Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.20    
    

 
 

LABRANCHE & CO INC.
  SENIOR EXECUTIVE BONUS PLAN    
    

        1.    Purpose.    The purpose of the LaBranche & Co Inc. Senior Executive Bonus Plan (the "Plan") is to
attract, motivate and retain certain "Executive Officers" (as defined in Rule 3b-7 promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) of
LaBranche & Co Inc. (the "Company") and its subsidiaries and affiliates (collectively with the Company, the "Firm") in order to promote the Firm's long-term growth and
profitability. It is intended that all bonuses payable under the Plan be considered "performance-based compensation" within the meaning of Section 162(m)(4)(C) of the Internal Revenue Code of
1986, as amended (the "Code"), and the Treasury Regulations issued thereunder, and the Plan shall be interpreted and construed accordingly. 

        2.    Administration.    

        (a)    Committee.    Subject to Section 2(c) hereof, the Plan shall be administered by a committee (the
"Committee") appointed by the Board of Directors of the Company (the "Board"), whose members shall serve at the pleasure of the Board. The Committee at all times shall be composed of at least two
directors of the Company, each of whom is an "outside director" within the meaning of Section 162(m) of the Code and Treasury Regulation Section 1.162-27(e)(3) and a
"non-employee director" within the meaning of Rule 16b-3 promulgated under the Exchange Act. If for any reason any member of the Committee does not qualify as an
"outside director" or as a "non-employee director," such non-compliance shall not affect the validity of any awards, determinations, certifications or interpretations made by,
or any other actions of, the Committee hereunder. Unless otherwise determined by the Board, the Committee shall be the Compensation Committee of the Board. 

        (b)    Authority of Committee.    Subject to the limitations of the Plan, the Committee, acting in its sole and
absolute discretion, shall have full power and authority to designate those Executive Officers of the
Firm, in addition to the Chief Executive Officer of the Company, who shall participate in the Plan (the "Participants") for each "Fiscal Period" (as defined in Section 3 hereof), exercise all
the other powers granted to it under the Plan, construe, interpret and apply the provisions of the Plan, prescribe, amend and rescind rules and regulations relating to the Plan, including rules
governing its own operation, make all determinations necessary or advisable in administering the Plan (including, without limitation, calculating the amount of the bonus payable to each Participant),
correct any defect, supply any omission and reconcile any inconsistency in the Plan, and make any and all determinations and interpretations and take such other actions as may be necessary or
desirable in order to carry out the provisions, intent and purposes of the Plan. The determination of the Committee on all matters relating to the Plan shall be final, binding and conclusive. 

        (c)    Allocation and Delegation of Authority.    The Committee may allocate among its members and may delegate some
or all of its authority or administrative responsibility to such individual or individuals who are not members of the Committee or Participants as it shall deem necessary or appropriate, provided,
however, that the Committee may not allocate or delegate any of its authority or administrative responsibility hereunder (and no such attempted delegation shall be effective) if such allocation or
delegation would cause any bonus payable under the Plan not to be considered "performance-based compensation" within the meaning of Section 162(m)(4)(C) of the Code and the Treasury Regulations
issued thereunder, and any such attempted delegation shall be null and void ab initio. 

        (d)    Indemnification.    The Company shall indemnify and hold harmless each member of the Committee and any person
to whom any duty or power relating to the administration or interpretation of the Plan is properly delegated from and against any loss, cost, liability (including any sum paid in settlement of a claim
with the approval of the Board), damage and expense 

 

(including
reasonable legal and other expenses incident thereto) arising out of or incurred in connection with the Plan, unless and except to the extent attributable to such person's fraud or willful
misconduct. 

        3.    Fiscal Periods.    The Plan shall operate for successive fiscal year periods (each, a "Fiscal Period"). The
first Fiscal Period shall commence on January 1, 2003 and shall terminate on December 31, 2003. The duration of each Fiscal Period commencing thereafter shall be one full fiscal year,
provided, however, that to the extent consistent with Treasury Regulation Section 1.162-27(e)(2), in the case of an individual who becomes an Executive Officer of the Firm after the
Establishment Date (as defined in Section 4 hereof) for the then-current Fiscal Period and is designated as a Participant (a "New Participant") in accordance with Section 4
hereof, the Committee may, in its discretion, establish a special Fiscal Period applicable solely to such New Participant commencing as of
the date on which such Executive Officer becomes a New Participant and ending on the following December 31. 

