Document:

EXHIBIT 10.1

IOMED,
INC.

SENIOR
MANAGEMENT AND KEY EMPLOYEE

RETENTION
PROGRAM

1.                                       PURPOSE

The purpose of the Iomed,
Inc. Senior Management and Key Employee Retention Program (the “Program”) is to
provide an incentive bonus for designated senior management and other key
employees of Iomed, Inc. (the “Company”) in consideration of their continued
employment with the Company during the critical period leading up to and
immediately following a “Change of Control” (as defined herein) of the Company.

2.                                       PARTICIPANTS

The participants in the
Program shall be those employees of the Company which the Company in its sole
discretion has set forth on Exhibit A attached hereto, (each a “Participant”).  Each Participant has been specifically
designated by the Compensation Committee as an employee eligible to participate
in the Program.

3.                                       RETENTION
PAYMENT

Subject to the terms and
conditions in Section 5 below, should there be a Change of Control of the
Company, each Eligible Employee shall be eligible to receive a payment in the
amount opposite their name as set forth on Exhibit A (the “Retention Payment”).  In the event that an employee (other than Mr.
Lollini) loses their status as a Participant; the Retention Payment which would
have been payable to such employee shall be allocated to any remaining
Participants (other than Mr. Lollini) at the discretion of the Compensation
Committee of the Company’s Board of Directors.

The Retention Payment will
be paid in a lump sum in cash on the date, which is sixty (60) days after the occurrence
of a Change of Control (the “Retention Payment Date”) (or, where applicable,
such later date as is required by Section 409A(a)(2)(B)(i) of the Internal
Revenue Code of 1986, as amended (the “Code”)).

4.                                       TERMS
AND CONDITIONS FOR PAYMENT

4.1                                 RETENTION
PAYMENTS.  In order to receive the
Retention Payment, the Participant must continue his/her employment status with
the Company until the 60th day following the occurrence of the Change of
Control.  In the event of the termination
of the Participant’s employment by the Company without Cause or by the
Participant for Good Reason at any time prior to the 60th day following the
occurrence of the Change of Control, the Participant shall be entitled to
receive the Retention Payment as if the Participant’s employment had continued
until such date.  Provided however, if a
Participant retires or elects to terminate his/her employment for any reason
other than Good Reason, or if the Company terminates his/her employment for
Cause prior to the 60th day following the occurrence of the Change of Control, the
Participant automatically forfeits his or her right to receive a Retention
Payment.

4.2                                 DEATH
OR DISABILITY.      Notwithstanding
any provision of this Program to the contrary, if a Participant dies or becomes
unable to perform the essential functions of the Participant’s position due to
disability or illness at any time prior to the 60th day following the
occurrence of the Change of Control, then the Participant shall be entitled to
a pro-rata share of the Retention Payment to be calculated as follows:  (i) the number of days between the Effective
Date and the date of death or onset of disability or illness divided by  (ii) the number of days between the Effective
Date and the 60th day following the occurrence of the Change of Control
multiplied by (iii) the amount of the Retention Payment for which the
Participant would have been entitled had they maintained employment status with
the Company through the 60th day following the occurrence of the Change of
Control

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4.3                                 ASSISTANCE;
CONFIDENTIALITY.  The Participant will
assist the Company in all of its efforts to complete a possible Change of
Control.  In performing these functions
the Participant will maintain confidentiality about a possible Change of
Control (except to the extent requested by the Company’s management to
communicate with a potential acquiror), and represent the Company’s interests
in completing a possible Change of Control. 
Except to the extent publicly disclosed by the Company or as required by
law or legal process, the Participant will keep confidential the existence and
terms of the Program and will not discuss it with anyone other than his/her
financial advisor, his/her attorney, members of his/her immediate family, and
the Chief Executive Officer of the Company.

4.4                                 WITHHOLDING.  All payments to a Participant under the
Program are subject to all applicable tax and other withholding requirements,
as determined by the Company or its successor.

4.5                                 EFFECT
ON OTHER BENEFITS.  This Program is in
addition to, and not in substitution for, any other agreements between a
Participant and the Company or any of its subsidiaries and any other pay or
benefits, which the Participant is eligible

4.6                                 NOT
A CONTRACT OF EMPLOYMENT.  This Program
does not constitute or create a contract of employment or create any specific
contractual right or obligation between the Company and its employees or any
Participant.  Nothing in this policy
affects or alters the at-will nature of a Participant’s employment with the
Company.

