Document:

Exhibit 10.2

SEPRACOR INC.

Executive Retention Agreement

THIS EXECUTIVE
RETENTION AGREEMENT by and between Sepracor Inc., a Delaware corporation (the
“Company”), and Adrian Adams (the “Executive”) is made as of March 1, 2007 (the
“Effective Date”).

WHEREAS, the
Company recognizes that, as is the case with many publicly-held corporations,
the possibility of a change in control of the Company exists and that such
possibility, and the uncertainty and questions which it may raise among key
personnel, may result in the departure or distraction of key personnel to the
detriment of the Company and its stockholders, and

WHEREAS, the Board
of Directors of the Company (the “Board”) has determined that appropriate steps
should be taken to reinforce and encourage the continued employment and
dedication of the Company’s key personnel without distraction from the
possibility of a change in control of the Company and related events and
circumstances.

NOW, THEREFORE, as
an inducement for and in consideration of the Executive remaining in its
employ, the Company agrees that the Executive shall receive the severance
benefits set forth in this Agreement (including a certain “gross up” payment
originally authorized by the Board on February 25, 1999 and set forth in
Section 4.3 of this Agreement) upon the occurrence of a Change in Control (as
defined in Section 1.1).

1.                                       Key
Definitions.

As used herein,
the following terms shall have the following respective meanings:

1.1                                 “Change in Control” means an event or
occurrence set forth in any one or more of subsections (a) through (d) below
(including an event or occurrence that constitutes a Change in Control under
one of such subsections but is specifically exempted from another such
subsection):

(a)                                  the acquisition by an individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of
beneficial ownership of any capital stock of the Company if, after such
acquisition, such Person beneficially owns (within the meaning of Rule 13d-3
promulgated under the Exchange Act) 30%  or more of either
(x) the then-outstanding shares of common stock of the Company (the
“Outstanding Company Common Stock”) or (y) the combined voting power of the
then-outstanding securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); provided,
however, that for purposes of this subsection (a), the following acquisitions
shall not constitute a Change in Control: (i) any acquisition directly from the
Company (excluding an acquisition pursuant to the exercise, conversion or
exchange of any security exercisable for, convertible into or exchangeable for
common stock or voting securities of the Company, unless the Person exercising,
converting or exchanging such security acquired such security directly from the

Company
or an underwriter or agent of the Company), (ii) any acquisition by the
Company, (iii) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the
Company, or (iv) any acquisition by any corporation pursuant to a transaction
which complies with clauses (i) and (ii) of subsection (c) of this Section 1.1;
or

(b)                                 such time as the Continuing Directors (as
defined below) do not constitute a majority of the Board (or, if applicable,
the Board of Directors of a successor corporation to the Company), where the
term “Continuing Director” means at any date a member of the  Board (i) who was a member of the Board on
the date of the execution of this Agreement or (ii) who was nominated or
elected subsequent to such date by at least a majority of the directors who
were Continuing Directors at the time of such nomination or election or whose
election to the Board was recommended or endorsed by at least a majority of the
directors who were Continuing Directors at the time of such nomination or
election; provided, however, that there shall be excluded from
this clause (ii) any individual whose initial assumption of office occurred as
a result of an actual or threatened election contest with respect to the
election or removal of directors or other actual or threatened solicitation of
proxies or consents, by or on behalf of a person other than the Board; or

(c)                                  the consummation of a merger, consolidation,
reorganization, recapitalization or statutory share exchange involving the
Company or a sale or other disposition of all or substantially all of the
assets of the Company in one or a series of transactions (a “Business
Combination”), unless, immediately following such Business Combination, each of
the following two conditions is satisfied: (i) the beneficial owners of all or
substantially all of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of the then-outstanding
shares of common stock and the combined voting power of the then-outstanding
securities entitled to vote generally in the election of directors,
respectively, of the resulting or acquiring corporation in such Business
Combination (which shall include, without limitation, a corporation which as a
result of such transaction owns the Company or substantially all of the
Company’s assets either directly or through one or more subsidiaries) (such
resulting or acquiring corporation is referred to herein as the “Acquiring
Corporation”) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, respectively; and (ii)
no Person (excluding the Acquiring Corporation or any employee benefit plan (or
related trust) maintained or sponsored by the Company or by the Acquiring
Corporation) beneficially owns, directly or indirectly, 30% or more of the then
outstanding shares of common stock of the Acquiring Corporation, or of the
combined voting power of the then-outstanding securities of such corporation
entitled to vote generally in the election of directors (except to the extent
that such ownership existed prior to the Business Combination); or

(d)                                 approval by the stockholders of the Company
of a complete liquidation or dissolution of the Company.

1.2                                 “Change in Control Date” means the
first date during the Term (as defined in Section 2) on which a Change in
Control occurs.  Anything in this
Agreement to the contrary notwithstanding, if (a) a Change in Control
occurs, (b)  the Executive’s employment with the

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Company
is terminated prior to the date on which the Change in Control occurs, and
(c) either (i) such termination of employment (x) was at the request of a
third party who has taken steps reasonably calculated to effect a Change in Control
or (y) otherwise arose in connection with or in anticipation of a Change in
Control, or (ii) such termination of employment occurs following the execution
of a definitive agreement for such Change in Control, then for all purposes of
this Agreement the “Change in Control Date” shall mean the date immediately
prior to the date of such termination of employment.

2.                                       Term
of Agreement.  This Agreement, and
all rights and obligations of the parties hereunder, shall take effect upon the
Effective Date and shall expire upon the first to occur of (a) the expiration
of the Term (as defined below) if a Change in Control has not occurred during
the Term, (b) the termination of the Executive’s employment with the Company
prior to the Change in Control Date, or (c) if a Change in Control has
occurred during the Term, the fulfillment by the Company of all of its
obligations under Sections 4 and 5.2 and 5.3.  “Term” shall mean the period commencing as of
the Effective Date and continuing in effect through March 1, 2010; provided,
however, that commencing on March 1,
2010 and each March 1 thereafter, the Term shall be automatically extended for
one additional year unless, not later than 90 days prior to the scheduled
expiration of the Term (or any extension thereof), the Company shall have given
the Executive written notice that the Term will not be extended.

3.                                       Employment
Status; Not an Employment Contract. 
The Executive acknowledges that this Agreement does not constitute a
contract of employment or impose on the Company any obligation to retain the
Executive as an employee and that this Agreement does not prevent the Executive
from terminating employment at any time. 
If the Executive’s employment with the Company terminates for any reason
and subsequently a Change in Control shall occur, the Executive shall not be
entitled to any benefits hereunder except as otherwise provided pursuant to
Section 1.2.

4.                                       Benefits
to Executive.

4.1                                 Stock Acceleration.  If
the Change in Control Date occurs during the Term, then, effective upon the
Change in Control Date, (a) each outstanding option to purchase shares of
Common Stock of the Company held by the Executive shall vest and become
immediately exercisable in full and shares of Common Stock of the Company
received upon exercise of any options will no longer be subject to a right of
repurchase by the Company, (b) each outstanding restricted stock award
shall be deemed to be fully vested and will no longer be subject to a right of
repurchase by the Company and (c) notwithstanding any provision in any
applicable option agreement to the contrary, if Executive’s employment is
terminated in connection with, in anticipation of, or within six months after a
Change in Control, each such option shall continue to be exercisable by the
Executive (to the extent such option was exercisable on the Change in Control
Date) for a period of six months following the date of termination of such
employment.

4.2                                 Compensation.  If
the Change in Control Date occurs during the Term:

(a)                                  the Company shall pay to the Executive in a
lump sum in cash within 30 days after the Change in Control Date the aggregate
of the following amounts:

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(i)                                     the sum of (1) the Executive’s base
salary through the Change in Control Date, (2) the product of (A) the
annual bonus paid or payable (including any bonus or portion thereof which has
been earned but deferred) for the most recently completed fiscal year and
(B) a fraction, the numerator of which is the number of days in the
current fiscal year through the Change in Control Date, and the denominator of
which is 365 and (3) the amount of any compensation previously deferred by
the Executive (together with any accrued interest or earnings thereon) and any
accrued vacation pay, in each case to the extent not previously paid (the sum
of the amounts described in clauses (1), (2), and (3) shall be hereinafter
referred to as the “Accrued Obligations”); and

(ii)                                  the amount equal to (1) three multiplied
by (2) the sum of (A) the Executive’s highest annual base salary
during the five-year period prior to the Change in Control Date and
(B) the Executive’s highest annual bonus during the five-year period prior
to the Change in Control Date.

