EX-10.21



 





Exhibit 10.21




EXECUTION COPY




EMPLOYMENT AGREEMENT




     THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is made as of
December 7, 2007, by and between Xanodyne Pharmaceuticals, Inc., a
Delaware corporation with a principal place of business at One Riverfront Place, Newport, Kentucky
(the “Company”), and Thomas Jennings, an individual (the “Employee”).



     The Company and the Employee have entered into an Employment Agreement dated as of July 30,
2007 (the “Existing Employment Agreement”). The Company desires to employ the Employee as Vice
President, Legal Affairs, General Counsel, and Corporate Secretary, and the Employee desires to be
employed by the Company as Vice President, Legal Affairs, (General Counsel, and Corporate
Secretary, on the terms and conditions set forth herein. The Company and the Employee desire to
amend and restate the Existing Employment Agreement in its entirety.



     In consideration of the mutual covenants and promises contained in this Agreement, and other
good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged by the parties to this Agreement, the parties
agree as follows:



     1) EMPLOYMENT AND SUPERSESSION OF ALL PRIOR AGREEMENTS. The Company hereby employs the
Employee and the Employee accepts employment upon the terms and conditions of this Agreement. This
Agreement, together with all attachments, annexes and exhibits hereto, shall supersede and replace
any and all agreements, written or oral, express or implied, between the Employee and the Company
or any related or predecessor organization, relating to the subject matter hereof, including
without limitation the Existing Employment Agreement. This Agreement, together with all
attachments, annexes and exhibits hereto, constitutes the complete understanding between the
parties relating to the subject matter hereof and thereof.



     2) DUTIES. The employee will continue to be employed as Vice President, Legal Affairs, General
Counsel, and Corporate Secretary, reporting to the President and CEO of the Company. During the
Employee’s employment, the Employee agrees to serve and perform such duties consistent with being a
Vice President, Legal Affairs, General Counsel, and Corporate Secretary at such times and in such
manner as the Company or the Board of Directors of the Company (the “Board”) may reasonably from
time to time direct. At the Company’s discretion, the Employee may be given additional duties or
different duties, and this Agreement shall apply as well to any such duties assumed by Employee.
During the term of this Agreement, the Employee agrees to faithfully perform the duties assigned to
him or her to the best of his or her ability and to devote full and undivided time to the
transaction of the Company’s business. The Employee agrees to abide by the rules, regulations,
instructions, personnel practices and policies of the Company and any changes therein which may be
adopted from time to



 









 




time by the Company.




     3)
COMPENSATION.



          a) Base Salary. The Company shall pay the Employee, in periodic
installments in accordance with the Company’s customary payroll
practices, an annual base salary of $240,000,  as may be adjusted
from time to time by the Board or the Compensation Committee of the Board (the “Committee”), based upon a review of Company and Employee
performance, which review shall occur at least annually.




          b) Annual Bonus. The Employee will be eligible for an annual bonus
based on achievement of objectives set by the Board or the Committee on an annual
basis. The Employee’s target bonus will be 40% of the Employee’s base salary.
Depending on results, the Employee’s actual bonus, if any, may be higher or lower. The
Board or the Committee has the right to modify the bonus program at any time. The
bonus award amount will be determined by the Board or Committee in its sole discretion.
For purposes of pro-rating any 2007 bonus, your start date will be considered to be April
1, 2007.




          c) Benefits. The Employee shall be entitled to receive
those benefits generally provided to other
full-time employees of the Company at substantially the same employment level. Such
benefits are subject to change from time to time in the Company’s sole direction.




          d)
Vacation. The Employee shall be entitled to 21 days paid
vacation per year, to be taken at such times as may
be approved by the Board, the Committee or an officer designated by
the Board or the Committee. For purposes of
pro-rating the calculation of your 2007 vacation eligibility,
your start date will be considered to be April 1, 2007.




          e) Expense Reimbursement. The Company shall reimburse the
Employee for all reasonable travel, entertainment and other expenses incurred or paid by the
Employee in connection with, or related to, the performance of his or her duties, responsibilities
or services under this Agreement, in accordance with policies and procedures, and subject to
limitations, adopted by the Company from time to time.




          f) Withholding. All salary, bonus and other compensation payable to
the Employee shall be subject to applicable withholding taxes.




     4)
EMPLOYMENT PERIOD.



          a)
Employment Period. The period commencing on the date first
written above and ending on the date on which this Agreement is
terminated is referred to herein as the “Employment
Period.” During the Employment Period, the Employee will be an
at-will employee of the Company. The Employment Period shall be
freely terminable for any reason by either party at any time; provided, however, that if the
Employee terminates his or her employment with the Company for any
reason other than for Good Reason (as defined below), the Employee shall provide written notice of such




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termination to the Company at least three months prior to the effective date of such termination
(the “Employee Notice Period”). The Company may reduce the Employee Notice Period in its sole and
absolute discretion. During the Employee Notice Period, it is
understood that the Employee shall
continue to perform relevant duties for the Company and will assist the Company with transferring
the Employee’s responsibilities in an appropriate manner and take such actions as deemed
necessary by the Company to assure a smooth transition.




          b) Cooperation. After notice of termination, the Employee shall cooperate with the Company, as reasonably requested by the Company, to effect a transition of the
Employee’s responsibilities and to ensure that the Company is aware of all matters being handled
by the Employee. The Company agrees to pay for reasonable travel and lodging expenses incurred by
the Employee relating to this cooperation clause.




          c) Termination Date. For all purposes in this Agreement,
“Termination Date” means the effective date of the Employee’s termination of employment
with the Company.




