Document:

2001 Stock Incentive Plan

 Exhibit 10.1 
  
 NMT Medical, Inc. 
  
 2001 STOCK INCENTIVE PLAN 
  
 1. Purpose 
  
 The purpose of this 2001 Stock Incentive Plan (the “Plan”) of NMT Medical, Inc., a Delaware corporation (the “Company”), is to advance
the interests of the Company’s stockholders by enhancing the Company’s ability to attract, retain and motivate persons who make (or are expected to make) important contributions to the Company by providing such persons with equity
ownership opportunities and performance-based incentives and thereby better aligning the interests of such persons with those of the Company’s stockholders. Except where the context otherwise requires, the term “Company” shall include
any of the Company’s present or future parent or subsidiary corporations as defined in Sections 424(e) or (f) of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”) and any other
business venture (including, without limitation, joint venture or limited liability company) in which the Company has a significant interest, as determined by the Board of Directors of the Company (the “Board”). 
  
 2. Eligibility 
  
 All of the Company’s employees, officers, directors, consultants and
advisors (and any individuals who have accepted an offer for employment) are eligible to be granted options or restricted stock awards (each, an “Award”) under the Plan. Each person who has been granted an Award under the Plan shall be
deemed a “Participant”. 
  
 3.
Administration and Delegation 
  
 (a) Administration by
Board of Directors. The Plan will be administered by the Board. The Board shall have authority to grant Awards and to adopt, amend and repeal such administrative rules, guidelines and practices relating to the Plan as it shall deem advisable.
The Board may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem expedient to carry the Plan into effect and it shall be the sole and final judge of such
expediency. All decisions by the Board shall be made in the Board’s sole discretion and shall be final and binding on all persons having or claiming any interest in the Plan or in any Award. No director or person acting pursuant to the
authority delegated by the Board shall be liable for any action or determination relating to or under the Plan made in good faith. 
  
 (b) Appointment of Committees. To the extent permitted by applicable law, the Board may delegate any or all of its powers under the Plan to one or
more committees or subcommittees of the Board (a “Committee”). All references in the Plan to the “Board” shall mean the Board or a Committee of the Board to the extent that the Board’s powers or authority under the Plan have
been delegated to such Committee. 

 4. Stock Available for Awards 
  
 (a) Number of Shares. Subject to adjustment under Section 7, Awards
may be made under the Plan for up to 500,000 shares of common stock, $.001 par value per share, of the Company (the “Common Stock”). If any Award expires or is terminated, surrendered or canceled without having been fully exercised or is
forfeited in whole or in part (including as the result of shares of Common Stock subject to such Award being repurchased by the Company at the original issuance price pursuant to a contractual repurchase right) or results in any Common Stock not
being issued, the unused Common Stock covered by such Award shall again be available for the grant of Awards under the Plan, subject, however, in the case of Incentive Stock Options (as hereinafter defined), to any limitations under the Code. Shares
issued under the Plan may consist in whole or in part of authorized but unissued shares or treasury shares. 
  
 (b) Per-Participant Limit. Subject to adjustment under Section 7, the maximum number of shares of Common Stock with respect to which Awards may be
granted to any Participant under the Plan shall be 200,000 per calendar year. The per-Participant limit described in this Section 4(b) shall be construed and applied consistently with Section 162(m) of the Code (“Section 162(m)”).

  
 5. Stock Options 
  
 (a) General. The Board may grant options to purchase Common Stock
(each, an “Option”) and determine the number of shares of Common Stock to be covered by each Option, the exercise price of each Option and the conditions and limitations applicable to the exercise of each Option, including conditions
relating to applicable federal or state securities laws, as it considers necessary or advisable. An Option which is not intended to be an Incentive Stock Option (as hereinafter defined) shall be designated a “Nonstatutory Stock Option”.

  
 (b) Incentive Stock Options. An Option that the Board
intends to be an “incentive stock option” as defined in Section 422 of the Code (an “Incentive Stock Option”) shall only be granted to employees of the Company and shall be subject to and shall be construed consistently with the
requirements of Section 422 of the Code. The Company shall have no liability to a Participant, or any other party, if an Option (or any part thereof) which is intended to be an Incentive Stock Option is not an Incentive Stock Option. 
  
 (c) Exercise Price. The Board shall establish the exercise price at
the time each Option is granted and specify it in the applicable option agreement. 
  
 (d) Duration of Options. Each Option shall be exercisable at such times and subject to such terms and conditions as the Board may specify in the applicable option agreement. 
  
 (e) Exercise of Option. Options may be exercised by delivery to the
Company of a written notice of exercise signed by the proper person or by any other form of notice (including electronic notice) approved by the Board together with payment in full as specified in Section 5(f) for the number of shares for which the
Option is exercised. 
  

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 (f) Payment Upon Exercise. Common Stock purchased upon the exercise of an Option granted under the
Plan shall be paid for as follows: 
  
 (1) in cash or by check,
payable to the order of the Company; 
  
 (2) except as the Board
may, in its sole discretion, otherwise provide in an option agreement, by (i) delivery of an irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price and any
required tax withholding or (ii) delivery by the Participant to the Company of a copy of irrevocable and unconditional instructions to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price and
any required tax withholding; 
  
 (3) when the Common Stock is
registered under the Securities Exchange Act of 1934 (the “Exchange Act”), by delivery of shares of Common Stock owned by the Participant valued at their fair market value as determined by (or in a manner approved by) the Board in good
faith (“Fair Market Value”), provided (i) such method of payment is then permitted under applicable law and (ii) such Common Stock, if acquired directly from the Company was owned by the Participant at least six months prior to such
delivery; 
  
 (4) to the extent permitted by the Board, in its
sole discretion by (i) delivery of a promissory note of the Participant to the Company on terms determined by the Board, or (ii) payment of such other lawful consideration as the Board may determine; or 
  
 (5) by any combination of the above permitted forms of payment. 