(b)                                 for 24 months after the Change in Control
Date, or such longer period as may be provided by the terms of the appropriate
plan, program, practice or policy, the Company shall continue to provide
benefits to the Executive and the Executive’s family at least equal to those
provided to them immediately prior to the Change in Control Date, in accordance
with the applicable Benefit Plans in effect on the Measurement Date or, if more
favorable to the Executive and his family, in effect generally at any time
thereafter with respect to other peer executives of the Company and its
affiliated companies; provided, however, that if the Executive’s
employment is terminated during this period and the Executive becomes
reemployed with another employer and is eligible to receive a particular type
of benefits (e.g., health insurance benefits) from such employer on terms at
least as favorable to the Executive and his family as those being provided by
the Company, then the Company shall no longer be required to provide those
particular benefits to the Executive and his family; and

(c)                                  if the Executive’s employment is terminated
during the 24-month period following the Change in Control Date, to the extent
not previously paid or provided, the Company shall timely pay or provide to the
Executive any other amounts or benefits required to be paid or provided or
which the Executive is eligible to receive following the Executive’s
termination of employment under any plan, program, policy, practice, contract
or agreement of the Company and its affiliated companies (such other amounts
and benefits shall be hereinafter referred to as the “Other Benefits”).

4.3                                 Taxes.

(a)                                  In the event that the Company undergoes
a  “Change in Ownership or Control” (as
defined below), the Company shall, within 30 days after each date on which the
Executive becomes entitled to receive (whether or not then due) a Contingent
Compensation Payment (as defined below) relating to such Change in Ownership or
Control, determine and notify the Executive (with reasonable detail regarding
the basis for its determinations) (i) which of the payments or benefits due
to the Executive (under this Agreement or otherwise) following such Change in
Ownership or Control constitute Contingent Compensation Payments, (ii) the
amount, if any, of the excise tax (the “Excise Tax”) payable pursuant to
Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), by
the Executive with respect to such

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Contingent
Compensation Payment and (iii) the amount of the Gross-Up Payment (as
defined below) due to the Executive with respect to such Contingent
Compensation Payment.  Within 30 days
after delivery of such notice to the Executive, the Executive shall deliver a
response to the Company (the “Executive Response”) stating either (A) that he
agrees with the Company’s determination pursuant to the preceding sentence or
(B) that he disagrees with such determination, in which case he shall indicate
which payment and/or benefits should be characterized as a Contingent
Compensation Payment, the amount of the Excise Tax with respect to such
Contingent Compensation Payment and the amount of the Gross-Up Payment due to
the Executive with respect to such Contingent Compensation Payment.  The amount and characterization of any item
in the Executive Response shall be final; provided, however, that in the event
that the Executive fails to deliver an Executive Response on or before the
required date, the Company’s initial determination shall be final.  Within 90 days after the due date of each
Contingent Compensation Payment to the Executive, the Company shall pay to the
Executive, in cash, the Gross-Up Payment with respect to such Contingent
Compensation Payment, in the amount determined pursuant to this
Section 4.3(a).

(b)                                 For purposes of this Section 4.3, the
following terms shall have the following respective meanings:

(i)                                     “Change in Ownership or Control” shall mean a
change in the ownership or effective control of the Company or in the ownership
of a substantial portion of the assets of the Company determined in accordance
with Section 280G(b)(2) of the Code.

(ii)                                  “Contingent Compensation Payment” shall mean
any payment (or benefit) in the nature of compensation that is made or made
available (under this Agreement or otherwise) to a “disqualified individual”
(as defined in Section 280G(c) of the Code) and that is contingent (within the
meaning of Section 280G(b)(2)(A)(i) of the Code) on a Change in Ownership or
Control of the Company.

(iii)                               “Gross-Up Payment” shall mean an amount equal
to the sum of (i) the amount of the Excise Tax payable with respect to a
Contingent Compensation Payment and (ii) the amount necessary to pay all
additional taxes imposed on (or economically borne by) the Executive (including
the Excise Taxes, state and federal income taxes and all applicable employment
taxes) attributable to the receipt of such Gross-Up Payment.  For purposes of the preceding sentence, all
taxes attributable to the receipt of the Gross-Up Payment shall be computed
assuming the application of the maximum tax rates provided by law.

4.4                                 Mitigation.  The Executive shall not be
required to mitigate the amount of any payment or benefits provided for in this
Section 4. Further, except as provided in Section 4.2(b), the amount of any
payment or benefits provided for in this Section 4 shall not be reduced by any
compensation earned by the Executive as a result of employment by another
employer, by retirement benefits, by offset against any amount claimed to be
owed by the Executive to the Company or otherwise.

4.5                                 Outplacement Services.  In
the event of the termination of the Executive’s employment in connection with,
in anticipation of, or within six months after a Change in Control, the Company
shall provide outplacement services through one or more outside firms of

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the
Executive’s choosing up to an aggregate amount equal to 15 percent of the
Executive’s annual base salary, with such services to extend until the earlier
of (i) 12 months following the termination of Executive’s employment or (ii)
the date the Executive secures full time employment.

4.6                                 Six Month Delay.  If
any payment, compensation or other benefit provided to the Executive in
connection with his employment termination is determined, in whole or in part,
to constitute “nonqualified deferred compensation” within the meaning of
Section 409A and the Executive is a specified employee as defined in Section
409A(2)(B)(i), no part of such payments shall be paid before the day that is
six (6) months plus one (1) day after the date of his termination (the “New
Payment Date”).  In the case of welfare
benefit continuation, the Company shall use its best efforts to enable
Executive to obtain such benefits at Executive’s expense prior to the New
Payment Date.  The aggregate of any
payments that otherwise would have been paid to the Executive (or on
Executive’s behalf) during the period between the date of his termination and
the New Payment Date shall be paid to the Executive in a lump sum on such New
Payment Date.  Thereafter, any payments
that remain outstanding as of the day immediately following the New Payment Date
shall be paid without delay over the time period originally scheduled, in
accordance with the terms of this Agreement.

5.                                       Disputes.

5.1                                 Settlement of Disputes; Arbitration.  All
claims by the Executive for benefits under this Agreement shall be directed to
and determined by the Board of Directors of the Company and shall be in
writing.  Any denial by the Board of
Directors of a claim for benefits under this Agreement shall be delivered to
the Executive in writing and shall set forth the specific reasons for the
denial and the specific provisions of this Agreement relied upon.  The Board of Directors shall afford a
reasonable opportunity to the Executive for a review of the decision denying a
claim.  Any further dispute or
controversy arising under or in connection with this Agreement shall be settled
exclusively by arbitration in Boston, Massachusetts, in accordance with the
rules of the American Arbitration Association then in effect.  Judgment may be entered on the arbitrator’s
award in any court having jurisdiction.

5.2                                 Expenses.  The Company agrees to pay as
incurred, to the full extent permitted by law, all legal, accounting and other
fees and expenses which the Executive may reasonably incur as a result of any
claim or contest by the Company or others, or any bona fide claim or contest by
the Executive, regarding the validity or enforceability of, or liability under,
any provision of this Agreement or any guarantee of performance thereof
(including as a result of any contest by the Executive regarding the amount of
any payment or benefits pursuant to this Agreement), plus in each case interest
on any delayed payment at the applicable Federal rate provided for in Section
7872(f)(2)(A) of the Code, provided that the Executive shall reimburse any fees
and expenses to the extent any such claim or contest is not resolved in favor
of the Executive.

5.3                                 Compensation During a Dispute.  If
the Change in Control Date occurs during the Term and the Executive’s
employment with the Company terminates within 24 months following the Change in
Control Date, and the right of the Executive to receive benefits under
Section 4 (or the amount or nature of the benefits to which he is entitled
to receive) are the

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subject of a dispute between the Company and the Executive, the Company
shall continue (a) to pay to the Executive his base salary in effect as of
the Measurement Date and (b) to provide benefits to the Executive and the
Executive’s family at least equal to those which would have been provided to
them, if the Executive’s employment had not been terminated, in accordance with
the applicable Benefit Plans in effect on the Measurement Date, until such
dispute is resolved either by mutual written agreement of the parties or by an
arbitrator’s award pursuant to Section 5.1.  Following the resolution of such dispute, the
sum of the payments made to the Executive under this Section 5.3 shall be
deducted from any cash payment which the Executive is entitled to receive
pursuant to Section 4; and if such sum exceeds the amount of the cash
payment which the Executive is entitled to receive pursuant to Section 4,
the excess of such sum over the amount of such payment shall be repaid (with
interest at the applicable Federal rate provided for in Section 7872(f)(2)(A)
of the Code) by the Executive to the Company within 60 days of the resolution
of such dispute.

