salary as of the effective date of termination.<\/p>\n
 <\/font><\/p>\n
17<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
Article 13. Miscellaneous<\/font><\/b><\/a><\/p>\n
 <\/font><\/p>\n
13.1<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Entire<\/p>\n
Agreement<\/font><\/b>.  <\/font><\/b>With the exception of the Company\u0092s<\/p>\n
Proprietary Information and Inventions Agreement previously executed by Executive, this Agreement supersedes any<\/p>\n
prior agreements (specifically, the prior employment agreement executed by the<\/p>\n
Executive as of \u00a0January 29, 1996, and<\/p>\n
any and all amendments thereto), or understandings, oral or written, between<\/p>\n
the parties hereto or between the Executive and the Company, with respect to<\/p>\n
the subject matter hereof, and constitutes the entire agreement of the parties with<\/p>\n
respect thereto.<\/p>\n
 <\/font><\/p>\n
13.2<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Modification<\/font><\/b>.  <\/font><\/b>This<\/p>\n
Agreement shall not be varied, altered, modified, canceled, changed, or in any<\/p>\n
way amended except by mutual agreement of the parties in a written instrument<\/p>\n
executed by the parties hereto or their legal representatives.<\/p>\n
 <\/font><\/p>\n
13.3<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Severability<\/font><\/b>.  <\/font><\/b>In<\/p>\n
the event that any provision or portion of this Agreement shall be determined<\/p>\n
to be invalid or unenforceable for any reason, the remaining provisions of this<\/p>\n
Agreement shall be unaffected thereby and shall remain in full force and<\/p>\n
effect.<\/p>\n
 <\/font><\/p>\n
13.4<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Counterparts<\/font><\/b>.  <\/font><\/b>This<\/p>\n
Agreement may be executed in one (1) or more counterparts, each of which shall<\/p>\n
be deemed to be an original, but all of which together will constitute one and<\/p>\n
the same Agreement.<\/p>\n
 <\/font><\/p>\n
13.5<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Tax<\/p>\n
Withholding<\/font><\/b>.  <\/font><\/b>The Company may withhold from any benefits<\/p>\n
payable under this Agreement all federal, state, city, or other taxes as may be<\/p>\n
required pursuant to any law or governmental regulation or ruling.<\/p>\n
 <\/font><\/p>\n
13.6<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Beneficiaries<\/font><\/b>.  <\/font><\/b>To<\/p>\n
the extend allowed by law, any payments or benefits hereunder due to the<\/p>\n
Executive at the time of his death shall nonetheless be paid or provided and<\/p>\n
the Executive may designate one or more persons or entities as the primary<\/p>\n
and\/or contingent beneficiaries of any amounts to be received under this<\/p>\n
Agreement. Such designation must be in the form of a signed writing acceptable<\/p>\n
to the Board or the Board\u0092s designee. The Executive may make or change such<\/p>\n
designation at any time.<\/p>\n
 <\/font><\/p>\n
13.7<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>Payment<\/p>\n
Obligation Absolute<\/font><\/b>. Absent actions deliberately or willfully taken<\/p>\n
by the Executive to materially injure the Company, the Company\u0092s obligation to<\/p>\n
make the payments and the arrangement provided for herein shall be absolute and<\/p>\n
unconditional, and shall not be affected by any circumstances, including,<\/p>\n
without limitation, any offset, counterclaim, recoupment, defense, or other<\/p>\n
right which the Company may have against the Executive or anyone else.<\/p>\n
 <\/font><\/p>\n
(a)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>All amounts payable<\/p>\n
by the Company hereunder shall be paid without notice or demand. Subject to the<\/p>\n
provisions set forth in Sections 7.4 and 7.6, and Article 11, each and<\/p>\n
every payment made hereunder by the Company shall be final, and the Company<\/p>\n
shall not seek to recover all or any part of such payment from the Executive or<\/p>\n
from whomsoever may be entitled thereto, for any reasons whatsoever.<\/p>\n
 <\/font><\/p>\n
18<\/font><\/p>\n
<\/p>\n
\n
<\/font><\/div>\n
<\/p>\n

<\/p>\n
<\/font><\/p>\n
\n
(b)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>With the exception<\/p>\n
of the Company\u0092s willful material breach of its payment obligations under<\/p>\n
Articles 7 and 8 of this Agreement (provided, however, that no such breach<\/p>\n
shall be deemed to have occurred until the Executive has provided the Board<\/p>\n
with written notice of such breach and a reasonable opportunity for cure), the<\/p>\n
restrictive covenants contained in Article 11 are independent of any other<\/p>\n
contractual obligations in this Agreement or otherwise owed by the Company to<\/p>\n
the Executive. Except as provided in this paragraph, the existence of any claim<\/p>\n
or cause of action by Executive against the Company, whether based on this<\/p>\n
Agreement or otherwise, shall not create a defense to the enforcement by the<\/p>\n
Company of any restrictive covenant contained herein.<\/p>\n
 <\/font><\/p>\n
(c)<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>The Executive shall<\/p>\n
not be obligated to seek other employment in mitigation of the amounts payable<\/p>\n
or arrangements made under any provision of this Agreement, and the obtaining<\/p>\n
of any such other employment shall in no event effect any reduction of the<\/p>\n
Company\u0092s obligations to make the payments and arrangements required to be made<\/p>\n
under this Agreement.<\/p>\n
 <\/font><\/p>\n
 <\/font><\/p>\n
14.1<\/font>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/font>To the<\/p>\n
extent not preempted by federal law, the provisions of this Agreement shall be<\/p>\n
construed and enforced in accordance with the laws of the state of New Jersey.<\/p>\n
 <\/font><\/p>\n
IN WITNESS WHEREOF<\/font><\/b>, the Company, through<\/p>\n
its duly authorized representative, and the Executive have executed this<\/p>\n
Agreement as of the Effective Date.<\/p>\n
 <\/font><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n
\n<\/td>\n
\n
Executive:<\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n
\n
\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n
\n
\/s\/ Ernest L. Kelly<\/font><\/p>\n<\/td>\n
\n
\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n
\n
Ernest L. Kelly, Ph.D.<\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n
\n
\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n
\n
Company:<\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n
\n
\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n
\n
Bio-Technology<\/p>\n
  General Corp.<\/font><\/b><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n
\n
\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n
\n
By:<\/font><\/p>\n<\/td>\n
\n
\u00a0\/s\/ Sim Fass<\/font><\/p>\n<\/td>\n
\n
\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n
\n
Sim Fass<\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n
\n
Chairman & CEO<\/font><\/p>\n<\/td>\n<\/tr>\n
\n
\n<\/td>\n
\n
\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/table>\n
 <\/font><\/p>\n
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Article 14. Governing Law<\/font><\/b><\/a><\/p>\n
Article 10. Legal Fees and Notice<\/font><\/b><\/a><\/p>\n
Article 6. Expenses<\/font><\/b><\/a><\/p>\n
Article 4. Standard of Care<\/font><\/b><\/a><\/p>\n