 
 (g) Substitute Options. In connection with a merger or
consolidation of an entity with the Company or the acquisition by the Company of property or stock of an entity, the Board may grant Options in substitution for any options or other stock or stock-based awards granted by such entity or an affiliate
thereof. Substitute Options may be granted on such terms as the Board deems appropriate in the circumstances, notwithstanding any limitations on Options contained in the other sections of this Section 5 or in Section 2. 
  
 6. Restricted Stock. 
  
 (a) Grants. The Board may grant Awards entitling recipients to
acquire shares of Common Stock, subject to the right of the Company to repurchase all or part of such shares at their issue price or other stated or formula price (or to require forfeiture of such shares if issued at no cost) from the recipient in
the event that conditions specified by the Board in the applicable Award are not satisfied prior to the end of the applicable restriction period or periods established by the Board for such Award (each, a “Restricted Stock Award”).

  
 (b) Terms and Conditions. The Board shall determine the
terms and conditions of any such Restricted Stock Award, including the conditions for repurchase (or forfeiture) and the issue price, if any. 
  

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 (c) Stock Certificates. Any stock certificates issued in respect of a Restricted Stock Award shall
be registered in the name of the Participant and, unless otherwise determined by the Board, deposited by the Participant, together with a stock power endorsed in blank, with the Company (or its designee). At the expiration of the applicable
restriction periods, the Company (or such designee) shall deliver the certificates no longer subject to such restrictions to the Participant or if the Participant has died, to the beneficiary designated, in a manner determined by the Board, by a
Participant to receive amounts due or exercise rights of the Participant in the event of the Participant’s death (the “Designated Beneficiary”). In the absence of an effective designation by a Participant, Designated Beneficiary shall
mean the Participant’s estate. 
  
 7.
Adjustments for Changes in Common Stock and Certain Other Events 
  
 (a) Changes in Capitalization. In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or other similar change in
capitalization or event, or any distribution to holders of Common Stock other than a normal cash dividend, (i) the number and class of securities available under this Plan, (ii) the per-Participant limit set forth in Section 4(b), (iii) the number
and class of securities and exercise price per share subject to each outstanding Option, and (iv) the repurchase price per share subject to each outstanding Restricted Stock Award shall be appropriately adjusted by the Company (or substituted Awards
may be made, if applicable) to the extent the Board shall determine, in good faith, that such an adjustment (or substitution) is necessary and appropriate. If this Section 7(a) applies and Section 7(c) also applies to any event, Section 7(c) shall
be applicable to such event, and this Section 7(a) shall not be applicable. 
  
 (b) Liquidation or Dissolution. In the event of a proposed liquidation or dissolution of the Company, the Board shall upon written notice to the Participants provide that all then unexercised Options will (i)
become exercisable in full as of a specified time at least 10 business days prior to the effective date of such liquidation or dissolution and (ii) terminate effective upon such liquidation or dissolution, except to the extent exercised before such
effective date. The Board may specify the effect of a liquidation or dissolution on any Restricted Stock Award granted under the Plan at the time of the grant. 
  

(c) Reorganization Events 
  
 (1) Definition. A “Reorganization Event” shall mean: (a) any merger or consolidation of the Company with or into another entity as a
result of which all of the Common Stock of the Company is converted into or exchanged for the right to receive cash, securities or other property or (b) any exchange of all of the Common Stock of the Company for cash, securities or other property
pursuant to a share exchange transaction. 
  
 (2) Consequences
of a Reorganization Event on Options. Upon the occurrence of a Reorganization Event, or the execution by the Company of any agreement with respect to a Reorganization Event, the Board shall provide that all outstanding Options shall be assumed,
or equivalent options shall be substituted, by the acquiring or succeeding corporation (or an affiliate thereof). For purposes hereof, an Option shall be considered to be assumed if, 
  

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 following consummation of the Reorganization Event, the Option confers the right to purchase, for each share of Common
Stock subject to the Option immediately prior to the consummation of the Reorganization Event, the consideration (whether cash, securities or other property) received as a result of the Reorganization Event by holders of Common Stock for each share
of Common Stock held immediately prior to the consummation of the Reorganization Event (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock);
provided, however, that if the consideration received as a result of the Reorganization Event is not solely common stock of the acquiring or succeeding corporation (or an affiliate thereof), the Company may, with the consent of the acquiring or
succeeding corporation, provide for the consideration to be received upon the exercise of Options to consist solely of common stock of the acquiring or succeeding corporation (or an affiliate thereof) equivalent in fair market value to the per share
consideration received by holders of outstanding shares of Common Stock as a result of the Reorganization Event. 
  
 Notwithstanding the foregoing, if the acquiring or succeeding corporation (or an affiliate thereof) does not agree to assume, or substitute for, such
Options, then the Board shall, upon written notice to the Participants, provide that all then unexercised Options will become exercisable in full as of a specified time prior to the Reorganization Event and will terminate immediately prior to the
consummation of such Reorganization Event, except to the extent exercised by the Participants before the consummation of such Reorganization Event; provided, however, that in the event of a Reorganization Event under the terms of which holders of
Common Stock will receive upon consummation thereof a cash payment for each share of Common Stock surrendered pursuant to such Reorganization Event (the “Acquisition Price”), then the Board may instead provide that all outstanding Options
shall terminate upon consummation of such Reorganization Event and that each Participant shall receive, in exchange therefor, a cash payment equal to the amount (if any) by which (A) the Acquisition Price multiplied by the number of shares of Common
Stock subject to such outstanding Options (whether or not then exercisable), exceeds (B) the aggregate exercise price of such Options. To the extent all or any portion of an Option becomes exercisable solely as a result of the first sentence of this
paragraph, upon exercise of such Option the Participant shall receive shares subject to a right of repurchase by the Company or its successor at the Option exercise price. Such repurchase right (1) shall lapse at the same rate as the Option would
have become exercisable under its terms and (2) shall not apply to any shares subject to the Option that were exercisable under its terms without regard to the first sentence of this paragraph. 
  