5.                                       DEFINITIONS

5.1                                 The
term “Cause” shall mean the occurrence of any of the following:

(a)                                  Acts
or omissions constituting gross negligence or willful misconduct relating to
the business of the Company;

(b)                                 Repeated
or continued failure to perform the duties and responsibilities of the
Participant’s position (other than as a result of a disability or illness)
after having a reasonable opportunity to cure such failure following notice;

(c)                                  Inability
to perform the essential functions of the Participant’s position, with or
without accommodation, due to disability or illness;

(d)                                 Breach
of the Participant’s Intellectual Property and Invention Agreement and
Agreement not-to-Compete (or similar agreement) with the Company;

(e)                                  Material
violation of the Company’s Code of Ethics, Policies or Procedures;

(f)                                    Conviction
or entry of a plea of nolo contendre for fraud, misappropriation or
embezzlement; or a crime of moral turpitude if such crime caused harm to the
business and affairs of the Company in the reasonable determination of the
Compensation Committee;

(g)                                 Any
material violation of any federal or state securities law or any SEC or stock
exchange rules or regulation with respect to the Company; or

(h)                                 Conviction
or entry of a plea of nolo contendre with respect to any felony if such felony
caused harm to the business and affairs of the Company in the reasonable
determination of the Compensation Committee.

5.2                                 The
term “Good Reason” shall mean the occurrence of any of the following:

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(a)                                  A
material reduction in the Participant’s compensation (other than stock based
compensation);

(b)                                 A
significant reduction of the Participant’s functions, duties or
responsibilities relative to his/her functions, duties or responsibilities in
effect immediately prior to such reduction, or

(c)                                  A
Participant’s relocation, as a condition of continued employment, by the
Company or a successor thereto to a location more than fifty (50) miles from
the Company’s current headquarters.

5.3                                 A
“Change of Control” shall mean the first to occur of any of the following:

(a)                                  Any
“person” (as such term is used in Sections 13 (d) and 14 (d) of the Securities
Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the
Exchange Act), directly or indirectly, of securities of the Company representing
fifty percent (50%) or more of the total voting power represented by the
Company’s then outstanding voting securities; or

(b)                                 The
consummation of a sale or disposition by the Company of all or substantially
all of the Company’s assets; or

(c)                                  The
consummation of a merger or consolidation of the Company, with any other
corporation, other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or its parent) at least fifty
percent (50%) of the total voting power represented by the voting securities of
the Company, or such surviving entity or its parent outstanding immediately
after such merger or consolidation; or

(d)                                 A
change in the composition of the Company’s Board of Directors, as a result of
which, fewer than a majority of the Company’s directors are Incumbent
Directors.  “Incumbent Directors” shall
mean directors of the Company who either (i) are directors as of the Effective
Date hereof, or (ii) are, appointed, or nominated for election, to the Board of
Directors of the Company with the affirmative votes of all of those directors
whose election or nomination was not in connection with any transaction
described in subsections (a), (b), or (c) above or in connection with an actual
or threatened proxy contest relating to the nomination or election of such
director.

5.4                                 “Effective
Date shall mean November 11, 2005.

6.                                       ADMINISTRATION:  The Compensation Committee of the Company’s
Board of Directors shall interpret, construe, apply and administer the Program
in its sole discretion.  In the event of
a Change of Control, the Compensation Committee may delegate responsibility for
the administration of the Program to another body at its discretion.  .

7.                                       ARBITRATION.  Any dispute or controversy arising under
related to or in connection with the Program shall be settled exclusively by
arbitration before a single arbitrator in Salt Lake City, Utah, in accordance
with the Commercial Arbitration Rules of the American Arbitration Association
under the abuse of discretion standard. 
The arbitrator’s award shall be final and binding on all parties.  Judgment may be entered on an arbitrator’s
award in any court having competent jurisdiction.

8.                                       ASSIGNMENT.  All rights under the Program are personal to
the Participant and may not be assigned by the Participant other than by will
or the laws of descent and distribution. 
The Program shall inure to the benefit of and be enforceable by the
Participant’s legal representatives.  The
Program shall inure to the benefit of and be binding upon the Company and its
successors.  The Company shall require
any successor to all or substantially all of the business and/or assets of the
Company, whether direct or indirect, by purchase, merger, consolidation,
acquisition of stock, or otherwise, to expressly assume and agree to perform
this Program in the

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same manner and to the same extent as the Company
would be required to perform it if no such succession had taken place.