        4.    Participation.    No later than the 90th day after the beginning of a Fiscal Period (or, in the case of a New
Participant, by such other date as may be required or permitted under Treasury Regulation Section 1.162-27(e)(2)) (the "Establishment Date"), the Committee shall designate the
Participants for such Fiscal Period. The names of the Participants shall be set forth in the written record of the proceedings in which such designation occurs which, in the case of the first Fiscal
Period and, unless otherwise determined by the Committee, each subsequent Fiscal Period, shall be the Executive Officers listed on Schedule A hereto. No Participant for any particular Fiscal
Period shall be eligible to receive any amount under the LaBranche & Co Inc. Annual Incentive Plan (the "Annual Incentive Plan") for any portion of the same Fiscal Period. The Committee
shall have the authority to (1) to remove Participants from the Plan for a Fiscal Period at any time during the Fiscal Period, and (2) add Participants to the Plan for a Fiscal Period
prior to the Establishment Date for such Fiscal Period. 

        5.    Bonus Amounts.    

        (a)    Establishment.    Each Participant shall be paid a bonus amount for each Fiscal Period equal to 5% of the
Company's "Pre-Tax Income" (as defined below) during such Fiscal Period, provided, however, that in no event shall the aggregate amount paid under the Plan and the Annual Incentive Plan
with respect to any fiscal year of the Company exceed 30% of the Company's Pre-Tax Income for such fiscal year. Notwithstanding anything to the contrary in the Plan, the Committee may, in
its sole discretion, reduce or eliminate the bonus amount otherwise payable to any Participant for a particular Fiscal Period at any time prior to the payment of bonuses to Participants for such
Fiscal Period pursuant to Section 6 hereof. "Pre-Tax Income" shall mean the Company's "income before provision for income taxes" as reported on the Company's consolidated financial
statements for the relevant Fiscal Period, further reduced by the amount of compensation expense charged to the Company for such Fiscal Period attributable to the Company's award to its employees of
restricted stock units with respect to shares of its common stock, par value $.01 (the "Common Stock"), in connection with the initial offering of shares of Common Stock to the public in August, 1999. 

        (b)    Termination of Employment.    If a Participant's employment with the Firm terminates for any reason before the
end of a Fiscal Period, the Committee shall have the discretion to determine whether such Participant's bonus for such Fiscal Period shall be forfeited, such Participant's bonus for such Fiscal Period
shall be reduced on a pro-rata basis to reflect the portion of such Fiscal Period during which the Participant was employed by the Firm, or to make such other arrangements as the Committee
deems appropriate in connection with the termination of such Participant's employment. 

        (c)    Certification of Performance Goals and Determination of Bonus Amounts.    Following the completion of each
Fiscal Period, but prior to the payment of bonuses with respect to such Fiscal 

2

 

Period
pursuant to Section 6 hereof, the Committee shall certify the attainment of the performance goals hereunder and determine the amount of each Participant's bonus (if any) for such Fiscal
Period and the method and timing of its payment, which certification and determinations shall be set forth in the written record of the proceedings in which such determinations occur. No Participant
shall have any rights to payment of any bonus under the Plan for any Fiscal Period unless and until the Committee certifies the attainment of the performance goals hereunder and determines such
Participant's bonus (if any) for such Fiscal Period. 

        6.    Payment of Bonus Amount; Deferral.    Each Participant's bonus shall be payable by such Participant's
Participating Employer (as defined in Section 8(j) hereof), or in the case of a Participant employed by more than one Participating Employer, by each such employer as determined by the
Committee. Bonuses hereunder shall be payable, in the discretion of the Committee, in cash and/or equity-based awards (including unrestricted shares of Common Stock, restricted shares of Common Stock,
options to purchase shares of Common Stock, restricted stock units or any other equity-based award permitted under the LaBranche & Co Inc. Equity Incentive Plan or any successor or
future plan or any combination thereof). The cash portion of the bonus shall be paid at such time as bonuses are generally paid by the Participating Employer(s) for the relevant Fiscal Period. Any
equity-based awards shall be subject to such terms and conditions (including vesting requirements) as the Committee and the administrative committee of the plan under which such equity-based award is
granted may determine. Subject to such terms and conditions as may be imposed by the Committee, each Participant may be permitted or required to defer receipt of part or all of any bonus otherwise
payable to him or her under the Plan. 

        7.    Amendment; Termination.    The Board reserves the right at any time and from time to time to modify, alter,
amend, suspend, discontinue or terminate the Plan in any respect whatsoever, provided that no such action may reduce the amount of any bonus previously determined by the Committee pursuant to
Section 5(c) hereof (including any bonus (and any earnings thereon) deferred pursuant to Section 6 hereof) that is then owed by the Firm to a Participant without such Participant' s
consent, and no modification, amendment or alteration that would require stockholder approval in order for bonuses paid pursuant to the Plan to constitute "performance-based compensation" within the
meaning of Section 162(m)(4)(C) of the Code shall be effective without the approval of the stockholders of the Company as required by Section 162(m) of the Code and the Treasury
Regulations issued thereunder, unless the Board determines that the qualification of such bonuses as "performance-based compensation" within the meaning of Section 162(m)(4)(C) of the Code is
no longer necessary or desirable. 

