Document:

exv10w3

 

EXHIBIT 10.3

Amended and Restated Employment Agreement

          THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into
effective as of April 23rd, 2007 (“Effective Date”), by and between THORATEC CORPORATION, a
California corporation (the “Company”), and Lawrence Cohen (“Executive”) and amends and restates an
employment agreement between the parties hereto dated August 5, 2005 (the “Original Employment
Agreement”).

WITNESSETH

          WHEREAS, the Company desires to continue to employ Executive and in order to attract and
retain the services of Executive, the Company is willing to provide certain severance and other
benefits to the Executive as described herein; and

          WHEREAS, by reason of Executive’s employment with the Company, Executive will receive access
to and possession of Company Confidential Information (as more fully set forth in Exhibit A), as
shall exist from time to time; and

          WHEREAS, the Company and Executive each desire to make certain amendments and changes to the
Original Employment Agreement to be reflected in this Agreement.

          NOW THEREFORE, in consideration of the mutual covenants and promises hereinafter set forth and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Executive hereby agree as follows:

          THE PARTIES AGREE AS FOLLOWS:

     1. Position and Duties.

          1.1 Title. During the term of this Agreement, Executive shall serve as the President,
International Technidyne Corporation (“ITC”), a subsidiary of the Company, subject to policies of
the Company and ITC and the terms and conditions of this Agreement. If there is any conflict
between this Agreement and any written Company or ITC policy, this Agreement shall control.

          1.2 Duties. Executive agrees that he shall perform, to the best of his ability, the
employment duties assigned to him by the Company, and shall devote his full time and attention,
with undivided loyalty, to the business and affairs of the Company while employed pursuant to this
Agreement. Executive shall report to the Chief Executive Officer of the Company.

 

 

     2. Compensation.

          2.1 Base Salary. Effective as of the date of this Agreement, the Executive shall
receive for his services under this Agreement an annual base salary of three hundred thousand
($300,000) dollars.

          2.2 Annual Target Bonus. Executive will be eligible for an annual incentive bonus
equal to a target amount of seventy (70%) percent of Executive’s base salary. Such annual
incentive bonus shall be subject to the achievement of certain individual and corporate objectives,
as shall be annually established by the Company’s Chief Executive Officer, as well as to the terms
and conditions of the Company’s incentive compensation plan applicable to executive officers.

          2.3 Stock Options. Executive shall be eligible for periodic grants of stock options,
as may be approved by the Board of Directors. Stock options must be exercised within the time
period specified in the Option Agreement and the Company’s Stock Option Plan. 

     3. Benefits.

          3.1 Benefits Generally. Executive shall be eligible to continue participate in such
of the Company’s benefit plans as are generally available to senior officers of the Company,
including, without limitation, medical, dental, life and disability insurance plans. 

     4. Outside Employment.

          4.1 Other Affiliations. Executive shall not perform consultation or other services
for any other company, corporation, or other commercial enterprise (other than for subsidiaries or
affiliates of the Company), during the term of Executive’s employment under this Agreement, unless
Executive has received written approval to do so from the Chief Executive Officer.

          4.2 Conflict of Interest. Executive warrants that (a) Executive is not obligated
under any other employment, consulting, or other agreement which would affect the Company’s rights
or Executive’s duties under this Agreement, and (b) this Agreement is not in conflict with
Executive’s commitments to any party.

     5. Confidentiality. Executive warrants that he is obligated under the Company
Employee Confidential Information and Inventions Agreement between the Company and Executive
attached as Exhibit A hereto (the “ECII Agreement”) .

     6. Term. This Agreement shall have a term of four (4) years commencing on the
effective date of the Original Employment Agreement, unless extended or terminated sooner in
accordance with the terms provided herein.

     7. Separation Benefits.

          7.1 Employment At Will. Executive understands and agrees that employment with the
Company is “at will”, which means that either Executive or the Company may, subject

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to the terms of this Agreement, terminate the employment relationship at any time with or
without cause. The Company may terminate Executive’s employment for Cause or other than for Cause
immediately upon notice to Executive. Executive may terminate his employment for any reason upon
30 days’ written notice to the Company of such termination. If this Agreement is terminated by the
Company for Cause or by the Executive (except for “Good Reason” after a Change of Control),
Executive shall receive no separation benefits or other severance benefits of any kind. 

          7.2 Termination of Executive Without Cause. If the Executive’s employment is
involuntarily terminated by the Company or ITC (other than for Cause), the Executive shall be paid
a standard severance pay benefit equal to one (1) times the Executive’s then-current annual base
salary. Such amount shall be payable in compliance with Section 7.11 in a cash lump sum as soon as
reasonably practicable (as provided by law) after the Executive’s termination of employment and
after the Executive executes and delivers an effective release of claims, in a form acceptable to
the Company and at the time specified by the Company, and remains in compliance with all applicable
restrictive covenants, including those set forth in this Agreement and the ECII Agreement. 

          7.3 Termination of Executive After a Change of Control or for Good Reason.
Notwithstanding Section 7.2, if the Executive would otherwise have been entitled to benefits
pursuant to Section 7.2 but his involuntary termination of employment by the Company or ITC occurs
within eighteen (18) months after a Change of Control, or if the Executive terminates his
employment with the Company or ITC for Good Reason during such period, the Executive shall be paid
in lieu of the standard severance pay benefit described in Section 7.2 a Change of Control
severance pay benefit equal to two (2) times the Executive’s then-current annual base salary plus
two (2) times the greatest of (a) the target bonus for the year preceding the year in which the
Executive’s termination occurs, (b) the actual bonus for such prior year, or (c) the target bonus
for the year in which the termination of employment occurs. Such amounts shall be payable in
compliance with Section 7.11, in a cash lump sum as soon as practicable (as provided by law) after
the Executive’s termination of employment and after the Executive executes and delivers an
effective release of claims, in a form acceptable to the Company and at the time specified by the
Company, and remains in compliance with all applicable restrictive covenants, including those set
forth in this Agreement and the ECII Agreement.

