Document:

Exhibit 10.3 Escrow Agreement

    Exhibit
      10.3

     

     

    ESCROW
      AGREEMENT

    

    This
      Escrow Agreement
      ("Escrow
      Agreement") is made and entered into as of April 30, 2007 (the "Closing Date")
      by and among Evans Analytical Group LLC, a Delaware limited liability company
      ("Depositor"), Accurel Systems International Corporation, a California
      corporation, and Implant Sciences Corporation, a Massachusetts corporation
      (collectively “Sellers”), and Zions
      First National Bank
      (the
      "Escrow Agent").

    

    WHEREAS,
      Depositor and Sellers have entered into that certain Asset Purchase Agreement
      dated as of the Closing Date (the "Purchase Agreement"); and

    

    WHEREAS,
      the Asset Purchase Agreement provides for the deposit of $1,000,000 cash into
      an
      Escrow Account as security for the indemnification obligations of Sellers under
      the Purchase Agreement.

    

    The
      Depositor, Sellers and Escrow Agent agree as follows: 

    

    1.
       Escrow
      Agent Only a Depository.
      On April
      30, 2007, Depositor hereby delivers to the Escrow Agent the amount in cash
      set
      forth in Exhibit A attached hereto (once placed in the escrow fund, as increased
      by earnings thereon or as reduced by any disbursements, amounts withdrawn or
      losses on investments, the "Escrow Property"). The Escrow Agent acts hereunder
      as a depository only and is not responsible or liable for the sufficiency,
      correctness, genuineness or validity of any instrument deposited hereunder
      or
      with respect to the form or execution of the same or the identity, authority
      or
      rights of any person executing or depositing the same. The Escrow Agent is
      not a
      party to the Purchase Agreement and has no duty to review the Purchase Agreement
      or to interpret in any manner the terms of the Purchase Agreement.

    

    2. Claims.
      Pursuant
      to the terms of Section 6.3 of the Purchase Agreement, Sellers have agreed
      to
      indemnify the Depositor and related parties in the case of certain
      circumstances. Depositor shall provide notice to the Sellers and to the Escrow
      Agent of any claim by the Depositor or related parties for indemnification
      pursuant to Section 6.3 of the Purchase Agreement (any such Notice, a “Claims
      Notice”). The Claims Notice shall state a good faith, non-binding, preliminary
      estimate of the claimed amount of Damages (the “Claimed Amount”), the sub-item
      of Section 6.3 upon which the request is based, and a detailed description
      of
      the facts underlying the request. Within
      20
      calendar days after receipt by the Sellers and the Escrow Agent of a Claims
      Notice, the Sellers may deliver to the Depositor and to the Escrow Agent a
      written response (the “Response Notice”) in which the Sellers: (i) agree that
      cash in an amount equal to the full claimed amount may be released from the
      Escrow Fund to Depositor; (ii) agree that cash in an amount equal to part,
      but
      not all, of the claimed amount (the “Agreed Amount”) may be released from the
      Escrow Fund to Depositor; or (iii) indicates that no part of the Escrow Fund
      may
      be released from the Escrow Fund to Depositor in respect of the claimed amount.
      Any Response Notice delivered in accordance with clause “(ii)” or “(iii)” of the
      preceding sentence shall also contain a brief non-binding description of the
      facts and circumstances supporting the Seller’s claim that only a portion or no
      part of the claimed amount is owed to Depositor or related parties. Any part
      of
      the claimed amount that is not agreed to be owing pursuant to the Response
      Notice shall be the “Contested Amount.” If a Response Notice is not received by
      the Escrow Agent within such 20 day period, then the Sellers shall be
      conclusively deemed to have agreed that cash in an amount equal to the full
      claimed amount may be released to the Depositor from the Escrow Fund. If the
      Seller delivers a Response Notice agreeing that cash in an amount equal to
      the
      full Claimed Amount may be released from the Escrow Fund to the Depositor,
      or if
      the Seller does not deliver a Response Notice on a timely basis in accordance
      with this Section 2, the Escrow Agent shall within five business days following
      the receipt of such Response Notice (or, if the Escrow Agent has not received
      a
      Response Notice, within five business days following the expiration of the
      20
      day period referred to above), deliver to Depositor such cash; provided that
      in
      the case of the Escrow Agent not receiving any Response Notice, the Escrow
      Agent
      shall not disburse cash to the Depositor until Depositor provides the Escrow
      Agent with written confirmation that the Claims Notice was delivered to the
      Sellers in accordance with Section 3.

