Document:

Exhibit
10.2

    

    TERMINATION
AGREEMENT

    

    TERMINATION
AGREEMENT (this “Agreement”) is made as of the
May 30, 2008, by and among Tekni-Plex, Inc. (the “Company”), certain holders of
Preferred Stock and certain holders of Common Stock.

    

    W
I T N E S S E T H:

     

    WHEREAS, the Company and
certain of its stakeholders are parties to an Amended and Restated Investors’
Agreement dated as of May 13, 2005 (the “Investors’
Agreement”);

    

    WHEREAS, any amendment or
termination of the Investors’ Agreement requires the approval of (i) the Board
of Directors of the Company (the “Board”); (ii) the stockholders
holding at least 66 2/3 % of the outstanding common stock of the Company; and
(iii) the stockholders holding at least a majority of the outstanding Preferred
Stock of the Company (the “Required Preferred
Stockholders”);

    

    WHEREAS, the Company and
certain of its stakeholders (including holders of at least a majority of the
outstanding Preferred Stock and the holders of all of the outstanding Common
Stock) have entered into the Restructuring Agreement dated as of April 11, 2008
(the “Restructuring
Agreement”);

    

    WHEREAS, as part of the
transactions contemplated by the Restructuring Agreement, the Board has approved
the termination of the Investors’ Agreement and the Board has approved and
adopted this Agreement and the undersigned parties (each a “Party”, and collectively the
“Parties”), constituting
stockholders holding at least 66 2/3% of the outstanding Common Stock and the
Required Preferred Stockholders, desire to terminate the Investors’
Agreement.

    

    NOW, THEREFORE, in
consideration of the premises and covenants set forth herein and in connection
with the Restructuring (as defined in the Restructuring Agreement) and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, intending to be legally bound hereby, the Parties agree as
follows:

    

    Section
1.  Definitions. Each capitalized
term used but not defined herein shall have the meaning ascribed such term in
the Investors’ Agreement.

     

    Section
2.  Termination. The Investors’
Agreement is hereby cancelled and terminated, shall have no further force and
effect and shall be null and void.

     

    Section 3.
Release.  Each
Party hereby fully and forever releases and discharges each other Party from any
and all claims, rights, demands, agreements, 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    contracts,
covenants, actions, suits, causes of action, obligations, controversies, debts,
costs, expenses, damages, judgments, orders and liabilities of whatever kind or
nature in law, equity or otherwise, now known or unknown, suspected or
unsuspected, whether or not concealed or hidden, matured or unmatured and
whether or not asserted in any litigation which any Party hereto ever had or now
has, relating in any way to the Investors’ Agreement, including, but not limited
to, any rights triggered in connection with the Restructuring, if
any.

    

    Section
4.  Governing Law;
Submission to Jurisdiction.  (a) This Agreement
shall be subject to, governed by and construed in accordance with the internal
laws of the State of Delaware, without giving effect to any conflicts or choice
of law provisions that would make applicable the substantive laws of any other
jurisdiction.  Each Party hereby agrees (1) that this Agreement
involves matters in controversy of at least $100,000 and (2) that this Agreement
has been entered into by the Parties in express reliance upon 6 Del. C. Section
2708.

    

    (b) Each
Party hereby irrevocably and unconditionally agrees (1) to be subject to the
jurisdiction of the courts of the State of Delaware and the federal courts
sitting in the State of Delaware or in the County of New York in the State of
New York, and (2) to the fullest extent permitted by applicable law, that
service of process may also be made on such party by prepaid certified mail with
a validated proof of mailing receipt constituting evidence of valid service, and
that service made pursuant to (2) above shall have the same legal force and
effect as if served upon said party personally within the State of
Delaware.

    

    Section 5.
Waiver of Jury
Trial.  Each Party hereby irrevocably waives any and all right
to trial by jury in any legal proceeding arising out of or related to this
Agreement or the transactions contemplated hereby.

    

    Section 6.
Counterparts; Third Party
Beneficiaries.  This Agreement may be executed in multiple
counterparts, each of which shall be deemed to be an original, but all of which
shall be and constitute one and the same instrument. No provision of this
Agreement is intended to confer upon any Person other than the Parties hereto
any rights or remedies hereunder.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
 

    IN WITNESS
WHEREOF, the Parties hereto have caused this Agreement to be duly executed as of
the day and year first above written.

    

    
      	
              TEKNI-PLEX,
      INC.

            	 
	 	 
	 	 
	
              By:

            	
              /s/
      James E. Condon

            	 
	 
    	
              Name:

            	
              James
      E. Condon

            	 
	 
    	
              Title:

            	
              Chief
      Financial Officer

            	 

    

    

     

    

    

    

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              TEKNI-PLEX
      PARTNERS LLC,

                      by
      its Managing Member

                      Tekni-Plex
      Management LLC

            	 
	 	 
	 	 
	
              By:

            	
              /s/
      F. Patrick Smith

            	 
	 
    	
              Name:

            	
              Dr.
      F. Patrick Smith

            	 
	 
    	
              Title:

            	
              Managing
      Member of

              Tekni-Plex
      Management LLC

            	 

    

    

    
      	
              MST/TP
      PARTNERS LLC

                      by
      its Managing Member

                      Tekni-Plex
      Management LLC

            	 
	 	 
	 	 
	
              By:

            	
              /s/
      F. Patrick Smith

            	 
	 
    	
              Name:

            	
              Dr.
      F. Patrick Smith

            	 
	 
    	
              Title:

            	
              Managing
      Member of

              Tekni-Plex
      Management LLC

            	 

    

    

    
      	
              TEKNI-PLEX
      MANAGEMENT LLC

            	 
	 	 
	 	 
	
              By:

            	
              /s/
      F. Patrick Smith

            	 
	 
    	
              Name:

            	
              Dr.
      F. Patrick Smith

            	 
	 
    	
              Title:

            	
              Managing
      Member

            	 

    

    

     

    

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              DR.
      F. PATRICK SMITH

            	 
	 	 
	 	 
	
              By:

            	
              /s/
      F. Patrick Smith

            	 
	 	

              Dr.
      F. Patrick Smith

              c/o
      Tekni-Plex, Inc.