          7.4 COBRA Benefit. If the Executive is entitled to receive benefits pursuant to
Section 7.2 or 7.3, and if the Executive elects health care continuation coverage under the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), as provided by the Company’s
group health plan, then, in each of the first twelve (12) consecutive months following termination
of employment that the Executive has not become employed by another company which offers health
insurance generally comparable with that of the Company at the time of Executive’s termination, the
Company shall pay in monthly payments at the beginning of each such month, an amount equal to the
monthly amount paid by the Company immediately before termination of employment for the Executive’s
health coverage

          7.5 Accelerated Vesting of Stock Options. In the event that the Executive is
terminated for any of the reasons described in sections 7.2 or 7.3, in addition to any other right
or privilege hereunder, any options to purchase Company common stock that have been granted to

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Executive by the Company at any time prior to April 2007 that are outstanding, but not yet
exercisable, in whole or in part, as of the effective date of such termination, shall become fully
vested and exercisable effective on the last day of Executive’s employment with the Company and
shall be otherwise exercisable in accordance with the terms of the stock option grant and
applicable Company stock option plan.

          7.6 Definitions. For purposes hereof, the following terms have the following
meanings:

               (a) “Cause” shall mean (A) the Executive’s material misappropriation of personal property of
the Company (including its subsidiaries) that is intended to result in a personal financial benefit
to the Executive or to members of the Executive’s family, (B) the Executive’s conviction of, or
plea of guilty or no contest to, a felony, which the Company reasonably believes has had or will
have a material detrimental effect on the Company’s reputation or business, (C) the Executive’s act
of gross negligence or willful misconduct (including but not limited to any willfully dishonest or
fraudulent act or omission) taken in connection with the performance or intentional nonperformance
of any of the Executive’s duties and responsibilities as an Executive or continued neglect of the
Executive’s duties to the Company (including its subsidiaries), or (D) the Executive’s continued
willful or grossly negligent failure to comply with the lawful directions of the Company after
there has been delivered to the Executive a written demand for performance from the Company that
describes the basis for its belief that the Executive has not substantially performed the
Executive’s duties and the Executive fails to cure such act or omission to the Company’s reasonable
satisfaction, if such act or omission is reasonably capable of being cured, no later than five (5)
business days following delivery of such written demand .

               (b) “Change of Control” shall mean the occurrence of any of the following events: (A) any
“person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”)) becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company or ITC representing fifty
percent (50%) or more of the total voting power represented by the Company’s or ITC’s then
outstanding voting securities; or (B) the consummation of a sale of substantially all of the
Company’s or ITC’s assets; or (C) the consummation of a merger or consolidation of the Company or
ITC with any other corporation, other than a merger or consolidation which would result in the
voting securities of the Company or ITC outstanding immediately prior thereto continuing to
represent (either by remaining out-standing or by being converted into voting securities of the
surviving entity or its parent) at least fifty percent (50%) of the total voting power represented
by the voting securities of the Company, ITC or such surviving entity or its parent outstanding
immediately after such merger or consolidation; or (iv) a change in the composition of the Company
Board of Directors occurring within a two-year period, as a result of which fewer than a majority
of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either
(x) are directors of the Company as of February 15, 2007 or (y) are elected, or nominated for
election, to the Board of Directors with the affirmative votes of at least a majority of those
directors whose election or nomination was not in connection with any transaction described in
subsections (A), (B), or (C) above, or in connection with an actual or threatened proxy contest
relating to the election of directors to the Company.

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               (c) “Good Reason” shall mean any material reduction in the duties or salary or bonus
opportunity of the Executive or a requirement that the Executive work at a facility more than 50
miles from ITC’s then current corporate headquarters in New Jersey.

          7.7 Gross-Up for Excise Tax. In the event that any payment and any separation benefit
or other benefit (including without limitation, any acceleration of Equity Units (as defined herein
below)) payable or due to or for the benefit of, or received by or on behalf of, the Executive
whether under this Agreement or otherwise (determined without regard to any additional payment
required under this paragraph) (a “Payment”) is subject to the excise tax (the “Excise Tax”)
imposed by section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), then
Executive shall be paid an additional payment (a “Gross-Up Payment”) in an amount such that after
payment by Executive of all taxes, including, without limitation, any income taxes and Excise Tax
imposed upon the Gross-Up Payment, Executive shall retain the full amount of the Payment without
being reduced by the Excise Tax imposed upon the Payment. For avoidance of doubt, the Executive
and the Company agree that this Section 7.7 shall not be interpreted to compensate the Executive
for any other tax to which the Payment may be subject, including but not limited to income and
employment taxes.

          7.8 Benefits Subject to Execution of Waiver of Claims. Executive shall not be
entitled to receive any amount pursuant to this Section 7 unless Executive executes a release of
claims in a form acceptable to the Company at the time specified by the Company and remains in
compliance with all provisions of this Agreement.

          7.9 Acceleration of Stock Options and Stock Grants Upon A Change of Control. In the
event of a Change of Control of the Company or ITC, any options to purchase Company common stock,
shares of restricted stock or restricted stock units (collectively, “Equity Units”) that have been
granted to the Executive by the Company that are outstanding, but not yet exercisable or as to
which restrictions have not yet lapsed, in whole or in part, as of the effective date of such
Change of Control, shall

               (a) with respect to all Equity Units granted to Executive prior to April 2007, become fully
vested and exercisable and shall be otherwise exercisable in accordance with the terms of the stock
option grant, restricted stock grant or restricted stock unit grant and applicable Thoratec stock
option or incentive stock plan; and

               (b) with respect to all Equity Units granted to Executive during or subsequent to April 2007,
if the Company terminates the employment of the Executive without Cause on or within eighteen (18)
months after a Change of Control, or if the Executive terminates employment with the Company for
Good Reason during such period, all such Equity Units shall become fully vested and exercisable and
shall be otherwise exercisable in accordance with the terms of the stock option grant, restricted
stock grant or restricted stock unit grant and applicable Company stock option or incentive stock
plan.

          7.10 Exclusivity of Agreement. The benefits provided hereunder are in lieu of any
other severance-type benefits provided by the Company or ITC under any other plan, agreement,
arrangement or policy.

