Document:

<PAGE>
                                                                  EXHIBIT 10(dd)

                           ANNUAL EMPLOYEE INCENTIVE
                  COMPENSATION PLAN FOR CMS ENERGY CORPORATION
                              AND ITS SUBSIDIARIES

Effective January 1, 2003
Approved by Committee on May 23, 2003

                                       1
<PAGE>

                            ANNUAL EMPLOYEE INCENTIVE
                  COMPENSATION PLAN FOR CMS ENERGY CORPORATION
                              AND ITS SUBSIDIARIES

    I.   GENERAL PROVISIONS

         1.1   PURPOSE.  The purpose of the Annual Employee Incentive
               Compensation Plan ("EIC Plan") is to:

               (a) Provide an equitable and competitive level of compensation
                   that will permit CMS Energy Corporation ("Company") and its
                   subsidiaries to attract, retain and motivate their Employees.

               (b) No payments to Employees in the form of incentive
                   compensation shall be made unless pursuant to a plan approved
                   by the Committee and after express approval of the Committee.

         1.2   EFFECTIVE DATE.  The predecessor to the EIC Plan was initially
               effective as of January 1, 1986 and that predecessor, as amended,
               is hereby terminated. The EIC Plan as described herein, is
               effective as of January 1, 2003.

         1.3   DEFINITIONS.  As used in this EIC Plan, the following terms have
               the meaning described below:

               (a)  "Annual Award" means an annual incentive award granted under
                    the EIC Plan.

               (b)  "CMS Energy" means CMS Energy Corporation.

               (c)  "Committee" means the Committee on Organization and
                    Compensation of the Board of Directors of CMS Energy.

               (d)  "Common Stock" means the common stock of CMS Energy.

               (e)  "Company" means CMS Energy Corporation.

               (f)  "Corporate Free Cash Flow" (CFCF) means CMS Consolidated
                    Cash Flow from operating activities, excluding pension
                    contributions and adjusted for GCR Recovery, plus Cash Flow
                    from Investing Activities.

               (g)  "Earnings Per Share" (EPS) means the amount of ongoing net
                    income per outstanding CMS Energy Share.

               (h)  "Disability" means that a participant has terminated
                    employment with the Company or a Subsidiary and is entitled
                    to disability payments under the Pension Plan.

               (i)  "EIC Plan" means the Annual Employee Incentive Compensation
                    Plan for CMS Energy Corporation and Its Subsidiaries, as
                    effective January 1, 2003 and any amendments thereto.

                                       2
<PAGE>

               (j)  "Employee" means a regular fulltime employee of the
                    Company or a Subsidiary in the salary grades specified in
                    the table contained in Article III of the EIC Plan.

               (k)  "GCR Recovery" means actual/forecast incremental GCR
                    recovery during January and February of 2004 calculated
                    as actual/forecast GCR cycle billed sales times above
                    budget GCR factor.

               (k)  "Leave of Absence" for purposes of this EIC Plan means a
                    leave of absence that has been approved by the Company or a
                    Subsidiary.

               (l)  "Outside Directors" means directors of CMS Energy who are
                    not employed by CMS Energy or a Subsidiary and satisfy the
                    requirements of an "Outside Director" under Code Section
                    162(m).

               (m)  "Pension Plan" means the Pension Plan for Employees of
                    Consumers Energy and Other CMS Energy Companies.

               (n)  "Performance Year" means the calendar year prior to the year
                    in which an Annual Award is made by the Committee.

               (o)  "Plan Administrator" means the Sr. Vice President - Human
                    Resources of CMS Energy, under the general direction of the
                    Outside Directors on the Committee.

               (p)  "Retirement" means that an EIC Plan participant is no
                    longer an active employee and qualifies for a retirement
                    benefit other than a deferred vested retirement benefit
                    under the Pension Plan.

               (q)  "Subsidiary" means any direct or indirect subsidiary of the
                    Company.

        1.4    ELIGIBILITY.  Regular fulltime employees are eligible for
               participation in the EIC Plan.

        1.5    ADMINISTRATION OF THE PLAN.

               (a)  The EIC Plan is administered by the Sr. Vice President -
                    Human Resources of CMS Energy under the general direction of
                    the Outside Directors who are members of the Committee.

               (b)  The Committee, no later than March 30th of the Performance
                    Year, will approve performance goals for the Performance
                    Year.