              201
      Industrial Parkway

              Somerville,
      NJ 08876

              Facsimile
      Number: (972) 304-6297 

            	 

    

    

     

    

    

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

    
      	
              MICHAEL
      F. CRONIN

            	 
	 	 
	 	 
	
              By:

            	
              /s/
      Michael F. Cronin

            	 
	 	

              Michael
      F. Cronin

              c/o
      Weston Presidio Capital

              200
      Clarendon Street, 50th
      Floor

              Boston,
      MA 02116

              Facsimile:
      (617) 988-2515

            	 

    

     

    

    

    

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

       

      
        	Sumner
      Kaufman	 
	Name
      of Party	 
	 	 	 
	 	 	 
	
                By:

              	
                /s/ Sumner
      Kaufman

              	 
	
                Name:

              	
                Sumner
      Kaufman

              	 
	
                Title:

              	 
    	 

      

    

     

     

    

    

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      
        	Christine
      Des Rosiers	 
	Name
      of Party	 
	 	 	 
	 	 	 
	
                By:

              	
                /s/ Christine Des
      Rosiers

              	 
	
                Name:

              	
                Christine
      Des Rosiers

              	 
	
                Title:

              	 
    	 

      

    

     

     

    

    

    

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    

    
      
        	Harold
      O. Shattuck	 
	Name
      of Party	 
	 	 	 
	 	 	 
	
                By:

              	
                /s/ Harold O.
      Shattuck

              	 
	
                Name:

              	
                Harold
      O. Shattuck

              	 
	
                Title:

              	 
    	 

      

    

     

    

    

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    

    
      
        	Forrest
      Binkley & Brown Capital Partners,
    LLC	 
	Name
      of Party	 
	 	 	 
	 	 	 
	
                By:

              	
                /s/ Jeffrey
      Brown

              	 
	
                Name:

              	
                      
                  Jeffrey
      Brown

                

              	 
	
                Title:

              	      
                Authorized
      Member

              	 

      

     

    

    

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    

    
      
        	      
                David
      Tuttle

              	 
	Name
      of Party	 
	 	 	 
	 	 	 
	
                By:

              	
                /s/ David
      Tuttle

              	 
	
                Name:

              	
                      
                  David
      Tuttle

                

              	 
	
                Title:

              	 
    	 

      

    

     

    

    

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	      
                Eastport
      Operating Partners

              	 
	Name
      of Party	 
	 	 	 
	 	 	 
	
                By:

              	
                /s/ J.
      Andrew McWethy

              	 
	
                Name:

              	
                      
                        
                    J.
      Andrew McWethy

                  

                

              	 
	
                Title:

              	General
      Partner	 

      

    
 

    

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

     

    
      
        	      
                      
                  Beverly
      A. Bravo

                

              	 
	Name
      of Party	 
	 	 	 
	 	 	 
	
                By:

              	
                /s/ Beverly
      A. Bravo

              	 
	
                Name:

              	
                      
                        
                          
                      Beverly
      A. Bravo

                    

                  

                

              	 
	
                Title:

              	 	 

      

    

     

    

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

    
      
        	      
                      
                        
                    Rowland
      T. Moriarty

                  

                

              	 
	Name
      of Party	 
	 	 	 
	 	 	 
	
                By:

              	
                /s/ Rowland
      T. Moriarty

              	 
	
                Name:

              	
                      
                        
                          
                            
                        Rowland
      T.
      Moriarty

                      

                    

                  

                

              	 
	
                Title:

              	 	 

      

    
 

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

    
      	
              WESTON
      PRESIDIO CAPITAL IV, L.P.

              200
      Clarendon Street, 50th
      Floor

              Boston,
      MA 02116

              Facsimile
      Number: (617) 988-2515

                       by
      WESTON PRESIDIO CAPITAL

                      MANAGEMENT
      IV, L.L.C.

                             its
      General Partner

            	 
	 	 
	 	 
	
              By:

            	
              /s/
      Therese Mrozek

            	 
	 
    	
              Name:

            	
              Therese
      Mrozek

            	 
	 
    	
              Title:

            	
              Member

            	 

    

    

     

    

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

    
      	
              WESTON
      PRESIDIO CAPITAL III, L.P.

              200
      Clarendon Street, 50th
      Floor

              Boston,
      MA 02116

              Facsimile
      Number: (617) 988-2515

                       by
      WESTON PRESIDIO CAPITAL

                      MANAGEMENT
      IV, L.L.C.

                             its
      General Partner

            	 
	 	 
	 	 
	
              By:

            	
              /s/
      Therese Mrozek

            	 
	 
    	
              Name:

            	
              Therese
      Mrozek

            	 
	 
    	
              Title:

            	
              Member

            	 

    

    

    
 

    

    

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

    
      	
              WPC
      ENTREPRENEUR FUND, L.P.

              200
      Clarendon Street, 50th
      Floor

              Boston,
      MA 02116

              Facsimile
      Number: (617) 988-2515

                       by
      WESTON PRESIDIO CAPITAL

                      MANAGEMENT
      IV, L.L.C.

                             its
      General Partner

            	 
	 	 
	 	 
	
              By:

            	
              /s/
      Therese Mrozek

            	 
	 
    	
              Name:

            	
              Therese
      Mrozek

            	 
	 
    	
              Title:

            	
              Member

            	 

    

     

     

     

     

     

    
 

     

    SIGNATURE
PAGE TO TERMINATION AGREEMENT

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

    
      	
              WPC
      ENTREPRENEUR FUND II, L.P.

              200
      Clarendon Street, 50th
      Floor

              Boston,
      MA 02116

              Facsimile
      Number: (617) 988-2515

                       by
      WESTON PRESIDIO CAPITAL

                      MANAGEMENT
      IV, L.L.C.