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          7.11 Section 409A Compliance. Notwithstanding anything to the contrary in this
Agreement, if the Company determines that any payment or benefit to be provided to the Executive by
the Company pursuant to this Agreement is or may become subject to the additional tax under Section
409A(a)(1)(B) of the Code or any other taxes or penalties imposed under Section 409A of the Code
(“409A Taxes”) if provided at the time otherwise required under this Agreement, then:

               (a) such payments shall be delayed until the date that is six months after the date of the
Executive’s “separation from service” (as such term is defined under Section 409A) with the
Company, or such shorter period that, as determined by the Company, is sufficient to avoid the
imposition of 409A Taxes; and

               (b) with respect to the provision of such benefit, for a period of six (6) months following
the date of the Executive’s “separation from service” (as such term is defined under Section 409A)
with the Company, or such shorter period, that, as determined by the Company, is sufficient to
avoid the imposition of 409A Taxes, Executive shall be responsible for the full cost of providing
such benefits.

     8. Non-disparagement. Except as required by law or legal process, Executive agrees
not to disparage any aspect of the Company, ITC or their successors or assigns, including but not
limited to its officers, management, employees and products.

     9. Injunctive Relief. Executive acknowledges that damages will not be an adequate
remedy in the event of a breach of any of Executive’s obligations under Sections 4, 5 or 8 of this
Agreement. Executive therefore agrees that the Company shall be entitled (without limitation of
any other rights or remedies otherwise available to the Company and without the necessity of
posting a bond) to obtain an injunction from any court of competent jurisdiction prohibiting the
continuance or recurrence of any such breach of this Agreement.

     10. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the executors, administrators, heirs, successors, and assigns of the parties; provided, however,
that except as herein expressly provided, this Agreement shall not be assignable either by the
Company (except to an affiliate or successor of the Company) or by the Executive without the prior
written consent of the other party. Any attempted assignment in contravention of this Section 10
shall be void.

     11. Notice. Any notice or communication under this Agreement shall be in writing and
shall be given by personal delivery, facsimile or Unites States mail, certified or registered with
return receipt requested, postage prepaid, and shall be deemed to have been duly given three
business days after the mailing if mailed, or upon receipt if delivered personally, or the first
business day after transmission if sent by facsimile, to the other party at the following
addresses, or such other address as one party may from time to time give the other in writing:

	 	 	 	 	 
	 

	 	If to the Company:
	 	Thoratec Corporation

Attention: Vice President of Human Resources

6035 Stoneridge Drive

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	 	 	 	Pleasanton, CA 94588

Tel: (925) 847-8600, Fax: (925) 847-8574
	 
	 	 	 	 
	 

	 	If to Executive:
	 	Lawrence Cohen

c/o International Technidyne Corporation

20 Corporate Place South, Piscataway 08854

Telephone: 732-548-5700

     12. Survival of Certain Agreements. The covenants and agreements contained in
Sections 5 and 8 of this Agreement shall be continuous and survive the termination of this
Agreement and shall remain in full force and effect regardless of the cause of such termination.

     13. Captions. The captions to Sections of this Agreement have been inserted for
identification and reference purposes and shall not by themselves determine the construction or
interpretation of this Agreement.

     14. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument.

     15. Assumption of Agreement. The Company shall require any successor (whether direct
or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to expressly assume and agree to perform this Agreement in
the same manner and to the same extent that the Company would have been required to perform it if
no such succession had taken place. As used in the Agreement, the “Company” shall mean both the
Company as defined above and any such successor that assumes and agrees to perform this Agreement,
by operation of law or otherwise.

     16. Governing Law. This Agreement shall be construed in accordance with, and shall be
governed by, the procedural and substantive laws of the State of California, without reference to
principles of conflicts of law. The Executive hereby submits to the jurisdiction and venue of the
courts of the State of New Jersey and the Federal Courts of the United States of America located
within the County of Middlesex, New Jersey for purposes of any action relating to or arising out of
this Agreement. The Executive further agrees that service upon him in any such action or
proceeding may be made by first class mail, certified or registered, to the Executive’s address as
last appearing on the records of the Company.

     17. Waiver. The waiver of the breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach of the same or any other provision
hereof.

     18. Withholding. The Company may withhold from any amounts payable to the Executive
hereunder all federal, state, local, and other withholdings and similar taxes and payments required
by applicable law or regulation.

     19. Enforceability. All provisions of this Agreement are intended to be severable.
In the event any provision or restriction contained herein is held to be invalid or unenforceable
in any respect, in whole or in part, such finding will in no way affect the validity or
enforceability

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of any other provision of this Agreement. The parties hereto further agree that any such
invalid or unenforceable provision will be deemed modified so that it will be enforced to the
greatest extent permissible under law, and to the extent that any court of competent jurisdiction
determines any restriction herein to be unreasonable in any respect, such court may limit this
Agreement to render it reasonable in light of the circumstances in which it was entered into and
specifically enforce this Agreement as limited.

     20. Entire Agreement and Modifications. This Agreement constitutes the complete,
final and exclusive embodiment of the entire agreement between Executive, on the one hand, and the
Company and ITC, on the other, with regard to its subject matter, and supersedes and replaces in
its entirety the Separation Benefits Agreement executed by Executive on February 15, 2005, the
offer letter from the Company to Executive dated April 3, 2001 and the Original Employment
Agreement. This Agreement is entered into without reliance on any promise or representation,
written or oral, other than those expressly contained herein, and it supersedes any other such
promises, warranties or representations. This Agreement may not be modified or amended except in a
writing signed by Executive and a duly authorized officer of the Company.

     Advice of Counsel. Executive acknowledges and confirms that he has had the
opportunity to seek such legal, financial and other advice and representation as Executive deems
appropriate in connection with this Agreement.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed effective as of the
date set forth in the first paragraph above.

	 	 	 	 	 
	 	THORATEC CORPORATION

 	 
	 	By:  	/s/ Gerhard F. Burbach
 	 
	 	 	Gerhard F. Burbach 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	AGREED:

 	 
	 	/s/ Lawrence Cohen
 	 
	 	Lawrence Cohen 	 
	 	 	 
	 

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Exhibit A

Employee Confidential Information and Inventions Agreement

CONFLICT OF INTEREST AND INVENTIONS

     THIS AGREEMENT is made as of this 24 day of May, 2001, by and between INTERNATIONAL
TECHNIDYNE CORPORATION, a New Jersey corporation with offices located at 8 Olsen Avenue, Edison,
New Jersey 08820 (“Company”) and Lawrence Cohen, residing
at 66 Leonard St. NYC, NY 10013 (“I”, “me” or
“my”).

     I understand that Company is engaged in the development, manufacture and sale of various
products and services relevant to the medical and health care industries.