               (c)  The Committee, no later than March 30th of the calendar year
                    following the Performance Year, will review for approval
                    proposed Annual Awards for all EIC Plan participants, as
                    recommended by the Chairman and CEO of the Company. All
                    proposed Annual Awards are subject to approval of the
                    Committee. Before the payment of any Annual Awards, the
                    Committee will certify in writing that the performance goals
                    were in fact satisfied in accordance with Code Section
                    162(m).

               (d)  The Committee reserves the right to modify the performance
                    goals with respect to unforeseeable circumstances or
                    otherwise exercise discretion with respect to proposed
                    Annual Awards as it deems necessary to maintain the spirit
                    and intent of the EIC Plan. The Committee also reserves the
                    right in its discretion to not pay Annual Awards for a
                    Performance Year. All discretionary decisions of the
                    Committee are final.

                                       3
<PAGE>

  II.   CORPORATE PERFORMANCE GOALS

        2.1 IN GENERAL. The composite Plan Performance Factor will depend on
        corporate performance in two areas: (1) the net ongoing income per
        outstanding CMS Energy share (EPS); and (2) the Corporate Free Cash Flow
        of CMS Energy (CFCF). There will be no payout under the Plan unless a
        composite Plan Performance Factor of at least 60% is achieved. The
        composite Plan Performance Factor to be used for payouts will be capped
        at a maximum of 200%. A table containing the composite Plan Performance
        Factors shall be created by the Committee for each Performance Year. The
        table for Performance Year 2003 is set forth below.

            (a)     EPS COMPONENT. EPS performance shall constitute 40% of the
                    composite Plan Performance Factor. The 100% EPS goal for
                    the 2003 performance year is $.80 per share, and the EPS
                    component shall increase or decrease by 50% for each $.10
                    per share change in performance. (Mathematical
                    interpolation shall be used for actual results not shown in
                    the table.) There will be no payout under the plan unless
                    at least $.60 per share is achieved (regardless of CFCF
                    performance).

            (b)     CFCF COMPONENT. CFCF performance shall constitute 60% of the
                    composite Plan Performance Factor. The 100% CFCF goal for
                    the 2003 performance year is $400 million, and the CFCF
                    component shall increase or decrease by 25% for each $50
                    million change in performance. (Mathematical interpolation
                    shall be used for actual results not shown in the table.)
                    There will be no payout under the plan unless at least $250
                    million is achieved (regardless of EPS performance).

             COMPOSITE PERFORMANCE FACTORS FOR 2003 PERFORMANCE YEAR

<TABLE>
------------------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
      CFCF Component
      (Millions)              $250      $300         $350        $400        $450        $500       $550
------------------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
EPS COMPONENT
<S>                      <C>         <C>          <C>         <C>         <C>         <C>         <C>

------------------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
$.60                        NONE        NONE         NONE        60%         75%         90%        105%
------------------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
$.70                        NONE        NONE         65%         80%         95%         110%       125%
------------------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
$.80                        NONE         70%         85%         100%        115%        130%       145%
------------------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
$.90                        75%          90%         105%        120%        135%        150%       165%
------------------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
$1.00                       95%         110%         125%        140%        155%        170%       185%
------------------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
$1.10                       115%        130%         145%        160%        175%        190%       200%
------------------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
$1.20                       135%        150%         165%        180%        195%        200%       200%
------------------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
$1.30                       155%        170%         185%        200%        200%        200%       200%
------------------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
</TABLE>

    Notes:  Mathematical interpolation shall be used for actual results not
    shown in the table.
    Target Award is Bolded 100% and Maximum Award is Bolded 200%

III.     ANNUAL AWARD FORMULA

         3.1           ANNUAL AWARDS. Annual Awards for each eligible EIC Plan
                       participant will be based upon a standard award as set
                       forth in the table below. The total amount of an EIC
                       participant Annual Award shall be computed according to
                       the annual award formula set forth in Section 3.2.