    

    3.
       Notice.
      Other
      than as specifically set forth herein, the Escrow Agent shall not be required
      to
      take or be bound by any notice or to take any action unless the Escrow Agent
      is
      indemnified in a manner satisfactory to it against any expense or liability.
      Any
      notice required or desired to be given by the Depositor, Sellers or the Escrow
      Agent to any other party to this Escrow Agreement may be given by delivery
      in
      person or by facsimile transmission or mailing the same, postage prepaid, to
      such party at the address noted on the signature page and notice so mailed
      shall
      for all purposes hereof be as effective as though served upon such party in
      person at the time of depositing such notice in the mail. It shall be the
      responsibility of the Depositor, Sellers and the Escrow Agent to notify each
      other in writing by appropriate documentation of any name, address or facsimile
      number change. 

    

    4.
       Reliance
      upon Depositor.
      The
      Escrow Agent shall be protected in acting upon any notice, request, waiver,
      consent, receipt or other paper or document received from the Depositor and
      believed by the Escrow Agent to be genuine. The Escrow Agent shall be under
      no
      duty or obligation to ascertain the identity, authority and/or rights of any
      person submitting instructions to the Escrow Agent in accordance with the Escrow
      Agreement. 

    

    5.
       Limitations
      of Liability.
      The
      Escrow Agent shall not be liable for any error of judgment or for any act done
      or step taken or omitted by it in good faith or for any mistake of fact or
      law
      or for anything which the Escrow Agent may do or refrain from doing in
      connection herewith, including upon advice of counsel, except for its own
      willful misconduct or gross negligence. 

    

    6. Adverse
      claims.
      In the
      event of an adverse claim or demand affecting the Escrow Property, the Escrow
      Agent may refuse to comply with such claim or demand and may refuse to deliver
      or dispose of the Escrow Property until the rights of the adverse claimants
      have
      been finally adjudicated in a court of competent jurisdiction or pursuant to
      binding arbitration or until all differences shall have been adjusted by
      agreement and the Escrow Agent shall have been notified thereof in writing
      signed by all parties to this Escrow Agreement. 

    

    7.
       Authority
      for Agreement.
      Each
      party represents and warrants that it has full power and authority to enter
      into
      this Escrow Agreement and has taken all action necessary, corporate or
      otherwise, to carry out the transaction contemplated hereby so that when
      executed this Escrow Agreement constitutes a valid and binding obligation
      enforceable in accordance with its terms. 

    

    8.
       Escrow
      Property.
      No
      assignment, transfer, conveyance or hypothecation of any right, title or
      interest in and to the Escrow Property shall be binding upon the Escrow Agent
      unless written notice thereof shall be served upon the Escrow Agent and all
      fees, cost and expenses incident to such transfer of interest shall have been
      paid. 

    

    9.
       Terms
      of Agreement.
      The
      terms of this Escrow Agreement may be altered, amended, modified or revoked
      by
      writing only, signed by all of the parties hereto or their successors or
      assigns, and approved by the Escrow Agent, upon payment of all fees, costs
      and
      expenses incident hereto. 