                             its
      General Partner

            
	 
	 
	
              /s/
      Therese Mrozek

            	 
    
	
              Name:

            	
              Therese
      Mrozek

            	 
    
	
              Title:

            	
              Member

            	 
    

    

    

    

     

    

    

    SIGNATURE
PAGE TO TERMINATION AGREEMENTEX-10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS AGREEMENT (the “Agreement”), dated as of March 3, 2008 (the “Effective Date”), is made by
and between Javelin Pharmaceuticals, Inc., a Delaware corporation with principal executive offices
at 125 CambridgePark Drive, Cambridge, MA 02140, and Martin J. Driscoll, residing at 6 Goose Point
Drive, Colts Neck, NJ 07722, (the “Executive”).

WITNESSETH:

     WHEREAS, the Executive is currently a Director of the Company;

     WHEREAS, in addition to his position as a Director, the Company seeks to employ the Executive
as its Chief Executive Officer; and

     WHEREAS, the Executive desires to serve the Company in those capacities, upon the terms and
subject to the conditions contained in this Agreement;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the
parties hereto hereby agree as follows:

     1. Employment

          (a) Services. The Executive will be employed by the Company as its Chief Executive
Officer and will continue to serve as a Director. The Executive will report to the Board of
Directors of the Company (the “Board”) and shall perform such duties as are consistent with his
position as Chief Executive Officer (as applicable, the “Services”). The Executive agrees to
perform such duties faithfully, to devote substantially all of his working time, attention
and energies to the business of the Company, and while he remains employed by the Company
except as provided in Section 3(a) below, not to engage in any other business activity that is
in conflict with his duties and obligations to the Company.

          (b) Acceptance. Executive hereby accepts such employment and agrees to render the
Services.

     2. Term

          The Executive’s employment under this Agreement (the “Term”) shall commence as of the
Effective Date and shall continue for a term of three (3) years unless sooner terminated pursuant
to Section 9 of this Agreement. Thereafter, this Agreement shall automatically renew for successive
one (1) year periods until such time as either party elects to not renew. A party electing to not
renew this Agreement must give the other party at least
six (6) months notice of such election; provided however that in the event Company elects not
to renew this Agreement upon expiration of this Agreement, Executive shall be entitled to receive
the benefits set forth in

 

 

Section 10(d) hereof. Notwithstanding anything to the contrary
contained herein, the provisions of this Agreement governing protection of Confidential Information
shall continue in effect as specified in Section 6 hereof and survive the expiration or termination
hereof.

     3. Best Efforts; Place of Performance

         (a) The Executive shall devote substantially all of his business time, attention and energies
to the business and affairs of the Company and shall use his best efforts to advance the best
interests of the Company and shall not during the Term be actively engaged in any other business
activity, whether or not such business activity is pursued for gain, profit or other pecuniary
advantage, that will interfere with the performance by the Executive of his duties hereunder or the
Executive’s availability to perform such duties or that will adversely affect, or negatively
reflect upon, the Company; provided however, that nothing herein shall prevent the Executive
from (a) making and managing personal investments consistent with Section 7(a) of this Agreement or
engaging in community and/or charitable activities, or such other activities as are approved in
advance and in writing by the Board or such person designated by the Board, so long as such
activities either singly or in the aggregate, do not interfere with the proper performance of the
Executive’s duties and responsibilities to the Company.

         (b) The duties to be performed by the Executive hereunder shall be performed primarily at the
office of the Company in Cambridge, Massachusetts, subject to reasonable travel
requirements on behalf of the Company, or such other place as the Board may reasonably designate.

     4. Directorship.

         The Executive is currently a member of the Board of Directors of the Company. The Company
shall use its best efforts to cause the Executive to be re-elected as a Director throughout the
Term, and shall include him in the management slate for election as a director at every
stockholders meeting during the Term at which his term as a director would otherwise expire. The
Executive agrees to accept election, and to serve during the Term, as director of the Company,
without any compensation therefore other than as specified in this Agreement.

     5. Compensation.

         As full compensation for the performance by the Executive of his duties under this Agreement,
the Company shall pay the Executive as follows:

         (a) Base Salary. The Company shall pay Executive a salary (the “Base Salary”) equal to
Four Hundred Fifty Thousand Dollars ($450,000.00) per year. Payment shall be made in accordance
with the Company’s normal payroll practices. The Base Salary shall be reviewed for adjustment
annually by the Board of Directors. In no event shall the amount of the Base Salary of the
Executive be reduced below $450,000.00 during the Term.

         (b) Annual Performance Cash Bonus. The Executive shall be entitled to receive
additional bonus income (the “Performance Cash Bonus”) in an amount up to

-2-

 

$450,000.00, based on the
attainment by the Executive of certain financial, clinical development and business milestones (the
“Performance Objectives”) as established annually by mutual agreement of the Board of Directors and
the Executive. The Executive will have a target cash bonus equal to 50% of Base Salary,
with the potential to be awarded up to 100% of Base Salary. The Performance Cash Bonus
actually awarded for each annual period during the Term shall be pro-rated based on the percentage
of Performance Objectives achieved for that annual period; however, the Board of Directors may, in
its sole judgment, make discretionary adjustments to the Performance Cash Bonus. In no event
shall Executive’s target cash bonus be reduced below 50% of Base Salary. The Board of
Directors and the Executive shall, by mutual agreement, establish the Performance Objectives for
each upcoming year in connection with the establishment of annual Corporate Goals. Executive’s
Performance Cash Bonus shall be paid at the time all other cash bonuses are paid to other
executives of the Company but in no event later than March 31 of the following year.

          (c) Withholding. The Company shall withhold all applicable federal, state and local
taxes and social security and such other amounts as may be required by law from all amounts payable
to the Executive
under this §5.