     5) TERMINATION PAYMENTS.



          a) Termination for Any Reason. Upon termination of the Employee’s employment
for any reason, the Employee will be entitled to: (i) all unpaid salary and vacation days accrued
through the Termination Date and (ii) any unreimbursed business expenses. The Employee may also be
eligible for other post-employment payments and benefits as provided in this Agreement or pursuant
to other agreements or plans with the Company.




          b) Termination Not Related to a Change in Control.




               i)
Except in a termination related to a Change in Control (as defined in Section 5(d)), which is
covered in Section 5(c), if:




     (1) the Employee’s employment is involuntarily terminated by the Company other
than for (x) Cause (as defined in Section 5(d) and subject to the notice and cure
provisions described therein), (y) death or (z) Disability (as defined in Section
5(d)), or




     (2) the Employee voluntarily terminates his or her employment for Good Reason
(as defined in Section 5(d) and subject to the notice and cure provisions
described therein),


then,
subject to the Employee  delivering an executed release in the form
attached hereto as Exhibit A or, at the Company’s election, such other form that the Company is then using for employees similarly
situated to the Employee, the Company will provide the Employee the following:





     (A) a lump sum equivalent of six months of the Employee’s base
salary as in effect on the Termination Date; and



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     (B) for six months following the Termination Date, the Employee also shall be
entitled to continuation, at the Company’s expense, of group medical, dental,
long-term disability, accidental death and disability, and life insurance benefits
from the Company to the extent permitted under such plans or as otherwise approved
by the Board, as in effect immediately prior to the Termination Date; provided,
however, that in the event continuation of such benefits is not permitted under
such plans, the Company shall pay to Employee the cash equivalent of such benefits
not permitted to be covered under such plans.



               ii) The continuation of benefits at the Company’s expense pursuant to Section 5(b)(i)(B) shall be concurrent with any obligation of the Company to
provide continuation of coverage under Section 4980B of the Internal Revenue Code of 1986 or Sections 601 et.
seq. of the Employee Retirement Income Security Act of 1974 (collectively, “COBRA”), and shall not replace or extend
the Employee’s right to continued coverage under COBRA.




          c) Termination Related to a Change in Control.




               i) In the event that one of the following occurs:




     (1) the Employee’s employment is involuntarily terminated by the Company other than for (x) Cause
(as defined in Section 5(d) and subject to the notice and cure provisions described therein), (y)
death or (z) Disability (as defined in Section 5(d)), either within 90 days prior to, on the date
of or within one year after a Change in Control; or




     (2) the Employee terminates his or her employment for Good Reason (as defined in Section 5(d) and subject to
the notice and cure provisions described therein) within one year after such Change in Control,



then, subject to the Employee delivering an executed release in the form attached hereto as
Exhibit A or, at the Company’s election, such other form that the Company is then using
for employees similarly situated to the Employee, the Company will provide the Employee the
following:





     (A) a lump sum equivalent of 12 months of the Employee’s base salary as in effect on the Termination Date; and




     (B) full vesting of all stock options or other equity incentive awards that are outstanding and not vested as of the Termination Date; and




     (C) for 12 months following the Termination Date, the Employee also shall be entitled to
continuation, at the Company’s expense, of group medical, dental, long-term disability, accidental
death and disability, and life insurance benefits from the Company to the extent permitted under
such plans or as otherwise approved by the Board, as in



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effect immediately prior to the Termination Date; provided, however, that in the
event continuation of such benefits is not permitted under such plans, the Company
shall pay to Employee the cash equivalent of such benefits not permitted to be
covered under such plans.



               ii) The continuation of benefits at the Company’s expense pursuant to Section 5(c)(i)(C) shall be concurrent with any obligation of
the Company to provide continuation of coverage under COBRA, and shall not replace or extend the Employee’s right to continued coverage under COBRA.



          d) Definitions. For purposes of this Section 5, the
following words and phrases shall have the meanings indicated:




               i) “Change in Control” means an event or occurrence set forth in any one or more of subsections (1) through (4) below (including without limitation an event or
occurrence that constitutes a Change in Control under one of such subsections but is specifically
exempted from another such subsection):




     (1) the acquisition by an individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) (a “Person”) of beneficial ownership of any capital stock of
the Company if, after such acquisition, such Person beneficially owns (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) 50% or more of either
(x) the then-outstanding As-Converted Common Stock (as defined below) of the
Company (such outstanding shares, the “Outstanding As-Converted Company Common
Stock”) or (y) the combined voting power of the then-outstanding securities of the
Company entitled to vote generally in the election of directors (the “Outstanding Company
Voting Securities”); provided, however, that for purposes of this subsection (1), the following
acquisitions shall not constitute a Change in Control: (i) any acquisition
directly from the Company (excluding an acquisition pursuant to the exercise,
conversion or exchange of any security exercisable for, convertible into or
exchangeable for common stock or voting securities of the Company, unless the
Person exercising, converting or exchanging such security acquired such security
directly from the Company or an underwriter or agent of the Company), (ii) any
acquisition by the Company, (iii) any acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company, or (iv) any acquisition by any corporation pursuant to
a transaction which complies with clauses (i) and (ii) of subsection (3) of this
Section 5(d)(i); or




     (2) such time as the Continuing Directors (as defined below) do not constitute
a majority of the Board (or, if applicable, the Board of Directors of a successor
corporation to the Company), where the term “Continuing Director” means at any date
a member of the Board (i) who



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was a member of the Board on the date of the execution of this Agreement or (ii)
who was nominated or elected subsequent to such date by at least a majority of the
directors who were Continuing Directors at the time of such nomination or election
or whose election to the Board was recommended or endorsed by at least a majority
of the directors who were Continuing Directors at the time of such nomination or
election; provided, however, that there shall be excluded from this clause (ii)
any individual whose initial assumption of office occurred as a result of an
actual or threatened election contest with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or consents, by or
on behalf of a person other than the Board; or




     (3) the consummation of a merger, consolidation, reorganization,
recapitalization or statutory share exchange involving the Company or a sale or
other disposition of all or substantially all of the assets of the Company in one
or a series of related transactions (a “Business Combination”), unless, immediately
following such Business Combination, each of the following two conditions is
satisfied: (i) all or substantially all of the individuals and entities who were
the beneficial owners of the Outstanding As-Converted Company Common Stock and
Outstanding Company Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of the
then-outstanding As-Converted Common Stock and the combined voting power of the
then-outstanding securities entitled to vote generally in the election of
directors, respectively, of the resulting or acquiring corporation in such Business
Combination (which shall include, without limitation, a corporation which as a
result of such transaction owns the Company or substantially all of the Company’s
assets either directly or through one or more subsidiaries) (such resulting or
acquiring corporation is referred to herein as the “Acquiring Corporation”) in
substantially the same proportions as their ownership, immediately prior to such
Business Combination, of the Outstanding As-Converted Company Common Stock and
Outstanding Company Voting Securities, respectively; and (ii) no Person (excluding
any employee benefit plan (or related trust) maintained or sponsored by the Company
or by the Acquiring Corporation) beneficially owns, directly or indirectly, 50% or
more of the then outstanding As-Converted Common Stock of the Acquiring
Corporation, or of the combined voting power of the then-outstanding securities of
such corporation entitled to vote generally in the election of directors (except to
the extent that such ownership existed prior to the Business Combination); or