    

    10.
       Compensation.
      In
      consideration of the Escrow Agent's agreement to perform the services set forth
      in the Escrow Agreement, the Depositor and Sellers agree to pay the fees and
      charges of the Escrow Agent in accordance with Exhibit C attached hereto. In
      addition to the escrow fee agreed upon, Depositor and the Sellers agree to
      pay
      the Escrow Agent's costs and expenses including reasonable attorneys fees in
      the
      event of any dispute or litigation threatened or commenced which requires the
      Escrow Agent in its opinion to refer such matter to its attorneys. Escrow Agent
      will incur no liability for any delay reasonably required to obtain such advice
      of counsel. The Escrow Agent shall have a first lien on the Escrow Property
      held
      by it hereunder for its compensation and any costs or expense incurred. With
      respect to the proportion of compensation to be paid by the Depositor and the
      Sellers to the Escrow Agent, compensation shall first be paid by the Depositor
      to the extent of and recoverable against any interest earned on the Escrow
      Property while held by the Escrow Agent. To the extent the total amount owed
      to
      the Escrow Agent exceeds the total amount of interest earned on the Escrow
      Property, such excess shall be borne equally by the Depositor and the
      Sellers.

    

    11.
       Integration.
      This
      instrument is the entire agreement of the parties hereto. The Escrow Agent
      shall
      have no duty to know or determine the performance or nonperformance of any
      provision of any agreement between or with the other parties hereto, and the
      original copy or a copy of any such agreement deposited with the Escrow Agent
      shall not bind it in any manner. The Escrow Agent assumes no responsibility
      for
      the validity or sufficiency of any documents or papers or payments deposited
      or
      called for hereunder except as may be expressly and specifically set forth
      in
      this Escrow Agreement. 

    

    12.
       Arbitration.
      The
      parties expressly agree that, should any dispute involving Escrow Agent arise
      relating to this agreement or its negotiation, executions, performance or
      modification, it shall be resolved by binding Arbitrations Rules of the AAA.
      Such arbitrations shall proceed in the County of Los Angeles, California and
      shall be governed by the provisions of the Federal Arbitrations Act, and to
      the
      extent the foregoing are inapplicable, unenforceable or invalid, by the laws
      of
      the State of California. Any decision on the merits of any claim or portion
      thereof rendered by arbitrators shall be made by way of a written opinion in
      which the reasons for the decision are explained. Judgment upon the award
      rendered by the arbitrator may be entered in any court having jurisdiction.
      Any
      party who fails to submit to binding arbitration following a lawful demand
      of
      the opposing party shall bear all costs and expenses, .including reasonable
      attorney fees, incurred by the opposing party in compelling arbitration.

    

    Notwithstanding
      the foregoing, any dispute between Depositor and Sellers relating to or arising
      under the Purchase Agreement or otherwise governed by the arbitration and
      dispute provisions of the Purchase Agreement shall be resolved pursuant to
      the
      provisions of the Purchase Agreement. 

    

    13.
       Indemnification.
      Depositor and Sellers hereby agree to indemnify and save Escrow Agent harmless
      from and against any and all claims, demands, actions, proceedings, judgments,
      losses, damages, counsel fees, court costs, payments, expenses, and all
      liabilities whatsoever, which Escrow Agent at any time shall or may sustain
      or
      incur by reason of complying with the duties of this Escrow Agreement or any
      requests made by Depositor or Sellers save for its own gross negligence or
      willful misconduct. 

    

    14.
       Tax
      Reporting.
      The
      parties hereto agree that, for tax reporting purposes, all interest or other
      income earned, if any, from the investment of the Escrow Funds shall be
      allocable to the Depositor. 

    

    15.
       Certification
      of Tax Identification Number.
      The
      parties hereto agree to provide the Escrow Agent with a certified tax
      identification number by signing and returning a Form W-9 (or Form W-8, in
      the
      case of non-U.S. persons) and other forms and documents that the Escrow Agent
      may reasonably request (collectively, "Tax Reporting Documentation") to the
      Escrow Agent within 30 days from the date hereof. The parties hereto understand
      that, if such Tax Reporting Documentation is not so certified to the Escrow
      Agent, the Escrow Agent may be required by the Internal Revenue Code, as amended
      from time to time, to withhold a portion of any interest or other income earned
      on the investment of moneys or other property held by the Escrow Agent pursuant
      to this Escrow Agreement. 