        8.    General Provisions.    

        (a)    Nonassignability.    No rights of any Participant (or of any beneficiary pursuant to this Section 8(a))
under the Plan may be sold, exchanged, transferred, assigned, hypothecated or otherwise disposed of (including through the use of any cash-settled instrument), either voluntarily or
involuntarily. Any sale, exchange, transfer, assignment, hypothecation or other disposition in violation of the provisions of this Section 8(a) shall be null and void ab initio. In the event of
a Participant's death, any previously earned and unpaid bonus shall be paid to such Participant's estate. 

        (b)    Plan Creates No Employment Rights.    Nothing in the Plan shall confer upon any Participant the right to
continue in the employ or other service of the Firm or affect the right of the Firm to terminate such employment or other service at any time. 

        (c)    Waiver of Rights.    Each Participant recognizes and agrees that prior to being selected by the Committee to
participate in the Plan, such Participant has no rights hereunder. Accordingly, in consideration of the designation of a Participant to participate in the Plan, each Participant expressly waives any
right to contest the amount of any bonus payable hereunder, the terms of the 

3

 

Plan
or any determination, action or omission hereunder by the Committee, the Company or the Board. 

        (d)    Unfunded Plan.    The Plan shall be unfunded. The Firm shall not be required to establish any special
segregation of assets to assure payment of bonuses hereunder. 

        (e)    Arbitration.    Any dispute, controversy or claim between the Firm and any Participant arising out of or
relating to or concerning the provisions of the Plan shall be finally settled by arbitration in New York City before, and in accordance with the rules then obtaining of, the New York Stock
Exchange, Inc. ("NYSE") or, if the NYSE declines to arbitrate the matter, the American Arbitration Association (the "AAA") in accordance with the commercial arbitration rules of the AAA. Prior
to arbitration, all claims asserted by any Participant must first be submitted to the Committee in accordance with claims procedures established by the Committee in its sole discretion. 

        (f)    Governing Law.    All rights and obligations under the Plan shall be governed by, and construed in accordance
with, the laws of the State of New York, without regard to principles of conflict of laws. 

        (g)    Tax Withholding.    In connection with any payments to a Participant or other event under the Plan that gives
rise to a federal, state, local or other tax withholding obligation (including, without limitation, FICA tax), the Firm may deduct or withhold (or cause to be deducted or withheld) from any payment or
distribution to such Participant, whether or not pursuant to the Plan, or the Committee shall be
entitled to require that such Participant remit cash (through payroll deduction or otherwise), in each case in an amount sufficient in the opinion of the Firm to satisfy such withholding obligation. 

        (h)    Right of Offset.    The Firm shall have the right to offset against the obligation to pay a bonus to any
Participant, any outstanding amounts such Participant then owes to the Firm. 

        (i)    No Third Party Beneficiaries.    The Plan shall not confer on any person other than the Firm and the
Participants any rights or remedies hereunder. 

        (j)    Participating Employers.    Each subsidiary or affiliate of the Company that is the principal employer of a
Participant shall be deemed to have adopted the Plan (a "Participating Employer"). Except for purposes of determining the amount of each Participant's bonus, the Plan shall be treated as a separate
plan maintained by each Participating Employer and the obligation to pay a bonus to each Participant shall be the sole liability of the Participating Employer(s) by which the Participant is employed,
and neither the Company nor any other Participating Employer shall have any liability with respect to such amounts. 

        (k)    Successors and Assigns.    The terms of the Plan shall be binding upon and inure to the benefit of each
Participant, the Firm and the Firm's successors or assigns. 

        (l)    Plan subject to Stockholder Approval.    The Plan is adopted subject to the approval of the stockholders of the
Company at the Company's 2003 Annual Meeting in accordance with Section 162(m)(4)(C) of the Code and Treasury Regulation Section 1.162-27(e)(4), and no bonus shall be payable
hereunder absent such stockholder approval. 

4

 
 
 

Schedule A    
    

        The Compensation Committee has determined that the following Executive Officers of the Company shall be participants in the Senior Executive Bonus Plan for the
Fiscal Period commencing January 1, 2003 and, unless and until otherwise determined by the Compensation Committee, each Fiscal Period commencing thereafter: 

	1.
	George M.L.
LaBranche, IV

	2.
	Alfred O.
Hayward, Jr.

	3.
	Harvey S.
Traison

	4.
	William J.
Burke, III 

5

QuickLinks

Exhibit 10.20

LABRANCHE & CO INC. SENIOR EXECUTIVE BONUS PLAN

Schedule AQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.24  

 
 

VIASYS HEALTHCARE INC.
  EMPLOYMENT AGREEMENT    
    

        THIS AGREEMENT, is made and entered into as of July 1, 2003, by and among Viasys Healthcare Inc., a Delaware corporation (together with its
successors and assigns permitted under this Agreement, the "Company") and Mahboob Raja (the "Executive"). 

