Document:

Exhibit 4.13

	
  

  	
  LIMITED LIABILITY PARTNERSHIP

  

THE DISCRETIONARY INCENTIVE PLAN

Date adopted by the
Board:  9 November 1999

Amended by the Routine
Business Committee:  7 February 2007

CONTENTS

Clause

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions And Interpretation

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Grant Of Awards

  	
  2

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Individual Limit

  	
  3

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Plan Limits

  	
  3

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Exercise And Transfer Of Shares

  	
  4

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Cash Equivalent

  	
  7

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Takeover, Reconstruction And Winding-Up

  	
  8

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Variation Of Capital

  	
  8

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Alterations

  	
  9

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Miscellaneous

  	
  10

  

 

THE DISCRETIONARY INCENTIVE PLAN

1.             Definitions and Interpretation

1.1                             In this Plan, unless the context otherwise
requires:-

“American
Depositary Share” means an authorised depositary security
representing for the time being four ordinary shares in the Company and being
evidenced by an authorised depositary receipt issued by the Bank;

“Allocation”
means a conditional promise to transfer either ordinary shares in the Company
or American Depositary Shares as determined by the Board for no payment upon
the terms and restrictions set out in the Plan;

“Allocated Shares” means the number of shares in the Company
or American Depositary Shares subject to an Allocation;

“Award” means an
Allocation or Option as determined by the Board on the date of grant;

“the Award Date”
in relation to an Award means the date on which the Award was granted or such
earlier date as the Board may on the date on which the Award was granted deem
to be the date of grant;

“the Bank” means
The Bank of New York or such other bank as the Company may from time to time
appoint to issue authorised depositary receipts;

“the Board”
means the board of directors of the Company or a committee appointed by such
board of directors;

“the Company”
means Diageo plc (registered in England and Wales No. 23307);

“the London Stock Exchange”
means London Stock Exchange Limited plc;

“the New York Stock
Exchange” means The New York Stock Exchange, Inc;

“Option” means a
right to purchase either ordinary shares in the Company or American Depositary
Shares as determined by the Board upon the terms and restrictions set out in
the Plan;

“Participant”
means a person who holds an Award granted under the Plan;

“Participating Company”
means the Company or any Subsidiary;

“the Plan” means
the Discretionary Incentive
Plan as herein set out but subject to any alterations or additions made
under Rule 8 below;

“Subsidiary”
means a body corporate which is a subsidiary of the Company within the meaning
of section 736 of the Companies Act l985;

 1
 

“the No. 1 Trust”
means the Diageo Employee Benefit Trust established by deed dated 14 September
1998 between the Company and Mourant & Co. Trustees Limited;

“the No. 2 Trust”
means the Diageo No. 2 Employees’ Benefit Trust established by deed dated 27th May 1999 between the Company and Hill Street
Trustees Limited;

“the No.3 Trust”
means the Diageo No.3 Employees’ Benefit Trust established by deed dated 10th November 1999 between Diageo Inc and Hill
Street Trustees Limited;

“US Participant”
means a Participant who is resident in the United States of America at the date
of the Award to that Participant.

1.2                           Any
reference in the Plan to any enactment includes a reference to that enactment
as from time to time modified extended or re-enacted.

2.                                 GRANT OF AWARDS

2.1                           Subject
to sub-rules 2.2, 2.3, 2.4, 2.5 and 2.6 below and to Rule 3 below, the Board
may grant an Award to any employee or director of a Participating Company
(excluding any person who is a director of the Company) who is required to
devote the whole or substantially the whole of his working time to the service
of any Participating Company upon the terms set out in the Plan and upon such
other terms as the Board may specify. 
Such other terms may include any personal performance or business
performance targets set by the Board and notified to the Participant prior to
the Award Date.

2.2                           An
Award may only be granted under the Plan:-

2.2.1                            within
the period of 6 weeks beginning with the date on which the Plan is adopted by
the Company or the dealing day next following the date on which the Company
announces its results for any period, or at any other time when the
circumstances are considered by the Board to be sufficiently exceptional to
justify the grant thereof; and

2.2.2                            within
the period of 10 years beginning with the date on which the Plan is established

PROVIDED that no option may be granted under the Plan
during the “close period” as defined in the Model Code in the London Stock
Exchange’s “The Listing Rules”.

2.3                           In the
case of Awards granted prior to 22 October 2003, before granting an
Award, the Company shall have entered into an agreement with the trustees of
the No.1 Trust, the trustees of the No.2 Trust or the trustees of the No.3
Trust whereby the trustees agree to satisfy any Awards granted under the Plan.  The Company is not required to enter into
such agreement (but may, in its absolute discretion, choose to do so) in
relation to Awards granted on or after 22 October 2003.

2.4                           There
shall be no monetary consideration for the grant of any Award under the Plan,
and accordingly any such Award shall be granted by deed.

2.5                           The
price payable by the Participant on the acquisition of shares pursuant to the
exercise of an Option shall be in aggregate £1 (or in the case of American
Depositary Shares $1), 

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and, in the case of an Allocation, the
Participant shall not have to pay anything to receive the Allocated Shares.

2.6                           The
grant of any Award under the Plan shall be subject to obtaining any approval or
consent required under the provisions of the document “The Listing Rules”
published by The London Stock Exchange, of The City Code on Take-overs and
Mergers, of the listing rules of the New York Stock Exchange or of any
regulation or enactment.

2.7                           For the
purposes of an Award made to a US Participant, such an Award shall consist of
an Allocation in respect of American Depositary Shares.

2.8                           Subject
to Rule 4.4 below, an Award granted under the Plan to any person shall not be
capable of being transferred by him and shall lapse forthwith if it is so
transferred or if he is adjudged bankrupt.

3.                                 INDIVIDUAL
LIMIT

3.1                           The
Board may from time to time set a limit on the number of shares and/or the
value of shares that a Participant may acquire in pursuance of Awards granted
to him under the Plan.  In determining
the value of shares that a Participant may acquire, the shares shall be valued
by reference, in the case of ordinary shares in the Company, to the average of
the middle-market quotation of shares (as derived from the London Stock
Exchange Daily Official List) for the three dealing days immediately preceding
the Award Date, and in the case of American Depositary Shares, to the average
of the closing prices of the American Depositary Shares on the New York Stock
Exchange for the three New York Stock Exchange trading days immediately preceding
the Award Date.

3.2                           No
shares may be issued upon the exercise of an Option or upon transfer of
Allocated Shares since a Participant may acquire only existing shares in the
Company pursuant to an Award.

4.                                 PLAN
LIMITS

4.1                           Subject
to sub-rules 4.2 to 4.4, the Company may transfer shares held as
treasury shares to Participants when any Option is exercised or Allocated
Shares transferred.  No shares may be
issued under the Plan.

