Document:

Striker Energy Inc.: Exhibit 10.10 - Filed by newsfilecorp.com

“ <> “ Denotes certain parts that have not been
disclosed and have been filed separately with the Secretary, Securities and
Exchange Commission, and is subject to a confidential treatment request pursuant
to Rule 24b-2 of the Securities Exchange Act of 1934, as
amended.

THIS SINGLE PRODUCT MANUFACTURING AND SUPPLY
AGREEMENT (“Agreement”) is made and is effective as of the 22nd
day of July, 2010 (the “Effective Date”), between CYPRESS
PHARMACEUTICALS, INC., with offices at 135 Industrial Blvd., Madison, MS,
39110, U.S.A. (“Cypress”); and THERAPEX, a division of E-Z-EM
CANADA INC., with offices at 11065 Louis-H. Lafontaine Blvd., Anjou, Quebec,
H1J 2Z4, Canada (“EZEM”).

	1. 	
      PREAMBLE

	 	 
	1.1 	
      EZEM manufactures and has the technological know-how to
      custom manufacture the product identified in Schedule A (the
      “Product”).

	 	 
	1.2 	
      Cypress wishes to have EZEM manufacture the Product in
      accordance with the terms hereof, and EZEM is willing to manufacture and
      supply the Product to Cypress in each case on the terms set forth in this
      Agreement.

NOW, THEREFORE; THE PARTIES HERETO HEREBY AGREE AS
FOLLOWS:

	2. 	
      DEVELOPMENT AND MANUFACTURING

	 	 
	2.1 	
      EZEM hereby agrees and undertakes to use its best
      commercial efforts:

	 	 
	2.1.1 	
      to provide the required chemistry and manufacturing
      documentation to support any required registration of Product. For
      purposes of this Agreement, “registration” shall mean regulatory filings,
      if any, required by the U.S. Food, Drug and Cosmetics Act (the
      “Act”), including, but not limited to, any Abbreviated New Drug
      Application (“ANDA”) and similar regulatory filings;

	 	 
	2.1.2 	
      to manufacture Product in accordance with the
      specifications agreed upon by Cypress and EZEM for the Product, as well as
      with any NDA or ANDA, if applicable, for the Product, and in compliance
      with all applicable regulatory requirements, including, but not limited
      to, regulations promulgated by any and all governmental and regulatory
      authorities, including without limitation the U.S. Food and Drug
      Administration (“FDA”), the Federal Trade Commission, the Drug
      Enforcement Administration and any and all state, federal or local
      governmental or regulatory authorities as well as any generally accepted
      practices in the industry, including manufacturing the Product according
      to good manufacturing practices as that term is ordinarily understood in
      the industry (all of these collectively referred to herein as the
      “Regulations”). During the term of this Agreement, EZEM will
      promptly communicate to Cypress any and all information and/or data
      learned or obtained by EZEM relating to the Product ANDA, where
      applicable, the Product itself, and/or its manufacture which Cypress may
      reasonably require or need, including, but not limited to, any information
      or data needed to make complete, timely and accurate regulatory filings
      under any applicable Regulations;

	2.1.3 	
      to ensure that during the Term (as hereinafter defined),
      it will have the capacity to and will supply Cypress’ requirements for
      Product in the United States, in accordance with the forecast provided by
      Cypress under Section 2.2.4 and the other terms and conditions specified
      herein; and

	 	 
	2.1.4 	
      to ensure that the shape, color, markings and other trade
      dress of the Product is in compliance with any applicable Product ANDA and
      the Regulations. The proposed trade dress for the Product will be agreed
      to in writing by Cypress and EZEM and, when such an agreement is reached
      as to a given Product, that Product’s trade dress will be illustrated, and
      the illustration will be signed by each party and then attached as a part
      of Schedule A. As part of the services provided under this Agreement, EZEM
      shall package the Product at its expense, using containers and labels that
      are in compliance with all applicable Regulations and the style and form
      of the packaging and labeling shall be subject to approval by Cypress.
      EZEM shall prepare and package the Product in accordance with good
      commercial manufacturing practices as they relate to the safe delivery of
      the Product free from damage and to requirements of the applicable common
      carriers or other means of conveyance shipper utilized.

	 	 
	2.2 	
      Cypress hereby agrees and undertakes:

	 	 
	2.2.1 	
      unless otherwise provided for in Schedule A for a
      Product, to apply for any required registration and all regulatory
      approvals, if any, required for the Product;

	 	 
	2.2.2 	
      to file any required annual reports and be responsible
      for any required registrations, permits and licenses necessary for the
      sale of Product in the United States as well as for all related
    costs;

	 	 
	2.2.3 	
      to execute a Quality Agreement with EZEM to be attached
      hereto as Schedule B;

	 	 
	2.2.4 	
      to provide EZEM with an annual forecast, revised
      quarterly, of the volume for Product;

	 	 
	2.2.5 	
      to distribute, market and sell Product;

	 	 
	2.2.6 	
      that subject to Section 3.2, it shall purchase or
      otherwise obtain all of its requirements of Product from EZEM and shall
      utilize EZEM as its exclusive source for Product;

	 	 
	2.2.7 	
      that subject to Section 3.2, it shall cause all of its
      affiliates, agents, assignees, and sub- licensees to purchase or otherwise
      obtain all of their respective requirements of Product from EZEM, in each
      case recognizing EZEM as the exclusive manufacturer and supplier of
      Product for each of the foregoing parties; and

	 	 
	2.2.8 	
      that with respect to any future product that is a
      different package size or configuration of Product or an extension,
      modification or improvement upon Product (in each case a “Product
      Extension”), EZEM shall have a right of first refusal with respect to
      such Product Extension such that, prior to approaching another party with
      respect to, entering into any negotiations with another party for, or
      concluding an agreement with another party for, the development and
      manufacturing of, and supply to Cypress of, such Product Extension Cypress
      shall:

2

		(a) 	
      provide EZEM a reasonable opportunity to make, and a
      reasonable period of time to develop, a proposal whereby such Product
      Extension would become a Product subject to this Agreement or an
      independent agreement between Cypress and EZEM (a “Product Extension
      Agreement”) providing for the development, manufacturing and supply of
      such Product Extension;

	 	 	 
		(b) 	
      consider any proposal made by EZEM pursuant to the
      preceding paragraph (a) in good faith; and

	 	 	 
		(c) 	
      negotiate in good faith with EZEM with a view to such
      Product Extension becoming a Product subject to this Agreement or
      concluding a Product Extension Agreement.

	 	 	 
	3. 	
      TERM OF AGREEMENT; SUSPENSION OF EXCLUSIVITY;
      TERMINATION

	 	 	 
	3.1 	
      This Agreement shall remain in force, unless and until
      terminated in accordance with its terms (such period being the
      “Term”).

	 	 	 
	3.2 	
      At any time during the Term, the obligations of Cypress
      and/or its affiliates, agents, assignees and sub-licensees, as the case
      may be, to purchase such Product exclusively from EZEM pursuant to
      Sections 2.2.6 and 2.2.7 (and Cypress’ obligation with respect to Product
      Extensions under Section 2.2.8) shall be suspended if, to the extent and
      for the period of time during which EZEM fails in a material respect to
      provide the quantities of Product ordered hereunder; provided the quantity
      ordered in the applicable year does not exceed the amount of the
      then-current revised forecast for the Product forecasted pursuant to
      Section 2.2.4. In such event, Cypress and/or its affiliates, agents,
      assignees and sub-licensees, as the case may be, shall be entitled to
      notify EZEM in writing (such writing being a “Notice of Failure”)
      of this failure by EZEM and thereafter purchase or otherwise obtain
      Product from an alternate supplier. In addition, if within thirty (30)
      days of the date when notice was provided to EZEM under the preceding
      sentence EZEM is able to provide Cypress with a plan for implementing
      remedial or other measures (the “Remedial Plan”) that can
      reasonably be expected to restore EZEM’s ability to supply the number of
      units of Product as are required hereunder by the applicable party or
      parties, and provided the annual requirements for Product for the
      applicable year do not exceed the then-current revised annual forecast for
      Product, then the obligations of Cypress and/or its affiliates, agents,
      assignees and sub-licensees, as the case may be, to purchase Product
      exclusively from EZEM pursuant to Sections 2.2.6 and 2.2.7 shall be
      restored for the period from the implementation of the Remedial Plan until
      the expiration of the Term. However, if within thirty (30) days of the
      Notice of Failure EZEM does not provide Cypress with a Remedial Plan, or
      if EZEM, having implemented the Remedial Plan again fails in a materially
      similar manner to perform its obligations as to Product, then the
      obligations to exclusively purchase such Product from EZEM shall terminate
      and Cypress may, in its discretion, terminate this
  Agreement.