W
I T N E S S E T H: 

        WHEREAS,
the Company and the Executive desire to enter into an employment agreement as set forth herein to embody the terms and provisions of the Executive's employment (the
"Agreement"); 

        NOW,
THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is mutually
acknowledged, the Company and the Executive hereby agree as follows: 

1.     DEFINITIONS.  

        (a)   "Affiliate"
means a person or other entity that directly or indirectly controls, is controlled by, or is under common control with the person or other entity specified. 

        (b)   "Base
Salary" means the salary provided for in Section 4 or any increased salary granted to the Executive pursuant thereto. 

        (c)   "Board"
means the Board of Directors of the Company. 

        (d)   "Cause"
means the occurrence of any one or more of the following events: 

          (i)  the
Executive's repeated failure to comply with the reasonable directives of the relevant senior officers; 

         (ii)  the
Executive's conviction of committing a felony which is materially and demonstrably injurious to the Company; or 

        (iii)  the
Executive's continued gross neglect of his duties with the Company (other than any such occurrence resulting from incapacity due to physical or mental illness). 

        (e)   "Change
in Control" means an event or occurrence set forth in any one or more of subsections (i) through (iv) below (including an event or occurrence that
constitutes a Change in Control under one of such subsections but is specifically exempted from another such subsection): 

          (i)  the
acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act")) (a "Person") of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3
promulgated under the Exchange Act) 40% or more of either (i) the then-outstanding shares of common stock of the Company (the "Outstanding Company Common Stock"), or (ii) the
combined voting power of the then-outstanding securities of the Company entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities"); provided,
however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control: 

	(A)
	any
acquisition by the Company, or

	(B)
	any
acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, 

         (ii)  the
Continuing Directors (as defined below) do not constitute a majority of the Board (or, if applicable, the Board of Directors of a successor corporation to the
Company), where the term "Continuing Director" means at any date a member of the Board (A) who was a member of 

 

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

        (iii)  the
consummation of a merger, consolidation, reorganization, recapitalization or statutory share exchange involving the Company or a sale or other disposition of all
or substantially all of the assets of the Company in one or a series of transactions (a "Business Combination"), unless, immediately following such Business Combination the beneficial owners of the
Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the
then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively,
of the resulting or acquiring corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns the Company or substantially
all of the Company's assets either directly or through one or more subsidiaries) (such resulting or acquiring corporation is referred to herein as the "Acquiring Corporation"); or 

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

        (f)    "Code"
means the Internal Revenue Code of 1986, as amended. 

        (g)   "Disability"
or "disabled" means a disability which results in the Executive's entitlement to long-term disability benefits under the Company's applicable
long-term disability plan. 

        (h)   "Effective
Date" means July 1, 2003. 

        (i)    "Notice
of Termination" means a written notice from one party to the other party hereto given in accordance with Section 24, terminating the Executive's
employment hereunder. Any Notice of Termination shall (i) indicate the specific termination provision hereunder relied on by the party giving such notice and (ii) to the extent
applicable, set forth in reasonable detail the facts and circumstances providing a basis for termination of the Executive's employment under the provision so indicated. The failure by the Company to
set forth any fact or circumstance that contributes to a showing of Cause shall not waive any right of the Company hereunder or preclude the Company from asserting any such fact or circumstance in
enforcing its rights hereunder. 

        (j)    "Stock"
means the common stock, $0.01 par value per share, of the Company. 

        (k)   "Termination
Date" means, with respect to any termination of the Executive's employment hereunder, the effective date of such termination pursuant to Section 10. 

2.     TERM OF EMPLOYMENT.  

        This Agreement, and all rights and obligations of the parties hereunder, shall take effect upon the Effective Date and shall continue until the date that is two
years from the Effective Date (the "Term"). If the Company elects not to extend the Term of the Agreement on terms and conditions substantially similar to those set forth in this Agreement, the
Company shall provide the Executive with written notice at least six months prior to the end of the then current term. 

2

 

3.     POSITION, DUTIES AND RESPONSIBILITIES.  

        (a)   Commencing
on the Effective Date, the Executive is employed as Group President, VIASYS International of the Company and the Executive has been assigned and shall be
assigned such duties and responsibilities as are reasonably consistent with such positions and such other duties and responsibilities as the CEO or the Executive's direct supervisor from time to time
deem appropriate. 