                                       4
<PAGE>

<TABLE>
<CAPTION>
                                                                   YEAR
                                                                    END
                                                                   SALARY
                                   POSITION                        GRADE           STANDARD AWARD AMOUNT
                      ----------------------------
<S>                                                                <C>             <C>
                      Sr. Consultants & Equivalent                  8-10/C                  $1,000
                      Consultants & Equivalent                       5-7/B                  $  750
                      Advisors & Equivalent                          1-4/A                  $  625
                      All Non-exempt Employees                      various                 $  500
</TABLE>

         3.2           Annual Awards for EIC participants will be calculated
                       and made as follows:

      INDIVIDUAL AWARD = STANDARD AWARD AMOUNT TIMES PERFORMANCE FACTOR %

IV.  PAYMENT OF ANNUAL AWARDS

         4.1  CASH ANNUAL AWARD. All Annual Awards for a Performance Year will
              be paid in cash no later than March 31st of the calendar year
              following the Performance Year provided that they first have been
              reviewed and approved by the Committee. The amounts required by
              law to be withheld for income and employment taxes will be
              deducted from the Annual Award payments. All Annual Awards become
              the obligation of the company on whose payroll the Employee is
              enrolled at the time the Committee makes the Annual Award.

         4.2  PAYMENT IN THE EVENT OF DEATH.

              (a) A participant may name the beneficiary of his or her choice on
                  a beneficiary form provided by the Company, and the
                  beneficiary shall receive payment in the event that the
                  Participant dies prior to receipt of a cash Annual Award. If a
                  beneficiary is not named, the payment will be made to the
                  first surviving class as follows:

                            1. Widow or Widower
                            2. Children, per capita
                            3. Parents, per capita
                            4. Brothers and Sisters, per capita
                            5. Estate of the Deceased

              (b) A participant may change beneficiaries at any time, and the
                  change will be effective as of the date the participant
                  completes and signs the beneficiary form, whether or not the
                  participant is living at the time the request is received by
                  the Company. However, the Company or the applicable Subsidiary
                  will not be liable for any payments made before receipt of a
                  written request.

V.   CHANGE OF STATUS

              Payments in the event of a change in status will not apply if no
              awards are made for the performance year.

        5.1   PRO-RATA ANNUAL AWARDS. A new EIC participant, hired during the
              Performance Year will receive a pro rata Annual Award based on
              the percentage of the Performance Year in which the employee
              is employed.

                                       5
<PAGE>

        5.2   TERMINATION. An EIC participant whose employment is terminated
              pursuant to a violation of the Company code of conduct or other
              corporate policies will not be considered for an Annual Award.

        5.3   RESIGNATION. An EIC participant who resigns during or after a
              Performance Year will not be eligible for an Annual Award. If the
              resignation is due to reasons such as a downsizing or
              reorganization, or the ill health of the employee or ill health in
              the immediate family, the employee may petition the Committee and
              may be considered, in the discretion of the Committee, for a pro
              rata Annual Award. The Committee's decision to approve or deny the
              request for a pro rata Annual Award shall be final.

        5.4   DEATH, DISABILITY, RETIREMENT, LEAVE OF ABSENCE. An EIC
              participant whose status as an active employee is changed during
              the Performance Year due to death, Disability, Retirement, or
              Leave of Absence will receive a pro rata Annual Award.

  VI.    MISCELLANEOUS

        6.1   IMPACT ON BENEFIT PLANS. Payments made under the Plan will be not
              be considered as earnings for purposes of the Employees' Savings
              Plan, Pension Plan, or other employee benefit programs.

        6.2   IMPACT ON EMPLOYMENT. Neither the adoption of the Plan nor the
              granting of any Annual Award under the Plan will be deemed to
              create any right in any individual to be retained or continued in
              the employment of the Company or any corporation within the
              Company's control group.

        6.3   TERMINATION OR AMENDMENT OF THE PLAN. The Company at any time
              may, in writing, terminate or amend the Plan.

        6.4   GOVERNING LAW. The Plan will be governed and construed in
              accordance with the laws of the State of Michigan.

        6.5   DISPUTE RESOLUTION. Any disputes related to the Plan should first
              be brought to the Plan Administrator. If that does not result in
              a mutually agreeable resolution, then the dispute shall be
              subject to final and binding arbitration before a single
              arbitrator selected by the parties to be conducted in Jackson,
              Michigan. The arbitration will be conducted and finished within
              90 days of the selection of the arbitrator. The parties shall
              share equally the cost of the arbitrator and of conducting the
              arbitration proceeding, but each party shall bear the cost of its
              own legal counsel and experts and other out-of-pocket
              expenditures.