     (4) approval by the stockholders of the Company of a complete liquidation or
dissolution of the Company.



          ii) “As-Converted Common Stock” means the outstanding shares of common stock of an
entity together with all shares of common stock then





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issuable upon the conversion or exchange of any outstanding securities convertible into or
exchangeable for common stock of such entity, but excluding any common stock issuable upon the
exercise of any outstanding securities (such as options and warrants) exercisable for common stock
of such entity.




               iii) “Cause” shall mean: (a) the Employee’s willful misconduct with respect to the business
and affairs of the Company or any subsidiary thereof, (b) the Employee’s gross neglect of duties or
failure to act which can reasonably be expected to affect materially and adversely the business or
affairs of the Company or any subsidiary thereof, (c) the Employee’s material breach of any of the
agreements contained herein, any other written agreement between the Company and the Employee, or
any written policy of the Company governing the Employee’s conduct or employment whether now
existing or hereafter created, or the Employee’s breach of the Non-Compete Agreement (as defined in
Section 6), (d) the commission by the Employee of an act involving moral turpitude relating to the
Company, dishonesty in performance of employment duties or fraud, (e) the Employee’s conviction of
any felony, or of any misdemeanor involving fraud, theft, embezzlement, forgery or moral turpitude,
(f) possession or use of or impairment on account of illegal drugs, (g) abandonment of employment
duties or (h) conduct on the part of Employee relating to the Company’s business or his or her
employment duties (which is not authorized, directed or approved by the Company) which results in
governmental sanctions being imposed on the Company or the Employee. Before “Cause” under clause
(b) or (c) has been deemed to have occurred, the Company, the Board or the Committee must give the
Employee written notice detailing why the Company, the Board or the Committee, as the case may be,
has determined that Cause has occurred. The Employee shall then have 30 days after his or her
receipt of written notice to cure the item cited in the written notice so that “Cause” will have
not formally occurred with respect to the event in question.



               iv) “Disability” shall mean the Employee’s failure or inability to perform his or her duties
under this Agreement due to a mental or physical infirmity for a period of more than 120 days
during any 12 consecutive month period.



               v) “Good Reason” shall mean, and is limited to (A) a material diminution in the Employee’s
base salary, duties or responsibility without the prior written consent of the Employee or (B) the
transfer, without the prior written consent of the Employee, of the Employee’s permanent primary
place of employment to a location that is (x) more than 50 miles from the location of Employee’s
permanent primary place of employment and (y) more than 40 miles from the location of the
Employee’s residence. Before “Good Reason” has been deemed to have occurred, the Employee must give
the Company written notice detailing why the Employee believes a Good Reason event has occurred and
such notice must be provided to the Company within 30 days of the Employee’s actual knowledge of
the initial occurrence of such alleged Good Reason event. The Company shall then have 30 days after
its receipt of written notice to cure the item cited in the written notice so that “Good Reason”
will have not
formally occurred with respect to the event in question. A termination of employment due to
Good Reason shall occur no later than 75 days after the Employee’s actual knowledge of the
condition giving rise to Good Reason.



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     6)
PROPRIETARY INFORMATION AND NON-COMPETE AGREEMENT.



          a) The Employee has executed the Proprietary Information and Invention and Non-Compete
Agreement, a copy of which is attached hereto and the text of which is incorporated herein as Annex
A (the “Non-Compete Agreement”) and covenants that the Employee will comply with the terms of the
Non-Compete Agreement.




          b) For purposes of the Non-Compete Agreement, the “Severance Period” means a period of
six months following the Termination Date, except that in the event of a termination of the
Employee’s employment with the Company as described in Section 5(c)(i), the period shall be 12
months following the Termination Date.




     7) INTERNAL REVENUE CODE SECTION 409A. The following rules shall apply with respect
to distribution of the payments and benefits, if any, to be provided to the Employee under Section 5:



          a) It is intended that each installment of the payments and benefits provided under
Section 5 shall be treated as a separate “payment” for purposes of Section 409A of the U.S.
Internal Revenue Code of 1986, as amended (the “Code”), and the guidance issued thereunder
(“Section 409A”). Neither the Company nor the Employee shall have the right to accelerate or defer
the delivery of any such payments or benefits except to the extent specifically permitted or
required by Section 409A;




          b) If, as of the date of the “separation from service” of the Employee from the
Company, the Employee is not a “specified employee” (each, for purposes of this Agreement, within
the meaning of Section 409A), then each installment of the payments and benefits shall be made on
the dates and terms set forth in Section 5; and




          c) If, as of the date of the separation from service of the Employee from the Company,
the Employee is a specified employee, then:




               i) Each installment of the payments and benefits due under Section 5 that, in accordance with
the dates and terms set forth herein, will in all circumstances, regardless of when the separation
from service occurs, be paid within the Short-Term Deferral Period (as defined below) shall be
treated as a short-term deferral within the meaning of Treasury
Regulation Section 1.409A-1(b)(4)
to the maximum extent permissible under Section 409A. For purposes of this Agreement, the
“Short-Term Deferral Period” means the period ending on the later of (A) the 15th day of the third
month following the end of the Employee’s tax year in which the Employee’s separation from service
occurs and (B) the 15th day of the third month following the end of the Company’s tax year in which
the Employee’s separation from service occurs; and



               ii) Each installment of the payments and benefits due under Section 5 that is not paid within
the Short-Term Deferral Period and that would, absent this
subsection, be paid within the six-month
period following the separation from service of the Employee shall not be paid until the date that
is six months and one day after such separation from service (or, if earlier, the death of the
Employee), with any such