    

    16.
       Termination.
      If the
      Escrow Property has not been withdrawn before January 1, 2010, then this Escrow
      Agreement shall automatically terminate and the Escrow Agent shall deliver
      same
      pursuant to the provisions of Exhibit B; provided, however, in the event that
      the parties hereto shall have a pending arbitration or litigation relating
      to or
      effecting the Escrow Property, then this Agreement shall continue until such
      arbitration or litigation (including applicable appeal periods) shall
      conclude.

    

    17.
       Resignation
      of Escrow Agent.
      The
      Escrow Agent may resign at any time by giving written notice by Overnight or
      Certified Mail, return receipt requested, to all of the parties hereto and
      to be
      effective thirty days after such notice has been deposited into the U.S. Mail.
      If a successor agent has not been appointed within thirty days after such notice
      of resignation, the Escrow Agent may petition any court of competent
      jurisdiction for the appointment of a successor Escrow Agent. Costs of such
      petition, including reasonable attorneys' fees, shall be borne by the Depositor
      or may be assessed by the resigning Escrow Agent against the Escrow Property.
      

    

    18.
       Applicable
      Law.
      This
      agreement shall be constructed and construed in accordance with the laws of
      the
      State of California. 

    

    19.
       Investments.
      The
      Escrow Agent shall not be responsible or liable for any diminution of principal,
      interest, or penalty on any investments of the Escrow property made pursuant
      to
      the terms of this Escrow Agreement. Unless otherwise instructed by the
      Depositor, the Escrow Property shall be invested in Dreyfus Treasury Cash
      Management Fund (Participant Shares), a money market fund registered under
      the
      Investment Company Act of 1940, the principal of which is invested solely in
      obligations issued or guaranteed by the United States Government and repurchase
      agreements in respect of these obligations, or a similar money market fund
      as
      directed in writing by the Depositor. The Escrow Agent is authorized to
      liquidate in accordance with its customary procedures any portion of the Escrow
      Property to provide for payments required to be made under this Escrow
      Agreement. The Depositor acknowledges that, pursuant to national banking
      regulations, it is entitled to receive separate notification of every security
      transaction and hereby waives receipt of such notification in view of the
      inclusion of such information in the transaction statements to be provided
      by
      the Escrow Agent.

    

    20.
       Conflicts.
      If a
      conflict arises between the instructions set forth in Exhibit B ("Specific
      Instructions") and the terms set forth herein, then the terms set forth herein
      shall rule. 

    

    [remainder
      of this page intentionally blank; signature page
      follows]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    In
      Witness Whereof
      the
      undersigned have hereto affixed their signatures, and hereby adopt Exhibits
      A, B
      and C attached hereto as part of this Escrow Agreement, as of the day and year
      first above written.

    

    
      	
              DEPOSITOR

               

              Evans
                Analytical Group LLC

               

               

              By:
                      

               

              Name:
                     

               

              Title:
                      

               

              Evans
                Analytical Group LLC

              810
                Kifer Road

              Sunnyvale,
                CA 94086

              Attention:
                Thomas B. Pfeil

              Phone:
                408-530-3898

              Facsimile:
                408-530-3899

            	
              ESCROW
                AGENT

               

              Zions
                First National Bank, as Escrow Agent

               

               

              By:
                      

               

              Name:
                     

               

              Title:
                      

               

              Zions
                First National Bank

              Corporate
                Trust Department

              550
                South Hope Street, Suite 2650

              Los
                Angeles, CA 90071

              Phone:
                213-593-315

              Facsimile:
                213-593-3160

            
	
              SELLERS

               

              Accurel
                Systems International Corporation

               

               

              By:
                      

               

              Name:
                     

               

              Title:
                      

               

              Implant
                Sciences Corporation

               

               

              By:
                      

               

              Name:
                     

               

              Title:
                      

            	 

    

    

    Notice
      to
      both Accurel and Implant Sciences to be provided to:

    

    Implant
      Sciences Corporation

    107
      Audubon Road, #5

    Wakefield,
      MA 01880-1246

    Attention:
      Diane Ryan

    Phone:
      781-246-0700

    Facsimile:
      781-246-3561

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    ("Escrow
      Property")

    

    One
      Million Dollars ($1,000,000.00)

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    ("Specific
      Instructions")

    

    All
      capitalized terms used in this Exhibit B and not otherwise defined in this
      Escrow Agreement shall have the meaning provided in that certain Asset Purchase
      Agreement dated April 30, 2007, by and between Sellers and Depositor (the
      "Purchase Agreement").

