Document:

Severance Agreement

 Exhibit 10.1 
  
 SEVERANCE AGREEMENT AND GENERAL RELEASE 
  
 October 22, 2004 
  
 Paul A. Looney 
 9 Pheasant Lane 
 Lexington, MA 02421 
  
 Dear Paul: 
  
 In connection with the termination
of your employment with Biosphere Medical, Inc. (the “Company”) pursuant to Section 4.4 of your March 25, 2004 Employment Agreement (the “Employment Agreement”) on November 2, 2004, you are eligible to receive the severance
benefits described in the “Description of Severance Benefits” attached to this letter as Attachment A if you sign and return this letter agreement to Lisa McGrath on or after November 2, 2004 but no later than November 5, 2004. By signing
and returning this letter, you will be entering into a binding agreement with the Company and will be agreeing to the terms and conditions set forth in the numbered paragraphs below, including the release of claims set forth in paragraph 3.
Therefore, you are advised to consult with your attorney before signing this letter and you may take up to twenty-one (21) days to do so. If you sign this letter, you may change your mind and revoke your agreement during the seven (7) day period
after you have signed it. If you do not so revoke, this letter will become a binding agreement between you and the Company upon the expiration of the seven (7) day revocation period. 
  
 If you choose not to sign and return this letter agreement by November 2, 2004 but no later than November 5, 2004, you shall not receive any
severance benefits from the Company. You will, however, receive payment on your termination for any unused vacation time accrued through the termination date. Also, regardless of signing this letter, you may elect to continue receiving group medical
insurance pursuant to the federal “COBRA” law, 29 U.S.C. § 1161 et seq. All premium costs shall be paid by you on a monthly basis for as long as, and to the extent that, you remain eligible for COBRA continuation. You
should consult the COBRA materials to be provided by the Company for details regarding these benefits. All other benefits, including life insurance and long term disability, will cease upon your Termination Date. Further, pursuant to the terms of
the stock option reward(s) made to you under the Company’s 1997 Stock Option Incentive Plan, as amended, you will have up three (3) years after the Termination Date to exercise any vested stock rights you may have (as provided for by the plan).
All unvested stock rights will be cancelled on the Termination Date.  
  
 If, after reviewing this letter agreement with your attorney, you find the terms and conditions are satisfactory to you, you should sign and return this letter to Lisa McGrath on or after November 2, 2004 but no later than November 5, 2004.

  
 The following numbered paragraphs set forth the terms and conditions which
will apply if you timely sign and return this letter agreement and do not revoke it within the seven (7) day period: 
  

	1.	Termination Date - Your effective date of termination from the Company is November 2, 2004 (the “Termination Date”), and you agree to waive the sixty (60)
day notice provision set forth in the Employment Agreement in exchange for payment of an additional two (2) months of severance pay as described in Attachment A hereto. 

	2.	Board Service - The termination of your employment with the Company shall not affect your service as Chairman of the Company’s Board of Directors (the
“Board”). You will continue to serve as Chairman of the Board until the Company’s 2005 Annual Meeting, provided, that you agree to resign from your position as Chairman and a member of the Board upon request of a majority of the
members of the Board. 

  

	3.	Description of Severance Benefits - The severance benefits paid to you if you timely sign and return this letter are described in the “Description of Severance
Benefits” attached as Attachment A (the “severance benefits”). 

  