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installments that are required to be delayed being accumulated during the six-month period and paid
in a lump sum on the date that is six months and one day following the Employee’s separation from
service and any subsequent installments, if any, being paid in accordance with the dates and terms
set forth herein; provided, however, that the preceding provisions of this sentence shall not apply
to any installment of payments and benefits if and to the maximum extent that that such installment
is deemed to be paid under a separation pay plan that does not provide for a deferral of
compensation by reason of the application of Treasury
Regulation 1.409A-1(b)(9)(iii) (relating to
separation pay upon an involuntary separation from service) or Treasury Regulation
1.409A-1(b)(9)(iv) (relating to reimbursements and certain other separation payments). Such
payments due under Section 5 shall bear interest at an annual rate equal to the prime rate as set
forth in the Eastern edition of the Wall Street Journal on the Termination Date, from the
Termination Date to the date of payment. Any installments that qualify for the exception under
Treasury Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the last day of the
second taxable year of the Employee following the taxable year of the Employee in which the
separation from service occurs.




     8) INTERNAL REVENUE CODE SECTION 280G. In the event that it is determined that any
payment or distribution of any type to the Employee or for the Employee’s benefit made by the
Company, by any of its affiliates, by any Person who acquires ownership or effective control or
ownership of a substantial portion of the Company’s assets (within he meaning of Section 280G of
the Code and the regulations thereunder) or by any affiliate of such Person, whether paid or
payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, would
be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties with
respect to such excise tax (such excise tax, together with any such interest or penalties, are
collectively referred to as the “Excise Tax”), then such payments or distributions or benefits
shall be payable either: (a) in full or (b) in a lesser amount reflecting a reduction in payments
to the extent necessary to result in no portion of such payments or distributions or benefits
being subject to the Excise Tax. Method (b) shall be used unless method (a) provides a higher
after-tax benefit to the Employee. If method (b) is used, then the Employee shall have the right
to determine which payments or benefits will be reduced and in what magnitude. The Employee and
the Company shall furnish such documentation and documents as may be necessary for the Company’s
independent external accountants to perform the requisite computations and analysis contemplated by
this Section 8.



     9) REMEDIES UPON BREACH. The Employee acknowledges that the restrictions contained in this
Agreement are necessary for the protection of the business and goodwill of the Company and are
reasonable for such purpose. The Employee agrees that any breach of this Agreement by the Employee
will cause irreparable damage to the Company and that in the event of such breach, the Company
shall be entitled, in addition to monetary damages and to any other remedies available to the
Company under this Agreement and at law, to equitable relief, including without limitation
injunctive relief, and to payment by the Employee
of all costs incurred by the Company in enforcing the provisions of this Agreement.



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     10) ATTORNEYS’ FEES. If either party to this Agreement breaches any of the terms hereof, that
party shall pay to the non-defaulting party all of the non-defaulting party’s costs and expenses,
including without limitation attorneys’ fees, incurred by that party in enforcing the terms of this
Agreement.



     11) WAIVER OF TRIAL BY JURY. THE PARTIES TO THIS AGREEMENT DESIRE TO
AVOID THE ADDITIONAL TIME AND EXPENSE RELATED TO JURY TRIAL OF ANY DISPUTES ARISING
HEREUNDER. THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES TO THIS AGREEMENT THAT THEY
SHALL AND HEREBY DO WAIVE TRIAL BY JURY OF ANY CLAIM, COUNTERCLAIM, OR
THIRD-PARTY CLAIM, INCLUDING WITHOUT LIMITATION ANY AND ALL CLAIMS OR INJURY OR DAMAGES, BROUGHT
BY EITHER PARTY AGAINST THE OTHER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT.
THE PARTIES ACKNOWLEDGE AND AGREE THAT THIS WAIVER IS KNOWINGLY, FREELY, AND VOLUNTARILY GIVEN, IS
DESIRED BY BOTH PARTIES, AND IS IN THE BEST INTERESTS OF BOTH PARTIES.



     12) ASSIGNMENT. The Employee acknowledges that services are unique and personal.
Accordingly, the Employee may not assign rights or obligations under this Agreement.



     13) SUCCESSORS. This Agreement shall be binding upon, and inure to the benefit of, any
successor to all or substantially all of the Company’s business and/or assets, and the Company will
require any such successor to expressly assume and agree in writing to perform this Agreement in
the same manner and to the same extent that the Company would be required to perform it if no such
succession had taken place. For all purposes under this Agreement, the term “Company” shall include
any successor to the Company’s business and/or assets which becomes bound by this Agreement by
contract, operation of law or otherwise. This Agreement will inure to the benefit of and be
enforceable by the Employee and the Employee’s personal or legal representatives, executors,
estate, trustee, administrators, successors, heirs, distributees, devisees and legatees, as
applicable. If the Employee dies and any amounts become payable under this Agreement, the Company
will pay those amounts to the Employee’s estate or named beneficiary, as applicable, except as
otherwise may be required by applicable law.



     14) WAIVER AND AMENDMENT. No waiver of any term or condition of this Agreement shall be
effective unless in writing and signed by the party so waiving. No amendment to this Agreement
shall be valid unless in writing and signed by the Company and Employee.



     15) SEVERABILITY. If any provision of this Agreement or any attachment, annex or exhibit
hereto, is invalid under any applicable statute or rule of law, it is to that extent to be deemed
omitted. The remainder of the Agreement, and such attachments, annexes and exhibits, shall be
valid and enforceable to the maximum extent possible.



     16) GOVERNING LAW AND JURISDICTION. The parties agree that this



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Agreement, and all attachments, annexes and exhibits hereto, shall be construed and enforced in
accordance with the laws of the Commonwealth of Kentucky, and that the courts of the Commonwealth
of Kentucky have exclusive jurisdiction over actions to enforce any term of this Agreement or any
attachment, annex or exhibit hereto or any action alleging a breach of this Agreement.




     17) HEADINGS. Headings in this Agreement are for convenience only and shall not be used
to interpret or construe its provisions.