    

    (1) On
      the
      earlier of March 31, 2008 or ten (10) days after the issuance of Depositor’s
      audited financial statements for the fiscal year ending in 2007, the Escrow
      Agent shall disburse to the Sellers out of the Escrow Account an amount equal
      to
      (i) Five Hundred Thousand Dollars ($500,000.00), less (ii) the amount of all
      indemnification payments payable by the Sellers that have been deducted from
      the
      Escrow Account since the Closing Date, less (iii) the amount of all unresolved
      claims against the Sellers for indemnification pursuant to the Purchase
      Agreement for which the Escrow Agent has received a Claims Notice (the “First
      Escrow Payment”) pursuant to the written direction of the Depositor delivered to
      the Escrow Agent; and

    

    (2) On
      the
      earlier of March 31, 2009 or ten (10) days after the issuance of the Depositor’s
      audited financial statements for the fiscal year ending in 2008, the Escrow
      Agent shall disburse to the Sellers out of the Escrow Account an amount equal
      to
      (i) One Million Dollars ($1,000,000.00) less (ii) the First Escrow Payment,
      less
      (iii) the amount of all indemnification payments payable by the Sellers that
      have been deducted from the Escrow Account since the Closing Date, less (iv)
      the
      amount of all unresolved claims against the Sellers for indemnification pursuant
      to this Agreement for which the Escrow Agent has received a Claims Notice (the
“Second Escrow Payment”) pursuant to the written direction of the Depositor
      delivered to the Escrow Agent. The Sellers retain the right to dispute any
      such
      unresolved claims for indemnification in accordance with Section 6.2 of the
      Purchase Agreement.

    

    (3) Following
      final resolution of any unresolved claims deducted from the Second Escrow
      Payment, the Escrow Agent shall disburse to the Sellers out of the Escrow
      Account an amount equal to the excess (if any) of the amounts deducted from
      the
      Second Escrow Payment for such claims over the amount actually used to satisfy
      such claims.

    

    (4)
       Upon
      termination of this Escrow Agreement pursuant to Section 16 of this Escrow
      Agreement, any funds retained in the Escrow Account shall be disbursed to
      Depositor.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

    

    ("Fee
      Schedule")WWW.EXFILE.COM -- BOSTON SCIENTIFIC -- EXHIBIT 10.1 TO FORM 8-K -- 15148

    EXHIBIT
      10.1

    

    April
      11,
      2007

    

     

    Mr.
      Sam
      R. Leno

    4
      Stone
      Camp Trail

    Winona
      Lake, IN  46590

    

    

    Dear
      Sam:

    

    On
      behalf
      of Boston Scientific Corporation and its Executive Committee, we are very
      pleased to confirm our offer of employment to you.  Your Boston
      Scientific title will be Chief Financial Officer and Executive Vice President
      of
      Finance and Information Systems.  You will report to James R. Tobin,
      President and Chief Executive Officer.  As part of this
      offer, we are recommending your nomination (subject to Board approval) as a
      member of Boston Scientific’s Executive Committee. We look forward to a
      productive and successful working relationship and to your formal acceptance
      of
      this offer of employment.

    

    This
      letter, the enclosed Employee Agreement and Code of Conduct summarize our
      understanding of the terms of your employment and provide you the means to
      accept our offer as described.

    

    COMPENSATION

    Through
      annual and long-term programs, Boston Scientific's compensation programs provide
      our employees with significant compensation opportunities on a pay for
      performance basis.  The objective of these programs is to recognize
      and reward both individual and company performance.