6.                                       Successors.

6.1                                 Successor to Company.  The
Company shall require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
or assets of the Company expressly to assume and agree to perform this
Agreement to the same extent that the Company would be required to perform it
if no such succession had taken place. 
Failure of the Company to obtain an assumption of this Agreement at or
prior to the effectiveness of any succession shall be a breach of this
Agreement.  As used in this Agreement,
“Company” shall mean the Company as defined above and any successor to its
business or assets as aforesaid which assumes and agrees to perform this
Agreement, by operation of law or otherwise.

6.2                                 Successor to Executive.  This
Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. 
If the Executive should die while any amount would still be payable to
the Executive or his family hereunder if the Executive had continued to live,
all such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to the executors, personal representatives or
administrators of the Executive’s estate.

7.                                       Notice.  All notices, instructions and other
communications given hereunder or in connection herewith shall be in
writing.  Any such notice, instruction or
communication shall be sent either (i) by registered or certified mail, return
receipt requested, postage prepaid, or (ii) prepaid via a reputable nationwide
overnight courier service, in each case addressed to the Company, at 111 Locke
Drive, Marlborough, MA  01752, and to the
Executive at the Executive’s address indicated on the signature page of this
Agreement (or to such other address as either the Company or the Executive may
have furnished to the other in writing in accordance herewith).  Any such notice, instruction or communication
shall be deemed to have been delivered five business days after it is sent by
registered or certified mail, return receipt requested, postage prepaid, or one
business day after it is sent via a reputable nationwide overnight courier
service. Either party may give any notice, instruction or other communication
hereunder using any other means, but no such notice, instruction or other
communication shall be

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deemed to have been duly
delivered unless and until it actually is received by the party for whom it is
intended.

8.                                       Miscellaneous.

8.1                                 Employment by Subsidiary.  For
purposes of this Agreement, the Executive’s employment with the Company shall
not be deemed to have terminated solely as a result of the Executive continuing
to be employed by a wholly-owned subsidiary of the Company.

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

8.3                                 Injunctive Relief.  The
Company and the Executive agree that any breach of this Agreement by the
Company is likely to cause the Executive substantial and irrevocable damage and
therefore, in the event of any such breach, in addition to such other remedies
which may be available, the Executive shall have the right to specific
performance and injunctive relief.

8.4                                 Governing Law.  The
validity, interpretation, construction and performance of this Agreement shall
be governed by the internal laws of the Commonwealth of Massachusetts, without
regard to conflicts of law principles.

8.5                                 Waivers.  No waiver by the Executive at
any time of any breach of, or compliance with, any provision of this Agreement
to be performed by the Company shall be deemed a waiver of that or any other
provision at any subsequent time.

8.6                                 Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed to be
an original but both of which together shall constitute one and the same
instrument.

8.7                                 Tax Withholding.  Any
payments provided for hereunder shall be paid net of any applicable tax
withholding required under federal, state or local law.

8.8                                 Entire Agreement.  This
Agreement, together with the Employment Agreement by and between the Company
and the Executive of even date herewith, sets forth the entire agreement of the
parties hereto in respect of the subject matter contained herein and supersedes
all prior agreements, promises, covenants, arrangements, communications,
representations or warranties, whether oral or written, by any officer,
employee or representative of any party hereto in respect of the subject matter
contained herein. For the avoidance of doubt, except as specifically described
herein in Section 4.1, the stock options and restricted stock awards held by
Executive shall continue to be governed by the applicable stock option or stock
incentive plan under which they were granted or issued (or any successor plan
thereto) and any related stock option or restricted stock agreement, as the
same may be amended or modified.

8.9                                 Amendments.  This Agreement may be amended
or modified only by a written instrument executed by both the Company and the
Executive.

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8.10                           Executive’s Acknowledgements.  The
Executive acknowledges that he: (a) has read this Agreement; (b) has been
represented in the preparation, negotiation, and execution of this Agreement by
legal counsel of the Executive’s own choice or has voluntarily declined to seek
such counsel; (c) understands the terms and consequences of this Agreement; and
(d) understands that the law firm of Wilmer Cutler Pickering Hale and Dorr LLP
is acting as counsel to the Company in connection with the transactions
contemplated by this Agreement, and is not acting as counsel for the Executive.

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IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the day and year
first set forth above.

	
  

  	
  SEPRACOR INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Timothy
  J. Barberich

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chairman and CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Adrian Adams

  	
   

  
	
   

  	
  Adrian Adams

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

 10Exhibit
10.3

EMPLOYMENT
AGREEMENT

THIS
EMPLOYMENT AGREEMENT (the “Agreement”), made this 1st day of March 2007, is
entered into by Sepracor Inc., a Delaware corporation with its principal place
of business at 84 Waterford Drive, Marlborough, Massachusetts 01752-7231(the
“Company”), and Andrew I. Koven, residing at                                    
(the “Executive”).

The Company
desires to employ the Executive and the Executive desires to be employed by the
Company.  In consideration of the mutual
covenants and promises contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
the parties hereto, the parties agree as follows:

1.                                       Term of Employment. 
The Company hereby agrees to employ the Executive and the Executive
hereby accepts employment with the Company, upon the terms set forth in this
Agreement, for the period commencing on March 1, 2007 (the “Commencement Date”)  and ending on March 1, 2010 (the “Term”).  Notwithstanding
the foregoing, the Term shall be extended automatically without further action
by either party by one (1) additional year (added to the end of the Term) on
each succeeding anniversary of March 1, 2010, unless either party shall have
served written notice upon the other party at least sixty (60) days preceding
the date upon which such Term would end (such period, as it may be extended,
the “Employment Period”), unless sooner terminated in accordance with the
provisions of Section 4.

2.                                       Title and Capacity. 
The Executive shall serve as Executive Vice-President, General Counsel
and Corporate Secretary of the Company. 
Executive shall report directly to the Chief Executive Officer of the
Company and shall, except as permitted hereby, devote all of his business time
and services to the business and affairs of the Company.  Executive shall also perform such other
duties consistent with his position as Executive Vice-President, General

Counsel and Corporate Secretary as
may be reasonably assigned by the Chief Executive Officer and the Board of
Directors of the Company (the “Board”) from time to time.  The Executive agrees to abide by the rules,
regulations, instructions, personnel practices and policies of the Company and
any changes therein that may be adopted from time to time by the Company.

Notwithstanding
anything herein to the contrary, Executive shall be entitled to engage in (a)
service on the board of directors of one company, businesses or trade
organization with prior Board approval, (b) service on the board of directors
of not-for-profit or charitable organizations with prior Board approval, (c)
other charitable activities and community affairs and (d) managing his personal
investments and affairs, in each case to the extent such activities do not
materially interfere with the performance of his duties and responsibilities to
the Company.

3.                                       Compensation and Benefits.

3.1                                 Salary.  During the term of this Agreement, the
Company agrees to pay to the Executive a base salary at the annualized rate of
$500,000 (“Base Salary”) commencing on the Commencement Date.  The Base Salary shall be subject to annual
review by the Board but shall not be reduced below $500,000 per annum.  Such salary shall be payable to Executive in
bi-weekly installments and in accordance with the Company’s normal payroll
procedures.

3.2                                 Bonus.  The Executive shall receive a one-time “Sign
On” bonus of $150,000 less applicable taxes and withholdings to be paid within
thirty (30) days of the Commencement Date, provided, however, if
the Executive’s employment is terminated, within twelve (12) months of the
Commencement Date, for Cause by the Company pursuant to Section 4.2 or at the
election of the Executive pursuant to Section 4.5, the Executive will be required
to repay the portion of the Sign On bonus retained by Executive after the
payment of all taxes.  In addition, the
Executive shall be eligible for a performance-based annual bonus for each
fiscal

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year of
the Term (the “Annual Bonus”). The Annual Bonus shall be based upon annual
quantitative and qualitative performance targets as established by the Board in
its sole discretion in accordance with the Company’s bonus plan; provided,
that the Executive’s annual bonus level target shall be set at fifty percent
(50%) of Base Salary.  For 2007,
Executive shall be entitled to a pro rata guaranteed bonus based on an Annual
Bonus of fifty percent (50%) of his Base Salary. The Annual Bonus is not earned
until the close of business on the last business day of the Company’s fiscal
year.  Any Annual Bonus payable hereunder
shall be payable, if at all, after the date of the delivery of the audited
financial statements for the applicable fiscal year.

