**Exhibit 10.18**

 

**[Execution Copy]**

 

Smiths Medical Holdco Limited

765 Finchley Road

London NW 11 8DS

 

December 5, 2004

 

Charles Jamison

Medex, Inc.

2231 Rutherford Road

Carlsbad, CA 92008

 

Dear Chuck:

 

I am excited on behalf of Smiths Medical Holdco Limited (the “Company”)to have the opportunity to work with you following the proposedtransaction.  The purpose of this letteris to set out the terms upon which we have agreed for your employment withMedex, Inc. (“Medex”) to continue following the closing (the “Closing”)of the transactions contemplated by the Agreement and Plan of Merger, dated asof December 5, 2004 (the “Merger Agreement”), by and among theCompany, Forest Acquisition Corp., an Ohio corporation and a wholly-ownedsubsidiary of the Company (“Merger Sub”), MedVest Holdings Corporation,an Ohio corporation, (“MedVest”), each of the individual stockholders ofthe Company signatories to the Merger Agreement, and OEP MedVest LLC, aDelaware limited liability company, as representative on behalf of thestockholders of MedVest.  Effective as ofthe Closing, this letter shall amend the Severance and Non-Compete Agreementdated as of May 21, 2003 (as amended, the “Agreement”) between youand Medex.  Where there is a discrepancybetween this letter and the Agreement, this letter will be the controllingdocument.  Except as set forth in thisletter, the Agreement shall remain in full force and effect and you and Medexconfirm your agreement with the terms thereof. Your employment with Medex remains at will.  Capitalized terms used herein and nototherwise defined shall have the meanings ascribed thereto in the Agreement.

 

1.                                       BaseSalary and Automobile Allowance. Your annual base salary shall be two hundred eight thousand ($208,000)dollars, plus an annual cost of living allowance in an amount equal to (i) sixthousand six hundred sixty-seven ($6,667) dollars per year from the Closinguntil September 1, 2005 and (ii) three thousand three hundredthirty-three ($3,333) dollars per year from September 1, 2005 until September 1,2006.  Your base salary shall be payablein accordance with the standard payroll practices of Medex, less all statutorywithholdings and deductions.  Increases,if any, in this base salary are at Medex’s sole discretion, based on your performance,and shall be effective August 1st of the relevant year.  Your first performance review will be in August 2005.  You will receive an automobile allowance inthe amount of one thousand three hundred fifty dollars ($1,350) per month, lessall statutory withholds and deductions, for the purchase and use of anautomobile of a type suitable for an employee in this position.

 

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2.                                       TransitionPayments.  To induce the Company’saffiliates to enter into the transactions contemplated by the Merger Agreement,for which you will receive substantial benefit, you, Medex and the Companyhereby agree that (a) the benefits under Section 6(c) of theAgreement (the “Change in Control Benefits”), (b) the remainingpayments to be made in accordance with Section 7 of the Agreement (the “CompetePayment”), and (c) your bonus for the 2004 fiscal year (the “BonusPayment,” and together with the Change in Control Benefits and the CompetePayment, the “Transition Payments”) shall be paid in accordance with Section 3below.  You further agree that you willnot be entitled to receive the Compete Payment or the Bonus Payment if youvoluntarily terminate your employment with Medex during the Transition Period(as defined in Section 3 below), and you will not be entitled to receivethe Change in Control Benefits if you voluntarily terminate your employmentwith Medex before the first anniversary of Closing.  It is understood and agreed by the partiesthat any termination for Good Reason (as defined below) shall not be deemed tobe a voluntary termination for purposes of this letter.  “Good Reason” shall mean (A) a materialbreach by Medex of any material obligation under the Agreement that is notcurable or that is not cured within 30 days after written notice thereof fromyou to Medex or (B) your relocation from the present metropolitan area ofemployment, without your consent.

 

3.                                       Termination.

 

(a)                                  DuringTransition Period.  The “TransitionPeriod” shall be the period beginning on the Closing Date and ending on December 31,2005.  Medex shall pay in full theCompete Payment and the Bonus Payment, plus interest thereon at the prime rateas published in the Eastern edition of the Wall Street Journal from January 1,2005 to the date of payment, on the earlier of (i) the date Medex terminatesyour employment, (ii) the termination of your employment for Good Reasonor on account of your death or disability or (iii) so long as you remainemployed with Medex during the entire Transition Period, December 31,2005.

 

(b)                                 Onthe First Anniversary.  Medex shallpay in full the Change in Control Benefits, including, without limitation, thecontinuation of medical insurance coverage in the manner contemplated by Section 6(c)(iv) ofthe Agreement, on the earlier of (i) the date Medex terminates your employment,(ii) the termination of your employment for Good Reason or on account ofyour death or disability or (iii) so long as you remain employed withMedex during the entire twelve months period following the Closing, the firstanniversary of the Closing. Notwithstanding anything set forth in the Agreement to the contrary, theparties acknowledge and agree that the aggregate cash payment to be paid aspart of the Change in Control Benefits shall include interest thereon at theprime rate as published in the Eastern edition of the Wall Street Journal from January 1,2005 to the date of payment.

 

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If you agree with the terms and conditions of this letter, pleasereturn one original executed copy of this document to me.  This letter shall become effective only atthe Closing, and if the Merger Agreement is terminated for any reasonwhatsoever, the terms of this letter shall be of no force and effect.

 
|                                           | Sincerely,                    |
|------------------------------------------------|-------------------------------|
|                                           |                          |
|                                           | Smiths Medical Holdco Limited |
|                                           |                          |
|                                           | By:                           | /s/ R. J. Taunt |   |
|                                           | Name:                         | R. J. Taunt |   |
|                                           | Title:                        |   Authorized Signatory |   |
|                                           |                          |
|                                           | Medex, Inc.              |
|                                           |                          |
|                                           | By:                           | /s/ Dominick A. Arena |   |
|                                           | Name:                         | Dominick A. Arena |   |
|                                           | Title:                        | CEO |   |
|                                           |                          |
| **The above terms are accepted and approved:** |                          |
|                                           |                          |
| /s/ Charles Jamison                            |                          |   |
| **(Signature of the Employee)**                |                          |   |
|                                           |                          |
| Dated:   December 5, 2004       |                          |
|                                                |                               |  |  |  |  |  |

 

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