	4.	Release - In consideration of the payment of the severance benefits, which you acknowledge you would not otherwise be entitled to receive, you hereby fully, forever,
irrevocably and unconditionally release, remise and discharge the Company, its officers, directors, stockholders, corporate affiliates, subsidiaries, parent companies, agents and employees (each in their individual and corporate capacities)
(hereinafter, the “Released Parties”) from any and all claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings,
omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature which you ever had or now have against the Released Parties arising out of your employment with and/or
separation from the Company, including, but not limited to, all employment discrimination claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. §2000e et seq., the Age Discrimination in Employment Act, 29 U.S.C. §
621 et seq., the Americans With Disabilities Act of 1990, 42 U.S.C., §12101 et seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., and the Worker Adjustment and Retraining
Notification Act (“WARN”), 29 U.S.C. § 2101 et seq., all as amended; all claims arising out of the Fair Credit Reporting Act, 15 U.S.C. §1681 et seq., the Employee Retirement Income Security Act of
1974 (“ERISA”), 29 U.S.C. §1001 et seq., the Massachusetts Fair Employment Practices Act., M.G.L. c.151B, §1 et seq., the Massachusetts Civil Rights Act, M.G.L. c.12 §§11H and 11I, the
Massachusetts Equal Rights Act, M.G.L. c.93, §102 and M.G.L. c.214, §1C, the Massachusetts Labor and Industries Act, M.G.L. c.149, §1 et seq., the Massachusetts Privacy Act, M.G.L. c. 214, §1B, and the Massachusetts
Maternity Leave Act, M.G.L. c. 149, §105(d), all as amended; all common law claims including, but not limited to, actions in tort, defamation and breach of contract (including any and all claims pursuant to the Employment Agreement or the
Executive Retention Agreement between you and the Company dated March 25, 2004); all claims to any non-vested ownership interest in the Company, contractual or otherwise, including but not limited to claims to stock or stock options; and any claim
or damage arising out of your employment with or separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above; provided, however, that
nothing in this Agreement prevents you from filing, cooperating with, or participating in any proceeding before the EEOC or a state Fair Employment Practices Agency (except that you acknowledge that you may not be able to recover any monetary
benefits in connection with any such claim, charge or proceeding). 

  

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	5.	Non-Disclosure and Non-Competition and Non-Solicitation - You acknowledge and reaffirm your obligation to keep confidential all non-public information concerning the
Company which you acquired during the course of your employment with the Company, as stated more fully in Section 7 of the Employment Agreement, which remains in full force and effect. You further acknowledge and reaffirm your obligations with
respect to non-competition and non-solicitation as stated more fully in Section 6 of the Employment Agreement which likewise remain in full force and effect. 

  

	6.	Return of Company Property - You confirm that you have returned to the Company all keys, files, records (and copies thereof), equipment (including, but not limited to,
computer hardware, software and printers, wireless handheld devices, cellular phones, pagers, etc.), Company identification, Company vehicles and any other Company-owned property in your possession or control and have left intact all electronic
Company documents, including but not limited to those which you developed or help develop during your employment. You further confirm that you have cancelled all accounts for your benefit, if any, in the Company’s name, including but not
limited to, credit cards, telephone charge cards, cellular phone and/or pager accounts and computer accounts. 

  

	7.	Business Expenses and Compensation - You acknowledge that you have been reimbursed by the Company for all relocation costs and business expenses incurred in
conjunction with the performance of your employment and that no other reimbursements are owed to you. You further acknowledge that you have received payment in full for all services rendered in conjunction with your employment by the Company and
that no other compensation is owed to you. 

  

	8.	Non-Disparagement - You understand and agree that as a condition for payment to you of the consideration herein described, you shall not make any false, disparaging or
derogatory statements to any media outlet, industry group, financial institution or current or former employee, consultant, client or customer of the Company regarding the Company or any of its directors, officers, employees, agents or
representatives or about the Company’s business affairs and financial condition. 

  

	9.	Amendment - This letter agreement shall be binding upon the parties and may not be modified in any manner, except by an instrument in writing of concurrent or
subsequent date signed by duly authorized representatives of the parties hereto. This letter agreement is binding upon and shall inure to the benefit of the parties and their respective agents, assigns, heirs, executors, successors and
administrators. 

  

	10.	Waiver of Rights - No delay or omission by the Company in exercising any right under this letter agreement shall operate as a waiver of that or any other right. A
waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion. 

  

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	11.	Validity - Should any provision of this letter agreement be declared or be determined by any court of competent jurisdiction to be illegal or invalid, the validity of
the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a part of this letter agreement. 

  

	12.	Confidentiality - You understand and agree that as a condition for payment to you of the severance benefits herein described, the terms and contents of this letter
agreement, and the contents of the negotiations and discussions resulting in this letter agreement, shall be maintained as confidential by you and your agents and representatives and shall not be disclosed except to the extent required by federal or
state law or as otherwise agreed to in writing by the Company. 