          (d) Initial Option Grant. As additional compensation for the Services to be rendered
by the Executive pursuant to this Agreement, the Company shall grant the Executive stock options
(“Stock Options”) to purchase 850,000 shares of the Common Stock of the Company at a price per
share equal to $2.86 (the share closing price on March 3, 2008). The Stock Options shall be
governed by the Company’s 2005 Omnibus Stock Incentive Plan (as amended and restated) and shall
vest, if at all, in three equal parts upon each anniversary of this Agreement. In connection with
such grant, the Executive shall enter into the Company’s standard stock option agreement which will
incorporate the foregoing vesting schedule and the Stock Option related provisions contained in
Section 10 below.

          (e) Annual Stock Option Bonus. The Executive shall be entitled to receive an
annual option to purchase shares of the Company’s common stock (the “Stock Option Bonus”), based on
the attainment by the Executive of the Performance Objectives as established annually by mutual
agreement of the Board of Directors and the Executive, and as described in §5(b) above. The actual
number of options awarded shall be determined using the then-current option award guidelines
approved by the Board of Directors; however, the Board may, in its sole judgment, make
discretionary adjustments to the Stock Option Bonus. Any options granted under the Stock Option
Bonus will be issued at the closing price of the Company’s Common Stock on the date of any such
grant and shall vest, if at all, in three equal parts upon each anniversary of the grant. All such
options shall be subject to the provisions of the Company’s then-current Omnibus Stock Incentive
Plan.

          (f) Expenses. The Company shall reimburse the Executive for all normal, usual and
necessary expenses incurred by the Executive in furtherance of the business and affairs of the
Company, including reasonable travel and entertainment, upon timely receipt by the Company of
appropriate vouchers or other proof of the Executive’s expenditures and otherwise in accordance
with any expense reimbursement policy as may from time to time be adopted by the Company.

-3-

 

          (g) Other Benefits. The Executive shall be entitled to all rights and benefits for
which he shall be eligible under any benefit or other plans (including, without limitation, dental,
medical, medical reimbursement and hospital plans, disability insurance, pension plans, employee
stock purchase plans, profit sharing plans, bonus plans and other so-called “fringe” benefits) as
the Company shall make available to its senior executives from time to time. In addition, the
Company shall reimburse Executive for the reasonable cost of a dedicated phone line for his home
office.

          (h) Vacation. The Executive shall, during the Term, be entitled to accrue vacation at
a rate of five (5) weeks per annum, in addition to holidays observed and personal and sick days
allowed by the Company. The Executive shall not be entitled to carry any vacation forward to the
next year of employment, and shall not receive any compensation for such unused vacation days.

          (i) Relocation. Upon presentation of vouchers and similar receipts, the
Executive shall be entitled to receive reimbursement for up to $35,000 of his actual and properly
documented expenses incurred in connection with his relocation to the greater Boston area.

          (j) Excess Parachute Payments. In the event that any payment, demand for
payment or other benefit pursuant to this Agreement together with any other payment, demand payment
or other benefit of Executive may receive under any other plan, program, policy, arrangement or
agreement (collectively ‘Payment”) would constitute an “excess parachute payment” under section
280G of the InternaL Revenue Code (the “Code”) (an “Excess Parachute Payment”) and but for this
section 5(j) would result in the imposition on the Executive of an excise tax under section 4999 of
the Code or similar provision of state or local law, then the Payment delivered to executive shall
either be (i) delivered in full or (ii) delivered in such amount thereby resulting in no portion of
such Payment being subject to the Excise tax, whichever of the foregoing amounts, taking into
account the applicable federal, state and local income taxes and Excise Tax that results in the
receipt by the Executive on an after tax basis the greatest amount of Payment, notwithstanding that
all or some of the Payment may be taxable under section 4999 of the Code.

     6. Confidential Information and Inventions.

          (a) The Executive recognizes and acknowledges that in the course of his duties he is likely to
receive confidential or proprietary information owned by the Company, its affiliates or third
parties with whom the Company or any such affiliates has an obligation of confidentiality.
Accordingly, during and after the Term, the Executive agrees to keep confidential and not disclose
or make accessible to any other person or use for any other purpose other than in connection with
the fulfillment of his duties under this Agreement, any Confidential and Proprietary Information
(as defined below) owned by, or received by or on behalf of, the Company or any of its affiliates.
“Confidential and Proprietary Information” shall include, but shall not be limited to, confidential
or proprietary scientific or technical information, data, formulas and related concepts, business
plans (both current and under development), client lists, promotion and marketing programs, trade
secrets, or any other confidential or proprietary

-4-

 

business information relating to development
programs, costs, revenues, marketing, investments, sales activities, promotions, credit and
financial data, manufacturing processes, financing methods, plans or the business and affairs of
the Company or of any affiliate or client of the Company. The Executive expressly acknowledges the
trade secret status of the Confidential and Proprietary Information and that the Confidential and
Proprietary Information constitutes a protectable business interest of the Company. The Executive
agrees: (i) not to use any such Confidential and Proprietary Information for himself or others; and
(ii) not to take any Company material or reproductions (including but not limited to writings,
correspondence, notes, drafts, records, invoices, technical and business policies, computer
programs or disks) from the Company’s offices at any time during his employment by the Company,
except as required in the execution of the Executive’s duties to the Company. The Executive agrees
to return immediately all Company material and reproductions (including but not limited, to
writings, correspondence, notes, drafts, records, invoices, technical and business policies,
computer programs or disks) thereof in his possession to the Company upon request and in any event
immediately upon termination of employment.

          (b) Except with prior written authorization by the Company, the Executive agrees not to
disclose or publish any of the Confidential and Proprietary Information, or any confidential,
scientific, technical or business information of any other party to whom the Company or any of its
affiliates owes an obligation of confidence, at any time during or after his employment with the
Company.

