Document:

exv10w1

 

Exhibit 10.1

METHODE ELECTRONICS, INC.

MANAGERIAL BONUS AND MATCHING BONUS PLAN

(As Restated Effective May 1, 2004)

     The purpose of the Plan is to have key employees participate in profits of the Company. The Plan
rewards these key employees with additional compensation based on actual sales and profit
performance compared to budget and on achieving individual objectives established at the beginning
of the fiscal year for the segment of the Company for which they have responsibility, provided they
meet certain eligibility requirements.

     The current cash bonus is paid as soon as practicable following the fiscal quarter in order to
recognize and reward performance in a timely fashion.

     In addition to the quarterly cash bonus based upon current performance, the Company has established
a matching bonus plan. The compensation committee of the board of directors will designate those
employees eligible to participate in this matching bonus plan. In the future, the participant may
qualify for a matching bonus which will be considered as earned 36 months after the current
quarterly bonus provided the participant is still employed by Methode at that time, and provided
he/she has performed well in that 36-month period. A participant will be deemed to be employed by
Methode 36 months after the current quarterly bonus if: (i) continuously during such 36-month
period the participant was either employed by Methode or serving as a director of Methode board of
directors; or (ii) the Participant terminated employment or service as a director of Methode during
such 36-month period on account of death, disability, or retirement after attaining age 65. In the
event the participant is no longer employed by Methode 36 months after the current quarterly bonus,
or is not performing well if still employed, the participant will not qualify for the matching
bonus.

     The objective of the matching bonus is to motivate the participant to plan and work for long-term
growth and profitability of Methode and diminish the incentive to act for only short-term earnings
at the expense of future periods.

     For the first three quarters of the year, we withhold 15% of the bonus due until the numbers have
been reviewed and verified by audit at which time the holdback is included with the fourth quarter
bonus check.

     It should be noted that the managerial bonus and matching bonus plan is not a substitute for the
normal salary review procedures and other recognition of progress in the form of increased
responsibility and base compensation.Stereotaxis, Inc.; Exhibit 10.1 to Form 8K

Exhibit 10.1

SETTLEMENT AGREEMENT  

        This
Settlement Agreement (the “Settlement Agreement”) is entered into and made
effective as of June 30, 2005, (the “Settlement Date”) by and between the
University of Virginia Patent Foundation (“UVAPF”), a not-for-profit corporation
of the Commonwealth of Virginia having its principal offices at 250 W. Main Street,
Charlottesville, Virginia, 22902; and Stereotaxis, Inc. (“Stereotaxis”), a
corporation duly organized under the laws of the State of Delaware, having its principal
offices at 4041 Forest Park Avenue, St. Louis, MO, 63108. 

W I T N E S S E T H 

        WHEREAS,
pursuant to the Amended License Agreement between UVAPF and Stereotaxis of June 30, 1999
(the “License”), UVAPF has licensed Stereotaxis under certain of its Patent
Rights and other intellectual property rights in the field of magnetic guiding of an
element through the body; 

        WHEREAS,
a disagreement has arisen between the parties regarding the existence of an obligation to
pay royalties under the License on sales of certain products that use magnetic fields to
guide Catheters (such products hereinafter referred to as “Products”) in the
Non-translational Cardiovascular Field (as such term is defined below); 

        WHEREAS,
Stereotaxis and UVAPF wish to settle their disagreement by UVAPF agreeing to relinquish
its claim to royalties based on sales of Products in the Non-translational
Cardiovascular Field, in consideration for Stereotaxis paying a settlement fee; 

        NOW,
THEREFORE, in consideration of the premises set forth above and the mutual covenants set
forth below, the parties hereto agree as follows: 

     1.        
          For purposes of this Settlement Agreement, “Non-translational
          Cardiovascular Field” shall mean the magnetic guiding of a mechanically
          advanced Catheter through the lumen of a blood vessel or other open chamber or
          passageway in the body, such as, for example, the heart or the gastrointestinal
          tract, by magnetic deflection of the tip of said Catheter in order to point the
          tip in the direction of desired movement of the Catheter, by orientating one or
          more permanent magnets outside the body in relationship to the location of said
          tip, in order that a non-magnetic mechanical force applied to the end of the
          Catheter external to the patient, or applied to a guidewire inserted into the
          Catheter’s lumen and extending into or through that portion of the Catheter
          that is outside the body, 

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     will cause the Catheter to enter or navigate within or
          through the desired blood vessel or open chamber or passageway in the body, the
          magnetic field providing substantially no driving, propelling, advancing,
          translating or other force that moves the Catheter along its longitudinal axis. 

     2.        
          For purposes of this Settlement Agreement, “Catheter” shall mean a
          flexible elongated medical device having one end remaining at all times external
          to the patient’s body, for insertion into a blood vessel or other open
          chamber or passageway in the body, thereby permitting the delivery of diagnostic
          or therapeutic devices or activity or of other agents to locations in such blood
          vessel or other open chamber or passageway in the body. 