        (b)   During
the Term of Employment, the Executive shall devote his entire business time, attention and energies to the business and interest of the Company in performing his
duties and responsibilities under this Agreement, and to that end, the Executive shall not serve on the board of directors of other corporations or entities without the prior approval of the Board. 

        (c)   Notwithstanding
anything contained in Section 3(b) to the contrary, nothing herein shall preclude the Executive from (i) serving on the boards of directors
of a reasonable number of trade associations and/or charitable organizations, (ii) engaging in charitable activities and community affairs, and (iii) managing his personal investments
and affairs, provided, that such activities do not materially interfere with the proper performance of his duties and responsibilities as set forth in this Section 3. 

4.     BASE SALARY.  

        The Executive shall be paid an annualized base salary, payable in accordance with the regular payroll practices of the Company, of $195,000, which amount may be
increased from time to time in the discretion of the Board. 

5.     ANNUAL CASH INCENTIVE AWARD.  

        During the Employment Term, the Executive shall participate in (a) the Viasys Healthcare Inc. Management Incentive Plan with a target bonus of 50% ,
or such other amount as may be determined by Board or the appropriate committee or individual and (b) any other incentive programs established by the Company for its senior level executives
generally. 

6.     EMPLOYEE BENEFIT PROGRAMS.  

        During the Employment Term, the Executive shall be entitled to participate in all employee pension and welfare benefit plans and programs made available to the
Company's senior level executives. 

7.     PERQUISITES.  

        During the Term of Employment, the Executive shall be entitled to participate in all of the Company's executive perquisites in accordance with the terms and
conditions of such arrangements as are in effect from time to time for the Company's senior-level executives. 

8.     REIMBURSEMENT OF BUSINESS AND OTHER EXPENSES.  

        The Executive is authorized to incur reasonable expenses in carrying out his duties and responsibilities under this Agreement and the Company shall promptly
reimburse him for such expenses, subject to documentation in accordance with the Company's policy. 

9.     TERMINATION OF EMPLOYMENT.  

        The Executive's employment hereunder shall terminate effective immediately upon the earlier to occur of the following events: 

        (a)   death
of the Executive; 

3

 

        (b)   receipt
by either party of a Notice of Termination for Disability from the other party, but in any event not until the Executive is determined to be disabled in
accordance with Section 1(g); 

        (c)   the
day the Executive receives a Notice of Termination for Cause from the Company.

        (d)   the
30th day following receipt by the Executive of a Notice of Termination Without Cause from the Company; and 

        (e)   the
31st day following receipt by the Company of a Notice of Termination of Employment from the Executive. 

10.   RIGHTS AND REMEDIES UPON TERMINATION OF EMPLOYMENT.  

        (a)    TERMINATION
DUE TO DEATH. In the event that the Executive's employment is terminated due to his death, his estate or his beneficiaries, as the case may be, shall be
entitled to the following benefits: 

          (i)  The
Executive's then current Base Salary through the Termination Date, which shall be payable in a lump sum within thirty (30) days of the Termination Date; 

         (ii)  An
annual cash incentive bonus award for the year in which the termination occurs, pro-rated through the Termination Date, determined in accordance with the
provisions of Section 5 (the "Pro-Rated Annual Bonus"), which shall be payable when incentive awards are normally paid to comparable executives; and 

        (iii)  Each
outstanding option granted under an equity compensation plan maintained by the Company to purchase shares of stock of the Company shall become immediately
exercisable, and thereafter, shall remain exercisable until the first anniversary of Termination Date. 

        (b)    TERMINATION
DUE TO DISABILITY. In the event that the Executive's employment is terminated by either party due to his Disability, he shall be entitled to the following
benefits: 

          (i)  Disability
benefits in accordance with the long-term disability ("LTD") program then in effect for comparable executives of the Company; 

         (ii)  The
Executive's then current Base Salary through the end of the LTD elimination period, which shall be payable in a lump sum within thirty (30) days of
the Termination Date; 

        (iii)  The
Pro-Rated Annual Bonus, payable when incentive awards are normally paid to comparable executives; and 

        (iv)  Each
outstanding option granted under an equity compensation plan maintained by the Company to purchase shares of stock of the Company shall become immediately
exercisable, and thereafter, shall remain exercisable until the first anniversary of Termination Date. 

        (c)    TERMINATION
BY THE COMPANY FOR CAUSE. In the event that the Company terminates the Executive's employment for Cause: 

          (i)  The
Executive shall be entitled to receive his current Base Salary through the Termination Date, which shall be payable in a lump sum within thirty (30) days of
the Termination Date; 

         (ii)  The
Executive shall not be entitled to any benefits, severance or other compensation; and 

        (iii)  Any
portion of an outstanding option granted under an equity compensation plan maintained by the Company to purchase shares of stock of the Company that has previously
become exercisable shall remain exercisable for a period of 90 days after the Termination Date. Any portion of an outstanding option granted under an equity compensation plan maintained by the
Company that is not exercisable as of the Termination Date shall immediately terminate. 