                                       6<PAGE>

                                                                   EXHIBIT 10.17

                                October 10, 2003

Mr. Michael A. Martino
c/o Sonus Pharmaceuticals, Inc.
22026 20th Avenue
Bothell, Washington 98021

                   Re: Change In Control Agreement

Dear Mike:

         In consideration of your employment with Sonus Pharmaceuticals, Inc., a
Delaware corporation (the "Company"), you and the Company entered into a letter
Change in Control Agreement dated July 18, 2001 (the "Prior Agreement"). For
good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, you and the Company desire to amend and restate the Prior
Agreement as set forth herein. This letter agreement (the "Agreement") amends
and restates the Prior Agreement and sets forth the compensation and benefits
you will be entitled to receive in the event your employment terminates in
connection with a change in control of the Company under the conditions
described below. This Agreement takes effect on the date set forth above.

1.       TERMINATION OF EMPLOYMENT.

         1.1.     During the term of this Agreement, you will be entitled to the
benefits provided in Section 2 of this Agreement in the event (A) a Change in
Control has occurred; and (B) (i) you terminate your employment with the Company
for Good Reason within 12 months following the Change of Control, or (ii) the
Company terminates your employment for reasons other than Cause, Disability, or
your death within 12 months following the Change of Control, provided you
fulfill your obligations under this Agreement.

         1.2      For purposes of this Agreement, the term "Change in Control"
shall mean (i) a sale of fifty percent (50%) or more of the outstanding shares
of common stock of the Company; (ii) a sale of all or substantially all of the
assets of the Company, or (iii) a merger, consolidation or reorganization
whereby the stockholders of the Company immediately prior to the consummation of
such merger, consolidation or reorganization own less than fifty percent (50%)
of the outstanding shares of common stock immediately following the consummation
of the merger, consolidation or reorganization.

<PAGE>

Mr. Michael A. Martino
October 10, 2003
Page 2

         1.3.     For purposes of this Agreement, the term "Good Reason" shall
mean any of the following, if done without your consent:

                  1.3.1.   A substantial diminution in your duties and
responsibilities to a level substantially beneath that of your duties and
responsibilities as President and Chief Executive Officer of the Company other
than actions that are not taken in bad faith and are remedied by the Company
within thirty days after written notice by you;

                  1.3.2.   A reduction by the Company in your annual base salary
in effect as of the effective date of the Change in Control unless such
reduction is attributable to an across the board salary reduction for all of
management personnel of the Company and then only if the percentage of your
reduction is (i) not greater than 10%, and (ii) no greater than that of the
other management personnel;

                  1.3.3.   The Company requires the relocation of your base of
employment outside the Seattle, Washington metropolitan area;

                  1.3.4.   A material breach by the Company of any of the terms
and provisions of this Agreement, which is not cured within 30 days of written
notice by you of such breach; or

                  1.3.5.   the failure of the Company to obtain a satisfactory
agreement from any successor in a Change of Control to assume and agree to
perform this Agreement, as contemplated in Section 6 hereof.

         1.4      For purposes of this Agreement, the term "Cause" shall mean
any of the following: (i) your willful and continued failure or refusal to
perform your duties with the Company; (b) your willfully engaging in gross
misconduct injurious to the Company; (c) your being convicted or pleading guilty
or nolo contendere to any misdemeanor involving moral turpitude or to any
felony; (d) your having materially breached any provision of this Agreement, or
any agreement concerning confidentiality or ownership of inventions with the
Company and failed to cure such breach to the reasonable satisfaction of the
Company within 30 days after receiving written notice of breach if such cure is
possible.

         1.5.     For purposes of this Agreement, the term "Disability" shall
mean your inability to perform the essential functions of your position due to
any physical or mental illness even with reasonable accommodation to the extent
required by law, for any period of six months in the aggregate during any twelve
months, provided the Company has given you a written demand to return to your
full time duties.

         1.6      Any termination of employment by you or by the Company
pursuant to this Agreement shall be communicated by written Notice of
Termination indicating the termination provision in this Agreement relied upon,
if any. For purposes of this Agreement, the "Date of Termination" shall mean the
date specified in the Notice of Termination which shall not be earlier than ten
(10) business days after the date on the Notice of Termination is given and, if
applicable, the expiration of the period given to cure a breach as provided in
Section 1.4(d) of this Agreement.