     18) NOTICE. Any notice or communications that are required or that may be given
pursuant to this Agreement shall be in writing and shall be deemed to be duly given if (a)
delivered personally or (b) sent by first class mail, postage prepaid, return receipt requested or
prepaid via a reputable nationwide overnight courier, in each case in this clause (b), at the
addresses specified in the preamble to this Agreement or such other place as may be specified in
writing by a party from time to time. Any notice or communications shall be deemed to be
effective (i) if personally delivered, when delivered in hand to the party to which it is directed,
(ii) if sent by first class mail, postage prepaid, on the third business day following the day of
the dispatch thereof or (iii) if sent via a reputable overnight courier service, one business day
following the day it is sent.



     19) COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which taken together shall constitute one and the same
instrument.



[Remainder of page intentionally left blank]






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     IN WITNESS WHEREOF, Employee and the Company have executed this Agreement as of the date first
above written.



COMPANY:




	 	 	 	 	 	 	 
	 	 	XANODYNE PHARMACEUTICALS, INC.  
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Greg Flexter	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Greg Flexter
 Title: President & CEO	 	 
	 
	 	 	 	 	 	 
	EMPLOYEE:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Thomas P. Jennings	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Thomas P. Jennings	 	 






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ANNEX “A”

to the Employment Agreement




XANODYNE PHARMACEUTICALS, INC.




EMPLOYEE PROPRIETARY INFORMATION

AND INVENTION AND NON-COMPETE AGREEMENT




     I have entered into an employment agreement dated as of                     (the
“Employment Agreement”) with Xanodyne Pharmaceuticals, Inc., a Delaware company (together with its
subsidiaries, the “Company”). Capitalized terms used herein and not otherwise defined shall have
the meanings set forth in the Employment Agreement. In consideration of my [continued] employment
by the Company pursuant to the Employment Agreement and the compensation paid or to be paid to me
by the Company, I hereby covenant and agree; that:



     1. My interest in (a) any and all inventions, improvements, and ideas (whether or not
patentable) which I have made or conceived, or may make or conceive, either solely or jointly with
others, at any time during the course of and in connection with my employment with the Company,
whether or not during normal working hours or on the premises of the Company, and (b) any
suggestions, proposals, writing and the like, of any sort whatsoever, including without limitation
any interest in any copyright and copyrightable material which relate or are applicable directly or
indirectly to any phase of the Company’s business, and which I develop during the course of and in
connection with my employment, whether or not during normal working hours or on the premises of the
Company, shall be the exclusive property of the Company, its successors, assignees, or nominees.
(The items defined in (a) and (b) above will hereinafter be referred to collectively as
“Proprietary Subject Matter.”)



     2. I shall make full and prompt disclosure in writing to an official of the Company, or to
anyone designated for that purpose by the Company, of all Proprietary Subject Matter made or
conceived during the course of and in connection with my employment.



     3. I hereby assign to the Company all of my right, title and interest in and to the
Proprietary Subject Matter and any and all related patent rights, copyrights and applications and
registrations therefor. At the request and expense of the Company, but without further compensation
to me, I shall do such acts, and execute, acknowledge and deliver all such papers, including
without limitation patent and copyright applications or assignments, as may be necessary or
desirable in the sole discretion of the Company to obtain, maintain, protect or vest in the Company
the entire right, title and interest in and to Proprietary Subject Matter and any patent
applications, patents, copyright or other proprietary rights of any kind relating thereto, in
all countries of the world; including without limitation rendering such assistance as the Company
may request in any contemplated or pending litigation, patent office proceeding, or other
proceeding. I hereby appoint the Company my attorney-in-fact to execute and deliver any such
documents on my behalf in the event I should fail or refuse to do so within a reasonable



Annex A-1





   











 




period following the Company’s request. I understand that, to the extent this Non-Compete
Agreement shall be construed in accordance with the laws of any state which limits assignability
to the Company of certain employee inventions, this Non-Compete Agreement shall be interpreted not
to apply to any such invention which a court rules or the Company agrees is subject to such state
limitation.




     4. I shall not disclose or cause others to disclose to the Company, or induce
the Company to use, any information or material, which is the property of any former or
concurrent employer, or any other person or entity with whom I have an agreement or to
whom I owe a duty to keep such information in confidence. Those persons or entities
with whom I have such agreements or to whom I owe such a duty are identified on
Exhibit I attached hereto. I hereby represent to the Company that, except as
identified on Exhibit I attached hereto, I am not bound by any agreement or any other previous or
existing business relationship which conflicts with or prevents the full performance of my
duties and obligations to the Company (including without limitation my duties and
obligations under this Non-Compete Agreement or any other agreement with the
Company) during my employment.



     5. Since the work for which I am employed and upon which I shall be
engaged will include Company knowledge and information of a private, confidential, or
secret or proprietary nature, I shall not, except as required in the conduct of the
Company’s business or as authorized in writing by the Company, publish, disclose, or
make use of, or authorize anyone else to publish, disclose or make use of any such
knowledge or information, of a confidential, secret or proprietary nature or other
information which in any way relates to the business, business relationships and financial
affairs of the Company or the design, construction, manufacture or sale of the Company’s
products or services.



     6. I will keep and maintain adequate and current written records of my work and inventions at
all times and stages, in the form of notes, sketches, drawings, memoranda, and reports, which
records shall be and remain the property of and be available to the Company at all time. All
documents, written information and other items including without limitation notes, sketches,
manuals, blueprints, notebooks, products, tools, fixtures, records and information relating to the
business of the Company and all copies thereof, made or obtained by me while employed by the
Company shall be the exclusive property of the Company and shall be delivered by me to the Company
on termination of my employment (whether such termination is caused by act of the Company or by my
own resignation or other act) or at any time as reasonably requested by the Company.