3.3                                 Stock
and Option Grant.  At the first
meeting of the Compensation Committee of the Board of Directors following the
Executive’s first day of employment, the Company shall grant to the Executive,
under the Company’s 2000 Stock Incentive Plan (the “Stock Plan”), 30,000 shares
of restricted stock and an option to purchase 70,000 shares of Company stock
(the “Initial Grant”).  The terms and
conditions of the Initial Grant (other than the exercise price per share, which
shall be equal to the closing price of the Company’s stock on the grant date)
shall be set forth in the award agreements attached hereto as Schedules A and
B.  The stock option portion of the
Initial Grant shall vest in five equal installments on each of the first five
anniversaries of the grant date, and the restricted stock award portion of the
Initial Grant shall vest in three equal installments on each of the first three
anniversaries of the grant date.  The
Board, in its sole discretion, may grant further incentive compensation awards
to the Executive from time to time.  The
Company represents and warrants to Executive that the Company has full power
and authority, subject to Compensation Committee approval, and shares available
under the Stock Plan to make the Initial Grant.

 3
 

3.4                                 Benefits.  The Executive shall be entitled to
participate in all bonus and benefit programs that the Company establishes and
makes available to its employees, to the extent that the Executive is eligible
under (and subject to the provisions of) the plan documents governing those
programs.  The Executive shall be
entitled to no less than four weeks paid vacation per year, subject to the
other terms of the Company’s standard vacation policy (Schedule C).

3.5                                 Reimbursement
of Expenses.  The Company
shall reimburse the Executive for all reasonable travel (which shall be deemed
to include first class airfare), entertainment and other expenses incurred or
paid by the Executive in connection with, or related to, the performance of his
duties, responsibilities or services under this Agreement or in connection with
Executive’s commuting to and from his personal residence in New Jersey and the
Company’s offices, upon presentation by the Executive of documentation, expense
statements, vouchers and/or such other supporting information as the Company
may request.

3.6                                 Housing
Expenses.  The Company
understands that the Executive intends to maintain his primary residence
outside the Massachusetts area for up to eighteen (18) months and then intends
to relocate to the Massachusetts area. Until the Executive relocates to the
Massachusetts area, the Company agrees to provide the Executive with a housing
allowance of $3,750 per month, related to the rental or purchase of a home,
within suitable distance to the Company’s headquarters, which payments shall be
made on a fully tax grossed-up basis. 
The Company also will reimburse the Executive for reasonable travel,
meals and lodging expenses incurred by him for up to two trips for the purpose
of securing such house or apartment within a suitable distance to the Company’s
headquarters.  Executive shall be entitled
to relocation

 4
 

benefits
afforded by the Company to other Company executives if and when Executive
decides to permanently relocate his primary residence to the Massachusetts
area.

3.7                                 Executive’s
Legal Fees.  The Company
agrees to pay the Executive’s reasonable legal costs and expenses in connection
with negotiating and drafting this Agreement up to a maximum of $15,000.

3.8                                 Automobile.  The Company agrees to provide the Executive
with an automobile allowance or a leased automobile with a retail value of up
to $60,000, which payments shall be made on a fully tax grossed-up basis.  In addition, the Company agrees to pay all
insurance, maintenance, fuel and other customary costs associated with
operating the automobile.

3.9                                 Withholding.  All salary, bonus and other compensation
payable to the Executive shall be subject to applicable withholding taxes.

4.                                       Employment Termination. 
The employment of the Executive under this Agreement shall terminate
upon the occurrence of any of the following:

4.1                                 On the
expiration date of the Employment Period.

4.2                                 At the
election of the Company, for Cause (as defined below), immediately upon written
notice by the Company to the Executive, which notice shall identify the Cause
upon which termination is based.  For the
purposes of this Section 4.2, Cause for termination shall mean:  (a) the Executive’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 or any
failure after the Executive gives notice of termination for Good Reason and
Good Reason exists), which failure is not cured within 30 days after a written
demand for substantial performance is received by the Executive from the Board
of Directors of

 5
 

the Company
which specifically identifies the manner in which the Board of Directors
believes the Executive has not substantially performed the Executive’s duties;
(b) the Executive’s willful engagement in illegal conduct or gross misconduct
which is materially and demonstrably injurious to the Company; or (c) a
material breach of Section 6 or 7 of this Agreement by the Executive.  For purposes of this Section 4.2, no act or
failure to act by the Executive shall be considered “willful” unless it is
done, or omitted to be done, in bad faith and without reasonable belief that
the Executive’s action or omission was in the best interests of the Company.

4.3                                 Upon the
death or disability of the Executive.  As
used in this Agreement, the term “disability” shall mean the Executive’s
absence from the full-time performance of the Executive’s duties with the
Company for one hundred eighty (180) consecutive calendar days as a result of
incapacity due to mental or physical illness which is determined to be total
and permanent by a physician selected by the Company or its insurers and
acceptable to the Executive or the Executive’s legal representative.

4.4                                 At the
election of the Executive for Good Reason as defined herein.  The Executive may terminate his employment
for Good Reason at any time, following 30-days prior written notice of such
termination to the Company. Such notice shall provide factual details of the
basis behind such termination and the Company shall have a thirty (30) day
period thereafter to cure such matter.  As
used herein, the term “Good Reason” shall mean: 
(a) a material breach by the Company of the terms of this Agreement,
including the failure to pay Base Salary or any Annual Bonus when due; or (b)
any material adverse change by the Company in Executive’s titles, authorities,
duties, responsibilities or lines of reporting inconsistent with the terms
hereof or the assignment to Executive by the Company of titles, authorities,
duties, responsibilities or lines of reporting inconsistent with the terms
hereof, or (c) a relocation of the principal offices of

 6
 

the
Company to an area more than forty (40) miles from the location of such offices
as of the date hereof.

4.5                                 At the
election of the Executive without Good Reason, upon not less than sixty (60)
calendar days prior written notice of termination by the Executive to the
Company; provided, however, that the Company may, in its sole
discretion, determine that the termination of the Executive shall become
effective immediately and in which case the termination shall still be
considered at the election of the Executive without Good Reason.

4.6                                 At the
election of the Company, without Cause, upon not less than sixty (60) days
written notice to Executive.

4.7                                 At the
election of the Company or the Executive in connection with a Change in
Control, as set forth in the Executive Retention Agreement between the Company
and the Executive (the “ERA”), dated as of the date hereof.  “Change in Control” shall have the meaning
set forth in the ERA.

5.                                       Effect of Termination.

5.1                                 Non-Renewal,
Termination Without Good Reason By the Executive or Termination For Cause By
the Company.  In the event
the Executive’s employment is terminated by non-renewal pursuant to Section
4.1, for Cause by the Company pursuant to Section 4.2, or at the election of
the Executive pursuant to Section 4.5, the Company shall pay to the Executive
the compensation and benefits otherwise payable to him under Section 3 through
the last calendar day of his actual employment by the Company.

5.2                                 Termination
for Death or Disability.  In the event the Executive’s employment is
terminated by death or because of disability pursuant to Section 4.3, the
Company shall pay to the estate of the Executive or to the Executive, as the
case may be, (A) within thirty

 7
 

(30) days
of the date of the Executive’s death or determination of disability, the
compensation which would otherwise be payable to the Executive up to the end of
the month in which the termination of his employment because of death or
disability occurs; and (B) an annual bonus, payable when bonuses are paid for
that year, in an amount equal to the total bonus he would be paid for such
year, if any, multiplied by a fraction, the numerator of which is the number of
days in the year that have elapsed since January 1 and the denominator of which
is 365 (a “Pro Rata Bonus”).  In
addition, the Company shall permit Executive or Executive’s estate or
representative to exercise the vested stock option portion of the Initial Grant
for a period of no less than one year after any such termination of employment.

5.3                                 Termination
By the Executive With Good Reason or By the Company Without “Cause”.  In the event the Executive’s employment is
terminated by the Executive with Good Reason pursuant to Section 4.4 or by the
Company without Cause pursuant to Section 4.6, the Company shall pay to the
Executive the compensation and benefits otherwise payable to him under Section
3 through the last calendar day of his actual employment by the Company.  In addition, provided the Executive executes
and does not revoke a Separation Agreement and Release of Claims for the
benefit of the Company substantially in the form set forth on Schedule D
hereto, the Company shall  (a)  continue
to pay the Executive the Base Salary for eighteen (18) months in accordance
with the Company’s regular payroll practices; (b) pay the Executive a Pro Rata
Bonus; (c) pay the Executive, in bi-weekly installments, over an
eighteen-month period, an amount equal in the aggregate to 1.5 times the
average Annual Bonus earned for the two years prior to the date of his
termination (in the event Executive has not been employed for a sufficient
period to earn two such bonuses, such calculation shall be made assuming
Executive earned a bonus for any such year at a target level of performance
(taking into account any minimum

 8
 

bonus
amount)); (d) provide to the Executive for 18 months following the date of his
termination payment of COBRA premiums for medical, dental, and vision benefits
pursuant to plans maintained by the Company under which Executive and/or
Executive’s family is eligible to receive benefits; provided, however, that,
notwithstanding the foregoing, the benefits described in this subsection may be
discontinued prior the end of the period, but only to the extent, that Executive
receives substantially similar benefits from a subsequent employer; and (e)
permit Executive to exercise the stock option portion of the Initial Grant for
a period of no less than six months after the date of termination.