  

	13.	Acknowledgments - You acknowledge that you have been given at least twenty-one (21) days to consider this letter agreement, including Attachment A, and that the
Company advised you to consult with an attorney of your own choosing prior to signing this letter agreement. You understand that you may revoke this letter agreement for a period of seven (7) days after you sign this letter agreement, and the letter
agreement shall not be effective or enforceable until the expiration of this seven (7) day revocation period. You understand and agree that by entering into this letter agreement you are waiving any and all rights or claims you might have under The
Age Discrimination in Employment Act, as amended by The Older Workers Benefit Protection Act, and that you have received consideration beyond that to which you were previously entitled. 

  

	14.	Voluntary Assent - You affirm that no other promises or agreements of any kind have been made to or with you by any person or entity whatsoever to cause you to sign
this letter agreement, and that you fully understand the meaning and intent of this letter agreement. You state and represent that you have had an opportunity to fully discuss and review the terms of this letter agreement with an attorney. You
further state and represent that you have carefully read this letter agreement, including Attachment A, understand the contents herein, freely and voluntarily assent to all of the terms and conditions hereof, and sign your name of your own free act.

  

	15.	Applicable Law - This letter agreement shall be interpreted and construed by the laws of the Commonwealth of Massachusetts, without regard to conflict of laws
provisions. You hereby irrevocably submit to and acknowledge and recognize the jurisdiction of the courts of the Commonwealth of Massachusetts, or if appropriate, a federal court located in Massachusetts (which courts, for purposes of this letter
agreement, are the only courts of competent jurisdiction), over any suit, action or other proceeding arising out of, under or in connection with this letter agreement or the subject matter hereof. 

  

	16.	Entire Agreement - This letter agreement, including Attachment A, contains and constitutes the entire understanding and agreement between the parties hereto with
respect to your severance benefits and the settlement of claims against the Company and cancels all previous oral and written negotiations, agreements, commitments, writings in connection therewith. Nothing in this paragraph, however, shall
modify, cancel or supersede your obligations set forth in paragraph 5 herein. 

  

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 If you have any questions about the matters covered in this letter, please call your Human Resources department.

  

			
	Very truly yours,
		
	By:	 	 /s/ John H. MacKinnon

	Name:	 	John H. MacKinnon
	Title:	 	Chairman, Compensation Committee

  
 I hereby agree to the terms and
conditions set forth above and in the attached Description of Severance Benefits. I have been given at least twenty-one (21) days to consider this agreement and I have chosen to execute this on the date below. I intend that this letter agreement
become a binding agreement between me and the Company if I do not revoke my acceptance in seven (7) days. 
  

							
	 /s/ Paul A. Looney

	 	 	 	Date 11/2/04
	 Employee Name: Paul A. Looney
	 	 	 	 	 	 

  
 To be returned Lisa McGrath on or
after November 2, 2004 but no later than November 5, 2004. 
  

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 ATTACHMENT A 
  
 DESCRIPTION OF SEVERANCE BENEFITS 
  
 Severance Compensation. The Company will provide you with a total of fourteen (14) months of severance pay, payable as follows: 
  
 Salary Continuation. The Company will provide you with salary
continuation, with an initial payment on November 11, 2004 of $4,100.18, and thereafter, continuation of your current bi-weekly salary of $12,300.58, less all applicable state and federal taxes, during the period between the Termination Date and
December 31, 2004 (the “Salary Continuation Period”). 
  
 Severance Pay. Following the termination of the Salary Continuation Period, on January 1, 2005, the Company will pay you Three Hundred Nineteen Thousand Eight Hundred and Fifteen Dollars and Eight Cents ($319,815.08), less all
applicable state and federal taxes, as well as withholdings for your portion of medical and dental coverage continuation premiums described below (the “Severance Pay”). This Severance Pay will be paid in one lump-sum in accordance with the
Company’s normal payroll procedures, but in no event earlier than the eighth (8th) day after execution of this
letter agreement. 
  
 Payment of the above-described severance compensation
represents payment of two (2) months of your annual salary in exchange for your waiver of the 60-day notice period under Section 4.4 of the Employment Agreement, as well as twelve (12) months of your annual salary pursuant to Section 5.1(b) of the
Employment Agreement. Please note that because no bonus was paid to you for FY 2003, no bonus payment is due pursuant to the Employment Agreement. 
  