    

    Base
      Salary:  Base gross salary for this position will be
      $23,076.92, currently payable bi-weekly, equivalent to
      $600,000 on an annualized basis.  Your performance and compensation
      will generally be reviewed on an annual basis.  The Boston Scientific
      performance year currently runs from January 1 through December 31 of each
      year.  If your date of employment is on or before November 1, you are
      eligible to participate in the current year’s performance and compensation
      review based on your manager’s assessment of your performance.  Any
      compensation change will be prorated based on your date of
      employment.  If your date of employment is after November 1, your
      first performance and compensation review will occur in the following
      year.

     

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Performance
      Incentive Plan:  The Boston Scientific performance year
      currently runs from January 1 through December 31 of each year.  The
      Performance Incentive Plan provides employees with the opportunity for a
      variable financial incentive in recognition of individual and company
      performance in a given year.  You are eligible to participate in the
      annual Performance Incentive Plan beginning this year and you will be eligible
      to receive a full-year’s bonus amount. Per the current plan, your annual target
      incentive is 75% of base salary.  Your actual
      award will be based on your achievement of individual goals and the company's
      achievement of corporate performance goals.  Under the current plan,
      you must be an active employee on December 31 of the then current year to be
      eligible for payment. A copy of the 2007 Performance Incentive Plan has already
      been provided to you.

     

    Executive
      Allowance Plan:  As a member of the Executive Committee, you
      will be eligible to participate in the Boston Scientific Executive Allowance
      Plan.  Under this Plan, you will receive $25,000 annually in lieu of
      certain other perquisites.  This payment is subject to applicable
      withholdings and is typically payable in two equal installments of $12,500
      each
      in the last pay periods of the months of June and December except for 2007
      where
      the first installment will be prorated.  A copy of Boston Scientific’s
      Executive Allowance Plan has already been provided to you.

     

    Equity:  As
      part of this offer of employment, we are recommending to the Compensation
      Committee of the Boston Scientific Board of Directors (“Compensation Committee”)
      that you be granted an option to purchase 1,500,000 shares of Boston Scientific
      common stock and given an award of 500,000 Deferred Stock Units
      (“DSUs”).  The stock option grant and DSU award will be made pursuant
      to one of the Boston Scientific Long Term Incentive Plans.  Our Long
      Term Incentive Plans are designed to share the rewards of the business with
      individuals who most significantly contribute to the achievement of the
      company’s strategic and operating goals.

     

    Non-Qualified
      Stock
      Options.  The option grant, which must be submitted to the
      Compensation Committee for approval, will provide you with the opportunity
      to
      purchase shares of Boston Scientific common stock.  The grant date and
      exercise price per share will be set on the later of your actual hire date
      or
      the date the recommendation is formally approved.  The option grant
      will vest in four equal annual installments beginning on the first anniversary
      of the date of grant and will expire on the 10th anniversary
      of the
      grant date.  In all other respects the option grant will be subject to
      the provisions of the applicable Long Term Incentive Plan and Non-Qualified
      Stock Option Agreement except that, subject to approval by the Compensation
      Committee, you will be deemed to have met Retirement eligibility under the
      applicable Long Term Incentive Plan and Non-Qualified Stock Option Agreement
      upon your termination from employment at Boston Scientific for any reason (other
      than for Cause) and assuming a period of employment of at least three years,
      unless involuntarily terminated before completing three years of
      employment.  If involuntarily terminated (except for Cause) before
      completing three years of employment, you will be deemed to have met Retirement
      eligibility for all Boston Scientific benefits and benefit plans, including,
      but
      not limited to, the applicable Long Term Incentive Plan and Non-Qualified Stock
      Option Agreement . “Cause” is defined for purposes of every aspect of this
      letter to mean:  (a) conduct constituting a material act of misconduct
      in connection with the performance of your duties; or (b) criminal or civil
      conviction, a plea of nolo contendere or conduct that would reasonably be
      expected to result in material injury to the reputation of Boston Scientific
      if
      you were retained in your position with Boston Scientific.  In
      addition, in 

     

     

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    accordance
      with the applicable Long Term Incentive Plan, your unvested stock options will
      accelerate upon your Disability, death or a Change in Control of Boston
      Scientific (as those terms are defined in the applicable Long Term Incentive
      Plan) and remain exercisable until the expiration of the stated term of the
      stock option.