3

	3.3 	
      Subject to Section 3.2, either party hereto will be
      entitled forthwith to terminate this Agreement by written notice to the
      other party hereto if the party being notified committed any material
      breach of the provisions of this Agreement, and in the case of a breach
      capable of remedy, failed to remedy the same or to undertake appropriate
      corrective measures to remedy the same within thirty (30) days after
      receipt of a written notice from the terminating party providing a
      reasonable description of the breach and requesting it to be
    remedied.

	 	 
	3.4 	
      Subject to Section 3.2, either party hereto will be
      entitled forthwith to terminate this Agreement by written notice to the
      other party hereto if:

	 	 
	3.4.1 	
      a beneficiary of any lien or encumbrance on the assets of
      the party being notified takes possession of a material portion of such
      assets, or a receiver is appointed over any material portion of the
      property or assets of the party being notified; and

	 	 
	3.4.2 	
      the party being notified: (i) applies for or consents to
      the appointment of a custodian, receiver, trustee, or liquidator of all or
      a substantial portion of its assets; (ii) makes a general assignment for
      the benefit of creditors; (iii) files or submits a petition or answer
      seeking an arrangement with its creditors under any bankruptcy or
      insolvency law or proceeding; (iv) becomes subject to any order, judgment,
      or decree, without such non- terminating party’s application, consent, or
      approval, appointing a custodian, receiver, trustee, or liquidator of all
      or a substantial portion of its assets or approving a petition seeking
      reorganization of such party; (v) fails to remove an involuntary petition
      in bankruptcy filed against it within forty five (45) days of the filing
      thereof; (vi) any order for relief is entered against the non-terminating
      party under any applicable bankruptcy legislation.

	 	 
	3.5 	
      EZEM may terminate this Agreement if Cypress fails for a
      period of twelve (12) consecutive months to order at least one container
      of Product from EZEM. For purposes of this Agreement generally and this
      Section 3.5 specifically, delivery of Product to Cypress or its assigns
      pursuant to purchase order number H051001 dated May 11, 2010 shall be
      deemed to be made pursuant to this Agreement, and not pursuant to any
      prior agreement between the parties.

	 	 
	3.6 	
      The parties may terminate this Agreement by mutual
      consent provided the termination is set forth in writing in an instrument
      signed by a representative of each party.

	 	 
	3.7 	
      Upon termination of the Agreement by either party hereto
      for any reason, without limitation to a party’s rights in connection with
      such termination, the following consequences shall arise:

	 	 
	3.7.1 	
      any and all sums that are due and owing from Cypress to
      EZEM hereunder in respect of Product that conforms to the requirements of
      this Agreement shall be paid in full within sixty (60) days of the
      effective date of termination of this Agreement;

4

	3.7.2 	
      except as otherwise provided in Section 3.7.3 below and
      subject to Section 3.7.1 above, Cypress shall: (i) pay to EZEM all amounts
      actually disbursed by EZEM for the acquisition of packaging and raw
      materials to manufacture Product which have not been incorporated into
      finished Product; and (ii) purchase from EZEM all of the applicable
      finished Product in EZEM’s inventory which are subject to a purchase order
      from Cypress issued prior to the termination or otherwise subject to an
      agreement with, or direction from, Cypress, such purchase being at the
      applicable price for Product pursuant to this Agreement; and

	 	 
	3.7.3 	
      in the event that this Agreement is terminated by virtue
      of a material breach by EZEM of its obligations under Section 2.1.2, then
      Cypress shall owe nothing pursuant to Section 3.7.2
  above.

The parties agree that following the termination of the
Agreement, they shall cooperate with each other in good faith to minimize the
costs payable by Cypress under this Section 3.7, which cooperation shall
include, to the extent commercially reasonable, working together to attempt to
liquidate inventories of Product, packaging and raw materials, locate other
applications for such inventories and cause other manufacturers to purchase such
inventories.

	4. 	
      FINANCIAL PROVISIONS, DELIVERY AND
  PAYMENT

	 	 
	4.1 	
      Cypress and EZEM agree that the prices payable by Cypress
      for Product are set forth on Schedule A. The financial provisions relating
      to matters such as delivery and payment terms for Product are enumerated
      in Schedule A. For each Product order from Cypress, each corresponding
      shipment by EZEM will include an invoice from EZEM to Cypress for the
      Product so manufactured and shipped. The invoice shall state the price
      payable by Cypress in connection with such order in accordance with the
      terms specified on Schedule A. Freight and similar shipping charges for
      conveying Product from EZEM’s manufacturing plant loading dock to the
      delivery destination specified on Schedule A shall be at the expense of
      the party specified on Schedule A and shall be made using a common carrier
      or other means of conveyance specified by the party so responsible for
      freight and similar shipping charges. Notwithstanding such Schedule, EZEM
      may vary, subject to the prior agreement and consent of Cypress (which
      consent and agreement may not be unreasonably withheld), the price for
      Product where raw materials cost changes or other similar circumstances
      reasonably support a change in price, with the new price to take effect
      ninety (90) days after the consent and agreement of Cypress, and
      thereafter the applicable portion of Schedule A shall be deemed amended to
      reflect such new price.

5

	4.2 	
      Cypress shall place orders for Product with EZEM from
      time to time in quantities to be specified by Cypress through written
      purchase orders. EZEM will provide Cypress with all of its needs and
      orders for Product whenever specified in a purchase order, and provided
      EZEM has material inventories adequate for such purchase order, the
      Product so ordered will be delivered not less than sixty (60) days from
      the date the order is placed. Each shipment of Product will be delivered
      to Cypress ready to sell with a certificate of analysis. EZEM agrees to
      use its commercially reasonable efforts to maintain adequate material
      inventories of Product ingredients, packaging and labeling for Product so
      as to assure EZEM’s capability to meet Cypress’ needs for Product in
      accordance with the forecast provided by Cypress pursuant to Section
      2.2.4.

	 	 
	4.3 	
      All references to currency, unless indicated otherwise
      are to US Dollars.

	 	 
	5. 	
      WARRANTY, INDEMNITY AND INSURANCE

	 	 
	5.1 	
      EZEM represents and warrants that each unit of Product
      supplied by EZEM to Cypress under this Agreement will conform in all
      material respects to the agreed specifications and the Regulations. EZEM
      further represents and warrants that it will perform all of its
      obligations under this Agreement in accordance with all applicable laws
      and the Regulations.

	 	 
	5.2 	
      Cypress represents and warrants that, except for patents
      challenged pursuant to Paragraph IV certifications, no Product infringes
      upon or violates any patent, registered industrial design, trade mark,
      copyrighted work, trade secret or other intellectual property right of any
      third party. Cypress further represents and warrants that it will perform
      all of its obligations under this Agreement in accordance with all
      applicable laws and regulations.

	 	 
	5.3 	
      THE WARRANTIES CONTAINED HEREIN ARE IN LIEU OF ALL OTHER
      REPRESENTATIONS AND WARRANTIES. CYPRESS AND EZEM HEREBY RESPECTIVELY
      DISCLAIM ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT
      LIMITATION ALL WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT, EXCEPT AS
      OTHERWISE PROVIDED HEREIN, AND FITNESS FOR A PARTICULAR PURPOSE. THE
      DISCLAIMERS OF LIABILITIES AND WARRANTIES CONTAINED IN THIS SECTION ARE
      NOT INTENDED, AND SHALL NOT BE CONSTRUED, TO APPLY TO ANY THIRD PARTY
      CLAIMS INCLUDING, BUT NOT LIMITED TO, CLAIMS BASED IN TORT (SUCH AS
      PRODUCT LIABILITY CLAIMS) FOR BODILY INJURY OR PROPERTY DAMAGE OR TO ANY
      CLAIMS RELATING TO A RECALL OF ANY PRODUCT.