     I further understand that Company’s standing and success (“goodwill”) in these
industries has been achieved at a substantial cost and effort and vitally depends upon its
confidential information and its relationships with its customers, suppliers and employees.

     I further understand that I am an incidental beneficiary of Company’s goodwill, since,
because of that goodwill, Company is able to employ me as well as others.

     I further understand that irreparable harm would result to Company and its employees,
including me, if Company’s goodwill were to be appropriated, diverted or impaired by any one or
more employee(s), either during or after any termination of employment with Company.

     I further understand that it is in the best interests of Company and its employees, including
me, for Company to make every effort to protect its goodwill, including by way of agreements such
as this.

     Accordingly, in consideration and as a condition of my employment, or if now employed, the
continuation of my employment with the Company, I agree as follows:

     1. I will not, prior to any termination of my employment with Company, for my own benefit or
for the benefit of any other person or entity, directly or indirectly own, manage, be employed by,
be a consultant to, engage in or assist in any way, regardless of whether or not for compensation,
any other business, endeavor, activity or venture that is similar to or competitive with the business of Company.

     2. I will not, for a period of twelve (12) months after any termination of employment with
Company, for my own benefit or for the benefit of any other person or entity, directly or
indirectly contact, solicit, divert, take away or interfere with, or attempt to contact, solicit,
divert, take away or interfere with, any person or entity who was a customer or supplier of Company
on the effective date of termination of my employment or within the twelve (12) months immediately
prior thereto.

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     3. I will not, for a period of twelve (12) months after any termination of employment
with Company, for my own benefit or for the benefit of any other person or entity, directly or
indirectly recruit, solicit, induce, entice, take away or interfere with, or attempt to recruit,
solicit, induce, entice, take away or interfere with, any of the employees or independent
contractors of Company.

     4. (a) I will keep confidential and will not disclose to any other person or entity or use
for my own benefit or for the benefit of any other person or entity, either during or after my
employment with Company, any confidential information of Company, except as required by my
employment with Company or as authorized in writing by Company. For purposes of this agreement,
“confidential information” means any information,
regardless of its medium of expression (i.e.,
oral, written, electronic, samples and prototypes), concerning any matters affecting or relating to
the existing or anticipated business or operations of Company and not in the public domain,
including, but not limited to, the names, addresses and requirements of any of its
customers or suppliers, the prices at which it obtains or has obtained raw materials or at which it
sells or has sold its products, its profit or loss from operations, its business plans, its
technical and financial information, and any information pertaining, referring or relating to
design methods, uses of materials, manufacturing processes, product designs and specifications,
ingredients, formulas and formulations.

          (b) I will not remove any confidential information or other tangible property of Company from
its premises, except when and to the extent reasonably necessary in the ordinary course of
conducting business on behalf of Company. Upon any termination of my employment with Company, I
will immediately return all confidential information, and all copies, abstracts, summaries and
compilations thereof and therefrom, regardless of by whom prepared, together with all other
tangible property of Company, to Company.

     5. If any of the restrictions contained in this agreement are determined to be overly broad,
as to duration or otherwise, so as to not permit enforcement of such restriction(s) to their full
extent under applicable law, then such restriction(s) shall be deemed to be amended and reformed to
permit enforcement to the fullest extent under applicable law.

     6. I understand that my employment with Company may be terminated by either me or Company at
any time, with or without cause, as this agreement is not intended to alter the at-will
relationship that otherwise exists between us.

     7. This agreement is binding on and shall inure to the benefit of Company and me and our
respective successors, assigns, personal or legal representatives, and, as to Company, any parent,
subsidiary or affiliated company and/or any person or entity who acquires Company or a majority
interest in Company, whether by merger, acquisition of its assets or stock, or otherwise.

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     8. This agreement is governed by New Jersey law, without regard to any principles of choice of
law.

     9. This document, consisting of three (3) pages, contains the final and complete understanding
and agreement between Company and me concerning the matters set forth herein. All prior oral or
written representations, understandings and agreements concerning the matters set forth herein are
merged herein and superceded hereby. This agreement shall not be modified or amended, except in a
further writing signed by both Company and me.

     10. I have had ample opportunity to review this agreement before signing it. I understand the
provisions of this agreement. I am voluntarily entering into this agreement intending to be fully
bound hereby.

	 	 	 	 	 	 	 	 	 
	ATTEST:

	 	 	 	INTERNATIONAL TECHNIDYNE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Lawrence Cohen

	 	 	 	By:	 	 	 	 
	 

Lawrence Cohen

	 	 
	 	 	 	 

Steven D. Ward
	 	 
	(Printed or Typed Name)

	 	 	 	 	 	Vice President, Finance
and Administration	 	 

3exv10w4

 

EXHIBIT 10.4

AMENDED AND RESTATED SEPARATION BENEFITS AGREEMENT

          THIS AMENDED AND RESTATED SEPARATION BENEFITS AGREEMENT is made this 23rd day of April, 2007
(this “Agreement”), by and between THORATEC CORPORATION, a California corporation (the “Company”),
and David A. Lehman (the “Executive”) and is intended to amend and restate any and all separation
benefits agreements, offer letters or understandings previously entered into between Executive and
the Company with respect to such benefits (“the Original Separation Benefits Agreement”).

WITNESSETH

          WHEREAS, the Company desires to employ or continue to employ Executive and in order to attract
and retain the services of Executive, the Company is willing to provide certain severance and other
benefits to the Executive as described herein; and

          WHEREAS, by reason of Executive’s employment with the Company, Executive will receive access
to and possession of Company Confidential Information (as more fully set forth in Exhibit A), as
shall exist from time to time; and

          WHEREAS, the Company and Executive each desire to make certain amendments and changes to the
Original Separation Benefits Agreement to be reflected in this Agreement.

          NOW THEREFORE, in consideration of the mutual covenants and promises hereinafter set forth and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Executive hereby agree as follows:

          1. Effectiveness. This Agreement is effective as of the date first noted above.

          2. Separation Benefits.

               (a) Termination of Executive Without Cause. If the Executive’s employment is
involuntarily terminated by the Company without Cause (as defined below), the Executive shall be
paid a severance pay benefit equal to one (1) times the Executive’s then-current annual base
salary. Such amount shall be payable in compliance with Section 7, in a cash lump sum as soon as
practicable (as provided by law) after the Executive’s termination of employment and after the
Executive executes and delivers an effective release of claims, in a form acceptable to the Company
and at the time specified by the Company, and remains in compliance with all applicable restrictive
covenants, including those set forth in this Agreement and the Employee

 

 

Confidential Information and Inventions Agreement between the Company and Executive attached
as Exhibit A hereto (the “ECII Agreement”).