4.2                           No
options shall be granted, or shares issued otherwise than pursuant to the exercise
of an option, in any year which would, at the time of the grant or issue, cause
the number of shares in the Company which shall have been or may be issued in
pursuance of options granted in the period of 10 calendar years ending with
that year, or shall have been issued in that period otherwise than in pursuance
of options, under this Plan or under any other executive share scheme adopted
by the Company to exceed such number as represents 5 per cent of the ordinary
share capital of the Company in issue at that time.

4.3                           No
options shall be granted, or shares issued otherwise than pursuant to the
exercise of an option, in any year which would, at the time of the grant or
issue, cause the number of shares in the Company which shall have been or may
be issued in pursuance of options granted in the period of 10 calendar years
ending with that year, or been issued in that period otherwise than in
pursuance of options, under this Plan or under any other 

 3
 

employees’ share scheme adopted by the
Company to exceed such number as represents 10 per cent of the ordinary share
capital of the Company in issue at that time.

4.4                           Any
treasury shares held by the Company which are transferred to Participants in
satisfaction of Awards shall be treated as issued for the purposes of Rules 4.2
and 4.3 above.

5.                                 EXERCISE AND
TRANSFER OF SHARES

5.1                           The
exercise of any Option granted under the Plan and transfer of Allocated Shares
to a Participant shall be effected in such form and manner as the Board may
from time to time prescribe.

5.2                           Subject
to sub-rules 5.4 and 5.5 below and to Rule 7 below, an Award granted under the
Plan may not be exercised nor may Allocated Shares be transferred before the
third anniversary of the Award Date, and the number of shares in respect of
which an Option may be exercised at any time shall not, when added to the
number of shares in respect of which the Option has previously been exercised:-

5.2.1                            where
the Option is exercised prior to the fourth anniversary of the Award Date,
exceed one-third of the number of shares originally subject to the Option or
such larger number as the Board may determine on the Award Date; and

5.2.2                            when
the Option is exercised prior to the fifth anniversary of the Award Date,
exceed two-thirds of the number of shares originally subject to the Option or
such larger number as the Board may determine on the Award Date

and in the case of Allocated Shares, not more than one third of the
Allocated Shares (or such larger number as the Board may determine on the Award
Date) may be transferred on or shortly after the third anniversary of the Award
Date, not more than a further third of the Allocated Shares (or such other
number as the Board may determine on the Award Date) may be transferred on or
shortly after the fourth anniversary of the Award Date, and the final one third
of the Allocated Shares (or such other number as the Board may determine on the
Award Date) may not be transferred until the fifth anniversary of the Award
Date

Provided that where any
adjustment has been made under sub-rule 8.2 below to the number of shares
subject to the Option or the number of Allocated Shares, a corresponding
adjustment shall be assumed for this purpose to have been made to the number of
shares originally subject to the Option, the number of shares in respect of
which the Option has been exercised and to the number of Allocated Shares which
may be transferred.

5.3                           If the
Board specified other terms as mentioned in sub-rule 2.1 above (“the relevant
condition”), an Option may not be exercised nor may Allocated Shares be
transferred if the relevant condition is not satisfied, subject to sub-rule
5.4, 5.5(a), 5.5(b), 5.5(c), 5.5(d) and 7.4 below.

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5.4                           If any
Participant dies before exercising an Option or before Allocated Shares are
transferred to him and at a time when he is either a director or employee of a
Participating Company or entitled to exercise the Award or have the Allocated
Shares transferred to him by virtue of sub-rule 5.5 below, the Option may (and
must, if at all) be exercised by his personal representatives within
12 months after the date of his death, and Allocated Shares shall be
transferred to his personal representatives as soon as reasonably practicable
following his death.

5.5                           If any
Participant ceases to be a director or employee of a Participating Company
(otherwise than by reason of his death), the following provisions apply in
relation to any Award granted to him under the Plan (unless the Board at any
time decides otherwise):-

(a)                                        if
he so ceases by reason of injury or disability, the Option may (and subject to
sub-rule 5.4 above must, if at all) be exercised within the period which shall
expire 6 months after his so ceasing and Allocated Shares shall be
transferred as soon as reasonably practicable following the date of cessation;

(b)                                       if
he so ceases by reason of redundancy (within the meaning of the Employment
Rights Act 1996) or by reason only that his office or employment is in a
company which ceases to be a Participating Company, or relates to a business or
part of a business which is transferred to a person who is not a Participating
Company, the Option may (and subject to sub-rule 5.4 above must if at all) be
exercised within the period which shall expire 6 months after his so ceasing,
but if he so ceases before the third anniversary of the Award Date the Option
may be exercised only in respect of the number of shares which he could have
acquired on the third anniversary of the Award Date in accordance with sub-rule
5.2.1 above, and if he ceases on or after the third anniversary of the Award
Date and before the fourth anniversary, the Option may be exercised only in
respect of an aggregate of the number of shares which he could have acquired on
the third anniversary of the Award Date and a time-apportioned proportion of
the additional number of shares which he could have otherwise acquired on the
fourth anniversary of the Award Date (based on the proportion of time he has
spent in employment during the further year), and if he ceases on or after the
fourth anniversary of the Award Date and before the fifth anniversary, the
Option may be exercised only in respect of an aggregate of the number of shares
which he could have otherwise acquired on the fourth anniversary of the Award
Date and a time-apportioned proportion of the additional number of shares which
he could have otherwise acquired on the fifth anniversary of the Award Date
(based on the proportion of time he has spent in employment during the further
year), and the number of Allocated Shares which may be transferred shall be
calculated in the same way as the number of shares in respect of which an
Option may be exercised;

(c)                                        for
Awards granted before [Date] 2006, if he so ceases by reason of retirement on
reaching the age at which he is bound to retire in accordance with the terms of
his contract of employment or by reason of early retirement with the consent of
the Company, the Option may not be exercised and Allocated Shares may not be
transferred;

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(d)                                       if
he so ceases for any other reason, the Award may not be exercised unless the
Board shall so permit, in which event the Option may (and subject to sub-rule
5.4 above must, if at all) be exercised and Allocated Shares may be transferred
to the extent permitted by the Board within such period as the Board may decide.

5.6                           A
Participant shall not be treated for the purposes of sub-rule 5.5 above as
ceasing to be a director or employee of a Participating Company until such time
as he is no longer a director or employee of any of the Participating
Companies, and a female Participant who ceases to be such a director or
employee by reason of pregnancy or confinement and who exercises her right to
return to work under the Employment Rights Act 1996 before exercising an Award
under the Plan shall be treated for those purposes as not having ceased to be
such a director or employee.

5.7                           Notwithstanding
any other provision of the Plan, an Option may not be exercised after the
expiration of the period of 10 years beginning with the date on which it is
granted.