6

	5.4 	
      NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS
      AGREEMENT, NEITHER CYPRESS NOR EZEM SHALL BE LIABLE TO THE OTHER BY REASON
      OF ANY CONDITION OR TERM OR DUTY OF COMMON LAW, OR UNDER THE EXPRESS
      TERMS, REPRESENTATIONS OR WARRANTIES OF THIS AGREEMENT, FOR ANY
      CONSEQUENTIAL, SPECIAL, INCIDENTAL OR PUNITIVE LOSS OR DAMAGE (WHETHER FOR
      LOSS OF CURRENT OR FUTURE PROFITS, LOSS OF ENTERPRISE VALUE OR OTHERWISE)
      AND WHETHER OCCASIONED BY THE NEGLIGENCE OF THE RESPECTIVE PARTIES, THEIR
      EMPLOYEES OR AGENTS OR OTHERWISE, OTHER THAN IN RESPECT OF ANY PROPERTY
      DAMAGE OR BODILY HARM. THE DISCLAIMERS OF LIABILITIES AND WARRANTIES
      CONTAINED IN THIS SECTION ARE NOT INTENDED, AND SHALL NOT BE CONSTRUED, TO
      APPLY TO ANY THIRD PARTY CLAIMS INCLUDING, BUT NOT LIMITED TO, CLAIMS
      BASED IN TORT (SUCH AS PRODUCT LIABILITY CLAIMS) FOR BODILY INJURY OR
      PROPERTY DAMAGE OR TO ANY CLAIMS RELATING TO A RECALL OF
PRODUCT.

	 	 
	5.5 	
      Each of the parties hereto shall indemnify, defend and
      hold harmless the other party from and against all actions, losses,
      claims, demands, damages, costs and liabilities (including reasonable
      attorneys’ fees) to which the other party is or may become liable insofar
      as the foregoing arise out of any breach by the indemnifying party of any
      of its obligations, representations or warranties under this
    Agreement.

	 	 
	5.6 	
      Without limiting Section 5.5, Cypress shall be
      responsible for and shall defend, indemnify and hold EZEM, its affiliates,
      their officers, directors, employees and agents harmless from and against
      any and all claims, demands, actions, suits, losses, damages, costs,
      expenses (including reasonable attorneys’ fees and disbursements) and
      liabilities of whatever kind or nature which may arise from or in
      connection with any activities to be performed by Cypress hereunder or
      from Cypress’ alleged acts and/or omissions in the course of the
      distribution, marketing, or sale of Product, except to the extent that
      such loss, claim, damage or liability is caused by EZEM’S intentional
      misconduct, gross negligence, negligence or breach of this
    Agreement.

	 	 
	5.7 	
      Without limiting Section 5.6, EZEM shall be responsible
      for and shall defend, indemnify and hold Cypress, its affiliates, their
      officers, directors, employees and agents harmless from and against any
      and all claims, demands, actions, suits, losses, damages, costs, expenses
      (including reasonable attorneys’ fees and disbursements) and liabilities
      of whatever kind or nature which may arise from or in connection with any
      activities to be performed by EZEM hereunder or from EZEM’s alleged acts
      and/or omissions in the course of the manufacture of Product, including
      any failure by EZEM to manufacture Product according to the applicable
      specifications, except to the extent that such loss, claim, damage or
      liability is caused by Cypress’s intentional misconduct, gross negligence,
      negligence or breach of this Agreement.

7

	5.8 	
      Each party shall promptly notify the other party (the
      indemnifying party) of each claim, proceeding or threatened claim or
      proceeding for which the indemnifying party may be required to provide
      indemnification hereunder. The failure of a party to so notify the
      indemnifying party shall only relieve the indemnifying party of its
      indemnification obligations hereunder to the extent such failure
      prejudiced the indemnifying party’s ability to defend against a claim or
      proceeding.

	 	 
	5.9 	
      The party seeking an indemnity shall:

	 	 
	5.9.1 	
      permit, where possible, the other party (the indemnifying
      party) to take full control of a claim or proceeding for which the
      indemnifying party is responsible, provided that by so assuming such
      control the indemnifying party thereby admits its indemnification
      obligation hereunder with respect to the claim or proceeding and its
      subject-matter. In the event the other party (the indemnifying party) does
      not take full control of the foregoing claim or proceedings, the party
      seeking indemnity hereunder shall take all reasonable measures necessary
      to work together with the other party (the indemnifying party) in order to
      provide the latter with as much input into, and knowledge and information
      in connection with, the defense against the foregoing claim or
      proceeding;

	 	 
	5.9.2 	
      cooperate with the indemnifying party in the
      investigation and defense of such claim or proceeding;

	 	 
	5.9.3 	
      not compromise or otherwise settle any such claim or
      proceeding without the prior written consent of the other party (the
      indemnifying party), which consent shall not be unreasonably withheld;
      and

	 	 
	5.9.4 	
      take all reasonable steps to mitigate any loss or
      liability in respect of any such claim or proceeding.

	 	 
	5.10 	
      Each party shall maintain throughout the Term and for a
      period of not less than two (2) years following the termination thereof,
      comprehensive general liability insurance, including blanket contractual
      liability and personal injury liability insurance against claims based
      upon product liability for Product and against other claims covered in an
      amount of not less than five million dollars ($5,000,000.00) combined
      single limit. Such insurance shall be written with a responsible and
      reputable insurer reasonably acceptable to the other party.

	 	 
	6. 	
      MISCELLANEOUS PROVISIONS

	 	 
	6.1 	
      Each party will maintain confidential the confidential
      and proprietary information of the other party and will not use the same
      except in the performance of its obligations hereunder.

	 	 
	6.2 	
      The parties hereto shall co-operate in good faith,
      particularly with respect to unanticipated problems or contingencies, and
      shall perform their respective obligations in good faith and in a
      commercially reasonable, diligent and workmanlike
manner.

8

	6.3 	
      EZEM agrees that unless it has obtained the prior written
      consent of Cypress, it will not manufacture or develop for sale in the
      United States any product that is the generic equivalent of Product and is
      produced in the same dosage and form as Product. In addition, the
      foregoing shall not prohibit any affiliate of EZEM (including its parent
      corporation, E-Z-EM, Inc.) from developing, manufacturing, marketing
      and/or selling any products that are within, or are reasonable extensions
      of such party’s current lines of business. Otherwise, Cypress hereby
      acknowledges that EZEM is a contract manufacturer and nothing in this
      Agreement shall be interpreted or construed as restricting, in any manner
      whatsoever, EZEM from manufacturing other products for third parties that
      may be similar, but not therapeutically equivalent, to the
  Product.

	 	 
	6.4 	
      Each party hereto shall promptly notify the other if it
      becomes aware of any claim or threatened or likely claim that the Product,
      or any of its components, or the development, manufacture, use or sale
      thereof infringes a patent or other intellectual property right of any
      third party.

	 	 
	6.5 	
      This Agreement may not be assigned by either party
      without the prior written consent of the other party, which consent may
      not to be unreasonably withheld.

	 	 
	6.6 	
      Neither party hereto shall be liable to the other for
      delay or failure in the performance of the obligations on its part
      contained in this Agreement if and to the extent that such failure or
      delay is due to terrorism, war, riots, fire, earthquakes, hurricanes,
      strikes, work stoppages, other labor disruptions, supplier disruptions,
      materials shortages or other acts of God the results of which could not
      have been avoided by the exercise of reasonable diligence. Nothing in this
      Section 6.6 is intended, nor shall it be construed, to lessen or otherwise
      affect Cypress’ rights to seek alternate suppliers for Product and other
      relief pursuant to the terms of Section 3.2 above, even if EZEM’s
      inability to supply the required quantities of Product was caused by one
      of the circumstances recited in the Section 6.6.