 Benefits Continuation. Effective as of the Termination Date, you shall be considered to have elected to continue receiving group medical and dental insurance
pursuant to the federal “COBRA” law, 29 U.S.C. § 1161 et seq. For a period of twelve (12) months from the Termination Date (the “Benefits Continuation Period”), the Company shall continue to pay the share of
the premium for such coverage that is paid by the Company for active and similarly-situated employees who receive the same type of coverage. The remaining balance of the premium costs during the Benefits Continuation Period shall be deducted from
the Severance Pay, and all premium costs after the Severance Pay Period shall be paid by you on a monthly basis for as long as, and to the extent that, you remain eligible for COBRA continuation. You should consult the COBRA materials to be provided
by the Company for details regarding these benefits. 
  
 Life Insurance
Coverage Reimbursement. The Company also will provide you with a lump sum payment of $900 (representing the sum of the Company’s cost of providing you with group life insurance coverage for twelve (12) months from the Termination Date, and
in lieu of the provision of such coverage by the Company). This payment will less applicable state and federal taxes, and will be made in accordance with the Company’s normal payroll procedures, but in no event earlier than the eighth
(8th) day after execution of this letter agreement. 
  
 401K Payment. The Company also will provide you with a lump sum payment of $1,500 (representing the maximum Company 401K match
available had you remained an employee of 
  

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 the Company during the twelve (12) month period following the Termination Date). This payment will less applicable state
and federal taxes, and will be made in accordance with the Company’s normal payroll procedures, but in no event earlier than the eighth (8th) day after execution of this letter agreement. 
  

 - 7 -Employment Agreement

 Exhibit 10.2 
  
 BIOSPHERE MEDICAL, INC. 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (the “Agreement”), made effective as of November 2, 2004, is entered into by BioSphere Medical, Inc., a Delaware
corporation (the “Company”), and Richard J. Faleschini (the “Employee”). 
  
 The Company desires to employ the Employee, and the Employee desires to be employed by the Company. In consideration of the mutual covenants and promises contained in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by the parties to this Agreement, the parties agree as follows: 
  
 1. Term of Employment. The Company hereby agrees to employ the Employee, and the Employee hereby accepts employment with the Company, upon the
terms set forth in this Agreement, for the period commencing on November 2, 2004 (the “Commencement Date”) and ending on November 2, 2005. The Employment Period shall be automatically extended for additional periods of one year unless
either party provides written notice to the other party that such extension shall not occur (the “Non-Renewal Notice”) (such period, as it may be extended, the “Employment Period”), unless sooner terminated in accordance with the
provisions of Section 4. 
  
 2. Title; Capacity. The
Employee shall serve as President and Chief Executive Officer. The Employee shall be based at the Company’s headquarters. The Employee shall be subject to the supervision of, and shall have such authority as is delegated to the Employee by, the
Board of Directors (the “Board”) or such officer of the Company as may be designated by the Board. 
  
 The Employee hereby accepts such employment and agrees to undertake the duties and responsibilities inherent in such position and such other duties and
responsibilities as the Board or its designee shall from time to time reasonably assign to the Employee. The Employee agrees to devote his entire business time, attention and energies to the business and interests of the Company during the
Employment Period. The Employee agrees to abide by the rules, regulations, instructions, personnel practices and policies of the Company and any changes therein which may be adopted from time to time by the Company. 
  
 3. Compensation and Benefits. 
  
 3.1 Salary and Bonus. The Company shall pay the Employee, in periodic
installments in accordance with the Company’s customary payroll practices, an annual base salary of $300,000 for the one-year period commencing on the Commencement Date. Such salary shall be subject to increases thereafter as may be determined
from time to time by the Board. The Employee shall be entitled to an annual bonus in an amount equal to up to 50% of his then current base salary, to be paid based upon the Employee’s achievement of milestones to be mutually agreed upon
annually by the Employee and the Compensation Committee of the Board. A minimum bonus of 25% of the Employee’s current annual base salary shall be guaranteed for the first calendar year of this Agreement. 

 3.2 Fringe Benefits. The Employee shall be entitled to participate in all bonus and benefit
programs that the Company establishes and makes available to its employees, if any, to the extent that Employee’s position, tenure, salary, age, health and other qualifications make him eligible to participate. The Employee shall be entitled to
four (4) weeks paid vacation per year, to be taken at such times as may be approved by the Board or its designee. 
  