5.8                           Subject
to sub-rule 5.9 below, within 30 days after an Option has been exercised by any
person or a person has become entitled to have Allocated Shares transferred to
him, the Board shall procure the transfer to him (or his nominee) of the
required number of shares, provided that:

(a)                                      the
Board considers that the transfer thereof would be lawful in all relevant
jurisdictions; and

(b)                                     in
a case where a Participating Company is obliged to account for any tax (in any
jurisdiction) for which the person in question is liable by virtue of the
exercise of the Option or transfer of Allocated Shares and/or any social
security contributions recoverable from the person in question (together, the
“Tax Liability”), that person has either:

(i)                        made a
payment to the Participating Company of an amount equal to the Tax Liability;
or

(ii)                     entered into
arrangements acceptable to that or another Participating Company to secure that
such a payment is made (whether by authorising the sale of some or all of the
shares on his behalf and the payment to the Participating Company of the
relevant amount out of the proceeds of sale or otherwise).

5.9                           The
transfer of any shares under the Plan shall be subject to obtaining any such
approval or consent as is mentioned in Rule 2.6 above.

5.10                     Notwithstanding
anything to the contrary contained herein, Allocated Shares may not be sold,
transferred, encumbered, lodged or otherwise disposed of unless so disposed of
in a transaction registered under the United States Securities Act of 1933 (the
“Securities Act”) or in a transaction in compliance with Rule 144 under the
Securities Act or in a transaction exempt from registration under the
Securities Act.

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6.                                 CASH
EQUIVALENT

6.1                           Where
an option granted under the Plan has been exercised by any person in respect of
any number of shares, or where a person has become entitled to have any number
of Allocated Shares transferred to him, and those shares have not yet been
transferred to him in accordance with sub-rule 5.8 above, the Board may
determine that, in substitution for his right to acquire such number of those
shares as the Board may decide (but in full and final satisfaction of his said
right), he shall be paid by way of additional emoluments a sum equal to the
cash equivalent of that number of shares or, in the case of a US Participant,
if he elects to defer receipt of the sum pursuant to his employer’s deferred
compensation plan or in accordance with rules established by the Board, an
amount equal to such sum shall be credited to his account under his employer’s
deferred compensation plan.

6.2                           For the
purposes of this Rule:-

6.2.1                            the cash equivalent of any shares to be
transferred pursuant to the exercise of an option is the amount by which, in
the Board’s opinion, the market value of those shares on the day last preceding
the date on which the option was exercised (or, if at the relevant time shares
of the same class as those shares were listed in The Stock Exchange Daily
Official List, the middle-market quotation of shares of that class, as derived
from that List, on the dealing day last preceding that date or, in the case of
American Depositary Shares, the closing price of such shares on the New York
Stock Exchange on the dealing day last preceding that date) exceeds the price
at which those shares may be acquired by the exercise of the option;

6.2.2                            the cash equivalent of any Allocated Shares to
be transferred is the amount which, in the Board’s opinion, is the market value
of those shares on the day last preceding the date on which the person entitled
to have such Allocated Shares transferred to him became so entitled (or, if at
the relevant time shares of the same class as those shares were listed in The
Stock Exchange Daily Official List, the middle-market quotation of shares of
that class, as derived from that List, on the dealing day last preceding that
date or, in the case of American Depositary Shares, the closing price of such
shares on the New York Stock Exchange on the dealing day last preceding that
date);

6.3                           Subject
to sub-rule 6.4 below, as soon as reasonably practicable after a determination
has been made under sub-rule 6.1 above that a person shall be paid a sum in
substitution for his right to acquire any number of shares:-

6.3.1                            the
Company shall pay to him or procure the payment to him of that sum in cash; and

6.3.2                            if he
has already paid the Company for those shares, the Company shall return to him
the amount so paid by him.

6.4                           If the
Board in its discretion so decides:-

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6.4.1                            the
whole or part of the sum payable under sub-rule 6.3.1 above shall, instead of
being paid to the person in question in cash, be applied on his behalf in
purchasing shares in the Company at a price equal to the market value (or, as
the case may be, the middle-market quotation) by reference to which the cash
equivalent is calculated, and

6.4.2                            the
Company shall procure the transfer to him (or his nominee) of the shares so
purchased.

6.5                           There
shall be made from any payment under this Rule such deductions (on account of
tax or similar liabilities) as may be required by law or as the Board may
reasonably consider to be necessary or desirable.

7.                                 TAKEOVER, RECONSTRUCTION AND WINDING-UP

7.1                           If any
person obtains control of the Company (within the meaning of section 840 of the
Income and Corporation Taxes Act 1988) as a result of making a general offer to
acquire shares in the Company, or having obtained such control makes such an
offer, the Board shall within 7 days of becoming aware thereof notify every
Participant thereof and, subject to sub-rules 5.3, 5.4, 5.5 and 5.7 above, an Option
may be exercised within one month (or such longer period as the Board may
permit) of such notification and Allocated Shares shall be transferred as soon
as reasonably practicable after notification.

7.2                           For the
purposes of sub-rule 7.1 above, a person shall be deemed to have obtained
control of the Company if he and others acting in concert with him have
together obtained control of it.

7.3                           If any
person becomes bound or entitled to acquire shares in the Company under
sections 428 to 430F of the Companies Act 1985, or if under section 425 of that
Act the Court sanctions a compromise or arrangement proposed for the purposes
of or in connection with a scheme for the reconstruction of the Company or its
amalgamation with any other company or companies, or if the Company passes a
resolution for voluntary winding up, or if an order is made for the compulsory
winding up of the Company, the Board shall forthwith notify every Participant
thereof and any Award granted under the Plan may, subject to sub-rules 5.3,
5.4, 5.5 and 5.7 above, be exercised within one month of such notification, but
to the extent that it is not exercised within that period shall
(notwithstanding any other provision of the Plan) lapse on the expiration
thereof and Allocated Shares shall be transferred as soon as reasonably
practicable after such notification.

7.4                           In
relation to an Award which would but for sub-rule 5.3 above be exercisable (or
would permit Allocated Shares to be transferred) by virtue of an event
mentioned in sub-rule 7.1 or 7.3 above, the Board may, at its discretion and
acting fairly and reasonably, treat the relevant condition as satisfied if, at
the time of the event, the Board cannot determine whether the relevant
condition is in fact satisfied.

8.                                 VARIATION OF CAPITAL

8.1                           In the
event of any increase or variation of the share capital of the Company
(whenever effected) (including any change in the number of ordinary shares
underlying an 

 8
 

American Depositary Share) or in the event
the Company makes a demerger by way of exempt distribution under section 213 of
the Taxes Act 1988 or pays a special dividend or repurchases its share capital,
the Board may make such adjustments as it considers appropriate under sub-rule
8.2 below.