5.4                                 Termination Following a Change in Control.  In
the event the Executive’s employment is terminated pursuant to Section 4.7 by
the Company or by the Executive within 24 months following the Change in
Control Date as defined in the ERA, the Executive will be entitled to the
benefits set forth in the ERA in accordance with the terms of the ERA.  

5.5                                 Six Month
Delay.  If any payment,
compensation or other benefit provided to the Executive in connection with his
employment termination is determined, in whole or in part, to constitute “nonqualified
deferred compensation” within the meaning of Section 409A and the Executive is
a specified employee as defined in Section 409A(a)(2)(B)(i), no part of such
payments shall be paid before the day that is six (6) months plus one (1) day
after the date of termination (the “New Payment Date”).  In the case of welfare benefit continuation,
the Company shall use its best efforts to enable Executive to obtain such
benefits at Executive’s expense prior to the New Payment Date.  The aggregate of any payments that otherwise
would have been paid to the Executive (or on Executive’s behalf) during the
period between the date of termination and the New Payment Date shall be paid
to the Executive in a lump sum on such New Payment Date.  Thereafter, any payments that remain
outstanding as of the day immediately

 9
 

following
the New Payment Date shall be paid without delay over the time period
originally scheduled, in accordance with the terms of this Agreement.

6.                                       Non-Competition and Non-Solicitation.

(a)                                  While the Executive
is employed by the Company and for a period of twelve (12) months following the
Executive’s termination or cessation of such employment for any reason, the
Executive will not directly or indirectly:

(i)                                     Engage in
any business or enterprise (whether as an owner, partner, officer, employee,
director, investor, lender, consultant, independent contractor or otherwise,
except as the holder of not more than 5% of the combined voting power of the
outstanding stock of a publicly held company) that (A) is competitive with
the Company’s business and (B) develops, designs, produces, markets, sells
or renders any product or service competitive with any product developed,
produced, marketed, sold or rendered by the Company while the Executive was
employed by the Company;

(ii)                                  Either alone or in association with others, recruit or solicit, any
person who was employed by the Company at any time during the period of the
Executive’s employment with the Company, except for an individual whose
employment with the Company has been terminated for a period of six months or
longer; and

(iii)                               Either alone or in association with others, solicit, divert or take away, or attempt to divert or to take
away, the business or patronage of any of the clients, customers or accounts, or
prospective clients, customers or accounts, of the Company which were
contacted, solicited or served by the Executive while he was employed by the
Company.

 10
 

(b)                                 If any restriction set forth in this Section 6 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.

(c)                                  The Executive acknowledges that the restrictions contained in this Agreement are necessary for the
protection of the business and goodwill of the Company and are considered by
the Executive to be reasonable for such purpose.  The Executive agrees that any breach of this
Agreement will cause the Company substantial and irrevocable damage and
therefore, in the event of any such breach, in addition to such other remedies
which may be available, the Company shall have the right to seek specific
performance and injunctive relief without posting a bond.

(d)                                 The geographic scope of this Section shall extend to anywhere the
Company or any of its subsidiaries is doing business during the Term or has
plans, during the Term, to do business.

(e)                                  The Executive agrees to provide a copy of
this Agreement to all person and Entities with whom the Executive seeks to be hired or do business before accepting
employment or engagement with any of them.

(f)                                    If the Executive violates the provisions of this Section, the Executive shall continue
to be held by the restrictions set forth in this Section, until a period equal
to the period of restriction has expired without any violation.

 11
 

7.                                       Proprietary Information and
Developments.

7.1                                 Proprietary
Information.

(a)                                  The
Executive 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 discoveries, inventions, products, product
improvements, product enhancements, processes, methods, techniques, formulas, compositions,
compounds, negotiation strategies and positions, projects, developments, plans
(including business and marketing plans), research data, clinical data,
financial data (including sales, costs, profits and pricing methods), personnel
data, computer programs (including software used pursuant to a license
agreement), customer and supplier lists, and contacts at or knowledge of
customers or prospective customers of the Company.  Except as required by applicable law, the
Executive 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
prior written approval from the Chief Executive Officer, either during or after
his employment with the Company, unless and until such Proprietary Information
has become public knowledge without fault by the Executive.

(b)                                 The
Executive agrees that all files, documents, letters, memoranda, reports,
records, data, sketches, drawings, methods, laboratory notebooks, program
listings, computer equipment or devices, computer programs or other written,
photographic, or other tangible material containing Proprietary Information,
whether created by the Executive or others, which shall come into his custody
or possession, shall be and are the exclusive property of the

 12
 

Company
and are to be used by the Executive 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 Executive 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
Executive shall not retain any such materials or copies thereof or any such
tangible property.

(c)                                  The
Executive agrees that his obligation not to disclose or to use information and
materials of the types set forth in subsections (a) and (b) above, and his
obligation to return materials and tangible property set forth in subsection
(b) above, also extends 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
Executive.

7.2                                 Developments.

(a)                                  The
Executive will make full and prompt disclosure to the Company of all
inventions, creations, improvements, discoveries, trade secrets, secret
processes, technology, know-how, copyrightable materials, methods,
developments, software, and works of authorship or other creative works,
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
Executive 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 subsection (b) shall not apply to Developments that do not relate to

 13
 

any
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 that are made and conceived by the Executive not during normal
working hours, not on the Company’s premises and not using the Company’s tools,
devices, equipment or Proprietary Information. 
The Executive understands that, to the extent this Agreement shall be
construed in accordance with the laws of any state that precludes a requirement
in an employee agreement to assign certain classes of inventions made by an
employee, this subsection (b) shall be interpreted not to apply to any
invention that a court rules and/or the Company agrees falls within such
classes.  The Executive also hereby
waives all claims to moral rights in any Developments.

(c)                                  The
Executive agrees to cooperate fully with the Company and to take such further
actions as may be necessary or desirable, 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 Executive shall sign all papers,
including, without limitation, copyright applications, patent applications,
declarations, oaths, formal assignments, assignments of priority rights and
powers of attorney, that the Company may deem necessary or desirable in order
to protect its rights and interests in any Development.  The Executive further agrees that if the
Company is unable, after reasonable effort, to secure the signature of the
Executive on any such papers, the Chief Executive Officer of the Company shall
be entitled to execute any such papers as the agent and the attorney-in-fact of
the Executive, and the Executive hereby irrevocably designates and appoints the
Chief 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

 14
 

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 Executive 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 Executive agrees to be bound by all such
obligations and restrictions that are made known to the Executive and to take
all action necessary to discharge the obligations of the Company under such
agreements.

7.4                                 Other
Agreements.  The
Executive hereby represents that he is not bound by the terms of any agreement
with any previous employer or other party to refrain from competing, directly
or indirectly, with the business of such previous employer or any other
party.  The Executive further represents
that his performance of all the terms of this Agreement and the performance of
his duties as an employee of the Company does not and will not breach any
agreement to keep in confidence proprietary information, knowledge or data acquired
by him in confidence or in trust prior to his employment with the Company and
that the Executive will not disclose to the Company or induce the Company to
use any confidential or proprietary information, knowledge or material
belonging to any previous employer or others. 
The Executive further represents that his performance of all the terms
of this Agreement and the performance of his duties as an employee of the
Company does not and will not breach any agreement to refrain from soliciting
employees, customers or suppliers of any former employer or others.

 15
 

8.                                       Indemnification. 
The Company shall indemnify the Executive in accordance with its
Certificate of Incorporation and By-Laws.

9.                                       Survival. 
The provisions of Sections 6, 7 and 8 shall survive the termination
of this Agreement for any reason.

10.                                 Notices. 
Any notices delivered under this Agreement shall be deemed duly
delivered three (3) business days after it is sent by registered or certified
mail, return receipt requested, postage prepaid, or one (1) 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 10.

11.                                 Compliance with Code Section 409A. 
It is intended that this Agreement comply with or be exempt from the
requirements of Sections 409A(a)(2) through (4) of the Internal Revenue Code of
1986, as amended, and all regulations issued thereunder.  The Agreement shall be interpreted and
administered for all purposes in accordance with this intent and may be amended
by the Company, following consultation with Executive and Executive’s legal and
tax advisors, at any time if such amendment is deemed necessary to satisfy this
intent.

12.                                 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.

13.                                 Entire Agreement. 
This Agreement, together with the ERA, 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.