     7. During the term of my Employment Agreement and for a period of time equal to the Severance
Period, as defined in my Employment Agreement, and whether as owner, partner, officer, director,
employee, consultant, investor, lender or otherwise, except as the holder of not more than 1% of
the outstanding stock of a publicly-held company, I agree not to: (i) engage in any business or
enterprise that is competitive with the Company’s business, including without limitation to any
business or enterprise that develops, manufactures, markets, licenses, sells or provides any
product or service that



Annex A-2





 









 







competes with any product or service developed, manufactured, marketed, licensed, sold or provided,
or planned to be developed, manufactured, marketed, licensed, sold or provided, by the Company or
any of its subsidiaries while I am or was employed by the Company; (ii) solicit or accept orders
with or for any of the products or business activities that are competitive with the Company’s
products or business activities; (iii) solicit or entice away any employee from the Company, or
hire any such employee; (iv) solicit or request investments or funds from any other person or
entities that are affiliated with the Company or for any entity which competes with the Company;
and/or (v) solicit, divert or take away or attempt to divert or take away, the business or
patronage of any of the clients, customers or accounts, or prospective clients, customers or
accounts of the Company with respect to products or business activities that are competitive with
the Company’s products or business activities. I acknowledge that even at such times as I may be
entitled to compete with the Company after the periods of restriction in this Non-Compete Agreement
or my Employment Agreement, the provisions of this Non-Compete Agreement relating to the
confidential nature and ownership of Proprietary Subject Matter in favor of the Company will
survive and continue to be binding upon me.




     8. Upon termination of my employment with the Company, I shall, if requested by the Company,
reaffirm in writing all of the obligations set forth in paragraph 1 through 7 of this Non-Compete
Agreement. All such obligations expressly survive the termination of my employment with the
Company.



     9. Excepted from this Non-Compete Agreement are only such inventions, improvements, ideas,
suggestions, proposals, writings and the like relating to any phase of the Company’s business made
or conceived by me prior to my employment with the Company which are (a) embodied in a United
States Letters Patent, Copyright Registration or an application for United States Letters Patent
or Copyright Registration filed prior to the commencement of my employment; (b) in the physical
possession of a former employer who owns them; or (c) disclosed in detail in Exhibit I
attached hereto.



     10. I agree that should I violate any obligation imposed on me in this Non-Compete Agreement,
I shall continue to be bound by the obligation until a period equal to the term of such obligation
has expired without violation of such obligation.



     11. In the event that any one or more of the provisions contained herein shall, for any
reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provisions of this Non-Compete
Agreement, and all other provisions shall remain in full force and effect. If any of the
provisions of this Non-Compete Agreement is held to be excessively broad, it shall be reformed and
construed by limiting and reducing it so as to be enforceable to the maximum extent permitted by
law.



     12. This Non-Compete Agreement is attached to and forms a part of my Employment Agreement with
the Company and is subject to following provisions therein: Section 9 (Remedies Upon Breach),
Section 10 (Attorney’s Fees), Section 11 (WAIVER OF TRIAL BY JURY), Section 12 (Assignment),
Section 13 (Successors), Section 14 (Waiver and Amendment), Section 16 (Governing Law and
Jurisdiction) and



Annex A-3




 









 





Section 18 (Notice).




     IN
WITNESS WHEREOF, I have hereunto set my hand this 
                    
 day of                      , 20                    .




	 	 	 
	 
	 	/s/  Thomas P. Jennings
	 
	 	 
	 
	 	Thomas P. Jennings







Annex A-4





 









 










EXHIBIT I

to the Non-Compete Agreement



This Exhibit I is attached to the Xanodyne Pharmaceuticals, Inc. (the “Company”) Employee
Proprietary Information and Invention and Non-Compete Agreement (the “Non-Compete Agreement”) of
the employee signatory thereto (the “Employee”).



1. In accordance with paragraph 4 of the Non-Compete Agreement, the following are all former or
concurrent employers and all other persons and entities with whom the Employee has an agreement or
to whom the Employee owes a duty to keep information in confidence:




Ausio Pharmaceuticals LLC



2. In accordance with paragraph 4 of the Non-Compete Agreement, the following are all agreements
to which the Employee is bound and all other previous and existing business relationships which
conflict with or prevent the full performance of the Employee’s duties and obligations to the
Company (including without limitation the Employee’s duties and obligations under the Non-Compete
Agreement or any other agreement with the Company) during the Employee’s employment with the
Company:




Ausio Pharmaceuticals LLC


3. The following are all inventions, improvements, ideas, suggestions, proposals, writings and the
like relating to any phase of the Company’s business made or conceived by the Employee prior to the
Employee’s employment with the Company that shall be excepted from the Non-Compete Agreement
pursuant to paragraph 9 therein:




[None.]




 









 





EXHIBIT A

to the Employment Agreement




FORM OF RELEASE




[Company Letterhead]





[Date]



[Employee Name]

[Employee Address]

[Employee Address]




Dear [Employee Name]:




          In connection with the termination of your employment with Xanodyne Pharmaceuticals, Inc. (the
“Company”) on [Termination Date], you are eligible to receive the Severance Benefits (as defined
below), if you sign and return this letter agreement to [the General Counsel of the Company] in the
enclosed self-addressed stamped envelope postmarked by [Return Date -21 days from date of receipt
of this letter agreement] and it becomes binding between you and the Company. “Severance Benefits”
means the severance benefits set forth in Section 5[(a)/(b)/(c)] of the Employment Agreement dated
as of [Date], between you and the Company (your “Employment Agreement”) and, if and only if you are
a “Participant” as defined in the Company’s Enhanced Severance Plan, any enhanced severance
benefits available to you pursuant to such Enhanced Severance Plan.




     By signing and returning this letter agreement and not revoking your acceptance, you will be
agreeing to the terms and conditions set forth in the numbered paragraphs below, including the
release of claims set forth in paragraph 2. Therefore, you are advised to consult with an attorney
before signing this letter agreement and you may take up to twenty-one (21) days to do so. If you
sign this letter agreement, you may change your mind and revoke your agreement during the seven
(7) day period after you have signed it by notifying [the General Counsel of the Company] in
writing. If you do not so revoke, this letter agreement will become a binding agreement between
you and the Company upon the expiration of the seven (7) day period.



          If you choose not to sign and return this letter agreement by [Return Date-Same as Above], or
if you timely revoke your acceptance in writing, you shall not receive any Severance Benefits from
the Company. You will, however, receive payment on your Termination Date, as defined below, for
your final wages and any unused vacation time accrued through the Termination Date. Also,
regardless of signing this letter agreement, you may elect to continue receiving group medical
insurance pursuant to the federal “COBRA” law, 29 U.S.C. § 1161 et seq. If you so
elect, you shall pay all premium costs on a monthly basis for as long as, and to the extent that,
you remain eligible for COBRA continuation. You should consult the COBRA materials to be provided
by the Company for details regarding these benefits.




