Document:

Employment Letter Agreement

 EXHIBIT 10.14 
  
 BRODER BROS., CO. 
 45555 Port Street 
 Plymouth, Michigan 48170 
  

October 7, 2003 
  
 Howard Morof 
 35360 Stratton Hill Ct. 
 Farmington Hills, MI 48331 
  
 Re: Employment Terms 
  
 Dear Howard: 
  
 The following letter sets forth the agreement of you and Broder Bros., Co. (the “Company”) with regard to your continued
employment with the Company following the acquisition by the Company of Alpha Shirt Holdings, Inc. and its subsidiaries (“Alpha”). In connection with the closing of the acquisition of Alpha (the “Closing”), the parties have
agreed to the following: 
  

	 	•	Upon the Closing, you shall have received a bonus of $75,000. Upon execution of this letter, you hereby acknowledge receipt of this payment. 

  

	 	•	The Company acknowledges that as of the Closing, you will have the right to treat your existing Employment Agreement dated May 3, 2000 (the “Employment Agreement”) as
terminated for Good Reason. In lieu of immediately exercising such rights as exist under the Employment Agreement, you have agreed to the following (defined terms used herein have the meanings ascribed to them in the Employment Agreement):

  

	 	•	You will continue your employment with the Company through March 31, 2004 (the “Retention Period”) in order to assist with the orderly integration of Alpha with the
Company.. 

  

	 	•	At Closing you will relinquish your title as Chief Financial Officer and you will serve in such capacity as requested by the Company’s Board of Directors and Chief Financial
Officer commensurate with your skills and talents; provided, however, you shall continue to work out of the Company’s Plymouth, Michigan location throughout the Retention Period. You shall have the title Senior Vice President throughout the
Retention Period. 

  

	 	•	During the Retention Period you will receive an annual Base Salary of not less than $250,000, Company health and welfare benefits no less valuable than those you received prior to
the date hereof (subject to any modification implemented by the Company that affects all senior executives participating in such benefits), and a bonus with respect to the year 2003 performance of the Company consistent with that paid to other
senior executives of the Company, each payable in accordance with the provisions of Section 3 of the Employment Agreement; 

	 	•	On March 31, 2004, provided you have continued in the employ of the Company, or if sooner, upon your death, Disability or termination by the Company without Cause, you will be paid
a cash bonus of $100,000; provided, however, that upon the expiration of the Retention Period or in the event your employment with the Company is terminated without Cause, you shall execute a general release in favor of the Company,
its affiliates and shareholders in a form satisfactory to the Company. 

  

	 	•	Upon termination of employment(other than a termination for Cause), you will be treated as having terminated employment for Good Reason, and will be entitled to receive severance
payments in accordance with paragraph 4(b) of the Employment Agreement; provided, however, that for this purpose your annual Base Salary and pro-rated bonus shall be deemed to total $350,000; and provided further, that in the event you
voluntary terminate employment (absent death or Disability), you shall have given 30 days written notice of such termination to the CEO of the Company. As a condition to the Company’s obligations (if any) to make such severance payments, you
shall execute a general release in favor of the Company, its affiliates and shareholders in a form satisfactory to the Company. 

  

	 	•	Upon termination of your services with the Company, the Company will reimburse you for reasonable out-of-pocket costs incurred for outplacement services with Drake Beam (or a
comparable company) for six (6) months following the cessation of your employment. 

  

	 	•	Upon the termination of your employment with the Company, any vested stock or stock options you hold at the time of such termination will be repurchased by either the Company or
Bain Capital, LLC or its affiliated entities at the fair value of such stock or stock options at the time of termination. Such purchase shall occur within 30 days of such termination by delivery of immediately available funds.

  

	 	•	The Company will pay reasonable legal expenses of your counsel (not to exceed $5,000) in connection with the execution of this letter agreement subject to reasonable documentation.

  
 Upon Closing, the Employment Agreement with the Company shall be
deemed amended by this letter agreement. To the extent that the terms of this letter are contrary to, or inconsistent with the terms of your Employment Agreement, the terms of this letter agreement shall govern. In light of the changing nature of
your role with the Company, the definition of “Good Reason” shall exclude the circumstances described in Section 4(g)(i) of the Employment Agreement. 
  

 2 

 Please acknowledge your acceptance of, and agreement to, the terms of this letter agreement by signing where indicated
below. 
  

	 Sincerely,

	
	 BRODER BROS., CO.

