EXHIBIT 10.1
 
ASSIGNMENT AND AMENDMENT TO EMPLOYMENT AGREEMENT
 
This Assignment and Amendment (this “Amendment”) dated as of May 21, 2008 of the
Employment Agreement dated as of [DATE OF EMPLOYMENT AGREEMENT] (the “Employment
Agreement”) entered into between Specialized Health Products, Inc., a Utah
corporation (the “Company”), and [NAME OF EMPLOYEE] (the “Employee”) is entered
into among the Employee, the Company and Specialized Health Products
International, Inc., a Delaware corporation (“SHPI”). Capitalized terms not
defined herein shall have the meaning set forth in the Employment Agreement.
 
RECITALS
 
WHEREAS, the Company and the Employee entered into the Employment Agreement;
 
WHEREAS, each of the Company and the Employee deems it in their best interest to
amend the Employment Agreement; and
 
WHEREAS, the Company desires to assign its rights under the Employment Agreement
to SHPI, and SHPI desires to accept such assignment and assume all obligations
of the Company under the Employment Agreement in accordance with its terms and
the Employee desires to consent to such assignment and assumption.
 
WHEREAS, the Company and the Employee desire to amend the Employment Agreement
in accordance with Section 409A of the Internal Revenue Code of 1986, as
amended, and the regulations and guidance thereunder, to include compliant
payment dates for nonqualified deferred compensation
 
AGREEMENT
 
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, each of the Company, SHPI and the Employee
agrees as follows:
 
1.
The Company hereby transfers, assigns and conveys to SHPI its entire right,
title and interest in, to and under the Employment Agreement.

 
2.
SHPI hereby accepts the assignment of the Company’s interest in the Employment
Agreement, assumes all of the obligations of the Company under the Employment
Agreement and agrees to be bound by and to perform, observe, keep and comply
with all of the terms and provisions contained in the Employment Agreement on
the part of the Company to be performed, observed, kept and complied with from
and after the date hereof, and to pay all sums due under the Employment
Agreement.

 

 
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3.
The Employee hereby consents to and approves the assignment by the Company, and
the assumption by SHPI, of the Employment Agreement as set forth herein.

 
4.
Section 2.1.2 of the Employment Agreement is hereby amended and restated to read
in its entirety as follows:

 
“2.1.2 “Termination Other Than For Cause” shall mean involuntary separation of
Employee from service by Corporation within the meaning of Treasury Regulation §
1.409A-1(n)(1) and Employee’s voluntary separation from service within the
meaning of Treasury Regulation § 1.409A-1(n)(2)(ii) satisfying the following
conditions:
 
(A) The separation from service must occur within two (2) years following the
initial existence of one or more of the following conditions arising without
Employee’s consent:(1) a material diminution in Employee’s Base Salary; (2) a
material diminution in Employee’s authority, duties, or responsibilities; (3) a
material diminution in the authority, duties, or responsibilities of the
supervisor to whom Employee is required to report; (4) a material diminution in
the budget over which Employee retains authority; (5) a material change in the
geographic location at which Employee must perform the services; and (6) any
other action or inaction that constitutes a material breach by Corporation of
the Employment Agreement.
 
(B) Employee must provide notice to Corporation of the existence of the
condition described in paragraph (A) above within 90 days of the initial
existence of the condition, upon the notice of which Corporation shall have a
period of at least 30 days during which it may remedy the condition and not be
required to pay the amount.”
 
5.
Section 2.4 of the Employment Agreement is hereby amended and restated to read
in its entirety as follows:

 
“2.4 Termination Other Than For Cause. Notwithstanding anything else in this
Agreement, Corporation may effect a Termination Other Than For Cause at any time
upon giving written notice to Employee of such termination and Employee may
effect a Termination Other Than For Cause by giving notice to Company in
accordance with Section 2.1.2(B). Upon any Termination Other Than For Cause, (a)
Employee shall promptly be paid all accrued salary, bonus compensation to the
extent earned, vested deferred compensation (other than pension plan, profit
sharing plan and stock option plan benefits which will be paid in accordance
with the applicable plan), any benefits under any plans of the Corporation in
which Employee is a participant to the full extent of Employee’s rights under
such plans (other than pension plan, profit
 