          (b) Termination of Executive After a Change of Control. Notwithstanding Section 2(a),
if the Executive would otherwise have been entitled to benefits pursuant to Section 2(a) but the
Executive’s involuntary termination of employment by the Company occurs on or within eighteen (18)
months after a Change of Control, or if the Executive terminates employment with the Company for
Good Reason during such period, the Executive shall be paid in lieu of the severance pay benefit
described in Section 2(a) a Change of Control severance pay benefit equal to two (2) times the
Executive’s then-current annual base salary plus two (2) times the greatest of (a) the target bonus
for the year preceding the year in which the Executive’s termination occurs, (b) the actual bonus
for such prior year, or (c) the target bonus for the year in which the termination of employment
occurs. Such amounts shall be payable in compliance with Section 7, in a cash lump sum as soon as
practicable (as provided by law) after the Executive’s termination of employment and after the
Executive executes and delivers an effective release of claims, in a form acceptable to the Company
and at the time specified by the Company, and remains in compliance with all applicable restrictive
covenants, including those set forth in this Agreement and the ECII Agreement.

          (c) COBRA Benefit. If the Executive is entitled to receive benefits pursuant to
Section 2(a) or 2(b), and if the Executive elects health care continuation coverage under the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), as provided by the Company’s
group health plan, then, in each of the first twelve (12) consecutive months following termination
of employment that the Executive has not become employed by another company which offers health
insurance generally comparable with that of the Company at the time of Executive’s termination, the
Company shall pay in monthly payments at the beginning of each such month, an amount equal to the
monthly amount paid by the Company immediately before termination of employment for the Executive’s
health coverage.

          (d) In the event that the Executive is terminated for any of the reasons described in sections
2(a) or 2(b), in addition to any other right or privilege hereunder, any options to purchase
Company common stock that have been granted to the Executive by the Company at any time prior to
April 2007 that are outstanding, but not yet exercisable, in whole or in part, as of the effective
date of such termination, shall become fully vested and exercisable effective on the last day of
Executive’s employment with the Company and shall be otherwise exercisable in accordance with the
terms of the stock grant and applicable Company stock option plan.

          (e) For purposes of this Agreement, the following terms have the following meanings:

               (i) “Cause” shall mean (A) the Executive’s material misappropriation of personal property of
the Company (including its subsidiaries) that is intended to result in a personal financial benefit
to the Executive or to members of the

2

 

Executive’s family, (B) the Executive’s conviction of, or plea of guilty or no contest to, a
felony, which the Company reasonably believes has had or will have a material detrimental effect on
the Company’s reputation or business, (C) the Executive’s act of gross negligence or willful
misconduct (including but not limited to any willfully dishonest or fraudulent act or omission)
taken in connection with the performance or intentional nonperformance of any of the Executive’s
duties and responsibilities as an employee or continued neglect of the Executive’s duties to the
Company (including its subsidiaries), or (D) the Executive’s continued willful or grossly negligent
failure to comply with the lawful directions of the Company after there has been delivered to the
Executive a written demand for performance from the Company that describes the basis for its belief
that the Executive has not substantially performed the Executive’s duties and the Executive fails
to cure such act or omission to the Company’s reasonable satisfaction, if such act or omission is
reasonably capable of being cured, no later than five (5) business days following delivery of such
written demand .

               (ii) “Change of Control” shall mean the occurrence of any of the following events: (A) any
“person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”)) becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing fifty percent
(50%) or more of the total voting power represented by the Company’s then outstanding voting
securities; or (B) the consummation of a sale of substantially all of the Company’s assets; or (C)
the consummation of a merger or consolidation of the Company with any other corporation, other than
a merger or consolidation which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or its parent) at least fifty percent
(50%) of the total voting power represented by the voting securities of the Company or such
surviving entity or its parent outstanding immediately after such merger or consolidation; or (D) a
change in the composition of the Board occurring within a two-year period, as a result of which
fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean
directors who either (x) are directors of the Company as of February 15, 2007 or (y) are elected,
or nominated for election, to the Board with the affirmative votes of at least a majority of those
directors whose election or nomination was not in connection with any transaction described in
subsections (A), (B), or (C) above, or in connection with an actual or threatened proxy contest
relating to the election of directors to the Company.

               (iii) “Good Reason” shall mean any material reduction in the duties or salary or bonus
opportunity of the Executive or a requirement that the Executive work at a facility more than
twenty five (25) miles from the Company facility where the Executive is then employed without the
Executive’s written consent.

     3. Gross-Up for Excise Tax. In the event that any payment and any separation benefit
or other benefit (including without limitation, any acceleration of Equity Units (as defined here
below)) payable or due to or for the benefit of, or received by or on behalf of, the Executive,
whether under this Agreement or otherwise

3

 

(determined without regard to any additional payment required under this paragraph) (a
“Payment”) is subject to the excise tax (the “Excise Tax”) imposed by section 4999 of the Internal
Revenue Code of 1986, as amended (the “Code”), then the Executive shall be paid an additional
payment (a “Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes,
including, without limitation, any income taxes and Excise Tax imposed upon the Gross-Up Payment,
the Executive shall retain the full amount of the Payment without being reduced by the Excise Tax
imposed upon the Payment. For avoidance of doubt, the Executive and the Company agree that this
Section 3 shall not be interpreted to compensate the Executive for any other tax to which the
Payment may be subject, including but not limited to income and employment taxes.

     4. Benefits Subject to Execution of Waiver of Claims. The Executive shall not be
entitled to receive any amount or benefit pursuant to Section 2 of this Agreement unless the
Executive executes and delivers an effective release of claims in a form acceptable to the Company
and at the time specified by the Company and remains in compliance with all provisions of this
Agreement.