		
	 By:
	 	 /s/    EDWARD CONARD

		
	 Its:
	 	  

  
 ACCEPTED AND AGREED as of

 October 7, 2003 
  

	 /s/    HOWARD MOROF

	Howard Morof

  

 3Amendment #1 to Amendedand Restated Distribution Agreement

 Exhibit 10.41 
  
 AMENDMENT #1 TO AMENDED AND RESTATED 
 DISTRIBUTION AGREEMENT 
  
 This AMENDMENT #1 TO
AMENDED AND RESTATED DISTRIBUTION AGREEMENT, effective as of October 23, 2003 (the “Amendment”), is by and between PHARMANETICS, INC., a corporation organized and existing under the laws of North Carolina, with its principal offices
located at 9401 Globe Center Drive, Suite 140, Morrisville, North Carolina 27560 (“PharmaNetics”), and BAYER CORPORATION, an Indiana corporation, acting through its Diagnostics Division, with an office at 63 North Street, Medfield,
Massachusetts (“Bayer Diagnostics”). 
  
 WHEREAS,
PharmaNetics and Bayer Diagnostics have entered into that certain Amended and Restated Distribution Agreement, effective as of April 23, 2001 (the “Distribution Agreement”); and 
  
 WHEREAS, PharmaNetics and Bayer each deem it necessary and advisable to amend certain provisions of the Distribution
Agreement as set forth in this Amendment; 
  
 NOW, THEREFORE, in
consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows. 
  
 1. Except as defined herein, all capitalized terms and shall have the
meanings set forth in the Distribution Agreement. 
  
 2. Section
11.1 is hereby amended and restated in its entirety as follows. 
  
 “11.1 Term. The initial term of this Agreement shall be from the Effective Date until December 31, 2004, unless terminated earlier under the provisions of this Agreement; provided however, PharmaNetics shall be entitled to
terminate this agreement on ninety days advance written notice in the event that the Board of Directors of PharmaNetics determines to conclude and eliminate its routine test manufacturing operations. In the event that Bayer has not entered into an
agreement to acquire the routine card business from PharmaNetics on or before March 31, 2004, Bayer and PharmaNetics will negotiate in good faith a process to transition distribution back to PharmaNetics or its designee effective January 1, 2005
provided such process does not unreasonably disrupt Bayer’s distribution activities and its relationships with its customers. 

 [    ] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED SEPARATELY WITH THE SEC. 

 3. Sections 7.1 and 7.2 are hereby amended and restated in their entirety as follows. 
  
 “7.1 Purchase Price. Prices and payment terms and conditions for
Products shall be as set forth in Schedule 7. 
  
 7.2
Adjustments to Purchase Price. Not more frequently than once in any twelve (12)-month period, PharmaNetics may increase the purchase prices for the Products, which are set forth in Schedule 7. Each Product purchase price may be increased by a
percentage not to exceed the most recently reported annual percentage increase in the consumer price index (as reported by the United Stated Bureau of Labor and Statistics) as of the date of the Product price increase.” 
  
 4. Schedule 7 attached to this Amendment hereby replaces Schedule 7 of the
Distribution Agreement. 
  
 5. The Distribution Agreement, as
amended by this Amendment, is hereby ratified and affirmed in all respects, and shall continue in full force and effect to the extent of and in accordance with its terms. 
  
 6. This Amendment may be executed in counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument. 
  
 7. This
Amendment shall be governed by and construed in accordance with the internal laws of the State of North Carolina without reference to conflicts of law provisions thereof. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

  

	 PHARMANETICS, INC.
	 	 	 	 BAYER CORPORATION

				
	/s/ John P. Funkhouser	 	 	 	By:	 	/s/ Frances L. Tuttle
	
	 	 	 	 	

	John Funkhouser	 	 	 	 	 	(signature)
	President	 	 	 	 	 	 
	 	 	 	 	 Name:
	 	Frances L. Tuttle
	 	 	 	 	 	

	 	 	 	 	 	 	(print name)
	 	 	 	 	 	 	 