4

 

        (d)    TERMINATION
BY THE EXECUTIVE. In the event of a termination of employment by the Executive on his own initiative, other than due to (A) death,
(B) Disability, (C) the expiration of the then current Term of Employment, or (D) a notice from one party to the other of its intent not to extend the Employment Term 

          (i)  The
Executive shall be entitled to receive his current Base Salary through the Termination Date, which shall be payable in a lump sum within thirty (30) days of
the Termination Date; 

         (ii)  The
Executive shall not be entitled to any benefits, severance or other compensation; and 

        (iii)  Any
portion of an outstanding option granted under an equity compensation plan maintained by the Company to purchase shares of stock of the Company that has previously
become exercisable shall remain exercisable for a period of 90 days after the Termination Date. Any portion of an outstanding option granted under an equity compensation plan maintained by the
Company that is not exercisable as of the Termination Date shall immediately terminate. 

        (e)    TERMINATION
WITHOUT CAUSE. In the event of a termination of the Executive's employment by the Company, other than due to (A) death, (B) Disability,
(C) Cause, (D) a notice from one party to the other of its intent not to extend the Employment Term, the Executive shall be entitled to the following benefits: 

          (i)  The
Executive's then current Base Salary through the Termination Date, which shall be payable in a lump sum within thirty (30) days of the Termination Date; 

         (ii)  The
Pro-Rated Annual Bonus, payable when incentive awards are normally paid to comparable executives; 

        (iii)  An
amount equal to the sum of (A) the Executive's then current Base Salary and (B) the most recent cash incentive paid or the target bonus available
under the VIASYS Management Incentive Plan then in existence, whichever is higher, payable in a lump sum within ninety (90) days of the Termination Date; and 

        (iv)  Each
outstanding option granted under an equity compensation plan maintained by the Company to purchase shares of stock of the Company shall become immediately
exercisable, and thereafter, shall remain exercisable until the first anniversary of Termination Date. 

        (f)    OTHER
TERMINATION BENEFITS. In the case of any of the foregoing terminations, to the extent not previously paid or provided or otherwise contrary to the terms and
conditions of this Agreement, the Executive or his estate or beneficiaries, as the case may be, shall also be entitled to the balance of any incentive awards due the Executive but not yet paid
(including awards due for performance periods that have been completed, but have not yet been paid), any expense reimbursements due the Executive, and other benefits, if any, in accordance with
applicable plans or programs of or contracts or agreements of the Executive with the Company. In addition, unless indicated otherwise in this Agreement, the treatment of any options granted to the
Executive in the case of any of the foregoing terminations, shall be governed by the terms of the VIASYS Equity Incentive Plan or other relevant equity compensation plan or any associated stock option
agreement. 

        (g)    TERMINATION
FOLLOWING A CHANGE IN CONTROL. Notwithstanding anything to the contrary in this Agreement, in the event the Executive's employment with the Company is
terminated within twelve (12) months following a Change in Control, the Executive shall be entitled to benefits equal to the greater of: (i) the benefits due and payable to him under the
change of control plan sponsored by the Company, if any, (the "Change of Control Plan"), or (ii) the benefits due and payable to him under Section 10 of this Employment Agreement as a
result of such termination. In furtherance thereof, it is the parties' understanding that in the event of a termination under such circumstances, the Executive shall only be entitled to receive
benefits payable under either the Change of Control Plan or this Employment Agreement (but not both). 

5

 

        (h)    NATURE
OF PAYMENTS. Any amounts due under this Section 11 are in the nature of severance payments considered to be reasonable by the Company and are not in the
nature of a penalty. 

        (i)    NO
MITIGATION; NO OFFSET. The Executive shall not be required to mitigate the amount of any payment or benefit provided in this Section 10 by seeking other
employment or otherwise. Further, except as provided in Section 10, the amount of any payment or benefits provided for in this Section 10 shall not be reduced by any compensation earned
by the Executive as a result of employment by another employer. 

11.   CONFIDENTIALITY & ASSIGNMENT OF INVENTIONS.  

        (a)   The
Executive shall execute and deliver to the Company on the Effective Date the Company's standard employee Confidentiality and Assignment of Inventions Agreement,
substantially in the form attached hereto as EXHIBIT A. 