     3.        
          Notwithstanding anything in the License to the contrary, UVAPF hereby
          relinquishes all claims against Stereotaxis, its licensees, sublicensees and
          assignees for royalties or for injunctive relief under the License or otherwise
          for the making, having made, importation, use, lease or sale of Products in the
          Non-translational Cardiovascular Field (however, UVAPF reserves its right to make
          any other claim as required to enforce surviving rights that it may have under the License
          with respect to such Products, including, but not limited to a claim to the
          right to indemnification under paragraph 13.06 of the License). Furthermore, Stereotaxis shall have no obligation
          under Articles 3 or 4 of the License at any time in the future to report or pay
          a royalty based on the sale of Products in the Non-translational
          Cardiovascular Field. The provisions of this paragraph shall survive any
          termination of the License. The parties acknowledge that this Settlement Agreement shall not affect Stereotaxis’
          royalty obligations set forth in Articles 3 and 4 of the License
          with respect to all Commercial Sales outside the Non-translational
          Cardiovascular Field. For avoidance of doubt, Catheters are not Products
          hereunder (including those that may be covered by the following Licensed
          Patents: U.S. 5,779,694; U.S. 5,707,335; U.S. 6,834,201; and U.S. application
          10/985,340), nor are any products that are especially made or especially adapted
          for use with such Catheters covered by such enumerated Licensed Patents (and
          therefore the sale of which would create infringement liabilities under 35 U.S.C
          271(c) as an act of contributory infringement). Further, operating theaters and
          methods of using same, as claimed in U.S. 6,298,259, are not Products
          hereunder. 

     4.        
          In consideration for the provisions of Section 3 hereof Stereotaxis shall pay to
          UVAPF a one-time cash settlement payment of three million six hundred fifty thousand dollars (U.S. $3,650,000)
          within five (5) business days of the receipt of a copy of this Settlement Agreement that has
          been executed on behalf of UVAPF. In the event that such payment is not timely
          received by UVAPF, this Settlement Agreement shall be rendered null, void, and
          without effect. The parties hereby acknowledge that all credits, withholdings
          and reductions of royalties provided for in the License, as specified in
          paragraphs 3.01(g), 7.05, and 7.08 of the License (respectively), shall not
          apply to Commercial Sales outside the Non-translational Cardiovascular Field, to
          the extent such credits, withholdings and reductions result from the
          commercialization of products (either

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      by Stereotaxis and its sublicensees or
          assignees, or by third parties, as applicable) within the Non-translational
          Cardiovascular Field. 

     5.        
          Each party hereto, and their predecessors, successors, parents, subsidiaries,
          affiliates, assigns, agents, directors, officers and employees hereby fully and
          forever irrevocably and unconditionally release, acquit and discharge the other
          party and its affiliates, predecessors, successors, assigns, agents, servants,
          distributors, suppliers, employees, officers, directors, buyers, vendors,
          importers, users and direct and indirect customers, and the University of
          Virginia from any and all actions, causes of action, claims or demands,
          liabilities, losses, damages, attorney fees, court costs, or any other form of
          claim or compensation based on or arising out of any acts occurring or amounts
          accruing, before the Settlement Date, whether known or unknown, that derive from
          the making, having made, importation, use, lease or sale of Stereotaxis’
          Products in the Non-translational Cardiovascular Field, namely the NiobeTM
          system and the TelstarTM system, or that derive from Stereotaxis’
          research activities that preceded same (whether
          such claim is based on or arises out of (a) an obligation under the License or
          (b) the Patent Rights). 

     6.        
          This Settlement Agreement shall not affect or alter the rights and obligations
          of Stereotaxis under the License with respect to Licensed Products that are not
          Products or that are outside the Non-translational Cardiovascular Field.
          Furthermore, this Settlement Agreement shall not affect or alter any rights and
          obligations of Stereotaxis under the License with respect to Products in the
          Non-translational Cardiovascular Field (other than any obligation to report or
          pay royalties under Articles 3 and 4 of the License with respect to such
          Products), which rights and obligations shall survive any termination of the
          License . 

     7.        
          All other terms and conditions of the License remain in full force and effect
          for the term of the License. 

     8.        
          This Settlement Agreement shall be assignable by Stereotaxis, but only in
          connection with and accompanying assignment of the License. 

     9.        
Each party represents and warrants that it has the authority to enter into this Agreement and to be bound by the terms and
conditions thereof.

     10.        
All terms capitalized and not defined herein shall have the meaning set forth in the Agreement.

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        IN
WITNESS WHEREOF, Stereotaxis and UVAPF hereto have executed this Settlement Agreement in
duplicate originals by their duly authorized officers or representatives. 

AGREED AND ACCEPTED 

For:    UVA Patent Foundation

	  	/s/ R. MacWright 	  	6/30/05 	  
	
 	  	
 	 

	Name: 	Robert MacWright 	  	Date: 	  
	Title: 	Executive Director and CEO 	  	 	  

	  	/s/ Erik L. Hewlett 	  	7 July 2005	  
	
 	  	
 	 

	Name: 	Erik Hewlett 	  	Date: 	  
	Title: 	Chairman 	  	 	  

For:    Stereotaxis, Inc.

	  	/s/ Bevil Hogg 	  	8 July 2005	  
	
 	  	
 	 

	Name: 	Bevil Hogg	  	Date: 	  
	Title: 	President and CEO

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