	 	 
	6.7 	
      It is expressly agreed that EZEM and Cypress shall be
      independent contractors, and nothing contained in this Agreement is
      intended or is to be construed to constitute EZEM and Cypress as partners
      or members of a joint venture or either party hereto as an employee of the
      other. Neither party hereto shall have any express or implied right or
      authority to assume or create any obligations on behalf of or in the name
      of the other party or to bind the other party to any contract, Agreement
      or undertaking with any third party.

	 	 
	6.8 	
      Any notice to be given under this Agreement shall be sent
      in writing in English by registered airmail to the address referred to on
      page 1 above.

9

	6.9 	
      Upon the terms and subject to the conditions hereof, each
      of the parties hereto shall use its commercially reasonable efforts to:
      (i) take, or cause to be taken, all appropriate action and do, or cause to
      be done, all things necessary, proper or advisable under applicable law or
      otherwise to consummate and make effective the transactions contemplated
      by this Agreement, (ii) obtain from competent authorities any consents,
      licenses, permits, waivers, approvals, authorizations or orders required
      to be obtained or made by the parties hereto in connection with the
      authorization, execution and delivery of this Agreement and the
      consummation of the transactions contemplated by this Agreement.

	 	 
	6.10 	
      This Agreement (including the Schedules attached hereto)
      sets forth the full Agreement between the parties hereto with respect to
      the subject matter hereof and supersedes and terminates all prior
      Agreements and understandings between the parties related to the supply of
      Product.

	 	 
	6.11 	
      This Agreement may be executed in two or more
      counterparts, each of which shall be deemed an original, but all of which
      together shall constitute one and the same
instrument.

[Signature Page to Follow]

10

IN WITNESS WHEREOF, THE PARTIES HERETO HAVE EXECUTED THIS
AGREEMENT.

	CYPRESS PHARMACEUTICALS, INC. 	 	THERAPEX, a division of E-Z-EM 
	  	 	CANADA INC. 
	  	 	  
	  	 	  
	Per: /s/ Max
      Draughn 	 	Per:
      /s/ Paul Salloum 

[Signature Page – Manufacturing and Supply Agreement]

SCHEDULE A

PRODUCT

Granisol® (Granisetron HCl) Oral Solution
30 mL

	Product 	Price (as of July22, 2010) 
	Granisol ® (Granisetron HCl) Oral 
Solution
      30 mL 	<>

	To be packaged in 30 mL bottles with child resistant caps, labels, product
  inserts, unit cartons, shipper for 24 units and a shipping label. 

PACKAGING/TRADE DRESS

EZEM shall assure that the packaging and trade dress for the
above Product shall be in conformity with specifications/exemplars in the
then-current ANDA.

FINANCIAL PROVISIONS DELIVERY & PAYMENT TERMS

Payment due net thirty (30) days. 
Delivery: FOB EZEM’s
warehouse.
 Shipping at the expense of Cypress.

12

SCHEDULE B

QUALITY AGREEMENT

BETWEEN:

	(1) 	
      CYPRESS PHARMACEUTICALS, INC., a. company
      incorporated under the laws of Mississippi, with offices at 135 Industrial
      Boulevard, Madison, MS 39110 U.S.A. (“CYPRESS”); and

	 	 
	(2) 	
      E-Z-EM CANADA INC., a company incorporated under
      the laws of Canada, with offices at 11065 Louis-H. Lafontaine Blvd.,
      Anjou, Quebec, H1J 2Z4, Canada. (“EZEM”)

dated as of this 22nd day of July, 2010 (the “Effective
Date”).

This Agreement pertains to products which are Granisol
® (Granisetron HCl) Oral Solution 30 mL (“Products”)
manufactured for CYPRESS by EZEM. This Agreement shall be amended as products
are added or deleted.

EZEM has the responsibility to manufacture and test Products in
compliance with the Regulations and within Registration documentation (ANDA)
submitted to the FDA (where applicable) and shall supply Product that meets
criteria and complies with the Regulations throughout its shelf life.

EZEM Contacts:

	Name: 	Emilie
      Rondeau 	 	Title: 	Manager, Contract Manufacturing 
	Name: 	Paul
      Salloum 	 	Title: 	Vice-President, General Manager 
	Name: 	Marcelle Desroches 	 	Title: 	Senior
      Dir., Scientific Operations 
	  	ADVERSE EVENT ONLY 	 	  	 
    

	A. 	
      Introduction

	 	 
		
      The purpose of this Agreement is to define and establish
      the obligations and responsibilities of CYPRESS and E-Z-EM relating to the
      quality assurance requirements of the manufacture, packaging, testing, and
      release by E-Z-EM of Product and the supply to CYPRESS of Product in
      accordance with current Good Manufacturing Practices (cGMPs), the
      Regulatory Application (RA) and with the Chemistry, Manufacturing and
      Controls (CMC) as communicated to E-Z-EM by CYPRESS. The Quality Assurance
      Department of each of the parties is located at the addresses
  above.

13

		
      This Agreement shall come into effect on the date of the
      last of the parties to sign on the front page of this agreement. The
      parties may review their quality assurance procedures from time to time as
      appropriate and to assure compliance with the Regulations.

	 	 	 	 
		
      CYPRESS and EZEM are responsible as defined in this
      document for the steps involved in manufacture, testing, packaging, and
      release to CYPRESS of Product.

	 	 	 	 
		
      This Agreement shall be accessible to Regulatory Agencies
      as required.

	 	 	 	 
	B. 	
      Compliance to The Product Registration and the
      Process

	 	 	 	 
		1. 	
      Technical Changes

	 	 	 	 
			(a) 	
      All proposed process changes will be communicated to
      CYPRESS for initial review and approval of the changes. This will enable
      EZEM/CYPRESS to assure changes are handled in compliance with cGMP, and
      will allow EZEM to maintain adequate control over the quality commitments
      in the ANDA made to the FDA (where applicable) by CYPRESS.

	 	 	 	 
			(b) 	
      Where required, following validation of a process change,
      EZEM will supply a copy of the related validation report to CYPRESS and,
      if applicable, associated stability data, AS it becomes
  available.

	 	 	 	 
			(c) 	
      EZEM is responsible for maintaining a system to implement
      compendial changes of the finished Product and ingredients that are
      utilized in the manufacture of the Product and for notifying CYPRESS of
      any required changes.

	 	 	 	 
		2. 	
      Labeling/Packaging Material Changes

	 	 	 	 
			
      EZEM will initiate changes or review any CYPRESS proposed
      changes and indicate when the change may be implemented.

	 	 	 	 
		3. 	
      Change Control

	 	 	 	 
			
      EZEM will inform CYPRESS of any planned changes in
      facilities or equipment that could impact CYPRESS product, prior to
      implementation of the changes.

	 	 	 	 
		4. 	
      While Cypress has the right to approve any changes
      pursuant to this Section B, nothing herein shall be construed to lessen
      EZEM’s ultimate responsibility to assure compliance with the
      Regulations.

	 	 	 	 
	C. 	
      Batch Release

	 	 	 	 
		1. 	
      Batch review and release to distribution will be the
      responsibility of EZEM who will act in accordance with the requirements of
      EZEM SOPs, which must be in compliance with the ANDA (where applicable)
      and the Regulations. CYPRESS will be responsible for releasing, storing and
  distributing the product on the market.

14

		2. 	
      For each batch released by EZEM, a “Certificate of
      Analysis”, which will include testing results, is generated indicating the
      batch has been manufactured according to the terms of cGMPs and the
      specifications as approved by the FDA (where applicable). EZEM shall
      provide a written Certificate of Analysis to CYPRESS prior to or with its
      shipment of any Product (batches of lots) to CYPRESS.

	 	 	 	 
		3. 	
      E-Z-EM will ensure that the Products are delivered under
      the conditions specified by CYPRESS such that the quality and integrity of
      the Products are not compromised.

	 	 	 	 
		4. 	
      EZEM must have a formal re-assessment policy and
      procedure in place that is in accordance with applicable
    regulations.

	 	 	 	 
		5. 	
      EZEM will notify CYPRESS in the event of any
      deviations/significant problems during manufacturing and/or testing in any
      batch of Product.