 (3) Consequences of a Reorganization Event on Restricted Stock Awards.
Upon the occurrence of a Reorganization Event, the repurchase and other rights of the Company under each outstanding Restricted Stock Award shall inure to the benefit of the Company’s successor and shall apply to the cash, securities or other
property which the Common Stock was converted into or exchanged for pursuant to such Reorganization Event in the same manner and to the same extent as they applied to the Common Stock subject to such Restricted Stock Award. 
  

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 8. General Provisions Applicable to Awards 
  
 (a) Transferability of Awards. Except as the Board may otherwise
determine or provide in an Award, Awards shall not be sold, assigned, transferred, pledged or otherwise encumbered by the person to whom they are granted, either voluntarily or by operation of law, except by will or the laws of descent and
distribution, and, during the life of the Participant, shall be exercisable only by the Participant. References to a Participant, to the extent relevant in the context, shall include references to authorized transferees. 
  
 (b) Documentation. Each Award shall be evidenced in such form
(written, electronic or otherwise) as the Board shall determine. Each Award may contain terms and conditions in addition to those set forth in the Plan. 
  
 (c) Board Discretion. Except as otherwise provided by the Plan, each Award may be made alone or in addition or in relation to any other Award. The
terms of each Award need not be identical, and the Board need not treat Participants uniformly. 
  
 (d) Termination of Status. The Board shall determine the effect on an Award of the disability, death, retirement, authorized leave of absence or
other change in the employment or other status of a Participant and the extent to which, and the period during which, the Participant, the Participant’s legal representative, conservator, guardian or Designated Beneficiary may exercise rights
under the Award. 
  
 (e) Withholding. Each Participant
shall pay to the Company, or make provision satisfactory to the Board for payment of, any taxes required by law to be withheld in connection with Awards to such Participant no later than the date of the event creating the tax liability. Except as
the Board may otherwise provide in an Award, when the Common Stock is registered under the Exchange Act, Participants may satisfy such tax obligations in whole or in part by delivery of shares of Common Stock, including shares retained from the
Award creating the tax obligation, valued at their Fair Market Value; provided, however, that the total tax withholding where stock is being used to satisfy such tax obligations cannot exceed the Company’s minimum statutory withholding
obligations (based on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income). The Company may, to the extent permitted by law, deduct any such tax
obligations from any payment of any kind otherwise due to a Participant. 
  
 (f) Amendment of Award. The Board may amend, modify or terminate any outstanding Award, including but not limited to, substituting therefor another Award of the same or a different type, changing the date of
exercise or realization, and converting an Incentive Stock Option to a Nonstatutory Stock Option, provided that the Participant’s consent to such action shall be required unless the Board determines that the action, taking into account any
related action, would not materially and adversely affect the Participant. 
  
 (g) Conditions on Delivery of Stock. The Company will not be obligated to deliver any shares of Common Stock pursuant to the Plan or to remove restrictions from shares previously delivered under the Plan until
(i) all conditions of the Award have been met or removed to the satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all 
  

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 other legal matters in connection with the issuance and delivery of such shares have been satisfied, including any
applicable securities laws and any applicable stock exchange or stock market rules and regulations, and (iii) the Participant has executed and delivered to the Company such representations or agreements as the Company may consider appropriate to
satisfy the requirements of any applicable laws, rules or regulations. 
  
 (h) Acceleration. The Board may at any time provide that any Award shall become immediately exercisable in full or in part, free of some or all restrictions or conditions, or otherwise realizable in full or in part, as the case may
be. 
  
 9. Miscellaneous 
  
 (a) No Right To Employment or Other Status. No person shall have any
claim or right to be granted an Award, and the grant of an Award shall not be construed as giving a Participant the right to continued employment or any other relationship with the Company. The Company expressly reserves the right at any time to
dismiss or otherwise terminate its relationship with a Participant free from any liability or claim under the Plan, except as expressly provided in the applicable Award. 
  
 (b) No Rights As Stockholder. Subject to the provisions of the applicable Award, no Participant or Designated
Beneficiary shall have any rights as a stockholder with respect to any shares of Common Stock to be distributed with respect to an Award until becoming the record holder of such shares. Notwithstanding the foregoing, in the event the Company effects
a split of the Common Stock by means of a stock dividend and the exercise price of and the number of shares subject to such Option are adjusted as of the date of the distribution of the dividend (rather than as of the record date for such dividend),
then an optionee who exercises an Option between the record date and the distribution date for such stock dividend shall be entitled to receive, on the distribution date, the stock dividend with respect to the shares of Common Stock acquired upon
such Option exercise, notwithstanding the fact that such shares were not outstanding as of the close of business on the record date for such stock dividend. 
  