        (b)   Upon
the termination of the Executive's employment, the Executive (or in the event of his death, the Executive's personal representative) shall promptly surrender to the
Company the original and all copies of any materials containing confidential information of the Company which are then in the Executive's possession or control; provided, however, that the Executive
shall not be required to surrender his rolodexes, personal diaries and other items of a personal nature. 

12.   NON-COMPETITION; NON-SOLICITATION.  

        (a)   The
Executive acknowledges (i) that in the course of his employment with the Company he will become familiar with trade secrets and customer lists of, and other
confidential information concerning, the Company and its Affiliates, customers, and clients and (ii) that his services will be of special, unique and extraordinary value to the Company. 

        (b)   The
Executive agrees that during the Term of Employment and for a period of one year following his termination of employment for any reason he shall not in any manner,
directly or indirectly, through any person, firm, corporation or enterprise, alone or as a member of a partnership or as an officer, director, stockholder, investor or employee of or advisor or
consultant to any person, firm, corporation or enterprise or otherwise, engage or be engaged, or assist any other person, firm, corporation or enterprise in engaging or being engaged (collectively,
the "Restricted Activity"), in any Competitive Activity (as defined below). For the purposes of this Section 12, a "Competitive Activity" shall mean, unless otherwise determined by the Board, a
business that (i) is being conducted by the Company or any Affiliate at the time in question and (ii) was being conducted, or was under active consideration to be conducted, by the
Company or any Affiliate, at the date of the termination of the Executive's employment. It is agreed and understood that the prohibitions provided for in this Section 12(b) shall not restrict
the Executive from engaging in Restricted Activity for any subsidiary, division or Affiliate or unit of a company (collectively a "Related Entity") if that Related Entity is not engaged in a
Competitive Activity, irrespective of whether some other Related Entity of that company engages in what would otherwise be considered to be a Competitive Activity (as long as Executive does not engage
in Restricted Activity for such other Related Entity). 

        (c)   The
Executive further agrees that during the Non-Competition Period he shall not (i) in any manner, directly or indirectly, hire or cause to be hired
any employee of or advisor or consultant to the Company or any of its Affiliates for any purpose or in any capacity whatsoever, or (ii) in connection with any business to which
Section 12(b) applies, call on, service, solicit or otherwise do business with any customer of the Company or any of its Affiliates; provided, however, that the restriction contained in
clause (i) of this Section 12(c) shall not apply to, or interfere with, the proper performance by the Executive of his duties and responsibilities under Section 3 of this
Agreement. 

6

 

        (d)   Nothing
in this Section 12 shall prohibit the Executive from being a passive owner of not more than two percent (2%) of the outstanding common stock, capital
stock and equity of any firm, corporation or enterprise so long as the Executive has no active participation in the management or business of such firm, corporation or enterprise. 

        (e)   If
the restrictions stated herein are found by a court to be unreasonable, the parties hereto agree that the maximum period, scope or geographical area reasonable under
such circumstances shall be substituted for the stated period, scope or area and that the court shall revise the restrictions contained herein to cover the maximum period, scope and area permitted by
law. 

13.   REMEDIES.  

        Each of the parties to this Agreement shall be entitled to enforce its rights under this Agreement specifically, to recover damages and costs (including
reasonable attorney's fees) caused by any breach of any provision of this Agreement and to exercise all other rights existing in its favor. The parties hereto agree and acknowledge that money damages
would not be an adequate remedy for any breach of the provisions of this Agreement and that any party may in its sole discretion apply to any court of law or equity of competent jurisdiction (without
posting any bond or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent any violations of the provisions of this Agreement. Nothing in this
Section 13 is intended to prevent the parties from raising any and all defenses with respect to the necessity for, and scope of, such injunctive or equitable relief. 

14.   RESOLUTION OF DISPUTES.  

        Subject to the provisions of Section 13 regarding specific performance and/or injunctive relief, any disputes arising under or in connection with this
Agreement shall be resolved by binding arbitration, to be held in Philadelphia, Pennsylvania, in each case in accordance with the rules and procedures of the American Arbitration Association. Judgment
upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. 

15.   EXPENSES.  

        (a)   Subject
to the provisions of Sections 13 and 14, in the event any party hereto (for the purposes of this Section 15, the "Aggrieved Party") seeks a judicial
adjudication of, or an award in arbitration to enforce, the Aggrieved Party's rights under, or to recover damages for the breach of, this Agreement, the Aggrieved Party shall be entitled to recover
from the other party or parties, as the case may be, and shall be indemnified by the other party or parties, as the case may be, against, any and all costs actually and reasonably incurred by the
Aggrieved Party in such judicial adjudication or arbitration, including, without limitation, reasonable attorney's fees, but only if the Aggrieved Party prevails in such proceeding. 