	 	 	 	 
		6. 	
      While Cypress may specify delivery conditions (subpart 3)
      and EZEM must notify Cypress of manufacturing problems (subpart 5),
      nothing herein shall be construed to lessen EZEM’s ultimate responsibility
      to assure compliance with the Regulations.

	 	 	 	 
	D. 	
      Batch Documentation

	 	 	 	 
		1. 	
      Originals of all batch documents will be retained by EZEM
      according to 21 CFR 211.180 (i.e., 1 year past the expiration date of each
      batch) and EZEM requirements. Raw Material records will be kept for a
      minimum of seven (7) years. All batch information and documentation shall
      be created and maintained in compliance with the Regulations.

	 	 	 	 
		2. 	
      In case of a specific request from CYPRESS, EZEM agrees
      to provide a copy of any of the following batch documents for
    CYPRESS:

	 	 	 	 
			
      	

	
      Analytical and Microbiological Test Results (Finished
      Product and In- Process)

			
      	

	
      Deviation Reports

			
      	

	
      Executed Batch Record

			
      	

	
      Inspection Reports

			
      	

	
      Investigation Reports

			
      	

	
      Label Room Samples

			
      	

	
      Line Clearances

			
      	

	
      Packaging Samples

			
      	

	
      Reconciliation Sheets (Coded Material, Packaging,
      Yield)

			
      	

	
      Rejects Record

			
      	

	
      Temperature Charts

			
      	

	
      Weighing Records of Active Drug Substances and
      Excipients

15

	E. 	
      Stability

	 	 	 
		1. 	
      EZEM is responsible for having a written testing program
      in place to ensure that Product released will meet all criteria throughout
      its shelf life.

	 	 	 
		2. 	
      EZEM is responsible for performing stability e.g. on the
      first three (3) commercial lots and one (1) production lot per year.
      Samples shall be stored and tested at appropriate intervals, as described
      in an approved stability protocol.

	 	 	 
		3. 	
      The program including frequency of reporting shall be
      agreed between E-Z-EM and CYPRESS prior to implementation.

	 	 	 
		4. 	
      If a confirmed result indicates the Product has failed to
      remain within specifications, EZEM will notify CYPRESS. Notification will
      include a copy of the Investigation Report or information on corrective
      action. A confirmed result is one which cannot be invalidated by a
      laboratory investigation.

	 	 	 
		5. 	
      All stability studies and testing as well as all
      documentation of same shall be conducted, created and maintained by EZEM
      in compliance with the Regulations.

	 	 	 
	F. 	
      Reserve Samples

	 	 	 
		
      EZEM shall retain under proper storage conditions a
      representative samples of active ingredients and Drug Product as required
      to comply with Retain Sample Requirements in 21 CFR 211.170 and/or
      Application Commitments (where applicable) but in all events EZEM will
      assure compliance with the Regulations.

	 	 	 
	G. 	
      Complaints files

	 	 	 
		1. 	
      Product Complaint Reports received by CYPRESS from its
      customers will be sent to EZEM. Product Complaint Reports requiring Heath
      Authority reporting will be promptly communicated to CYPRESS and CYPRESS
      will notify Authorities of such reports.

	 	 	 
		2. 	
      EZEM will investigate all Product complaints relating to
      the Products, where such complaints may be attributable to the
      manufacturing stages carried out by E-Z-EM and provide CYPRESS with a
      written report as per SOP (CYPRESS will respond as appropriate to a
      complainant). Upon request, CYPRESS will provide EZEM with confirmation of
      closeout for individual complaints.

	 	 	 
	H. 	
      Recall

	 	 	 
		1. 	
      EZEM has the responsibility to provide any data or
      information related to Product recalls within an agreed upon time frame.
      CYPRESS and EZEM will consult and cooperate on any recall decision with
      the goal of reaching an agreement; however, CYPRESS has the final decision
      on recalling any Product.

16

	 	2. 	
      E-Z-EM shall inform CYPRESS immediately (within 24 hours)
      of any deviation that may cause the recall of any batch of the Products
      released to the market and/or shipped to CYPRESS. E-Z-EM shall not
      initiate a product recall.

	 	 	 
	 	3. 	
      CYPRESS must forward to EZEM a copy of any regulatory
      field alerts before or at the time that the alert is sent to the
    FDA.

	 	 	 
	 	4. 	
      CYPRESS shall handle the management of any recall of
      Products and any contacts with the Regulatory Authorities relating to such
      recalls.

	 	 	 
	 	5. 	
      All costs of any Product recall shall be borne by the
      party responsible for the circumstance that required the recall. All costs
      of any recall necessitated by problems with raw materials, packaging,
      labeling, manufacturing or other conditions occurring or set in motion
      prior to delivery of the Products by EZEM to Cypress’ common carrier shall
      be borne by EZEM. All costs of any recall necessitated by marketing,
      sales, distribution methods or other conditions occurring or set in motion
      by Cypress shall be borne by Cypress.

	I. 	
      Annual Product Review

	 	 	 
		
      EZEM will provide to CYPRESS an Annual Product Review,
      which will contain:

	 	 	 
		
      	

	
      Total number of batches manufactured, number of batches
      reworked, number of batches rejected, and number of batches
  recalled

		
      	

	
      Complaints trends and/or summaries

		
      	

	
      A listing and review of manufacturing process and
      specification changes

		
      	

	
      Results of visual inspection of retained
samples

		
      	

	
      Finished product analytical results and physical data
      including any results and investigations

		
      	

	
      Process deviations/investigations (including OOS - out of
      specifications)

		
      	

	
      Stability Summary Report. The report should contain
      cumulative tabular result information on all active studies with a written
      summary attesting the ongoing acceptability of the Product.

		
      	

	
      Discussion, evaluation and conclusions

	 	 	 
	J. 	
      Audits / Inspection Reports

	 	 	 
		
      1. 
	EZEM has a written self-inspection program. The agendas
      of such inspection can be reviewed during an audit.
	 	 	 
		
      2. 
	Upon request, EZEM shall provide CYPRESS copies of
      Inspection Reports. CYPRESS will provide EZEM with information relating to
      Inspection Reports concerning Product manufactured by EZEM for
  CYPRESS.
	 	 	 
		
      3. 
	CYPRESS can schedule periodic Quality and compliance
      audits of EZEM facilities upon reasonable notice.

17

		4. 	
      In the event that a government authority request CYPRESS’
      product information, EZEM must notify immediately CYPRESS of such request
      to obtain authorization of such review.

	 	 	 
	K. 	
      Supplier Qualification

	 	 	 
		
      Selection, qualification, and management of
      sub-Contractors are the responsibility of EZEM, unless otherwise agreed
      upon. EZEM must notify CYPRESS of proposed changes on raw materials and
      components.

	 	 	 
	L. 	
      Training

	 	 	 
		
      Each person engaged and/or responsible in the
      manufacturing, processing, or holding of a drug product shall have
      education, training, and experience, or any combination thereof, to enable
      that person to perform the assigned functions. Training shall be in the
      particular operations that the employee performs and in current applicable
      manufacturing regulations as they relate to the employee’s functions.
      Training in applicable current good manufacturing practice shall be
      conducted by qualified individuals on a continuing basis and with
      sufficient frequency to assure that employees remain familiar with
      requirements applicable to them. This training must be documented in a
      training record for each employee.

	 	 	 
	M. 	
      Validation

	 	 	 
		
      EZEM must maintain a Validation Master Plan to describe
      the commitment to perform the validation of its facility and processes
      with cGMP and to maintain control over all systems and processes already
      validated.

	 	 	 
		
      The Validation Master Plan covers all activities related
      to Equipment, Services, Processes, Analytical Methods, Electronic Records
      and Electronic Signatures that may have an impact on the finished
      product.

	 	 	 
	N. 	
      FDA Interaction

	 	 	 
		
      EZEM is responsible for FDA District activities

	 	 	 
		
      CYPRESS must be involved and is responsible for all
      Product-specific questions raised by the FDA
District.