 (c) Effective Date and Term of Plan. The Plan shall become effective on the date on which it is adopted by the Board, but no Award granted to a
Participant that is intended to comply with Section 162(m) shall become exercisable, vested or realizable, as applicable to such Award, unless and until the Plan has been approved by the Company’s stockholders to the extent stockholder approval
is required by Section 162(m) in the manner required under Section 162(m) (including the vote required under Section 162(m)). No Awards shall be granted under the Plan after the completion of ten years from the earlier of (i) the date on which the
Plan was adopted by the Board or (ii) the date the Plan was approved by the Company’s stockholders, but Awards previously granted may extend beyond that date. 
  
 (d) Amendment of Plan. The Board may amend, suspend or terminate the Plan or any portion thereof at any time,
provided that to the extent required by Section 162(m), no Award granted to a Participant that is intended to comply with Section 162(m) after the date of such amendment shall become exercisable, realizable or vested, as applicable to such Award,
unless and until such amendment shall have been approved by the Company’s stockholders if required by Section 162(m) (including the vote required under Section 162(m)). 
  

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 (e) Governing Law. The provisions of the Plan and all Awards made hereunder shall be governed by
and interpreted in accordance with the laws of the State of Delaware, without regard to any applicable conflicts of law. 
  
 Adopted by the Board of Directors on April 26, 2001. 
 Approved by the Stockholders of June 7, 2001. 
  

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 NMT MEDICAL, INC. 
  
 Amendment No. 1 
  
 to 
  
 2001 Stock Incentive Plan 
  
 The 2001 Stock Incentive Plan (the “Plan”) of NMT Medical, Inc. (the “Company”) is hereby amended as follows (capitalized terms used herein and not defined herein shall have the respective meaning
ascribed to such terms in the Plan): 
  
 1. The first sentence of
Section 4(a) of the Plan shall be deleted in its entirety and replaced with the following: 
  
 “Subject to adjustment under Section 7, Awards may be made under the Plan for up to 700,000 shares of common stock, $.001 par value
per share, of the Company (the “Common Stock”).” 
  
 Except as aforesaid, the Plan shall remain in full force and effect. 
  
 Adopted by the Board of Directors on February 20, 2003. 
  
 Approved by the Stockholders on June 18, 2003. 
  

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 NMT MEDICAL, INC. 
  
 Amendment No. 2 
  
 to 
  
 2001 Stock Incentive Plan, as amended 
  
 The 2001 Stock Incentive Plan, as amended (the “Plan”), of NMT Medical, Inc. (the “Company”) is hereby amended as follows (capitalized terms used herein and not defined herein shall have the
respective meaning ascribed to such terms in the Plan): 
  
 1.
The first sentence of Section 4(a) of the Plan shall be deleted in its entirety and replaced with the following: 
  
 “Subject to adjustment under Section 7, Awards may be made under the Plan for up to 1,100,000 shares of common stock, $.001 par value
per share, of the Company (the “Common Stock”).” 
  
 Except as aforesaid, the Plan shall remain in full force and effect. 
  
 Adopted by the Board of Directors on March 11, 2004. 
  
 Approved by the Stockholders on June 22, 2004. 
  

 10Amended and Restated Employment Agreement

 Exhibit 10.2 
  
 Confidential Materials omitted and filed separately with the 
 Securities and Exchange Commission. Asterisks denote omissions. 
  
 AMENDED AND RESTATED 
 EMPLOYMENT AGREEMENT 
  
 This Amended and Restated Employment Agreement (the “Agreement”) is
entered into as of May 20, 2004, by and between Richard E. Davis (the “Executive”) and NMT Medical, Inc., a Delaware corporation (the “Company”). 
  
 WHEREAS, the Company and the Executive (together, the “Parties”) are parties to an Employment Agreement, dated as
of February 14, 2001, as amended by Amendment No. 1 to Employment Agreement, dated as of April 28, 2003 (as amended, the “Prior Employment Agreement”), providing for the Executive’s employment by the Company as its Vice President and
Chief Financial Officer; 
  
 WHEREAS, the Parties, acting in
accordance with Section 22 of the Prior Employment Agreement, desire to amend and restate the Prior Employment Agreement to provide for, among other things, (i) the extension of the Employment Term (as defined below) until December 31, 2006; (ii)
the increase of the annual base salary to $280,000 and (iii) the extension of the term of continued Salary in the event of an involuntary termination of the Executive’s employment without Cause (as defined below) to be a period of twelve months
from the Termination Date (as defined below); 
  
 WHEREAS, the
Company wishes to continue to employ the Executive as the Vice President and Chief Financial Officer of the Company under the terms and conditions set forth below; and 
  
 WHEREAS, the Executive wishes to accept such continued employment under those terms and conditions; 
  
 NOW, THEREFORE, in consideration of the provisions and mutual covenants
contained in this Agreement and for other good and valuable consideration, the Parties agree as follows: 
  

	 	1.	TERM OF EMPLOYMENT. 

  
 The Company agrees to employ the Executive, and the Executive agrees to serve, on the terms and conditions of this Agreement, for a period commencing as
of February 14, 2001 (the “Effective Date”) and ending on December 31, 2006, or such shorter period as may be provided for herein. The employment term described above is hereinafter referred to as the “Employment Term”. The
Employment Term may be extended only in writing signed by both the Company and the Executive. 
  

	 	2.	POSITION, DUTIES, RESPONSIBILITIES. 

  
 During the Employment Term, the Executive shall serve as Vice President and Chief Financial Officer of the Company. In such capacity, the Executive shall
report to the President and Chief Executive Officer of the Corporation (the “President”) and shall perform such duties and have such responsibilities of an executive nature as are set forth in the Company’s Amended and Restated
By-Laws, as amended from time to time (the “By-Laws”), and as are customarily performed by a person holding such office, it being recognized that the Executive’s duties and 

 responsibilities, consistent with his titles hereunder, may be changed by the Board of Directors of the Company (the
“Board of Directors”) from time to time. The Executive shall devote his full business time and attention to the performance of his duties under this Agreement. 
  