     5. Acceleration of Stock Options and Stock Grants Upon A Change of Control. In the
event of a Change of Control of the Company, any options to purchase Company common stock, shares
of restricted stock or restricted stock units (collectively, “Equity Units”) that have been granted
to the Executive by the Company that are outstanding, but not yet exercisable or as to which
restrictions have not yet lapsed, in whole or in part, as of the effective date of such Change of
Control, shall

          (a) with respect to all Equity Units granted to Executive prior to April 2007, become fully
vested and exercisable and shall be otherwise exercisable in accordance with the terms of the stock
option grant, restricted stock grant or restricted stock unit grant and applicable Thoratec stock
option or incentive stock plan; and

          (b) with respect to all Equity Units granted to Executive during or subsequent to April 2007,
if the Company terminates the employment of the Executive without Cause on or within eighteen (18)
months after a Change of Control, or if the Executive terminates employment with the Company for
Good Reason during such period, all such Equity Units shall become fully vested and exercisable
and shall be otherwise exercisable in accordance with the terms of the stock option grant,
restricted stock grant or restricted stock unit grant and applicable Thoratec stock option or
incentive stock plan.

     6. Exclusivity of Agreement. The benefits provided in this Agreement are in lieu of
any other severance-type benefits provided by the Company under any other plan, agreement,
arrangement or policy, notwithstanding the terms of any such other plan, agreement, arrangement or
policy.

     7. Section 409A Compliance. Notwithstanding anything to the contrary in this
Agreement, if the Company determines that any payment or benefit to be provided to the Executive by
the Company pursuant to this Agreement is or may become subject to

4

 

the additional tax under Section 409A(a)(1)(B) of the Code or any other taxes or penalties
imposed under Section 409A of the Code (“409A Taxes”) if provided at the time otherwise required
under this Agreement, then:

          (a) such payments shall be delayed until the date that is six months after the date of the
Executive’s “separation from service” (as such term is defined under Section 409A) with the
Company, or such shorter period that, as determined by the Company, is sufficient to avoid the
imposition of 409A Taxes; and

          (b) with respect to the provision of such benefit, for a period of six (6) months following
the date of the Executive’s “separation from service” (as such term is defined under Section 409A)
with the Company, or such shorter period, that, as determined by the Company, is sufficient to
avoid the imposition of 409A Taxes, Executive shall be responsible for the full cost of providing
such benefits.

     8. Non-disparagement. Except as required by law or legal process, Executive agrees
that during and subsequent to the term of this Agreement, he will not disparage any aspect of the
Company or its successors or assigns, including but not limited to its officers, management,
employees and products.

     9. Miscellaneous.

          (a) Any notice or other communication required or permitted under this Agreement shall be
effective only if it is in writing and delivered personally or sent by registered or certified
mail, postage prepaid, addressed as follows (or if it is sent through any other method agreed upon
by the parties):

If to the Company:

Thoratec Corporation

6035 Stoneridge Drive

Pleasanton, CA 94588

Attention: Vice President of Human Resources

If to the Executive:

At Executive’s address most recently

provided to the Company by Executive.

or to such other address as any party hereto may designate by notice to the other, and shall be
deemed to have been given upon receipt.

          (b) This Agreement by and between the Executive and the Company constitutes the entire
agreement between the parties hereto with respect to the matters herein, and supersedes and is in
full substitution for any and all prior understandings or agreements, whether oral or written, with
respect to the matters herein, including without limitation, any prior separation benefits
agreement, plan or offer letter

5

 

between Executive and the Company, including the Original Separation Benefits Agreement,
provided, however, that the ECII Agreement shall remain in full force and effect and shall not be
superseded or substituted by this Agreement.

          (c) This Agreement may be amended only by an instrument in writing signed by the parties
hereto, and any provision hereof may be waived only by an instrument in writing signed by the party
against whom or which enforcement of such waiver is sought. Notwithstanding the foregoing, the
Company may in its sole discretion, amend this Agreement at any time as may be necessary to avoid
the imposition of the additional tax under Section 409(A)(a)(1)(B) of the Code; provided, however,
that any such amendment shall be implemented in such a manner as to preserve, to the greatest
extent possible, the terms and conditions of the Agreement as in existence immediately prior to any
such amendment. The failure of any party hereto at any time to require the performance by any
other party hereto of any provision hereof shall in no way affect the full right to require such
performance at any time thereafter, nor shall the waiver by any party hereto of a breach of any
provision hereof be taken or held to be a waiver of any succeeding breach of such provision or a
waiver of the provision itself or a waiver of any other provision of this Agreement.

          (d) This Agreement shall be binding upon and inure to the benefit of the executors,
administrators, heirs, successors, and assigns of the parties; provided, however, that except as
herein expressly provided, this Agreement shall not be assignable either by the Company (except to
an affiliate or successor of the Company) or by Executive without the prior written consent of the
other party. Any attempted assignment in contravention of this Section 9(d) shall be void.

          (e) The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to expressly assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would have been required to perform it if no such succession had taken
place. As used in the Agreement, the “Company” shall mean both the Company as defined above and
any such successor that assumes and agrees to perform this Agreement, by operation of law or
otherwise.

          (f) This Agreement shall be governed by and construed in accordance with the laws of the state
of California, without reference to principles of conflicts of law. The Executive hereby submits
to the jurisdiction and venue of the courts of the State of California and the Federal Courts of
the United States of America located within the County of Alameda for purposes of any action
relating to or arising out of this Agreement. The Executive further agrees that service upon him
in any such action or proceeding may be made by first class mail, certified or registered, to the
Executive’s address as last appearing on the records of the Company.

6

 

          (g) This Agreement may be executed in several counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same instrument.

          (h) The headings in this Agreement are inserted for convenience of reference only and shall
not be a part of or control or affect the meaning of any provision hereof.

          (i) All provisions of this Agreement are intended to be severable. In the event any provision
or restriction contained herein is held to be invalid or unenforceable in any respect, in whole or
in part, such finding will in no way affect the validity or enforceability of any other provision
of this Agreement. The parties hereto further agree that any such invalid or unenforceable
provision will be deemed modified so that it will be enforced to the greatest extent permissible
under law, and to the extent that any court of competent jurisdiction determines any restriction
herein to be unreasonable in any respect, such court may limit this Agreement to render it
reasonable in light of the circumstances in which it was entered into and specifically enforce this
Agreement as limited.

          (k) The Executive acknowledges and confirms that the Executive has had the opportunity to seek
such legal, financial and other advice and representation as the Executive has deemed appropriate
in connection with this Agreement.