* * * * * * * * * * * * * * * * *

18

     The parties, as indicated by
their signatures below, accept the foregoing terms and conditions:

	E-Z-EM CANADA
      INC. 	 	CYPRESS
      PHARMACEUTICALS, INC. 
	 	 	 	 	 
	 Name: 		 	 Name: 	
	 	 	 	 	 
	 	 	 	 	 
	 Title: 		 	 Title: 	
	 	 	 	 	 
	 	 	 	 	 
	 Signature: 		 	 Signature: 	
	 	 	 	 	 
	 	 	 	 	 
	 Date: 		 	 Date: 	

19EXHIBIT 10.1

 

 

1700 Carnegie Ave.

Santa Ana, CA 92705

 

July 27, 2010

 

Mr. Abbas
Mohaddes

3432
Seaglen Drive

Rancho
Palos Verdes, CA 90275

 

Dear
Abbas:

 

On
behalf of the Board of Directors and the Compensation Committee of Iteris, Inc.
(“Iteris” or the “Company”), I am pleased to present you with this letter
agreement, which provides for certain compensation terms in connection with
your continued employment with Iteris.

 

In
addition to your base salary and annual bonus, and subject to all necessary
Board or committee approval, we intend to issue you a restricted stock unit
award (the “RSU”) covering 50,000 shares of Iteris’ common stock.  The RSU will have a four-year vesting period
and be subject to the terms of the 2007 Omnibus Incentive Plan and the related
grant documents.  We believe that the RSU
will even further align your personal and professional objectives with those of
the Company and its stockholders.

 

For a period of three years from your acceptance of this
letter agreement (the “Term”), should your employment at Iteris be terminated
by the Company and such termination is not for cause (as defined in Attachment
A) or due to death or disability, you shall receive salary continuation
payments consisting of the monthly rate of your then current base salary for a
period of twelve (12) months.  In
addition, you shall be entitled at the end of that continuation period to
receive a payment in lieu of bonus of 50% of your on-target bonus amount as in
effect immediately prior to your termination.

 

In the event of the termination of your employment due
to death or disability during the Term, in addition to the payment of any
compensation earned through the date of the termination, you will receive a one
year acceleration of the vesting of any unvested options or other equity-based
awards then held by you (including the RSU described above).

 

We
have also included with this letter as Attachment B, a Change in Control
Agreement which provides for certain benefits and payments in the event of your
involuntary termination after a change in control (as such terms are defined in
the Change in Control Agreement).  If a
change in control occurs 

 

 

prior
to the date which is three years from the date of your acceptance of this
letter agreement, the amount of any severance or similar payments and benefits
payable to you, and whether any such payments or benefits will be payable, will
be determined pursuant to the Change in Control and not pursuant to the terms
of this letter agreement.

 

In
signing this letter, you agree that you will perform your duties faithfully and
to the best of your abilities, and you agree to devote your full business time
and effort to the performance of your duties.

 

This
letter agreement (including the attachments hereto and the other documents
referenced therein), the Company’s Non-Competition Agreement, any
confidentiality agreement, proprietary information and inventions agreement or
other similar agreements, and the Company’s equity incentive plans constitutes
the complete agreement between the parties with respect to the subject matter
hereof and thereof and supersedes any prior written or verbal agreement
relating to such matter, including your offer letter dated February 2007.  No modification, amendment, or waiver of any
of the provisions contained in this letter agreement shall be binding upon any
party to this letter agreement unless made in writing and signed by such party
or by a duly authorized officer or agent of such party.  This letter agreement may only be modified by
a written agreement signed by you and the Chairman of the Board of Directors or
the Chairman of the Compensation Committee, or either such person’s designated
representative.  This letter agreement
will be governed by California law without regard to the conflicts of law
provisions thereof.

 

Please
confirm your concurrence with this letter by signing and returning one copy of
this letter.

 

FOR
THE COMPENSATION COMMITTEE

OF
THE BOARD OF DIRECTORS OF ITERIS, INC.:

 

	
  

  	
   

  	
   

  
	
  Kevin
  C. Daly

  	
   

  	
   

  
	
  Chairman

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  ABBAS MOHADDES

  	
   

  	
  July 27,
  2010

  
	
  Abbas
  Mohaddes

  	
   

  	
  Date

  

 

 

Attachment A — Termination For Cause

 

Iteris
shall have the right to immediately terminate your employment by written notice
to you upon a good faith finding by Iteris or its Board of Directors, in its
reasonable judgment, of any of the following occurrences:

 

1.               your conviction of (a) a
felony, or (b) another serious crime involving material harm to the
standing or reputation of Iteris;

 

2.               your willful misconduct or
negligence in the performance of your duties for Iteris which causes material
harm to Iteris;

 

3.               your intentional conduct
bringing Iteris into public disgrace or disrepute, including, but not limited
to, dishonesty, fraud, material and deliberate injury or attempted injury, in
each case related to Iteris or its business;

 

4.               your material breach of any
of the terms or conditions of this Agreement or the Non-competition Agreement
which, if curable, is not cured to Iteris’s reasonable satisfaction within
fifteen (15) days (or such other time period as the parties may mutually agree
in writing) of written notice thereof; or

 

3

 

Attachment B — Change in Control Agreement

 

CHANGE IN CONTROL AGREEMENT

 

THIS
CHANGE IN CONTROL AGREEMENT (the “Agreement”) is entered into as of July 27,
2010 (the “Effective
Date”), by and between Abbas Mohaddes (the “Employee”) and Iteris, Inc.,
a Delaware corporation (the “Corporation”).

 

Section 1.                                            Term of
Agreement.

 

This
Agreement shall take effect on the Effective Date and shall expire on the
earlier of (i) the fifth anniversary of the Effective Date, or (ii) the
date Employee’s employment with the Corporation terminates for any reason other
than an Involuntary Termination (as defined herein) that is in connection with
or within twelve (12) months following a Change in Control.

 

Section 2.                                            Definitions.

 

(a)                                  “Change in Control” shall mean any
of the following transactions effecting a change in ownership or control of
this Corporation:

 

(i)                                     a merger or consolidation
of the Corporation with or into another entity or any other corporate
reorganization, if persons who were not stockholders of the Corporation
immediately prior to such merger, consolidation or other reorganization own
immediately after such merger, consolidation or other reorganization 50% or
more of the voting power of the outstanding securities of each of (i) the
continuing or surviving entity and (ii) any direct or indirect parent
corporation of such continuing or surviving entity.

 

(ii)                                  The sale,
transfer or other disposition of all or substantially all of the Corporation’s
assets;

 

(iii)                               the
acquisition, directly or indirectly, by any person or related group of persons
(other than the Corporation or a person that directly or indirectly controls,
is controlled by or in under common control with, the Corporation), of “beneficial
ownership” as defined in Rule 13d-3 under the Securities Exchange Act of
1934, as amended (the “Exchange
Act”), of securities of the Corporation representing at least
50% of the total combined voting power represented by the Corporation’s then
outstanding voting securities.  For
purposes of this subsection, the term “person” shall have the same meaning as when
used in Sections 13(d) and 14(d) of the Exchange Act but shall
exclude (i) a trustee or other fiduciary holding securities under an
associate benefit plan of the Corporation or of a Parent or Subsidiary and (ii) a
corporation owned directly or indirectly by the stockholders of the Corporation
in substantially the same proportions as their ownership of the common stock of
the Corporation.

 

Notwithstanding
anything to the contrary contained herein, a Change in Control be not be deemed
to occur in connection with any underwritten public offering of the Corporation’s
securities.

 

(b)                                 “Involuntary Termination” shall mean the
termination of the Service of any individual which occurs by reason of:

 

(i)                                     Employee’s
involuntary dismissal or discharge by the Corporation for reasons other than
Willful Misconduct, or

 

4

 

(ii)                                  Employee’s
voluntary resignation following (A) a change in his position with the
Corporation which materially reduces his level of responsibility, (B) a
material reduction in his level of compensation (including base salary, fringe
benefits and participation in bonus or incentive programs) or (C) a
relocation of Employee’s place of employment by more than fifty (50) miles,
provided and only if such change, reduction or relocation is effected by the
Corporation without the Employee’s consent. 
Notwithstanding the foregoing, for purposes of clause (ii), an
Involuntary Termination shall only be found to exist if Employee has provided
written notice to the Corporation indicating and describing the event under
(A), (B) or (C) within 30 days of such event and the Corporation does
not cure such event within 90 days following the receipt of such notice from
Employee and the Employee resigns within 30 days after the cure period.