 16
 

14.                                 Amendment. 
This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Executive.

15.                                 Governing Law. 
This Agreement shall be governed by and construed in accordance with the
laws of the Commonwealth of Massachusetts (without reference to the conflict 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 the
Commonwealth of Massachusetts), and the Company and the Executive each consents
to the jurisdiction of such a court.  The
Company and the Executive 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 or any other dealing between them relating to
the subject matter of this transaction and the relationship that is being
established.

16.                                 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 its
assets or business; provided, however, that the obligations of
the Executive are personal and shall not be assigned by him.

17.                                 Acknowledgment. 
The Executive states and represents that he has had an opportunity to
fully discuss and review the terms of this Agreement with an attorney.  The Executive further states and represents
that he has carefully read this Agreement, understands the contents herein,
freely and voluntarily assents to all of the terms and conditions hereof, and
signs his name of his own free act.

 17
 

18.                                 Miscellaneous.

18.1                           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 to or
waiver of any right on any other occasion.

18.2                           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.

18.3                           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.

IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the day and year
set forth above.

	
  

  	
  Sepracor Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Timothy
  J. Barberich

  	
   

  
	
   

  	
  Title:

  	
  Chairman and CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Andrew I. Koven

  	
   

  
	
   

  	
  Andrew I. Koven

  

 

 18

SCHEDULE
A

FORM OF RESTRICTED STOCK AGREEMENT

SEE
ATTACHED AGREEMENT

 

SEPRACOR
INC.

Restricted
Stock Agreement

 

	
  Name of Recipient:

  	
   

  
	
   

  	
   

  
	
  Number of shares of restricted common 

  stock awarded:

  	
   

  
	
   

  	
   

  
	
  Grant Date:

  	
   

  

 

                Sepracor Inc. (the “Company”) has selected you to
receive the restricted stock award described above, which is subject to the
provisions of the Company’s 2000 Stock Incentive Plan (the “Plan”) and the
terms and conditions contained in this Restricted Stock Agreement.  Please confirm your acceptance of this
restricted stock award and of the terms and conditions of this Agreement by
signing a copy of this Agreement where indicated below.

	
   

  	
  SEPRACOR INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  [insert name and
  title]

  
	
   

  	
   

  
	
  Accepted and Agreed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [insert name of recipient]

  	
   

  
	
   

  	
   

  
				

 

SEPRACOR
INC.

Restricted
Stock Agreement

                The terms and conditions of the award of shares of
restricted common stock of the Company (the “Restricted Shares”) made to the
Recipient, as set forth on the cover page of this Agreement, are as follows:

1.             Issuance of
Restricted Shares.

(a)           The Restricted Shares are issued to
the Recipient, effective as of the Grant Date (as set forth on the cover page
of this Agreement), in consideration of employment services rendered and to be
rendered by the Recipient to the Company.

(b)           The Restricted Shares will initially
be issued by the Company in book entry form only, in the name of the
Recipient.  Following the vesting of any
Restricted Shares pursuant to Section 2 below, the Company shall, if requested
by the Recipient, issue and deliver to the Recipient a certificate representing
the vested Restricted Shares.   The
Recipient agrees that the Restricted Shares shall be subject to the forfeiture
provisions set forth in Section 3 of this Agreement and the restrictions on
transfer set forth in Section 4 of this Agreement.

2.             Vesting.

(a)           Vesting Schedule.  Unless otherwise provided in this Agreement
or the Plan, the Restricted Shares shall vest in accordance with the following
vesting schedule:  [     %
of the total number of Restricted Shares shall vest on the first anniversary of
the Grant Date and      % of the total number of
Restricted Shares shall vest on each successive anniversary thereafter, through
and including the       anniversary of the Grant
Date].  Any fractional number of
Restricted Shares resulting from the application of the foregoing percentages
shall be rounded down to the nearest whole number of Restricted Shares.

(b)           Acceleration of Vesting.  Notwithstanding the foregoing vesting
schedule, as provided in the Plan, all unvested Restricted Shares shall vest
effective immediately prior to a Change in Control Event (as defined in the
Plan).   

3.             Forfeiture of
Unvested Restricted Shares Upon Employment Termination.

                In the event that the Recipient ceases to be employed
by, a director of, or a consultant or advisor to, the Company for any reason or
no reason, with or without cause all of the Restricted Shares that are unvested
as of the time of such employment termination shall be forfeited immediately
and automatically to the Company, without the payment of any consideration to
the Recipient, effective as of such termination of employment.  The Recipient shall have no further rights
with respect to any Restricted Shares that are so forfeited.  If the Recipient is employed by a subsidiary
of the Company, any references in this Agreement to employment with the Company
shall instead be deemed to refer to employment with such subsidiary.

4.             Restrictions on
Transfer.

                The Recipient shall not sell, assign, transfer,
pledge, hypothecate or otherwise dispose of, by operation of law or otherwise
(collectively “transfer”) any Restricted Shares, or any interest therein, until
such Restricted Shares have vested, except that the Recipient may transfer such
Restricted Shares as part of the sale of all or substantially all of the shares
of capital stock of the Company (including pursuant to a merger or
consolidation).  The Company shall not be
required (i) to transfer on its books any of the Restricted Shares which have
been transferred in violation of any of the provisions of this Agreement or
(ii) to treat as owner of such Restricted Shares or to pay dividends to any
transferee to whom such Restricted Shares have been transferred in violation of
any of the provisions of this Agreement.

5.             Restrictive
Legends.  

                The book entry account reflecting the issuance of the
Restricted Shares in the name of the Recipient shall bear a legend or other
notation upon substantially the following terms:

                “These shares of stock are subject to forfeiture
provisions and restrictions on transfer set forth in a certain Restricted Stock
Agreement between the corporation and the registered owner of these shares (or
his or her predecessor in interest), and such Agreement is available for
inspection without charge at the office of the Secretary of the corporation.” 

6.             Rights as a
Shareholder.

                Except as otherwise provided in this Agreement, for
so long as the Recipient is the registered owner of the Restricted Shares, the Recipient
shall have all rights as a shareholder with respect to the Restricted Shares,
whether vested or unvested, including, without limitation, any rights to
receive dividends and distributions with respect to the Restricted Shares and
to vote the Restricted Shares and act in respect of the Restricted Shares at
any meeting of shareholders.

7.             Provisions of
the Plan.

                This Agreement is subject to the provisions of the
Plan, a copy of which is furnished to the Recipient with this Agreement.  As provided in the Plan, upon the occurrence
of a Reorganization Event (as defined in the Plan), the rights of the Company
hereunder (including the right to receive forfeited Restricted Shares) shall
inure to the benefit of the Company’s successor and, unless the Board determines
otherwise, shall apply to the cash, securities or other property which the
Restricted Shares were converted into or exchanged for pursuant to such
Reorganization Event in the same manner and to the same extent as they applied
to the Restricted Shares under this Agreement. 

8.             Tax Matters.   

(a)            Acknowledgments; Section 83(b)
Election.  The Recipient acknowledges
that he or she is responsible for obtaining the advice of the Recipient’s own
tax advisors with respect to the acquisition of the Restricted Shares and the
Recipient is relying solely on such advisors and not on any statements or
representations of the Company or any of its agents with respect to the tax
consequences relating to the Restricted Shares. 
The Recipient understands that the Recipient (and not the Company) shall
be responsible for the Recipient’s tax liability that may arise in connection
with the acquisition, vesting and/or disposition of the Restricted Shares.  

The Recipient
acknowledges that he or she has been informed of the availability of making an
election under Section 83(b) of the Internal Revenue Code, as amended, with
respect to the issuance of the Restricted Shares and that the Recipient has
decided not to file a Section 83(b) election. 

(b)           Withholding. The Recipient
acknowledges and agrees that the Company has the right to deduct from payments
of any kind otherwise due to the Recipient any federal, state, local or other
taxes of any kind required by law to be withheld with respect to the vesting of
the Restricted Shares.  On each date on
which Restricted Shares vest, the Company shall deliver written notice to the
Recipient of the amount of withholding taxes due with respect to the vesting of
the Restricted Shares that vest on such date; provided, however, that the total
tax withholding cannot exceed the Company’s minimum statutory withholding
obligations (based on minimum statutory withholding rates for federal and state
tax purposes, including payroll taxes, that are applicable to such supplemental
taxable income).  The Recipient shall
satisfy such tax withholding obligations by making a cash payment to the
Company on the date of vesting of the Restricted Shares, in the amount of the
Company’s withholding obligation in connection with the vesting of such
Restricted Shares.    

9.             Miscellaneous.

(a)           No Right to Continued Employment.  The Recipient acknowledges and agrees that,
notwithstanding the fact that the vesting of the Restricted Shares is
contingent upon his or her continued employment by the Company, this Agreement
does not constitute an express or implied promise of continued employment or
confer upon the Recipient any rights with respect to continued employment by
the Company.