8.2                           An
adjustment made under this sub-rule shall be to one or more of the following:-

8.2.1                            the
number of shares in respect of which any Option may be exercised;

8.2.2                            the
number of American Depositary Shares in respect of which any Option may be
exercised;

8.2.3                            where
any such Option has been exercised but no shares have been transferred pursuant
to such exercise, the number of shares which may be so transferred and the
price at which they may be purchased;

8.2.4                            the
number of Allocated Shares.

8.3                           As soon
as reasonably practicable after making any adjustment under sub-rule 8.2 above,
the Board shall give notice in writing thereof to any Participant affected
thereby.

9.                                 ALTERATIONS

9.1                           Subject
to sub-rule 9.2 below, the Board may at any time alter or add to all or any of
the provisions of the Plan, or the terms of any Award granted under it, in any
respect.

9.2                           No
alteration to the advantage of Participants shall be made under Rule 9.1 to any
of Rules 2, 4.1 to 4.4 inclusive, 5.2 to 5.5 inclusive, 5.7, 7.1 to 7.4
inclusive, 8.1 and 8.2 without the prior approval by ordinary resolution of the
members of the Company in general meeting.

9.3                           Rule
9.2 shall not apply to:

9.3.1                            any
minor alteration to benefit the administration of the Plan, to take account of
a change in legislation or to obtain or maintain favourable tax, exchange
control or regulatory treatment for Participants or any Group Member; or

9.3.2                            any
alteration solely relating to a special term.

9.4                           No
alteration or addition to the disadvantage of any Participant shall be made
under sub-rule 9.1 above unless:-

9.4.1                            the
Board shall have invited every such Participant to give an indication as to
whether or not he approves the alteration or addition, and

9.4.2                            the
alteration or addition is approved by a majority of those Participants who have
given such an indication.

9.5                           As soon
as reasonably practicable after making any alteration or addition under
sub-rule 9.1 above, the Board shall give notice in writing thereof to any
Participant affected thereby.

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10.                           MISCELLANEOUS

10.1                     The rights
and obligations of any individual under the terms of his office or employment
with any Participating Company shall not be affected by his participation in
the Plan or any right which he may have to participate therein, and an
individual who participates therein shall waive any and all rights to
compensation or damages in consequence of the termination of his office or
employment for any reason whatsoever insofar as those rights arise or may arise
from his ceasing to have rights under or be entitled to exercise any Award
under the Plan as a result of such termination.

10.2                     In the event
of any dispute or disagreement as to the interpretation of the Plan, or as to
any question or right arising from or related to the Plan, the decision of the
Board shall be final and binding upon all persons.

10.3                     The Company
and any Subsidiary may provide money to the No. 1 Trust, the No. 2 Trust, the No. 3 Trust or any other
person to enable them or him to acquire shares to be held for the purposes of
the Plan, or enter into any guarantee or indemnity for those purposes, to the
extent permitted by section 153(4) of the Companies Act 1985 and, where
applicable, section 154 of that Act.

10.4                     Where an
Award is granted under the Plan to a person who is not chargeable to tax under
Case I of Schedule E in respect of the office or employment by virtue of
which it is granted to him, the provisions of the Plan shall apply thereto
subject to such alterations or additions as the Board shall before the grant
thereof have determined having regard to any securities, exchange control or
taxation laws or regulations or similar factors which may have application to
him or to any Participating Company in relation to the option.

10.5                     Any notice or
other communication under or in connection with the Plan may be given by
personal delivery or by sending the same by post, in the case of a company to
its registered office marked for the attention of the Company Secretary, and in
the case of an individual to his last known address, or, where he is a director
or employee of a Participating Company, either to his last known address or to
the address of the place of business at which he performs the whole or
substantially the whole of the duties of his office or employment, and where a
notice or other communication is given by first-class post, it shall be deemed
to have been received 48 hours after it was put into the post properly
addressed and stamped.

10.6                     The rules of
the Plan and the rights and obligations of any individual thereunder shall be
governed by and construed in accordance with the law of England.

 10Exhibit 10.1

EMPLOYMENT
AGREEMENT

EMPLOYMENT
AGREEMENT (this “Agreement”) effective 
September 11, 2007 (the “Effective Date”) by and between ANDOVER
MEDICAL, INC, a Delaware corporation, (the “Company”) and JIM SHANAHAN (the “Executive”)
(collectively, the “Parties”).

WHEREAS, the Executive is presently employed by the
Company in a senior executive capacity;

WHEREAS, the Company desires to continue to employ the
Executive and to enter into an agreement embodying the terms of such
employment; and

WHEREAS, the Executive desires to continue his
employment with the Company on the terms and conditions set forth herein and
enter into such agreement.

NOW THEREFORE, in consideration of the premises and mutual covenants
herein and for other good and valuable consideration, the Parties agree as
follows:

1.           Effectiveness;
Term of Employment.

a.             Effectiveness.   This Agreement shall constitute a binding
agreement between the Parties as of the date hereof.

b.             Term of Employment.  
The term of this Agreement shall commence on the Effective Date and
terminate two (2) years thereafter or for such longer term as the Company and
the Executive may agree in writing, but subject to the termination provisions
of Paragraph 7 below (the “Term).

2.           Position.

a.             During
the Term, the Executive shall serve as the Company’s Chief Financial
Officer.  The Executive shall report to
the Chief Executive Officer (“CEO”) and have and perform such duties and
authority generally associated with a Vice President and Chief Financial
Officer of a publicly owned corporation. 
The Executive will have and perform other duties as shall be determined
from time to time by the CEO and the Company’s Board of Directors (the “Board”)
consistent with the Executive’s position.

b.             During
the Term, the Executive will devote substantially all of his business time and
efforts (excluding periods of vacation and sick days) to the performance of the
Executive’s duties hereunder, and will not engage in any other business,
profession or occupation which would conflict or interfere with the rendition
of such services either directly or indirectly, without the prior written
consent of the Board, which consent shall not unreasonably be withheld.  The Executive may: (i) engage in personal
investment activities (including for the Executive’s immediate family);
(ii) serve on the boards of nonprofit organizations and business entities;
and/or (iii) be involved in other organizations, in each case provided that any
of such 

activities do not materially interfere with the Executive’s performance
of his duties for the Company or create a conflict of interest with that of the
Company.

c.             Subject
to such travel as the performance of the Executive’s duties may reasonably
require, the Executive shall perform the duties required of him by this
Agreement.