                                       2
<PAGE>

Mr. Michael A. Martino
October 10, 2003
Page 3

2.       COMPENSATION UPON TERMINATION.

         2.1.     If your employment shall be terminated and you are entitled to
benefits under Section 1 of this Agreement then, except as provided in
Subsection 2.2, you shall receive the following benefits:

                  2.1.1.   the Company shall pay to you in a lump sum within ten
days following the Date of Termination (a) your base salary unpaid through the
Date of Termination at the rate in effect as of the time of Notice of
Termination and (b) an amount equal to the value as of the Date of Termination
of the deferred portion of any bonus which has been declared but is unpaid under
any incentive compensation plan or program of the Company then in effect;

                  2.1.2.   the Company shall pay to you as severance pay in a
lump sum within thirty days following the Date of Termination an amount equal to
the product of the sum of your highest annual base salary in effect any time
during the twelve (12) month period prior to the Date of Termination, multiplied
by 2.99; and

                  2.1.3.   the Company shall maintain in full force and effect,
for the continued benefit of you for three years after the Date of Termination,
or, if sooner, until you are employed in a full-time capacity by another
employer, all non-cash health and welfare plans and programs (excluding 401(k)
or any employee bonus plans and programs or retirement plans or programs) in
which you participated immediately prior to the Date of Termination provided
that your continued participation is permissible under the general terms and
provisions of such plans and programs. In the event that your participation in
any such plan or program is barred, the Company shall arrange to provide you
with benefits substantially similar to those which you are entitled to receive
under such plans and programs at no cost to you. At the end of the period of
coverage, you shall have the option to have assigned to you at no cost and with
no apportionment of prepaid premiums, any assignable insurance policy owned by
the Company and relating specifically to you.

         2.2.     Notwithstanding Section 1, the respective obligations of, and
benefits afforded to, the Company and you as provided in this Section 2, shall
survive termination of this Agreement.

         2.3.     No compensation or benefits shall be due under this Agreement
in the event your employment is terminated by you or the Company in
circumstances other than those described in Section 1.1, including but not
limited to a termination by you for any reason other than Good Reason, a
termination by the Company for Cause, Disability, or death, or any termination
that does not occur within twelve months following a Change in Control.

         2.4.     To the extent that any or all of the payments and benefits
provided for in this Agreement constitute "parachute payments" within the
meaning of Section 280G of the Internal Revenue Code (the "Code") and, but for
this Section 2.4 would be subject to the excise tax imposed by Section 4999 of
the Code, the aggregate amount of such payments and benefits shall be reduced
such that the present value thereof (as determined under the Code and applicable
regulations) is equal to 2.99 times the Executive's "base amount" (as defined in
the Code). The determination of any reduction of any payment or benefits under
Section 2 pursuant to the foregoing provision shall be made by a nationally
recognized public accounting firm chosen by the Company in good faith, and such
determination shall be conclusive and binding on the Company and you.

                                       3
<PAGE>

Mr. Michael A. Martino
October 10, 2003
Page 4

3.       OTHER BENEFITS.

         In the event you are entitled to any compensation or benefits under
this Agreement, you shall not be entitled to any other severance compensation or
benefits under any other policy or agreement with the Company.

4.       PROPRIETARY INFORMATION AND UNFAIR COMPETITION.

         4.1      You acknowledge that in the course of your employment with the
Company, you will be entrusted with access to extensive confidential information
of the Company concerning its products and service, methods of manufacture,
research and development, know-how, patents, copyrights, trademarks, and other
proprietary data, as well as the identity, needs, and preferences of its
customers and prospects, all of which the Company considers its legally
protected trade secrets and intellectual property. You further acknowledge the
highly competitive nature of the business of the Company, and the fact that
unauthorized disclosure or use of such trade secrets and intellectual property
would be inevitable if you were to compete with the Company or solicit competing
business from its prospects and customers. You therefore agree as follows:

         4.2      Commencing on the Date of Termination, and ending one year
thereafter, (the "Non-compete Period"), you will not provide goods or services
to, or become an employee, owner (except for passive investments of not more
than 3% of the outstanding shares of, or any other equity interest in, any
company or entity listed or traded on a national securities exchange or in an
over-the-counter securities market), officer, agent, consultant, advisor or
director of any firm or person in any geographic area which competes with the
"Business". For purposes of this Agreement, the term "Business" shall mean the
specific business conducted by the Company on the Date of Termination. As of the
date of this Agreement, the "Business" of the Company consists of the research,
design, development, manufacture, sale or distribution of Vitamin E
emulsion-based drug delivery products.