(b)           Governing Law.  This Agreement shall be construed,
interpreted and enforced in accordance with the internal laws of the State of
Delaware without regard to any applicable conflicts of laws provisions.

SCHEDULE
B

FORM OF STOCK OPTION AGREEMENTS

SEE
ATTACHED AGREEMENT

 

SEPRACOR INC. 

Form of Incentive Stock
Option Agreement 

Granted Under 2000
Stock Incentive Plan 

1.             Grant of Option.

 

                This agreement
evidences the grant by Sepracor Inc., a Delaware corporation (the “Company”),
on the Grant Date indicated on the preceding Certificate of Stock Option Grant
(the “Certificate”) to an employee, consultant, or director of the Company (the
“Participant”), of an option to purchase, in whole or in part, on the terms
provided herein and in the Company’s 2000 Stock Incentive Plan (the “Plan”),
the number of shares (the “Shares”) of common stock, $.10 par value per
share,  of the Company (“Common
Stock”),indicated on the certificate at the price  per Share indicated on the Certificate.
Unless earlier terminated, this option shall expire on the Grant Expiration
Date indicated on the Certificate (“Grant Expiration Date”). 

 

                It is intended
that the option evidenced by this agreement shall not be an incentive stock
option as defined in Section 422 of the Internal Revenue Code of 1986, as
amended, and any regulations promulgated thereunder (the “Code”).  Except as otherwise indicated by the context,
the term “Participant”, as used in this option, shall be deemed to include any
person who acquires the right to exercise this option validly under its terms. 

 

2.             Vesting Schedule.

 

                This option will
become exercisable (“vest”) pursuant to the Vesting Schedule indicated on the
Certificate (“Vesting Schedule”). 

 

                The right of
exercise shall be cumulative so that to the extent the option is not exercised
in any period to the maximum extent permissible it shall continue to be
exercisable, in whole or in part, with respect to all shares for which it is
vested until the earlier of the Grant Expiration Date or the termination of
this option under Section 3 hereof or the Plan. 

 

3.             Exercise of
Option. 

 

(a)            Form of Exercise. Each
election to exercise this option shall be in writing, signed by the
Participant, and received by the Company at its principal office, accompanied
by this agreement, and payment in full in the manner provided in the Plan. The
Participant may purchase less than the number of shares covered hereby,
provided that no partial exercise of this option may be for any fractional
share. 

 

(b)           Continuous Relationship with the
Company Required.  Except as
otherwise provided in this Section 3, this option may not be exercised unless
the Participant, at the time he or she exercises this option, is, and has been
at all times since the Grant Date, an [employee or officer of], or consultant
or advisor to, the Company or any parent or subsidiary of the Company as
defined in Section 424(e) or (f) of the Code (an “Eligible Participant”). 

 

    
 

(c)            Termination of Relationship with
the Company. If the Participant ceases to be an Eligible Participant for any
reason, then, except as provided in paragraphs (d) and (e) below, the right to
exercise this option shall terminate three months after such cessation (but in
no event after the Grant Expiration Date), provided that this option shall be
exercisable only to the extent that the Participant was entitled to exercise
this option on the date of such cessation. 
Notwithstanding the foregoing, if, following the time the Participant
has ceased to be an Eligible Participant, but prior to the Grant Expiration
Date, the Participant materially breaches Section 6 or 7 of the Employment
Agreement between the Participant and the Company dated March 1, 2007 (the
“Employment Agreement”), the right to exercise this option shall terminate
immediately upon written notice to the Participant from the Company describing
such violation. 

 

(d)           Exercise Period Upon Death or
Disability.  If the Participant dies
or becomes disabled (within the meaning of Section 22(e)(3) of the Code) prior
to the Grant Expiration Date while he or she is an Eligible Participant and the
Company has not terminated such relationship for “cause” as specified in
paragraph (e) below, this option shall be exercisable, within the period of one
year following the date of death or disability of the Participant, by the
Participant (or in the case of death by an authorized transferee), provided
that this option shall be exercisable only to the extent that this option was
exercisable by the Participant on the date of his or her death or disability,
and further provided that this option shall not be exercisable after the Grant
Expiration Date. 

 

(e)            Discharge for Cause.  If the Participant, prior to the Grant
Expiration Date, is discharged by the Company for “cause” (as defined below),
the right to exercise this option shall terminate immediately upon the
effective date of such discharge. 
“Cause” shall have the meaning set forth in the Employment
Agreement.   

 

4.             Withholding.

 

                No Shares will be
issued pursuant to the exercise of this option unless and until the Participant
pays to the Company, or makes provision satisfactory to the Company for payment
of, any federal, state or local withholding taxes required by law to be
withheld in respect of this option. 

 

5.             Nontransferability
of Option. 

 

                This option may
not be sold, assigned, transferred, pledged or otherwise encumbered by the
Participant, either voluntarily or by operation of law, except by will or the
laws of descent and distribution, and, during the lifetime of the Participant,
this option shall be exercisable only by the Participant. 

 

6.             Disqualifying
Disposition. 

 

                If the Participant
diposes of Shares acquired upon exercise of this option within two years from
the Grant Date or one year after such Shares were acquired pursuant to exercise
of this option, the Participant shall notify the Company in writing of such
disposition. 

7.             Provisions of
the Plan. 

 

                This option is
subject to the provisions of the Plan, a copy of which is furnished to the
Participant with this option. 

 

 

IN WITNESS WHEREOF, the Company has caused this option to be executed
under its corporate seal by its duly authorized officer.  This option shall take effect as a sealed
instrument. 

 

	
   

  	
  SEPRACOR INC. 

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  

 

PARTICIPANT’S ACCEPTANCE 

 

                The Participant hereby accepts
the foregoing option and agrees to the terms and conditions thereof.  The 
Participant hereby acknowledges receipt of a copy of the Company’s 2000
Stock Incentive Plan. 

	
   

  	
  

  
	
   

  	
  Name:

  
	
   

  	
   

  	
   

  

 

SEPRACOR INC.

Nonstatutory Stock
Option Agreement

Granted Under 2000 Stock Incentive Plan

1.             Grant of Option.

This agreement
evidences the grant by Sepracor Inc., a Delaware corporation (the “Company”),
on the Grant Date indicated on the preceding Certificate of Stock Option Grant
(the “Certificate”) to  an employee,
consultant, or director of the Company (the “Participant”), of an option to
purchase, in whole or in part, on the terms provided herein and in the Company’s
2000 Stock Incentive Plan (the “Plan”), the number of shares (the “Shares”) of
common stock, $.10  par value per
share,  of the Company (“Common Stock”),indicated
on the certificate at the price  per
Share indicated on the Certificate. Unless earlier terminated, this option
shall expire on the Grant Expiration Date indicated on the Certificate (“Grant
Expiration Date”).

It is intended
that the option evidenced by this agreement shall not be an incentive stock
option as defined in Section 422 of the Internal Revenue Code of 1986, as
amended, and any regulations promulgated thereunder (the “Code”).  Except as otherwise indicated by the context,
the term “Participant”, as used in this option, shall be deemed to include any
person who acquires the right to exercise this option validly under its terms.

2.             Vesting Schedule.

This option will
become exercisable (“vest”) pursuant to the Vesting Schedule indicated on the
Certificate (“Vesting Schedule”).

The right of
exercise shall be cumulative so that to the extent the option is not exercised
in any period to the maximum extent permissible it shall continue to be
exercisable, in whole or in part, with respect to all shares for which it is
vested until the earlier of the Grant Expiration Date or the termination of
this option under Section 3 hereof or the Plan.

3.             Exercise of Option.

(a)           Form of Exercise. Each
election to exercise this option shall be in writing, signed by the
Participant, and received by the Company at its principal office, accompanied
by this agreement, and payment in full in the manner provided in the Plan. The
Participant may purchase less than the number of shares covered hereby,
provided that no partial exercise of this option may be for any fractional
share.

(b)           Continuous Relationship with the
Company Required.  Except as
otherwise provided in this Section 3, this option may not be exercised
unless the Participant, at the time he or she exercises this option, is, and
has been at all times since the Grant Date, an [employee or officer of], or
consultant or advisor to, the Company or any parent or subsidiary of the
Company as defined in Section 424(e) or (f) of the Code (an “Eligible
Participant”).