          (c) The Executive agrees that all inventions, discoveries, improvements and patentable or
copyrightable works initiated, conceived or made by him, either alone or in conjunction with
others, through the use of the resources of the Company or directly related to the business of the
Company (the “Inventions”) during the Term shall be the sole property of the Company to the maximum
extent permitted by applicable law and, to the extent permitted by law, shall be “works made for
hire’’ as that term is defined in the United States Copyright Act (17 U.S.C.A., §101). The Company
shall be the sole owner of all patents, copyrights, trade secret rights, and other intellectual
property or other rights in the Inventions. The Executive hereby assigns to the Company all right,
title and interest he may have or acquire in all such Inventions; provided, however, that the Board
of Directors of the Company may in its sole discretion agree to waive the Company’s rights pursuant
to this §6(c). The Executive further agrees to assist the Company in every proper way (at the
Company’s expense) to obtain and from time to time enforce patents, copyrights or other rights on
such Inventions in any and all countries, and to that end the Executive will execute all documents
necessary:

               (i) to apply for, obtain and vest in the name of the Company alone (unless the Company
otherwise directs) Letters Patent, copyrights or other analogous protection in any country
throughout the world and when so obtained or vested to maintain, renew and restore the same; and,

               (ii) to defend any opposition proceedings in respect of such applications and any opposition
proceedings or petitions or applications for revocation of such Letters Patent, copyright or other
analogous protection.

-5-

 

          (d) The Executive acknowledges that while performing the Services under this Agreement the
Executive may locate, identify and/or evaluate patented or patentable inventions or other business
opportunities (the “Third Party Inventions”) having commercial potential in the fields of pharmacy,
pharmaceuticals, biotechnology, healthcare, technology and other fields which may be of potential
interest to the Company or its affiliates. The Executive understands, acknowledges and agrees that
all rights to, interests in or opportunities regarding, all Third-Party Inventions identified by
the Company, its affiliates or any of the foregoing persons’ officers, directors, employees
(including the Executive), agents or consultants during the Employment Term shall be
and remain the sole and exclusive property of the Company (or such affiliate). The Executive shall
have no rights whatsoever to such Third-Party Inventions and will not pursue for himself or for
others any transaction relating to the Third-Party Inventions which is not on behalf of the
Company. Notwithstanding the foregoing, if the Company, having been presented with the opportunity
by the Executive to pursue such Third Party Inventions chooses not to do so, then Executive may
pursue such Third Party Inventions himself without accounting to the Company therefore, subject to
§l(a) hereof.

          (e) Executive agrees that he will promptly disclose to the Company, or any persons designated
by the Company, all improvements and/or Inventions made, conceived, reduced to practice, or learned
by him, either alone or jointly with others, during the Term.

          (f) The provisions of this §6 shall survive any termination of this Agreement.

     7. Non-Competition, Non-Solicitation and Non-Disparagement.

          (a) The Executive understands and recognizes that his services to the Company are special and
unique and that in the course of performing such services the Executive will have access to and
knowledge of Confidential and Proprietary Information (as defined in §6) and the Executive agrees
that, during the Term and for a period of nine (9) months thereafter, he shall not in any manner,
directly or indirectly, on behalf of himself or any person, firm, partnership, joint venture,
corporation or other business entity (“Person”), enter into or engage in any business which is
engaged in any business directly competitive with the business of the Company, either as an
individual for his own account, or as a partner, joint venturer, owner, executive, employee,
independent contractor, principal, agent, consultant, salesperson, officer, director or shareholder
of a Person in a business competitive with the Company within the geographic area of the Company’s
business, which is deemed by the parties hereto to be worldwide. The Executive acknowledges that,
due to the unique nature of the Company’s business, the loss of any of its clients or business flow
or the improper use of its Confidential and Proprietary Information could create significant
instability and cause substantial damage to the Company and its affiliates and therefore the
Company has a strong legitimate business interest in protecting the continuity of its business
interests and the restriction herein agreed to by the Executive narrowly and fairly serves such an
important and critical business interest of the Company. For purposes of this Agreement, the
Company shall be deemed to be actively engaged on the date hereof in the development and
commercialization of (a) drugs, including therapeutics for the treatment of pain, (b) novel
application drug delivery systems for the treatment of pain, and (c) in the future in any other
business in which it actually devotes substantive resources to study, develop or pursue.
Notwithstanding the foregoing, nothing contained in this Section 7(a)

-6-

 

shall be deemed to prohibit
the Executive from (i) acquiring or holding, solely for investment, publicly traded securities of
any corporation, some or all of the activities of which are competitive with the business of the
Company if such holdings do not, in the aggregate, constitute more than five percent
(5%) of any class or series of outstanding securities of such corporation. This §7(a)
shall not be enforceable by the Company against the Executive if the Executive (i) is terminated by
the Company without Cause; (ii) terminates this Agreement for Good Reason; or (iii) is terminated
at the time or within six (6) months of a Change of Control (as hereinafter defined).

          (b) During the Term and for a period of 12 months thereafter, the Executive shall not,
directly or indirectly, without the prior written consent of the Company:

               (i) solicit or induce any employee of the Company or any of its affiliates to leave the employ
of the Company or any such affiliate; or hire for any purpose any employee of the Company or any
affiliate or any employee who has voluntarily left the employment of the Company or any
affiliate within one year of the termination of such employee’s employment with the Company or any
such affiliate or at any time in violation of such employee’s non-competition agreement with the
Company or any such affiliate. The restriction in this Section 7(b)(i) shall not apply to any
solicitation directed at the general public in publications available to the general public.

               (ii) solicit or accept employment or be retained by any Person who, at any time during the
term of this Agreement, was an agent, client or customer of the Company or any of its affiliates
where his position will be directly related to the business of the Company or any such
affiliate; or

               (iii) solicit or accept the business of any agent, client or customer of the Company or any of
its affiliates with respect to products or services which compete directly with the products or
services provided or supplied by the Company or any of its affiliates.