	 	3.	BASE SALARY. 

  
 During the Employment Term and effective as of February 14, 2004, the Executive shall be paid an annual base salary of $280,000 (“Salary”),
subject to deductions for social security, state payroll and unemployment and all other legally required or authorized deductions and withholding. The Executive’s Salary shall be payable in accordance with the Company’s standard payroll
practice. The Joint Compensation and Options Committee of the Board of Directors (the “Compensation Committee”) shall review and establish the Executive’s Salary at least on an annual basis, on February 14 of each year during the
Employment Term. 
  

	 	4.	STOCK OPTIONS. 

  
 On the Effective Date (i.e., February 14, 2001), the Executive shall be granted a stock option (the “Options”) to purchase 85,000 shares of
common stock, par value $.001 per share, of the Company (the “Common Stock”), under either the Company’s 1998 Stock Incentive Plan or 1996 Stock Option Plan. The exercise price for the Options shall be the closing price ($1.25)
of the Common Stock on the date of grant, which date shall be the Effective Date. The Options shall, to the maximum extent permissible under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), constitute incentive
stock options, with any balance of the Options to be treated as non-statutory stock options. The Options shall vest in 48 equal monthly installments on each monthly anniversary of the date of grant. Once exercisable, the Options shall remain
exercisable for a period of ten (10) years from the date of grant (the “Final Exercise Date”). Notwithstanding the foregoing, the Options shall become immediately exercisable in the event of a Change of Control of the Company or the
termination of the Executive’s employment without cause pursuant to Section 14. For purposes of this Agreement, a “Change of Control of the Company” shall be deemed to have occurred only upon (a) any merger or consolidation of the
Company with or into another entity as a result of which the Common Stock is converted into or exchanged for the right to receive cash, securities or other property or (b) any exchange of all or substantially all shares of the Company for cash,
securities or other property pursuant to a statutory share exchange transaction. 
  

	 	5.	ANNUAL BONUS. 

  
 Commencing with the Company’s fiscal year 2001, after the completion of the Company’s fiscal year and as soon as the Company’s financial
information required to be included in its Annual Report on Form 10-K for such fiscal year is available, but in no event later than 90 days after the end of such fiscal year, the Executive shall be entitled to receive an annual bonus (the
“Annual Bonus”) consisting of a cash bonus of up to 30% of the Salary as then in effect for such fiscal year provided that (i) the Executive satisfies agreed-upon financial and other performance goals each as contained in an annual
incentive plan for the Executive as established in good faith by the Compensation Committee after consultation with the President of the Company (the “President”) and the Executive on an annual basis (the “Incentive Plan”) and
(ii) the Company achieves an agreed-upon profit target as contained in the Incentive Plan as 
  

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 established in good faith by the Compensation Committee after consultation with the President and the Executive on an
annual basis; provided, however, that the Compensation Committee, in its reasonable discretion, shall determine whether the Executive has satisfied such goals. In the event that the Executive is entitled to the Annual Bonus, then the Executive shall
receive the Annual Bonus prior to the Company filing its Annual Report on Form 10-K for such fiscal year. 
  

	 	6.	CASH PAYMENT UPON A CHANGE OF CONTROL. 

  
 (a) Upon the consummation of a Change of Control of the Company, and subject to the provisions of this Section 6, the Executive shall be entitled to
receive a cash payment equal to a percentage of the Total Deal Consideration (as defined below) in accordance with Schedule I attached hereto (the “Applicable Percentage”). 
  
 (b) For purposes of this Agreement, “Total Deal Consideration” shall mean the gross value of all cash, securities
and other property actually paid directly or indirectly by an acquirer in a transaction constituting a Change of Control of the Company (including without limitation all amounts paid or distributed by the Company to the holders of its capital stock
in anticipation of the transaction, but excluding all amounts paid, distributed or issued to the holders of convertible securities, options, warrants, stock appreciation rights or similar rights or securities of the Company in connection with such
transaction). Total Deal Consideration shall also be deemed to include the aggregate principal amount of any indebtedness for borrowed money assumed (net of cash on hand) or extinguished in connection with such transaction. The value of any
securities (whether debt or equity) or other property shall be determined as follows: (i) the value of securities for which there is an established public market will be equal to the closing market price on the day of closing of such transaction and
(ii) the value of securities that have no established public market, and the value of consideration that consists of other property, shall be the fair market value thereof as determined in good faith by the Board of Directors of the Company.

  
 (c) For purposes of this Section 6 only, “Change of
Control of the Company” shall not include (A) a recapitalization of the Company, (B) a merger effected exclusively to change the domicile of the Company and (C) any “management buy-out” or other similar transaction in which the
Company is acquired by an entity or group in which the Executive is a participant or equity holder. 
  
 (d) Nothing in this Agreement shall be deemed to obligate the Company to undertake any action that would result in the receipt by the Executive of a cash
payment under this Section 6. 
  
 (e) If any part of the
consideration payable in a transaction constituting a Change of Control of the Company consists of contingent payments to be calculated by reference to uncertain future occurrences, such as future financial or business performance, then the
Applicable Percentage of such consideration that is actually paid shall not be payable to the Executive in accordance with Schedule I until the earlier of (A) the receipt of such consideration by the former holders of the Company’s capital
stock and (B) the time that the amount of such consideration can be determined. 
  