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

	 	 	 	 	 	 	 
	EXECUTIVE

	 	 	 	THORATEC CORPORATION
	 	 
	 
	 	 	 	 	 	 
	/s/ David A. Lehman

	 	 	 	/s/ Gerhard F. Burbach	 	 
	 

	 	 	 	 	 	 
	Name: David A. Lehman

	 	 	 	Name: Gerhard F. Burbach	 	 
	 

	 	 	 	Title: President & CEO	 	 

7

 

Exhibit A

Employee Confidential Information and Inventions Agreement

 

 

EMPLOYEE CONFIDENTIAL INFORMATION AND

INVENTIONS AGREEMENT

     In partial consideration and as a condition of my employment or continued employment with
Thoratec Corporation, a California corporation (which together with any parent, subsidiary,
affiliate, or successor is hereinafter referred to as the “Company” or “Thoratec”), and effective
as of the date that my employment with the Company first commenced, I hereby agree as follows:

	 	1.	 	NONCOMPETITION

                    During my employment with the Company, I will perform for the Company such duties as it may
designate from time to time and will devote my full time and best efforts to the business of the
Company and will not, without the prior written approval of (i) an officer of the Company if I am
not an executive officer of the Company or (ii) the Board of Directors of the Company if I am an
executive officer of the Company, (a) engage in any other professional employment or consulting, or
(b) directly or indirectly participate in or assist any business which is a current or potential
supplier, customer, or competitor of the Company.

	 	2.	 	THORATEC’S BUSINESS
	 
	 	 	 	The general line of business of the Company includes but is not limited to:

	 	(i)	 	development, manufacture and sale of (1) medical equipment,
devices, apparatus and instrumentation; (2) specialty polymer and chemicals and
configured polymer parts; and (3) high performance textiles and textile
products;
	 
	 	(ii)	 	all equipment and items related to the above; and
	 
	 	(iii)	 	all matters which are recorded in the Company’s records and
notebooks.

	 	3.	 	CONFIDENTIALITY OBLIGATION

                    I will hold all Thoratec Confidential Information in confidence and will not disclose, use,
copy, publish, summarize, or remove from Thoratec’s premises any Confidential Information, except
(a) as necessary to carry out my assigned responsibilities as a Thoratec employee, and (b) after
termination of my employment, only as specifically authorized in writing by an officer of Thoratec.
“Confidential Information” is all information related to any aspect of Thoratec’s business which
is either information not known by actual or potential competitors of the Company or is proprietary
information of the Company, whether of a technical nature or otherwise. Confidential Information includes computer programs, computer
source code, inventions, discoveries, ideas, designs, circuits, schematics, formulas, algorithms,
trade secrets, secret procedures, works of authorship, developmental or experimental work,
processes, techniques, methods, improvements, know-how, data, financial information and forecasts,
product plans, marketing/ sales plans and strategies, and customer lists.

 

 

	 	4.	 	INFORMATION OF OTHERS

                    I will safeguard and keep confidential the proprietary information of customers, vendors,
consultants, and other parties with which Thoratec does business to the same extent as if it were
Thoratec Confidential Information. I will not, during my employment with the Company or otherwise,
use or disclose to the Company any confidential, trade secret, or other proprietary information or
material of any previous employer or other person, and I will not bring onto the Company’s premises
any unpublished document or any other property belonging to any former employer without the written
consent of that former employer.

	 	5.	 	THORATEC PROPERTY

                    All papers, records, data, notes, drawings, files, documents, samples, devices, products,
equipment, and other materials, including copies, relating to Thoratec’s business that I possess or
create as a result of my employment with Thoratec, whether or not confidential, are the sole and
exclusive property of Thoratec. In the event of the termination of my employment, I will promptly
deliver all such materials to Thoratec and will sign and deliver to the Company the “Termination
Certificate” attached hereto as Exhibit A.

	 	6.	 	OWNERSHIP OF INVENTIONS

                    All computer programs, computer source code, inventions, ideas, designs, circuits, schematics,
formulas, algorithms, trade secrets, works of authorship, developments, processes, techniques,
improvements, and related know-how which result from work performed by me, alone or with others, on
behalf of Thoratec or from access to Thoratec Confidential Information or property, whether or not
patentable or copyrightable, (collectively “Inventions”) shall be the property of Thoratec, and, to
the extent permitted by law, shall be “works made for hire.” I hereby assign and agree to assign
to Thoratec or its designee, without further consideration, my entire right, title, and interest in
and to all Inventions, other than those described in Paragraph 7 of this Agreement, including all
rights to obtain, register, perfect, and enforce patents, copyrights, and other intellectual
property protection for Inventions. I will disclose promptly and in writing to the individual
designated by Thoratec or to my immediate supervisor all Inventions which I have made or reduced to
practice. During my employment and for four years after, I will assist Thoratec (at its expense)
to obtain and enforce patents, copyrights, and other forms of intellectual property protection on
Inventions.

 

 

	 	7.	 	EXCLUDED INVENTIONS

                    Attached is a list of all inventions, improvements, and original works of authorship,
which I desire to exclude from this Agreement, each of which has been made or reduced to practice
by me prior to my employment by Thoratec. If no list is attached to this Agreement, there are no
inventions to be excluded at the time of my signing of this Agreement. I understand that this
Agreement requires disclosure, but not assignment, of any invention that qualifies under Section
2870 of the California Labor Code, which reads:

	 	 	 	“Any provision in an employment agreement which provides that an employee shall
assign or offer to assign any of his or her rights in an invention to his or her
employer shall not apply to an invention that the employee developed entirely on his
or her own time without using the employer’s equipment, supplies, facilities, or
trade secret information except for those inventions that either:
	 
	 	 	 	(a)   relate at the time of conception or reduction to practice of the invention to
the employer’s business or actual or demonstrably anticipated research or
development of the employer; or
	 
	 	 	 	(b)   result from any work performed by the employee for the employer.”

	 	8.	 	PRIOR CONTRACTS

                    I represent that there are no other contracts to assign inventions that are now in
existence between any other person or entity and me. I further represent that I have no other
employments, consultancies, or undertakings which would restrict or impair my performance of this
Agreement.