               (iv) Notwithstanding the foregoing, §§7(b)(ii)-7(b)(iii) shall not be enforceable by the
Company against Executive if the Executive (i) is terminated by the Company without Cause; (ii)
terminates this Agreement for Good Reason; or (iii) is terminated at the time or within six (6)
months of a Change of Control (as hereinafter defined).

          (c) The Company and the Executive each agree that both during the Term and at all times
thereafter, neither party shall directly or indirectly disparage, whether or not true, the name or
reputation of the other party or any of its affiliates, including but not limited to, any officer,
director, employee or shareholder of the Company or any of its affiliates.

          (d) In the event that the Executive breaches any provisions of §6 or this §7 or there is a
threatened breach, then, in addition to any other rights which the Company may have, the Company
shall be entitled, without the posting of a bond or other security, to seek injunctive
relief to enforce the restrictions contained in such Sections, in addition to any other remedies at
law or in equity to which the Company may be entitled.

-7-

 

          (e) Each of the rights and remedies enumerated in §7(d) shall be independent of the others and
shall be in addition to and not in lieu of any other rights and remedies available to the Company
at law or in equity. If any of the covenants contained in this §7, or any part of any of them, is
hereafter construed or adjudicated to be invalid or unenforceable, the same shall not affect the
remainder of the covenant or covenants or rights or remedies which shall be given full effect
without regard to the invalid portions. If any of the covenants contained in this §7 is held to be
invalid or unenforceable because of the duration of such provision or the area covered thereby, the
parties agree that the court making such determination shall have the power to reduce the duration
and/or area of such provision and in its reduced form such provision shall then be enforceable.

          (f) In the event that an actual proceeding is brought in equity to enforce the provisions of
§6 or this §7, the Executive shall not urge as a defense that there is an adequate remedy at law
nor shall the Company be prevented from seeking any other remedies which may be available.

          (g) The provisions of this §7 shall survive any termination of this Agreement.

     8. Representations and Warranties by the Executive.

     The Executive hereby represents and warrants to the Company as follows:

          (a) Neither the execution or delivery of this Agreement nor the performance by the Executive
of his duties and other obligations hereunder violate or will violate any statute, law,
determination or award, or conflict with or constitute a default or breach of any covenant or
obligation under (whether immediately, upon the giving of notice or lapse of time or both) any
prior employment agreement, contract, or other instrument to which the Executive is a party or by
which he is bound.

          (b) The Executive has the full right, power and legal capacity to enter and deliver this
Agreement and to perform his duties and other obligations hereunder. This Agreement constitutes the
legal, valid and binding obligation of the Executive enforceable against him in accordance with its
terms. No approvals or consents of any persons or entities are required for the Executive to
execute and deliver this Agreement or perform his duties and other obligations hereunder.

     9. Termination.

     The Executive’s employment hereunder shall be terminated upon the Executive’s death and may be
terminated as follows:

          (a) The Executive’s employment hereunder may be terminated by the Board of Directors of the
Company for Cause. Any of the following actions by the Executive shall constitute “Cause”:

-8-

 

               (i) The willful failure, disregard or refusal by the Executive to perform his duties
hereunder, which is not cured, if curable, by Executive within thirty (30) days after written
notice thereof is given to the Executive by the Company, which notice shall specify in
reasonable detail the act(s) or omission(s) on which the Company relies to establish Cause;

               (ii) Any willful, intentional grossly negligent act by the Executive having the effect of
injuring, in a material way (whether financial or otherwise and as determined in good-faith by a
majority of the Board of Directors of the Company), the business or reputation of the Company or
any of its affiliates, including but not limited to, any officer, director, executive or
shareholder of the Company or any of its affiliates;

               (iii) Willful misconduct by the Executive in respect of the duties or obligations of the
Executive under this Agreement, including insubordination with respect to the lawful directions
received by the Executive from the Board of Directors of the Company, which is not cured, if
curable, by Executive within thirty (30) days after written notice thereof is given to the
Executive by the Company, which notice shall specify in reasonable detail the act(s) or
omission(s) on which the Company relies to establish Cause;

               (iv) The Executive’s conviction of any felony or a misdemeanor involving moral
turpitude (including entry of a nolo contendere plea);

               (v) The determination by the Company, after a reasonable and good-faith investigation by
an independent third party retained by the Company following a written allegation by
another employee of the Company, that the Executive engaged in some form of harassment prohibited
by law (including, without limitation, age, sex or race discrimination), unless the Executive’s
actions were specifically directed by the Board of Directors of the Company;

               (vi) Any misappropriation or embezzlement of the property of the Company or its affiliates
(whether or not a misdemeanor or felony);

               (vii) Breach by the Executive of any of the provisions of Sections 6, 7 or 8 of this
Agreement; and

               (viii) A material breach by the Executive of any provision of this Agreement other than those
contained in Sections 6, 7 or 8 which is not cured by the Executive within thirty (30) days after
written notice thereof is given to the Executive by the Company, which notice shall specify the
act(s) or omission(s) on which the Company relies to establish Cause.

          (b) The Executive’s employment hereunder may be terminated by the Board of Directors of the
Company due to the Executive’s Disability. For purposes of this Agreement, a termination for
“Disability” shall occur (i) when the Board of Directors of the Company has provided a written
termination notice to the Executive supported by a written statement from a reputable independent
physician to the effect that the Executive shall have become so physically or mentally
incapacitated as to be unable to resume, within the ensuing twelve (12) months, his

-9-

 

employment
hereunder by reason of physical or mental illness or injury, or (ii) upon rendering of a written
termination notice by the Board of Directors of the Company after the Executive has been unable to
substantially perform his duties hereunder for one hundred twenty (120) or more consecutive
days, or more than one hundred eighty (180) days in any consecutive twelve (12)
month period, by reason of any physical or mental illness or injury. For purposes of this Section
9(b), the Executive agrees to make himself available and to cooperate in any reasonable examination
by a reputable independent physician retained by the Company.

