Document:

Exhibit 10.1

 

October 17, 2005

 

Dr. David M. Lederman

P.O. Box 426

Marblehead, Massachusetts 01945

 

Dear David,

 

This letter will confirm in writing the terms that we have reached
concerning your commencement of work on a consulting basis as a Senior Advisor
to ABIOMED, Inc. (the “Company”) following your decision to retire from active
employment with the Company, all as approved by the Compensation Committee of
the Company’s Board of Directors on August 11, 2004.

 

In particular, you and the Company agree as follows:

 

1. Employment and Board Membership Termination Dates.  Your services as an employee of the Company
terminated as of the close of business on April 1, 2005 (the “Employment
Termination Date”).  The termination of
your employment did not affect the status of your position as the Chairman of
the Board of Directors of the Company. 
Your service as Chairman and a member of the Board of Directors
terminated, as provided in your letter of resignation, on June 10, 2005.

 

2. Consulting Services. 
Beginning on the Employment Termination Date, you have been engaged on a
consulting basis by the Company as a Senior Advisor, which engagement will
continue for a period of four years (until the fourth anniversary of the
Employment Termination Date).  You will
receive fixed annual compensation of $200,000 per year, payable in equal
monthly installments, during this four year consulting period (subject to
appropriate tax and other withholdings). Notwithstanding the foregoing, no
payment shall be made to you until October 2, 2005. As a Senior Advisor to the
Company, you will provide such consulting services as may be mutually agreed
upon between you and the Company.  The
Company may terminate your consulting relationship with the Company only for
cause.  Termination by the Company “for
cause” shall mean termination by the Company following your commission of a
felony (other than through vicarious liability or involving a vehicular
offense) or a crime involving fraud or embezzlement against the Company, or
your intentionally taking any action that is materially and demonstrably
injurious to the Company which, if subject to cure, is not cured within thirty
(30) days after receipt by you of written notice from the Company specifying
that the Company intends to terminate your services as a Senior Advisor for
cause and the facts and circumstances that the Company believes constitute “cause.”

 

3. Vacation.  You confirm
that the Company had paid to you any accrued and unused vacation pay through
the Employment Termination Date in accordance with the Company’s standard
policies.  This payment was made minus
appropriate tax and other withholdings.

 

 

4. Medical and Dental Insurance. 
From and after the Employment Termination Date the Company will continue
to provide you medical and dental insurance (on the same basis as the Company’s
senior executives) without charge to you until such time as you are eligible
for full Medicare coverage.  In the event
of your death, although your estate will not be entitled to any further
compensation for your consulting beyond the compensation that had been earned
at the time of your death, the Company will continue to provide such medical
and dental insurance without charge to your wife until such time as she is
eligible for full Medicare coverage.

 

All other employee benefits ceased on the Employment Termination Date,
except to the extent provided in this letter agreement.

 

5. Stock Options.  Any
non-qualified (non-statutory) options that you hold to purchase shares of the
Company’s Common Stock pursuant to the Company’s stock option plans will
continue to vest while you are a consultant to the Company.

 

6. Legal Representation. 
This agreement is a legally binding document and your signature will
commit you to its terms.  You acknowledge
that you have been advised by the Company to discuss all aspects of this
agreement with an attorney before signing it, that you have carefully read and
fully understand all of the provisions of this agreement, and that you are
knowingly and voluntarily entering into this agreement.

 

7. Entire Agreement.  This
letter constitutes the entire agreement regarding its subject matter and
supersedes any previous agreements or understandings between us related to such
subject matter. This letter will not affect any of your rights or any of the
Company’s obligations under your Indemnification Agreement with the Company or
any of the Company’s rights or your obligations under your Confidentiality and
Non-Competition Agreement in favor of the Company, dated October 17, 2005, each
of which will continue in full force and effect in accordance with its
terms.  In signing this agreement, you
are not relying upon any oral promises or representations made by anyone at or
on behalf of the Company.