     

    DSU
      Award.  The DSU
      award, which must also be submitted to the Compensation Committee for approval,
      reflects Boston Scientific’s commitment to grant to you a specified number of
      shares of Boston Scientific common stock (less applicable tax and other
      withholdings), to be issued to you in five equal annual increments beginning
      on
      the first anniversary of the date of the grant.  This award is also
      subject to all provisions of the applicable Long Term Incentive Plan and
      Deferred Stock Unit Agreement except that, subject to approval by the
      Compensation Committee, you will be deemed to have met Retirement eligibility
      under the applicable Long Term Incentive Plan and Deferred Stock Unit Agreement
      upon your termination from employment at Boston Scientific for any reason (other
      than for Cause) and assuming a period of employment of at least three years,
      unless involuntarily terminated before completing three years of
      employment.  If involuntarily terminated (except for Cause) before
      completing three years of employment, you will be deemed to have met Retirement
      eligibility for all Boston Scientific benefits and benefit plans, including,
      but
      not limited to, the applicable Long Term Incentive Plan and Deferred Stock
      Unit
      Agreement. In addition, in accordance with the applicable Long Term Incentive
      Plan, upon your Disability, death or a Change in Control of Boston Scientific
      (as those terms are defined in the applicable Long Term Incentive Plan), we
      will
      issue to you or your beneficiary (as the case may be), any shares of Boston
      Scientific stock to be awarded to you in accordance with this letter that remain
      subject to eligibility conditions.

     

    RELOCATION

    To
      assist
      you with your move to the Boston area, Boston Scientific is pleased to provide
      you with specific relocation benefits under the Tier V Executive Officer level
      of Boston Scientific’s relocation program, with approval of certain exceptions
      to be given by Lucia Quinn, Executive Vice President, Human
      Resources.  Diane Maroney, Boston Scientific’s Domestic Relocation
      Manager, will contact you to discuss the relocation program, in more
      detail.  Please be aware that in connection with the relocation
      assistance being offered, you will be required to sign an Agreement to Reimburse
      form (a sample of which is enclosed) which, among other things, contains a
      requirement to repay relocation costs if you leave the Company within a
      specified period of time for certain reasons.

    

    Your
      participation in the Company’s relocation program will include the sale of both
      of your residences and the relocation of your personal effects from both
      residences.  The Company will guarantee that you receive net (after
      tax) proceeds of a minimum of $1.3 million for each residence.

     

    NOTE:  If
      Home Sale Assistance is an aspect of your relocation assistance, it is required
      that our third-party relocation vendor be allowed to make the initial call
      to
      the realtor of your choice.  Therefore, please do not contact a
      realtor directly before coordination with Boston Scientific, as to do so may
      impact your eligibility for relocation assistance.

    

    Any
      relocation questions you may have should be directed to Diane Maroney, US
      Domestic Relocation Manager, at 508-650-8483 or e-mail, maroneyd@bsci.com.

     

     

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    BENEFITS

    Enclosed
      is descriptive literature regarding Boston Scientific’s current benefit
      programs.  You should review this information prior to your start date
      so you are prepared to enroll within your first 31 days of employment. Please
      understand that the company reserves the right to unilaterally amend or
      terminate any of these programs, or to require or change employee premium
      contributions toward any benefits.

    

    Executive
      Retirement Plan:  Subject to approval by the Compensation
      Committee, as a member of the Executive Committee, you will be deemed eligible
      for benefits equivalent to those you would receive under the Boston Scientific
      Executive Retirement Plan upon your termination from employment at Boston
      Scientific for any reason (other than for Cause) and assuming a period of
      employment of at least three years, unless involuntarily terminated before
      completing three years of employment.  If involuntarily terminated
      (except for Cause) before completing three years of employment, you will be
      deemed to have met Retirement eligibility for all Boston Scientific benefits
      and
      benefit plans, including, but not limited to, the Executive Retirement
      Plan.  Among other things, you will be eligible to receive certain
      benefits provided in that Plan, including a lump sum payment equal to 2.5 months
      of base salary times your years of actual service, subject to a maximum benefit
      of 36 months.  A copy of Boston Scientific’s Executive Retirement Plan
      has already been provided to you.