          (c) The Executive’s employment hereunder may be terminated by the Board of Directors of the
Company (or its successor) upon the occurrence of a Change of Control. For purposes of this
Agreement, “Change of Control” means (i) the acquisition, directly or indirectly, following the
date hereof by any person (as such term is defined in Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934, as amended), in one transaction or a series of related transactions, of
securities of the Company representing in excess of fifty percent (50%) or more of the combined
voting power of the Company’s then outstanding securities if such person or his or its affiliates
do not
own in excess of 50% of such voting power on the date of this Agreement, or (ii) the future
disposition by the Company (whether direct or indirect, by sale of assets or stock, merger,
consolidation or otherwise) of all or substantially all of its business and/or assets in one
transaction or series of related transactions (other than a merger effected exclusively for the
purpose of changing the domicile of the Company).

          (d) The Executive’s employment hereunder may be terminated by the Executive for Good Reason.
For purposes of this Agreement, “Good Reason” shall mean:

               (i) any material breach of this Agreement that is not cured by the Company within thirty (30)
days after receipt of written notice by Executive to the Company of such material breach;

               (ii) any diminution or adverse (to the Executive) change in the duties, responsibilities,
rights, privileges or the reporting relationships, which were applicable to and enjoyed by the
Executive at the commencement of the Term, without the consent of the Executive, except as a result
of the termination of the Executive’s employment by the Company;

               (iii) any reduction in Executive’s Base Salary and benefits from the levels provided
herein;

               (iv) any requirement from the Board of Directors of the Company that Executive must
relocate his office from the Metropolitan Boston area; or

               (iv) the failure to nominate Executive to, or his removal from, the Board of Directors of the
Company. For purposes of clarification, this §9(d)(iv) shall not apply if the Executive is removed
from the Board of Directors as a result of a failure to be re-elected by a vote of the
shareholders.

-10-

 

          (e) The Executive’s employment may be terminated by the Company or by the Executive without
Cause at any time.

     10. Compensation Upon Termination.

          (a) If the Executive’s employment is terminated as a result of his death or Disability, the
Company shall pay to the Executive or to the Executive’s estate, as applicable, his Base Salary and
any accrued but unpaid Performance Cash Bonus or other Bonus (calculated at the target
rate) and expense reimbursement amounts through the date upon which his Death or Disability
occurs. All Stock Options that are scheduled to vest by the end of the calendar year in which such
termination occurs shall be accelerated and shall be vested as of the date of his Disability or
Death. All Stock Options that have not vested (or been deemed pursuant to the immediately preceding
sentence to have vested) as of the date of his Disability or Death shall be deemed to have expired
as of such date. Any Stock Options that have vested as of the date of the Executive’s
termination shall remain exercisable for a period as stated in the Stock Option Plan.

          (b) If the Executive’s employment is terminated by the Board of Directors of the Company for
Cause, then the Company shall pay to the Executive his Base Salary and expense reimbursement
through the date of his termination and the Executive shall have no further entitlement to any
other compensation or benefits from the Company. All Stock Options that have not vested as of the
date of termination for Cause shall be deemed to have expired as of such date. Any Stock Options
that have vested as of the date of the Executive’s termination for Cause shall remain exercisable
for a period of 90 days following the date of such termination.

          (c) If the Executive’s employment is terminated by the Company (or its successor) upon the
occurrence of a Change of Control or within six (6) months thereafter, the Company (or its
successor, as applicable) shall (i) continue to pay to the Executive his Base Salary for a period
of the greater of twelve (12) months or the remainder of the Term (ii) pay the
Executive 100% of Executive’s annual Performance Cash Bonus, (iii) pay expense
reimbursement amounts through the date of termination and (iv) continue to provide or make
available to Executive benefits contemplated under Section 5(g), provided that the terms thereof
permit continued participation by Executive for a period of twelve (12) months from the date of
termination.. All Stock Options that have not
vested as of the date of such termination shall be accelerated and deemed to have vested as of such
termination date.

          (d) If the Executive’s employment is terminated by the Company without Cause, or by the
Executive for Good Reason, then the Company shall (i) continue to pay to the Executive his Base
Salary for the greater of twelve (12) months from the date of such termination or the
period from the date of termination until 2 March, 2010, and (ii) pay the Executive 100% of
the Target Performance Cash Bonus or other Bonus he would have earned had he been employed for
twelve(12) months from the date upon which such termination occurs, (iii) pay the Executive
any expense reimbursement amounts owed through the date of termination and (iv) shall continue
to provide or make available to Executive benefits contemplated under Section 5(g), provided that
the terms thereof permit continued participation by Executive for a period of twelve (12) months
from the date of termination.. All Stock Options

-11-

 

shall be accelerated and deemed to
have vested as of the termination date. Any Stock Options that have vested as of the date of the
Executive’s termination shall remain exercisable for aa period as outlined in the company’s Omnibus
Stock Incentive Plan.

          (e) This Agreement sets forth the only obligations of the Company with respect to the
termination of the Executive’s employment with the Company, and the Executive acknowledges that,
upon the termination of his employment, he shall not be entitled to any payments or benefits which
are not explicitly provided for herein. Furthermore, any payments made to the Executive under
§§10(c) or 10(d) herein, shall be conditioned upon the Executive executing a mutually acceptable
release of any and all claims that the Executive may have had, has or may have against the Company
and/or its employees, executives and/or directors, arising out of the Executive’s employment with
the Company.

          (f) Upon termination of the Executive’s employment hereunder for any reason, the Executive
shall be deemed to have resigned as director of the Company, effective as of the date of such
termination.

          (g) The provisions of this Section 10 shall survive any termination of this
Agreement.

     11. Miscellaneous.

          (a) This Agreement shall be governed by, and construed and interpreted in accordance with,
the laws of the Commonwealth of Massachusetts, without giving effect to its principles of conflicts
of laws.