3.            Compensation.

a.             Base Salary.  
The Executive’s Gross Base Salary, is hereinafter referred to as “Base
Salary.” During the term, the Company shall pay to the Executive a Base
Salary of $5,769.23 per biweekly period ($150,000.00 per year), paid in
accordance with the Company’s regular payroll practices.  Executive’s Base Salary will be subject to
all appropriate legally required tax deductions.

b.             Equity Based Compensation.  
In conjunction with the execution of this Agreement, the Executive shall
be granted a one-time grant of incentive stock options (“Options”) to purchase
300,000 shares of the Company’s common stock at an exercise price per share
equal to the closing price of such stock on September 11, 2007.  The Options shall vest in 36 equal monthly
installments and, upon vesting, be exercisable by the Executive, in whole or in
part, at any time through their expiration date.  The terms of the Options shall be set forth
in a stock option agreement granting such Options and shall be issued to the
Executive in accordance with the Andover Medical, Inc. 2006 Employee Stock
Incentive Plan (the “2006 Plan”).  

c.             Annual Bonus.  The Executive shall receive an annual
incentive bonus (the “Bonus”) based on certain criteria and corporate objectives
similar to the objectives established by the Board for the CEO.  The Bonus target shall be twenty-five percent
(25%) of the Executive’s Base Salary and be paid to the Executive on an annual
basis, subject to all appropriate legally required tax deductions.  

d.             2006 Plan.   During the Term, the
Executive shall be eligible to participate in the Company’s 2006 Plan, or such
other individual long term incentive arrangement for the Executive’s benefit
approved by the Board, which shall grant to the Executive on an annual basis at
the Board’s discretion, cash, stock, options and/or other types of compensatory
awards.

4.           Benefits
and Insurance.

a.             Benefits.   During the Term, the
Executive shall be entitled to participate in the Company’s employee benefit
plans (other than any annual bonus or other compensation or severance plans or
programs, which benefits are set forth in this Agreement) as in effect from
time to time (collectively “Benefits”), on the same basis as those
benefits are generally made available to other employees.  Such Benefits shall include health, dental,
and life insurance benefits.  The Company
reserves the right to change or cancel any Benefits at its sole discretion,
except as specifically set forth in this Agreement.

b.             Directors and Officers Liability Insurance.  
During the Term, and for a reasonable period (not less than two years)
thereafter, the Company shall maintain 

 2
 

Directors and
Officers liability insurance coverage for the Executive in a total coverage
amount determined by the Board to be reasonable, provided that, if the
Executive’s employment is terminated for “Cause” or Executive resigns his
employment without “Good Reason,” each term as defined herein, the Company may,
at its discretion, elect not to maintain Directors and Officers liability
insurance coverage for the Executive after the Executive’s termination date.

5.          Business Expenses.   During the Term, the Company shall reimburse
the Executive for, or pay on behalf of the Executive, all reasonable and
customary business expenses, including but not limited to travel expenses
incurred by the Executive in the performance of the Executive’s duties
hereunder.

6.          Vacations and Sick Time.   During the Term, the Executive
shall be entitled to 15 days of vacation annually, prorated on a monthly basis
from the Effective Date.  Up to one week
of vacation time may be carried over until March 31 of the next calendar year,
at which time it shall be forfeited if unused.

7.          Termination. 
The Term of the Executive’s employment hereunder shall
commence on the Effective Date and terminate two (2) years thereafter, unless
terminated earlier by the Company or by the Executive pursuant to this
Paragraph 7.

a.                                     Termination
By the Company For Cause; Resignation By Executive Without Good Reason.

(i)  The
Term and the Executive’s employment hereunder may be terminated by the Company
for Cause (defined below).  Additionally,
the Executive’s employment shall terminate automatically upon Executive’s
resignation without Good Reason (as hereinafter defined).

(ii)  For
purposes of this Agreement, “Cause” shall mean: (A) the Executive’s
material breach of this Agreement; (B) the Executive’s willful misconduct in
the performance of Executive’s duties hereunder that has an adverse effect on
the Company; (C) the Executive’s indictment for, or plea of nolo  contendere
to a felony under the laws of the United States or any state thereof or a
misdemeanor involving moral turpitude; or (D) the Executive’s willful
malfeasance or willful misconduct in connection with the Executive’s duties
hereunder which is materially injurious to the financial condition or business
reputation of the Company; provided, that no such termination shall be
effective as a termination for “Cause” unless the Executive has been given
written notice by the Board of its intention to terminate the Executive’s
employment for Cause, stating the grounds for such purported termination.

(iii)  If
the Executive’s employment is terminated by the Company for Cause or if the
Executive resigns without Good Reason, the Executive shall be entitled only to
receive:

 3
 

 

(A)            the
Executive’s Base Salary through the date of the Executive’s termination, paid
in one lump sum within the payroll period immediately following the Executive’s
date of termination;

(B)           reimbursement
for any business expenses properly incurred by the Executive in accordance with
Company policy prior to the date of the Executive’s termination; and

(C)           such
Benefits, if any, pursuant to Paragraph 4 herein as to which the Executive may
be entitled as of the effective date of termination under the employee benefit
plans of the Company, as required by applicable law.

The amounts described in clauses (A) through (C) are
referred to herein as the “Accrued Rights.”

b.                                     Termination
by the Company Without Cause; Resignation by Executive for Good Reason.

(i)  The
Term and the Executive’s employment hereunder may be terminated by the Company
without Cause or by the Executive’s resignation for Good Reason.

(ii)  For
purposes of this Agreement, “Good Reason” shall mean only: (A) the failure of
the Company to pay or cause to be paid, or to provide or cause to be provided,
any part of the Executive’s compensation, benefits or perquisites within ten
business days from the date due hereunder; (B) any change in the Executive’s
office location that would require him to commute more than fifty (50) miles
from his current personal residence, as specified herein; (C) any material
breach by the Company of this Agreement; or (D) a Change of Control (as
hereinafter defined); provided that the events described in clauses (A)
through (C) of this Paragraph 7(b)(ii) shall constitute Good Reason only
if the Company fails to cure such event to the Executive’s reasonable
satisfaction within 30 days after receipt from the Executive of written notice
of the event which constitutes Good Reason. 
The Executive’s determination that Good Reason exists shall be subject
to review, at the Company’s election, through arbitration in accordance with
Paragraph 15 herein.

(iii)  For
purposes of this Agreement, “Change of Control” shall mean any one of the
following transactions: (i) the acquisition in a transaction or a series of
transactions (including a merger) by any person or organization, other than the
Company or any of its subsidiaries, of beneficial ownership of fifty percent
(50%) or more (on a fully diluted basis) of the combined voting power of the
then outstanding voting securities of the Company entitled to vote generally in
the election of directors or persons holding similar positions with the
Company; (ii) individuals who, as of the date of this Agreement, constitute the
Board of Directors of the Company, or successors appointed with the approval of
such 

 4
 

individuals,
cease for any reason to constitute at least a majority of the Board of
Directors (or similar body) as constituted from time to time; or (iii) the sale
or other disposition of all or substantially all of the assets of the Company
in one transaction or series of related transactions.