    

    Boston
      Scientific Retention and Indemnification Agreements:  Boston
      Scientific also provides retention and indemnification agreements to its key
      executives.  In general, the retention agreement entitles you as a
      member of our Executive Committee to a lump sum payment of three times your
      base
      salary and assumed on-plan incentive bonus if either your employment is
      terminated (other than for cause) or if your duties are diminished following
      a
      change in control of Boston Scientific.  Indemnification by Boston
      Scientific is also extended to key executives for liability arising in the
      proper performance of one’s responsibilities as an executive officer of Boston
      Scientific.  A form of each agreement has already been provided to
      you.

    

    AUTHORIZATION
      TO WORK

    Please
      note that this offer of employment is contingent upon your ability to provide,
      on your first day of employment, a completed I-9 form and acceptable original
      documents that will establish your identity and authorization to work in the
      U.S. in compliance with the Immigration Reform and Control Act of 1986, a
      federal law.  Please see the enclosed document “Orientation for New
      Hires” for a list of acceptable identification documents. It is Boston
      Scientific’s practice to require that these original identification documents be
      presented on the first day of employment, so please remember to bring
      them.

     

     

     

    
 

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    BACKGROUND
      VERIFICATION

    A
      background verification satisfactory to Boston Scientific has been completed
      as
      of your signature date on this letter.

    

    EMPLOYMENT
      AT WILL

    Upon
      acceptance of this offer and your active start of employment, you will become
      an
“at will” employee of Boston Scientific.  This means that you will be
      free to resign at any time.  Likewise, Boston Scientific will have the
      right to terminate your employment at any time with or without reason or
      notice.  Acceptance of this offer acknowledges your understanding and
      acceptance of the “at will” nature of your employment.

    

    

    

    

    

    (The
      remainder of this page is left intentionally blank.)

     

     

     

     

     

    
 

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    ACCEPTANCE

    This
      offer letter is contingent upon the following:

     

    
      	
              ·     

            	
              Successful
                completion of reference and background checks, as described in this
                letter;

            

    

    
      	
              ·  
                  

            	
              An
                acceptance date no later than April 17,
                2007;

            

    

    
      	
              ·     
                

            	
              A
                start date to be mutually agreed upon, but no later than June 1,
                2007; and

            

    

    
      	
              ·     

            	
              Your
                return of all completed, signed paperwork listed on the enclosed
                New
                Employee Checklist, including but not limited to the Employee Agreement,
                so that Boston Scientific receives it four (4) business days before
                your
                start date.

            

    

    

    Please
      indicate your acceptance of this offer of employment and agreement with the
      terms described in the enclosed documents by completing, signing and
      returning all enclosed paperwork at least four (4) business days before your
      start date.  The Code of Conduct, Benefits Literature and policy
      documents should be retained by you for your records.

    

    Sam,
      we
      believe that the opportunity here with Boston Scientific will be a mutually
      rewarding one and we look forward to your acceptance of this offer.

    

    

    Sincerely,

    
      	 	 	 	 	 
	
            	 	 	
            	 
	James R.
              Tobin 	 	 	
              Lucia
                Luce
                Quinn

            	 
	
              President
                and
                Chief Executive Officer

            	 	 	
              Executive
                Vice
                President, Human Resources

            	 

    

    

    

    

    Agreed
      to
      and Accepted by ___________________________________  
Date:_____________

        
           Sam R. Leno

     

    
 

    Enclosures:

    Employee
      Agreement

    Benefits
      Literature

    Code
      of
      Conduct

    New
      Employee Checklist/Forms/Equal Employment Policy Statement

    Policy
      Against Harassment

    Orientation
      for New Hires

    Agreement
      to Reimburse

    

    
 

     

     

    
      
         

      

      
        6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]