 3.3 Stock Options. Subject to approval by the Compensation Committee of the Board of Directors, on or about the Commencement Date the Employee
shall be granted, pursuant to the Company’s 1997 Stock Incentive Plan (the “Plan”) (a) an option to purchase 500,000 shares of Common Stock, $0.01 par value (“Common Stock”) of the Company pursuant to the terms and
conditions of the Plan and a stock option agreement issued thereunder, such option to be exercisable at a price per share equal to the closing price of the Company’s Common Stock on the NASDAQ Stock Market on date of grant, such option to vest
and become exercisable, subject to the Employee’s continued employment, at a rate of 20% of the total shares underlying the option on the first anniversary of the date of grant and as to an additional 20% at the end of each full year thereafter
and (b) an option, to purchase 100,000 shares of the Company’s Common Stock pursuant to the terms and conditions of the Plan and a stock option agreement issued thereunder, such option to be exercisable at a price per share equal to the closing
price of the Company’s Common Stock on the date of grant, such option to vest and become exercisable, subject to the Employee’s continued employment, at a rate of 33.3333% of the total shares underlying the option on the first anniversary
of the date on which the Company books revenue from the commercial sale of its products in excess of $25.0 million (as reflected on the Company’s financial statements prepared in accordance with generally accepted accounting principles in the
United States) in any continuous 12-month period and as to an additional 33.3333% at the end of each full year thereafter; provided that such option shall vest, in any event, on the end of the seventh year after the date of grant. 
  
 3.4 Reimbursement of Expenses. The Company shall reimburse the
Employee for all reasonable travel, entertainment and other expenses incurred or paid by the Employee in connection with, or related to, the performance of his duties, responsibilities or services under this Agreement, in accordance with policies
and procedures, and subject to limitations, adopted by the Company from time to time. 
  
 3.5 Moving Expenses. The Company shall reimburse the Employee for (a) customary moving expenses, (b) commission, origination and closing costs associated with the sale of the Employee’s home in Minnesota
and purchase of a home in Massachusetts, and (c) temporary living and commuting expenses (consisting of airfare, temporary housing and expenses incident thereto), in an aggregate amount not to exceed $175,000. 
  
 3.6 Withholding. All salary, bonus and other compensation payable to
the Employee shall be subject to applicable withholding taxes. 
  
 4. Termination of Employment Period. The employment of the Employee by the Company pursuant to this Agreement shall terminate upon the occurrence of any of the following: 
  
 4.1 At the end of any year of the Employment Period in which either party shall have delivered a Non-Renewal Notice;

  

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 4.2 At the election of the Company, for Cause (as defined below), immediately upon written notice by the
Company to the Employee, which notice shall identify the Cause upon which the termination is based. For the purposes of this Section 4.2, “Cause” shall mean (a) the Employee’s willful and continued failure to substantially perform his
reasonable assigned duties (other than any such failure resulting from incapacity due to physical or mental illness), which failure is not cured within 30 days after a written demand for substantial performance is received by the Employee from the
Board which specifically identifies the manner in which the Board believes the Employee has not substantially performed the Employee’s duties; or (b) the Employee’s willful engagement in illegal conduct or gross misconduct which is
materially and demonstrably injurious to the Company. 
  
 For
purposes of this Section 4.2, no act or failure to act by the Employee shall be considered “willful” unless it is done, or omitted to be done, in bad faith and without reasonable belief that the Employee’s action or omission was in
the best interests of the Company. 
  
 4.3 At the election of the
Employee, for Good Reason (as defined below), immediately upon written notice by the Employee to the Company, which notice shall identify the Good Reason upon which the termination is based. For the purposes of this Section 4.3, “Good
Reason” for termination shall mean (i) a material adverse change in Employee’s authority, duties or compensation without the prior consent of the Employee, (ii) the relocation of the Employee’s principal place of work such that the
distance from the Employee’s residence to such place of work is increased by more than 50 miles, or (iii) the commission by the Company of a material breach of this Agreement which is not remedied by the Company within 90 days of notice thereof
by the Employee. 
  