(iv)  If
the Term and the Executive’s employment is terminated by the Company without
Cause or if the Executive resigns for Good Reason, the Executive shall be
entitled only to receive:

(A)      the
amount equal to six months of the Executive’s Base Salary, payable in monthly
installments equal to Executive’s monthly Base Salary for the first six (6)
months beginning with the Company’s payroll date following the Executive’s date
of termination;

(B)      all
restrictions on any shares of Company stock, options, or other equity grants to
the Executive shall lapse on the date of termination;

(C)      reimbursement
for any business expenses properly incurred by the Executive in accordance with
Company policy prior to the date of the Executive’s termination on or before
the Company’s payroll period immediately following the Executive’s date of
termination;

(D)      payment
of any accrued but unused vacation days on or before the Company payroll period
immediately following the Executive’s date of termination; and

(E)      Directors
and Officers liability insurance coverage in a total coverage amount determined
by the Board to be reasonable for a period of 
two years after the Executive’s termination date.

c.             Termination
Due to Death.

(A)      The
Term and the Executive’s employment hereunder shall terminate upon the
Executive’s death.  Upon termination of the Term and
the Executive’s employment hereunder for the Executive’s death, the Executive’s
spouse or estate (as the case may be) shall be entitled only to receive the
Accrued Rights.

d.             Termination
Due to Disability.

(i)  The
Term and the Executive’s employment may be terminated by the Company upon the
Executive’s “Disability”, which shall mean if the Executive becomes
physically or mentally incapacitated and is therefore unable to perform the
essential functions of Executive’s position as Chief Financial 

 5
 

Officer for a
consecutive period of two (2) months during the Term; or, an aggregate of three
(3) months during the Term.

  Prior to the
termination of the Term and the Executive’s employment for Disability as
described above, a written report from the Executive’s physician must be
submitted to the Board, and include, at a minimum, a diagnosis of the Executive’s
condition, together with an assessment of the Executive’s ability to continue
in his role as Vice President and Chief Financial Officer pursuant to the
conditions referenced in Paragraph 2.  Any question as to the existence of
the Executive’s Disability where the Executive and the Company cannot agree
shall be reviewed by a qualified physician mutually acceptable to the Executive
and the Company.  Upon reviewing the
diagnosis and prognosis of the Executive, such mutually accepted and qualified
physician shall provide a report of his/her findings to the Board and the
Executive, and shall be final and conclusive for purposes of this Agreement.

(ii)  Upon
termination of the Term and the Executive’s employment hereunder for the
Executive’s Disability, the Executive shall be entitled to receive:

(A)      the
Accrued Rights; and

(B)      all
restrictions on any shares of Company stock or equity grants, together with all
options granted shall lapse on the date of the Executive’s termination due to
Disability.

e.             Notice
of Termination.   Any purported termination of the Term and
the Executive’s employment by the Company or by the Executive (other than due
to the Executive’s death) shall be communicated by written Notice of
Termination to the other party.  For
purposes of this Agreement, a “Notice of Termination” shall mean a notice which
shall indicate the specific termination provision in this Agreement relied upon
and shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of employment under the provision so indicated,
provided that the procedures set forth in Paragraph 7(b)(ii) herein must be complied
with in respect of any resignation by the Executive for “Good Reason.”

8.          Non-Competition.

a.             Executive acknowledges and recognizes the
highly competitive nature of the busi­ness of the Company and that he provides
essential and unique services to the Company. 
Accordingly, despite that the terms contained herein may limit the
Executive’s ability to engage in certain business pursuits during the
Restricted Period (as defined below), the Executive hereby agrees as follows:

During the Term and for
the period ending two years following the termination of the Term and Executive’s
employment with the Company for any reason other than an involuntary
termination without Cause or a voluntary resignation by the Executive for 

 6
 

Good Reason (the “Restricted Period”), the Executive
will not, whether on the Executive’s own behalf or on behalf of or in
conjunction with any person, firm, partnership, joint venture, association,
corporation or other business organization, entity or enterprise whatsoever (“Person”):

(i)  become
an officer, director, joint venturer, employee, agent, consultant or five
percent (5%) or more shareholder (either directly or indirectly) of, or
promote, provide services to or assist in any way, any person or entity which
directly competes with any business of the Company or any of its affiliates in
which the Company or such affiliates are engaged as of the date of the
Executive’s termination of employment with the Company (hereinafter, engage in
a “Competing Business”).  The Executive
acknowledges that such restriction may limit his ability to engage in certain
business pursuits during the Restricted Period, but also acknowledges that the
Company has provided significantly higher remuneration and benefits from the
Company, as provided herein, than that which he otherwise would have received
to adequately compensate him for such restriction.  The Executive has had an opportunity to
consult with an attorney with respect to these restrictions;

(ii)  interfere
with, or attempt to interfere with, business relationships (whether formed
before, on or after the date of this Agreement) between the Company and
customers, clients, suppliers, partners, members or investors of the Company.

b.             It
is expressly understood and agreed that although the Executive and the Company
consider the restrictions contained in this Paragraph 8 to be reasonable, if a
final determination is made by an arbitrator or arbitrators, or by a court of
competent jurisdiction that the time or territory or any other restriction
contained in this Agreement is an unenforceable restriction against the
Executive, the provisions of this Agreement shall not be rendered void but
shall be deemed amended to apply as to such maximum time and terri­tory and to
such maximum 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 affect the enforceability of any of
the other restrictions contained herein.

9.          Non-Solicitation.

a.             The
Executive acknowledges and recognizes the highly competitive nature of the busi­ness
of the Company and that he provides essential and unique services to the
Company.  Accordingly, despite that the
terms contained herein may limit the Executive’s ability to engage in certain
business pursuits during the Restricted Period (as defined above), the
Executive hereby agrees as follows:

During the Restricted
Period (as defined above), the Executive will not, whether on his own behalf or
on behalf of or in conjunction with any Person (as defined above):

 7
 

 

(i)  directly
or indirectly solicit or encourage any employee of the Company to leave the employment
of the Company; or enter into an employment agreement or independent contractor
agreement with any such employee;

(ii)  directly
or indirectly solicit or enter into any business relationship with any person
or entity who, at the time of the termination of the Executive’s employment
with the Company, was a customer of the Company or actively was being solicited
by the Company to be a customer of the Company;

(iii)  directly
or indirectly, encourage any consultant then under contract with the Company to
cease to work with the Company;

(iv)  directly
or indirectly, encourage any of the Company’s customers or suppliers to cease
doing business or reduce the amount of business it does with the Company.

b.             It
is expressly understood and agreed that although the Executive and the Company
consider the restrictions contained in this Paragraph 9 to be reasonable, if a
final determination is made by an arbitrator or arbitrators, or by a court of
competent jurisdiction that the time or territory or any other restriction
contained in this Agreement is an unenforceable restriction against the
Executive, the provisions of this Agreement shall not be rendered void but
shall be deemed amended to apply as to such maximum time and terri­tory and to
such maximum 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 affect the enforceability of any of
the other restrictions contained herein.