 

(c)                                  “Willful
Misconduct” shall mean (i) the
misappropriation of the Corporation’s funds or property, or any attempt by
Employee to secure any personal profit related to the business or business
opportunities of the Corporation without the informed, written approval of the
Audit Committee of the Corporation’s Board of Directors; (ii) any
unauthorized use or disclosure by such person of confidential information or
trade secrets of the Corporation (or any Parent or Subsidiary); (iii) gross
negligence or reckless or willful misconduct in the performance of Employee’s
duties; (iv) the failure to perform, or continuing neglect in the
performance of, duties assigned to Employee for at least ten (10) days
after receipt by Employee from the Corporation of prior written notice of such
failure or neglect; (v) the conviction of, or plea of nolo contendre to, any felony or
misdemeanor involving moral turpitude or fraud; or (vi) any other willful
misconduct by Employee that the Board determines in good faith has had a
material adverse effect upon the business or reputation of the Corporation.

 

(d)                                 “Annual Base Pay” shall mean
Employee’s base salary at the highest rate in effect at any regularly scheduled
payroll period preceding the occurrence of the Change in Control and does not
include, for example, bonuses, overtime compensation, incentive pay, sales
commissions or expense allowances.

 

(e)                                  “Target Bonus” shall mean 50%
of the bonus potential established for the Employee by the Corporation for the
applicable fiscal year.

 

Section 3.                                            Severance
Payment; Employment at Will.

 

(a)                                  Entitlement to
Payment.   Employee’s
employment with the Corporation is at will, which means that it is not for a
specific term and may be terminated by either the Corporation or the Employee,
at any time, for an reason, without advance notice.  Similarly, the Corporation may change the
terms and conditions of Employee’s employment at any time, for any reason,
without notice.  Notwithstanding the
foregoing, subject to Section 9, the Employee shall be entitled to receive
a severance payment from the Corporation under this Agreement (the “Severance Payment”)
if, the Employee is Involuntarily Terminated in connection with or within
twelve (12) months after a Change in Control. 
Employee understands, agrees and acknowledges that as a condition precedent
to receiving any of the Severance Payments and other benefits set forth in this
Agreement, Employee agrees to sign a Release in accordance with Section 9
herein.

 

(b)                                 Time and Amount
of Payment   The
Severance Payment shall be paid in one lump sum starting with the next normally
scheduled payroll date of the Corporation following the latest of the following
dates:  (i) Employee’s last day of
employment, (ii) the date the Corporation receives Employee’s signed
general release of all claims pursuant to Section 9, or (iii) the
date the revocation period (if any) specified in the general release of all
claims expires.  The amount of the
Severance Payment shall be equal to the following:

 

·                  100% of the Employee’s Annual Base Pay, plus

·                  50% of Employee’s Target Bonus for the
current fiscal year

 

5

 

Notwithstanding
the foregoing, in the event the Involuntary Termination is the result of
Employee’s voluntary termination of employment with the Corporation and such
termination does not occur within the first six months following the completion
of the transaction giving rise to the Change in Control, Employee shall only be
entitled to 50% of Employee’s Annual Base Pay and no portion of Employee’s
Target Bonus.  Payments made under this
Agreement shall not be treated as “compensation” for purposes of the 401(k) Profit
Sharing Plan.  Employee will also receive
his unpaid salary through his termination date and a lump sum payment for all
accrued and unused vacation (through the termination date) in a final paycheck
provided on his last day of work.  This
Severance Payment is intended to qualify as an involuntary separation pay
arrangement that is exempt from application of Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”) because all severance payments
are treated as paid on account of an involuntary separation (including a
voluntary separation for good reason) and paid in a lump sum within the “short-term
deferral” period following the time the Employee obtains a vested right to such
payments.

 

(c)                                  Mitigation and
Reemployment.   The
Employee shall not be required to mitigate the amount of any payment
contemplated by this Section 3 (whether by seeking new employment or in
any other manner), nor shall any such payment be reduced by any earnings that
the Employee may receive from any other source.

 

Section 4.                                            Payments
Unfunded and Non-Assignable.

 

(a)                                  No Funding.   Any payments to be made under Section 4
shall represent an unfunded and unsecured obligation of the Corporation, which
shall represent an unfunded and unsecured obligation of the Corporation’s
general assets.  The Employee shall be
considered a general creditor of the Corporation and shall have no rights to
any segregated funds or property of the Corporation.

 

(b)                                 No Assignment.   The Employee’s right to payments under this
Agreement shall not be made subject to option or assignment, either by
voluntary or involuntary assignment or by operation of law, including (without
limitation) bankruptcy, garnishment, attachment or other creditor’s process,
and any action in violation of this Section 4(b) shall be void.

 

Section 5.                                            Group Insurance
Coverage.   If the
Employee becomes entitled to a Severance Payment under this Agreement, then the
Corporation shall continue to provide continued group health coverage, as
otherwise required under applicable stated continuation law and the
Consolidated Omnibus Budget Reconciliation Act of 1986, as amended and all
applicable regulations (“COBRA”).  Provided that the Employee makes the
necessary COBRA elections and payments, the Corporation shall reimburse
Employee for the total applicable premium costs paid by Employee for such
health COBRA continuation coverage for Employee (and if applicable Employee’s
dependents) until the earlier of (i) twelve months after the termination
of Employee’s employment, or (ii) the maximum COBRA period.  The Corporation’s obligation to reimburse
premiums under this Section shall cease when the Employee obtains new
employment offering healthcare benefits.

 

Section 6.                                            Tax Effect of
Payments.

 

(a)                                  The amount of
any cash payment to be received by Employee pursuant to Section 2 of this
Agreement shall be reduced (but not below zero) to the extent required so that
no portion of any payment or benefit in the nature of compensation received or
to be received by Employee (whether payable pursuant to the terms of this
Agreement or pursuant to any other plan, contract, agreement or arrangement
with the Corporation or any other person) (Such payments or benefits are
referred to collectively as the “Total Payments”) shall be treated as an “excess
parachute payment” within the meaning of Section 280G(b)(1) of the
Code.

 

6

 

(b)                                 The
determination of whether any reduction in payments is required pursuant to Section 6(a) of
this Agreement shall be made in writing by the Corporation’s independent public
accountants, or such other independent accounting firm or tax advisors selected
by the Corporation in its sole discretion (the “Accounting Firm”), whose determination
shall be conclusive and binding upon Employee and the Corporation for all
purposes under this Agreement.  For
the  purposes of making the calculations
required by this Section 6, the Accounting Firm may make reasonable
assumptions and approximations and may rely on reasonable, good faith
interpretations concerning the application of Section 280G and 4999 of the
Code, applicable regulations and other authority.  The Corporation and the Employee shall
furnish to the Accounting Firm such information and documents as the Accounting
Firm may reasonably request in order to make a determination under this
Section.  The Accounting Firm shall
provide detailed supporting calculations, in writing, to both the Corporation
and the Employee of determinations made pursuant to this Section 6.  The Corporation shall bear all of the costs
that the Accounting Firm may reasonably incur in connection with any
calculations contemplated by this section.

 

(c)                                  In the event of
any uncertainty as to whether a reduction in payments to Employee is required
pursuant to Section 6(a) of this Agreement, the Corporation shall
initially make the payment to Employee, and Employee shall be required to
refund to the Corporation any amounts ultimately determined not to have been
payable under the terms of this Agreement.

 

Section 7.                                            Successors.