 4.4 Upon the death or disability of the
Employee. As used in this Agreement, the term “disability” shall mean the Employee’s absence from full-time performance of the Employee’s duties with the Company for 180 consecutive calendar days as a result of incapacity due to
mental or physical illness as determined by a physician selected by the Company or its insurers and acceptable to the Employee or the Employee’s legal representative; 
  
 4.5 At the election of either party, upon written notice of termination. 
  
 5. Effect of Termination. 
  
 5.1 Payments Upon Termination. 
  
 (a) In the event the Employee’s employment is terminated pursuant to
Section 4.1 because the Employee has elected not to renew the Agreement or is terminated pursuant to Section 4.2, Section 4.4 or by the Employee pursuant to Section 4.5, the Company shall pay to the Employee the compensation and benefits otherwise
payable to him under Section 3 through the last day of his actual employment by the Company. 
  
 (b) In the event the Employee’s employment is terminated pursuant to Section 4.1 because the Company has elected not to renew the Agreement, or is terminated by 
  

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 the Employee pursuant to Section 4.3 or by the Company pursuant to Section 4.5, the Company shall continue to pay to the
Employee his salary as in effect on the date of termination and the amount of the annual bonus paid to him for the fiscal year immediately preceding the date of termination (payable in annualized monthly installments) and continue to provide to the
Employee the other benefits owed to him under Section 3.2 (to the extent such benefits can be provided to non-employees, or to the extent such benefits cannot be provided to non-employees, then the cash equivalent thereof) until the date 12 months
after the date of termination, provided, however, that the Company’s obligation to make the aforesaid payments or provide the aforesaid benefits shall immediately terminate in the event that the Employee violates the provisions of Section 6.1
or Section 7 during such 12 month period. The payment to the Employee of the amounts payable under this Section 5.1(b) (i) shall be contingent upon the execution by the Employee of a release in a form reasonably acceptable to the Company and (ii)
shall constitute the sole remedy of the Employee in the event of a termination of the Employee’s employment in the circumstances set forth in this Section 5.1(b). 
  
 5.2 Survival. The provisions of Sections 5.1(b), 6 and 7 shall survive the termination of this Agreement. 

 
 6. Non-Competition and Non-Solicitation. 
  
 6.1 Restricted Activities. While the Employee is employed by the
Company and for a period of one year after the termination or cessation of such employment for any reason, the Employee will not directly or indirectly: 
  
 (a) Engage in any business or enterprise (whether as owner, partner, officer, director, employee, consultant, investor, lender or otherwise, except as the
holder of not more than 1% of the outstanding stock of a publicly-held company) that is competitive with the Company’s business in the field of embolotherapy, including but not limited to any business or enterprise that develops, manufactures,
markets, licenses, sells or provides any product or service in the field of embolotherapy that competes with any product or service in the field of embolotherapy developed, manufactured, marketed, licensed, sold or provided, or planned to be
developed, manufactured, marketed, licensed, sold or provided, by the Company or any of its subsidiaries while the Employee was employed by the Company; or 
  
 (b) Either alone or in association with others (i) solicit, or permit any organization directly or indirectly controlled by the Employee to solicit, any
employee of the Company to leave the employ of the Company, or (ii) solicit for employment, hire or engage as an independent contractor, or permit any organization directly or indirectly controlled by the Employee to solicit for employment, hire or
engage as an independent contractor, any person who was employed by the Company at the time of the termination or cessation of the Employee’s employment with the Company; provided, that this clause (ii) shall not apply to the
solicitation, hiring or engagement of any individual whose employment with the Company has been terminated for a period of six months or longer. 
  
 6.2 Extension. If the Employee violates the provisions of Section 6.1, the Employee shall continue to be bound by the restrictions set forth in
Section 6.1 until a period of one year has expired without any violation of such provisions. 
  

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 6.3 Interpretation. If any restriction set forth in Section 6.1 is found by any court of competent
jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities
or geographic area as to which it may be enforceable. 
  
 6.4
Equitable Remedies. The restrictions contained in this Section 6 are necessary for the protection of the business and goodwill of the Company and are considered by the Employee to be reasonable for such purpose. The Employee agrees that any
breach of this Section 6 is likely to cause the Company substantial and irrevocable damage which is difficult to measure. Therefore, in the event of any such breach or threatened breach, the Employee agrees that the Company, in addition to such
other remedies which may be available, shall have the right to obtain an injunction from a court restraining such a breach or threatened breach and the right to specific performance of the provisions of this Section 6 and the Employee hereby waives
the adequacy of a remedy at law as a defense to such relief. 
  