	 	 	 	 	 Title:
	 	Senior VP of New Patient Testing
	 	 	 	 	 	

 Schedule 7 
  
 PAYMENTS FOR PRODUCTS 
  

	7.1	Purchase Price. Except as provided otherwise herein, Bayer or an affiliate of Bayer will pay PharmaNetics a purchase price per Routine Product (the “Card Purchase
Price”) according to Section 7.2, except that the price for HTT and PRT Cards is US$[            ] Except as otherwise provided herein, Bayer or an affiliate of Bayer will pay
PharmaNetics a purchase price per Instrument (the “Instrument Purchase Price”) of US$[            ]. Bayer or an affiliate of Bayer shall pay PharmaNetics a purchase price per
Accent Instrument (the “Accent Instrument Purchase Price”) of US$[            ]. The Parties shall negotiate in good faith the purchase price for Specialty Products. The initial
price at which PharmaNetics will sell to Bayer products other than Instruments, Accent Instruments and Routine Products are as follows: 

  

	 Products

	 	 Catalog #

	 	 Initial Sales Price To Bayer

	 Control
	 	 	 	$ [             ] each
	 Service Contracts
	 	 	 	$ [             ] each
	 Sample
	 	 	 	$ [             ] per Card

  

	7.2	Adjustments to the Purchase Price. The Card Purchase Price shall be subject to adjustment as set forth below based on PharmaNetics Routine Product test card volume.

  

	 Annualized
 PharmaNetics Card Volume

	 	 Monthly
 PharmaNetics Card Volume
 Range

	 	 Card Purchase
 Price

	 0 to [             ] cards
	 	             0 to [             ] cards	 	$[             ]
	 [             ] to
[             ] cards
	 	[             ] to [             ] cards	 	$[             ]
	 [             ] to
[             ] cards
	 	[             ] to [             ] cards	 	$[             ]
	 [             ] to [
            ] cards
	 	[             ] to [             ] cards	 	$[             ]
	 [             ] to
[             ] cards
	 	[             ] to [             ] cards	 	$[             ]

 [    ] CONFIDENTIAL TREATMENT
REQUESTED; CERTAIN INFORMATION OMITTED AND FILED SEPARATELY WITH THE SEC. 

 For purposes of adjusting the Card Purchase Price, test card volume shall include volume from all revenue sources for
sales of test cards by PharmaNetics (“PharmaNetics Card Volume”). 
  
 The Card Purchase Price shall initially be US$[            ]. If in any three (3) consecutive months during the term of this Agreement, the PharmaNetics Card Volume in each such
month (the “Monthly PharmaNetics Card Volume”) exceeds the Monthly PharmaNetics Card Volume Range shown above for the Card Purchase Price then in effect, the Card Purchase Price for purchases subsequent to that three (3) month period shall
be adjusted as shown above to reflect the increase in Monthly PharmaNetics Card Volume, and such adjustment price shall remain in effect until at the end of any month, either (a) Monthly PharmaNetics Card Volume for each of the preceding three (3)
consecutive months (including that month) exceeds the Monthly PharmaNetics Card Volume Range shown above for the Card Purchase Price then in effect or (b) Monthly PharmaNetics Card Volume for that month falls below the Monthly PharmaNetics Card
Volume Range shown above for the Card Purchase Price then in effect, and in each case, the Card Purchase Price shall be adjusted up or down accordingly. For example, if Monthly PharmaNetics Card Volume increases to between
[            ] and [            ] cards each month and Monthly PharmaNetics Card Volume is maintained at this level for three (3)
consecutive months, the Card Purchase Price for purchases subsequent to that three (3) month period would be adjusted down to $[            ]. Such adjusted price would remain in effect
until either (a) Monthly PharmaNetics Card Volume exceeds [            ] cards in each of any three (3) consecutive months, in which case the Card Purchase Price would be adjusted downward,
or (b) Monthly PharmaNetics Card Volume falls below [            ] cards in any month, in which case the Card Purchase Price would be adjusted upward to the Card Purchase Price payable for
the actual Monthly PharmaNetics Card Volume achieved. 
  

	(b)	Samples, etc. Upon Bayer’s request, during each calendar year in which this Agreement is in effect, PharmaNetics shall supply an estimated
[        ] (with up to [            ] available) Routine and New Product test cards for training purposes, such cards to be priced at a
[    ]% discount on the Card Purchase Price then in effect. Parties will jointly establish sales processes and evaluation protocols which are consistent with marketing objectives for each country in which Specialty products are
launched. The quantity and price of samples will be mutually agreed when the evaluation protocols and market plans have been established. Products provided in accordance with this Section 7.2(b) will be clearly marked as samples not for patient
evaluation purposes. 

 [    ] CONFIDENTIAL TREATMENT
REQUESTED; CERTAIN INFORMATION OMITTED AND FILED SEPARATELY WITH THE SEC.

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