 
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sharing plan and stock option plan benefits which will be paid in accordance
with the applicable plan), accrued vacation pay and any appropriate business
expenses incurred by Employee in connection with his duties hereunder, all to
the date of termination, (b) as long as Employee complies with the provisions of
Sections 5 through 8 as severance compensation, two separate lump sum payments
for which the aggregate amount shall be equal to [SEVERANCE PERIOD] months (the
“Severance Period”) of salary (the “Total Severance Amount”) which shall be
payable in the amounts and at the times set forth as follows: (x) the first lump
sum payment shall equal a portion of the Total Severance Amount calculated by
multiplying the Total Severance Amount by a fraction, the numerator of which is
the number of days elapsed from the termination date until and including
December 31 of the calendar year in which the Termination Other Than For Cause
occurs and the denominator of which is the number of days in the Severance
Period and shall be paid on or within two business days of the date of
termination and (y) the second lump sum payment shall equal the remaining
portion of the Total Severance Amount not paid in the first lump sum payment and
shall be paid in the next following calendar year on or before January 5 of such
calendar year, and (c) as long as Employee complies with the provisions of
Sections 5 through 8, medical benefits continuation for the Severance Period
under then current Corporation plans, provided that the medical benefits
provided to Employee during the Severance Period shall be on the same basis as
those provided to then active employees of the Corporation, except that the
Employee will not be required to contribute any portion of the applicable
premium rate. [Employee acknowledges, understands and agrees that
notwithstanding the schedule of severance payments set forth in this Section
2.4, Employee shall be subject to the post-termination restrictive covenants set
forth in Sections 5 and 9 of this Agreement during the Severance Period.]*
Notwithstanding the foregoing, if Employee breaches any provision of Sections 5
through 8, then (i) Employee shall promptly pay to the Corporation an amount
equal to the Total Severance Amount multiplied by a fraction, the numerator of
which is the number of days from the first breach of any such provision through
the last day of the Severance Period and the denominator of which is the number
of days in the Severance Period and (ii) the Corporation shall immediately cease
the continuation of medical benefits provided under Section 2.4(c), above.”
 
6.
Section 2.8 of the Employment Agreement which was added by amendment dated as of
June 3, 2004 is hereby deleted in its entirety.**

 
7.
The text “eighteen (18) months” set forth in each of Sections 5, 8 and 9 is
hereby amended and replaced with the text “twenty-four (24) months.”**

 
 

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*
The bracketed sentence only applies to David A. Green and Rebecca A. Whitney.

**
This provision only applies to Jeffrey M. Soinski.

 
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8.
The effectiveness of the amendments set forth in Sections 4 and 5*** of this
Amendment is conditioned upon SHPI effecting a Termination Other Than For Cause
immediately prior to the completion of a Change of Control (as defined below) on
or before September 10, 2008. For purposes of this Amendment, Change of Control
means (i) a merger, consolidation or reorganization of SHPI other than a merger,
consolidation or reorganization resulting in the voting securities of SHPI
outstanding immediately prior thereto continuing to represent at least 50% of
the combined voting power of the securities of SHPI or the surviving entity or
any parent thereof outstanding immediately thereafter, (ii) the acquisition by a
person or persons acting as a group of equity securities, which together with
equity securities already held by such person or persons, constitutes more than
50% of the total voting power of the Company or (iii) any transfer or other
disposition of all or substantially all of SHPI’s assets.

 
9.
Except as modified herein, all terms and conditions of the Employment Agreement
shall remain in full force and effect.

 
10.
This Amendment and the Employment Agreement contain the entire understanding of
the parties with respect to the subject matter hereof and thereof, and supersede
in all respects any and all prior or contemporaneous oral or written agreements
or understandings.

 
 
[Signature page follows]
 
 
 
 

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***
And Sections 6 and 7 in the case of Jeffery M. Soinski.

 
 
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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
date set forth in the first paragraph.
 
SPECIALIZED HEALTH PRODUCTS, INC.
 
 
By:

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Name:
Title:
 
 
SPECIALIZED HEALTH PRODUCTS INTERNATIONAL, INC.
 
 
By:

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Name:
Title:
 
 
 

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[NAME OF EMPLOYEE]
 

 
 
 
 
 
 
 
 
 
 
[Signature page to Assignment and Amendment to Employment Agreement for [NAME OF
EMPLOYEE]]
 
 

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