9.                                       GOVERNING
LAW.  This Program shall be governed
by and construed in accordance with the law of the State of Utah without
reference to principles of conflict of laws.

10.                                 PARACHUTE
PAYMENT LIMITATION.  Anything in this
Program to the contrary notwithstanding, in the event that:

(a)                                  The
aggregate payments or benefits to be made or distributed by the Company or its
subsidiaries to or for the benefit of the Participant (whether paid or payable
or distributed or distributable pursuant to the terms of this Agreement or
otherwise) which are deemed to be parachute payments as defined in Code Section
280G or any successor thereto (the “CHANGE OF CONTROL BENEFITS”) would be
deemed to include an “excess parachute payment” under Code Section 280G; and

(b)                                 If
such Change of Control Benefits were reduced to an amount (the “NON-TRIGGERING
AMOUNT”), the value of which is one dollar ($1.00) less than an amount equal to
three (3) times the Participant’s “base amount,” as determined in accordance
with Code Section 280G and the Non-Triggering Amount less the product of the
marginal rate of any applicable state and federal income tax and the
Non-Triggering Amount would be greater than the aggregate value of the Change
of Control Benefits (without such reduction) minus (x) the amount of tax
required to be paid by the Participant thereon by Code Section 4999 and further
minus (y) the product of the Change of Control Benefits and the marginal rate
of any applicable state and federal income tax, then the Change of Control
Benefits shall be reduced to the Non-Triggering Amount.

(c)                                  
The Participant shall determine any allocation of the reduction among the
Change of Control Benefits as may be required hereby.

11.                                 TERMINATION
OF PROGRAM.  This Program may be
terminated by action of the Board of Directors on or after December 31, 2008.

 4EXHIBIT 10.2

IOMED, INC.

EMPLOYEE
SEVERANCE PROGRAM

12.                                 PURPOSE
AND SCOPE

The
purpose of this severance program (the “Severance Program”) is to (i) aid
IOMED, Inc. (the “Company”) in the recruitment and retention of employees, by
providing additional security during periods of uncertainty, in the event their
employment is terminated; (ii) formally document the Company’s past severance
practices relative to Company Policy 5-100 and (iii) protect the Company from
litigation and other claims resulting from the termination of employees.

13.                                 PARTICIPANTS

The
participants in the Severance Program shall be those employees of the Company
which the Company in its sole discretion has set forth on Exhibit B attached
hereto, (each a “Participant”).  Each
Participant has been specifically designated by the Compensation Committee as
an employee eligible to participate in the Severance Program. Exhibit B may be
updated from time to time to reflect new Company decisions, new employees,
voluntary terminations or changes in a Participant’s tenure, compensation or
benefits.  To the extent there is a
conflict between this Severance Program and a Company policy (not including a
separate, binding written agreement between the Company and a Participant) that
governs payments upon the termination of a Participant’s employment with the
Company, this Severance Program shall control.

14.                                 SEVERANCE
PAYMENTS

Subject
to the terms and conditions of this Severance Program, a Participant whose
employment with the Company is (i) involuntarily terminated by the Company,
except for Cause (as such term is defined in Section 5.2 below), or (ii)
voluntarily terminated by the Participant for Good Reason (as such term is
defined in Section 5.3 below) such Participant shall be eligible to receive the
following (collectively the “Severance Payments”):

·                  “Separation
Pay” and other applicable benefits per Company Policy 5-100, a copy of which is
attached hereto as Exhibit A or any amendments thereof.

·                  “Supplemental
Payment” as set forth on Exhibit B (the “Supplemental Payment”).

·                  Continuation
of Benefits (as that term is defined in Section 5.1 below) for the period
represented by the sum total number of months used to calculate both the
Separation Pay and the Supplemental Payment.

·                  Outplacement
services (group or personal) valued in an approximate range from $500 -$5,500.
The value of such services to be in the Company’s discretion, with higher
amounts reserved for Senior Management.

·                  Senior
Management (as that term is defined below) shall be entitled to:  (i) the retention of certain Company’
property (e.g., cell phones, PDA’s, computers, etc.); (ii) extensions of up to
one year within which to exercise vested stock options and (iii) additional
consideration all as determined by the Company’s Board or Directors and/or
Compensation Committee.