         4.3      During the Non-Compete Period, you will not directly or
indirectly induce any employee of the Company or any of its affiliates to engage
in any activity in which you are prohibited from engaging by paragraph 4.2
above, or to terminate such employee's employment with the Company, or any of
its affiliates, and will not directly or indirectly employ or offer employment
to any person who was employed by the Company or any of its affiliates unless
such person shall cease to be employed by the Company or any of its affiliates
for a period of at least 12 months; provided, however, that this provision shall
not apply to any person who is no longer an employee of the Company or any of
its affiliates as of a result of actions taken by the Company or its affiliates.

         4.4      During the Non-Compete Period, you will refrain from making
any statement which has the effect of demeaning the name or the business
reputation of the Company or its subsidiaries or affiliates, or any officer or
employee thereof, or which materially adversely effects the best interests
(economic or otherwise) of the Company, its subsidiaries or affiliates.

         4.5.     It is expressly understood and agreed that although you and
the Company consider the restrictions contained in this Section 4 to be
reasonable, if a final judicial determination is made by a court of jurisdiction
that the time or territory or any other restriction contained in this Agreement
is an unenforceable restriction against you, provisions of this Agreement shall
not be rendered void, but shall be deemed amended to apply to such maximum time
and territory and to such maximum

                                       4
<PAGE>

Mr. Michael A. Martino
October 10, 2003
Page 5

extent as such court may judicially determine or indicate to be enforceable.
Alternatively, if any court of competent jurisdiction finds that any restriction
contained in this Agreement is unenforceable, and such restriction cannot be
amended so as to make it enforceable, such finding shall not effect the
enforceability of any of the other restriction contained herein.

5.       MISCELLANEOUS.

         Any payment required under this Agreement shall be subject to all
requirements of the law with regard to withholding, filing, making of reports
and the like, and the Company shall use its commercially reasonable best efforts
to satisfy promptly all such requirements. No provisions of this Agreement may
be modified, waived or discharged unless such waiver, modification or discharge
is agreed to in a writing signed by both parties. The validity, interpretation,
construction and performance of this Agreement shall be governed by the law of
the State of Delaware.

6.       SUCCESSORS AND ASSIGNMENT.

         This agreement and all of your rights thereunder shall inure to the
benefit of and be enforceable by your personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees. Except as expressly provided in this Agreement, this Agreement is
personal to you and may not be assigned to you. If you should die while any
amounts would still be payable to you hereunder if you had continued to live,
all such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to your devisee, legatee, or other designee or,
if there be no such designee, to your estate. This Agreement shall be binding
upon any successor to the Company (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company.

7.       TERM OF AGREEMENT.

         This Agreement shall commence as of the date of this Agreement and
shall terminate on the earliest of (i) the termination of your employment by the
Company for Cause, Disability or death; (ii) your termination of employment
other than for Good Reason or (iii) your reaching age 65.

8.       NO GUARANTEE OF CONTINUED EMPLOYMENT.

         This Agreement is intended solely to provide you with certain
compensation and benefits in the event your employment terminates in the
circumstances described in Section 1.1. Nothing in this Agreement constitutes or
implies any specific term of employment. You acknowledge and agree that your
employment with the Company can be terminated by you or the Company at any time
with or without cause or prior warning. Nothing in this Agreement limits or
supersedes any other agreements between you and the Company concerning
confidentiality or ownership of intellectual property.

9.       MEDIATION

         In the event that the Company terminates you for Cause and you dispute
its right to do so or you claim that your are entitled to terminate your
employment for Good Reason and the Company disputes your right to do so, a
mediator acceptable to you and the Company will be appointed within

                                       5
<PAGE>

Mr. Michael A. Martino
October 10, 2003
Page 6

ten (10) days to assist in reaching a mutually satisfactory resolution but will
have no authority to issue a binding decision. Such mediation must be concluded
within 60 days of the date of termination or claim to termination. Should such
mediation fail to reach an acceptable conclusion and you are successful in any
litigation or settlement that issues from such dispute, you shall be entitled to
receive from the Company all of the expenses incurred by you in connection with
any such dispute including reasonable attorney's fees.

         If this Agreement is acceptable to you, kindly sign and return to the
Company the enclosed copy of this letter.

                                     Sincerely,

                                     SONUS Pharmaceuticals, Inc.

                                     By: /s/  Robert E. Ivy
                                         ---------------------------------------
                                         Robert E. Ivy, Co-Chairman of the Board

AGREED AND ACCEPTED:

/s/ Michael A. Martino
--------------------------
Michael A. Martino

Dated: November 12, 2003

                                       6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}]]