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 (f) If any part of the consideration payable in a transaction constituting a Change of Control of the
Company is withheld or placed into escrow for some period of time after the closing of such transaction, then the Applicable Percentage of such consideration shall not be payable to the Executive in accordance with Schedule I until and to the extent
such consideration is received by the former holders of the Company’s capital stock. 
  
 (g) For purposes of determining the Total Deal Consideration and the corresponding Applicable Percentage, the value of any contingent payments or any escrowed or withheld amounts shall be determined in good faith by
the Board of Directors of the Company at the time of the consummation of the transaction constituting a Change of Control of the Company. 
  

	 	7.	EMPLOYEE BENEFITS. 

  
 (a) Benefit Programs. During the Employment Term, the Company shall provide the Executive and eligible family members with medical, dental, and
disability insurance and such other benefits and perquisites as are provided in the Company’s applicable plans and programs to its employees generally; provided, that the Executive meets the qualifications therefor (“Benefits”).

  
 (b) Vacation. During each twelve month period of the
Employment Term, the Executive shall be entitled to three weeks of vacation; provided, however, that any vacation time not taken during any year shall be forfeited. The Executive shall also be entitled to all paid holidays given by the Company to
its officers and employees. 
  
 (c) Continued Benefits. In
the event the Executive dies during the Employment Term, normal employee medical and dental insurance benefits shall be continued on an insured basis for each of the Executive’s children who are under the age of 18 and the Executive’s
spouse for a period of 24 months following the month in which the Executive’s death occurs. 
  

	 	8.	REPRESENTATIONS AND WARRANTIES OF THE EXECUTIVE. 

  
 The Executive represents and warrants to the Company that the Executive is under no contractual or other restriction or obligation which is inconsistent
with the execution of this Agreement, the performance of his duties hereunder, or the other rights of the Company hereunder. 
  

	 	9.	NON-COMPETITION; NON-SOLICITATION. 

  
 In view of the unique and valuable services it is expected Executive will render to the Company, Executive’s knowledge of the customers, trade
secrets, and other proprietary information relating to the business of the Company and its customers and suppliers and similar knowledge regarding the Company it is expected Executive will obtain, and in consideration of the compensation to be
received hereunder, Executive agrees that he will not, during the period he is employed by the Company under this Agreement or otherwise, and for a period of one year after he ceases to be employed by the Company under this Agreement or otherwise,
compete with or be engaged in, or Participate In (as defined below) any other business or organization 
  

 4 

 (which shall not include a university, hospital, or other non-profit organization) which during such one year period is
or as a result of the Executive’s engagement or participation would become competitive with the Company’s business of designing, developing, manufacturing, marketing and selling neurosurgical devices, vena cava filters, stents, septal
repair devices or other medical devices being designed, developed, manufactured, marketed or sold by the Company up to the time of such cessation; provided, however, that the provisions of this Section 9 shall not be deemed breached merely because
the Executive owns less than 1% of the outstanding capital stock of a corporation, if, at the time of its acquisition by the Executive such stock is listed on a national securities exchange. The term “Participate In” shall mean:
“directly or indirectly, for his own benefit or for, with or through any other person (including the Executive’s immediate family), firm or corporation, own, manage, operate, control, loan money to, or participate in the ownership,
management, operation or control of, or be connected as a director, officer, employee, partner, consultant, agent, independent contractor, or otherwise with, or acquiesce in the use of his name in.” 
  
 The Executive will not, directly or indirectly, solicit or interfere with, or
endeavor to entice away from the Company any of its suppliers, customers or employees within a period of one year after the date of termination of the Executive’s employment (the “Termination Date”). The Executive will not directly or
indirectly employ any person who was an employee of the Company within a period of one year after such person leaves the employ of the Company. 
  
 If any restriction contained in this Section 9 shall be deemed to be invalid, illegal, or unenforceable by reason of the extent, duration or geographical
scope thereof, or otherwise, then the court making such determination shall have the right to reduce such extent, duration, geographical scope or other provisions hereof, and in its reduced form such restriction shall then be enforceable in the
manner contemplated hereby. 
  

	 	10.	INTELLECTUAL PROPERTY RIGHTS. 

  
 Any interest in patents, patent applications, inventions, technological innovations, copyrights, copyrightable works, developments, discoveries, designs
and processes which the Executive during the period he is employed by the Company under this Agreement or otherwise may acquire, conceive of or develop, either alone or in conjunction with others, utilizing the time, material, facilities or
information of the Company (“Inventions”) shall belong to the Company; as soon as the Executive owns, conceives of, or develops any Invention, he agrees immediately to communicate such fact in writing to the Board of Directors, and without
further compensation, but at the Company’s expense, forthwith upon request of the Company, the Executive shall execute all such assignments and other documents (including applications for patents, copyrights, trademarks, and assignments
thereof) and take all such other action as the Company may reasonably request in order (a) to vest in the Company all of the Executive’s right, title and interest in and to such Inventions, free and clear of liens, mortgages, security
interests, pledges, charges and encumbrances and (b), if patentable or copyrightable, to obtain patents or copyrights (including extensions and renewals) therefor in any and all countries in such name as the Company shall determine. 
  

 5 

	 	11.	NONDISCLOSURE. 

  
 The Employee Nondisclosure and Secrecy Agreement dated as of February, 15 2001, between the Company and the Executive shall remain in full force and
effect. 
  

	 	12.	INJUNCTIVE RELIEF. 

  
 Because a breach of the provisions of any of Section 9, Section 10 and Section 11 could not adequately be compensated by money damages, the Company shall
be entitled, in addition to any other right and remedy available to it, to an injunction restraining such breach or a threatened breach, and in either case no bond or other security shall be required in connection therewith. The Executive agrees
that the provisions of each of Section 9, Section 10 and Section 11 are necessary and reasonable to protect the Company in the conduct of its business. 
  