Exhibit A-1




 









 





                   The following numbered paragraphs set forth the terms and conditions that will apply if you
timely sign and return this letter agreement and do not revoke it in writing within the seven (7)
day period.





	 	1.	 	Termination Date — Your effective date of termination from the Company is
[Date] (the “Termination Date”).
	 
	 	2.	 	Release — In consideration of the payment of the Severance Benefits, which
you acknowledge you would not otherwise be entitled to receive, you hereby fully, forever,
irrevocably and unconditionally release, remise and discharge the Company, its officers,
directors, stockholders, corporate affiliates, subsidiaries, parent companies, agents and
employees (each in their individual and corporate capacities) (hereinafter, the “Released
Parties”) from any and all claims, charges, complaints, demands, actions, causes of
action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants,
contracts, agreements, promises, doings, omissions, damages, executions, obligations,
liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature
that you ever had or now have against the Released Parties, including, but not limited to,
any and all claims arising out of or relating to your employment with and/or separation
from the Company, including, but not limited to, all claims under Title VII of the Civil
Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Americans With
Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Age
Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Family and
Medical Leave Act, 29 U.S.C. § 2601 et seq., the Worker Adjustment and
Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et seq., Section
806 of the Corporate and Criminal Fraud Accountability Act of 2002, 18 U.S.C. 1514(A), the
Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., the Fair Credit
Reporting Act, 15 U.S.C. § 1681 et seq., the Employee Retirement Income
Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., Executive Order
11246, and Executive Order 11141, all as amended; all claims arising out of the Kentucky
Civil Rights Act, Ky. Rev. Stat. Ann. § 344.010 et seq., the 1976 Kentucky
Equal Opportunities Act, Ky. Rev. Stat. Ann. § 207.130 et seq., Ky. Rev.
Stat. Ann. § 337.420 et seq. (Kentucky equal pay
law), Ky. Rev. Stat. Ann. § 337.015 (Kentucky adoption leave law), and Ky. Rev. Stat. Ann. §§ 207.170, 337.990,
338.121 (Kentucky whistleblower protection law), all as amended; all common law claims
including, but not limited to, actions in defamation, intentional infliction of emotional
distress, misrepresentation, fraud, wrongful discharge, and breach of contract (including,
without limitation, all claims with respect to severance benefits or otherwise arising out
of the Employment Agreement and any amendments thereto); all claims to any non-vested
ownership interest in the Company, contractual or otherwise, and any claim or damage
arising out of your employment with and/or separation from the Company (including a claim
for retaliation) under any common law theory or any federal, state or local statute or
ordinance not expressly referenced above; provided, however, that nothing in this letter
agreement:





Exhibit A-2





 












 






	 	a.	 	prevents you from filing a charge with, cooperating with, or participating
in any proceeding before the Equal Employment Opportunity Commission
or a state fair employment practices agency (except that you acknowledge
that you may not be able to recover any monetary benefits in connection
with any such claim, charge or proceeding);
	 
	 	b.	 	releases the Company from its obligations to you following termination of
your employment with respect to any stock options, restricted stock,
restricted stock units, or other equity awards granted to you and vested as
of the Termination Date pursuant to any applicable Company equity
incentive plans; or
	 
	 	c.	 	releases the Company from its obligations to you following termination of
your employment to pay, if and only if you are a “Participant” in the
Company’s Company Sale Bonus Plan and not a “Terminated Participant”
as provided therein, the bonus amount payable to you, if any, in
accordance with the terms and conditions of such Company Sale Bonus
Plan.






	3.	 	Non-Disclosure, Non-Competition and Non-Solicitation — You acknowledge
and reaffirm your obligations to keep confidential and not disclose all non-public
information concerning the Company and its clients that you acquired during the
course of your employment with the Company, as stated more fully in the
Employee Proprietary and Non-Compete Agreement dated as of [Date] (the
“Non-Compete Agreement”) you executed for the benefit of the Company, which
remains in full force and effect. You further acknowledge and reaffirm your non
competition and non-solicitation obligations and other obligations under
paragraphs 1 through 7 of the Non-Compete Agreement, which also remain in full
force and effect.
	 
	4.	 	Return of Company Property — You confirm that you have returned to the
Company all keys, files, records (and copies thereof), equipment (including, but
not limited to, computer hardware, software and printers, wireless handheld
devices, cellular phones, pagers, etc.), Company identification, and any other
Company-owned property in your possession or control and have left intact all
electronic Company documents, including but not limited to those which you
developed or helped to develop during your employment. You further confirm
that you have cancelled all accounts for your benefit, if any, in the Company’s
name, including but not limited to, credit cards, telephone charge cards, cellular
phone and/or pager accounts and computer accounts.
	 
	5.	 	Business Expenses and Final Compensation — You acknowledge that you have
been reimbursed by the Company for all relocation costs and business expenses
incurred in conjunction with the performance of your employment and that no
other reimbursements are owed to you. You further acknowledge that you have
received payment in full for all services rendered in conjunction with your
employment by the Company, including payment for all wages, bonuses and





Exhibit A-3




 









 









	 	 	accrued, unused vacation time, and that no other compensation is owed to you except as
provided herein.
	 
	6.	 	Non-Disparagement — To the extent permitted by law, you understand and agree
that as a condition for payment to you of the Severance Benefits, you shall not
make any false, disparaging or derogatory statements to any person or entity,
including any media outlet, regarding the Company or any of its directors,
officers, employees, agents or representatives or about the Company’s business
affairs and financial condition.
	 
	7.	 	Continued Assistance — You agree that after the Termination Date you will
provide all reasonable cooperation to the Company, including but not limited to,
assisting the Company transition your job duties, assisting the Company in
defending against and/or prosecuting any litigation or threatened litigation, and
performing any other tasks as reasonably requested by the Company.
	 