	 	9.	 	NON-SOLICITATION

                    During the term of my employment by the Company, and for twelve (12) months thereafter, I
shall not, directly or indirectly, without the prior written consent of the Company: (i) solicit or
induce any employee of the Company to leave the employ of the Company; (ii) hire for any purpose
any employee of the Company or any former employee who has left the employment of the Company
within six months of the date of termination of such employee’s employment with the Company.

	 	10.	 	AGREEMENTS WITH THE UNITED STATES GOVERNMENT AND OTHER THIRD PARTIES

                    I acknowledge that the Company from time to time may have agreements with other persons or
with the United States Government or agencies thereof which impose obligations or restrictions on
the Company regarding Inventions made during the course of work under such agreements or regarding
the confidential nature of such work. I agree to be bound by all such obligations or restrictions
and to take all action necessary to discharge the obligations of the Company thereunder.

 

 

	 	11.	 	NO EMPLOYMENT AGREEMENT

                    I agree that unless specifically provided in another writing signed by me and an officer of
the Company, my employment by the Company is not for a definite period of time. Rather, my
employment relationship with the Company is one of employment at will and my continued employment
is not obligatory by either myself or the Company.

	 	12.	 	MISCELLANEOUS

	 	12.1	 	Governing Law

                              This Agreement shall be governed by, and construed in accordance with, the laws of the State
of California, excluding those laws that direct the application of the laws of another
jurisdiction.

	 	12.2	 	Enforcement

                              If any provision of this Agreement shall be determined to be invalid or unenforceable for any
reason, it shall be adjusted rather than voided, if possible, in order to achieve the intent of the
parties to the extent possible. In any event, all other provisions of this Agreement, shall be
deemed valid, and enforceable to the full extent possible.

	 	12.3	 	Injunctive Relief; Consent to Jurisdiction

                              I acknowledge and agree that damages will not be an adequate remedy in the event of a breach
of any of my obligations under this Agreement. I therefore agree that the Company shall be
entitled (without limitation of any other rights or remedies otherwise available to the Company) to
obtain, without posting bond, specific performance and preliminary and permanent injunction from
any court of competent jurisdiction prohibiting the continuance or recurrence of any breach of this
Agreement. I hereby submit myself to the jurisdiction and venue of the courts of the State of
California for purposes of any such action. I further agree that service upon me in any such
action or proceeding may be made by first class mail, certified or registered, to my address as
last appearing on the records of the Company.

	 	12.4	 	Arbitration

                    I further agree that the Company, at its option, may elect to submit any dispute or
controversy arising out of this Agreement for final settlement by arbitration conducted in Alameda
County or San Francisco County in accordance with the then existing rules of the American
Arbitration Association, and judgment upon the award rendered by the arbitrators shall be
specifically enforceable and may be entered in any court having jurisdiction thereof.

	 	12.5	 	Attorneys’ Fees

                    If any party seeks to enforce its rights under this Agreement, by legal proceedings or
otherwise, the non-prevailing party shall pay all costs and expenses of the prevailing party.

 

 

	 	12.6	 	Binding Effect; Waiver

                              This Agreement shall be binding upon and shall inure to the benefit of the successors,
executors, administrators, heirs, representatives, and assigns of the parties. The waiver by the
Company of a breach of any provision of this Agreement shall not operate or be construed as a
waiver of any subsequent breach of the same or any other provision hereof.

	 	12.7	 	Headings

                              The Section headings herein are intended for reference and shall not by themselves determine
the construction or interpretation of this Agreement.

	 	12.8	 	Entire Agreement; Modifications

                              This Employee Confidential Information and Inventions Agreement contains the entire agreement
between the Company and the undersigned employee concerning the subject matter hereof and
supersedes any and all prior and contemporaneous negotiations, correspondence, understandings, and
agreements, whether oral or written, respecting that subject matter. All modifications to this
Agreement must be in writing and signed by the party against whom enforcement of such modification
is sought.

     IN WITNESS WHEREOF, I have executed this document as of the 21st day of April, 2003.

	 	 	 	 	 
	 	 	 
	 	                                                 /s/ David Lehman
 	 
	 	Employee	 
	 	 	 
	 

RECEIPT ACKNOWLEDGED:

THORATEC CORPORATION

By:  /s/ Jessica Hupman          

 

 

SCHEDULE 1

(Excluded Inventions, Improvements, and

Original Works of Authorship)

	 	 	 	 	 
	 	 	 	 	Identifying Number
	Title	 	Date	 	Or Brief Description
	 

	 	 	 	 

 

 

EXHIBIT A

Thoratec Corporation

TERMINATION CERTIFICATION

     This is to certify that I do not have in my possession, nor have I failed to return, any
papers, records, data, notes, drawings, files, documents, samples, devices, products, equipment,
and other materials, including reproductions of any of the aforementioned items, belonging to
Thoratec Corporation, its subsidiaries, affiliates, successors, or assigns (together, the
“Company”).

     I further certify that I have complied with all the terms of the Company’s Confidential
Information and Inventions Agreement signed by me, including the reporting of any inventions and
original works of authorship (as defined therein) conceived or made by me (solely or jointly with
others) covered by that agreement.

     I further agree that, in compliance with the Confidential Information and Inventions
Agreement, I will hold in confidence and will not disclose, use, copy, publish, or summarize any
Confidential Information (as defined in the Company’s Confidential Information and Inventions
Agreement) of the Company or of any of its customers, vendors, consultants, and other parties with
which it does business.

Date:                     

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	
     Employee’s Signature 	 
	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	
Type/Print Employee’s Name 	 
	 	 	 
	 

California Labor Code § 2870. Application of provision providing that employee shall assign or
offer to assign rights in invention to employer.

	(a)	 	Any provision in an employment agreement which provides that an employee shall assign, or
offer to assign, any of his or her rights in an invention to his or her employer shall not
apply to an invention that the employee developed entirely on his or her own time without
using the employer’s equipment, supplies, facilities, or trade secret information except for
those inventions that either:

 

 

	 	(1)	 	Relate at the time of conception or reduction to practice of the invention to the
employer’s business, or actual or demonstrably anticipated research or development of
the employer; or
	 
	 	(2)	 	Result from any work performed by the employee for the employer.

	(b)	 	To the extent a provision in an employment agreement purports to require an employee to
assign an invention otherwise excluded from being required to be assigned under subdivision
(a), the provision is against the public policy of this state and is unenforceable.

Added Stats 1979 ch 1001 § 1; Amended Stats 1986 ch 346 § 1.

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