10.        Confidential
Information.

a.             The Executive
will not at any time (whether during or after the Executive’s employment with
the Company) retain or use for the benefit, purposes or account of the
Executive or any other Person or disclose, divulge, reveal, communicate, share,
transfer or provide access to any Person outside the Company (other than its
professional advisers who are bound by confidentiality obligations or as
otherwise required in connection with the proper performance of his duties on
behalf of the Company), any non-public, proprietary or confidential information
— including without limitation trade secrets, know-how, research and development,
strategies, software, databases, inventions, processes, formulae, technology,
designs and other intellectual property, information concerning finances,
profits, pricing, costs, products, services, vendors, customers, clients,
partners, personnel, compensation, recruiting, training, advertising, sales,
marketing, promotions — concerning the past, current or future business,
activities and operations of the Company and/or any third party that has
disclosed or provided any of same to the Company on a confidential basis (“Confidential
Information”) without the prior written authorization of the Board.

b.             
“Confidential Information” shall not include any information that is: (a)
generally known to the industry or the public other than as a result of the Executive’s
breach of this covenant or any breach of other confidentiality obligations by
third parties; 

 8
 

(b) made
legitimately available to the Executive by a third party without breach of any
confidentiality obligation; or (c) required by law or legal process to be
disclosed; provided that the Executive shall give prompt written notice
to the Company of such requirement, disclose no more information than is so
required, and reasonably cooperate with any attempts by the Company to obtain a
protective order or similar treatment at the Company’s sole expense.

c.             Except
as required by law, the Executive will not disclose to anyone, other than
Executive’s immediate family and legal and other professional advisors, or as
he may be compelled by law or legal process, the contents of this
Agreement;  provided that the
Executive may disclose to any prospective future employer the provisions of
Paragraphs 8, 9 and 10 of this Agreement provided they agree to maintain the
confidentiality of such terms, and may disclose the contents of this Agreement
in order to enforce its terms.

d.             Upon termination
of the Executive’s employment with the Company for any reason, the Executive
shall cease and not thereafter commence use of any Confidential Information
owned or used by the Company, and upon notification from the Company shall
destroy, delete, or return to the Company, at the Company’s option, all
originals and copies in any form or medium (including memoranda, books, papers,
plans, computer files, letters and other data) in the Executive’s possession or
control (including any of the foregoing stored or located in the Executive’s
office, home, laptop or other computer, whether or not Company property) that
contain Confidential Information or is otherwise the property of the Company,
except that the Executive may retain only those portions of any personal notes,
notebooks and diaries that do not contain any Confidential Information.

The provisions
of this Paragraph 10 shall survive the termination of the Executive’s
employment with the Company for any reason.

11.        Intellectual Property.

a.             If
the Executive creates, invents, designs, develops, contributes to or improves
any United States or foreign works of authorship, design, program, software,
source code, inventions, materials, documents, inventions, trade secrets,
processes, patent applications, patents, know-how, copyrightable subject
matter, and/or other intellectual property or work product of any kind
(including without limitation, research, reports, software, databases, systems,
applications, presentations, textual works, content, or audiovisual materials),
either alone or with third parties, at any time during the Term and within the
scope of the Executive’s employment and/or with the use of any Company
resources (“Company Works”), the Executive shall promptly and fully disclose
same to the Company, hereby irrevocably relinquishes for the benefit of the
Company and its assigns any rights the Executive may have to the Company Works,
and hereby irrevocably assigns, transfers and conveys, to the maximum extent
permitted by applicable law, all rights and intellectual property rights
therein (including rights under patent, industrial property, copyright,
trademark, trade secret, unfair competition and related laws) to the Company to
the extent ownership of any such rights does not vest originally in the
Company, without further consideration.

b.             During
or after the Term, the Executive shall take all requested actions and execute
all requested documents (including any licenses or assignments required by a 

 9
 

government contract) at the Company’s expense (but without further
remuneration) to assist the Company in validating, maintaining, protecting,
enforcing, perfecting, recording, patenting or registering any of the Company’s
rights in the Company Works.

c.             The provisions of this Paragraph 11 shall
survive the termination of the Executive’s employment for any reason.

12.        Specific Performance.   The Executive acknowledges and agrees that
the Company’s remedies at law for a breach or threatened breach of any of the
provisions of Paragraphs 8, 9, 10 or 11 would be inadequate and the Company
would suffer irreparable damages as a result of such breach.  In recognition of this fact, the Executive
agrees that, in the event of such a breach, in addition to any remedies at law,
the Company, without posting any bond, and without the necessity of proof of
actual damages, shall be entitled to obtain injunctive relief restraining any
threatened or further breach, or any other equitable remedy which may then be
available.

13.        Indemnification.

a.             The
Company shall defend, indemnify and hold harmless the Executive to the fullest
extent of the law from and against any and all loss, liability, damage or
expense (including reasonable attorney’s fees and expenses incurred in
connection with the investigation, defense or negotiation of a settlement
thereof or otherwise) (collectively, “Losses”) arising from any claim or
threatened claim by any third party with respect to, or in any way related to,
the Company, this Agreement or the Executive’s services hereunder (collectively
“Claim”).  The Executive shall give the
Company prompt notice of any such Claim known to him, and the Company, in its
sole discretion, then may take such action as it deems advisable to defend the
Claim on behalf of the Executive.  (The
failure by the Executive to give such a prompt notice shall not affect the
right to indemnification except to the extent the Company is materially
prejudiced thereby.)  The Company shall
have the sole and exclusive right to use counsel of its own choosing, shall
control the defense of any such Claim in all respects, and shall have the sole
and exclusive right to negotiate and settle any such Claim on behalf of the
Executive.  Notwithstanding the
foregoing, the Executive shall have the right to employ his own legal counsel
in defense of any Claim, with the reasonable fees and expenses of such counsel
to be paid by the Company, provided that the Company determines that there
exists a conflict of interest by reason of having common counsel in any such
Claim.  The Executive shall cooperate
fully with the Company and its counsel in all respects in connection with the
defense of any Claim and in any attempt made to settle the matter.  Such indemnification shall be deemed to apply
solely to (a) the amount of the judgment, if any, against the Executive, (b)
any sums paid by the Executive in settlement, and (c) the expenses (including
reasonable attorneys’ fees and expenses) incurred by the Executive in
connection with its defense. 
Notwithstanding anything to the contrary contained herein, the Executive
shall not be entitled to indemnification for Losses under this Paragraph 13 for
any claim or allegation made by the Company against the Executive arising out
of the Executive’s breach of this Agreement; or if it is adjudicated by
a court of competent jurisdiction that any Losses were the direct result of the
gross negligence or willful misconduct by the Executive and, if so proven, the
Executive shall reimburse the Company for the costs of defense incurred by the
Company.