A
Participant may not receive any Severance Payment until and unless the
Participant has executed a global release of claims agreement as required by
the Company.  In addition, all of the
foregoing Severance Payments are subject to change by the Company as may be
needed to comply with federal, state, or local law.  The Severance Payments shall be subject to
all requirements established by the Internal Revenue Code of 1986,

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as amended (the “Code”), and all regulations promulgated thereunder,
including withholding amounts and date restrictions.  In addition, the Company may change the
manner, timing or amount of the Severance Payments if both the Participant and
Company agree in writing, or if the Compensation Committee determines that the
Severance Payments will cause a materially adverse tax result for the Company
or the Participant.  Any changes
contemplated by this paragraph shall be designed and implemented so as to
provide the Participant with an overall economic benefit equivalent to that
intended by the Severance Program.

15.                                 TERMS
AND CONDITIONS FOR THE SEVERANCE PAYMENTS

15.1                           RIGHT
TO SEVERANCE PAYMENTS:  Upon
executing the Company’s global release of claims agreement, releasing any and
all legal and other claims against the Company, including its employees,
agents, and representatives, a Participant whose employment with the Company is
involuntarily terminated by the Company, except for Cause (as such term is
defined in Section 5.2 below), or voluntarily terminated by the Participant for
Good Reason (as such term is defined in Section 5.3 below) shall be entitled to
receive his or her applicable Severance Payments no later than 60 days after
the expiration of any statutory periods of revocation, including the consideration
and revocation periods for waiver of age discrimination related claims.  This Severance Program shall not apply to any
Participant who dies, retires, voluntarily terminates his or her employment
without Good Reason, is involuntarily terminated by the Company for Cause, or
becomes unable to carry on full-time employment with the Company (a minimum of
8 hours per work day) due to disability or illness.

15.2                           NOT
A CONTRACT OF EMPLOYMENT: This Severance Program does not constitute or
create a contract of employment or create any specific contractual right or
obligation between the Company and its employees or any Participant. Nothing in
this policy affects or alters the at-will nature of a Participant’s employment
with the Company..

15.3                           WITHHOLDING:
All payments to a Participant under this Severance Program are subject to all
applicable federal, state, and local tax and other withholding requirements, as
determined by the Company.

15.4                           EFFECT
ON OTHER BENEFITS: Where conflicting, this Severance Program shall
supersede payments and benefits under Company Policy 5-100, but is in addition
to, and not in substitution for, any other agreements between a Participant and
the Company and any other pay or benefits for which the Participant is eligible
or entitled, including payments, if any, under the Company’s Senior Management
and Key Employee Retention Program.

16.                                 DEFINITIONS

16.1                           BENEFITS:
The term “Benefits” shall mean the Company’s medical and dental insurance
benefits at least equivalent to those provided to other employees of the
Company during the six-month period immediately preceding the Participants
termination of employment. Upon the Participant’s election of continuation of
Benefits coverage under COBRA the Company shall pay the premiums for such coverage
on behalf of the Participant for the period specified in Section 3 above.
Thereafter, the Participant may elect to continue such Benefits at their own
expense. Benefits shall not include participation in the Company’s 401(k) plan,
stock purchase programs and employee stock option plans except as expressly
provided for herein.

16.2                           CAUSE:  The term “Cause” shall mean the occurrence of
any of the following:

(a)                                  Acts
or omissions constituting gross negligence or willful misconduct relating to
the business of the Company;

(b)                                 Repeated
or continued failure to perform the duties and responsibilities of the
Participant’s position (other than as a result of a disability or illness)
after having a reasonable opportunity to cure such failure following notice;

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(c)                                  Inability
to perform the essential functions of the Participant’s position, with or
without accommodation, due to disability or illness;

(d)                                 Breach
of the Participant’s Intellectual Property and Invention Agreement and
Agreement Not-to-Compete (or similar agreement) with the Company;

(e)                                  Material
violation of the Company’s Code of Ethics, Policies or Procedures;

(f)                                    Conviction
or entry of a plea of nolo contendre for fraud, misappropriation or
embezzlement, or a crime of moral turpitude, if such crime caused harm to the
business and affairs of the Company in the reasonable determination of the
Compensation Committee;