	8.	 	Amendment and Waiver — This letter agreement shall be binding upon the
parties and may not be modified in any manner, except by an instrument in
writing of concurrent or subsequent date signed by duly authorized
representatives of the parties hereto. This letter agreement is binding upon and
shall inure to the benefit of the parties and their respective agents, assigns, heirs,
executors, successors and administrators. No delay or omission by the Company
in exercising any right under this letter agreement shall operate as a waiver of that
or any other right. A waiver or consent given by the Company on any one
occasion shall be effective only in that instance and shall not be construed as a bar
to or waiver of any right on any other occasion.
	 
	9.	 	Validity — Should any provision of this letter agreement be declared or be
determined by any court of competent jurisdiction to be illegal or invalid, the
validity of the remaining parts, terms or provisions shall not be affected thereby
and said illegal or invalid part, term or provision shall be deemed not to be a part
of this letter agreement.
	 
	10.	 	Confidentiality — To the extent permitted by law, you understand and agree that
as a condition for payment to you of the Severance Benefits herein described, the
terms and contents of this letter agreement, and the contents of the negotiations
and discussions resulting in this letter agreement, shall be maintained as
confidential by you and your agents and representatives and shall not be disclosed
except to the extent required by federal or state law or as otherwise agreed to in
writing by the Company.
	 
	11.	 	Nature of Agreement — You understand and agree that this letter agreement does
not constitute an admission of liability or wrongdoing on the part of the Company.
	 
	12.	 	Acknowledgments — You acknowledge that you have been given at least twenty-one (21) days to consider this letter agreement, and that the
Company advised you  to consult with an attorney of your own choosing prior to signing this letter





Exhibit A-4




  









 









	 	 	agreement. You understand that you may revoke this letter
agreement for a period of seven (7)
days after you sign this letter agreement by notifying [the General Counsel of the Company] in
writing, and the letter agreement shall not be effective or enforceable until the expiration
of this seven (7) day revocation period. You understand and agree that by entering into this
letter agreement, you are waiving any and all rights or claims you might have under the Age
Discrimination in Employment Act, as amended by the Older Workers Benefits Protection Act, and
that you have received consideration beyond that to which you were previously entitled.
	 
	13.	 	Voluntary Assent — You affirm that no other promises or agreements of any kind
have been made to or with you by any person or entity whatsoever to cause you to
sign this letter agreement, and that you fully understand the meaning and intent of
this letter agreement. You state and represent that you have had an opportunity to
fully discuss and review the terms of this letter agreement with an attorney. You
further state and represent that you have carefully read this letter agreement,
understand the contents herein, freely and voluntarily assent to all of the terms
and conditions hereof and sign your name of your own free act.
	 
	14.	 	Applicable Law — This letter agreement shall be interpreted and construed by the
laws of the Commonwealth of Kentucky, without regard to conflict of laws
provisions. You hereby irrevocably submit to and acknowledge and recognize the
jurisdiction of the courts of the Commonwealth of Kentucky, or if appropriate, a
federal court located in the Commonwealth of Kentucky (which courts, for
purposes of this letter agreement, are the only courts of competent jurisdiction),
over any suit, action or other proceeding arising out of, under or in connection
with this letter agreement or the subject matter hereof.
	 
	15.	 	WAIVER OF JURY TRIAL — YOU AND THE COMPANY DESIRE TO
AVOID THE ADDITIONAL TIME AND EXPENSE RELATED TO JURY
TRIAL OF ANY DISPUTES ARISING HEREUNDER. THEREFORE, IT
IS MUTUALLY AGREED BY AND BETWEEN YOU AND THE
COMPANY THAT YOU AND THE COMPANY SHALL AND HEREBY DO WAIVE TRIAL BY JURY OF ANY CLAIM,
COUNTERCLAIM, OR THIRD-PARTY CLAIM, INCLUDING WITHOUT LIMITATION ANY AND ALL CLAIMS OR INJURY
OR DAMAGES, BROUGHT BY EITHER PARTY AGAINST THE OTHER ARISING OUT OF OR IN ANY WAY CONNECTED
WITH THIS LETTER AGREEMENT. YOU AND THE COMPANY ACKNOWLEDGE AND AGREE THAT THIS WAIVER
IS KNOWINGLY, FREELY, AND VOLUNTARILY GIVEN, IS DESIRED

BY BOTH PARTIES, AND IS IN THE BEST INTERESTS OF BOTH PARTIES.
	 
	16.	 	Entire Agreement — This letter agreement contains and constitutes the entire
understanding and agreement between the parties hereto with respect to the
Severance Benefits and the settlement of claims against the Company and cancels
all previous oral and written negotiations, agreements or commitments in





Exhibit A-5



 









 









	 	 	connection therewith, including without limitation your Employment Agreement and any
amendments thereto. Nothing in this paragraph or otherwise in this letter agreement, however,
shall modify, cancel or supersede your obligations as set forth in paragraph 3.
	 
	17.	 	Tax Acknowledgement — In connection with the Severance Benefits provided to
you pursuant to this letter agreement, the Company shall withhold and remit to the
tax authorities the amounts required under applicable law, and you shall be
responsible for all applicable taxes with respect to such payments and
consideration under applicable law. You acknowledge that you are not relying
upon the advice or representation of the Company with respect to the tax
treatment of any of the Severance Benefits.
	 
	18.	 	Section 409A — The Severance Benefits under this letter agreement are intended
to comply with, or be exempt from, the provisions of Section 409A of the Internal
Revenue Code of 1986 and this letter agreement shall be administered and
construed accordingly.





Exhibit A-6



 









 











     If you have any questions about the matters covered in this letter agreement, please call
[Name] at [Phone Number].



	 	 	 	 	 
	 	        Very truly yours, 



Xanodyne Pharmaceuticals, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 




     I hereby agree to the terms and conditions set forth above. I have been given at least
twenty-one (21) days to consider this letter agreement and I have chosen to execute this on the
date below. I intend that this letter agreement will become a binding agreement between me and the
Company if I do not revoke my acceptance in seven (7) days.



	 	 	 
	 
	 

	 	 
	[Employee Name]

	 	Date





To be returned in the enclosed self-addressed stamped envelope by [Return Date — 21 days from date
of receipt of this letter agreement].




Exhibit A-7