 10
 

 

b.             Notwithstanding
anything elsewhere to the contrary, this Paragraph 13 shall survive the
termination of this Agreement and shall survive any termination of the
Executive’s employment.

14.        No Mitigation; No Set Off.    In the event of any termination of
employment hereunder, the Executive shall be under no obligation to seek other
employment and there shall be no offset against any amounts due the Executive
under this Agreement on account of any remuneration attributable to any
subsequent employment that the Executive may obtain.

15.        Arbitration.    Any dispute between the parties arising out
of this Agreement, including but not limited to any dispute regarding any
aspect of this Agreement, its formation, validity, interpretation, effect,
performance or breach, or the Executive’s employment (“Arbitrable Dispute”)
shall be submitted to arbitration in the City of Boston, pursuant to the Rules
of the American Arbitration Association, before a single experienced employment
arbitrator who is either licensed to practice law in the Commonwealth of
Massachusetts, or is a retired judge. 
The arbitrator in any Arbitrable Dispute shall not have authority to
modify or change this Agreement in any respect. 
The Company shall be responsible for payment of the amount of the fees
of the American Arbitration Association and the arbitrator.  In the event the arbitrator specifically
finds that any claim or defense of either party is unreasonable, he may in his
discretion direct that reasonable legal fees of the prevailing party be paid by
the non-prevailing party.  The arbitrator’s
decision and/or award will be fully enforceable and subject to entry of
judgment by any court of competent jurisdiction.  Notwithstanding the provisions of this
Paragraph 15, the Company may, at its sole discretion seek appropriate
injunctive relief for the Executive’s breach of Paragraphs 8, 9, 10 or 11 in
the Courts of the Commonwealth of Massachusetts and the United States District
Court for the District of Boston.  The
Executive hereby consents to the jurisdiction and venue of such courts for all
such controversies.

16.        Miscellaneous.

a.             Governing Law.  
This Agreement and all rights and obligations hereunder shall be
governed by, and construed in accordance with, the laws of the Commonwealth of
Massachusetts, without regard to conflicts of laws principles thereof.

b.             Entire Agreement/Amendments.     This
Agreement contains the entire understanding of the parties with respect to the
employment of the Executive by the Company. 
There are no restrictions, agreements, promises, warranties, covenants
or undertakings between the parties with respect to the subject matter herein
other than those expressly set forth herein. 
This Agreement may not be altered, modified, or amended except by
written instrument signed by the parties hereto.

c.             No Waiver.            The failure of a party to insist
upon strict adherence to any term of this Agreement on any occasion shall not
be considered a waiver of such party’s rights or deprive such party of the
right thereafter to insist upon strict adherence to that term or any other term
of this Agreement.

d.             Severability.   In the event that any one or more of the
provisions of this Agreement shall be or become invalid, illegal or unenforceable
in any respect, the 

 11
 

validity,
legality and enforceability of the remaining provisions of the Agreement shall
not be affected thereby.

e.             Assignment.   This Agreement, and all of the Executive’s
rights and duties hereunder, shall not be assignable or delegable by the
Executive. Any purported assignment or delegation by the Executive in violation
of the foregoing shall be null and void ab
initio and of no force and effect. This Agreement may be assigned by
the Company solely to a person or entity which is an affiliate or a successor
in interest to substantially all of the business operations of the Company.
Upon such assignment, the rights and obligations of the Company hereunder shall
become the rights and obligations of such affiliate or successor person or
entity.

f.              Successors; Binding Agreement. 
This Agreement shall inure to the benefit of and be binding upon the
personal or legal representatives, executors, administra­tors, successors,
heirs, distributees, devisees and legatees of the Parties.  The Company shall require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place.  As used in
this Agreement, “Company” shall mean the Company and any successor to its
business and/or assets, which assumes and agrees to perform this Agreement by
operation of law, or otherwise.  If the
Executive should die while any accrued amount would still be payable to him
hereunder had he continued to live, the accrued amounts, with the exception of
any life, disability or health insurance premiums, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to his
devisee, legatee or other designee, or if there is no such designee, to his
estate.

g.             Notice.  For the purpose of
this Agreement, notices and all other communications provided for in the
Agreement shall be in writing and shall be deemed to have been duly given when
delivered by hand or overnight courier or three days after it has been mailed
by United States registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth below in this Agreement, or to
such other address as either party may have furnished to the other in writing
in accordance herewith, except that notice of change of address shall be
effective only upon receipt.

If to the Company:

Andover Medical, Inc.

510 Turnpike Street, Ste.
204

North Andover, MA 01845

Attn:
Edwin A. Reilly

With a copy to:

Phillips Nizer LLP

666 Fifth Avenue

New York, New York
10103-0084

Attn:
Elliot H. Lutzker, Esq.

Facsimile: (212)
262-5152

 12
 

 

If to Executive:

Jim Shanahan

Andover Medical, Inc.

510 Turnpike Street, Ste.
204

North Andover, MA 01845;
and

8 Wyndmere Drive

Boxford, MA 01921

(or Executive’s most
recent address set forth in the Company’s personnel record);

h.             Executive Representations.                 The Executive hereby represents to the
Company that the execution and delivery of this Agreement by the Executive and
the Company and the performance by the Executive of Executive’s duties
hereunder shall not constitute a breach of, or otherwise contravene, the terms
of any employment agreement or other agreement or policy to which the Executive
is a party or otherwise bound.  The
Executive further represents that he has consulted with his own independent
counsel with respect to the negotiation of, and his decision to enter into,
this Agreement and acknowledges that he understands the meaning and effect of
each and every term and provision contained herein.

i.              Prior Agreements.    This Agreement supersedes all prior agreements
and understandings (including verbal agreements) between the Executive and the
Company regarding the terms and conditions of the Executive’s employment with
the Company.

j.              Withholding Taxes.            The
Company shall withhold from any amounts payable under this Agreement such
Federal, state and local taxes as may be required to be withheld pursuant to
any applicable law or regulation.

k.            Counterparts. 
This Agreement may be signed in counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were
upon the same instrument.

 13
 

 

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

	
  JIM SHANAHAN

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ JIM SHANAHAN

  	
   

  	
  Dated:

  	
  9/11/07

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ANDOVER MEDICAL,
  INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ EDWIN A.
  REILLY

  	
   

  	
  Dated:

  	
  9/11/07

  	
   

  
	
  By:

  	
  Edwin A. Reilly

  	
   

  	
   

  
	
  Title:

  	
  Chief Executive Officer

  	
   

  	
   

  

 

 14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]