          (b) Any dispute arising out of, or relating to, this Agreement or the breach thereof (other
than Sections 6 or 7 hereof), or regarding the interpretation thereof, shall be finally settled by
arbitration conducted in Boston, Massachusetts in accordance with the rules of the American
Arbitration Association then in effect before a single arbitrator appointed in accordance with such
rules. Judgment upon any award rendered therein may be entered and enforcement obtained thereon in
any court having jurisdiction. The arbitrator shall have authority to grant any form of appropriate
relief, whether legal or equitable in nature, including specific performance. For the purpose of
any judicial proceeding to enforce such award or incidental to such arbitration or to compel
arbitration and for purposes of Sections 6 and 7 hereof, the parties hereby submit to the
non-exclusive jurisdiction of the state courts of the Commonwealth of Massachusetts, or the United
States District Court for the District of Massachusetts, and agree that service of process in such
arbitration or court proceedings shall be satisfactorily made upon it if sent by registered mail
addressed to it at the address referred to in paragraph (g) below. Each party shall be responsible
for its own attorney’s fees in such arbitration, and all of the costs and expenses incurred with
respect to the arbitration proceeding (except for the filing fee, which shall be borne solely by
the party commencing the arbitration) shall be divided equally between the parties. Judgment on the
arbitration award may be entered by any court of competent jurisdiction.

          (c) This Agreement shall be binding upon and inure to the benefit of the parties hereto, and
their respective heirs, legal representatives; successors and assigns.

-12-

 

          (d) This Agreement, and the Executive’s rights and obligations hereunder, may not be assigned
by the Executive. The Company may assign its rights, together with its obligations, hereunder in
connection with any sale, transfer or other disposition of all or substantially all of its business
or assets or other Change of Control,
provided such assignee agrees in writing to be bound by this Agreement.

          (e) This Agreement cannot be amended orally, or by any course of conduct or dealing, but only
by a written agreement signed by the parties hereto.

          (f) The failure of either party to insist upon the strict performance of any of the terms,
conditions and provisions of this Agreement shall not be construed as a waiver or relinquishment of
future compliance therewith, and such terms, conditions and provisions shall remain in full force
and effect. No waiver of any term or condition of this Agreement on the part of either party shall
be effective for any purpose whatsoever unless such waiver is in writing and signed by such party.

          (g) All notices, requests, consents and other communications, required or permitted to be
given hereunder, shall be in writing and shall be delivered personally or by an overnight courier
service or sent by registered or certified mail, postage prepaid, return receipt requested, to the
parties at the addresses set forth on the first page of this Agreement, and shall be deemed given
when so delivered personally or by overnight courier, or, if mailed, five (5) days after the date
of deposit in the United States mails. Either party may designate another address, for receipt of
notices hereunder by giving notice to the other party in accordance with this paragraph (g).

          (h) This Agreement sets forth the entire agreement and understanding of the parties relating
to the subject matter hereof, and supersedes all prior agreements, arrangements and understandings,
written or oral, relating to the subject matter hereof, but
excluding agreements and plans with respect to stock and stock options. No representation, promise
or inducement has been made by either party that is not embodied in this Agreement, and neither
party shall be bound by or liable for any alleged representation, promise or inducement not so set
forth.

          (i) As used in this Agreement, “affiliate” of a specified Person shall mean and include any
Person controlling, controlled by or under common control with the specified Person.

          (j) The section headings contained herein are for reference purposes only and shall not in any
way affect the meaning or interpretation of this Agreement.

          (k) This Agreement may be executed in any number of counterparts, each of which shall
constitute an original, but all of which together shall constitute one and the same instrument.

-13-

 

          (l) The Company shall reimburse Executive for the attorney’s fees incurred by him for the
review, revision, negotiation and finalization of this Agreement, to a maximum of $5,000.

          (m) Notwithstanding any provision in the Agreement to the contrary if payment or
provision of any amount or other benefit that is a “deferral of compensation” subject to section
409A of the Code at the time otherwise specified in this Agreement or elsewhere would subject such
amount of benefit to additional tax pursuant to section 409A(a)(1)(B) of the Code, and if payment
or provision thereof at a later date would avoid any such additional tax, then the payment or
provision thereof shall be postponed to the earliest date on which such amount or benefit can be
paid or provided without incurring such additional tax. In the event this Section 11(m) requires
a deferral of any payment, such payment shall be accumulated and paid in a single lump sum on such
earliest date together with interest for the period of delay, compounded annually, equal to the
prime rate (as published in The Wall Street Journal), and in effect as of the date of the payment
should otherwise have been provided. If any payment or benefit permitted or required under this
Agreement is reasonably determined by either party to be subject for any reason to a material risk
of additional tax pursuant to section 409A(a)(1)(B) of the Code, then the parties shall promptly
agree in good faith on appropriate provisions to avoid such risk without materially changing the
economic value of this Agreement to either party.

          (n) The Company shall to the fullest extent permitted by law, indemnify, defend and hold
harmless the Executive from any liability, ((loss or damages)) incurred by Executive by reason of
any act performed by the Executive in connection with the business of the Company and from
liabilities or obligations of the Company imposed on the Executive by virtue of his position with
the Company, including reasonable attorney fees and costs and any amounts expended by the
settlement of any such claims of liability, ((loss or damages)) except that no
indemnification shall be provided regarding any matter as to which it is finally determined
that Executive did not act in good faith and in the reasonable belief that his action was in the
best interests of the Company or with respect to a criminal matter, that he had reasonable cause to
believe that his conduct was unlawful.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 
	JAVELIN PHARMACEUTICALS, INC.

	 	 	 	EXECUTIVE
	 
	 
	 	 	 	 
	/s/
Douglas G. Watson 

	 	 	 	/s/
Martin J. Driscoll 
	Douglas G. Watson

	 	 	 	Martin J. Driscoll
	Chairman

	 	 	 	Chief Executive Officer

-14-

 

EXHIBIT A

SECTION 3 PERMITTED ACTIVITIES

Genta Inc.-Director

PearTree Pharmaceuticals, Inc.-Director

-15-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}]]