 

(a)                                  Corporation’s
Successors.   The
Corporation shall require any successor (whether direct or indirect and whether
by purchase, lease, merger, consolidation, liquidation or otherwise) to all or
substantially all of the Corporation’s business and/or assets to assume this
Agreement and to agree expressly and in writing to perform this Agreement in
the same manner and to the same extent as the Corporation would have been
required to perform it in the absence of a succession.  The Corporation’s failure to obtain such an
assumption prior to the effectiveness of a succession shall be a breach of this
Agreement and shall result in Employee’s Involuntary Termination
hereunder.  For all purposes under this
Agreement, the term “Corporation”
shall include any successor to the Corporation’s business and/or assets that
executes and delivers the assumption agreement described in this Section 7(a) or
that becomes bound by this Agreement by operation of law.

 

(b)                                 Employee’s
Successors.   This
Agreement and all rights of the Employee hereunder shall inure to the benefit
of, and be enforceable by, the Employee’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.

 

Section 8.                                            Miscellaneous
Previsions

 

(a)                                  No Waivers.   No provision of this Agreement shall be
modified, waived or discharged unless the modification, waiver or discharge is
agreed to in writing and signed by the Employee and by an authorized officer of
the Corporation (other than the Employee). 
No waiver by either party of any breach of, or of compliance with, any
condition or provision or of the same condition or provision at another time.

 

(b)                                 Choice of Law.   The validity, interpretation, construction
and performance of this Agreement shall be governed by the laws of the State of
California.

 

7

 

(c)                                  Severability.   The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision hereof, which shall remain in full force
and effect.

 

(d)                                 Arbitration.   Except for responsibilities assigned to the
Accounting Firm under Section 6, and except for the right of the
Corporation and the Employee to seek injunctive relief in court, any
controversy, claim or dispute of any type arising under or relating to Employee’s
employment or the provisions of this Agreement shall be resolved in accordance
with this Section 8(d) of this Agreement, regarding resolution of
disputes, which will be the sole and exclusive procedure for the resolution of
any such disputes.  This Agreement shall
be enforced in accordance with the Federal Arbitration Act, the enforcement
provisions of which are incorporated by this reference.  Matters subject to those provisions include,
without limitation, claims or disputes based on statute, contract, common law
and tort and will include, for example, matters pertaining to termination,
discrimination, harassment, compensation and benefits.  Matters to be resolved under these procedures
also include claims and disputes arising out of statues such as the Fair Labor
Standards Act, Title VII of the Civil Rights Act, the Age Discrimination in
Employment Act, the California Labor Code, and the California Fair Employment
and Housing Act.  Nothing contained in this
provision is intended to restrict Employee from submitting any matter to an
administrative agency with jurisdiction over such matter.

 

(1)                                  Mediation.  The Corporation and Employee will make a good
faith attempt to resolve any and all claims and disputes relating to the
subject matter of this Agreement through good faith negotiations. If such
claims and disputes cannot be settled through negotiation, the Corporation and
Employee agree to submit them to mediation in Orange County, California before
resorting to arbitration or any other dispute resolution procedure.  The mediation of any such claim or dispute
must be conducted in accordance with the then current JAMS procedures for the
resolution of employment disputes by mediation, by a mediator who has both
training and experience as a mediator of general employment and commercial
matters.  If the parties to this
Agreement cannot agree on a mediator, then the mediator will be selected by
JAMS in accordance with JAMS’ strike list method.  Within thirty (30) days after the selection
of the mediator for one mediation session of at least four (4) hours.  If the claim or dispute cannot be settled
during such mediation session or mutually agreed continuation of the session,
either the Corporation or Employee may give the mediator and the other party to
the claim or dispute written notice declaring the end of the mediation
process.  All discussion connection with
this mediation provision will be confidential and treated as compromise and
settlement discussions.  Nothing
disclosed in any such discussion, which is not independently discoverable, may
be used for any purpose in any later proceeding.  The mediator’s fees will be paid in equal
portions by the Corporation and the Employee, unless the Corporation agrees to
pay all such fees.

 

(2)                                  Arbitration.  If a claim or dispute relating to the subject
matter of this Agreement has not been resolved in accordance with Section 8(d)(1) above,
then the claim or dispute will be determined by arbitration in accordance with
the then current JAMS employment arbitration rules and procedures, except
as modified herein.  The arbitration will
be conducted in Orange County, California by a sole neutral arbitrator who has
training and experience as an arbitrator of general employment and commercial
matters.  If the Corporation and Employee
cannot agree on an arbitrator, then the arbitrator will be selected by JAMS in
accordance with Rule 12 of the JAMS employment arbitration rules and
procedures.  No person who has served as
a mediator under the mediation provision above, however, may be selected as the
arbitrator for the same claim or dispute. 
Reasonable discovery will be permitted and the arbitrator may decide any
issue as to discovery.  The arbitrator
may decide any issue as to whether or as to the extent to which any dispute is
subject to the dispute resolution provisions in Section 8, and the
arbitrator may award any relief permitted by law.  The arbitrator must base the arbitration
award on the provisions of Section 8 of this Agreement and applicable law
and must render the award in writing, including an explanation of the reasons
for the award.  Judgment upon the award
may be entered by any court having jurisdiction of the matter, and the decision
of the arbitrator will be final and binding. 
The parties hereto hereby waive to the fullest extent

 

8

 

permitted
by law any rights to appeal or to review such award by any court.  The statute of limitations applicable to the
commencement of a lawsuit will apply to the commencement of an arbitration
under Section 8(d)(2) of the Agreement.  A the request of any party, the arbitrator,
attorneys, parties to the arbitration, witnesses, experts, court reporters or
other persons present at the arbitration shall agree in writing to maintain the
strict confidentiality of the arbitration proceedings.  The arbitrator’s fees will be paid in full by
the Corporation, unless Employee agrees in writing to pay some or all of such
fees.

 

Section 9.                                            Release and
Waiver of Claims.  In
consideration for Employee’s receipt of the Severance Payments or other
benefits as specified in this Agreement, to which Employee is not otherwise
entitled, Employee agrees to sign and agree to the terms of a broad,
confidential release of all claims, causes of action, judgments, damages,
liabilities, demands or any other claims Employee or Employee’s heirs, assigns
and agents may now or hereafter have against the Corporation, its subsidiaries
and other related entities, and their respective employees, stockholders,
directors, attorneys, accountants, successors and assigns or other agents in
the form and manner required by the Corporation (the “Release”).  Execution of the Release is a condition
precedent for qualifying to receive any Severance Payments or other benefits as
set forth in this Agreement.  Employee
further understands and acknowledges that if Employee refuses to sign the
Release provided by the Corporation, or attempts to revoke such a Release, to
the extent permitted by its terms, Employee shall be disqualified from
receiving Severance Payments or any other benefits provided by this Agreement.

 

Section 10.                                      Notices.  All notices, demands and other communications
required or permitted to be sent or given hereunder shall be in writing and
will be duly given and effective (i) if delivered in person or by a
reputable courier service, upon such deliver; (ii) if sent by first class
US mail, on the fourth business day following its mailing, certified mail,
postage prepaid and return receipt requested; or (iii) if sent by
overnight mail, on the business day following its mailing provided that the
delivery charges are prepaid.  The
addresses of the parties for the purposes of notice are set forth below.  Each party may change its address from time
to time upon ten days prior notice given in accordance with this Section.

 

	
  Notice
  to the Corporation:

  	
  Iteris, Inc.

  
	
   

  	
  1700
  Carnegie Avenue, Suite 100

  
	
   

  	
  Santa
  Ana, CA 92705-5551

  
	
   

  	
  Attn:
  Chief Executive Officer

  
	
   

  	
   

  
	
  Notice
  to Employee:

  	
  Abbas
  Mohaddes

  
	
   

  	
  3432
  Seaglen Drive

  
	
   

  	
  Rancho
  Palos Verdes, CA 90275

  

 

9

 

IN
WITNESS WHEREOF, each of the parties has executed this Agreement, in the case
of the Corporation by its duly authorized officer, as of the day and year first
above written.

 

	
   

  	
  ITERIS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  

  
	
   

  	
   

  	
  Kevin
  C Daly,

  
	
   

  	
   

  	
  Chairman,
  Compensation Committee

  
	
   

  	
   

  	
  Iteris, Inc.
  Board of Directors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  ABBAS MOHADDES

  
	
   

  	
  ABBAS
  MOHADDES

  

 

10

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