 

(c)           Termination of Relationship with
the Company. If the Participant ceases to be an Eligible Participant for
any reason, then, except as provided in paragraphs (d) and (e) below, the
right to exercise this option shall terminate  three
months after such cessation (but in no event after the Grant Expiration Date), provided
that this option shall be exercisable only to the extent that the Participant
was entitled to exercise this option on the date of such cessation.  Notwithstanding the foregoing, if, following
the time the Participant has ceased to be an Eligible Participant, but prior to
the Grant Expiration Date, the Participant materially breaches Section 6 or 7
of the Employment Agreement between the Participant and the Company dated March
1, 2007 (the “Employment Agreement”), the right to exercise this option shall
terminate immediately upon written notice to the Participant from the Company
describing  such violation.

(d)           Exercise Period Upon Death or
Disability.  If the Participant dies
or becomes disabled (within the meaning of Section 22(e)(3) of the Code)
prior to the Grant Expiration Date while he or she is an Eligible Participant
and the Company has not terminated such relationship for “cause” as specified
in paragraph (e) below, this option shall be exercisable, within the period of
one year following the date of death or disability of the Participant, by the
Participant (or in the case of death by an authorized transferee), provided
that this option shall be exercisable only to the extent that this
option was exercisable by the Participant on the date of his or her death or
disability, and further provided that this option shall not be exercisable
after the Grant Expiration Date.

(e)           Discharge for Cause.  If the Participant, prior to the Grant
Expiration Date, is discharged by the Company for “cause” (as defined below),
the right to exercise this option shall terminate immediately upon the
effective date of such discharge.  “Cause”
shall have the meaning set forth in the Employment Agreement.

4.             Withholding.

No Shares will be
issued pursuant to the exercise of this option unless and until the Participant
pays to the Company, or makes provision satisfactory to the Company for payment
of, any federal, state or local withholding taxes required by law to be
withheld in respect of this option.

5.             Nontransferability of Option.

This option may
not be sold, assigned, transferred, pledged or otherwise encumbered by the
Participant, either voluntarily or by operation of law, except by will or the
laws of descent and distribution, and, during the lifetime of the Participant,
this option shall be exercisable only by the Participant.

6.             Provisions of the Plan.

This option is
subject to the provisions of the Plan, a copy of which is furnished to the
Participant with this option.

 

IN WITNESS WHEREOF, the
Company has caused this option to be executed under its corporate seal by its
duly authorized officer.  This option
shall take effect as a sealed instrument.

	
   

  	
  SEPRACOR INC. 

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  

 

PARTICIPANT’S
ACCEPTANCE

The Participant
hereby accepts the foregoing option and agrees to the terms and conditions thereof.  The 
Participant hereby acknowledges receipt of a copy of the Company’s 2000
Stock Incentive Plan.

	
   

  	
  

  
	
   

  	
  Name:

  
	
   

  	
   

  	
   

  

 

SCHEDULE C

VACATION
POLICY

SEE ATTACHED POLICY

SCHEDULE
D

FORM OF SEPARATION AGREEMENT AND RELEASE OF CLAIMS

SEE
ATTACHED FORM

 

FORM OF
SEPARATION AGREEMENT AND RELEASE OF CLAIMS

In connection with your
employment separation from Sepracor, Inc. (the “Company”) on [INSERT TERMINATION DATE], and in order to receive the
benefits as set forth in Section 5 of the Employment agreement, this agreement
must become binding between you and the Company.  By signing and returning this agreement, 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 1.  Therefore, you are advised to consult with an
attorney before signing this agreement and you have been given more than
twenty-one (21) days to do so.  If you
sign this agreement, 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 agreement will
become a binding agreement between you and the Company upon the expiration of
the seven (7) day revocation period.

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

1.                                       Mutual Releases - 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,
successors and assigns, 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,
including, but not limited to, those claims arising out of your employment with
and/or separation from the Company, including, but not limited to, all 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., the Worker
Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et seq.,
Section 806 of the Corporate and Criminal Fraud Accountability Act of 2002, 18
U.S.C. § 1514(A), the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq.,
Executive Order 11246, Executive Order 11141, 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, § 105D, all as amended; all common law claims
including, but not limited to, actions in tort, defamation and breach of
contract; 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).  Notwithstanding
the foregoing, the release set forth in this Section 1 shall not apply to (a)
any claim to severance benefits under the Employment Agreement or your rights
under this agreement or (b) any vested equity interest in the Company,
including vested stock options.

The Company hereby fully, forever, irrevocably and
unconditionally releases, remises and discharges you 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 attorney’s fees and costs), of every kind and nature that
the Company ever had or now has against you as of the date of this agreement.

2.                                       Non-Disclosure, Non-Competition and
Non-Solicitation Obligations – You acknowledge and reaffirm your
obligation to keep confidential and not to disclose any and all non-public
information concerning the Company which you acquired during the course of your
employment with the Company, including, but not limited to, any non-public
information concerning the Company’s business affairs, business prospects and
financial condition, as is stated more fully in the [Name of the
Non-Disclosure Agreement] you executed at the inception of your
employment, which remains in full force and effect.  You further acknowledge and reaffirm your
obligations under the [Name of the
Non-Competition and/or Non-Solicitation Agreement(s)] you previously
executed for the benefit of the Company at the inception of your employment,
which also remain(s) in full force and effect.

3.                                       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 that you developed or
helped 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.

4.                                       Business Expenses and Compensation
- You acknowledge that you have been reimbursed by the Company for all 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 except as provided herein.

5.                                       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; provided, however,
that nothing herein shall prevent you from making truthful disclosures to any
governmental entity or in any litigation or arbitration.

6.                                       Amendment - This 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 agreement is binding upon and shall
inure to the benefit of the parties and their respective agents, assigns,
heirs, executors, successors and administrators.

7.                                       Waiver of Rights - 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.

8.                                       Validity - Should any provision of
this 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 agreement.

9.                                       Cooperation – You agree to
cooperate with the Company in the investigation, defense or prosecution of any
claims or actions now in existence or which may be brought in the future
against or on behalf of the Company. 
Your cooperation in connection with such claims or actions shall
include, but not be limited to, being available to meet with the Company’s
counsel to prepare for discovery or any mediation, arbitration, trial,
administrative hearing or other proceeding or to act as a witness when
reasonably requested by the Company at mutually agreeable times and at
locations mutually convenient to you and the Company.  You also agree to cooperate with the Company
in the transitioning of your work, and will be available to the Company for
this purpose or any other purpose reasonably requested by the Company.

10.                                 Tax Provision – In connection with
the severance benefits provided to you pursuant to this agreement, the Company
shall withhold and remit to the tax authorities the amounts required under
applicable law, and you shall be responsible for all applicable taxes with
respect to such severance benefits under applicable law.  You acknowledge that you are not relying upon
advice or representation of the Company with respect to the tax treatment of
any of the severance benefits.

11.                                 Section 409A - No payments that may
be made pursuant to this agreement that constitute “nonqualified deferred
compensation” within the meaning of Section 409A of the Internal Revenue Code
and the guidance issued thereunder (“Section 409A”) may be accelerated or
deferred by the Company or by you. 
Notwithstanding anything else to the 

contrary in this
agreement, to the extent that any of the payments that may be made hereunder
constitute “nonqualified deferred compensation”, within the meaning of Section
409A and you are a “specified employee” upon your separation (as defined under
Section 409A), any such payment shall be delayed following your separation date
if, absent such delay, such payment would otherwise be subject to penalty under
Section 409A.  In any event, the Company
makes no representation or warranty and shall have no liability to you or to
any other person if any provisions of this agreement are determined to
constitute “nonqualified deferred compensation” subject to Section 409A but do
not satisfy the requirements of that section. 

12.                                 Nature of Agreement - You
understand and agree that this agreement is a severance agreement and does not
constitute an admission of liability or wrongdoing on the part of the Company.

13.                                 Acknowledgments - You acknowledge
that you have been given at least twenty-one (21) days to consider this
agreement and that the Company advised you to consult with an attorney of your
own choosing prior to signing this agreement. 
You understand that you may revoke this agreement for a period of seven
(7) days after you sign this agreement, and the 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 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 agreement, and that
you fully understand the meaning and intent of this agreement.  You state and represent that you have had an
opportunity to fully discuss and review the terms of this agreement with an
attorney.  You further state and
represent that you have carefully read this agreement, 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 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 agreement, are the
only courts of competent jurisdiction), over any suit, action or other
proceeding arising out of, under or in connection with this agreement or the
subject matter hereof.

16.                                 Entire Agreement - This agreement
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 and writings in connection therewith.
Nothing in this paragraph, however, shall modify, cancel or supersede your
obligations set forth in paragraph 2 herein.

 

 

	
  

  	
  SEPRACOR INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

I hereby agree to the
terms and conditions set forth above.  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 agreement become a binding agreement between me and
the Company if I do not revoke my acceptance in seven (7) days by notifying
                                              
in writing.

 

	
  

  	
   

  	
  Date

  	
   

  
	
  Employee Name:

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