16.   ASSIGNABILITY; BINDING NATURE.  

        This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors, heirs (in the case of the Executive) and assigns.
Rights or obligations of the Company under this Agreement may be assigned or transferred by the Company pursuant to a merger or consolidation in which the Company is not the continuing entity, or the
sale or liquidation of all or substantially all of the assets of the Company, provided that the assignee or transferee is the successor to all or substantially all of the assets of the Company and
such assignee or transferee assumes the liabilities, obligations and duties of the Company, as contained in this Agreement, either contractually or as a matter of law. The Company further agrees that,
in the event of a sale of assets or liquidation as described in the preceding sentence, it shall take whatever action it reasonably can in order to cause such assignee or transferee to expressly
assume the liabilities, obligations and duties of the Company 

7

 

hereunder.
No rights or obligations of the Executive under this Agreement may be assigned or transferred by the Executive other than his rights to compensation and benefits, which may be transferred
only by will or operation of law. 

17.   REPRESENTATIONS AND WARRANTIES.  

        (a)   The
Company represents and warrants that it has all requisite corporate power and authority to enter into this Agreement and that the performance by the Company of its
obligations under this Agreement will not violate any agreement to which it is a party. 

        (b)   The
Executive represents that the execution of this Agreement by the Executive and the performance by him of his obligations hereunder will not violate any agreement to
which he is a party. 

        (c)   The
Executive hereby represents and warrants that he is not bound by the terms of any agreement with any previous employer or other party to refrain from competing,
directly or indirectly, with the business of such previous employer or any other party. The Executive further represents and warrants that Executive's performance of all the terms of this Agreement
and as an employee of the Company does not and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired by the Executive in confidence or in trust prior
to Executive's employment with the Company. The Executive will not disclose to the Company or induce the Company to use any confidential or proprietary information or material belonging to any
previous employer or others. The Executive will not hereafter grant anyone any rights inconsistent with the terms of this Agreement. 

18.   ENTIRE AGREEMENT.  

        This Agreement and the Exhibit attached hereto and incorporated herein by reference contain the entire understanding and agreement between the parties concerning
the subject matter hereof and thereof and supersede all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the parties with respect thereto.
This is an integrated document. 

19.   AMENDMENT OR WAIVER.  

        No provision in this Agreement may be amended unless such amendment is agreed to in writing and signed by the Executive and an authorized officer of the Company,
other than the Executive. No waiver by either party of any breach by the other party of any condition or provision contained in this Agreement to be performed by such other party shall be deemed a
waiver of a similar or dissimilar condition or provision at the same or any prior or subsequent time. Any such waiver must be in writing and signed by the Executive or an authorized officer of the
Company, other than the Executive, as the case may be. 

20.   SEVERABILITY.  

        In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining
provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law so as to achieve the purposes of this Agreement. 

21.   SURVIVORSHIP.  

        Except as otherwise expressly set forth in this Agreement, the respective rights and obligations of the parties hereunder shall survive any termination of the
Executive's employment. This Agreement itself (as distinguished from the Executive's employment) may not be terminated by either party without the written consent of the other party. 

8

 

22.   REFERENCES.  

        In the event of the Executive's death or a judicial determination of his incompetence, reference in this Agreement to the Executive shall be deemed, where
appropriate, to refer to his beneficiary, estate or other legal representative. 

23.   GOVERNING LAW/JURISDICTION.  

        This Agreement shall be governed in accordance with the laws of the State of Delaware without reference to principles of conflict of laws. 

24.   NOTICES.  

        All notices and other communications required or permitted hereunder shall be in writing and shall be deemed given when (a) delivered personally,
(b) sent by certified or registered mail, postage prepaid, return receipt requested or (c) delivered by overnight courier (provided that a written acknowledgment of receipt is obtained
by the overnight courier) to the party concerned at the address indicated below or to such changed address as such party may subsequently give such notice of: 

	If to the Company:	 	Viasys Healthcare Inc.

227 Washington Street, Suite 200

Conshohocken, PA 19428
	

Copy to:	
 	

	

If to Executive:	
 	

Mahboob Raja

25.   HEADINGS.  

        The headings of the sections contained in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any
provision of this Agreement. 

26.   COUNTERPARTS.  

        This Agreement may be executed in counterparts. 

[Remainder
of Page Intentionally Left Blank] 

9

 

        IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the restatement set forth above. 

	 	 	VIASYS HEALTHCARE INC.
	

 	
 	

By:	

/s/  RANDY THURMAN      
	 	 	 	
 Name:  Randy Thurman

Title:    Chief Executive Officer
	

 	
 	

 	

/s/  MAHBOOB RAJA      
	 	 	 	
 Mahboob Raja

10

QuickLinks

VIASYS HEALTHCARE INC. EMPLOYMENT AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}]]