 7. Proprietary Information and Developments. 
  
 7.1 Proprietary Information. 
  
 (a) The Employee
agrees that all information, whether or not in writing, of a private, secret or confidential nature concerning the Company’s business, business relationships or financial affairs (collectively, “Proprietary Information”) is and shall
be the exclusive property of the Company. By way of illustration, but not limitation, Proprietary Information may include inventions, products, processes, methods, techniques, formulas, compositions, compounds, projects, developments, plans,
research data, clinical data, financial data, personnel data, computer programs, customer and supplier lists, and contacts at or knowledge of customers or prospective customers of the Company. The Employee will not disclose any Proprietary
Information to any person or entity other than employees of the Company or use the same for any purposes (other than in the performance of his duties as an employee of the Company) without written approval by an officer of the Company, either during
or after his employment with the Company, unless and until such Proprietary Information has become public knowledge without fault by the Employee or unless required by law. 
  
 (b) The Employee agrees that all files, letters, memoranda, reports, records, data, sketches, drawings, laboratory
notebooks, program listings, or other written, photographic, or other tangible material containing Proprietary Information, whether created by the Employee or others, which shall come into his custody or possession, shall be and are the exclusive
property of the Company to be used by the Employee only in the performance of his duties for the Company. All such materials or copies thereof and all tangible property of the Company in the custody or possession of the Employee shall be delivered
to the Company, upon the earlier of (i) a request by the Company or (ii) termination of his employment. After such delivery, the Employee shall not retain any such materials or copies thereof or any such tangible property. 
  
 (c) The Employee agrees that his obligation not to disclose or to use
information and materials of the types set forth in paragraphs (a) and (b) above, and his obligation to return materials and tangible property, set forth in paragraph (b) above, also extends 
  

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 to such types of information, materials and tangible property of customers of the Company or suppliers to the Company or
other third parties who may have disclosed or entrusted the same to the Company or to the Employee. 
  
 7.2 Developments. 
  
 (a) The Employee will make full and prompt disclosure to the Company of all inventions, improvements, discoveries, methods, developments, software, and
works of authorship, whether patentable or not, which are created, made, conceived or reduced to practice by him or under his direction or jointly with others during his employment by the Company, whether or not during normal working hours or on the
premises of the Company (all of which are collectively referred to in this Agreement as “Developments”). 
  
 (b) The Employee agrees to assign and does hereby assign to the Company (or any person or entity designated by the Company) all his right, title and
interest in and to all Developments and all related patents, patent applications, copyrights and copyright applications. However, this paragraph (b) shall not apply to Developments which do not relate to the business or research and development
conducted or planned to be conducted by the Company at the time such Development is created, made, conceived or reduced to practice and which are made and conceived by the Employee not during normal working hours, not on the Company’s premises
and not using the Company’s tools, devices, equipment or Proprietary Information. The Employee understands that, to the extent this Agreement shall be construed in accordance with the laws of any state which precludes a requirement in an
employee agreement to assign certain classes of inventions made by an employee, this paragraph (b) shall be interpreted not to apply to any invention which a court rules and/or the Company agrees falls within such classes. The Employee also hereby
waives all claims to moral rights in any Developments. 
  
 (c) The
Employee agrees to cooperate fully with the Company, both during and after his employment with the Company, with respect to the procurement, maintenance and enforcement of copyrights, patents and other intellectual property rights (both in the
United States and foreign countries) relating to Developments. The Employee shall sign all papers, including, without limitation, copyright applications, patent applications, declarations, oaths, formal assignments, assignments of priority rights,
and powers of attorney, which the Company may deem necessary or desirable in order to protect its rights and interests in any Development. The Employee further agrees that if the Company is unable, after reasonable effort, to secure the signature of
the Employee on any such papers, any executive officer of the Company shall be entitled to execute any such papers as the agent and the attorney-in-fact of the Employee, and the Employee hereby irrevocably designates and appoints each executive
officer of the Company as his agent and attorney-in-fact to execute any such papers on his behalf, and to take any and all actions as the Company may deem necessary or desirable in order to protect its rights and interests in any Development, under
the conditions described in this sentence. 
  