	 	13.	TERMINATION OF THE EXECUTIVE UPON DEATH OR DISABILITY. 

  
 (a) The term of the Executive’s employment shall terminate automatically upon his death. In addition, the Company shall have the right to terminate
the Employment Term upon the Disability (as defined below) of the Executive. If the Executive’s employment is terminated by the Company due to the Executive’s death or Disability, then the Executive, his guardian or his estate, as
applicable, shall be entitled to: 
  

	 	(i)	Salary and Benefits earned to the Termination Date; and 

  

	 	(ii)	other benefits as are provided under the applicable plans and programs of the Company as then in effect. 

  
 (b) For purposes of this Agreement, “Disability” shall mean any physical or mental disability or incapacity that
renders the Executive incapable of performing his duties hereunder for a period of 180 consecutive calendar days or for shorter periods aggregating 180 calendar days during any consecutive twelve-month period. 
  

	 	14.	INVOLUNTARY TERMINATION WITHOUT CAUSE. 

  
 (a) The Executive shall be deemed to have been involuntarily terminated without Cause (as defined below) if one of the following events occurs:

  

	 	(i)	The Company terminates the Executive’s employment at anytime without Cause (as defined below); 

  

	 	(ii)	There occurs a substantial reduction by the Company in the Executive’s responsibilities, authorities, powers and duties from the responsibilities, authorities, powers and
duties exercised by the Executive just prior to such reduction but excluding such reduction effected with the Executive’s prior consent or for reasons arising out of the Executive’s gross negligence or willful misconduct;

  

 6 

	 	(iii)	The Company requires the Executive to be based principally at any office or location which is outside New England, unless the Executive consents to be based principally at such
other office or location; 

  

	 	(iv)	The Company’s failure to (x) maintain the Executive’s eligibility for participation in existing benefit plans then being made available by the Company to other employees
of the Company having substantially similar levels of responsibility as the Executive or (y) provide to the Executive substantially the same benefits or other perquisites then being provided or paid to the other employees of the Company having
substantially similar levels of responsibility as the Executive; or 

  

	 	(v)	There occurs a breach of this Agreement by the Company which continues for more than seven (7) business days after the Executive gives written notice to the Company, setting forth
in reasonable detail the nature of such breach. 

  
 (b) If the Executive’s employment is involuntarily terminated at any time without Cause (as defined below), the Executive shall be entitled to: 
  

	 	(i)	Salary and Benefits earned to the Termination Date; 

  

	 	(ii)	Annual Bonus for the fiscal year in which such termination is effected, notwithstanding the provisions of Section 5 and as if the Executive had served throughout such fiscal year
and had satisfied the goals as set forth in the Incentive Plan for such fiscal year; and 

  

	 	(iii)	Continued Salary for a period of twelve months from the Termination Date. 

  
 In addition, all exercisable Options shall expire 360 days after the Termination Date. 
  

	 	15.	TERMINATION BY THE COMPANY FOR CAUSE. 

  
 (a) GENERAL. The Company shall have the right to terminate the Executive’s employment for Cause, as defined in subsection (b) below, in which
event, the Executive shall be entitled only to Salary and Benefits earned to the Termination Date. In addition, all exercisable Options shall expire as of the Termination Date. 
  

	 	(b)	CAUSE. For purposes of this Agreement, “Cause” shall mean: 

  

	 	(i)	fraud, embezzlement or gross insubordination on the part of the Executive; 

  

	 	(ii)	conviction of or the entry of a plea of nolo contendere by the Executive to any felony or crime of moral turpitude; 

  

 7 

	 	(iii)	a material breach of, or the willful failure or refusal by the Executive to perform and discharge, his duties, responsibilities or obligations under this Agreement that is not
corrected within 20 days following written notice thereof to the Executive by the Company, such notice to state with specificity the nature of the breach, failure or refusal; provided, that if such breach, failure or refusal cannot reasonably be
corrected within 20 days of written notice thereof, correction shall be commenced by the Executive within such period and shall be corrected as soon as practicable thereafter; or 

  

	 	(iv)	any act of willful misconduct by the Executive which is intended to result in substantial personal enrichment of the Executive at the expense of the Company or any of its
subsidiaries or affiliates. 

  
 16. TERMINATION
BY THE EXECUTIVE WITHOUT CAUSE. The Executive may terminate this Agreement at any time with or without cause by providing thirty (30) days’ prior written notice to the Company, in which event, the Executive shall be entitled only to Salary
and Benefits earned to the Termination Date. In addition, all exercisable Options shall expire 90 days after the Termination Date. 
  

	 	17.	WITHHOLDING. 

  
 Anything to the contrary notwithstanding, all payments required to be made by the Company under this Agreement to the Executive, his spouse, his estate or
beneficiaries, shall be subject to withholding of such amounts relating to taxes as the Company may reasonably determine it should withhold pursuant to any applicable law or regulation. In addition, in the event that the Company reasonably
determines that it is required to make any payments of withholding taxes as a result of Executive’s receipt of any other income pursuant to the terms of this Agreement, the Company may, as a condition to such receipt, require that the Executive
provide the Company with an amount of cash sufficient to enable the Company to pay such withholding taxes. 
  

	 	18.	LOCK-UP AGREEMENT. 

  
 In the event that the Company seeks to consummate a public offering of its securities during the Employment Term, the Executive shall execute an agreement
in a form and substance satisfactory to the managing underwriter or underwriters of the Company’s securities, not to sell, pledge, contract to sell, grant any option or otherwise dispose of any shares of stock owned or acquired by the Executive
for such period of time as requested by such underwriter of all other executive officers of the Company. 
  