(g)                                 Any
material violation of any federal or state securities law or any SEC or stock
exchange rules or regulation with respect to the Company; or

(h)                                 Conviction
or entry of a plea of nolo contendre with respect to any felony, if such felony
caused harm to the business and affairs of the Company in the reasonable
determination of the Compensation Committee

16.3                           GOOD
REASON: The term “Good Reason” shall mean the occurrence of any of the
following:

(a)                                  A
material reduction in the Participant’s compensation (other than stock based
compensation);

(b)                                 A
significant reduction of the Participant’s functions, duties or
responsibilities relative to his/her functions, duties or responsibilities, or

(c)                                  A
Participant’s relocation, as a condition of continued employment, by the
Company or a successor thereto to a location more than fifty (50) miles from
the Company’s current headquarters.

16.4                           SENIOR
MANAGEMENT: The term “Senior Management” shall mean those personnel
classified as senior management personnel as set forth on Exhibit B attached
hereto, as may be amended from time-to-time.

17.                                 ADMINISTRATION

This
Severance Program shall be administered generally by the Vice President of
Finance and, when necessary, by the Chief Executive Officer (“CEO”).  Should any person wish to make a claim for
benefits or to dispute a severance decision, the person must submit his/her
claim or dispute in writing to the Vice President of Finance, within
30 days of the decision at issue. 
The Vice President of Finance will render a decision within 30-45 days
of submission.  Upon receiving the
decision of the Vice President of Finance, the person shall have 30 days
in which to appeal in writing to the CEO, who shall have the full discretionary
authority to make the final decision.

18.                                 ARBITRATION

Any
dispute or controversy arising under, related to or in connection with the
Severance Program shall be settled exclusively by arbitration before a single
arbitrator in Salt Lake City, Utah, in accordance with the Commercial
Arbitration Rules of the American Arbitration Association under the abuse of
discretion standard. The arbitrator’s award shall be final and binding on all
parties. Judgment may be entered on an arbitrator’s award in any court having
competent jurisdiction.

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19.                                 ASSIGNMENT

All
rights under this Severance Program are personal to the Participant and may not
be assigned by the Participant.  This
Severance Program shall inure to the benefit of and be binding upon the Company
and its successors or assigns.  The
Company shall require any successor to all or substantially all of the Company’s
business and/or assets, whether direct or indirect, by purchase, merger,
consolidation, acquisition of stock, or otherwise, to expressly assume and
agree to perform the Company’s obligations under this Severance Program in the
same manner and to the same extent as the Company would be required to perform
it if no such succession had taken place.

20.                                 GOVERNING
LAW

This
Severance Program shall be governed by and construed in accordance with the law
of the State of Utah, without reference to principles of conflict of laws, and
any applicable federal law.

21.                                 PARACHUTE
PAYMENT LIMITATION

Notwithstanding
anything in this Severance Program to the contrary, in the event that:

(a)                                  The
aggregate payments or benefits to be made or distributed by the Company or its
subsidiaries to or for the benefit of a Participant (whether paid or payable or
distributed or distributable pursuant to the terms of this Severance Plan or
otherwise) which are deemed to be parachute payments as defined in Code Section
280G or any successor thereto (the “Change of Control Benefits”) would be
deemed to include an “excess parachute payment” under Code Section 280G; and

(b)                                 If
such Change of Control Benefits were reduced to an amount (the “Non-Triggering
Amount”), the value of which is one dollar ($1.00) less than an amount equal to
three (3) times the Participant’s “base amount,” as determined in accordance
with Code Section 280G and the Non-Triggering Amount less the product of the
marginal rate of any applicable state and federal income tax and the
Non-Triggering Amount would be greater than the aggregate value of the Change of
Control Benefits (without such reduction) minus (x) the amount of tax required
to be paid by the Participant thereon by Code Section 4999 and further minus
(y) the product of the Change of Control Benefits and the marginal rate of any
applicable state and federal income tax, then the Change of Control Benefits
shall be reduced to the Non-Triggering Amount; then

(c)                                  The
Participant shall determine the allocation of the reduction required hereby
among the Change of Control Benefits.

22.                                 TERMINATION
OF PROGRAM

This
Severance Program shall continue in full force and effect through December 31,
2008, thereafter it may be terminated by the Company in its sole discretion by
action of the Board of Directors.

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