 7.3 United
States Government Obligations. The Employee acknowledges that the Company from time to time may have agreements with other parties or with the United States Government, or agencies thereof, which impose obligations or restrictions on the Company
regarding inventions made during the course of work under such agreements or regarding the confidential nature of such work. The Employee agrees to be bound by all such obligations and restrictions which are made known to the Employee and to take
all appropriate action necessary to discharge the obligations of the Company under such agreements. 
  

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 7.4 Equitable Remedies. The restrictions contained in this Section 7 are necessary for the
protection of the business and goodwill of the Company and are considered by the Employee to be reasonable for such purpose. The Employee agrees that any breach of this Section 7 is likely to cause the Company substantial and irrevocable damage
which is difficult to measure. Therefore, in the event of any such breach or threatened breach, the Employee agrees that the Company, in addition to such other remedies which may be available, shall have the right to obtain an injunction from a
court restraining such a breach or threatened breach and the right to specific performance of the provisions of this Section 7 and the Employee hereby waives the adequacy of a remedy at law as a defense to such relief. 
  
 8. Other Agreements. The Employee represents that his performance of
all the terms of this Agreement and the performance of his duties as an employee of the Company do not and will not breach any agreement with any prior employer or other party to which the Employee is a party (including without limitation any
nondisclosure or non-competition agreement). 
  
 9.
Miscellaneous. 
  
 9.1 Notices. Any notices
delivered under this Agreement shall be deemed duly delivered four business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or one business day after it is sent for next-business day delivery via a
reputable nationwide overnight courier service, in each case to the address of the recipient set forth in the introductory paragraph hereto. Either party may change the address to which notices are to be delivered by giving notice of such change to
the other party in the manner set forth in this Section 9.1. 
  
 9.2 Pronouns. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns and pronouns shall include the plural, and vice
versa. 
  
 9.3 Entire Agreement. This Agreement constitutes
the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement. 
  
 9.4 Amendment. This Agreement may be amended or modified only by a written instrument executed by both the Company
and the Employee. 
  
 9.5 Governing Law. This Agreement
shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts (without reference to the conflicts of laws provisions thereof). Any action, suit or other legal proceeding arising under or relating to any
provision of this Agreement shall be commenced only in a court of the Commonwealth of Massachusetts (or, if appropriate, a federal court located within Massachusetts), and the Company and the Employee each consents to the jurisdiction of such a
court. The Company and the Employee each hereby irrevocably waive any right to a trial by jury in any action, suit or other legal proceeding arising under or relating to any provision of this Agreement. 
  

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 9.6 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of both
parties and their respective successors and assigns, including any corporation with which, or into which, the Company may be merged or which may succeed to the Company’s assets or business, provided, however, that the obligations of the
Employee are personal and shall not be assigned by him. Notwithstanding the foregoing, if the Company is merged with or into a third party which is engaged in multiple lines of business, or if a third party engaged in multiple lines of business
succeeds to the Company’s assets or business, then for purposes of Section 6.1(a), the term “Company” shall mean and refer to the business of the Company as it existed immediately prior to such event and as it subsequently develops
and not to the third party’s other businesses. 
  
 9.7
Waivers. No delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the Company on any one occasion shall be effective only in that
instance and shall not be construed as a bar or waiver of any right on any other occasion. 
  
 9.8 Captions. The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of this Agreement. 
  
 9.9 Severability. In case any provision of this Agreement shall be
invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby. 
  
 THE EMPLOYEE ACKNOWLEDGES THAT HE/SHE HAS CAREFULLY READ THIS AGREEMENT AND UNDERSTANDS AND AGREES TO ALL OF THE PROVISIONS
IN THIS AGREEMENT. 
  
 IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the day and year set forth above. 
  

			
	BIOSPHERE MEDICAL, INC.
		
	By:	 	 /s/ John H. MacKinnon

	Title:	 	Chairman, Compensation Committee
	
	EMPLOYEE
	
	 /s/ Richard J. Faleschini

	RICHARD J. FALESCHINI

  

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