	 	19.	INDEMNIFICATION. 

  
 During the Employment Term, the Company agrees to (i) indemnify the Executive in his capacity as an officer of the Company and, to the extent applicable,
as an officer and director of each subsidiary of the Company, as provided in Article Eighth of the Company’s Second Amended and Restated Certificate of Incorporation, as amended, and (ii) use its best efforts to maintain in effect its director
and officer liability insurance policies.  
  

 8 

	 	20.	LEGAL FEES. 

  
 The Company shall reimburse the Executive all reasonable and documented legal fees, costs and expenses incurred by the Executive in contesting or
disputing any breach of this Agreement by the Company or in seeking to obtain or enforce any right or benefit provided by this Agreement; provided, however, that the Company shall have no such obligation to reimburse the Executive for such legal
fees, costs and expenses unless the final resolution of such matter is determined by a court of competent jurisdiction to be in the Executive’s favor. 
  

	 	21.	ASSIGNABILITY; BINDING NATURE. 

  
 This Agreement and all rights of the Executive shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives,
estates, executors, administrators, heirs and beneficiaries. All amounts payable to the Executive hereunder shall be paid, in the event of the Executive’s death, to the Executive’s estate, heirs and representatives. This Agreement shall
inure to the benefit of, be binding upon, and be enforceable by, any successor, surviving or resulting company or other entity to which all or substantially all of the Company’s business and assets shall be transferred. 
  

	 	22.	ENTIRE AGREEMENT. 

  
 This Agreement, together with the Employee Nondisclosure and Secrecy Agreement, contains the entire agreement between the Executive and the Company (each,
a “Party”) concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations, and undertakings, whether written or oral, between the Parties with respect thereto, including without
limitation the Prior Employment Agreement. The Prior Employment Agreement is hereby terminated and of no further force and effect. 
  

	 	23.	AMENDMENTS AND WAIVERS. 

  
 This Agreement may not be modified or amended except by a writing signed by both Parties. A Party may waive compliance by the other Party with any term or
provision of this Agreement, or any part thereof, provided that the term or provision, or part thereof, is for the benefit of the waiving Party. Any waiver will be limited to the facts or circumstances giving rise to the noncompliance and will not
be deemed either a general waiver or modification with respect to the term or provision, or part thereof, being waived, or as to any other term or provision of this Agreement, nor will it be deemed a waiver of compliance with respect to any other
facts or circumstances then or thereafter occurring. 
  

	 	24.	NOTICE. 

  
 Any notice given under this Agreement shall be in writing and shall be deemed given when delivered personally or by courier, or five days after being
mailed, certified or registered mail, duly addressed to the Party concerned at the address indicated below or at such other 
  

 9 

 address as such Party may subsequently provide, in accordance with the notice and delivery provisions of this Section 24:

  

					
	 (a)
	 	 If to the Company:
	  	 NMT Medical, Inc.
 27 Wormwood Street
 Boston, MA 02210
 Attn: John E. Ahern

			
	 	 	 with a copy to:
	  	 Hale and Dorr LLP
 60 State Street
 Boston, MA 02109-1803
 Attn: Steven D. Singer, Esq.

		
	 (b)
	 	If to the Executive, at his address as it appears on the Company’s records,
		
	 	 	With a copy to:

  

	 	25.	SEVERABILITY. 

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

	 	26.	SURVIVORSHIP. 

  
 The respective rights and obligations of the Parties hereunder shall survive any termination of this Agreement to the extent necessary to the intended
preservation of such rights and obligations. 
  

	 	27.	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 legal representative or, where appropriate, to his beneficiary or beneficiaries. 
  

	 	28.	GOVERNING LAW. 

  
 This Agreement shall be governed by and construed and interpreted in accordance with the laws of The Commonwealth of Massachusetts without reference to
the principles of conflicts of law. 
  

 10 

	 	29.	HEADINGS. 

  
 The headings of 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. 
  

	 	30.	COUNTERPARTS AND FACSIMILE SIGNATURE. 

  
 This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. This Agreement may be executed by facsimile signature. 
  
 [The remainder of this page has been intentionally left blank.] 
  

 11 

 THE UNDERSIGNED have executed this Agreement effective as of the date first written above. 
  

			
	 COMPANY:

	
	 NMT Medical, Inc.

		
	 By:
	 	 /s/ John E. Ahern

	 	 	 John E. Ahern

	 	 	 President and Chief Executive Officer

	 	 	 
	
	 EXECUTIVE:

		
	 	 	 /s/ Richard E. Davis

	 	 	 Richard E. Davis

  

 12 

 SCHEDULE I 
  

Cash Payment Upon Change of Control 
  
 The cash payment payable to the Executive in accordance with Section 6 of the Agreement shall be determined as follows: 
  

			
	 Deal Consideration Per Share

	  	 Payment to Executive

	 Less than or equal to $[**] per share
	  	.25% of the Total Deal Consideration
	 Greater than $[**] but less than or equal to $[**] per share
	  	.625% of the Total Deal Consideration
	 Greater than $[**] but less than or equal to $[**] per share
	  	.75% of the Total Deal Consideration
	 Greater than $[**] per share
	  	.875% of the Total Deal Consideration

  
 For purposes of this
Schedule I, “Deal Consideration Per Share” for any transaction shall be determined by dividing the Total Deal Consideration by the number of shares of Common Stock issued and outstanding (or deemed to be issued and outstanding) immediately
prior to the consummation of such transaction.

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