 

8. Governing Law.  This
agreement will be interpreted and enforced under the laws of the Commonwealth
of Massachusetts, without regard to conflict of law principles.

 

Please indicate your agreement to the terms of this Agreement by
signing and returning to me a copy of this letter on or before October 31,
2005.

 

All of us at the Company thank you for your tremendous contributions to
the Company in the past as Founder, Chief Executive Officer and leader.   We look forward to continuing to have the
benefit of your wise advice and counsel in your new role as Senior Advisor.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Michael R. Minogue

  
	
   

  	
  Michael R. Minogue

  
	
   

  	
  Chairman, President and Chief Executive

  Officer

  

 

 

I understand and agree completely to the foregoing, and sign it
knowingly and voluntarily under seal on the date written below.

 

	
  /s/ David M. Lederman

  	
   

  	
  October 17, 2005

  	
   

  
	
  David M. Lederman

  	
  Date

  

 

 

ABIOMED,
INC.

 

CONFIDENTIALITY
AND

NON-COMPETITION
AGREEMENT

(APPENDIX TO CONSULTING AGREEMENT)

 

IN CONSIDERATION of my continued consultancy with
ABIOMED, Inc., and/or any one or more of its subsidiaries or affiliates
(collectively the “Company”), I
hereby agree as follows:

 

1.   Inventions
and other Developments.

 

1.1   I hereby assign and transfer to the Company
all of my right, title and interest in and to any and all Developments. The
term “Developments” shall mean all ideas, inventions, discoveries, designs,
algorithms, or concepts (collectively, “Concepts”), whether or not patentable
or copyrightable, that meet both
of the following criteria:

 

(a)
Such Concept is primarily applicable in the general field of cardiovascular
devices and/or in the specific field of cardiac assist and replacement devices;
and

 

(b)
 Such Concept is or was made, conceived,
created, developed, discovered, or invented or reduced to practice, either
individually or jointly with others, during my term as a Senior Advisor to the
Company under that certain letter agreement dated as of October 17, 2005 (“Consulting
Agreement”) to which this Confidentiality and Non-Competition Agreement is an Appendix
or during the period prior thereto in which I was an employee of the Company.

 

1.2   The Company shall have the sole and exclusive
ownership of all Developments (it being understood that such Development must
satisfy the requirements set forth in Section 1.1(a) and must also satisfy the
criteria set forth in Section 1.1(b)) and the sole right to determine the
manner in which they are used. I agree to execute and deliver such other
documents and instruments as the Company may reasonably request to evidence,
perfect, and protect its rights with respect to such Developments. I will
assist the Company in any reasonable manner which it may request to obtain and
enforce for its own benefit and patents, copyrights or trademarks (both in the
United States and in foreign countries) pertaining to the Developments.

 

1.3   The agreement set forth in this Section 1.1
is made upon the sole consideration of my continued service as a Senior Advisor
to the Company. I understand that I will not be entitled to compensation of any
kind on account of any Developments apart from or in addition to my
compensation as described under the Consulting Agreement to which this
Agreement is an Appendix.

 

 

1.4   I understand that my obligations under
Section 1.2 will continue after the termination of my service as a consultant
to the Company. I further understand that if I am requested to perform any
obligations under Section 1.2, I shall receive for such performance a
reasonable per diem fee, as well as reimbursement of any expenses incurred at
the request of the Company.

 

2. Confidential Information.

 

2.1   I recognize that my relationship with the
Company is one of high trust and confidence by reason of my access to and
contact with the trade secrets and confidential and proprietary information of
the Company. I will not disclose to anyone outside of the Company or use for my
own benefit or for that of others, either during or at any time after my
consultancy with the Company, any confidential or proprietary information
regarding the Company or its business operations (collectively “Confidential
Information”), including, without limitation, trade secrets, data, computer
programs, know-how, industrial and commercial process, financial information,
marketing plans and customer lists.

 

2.2   My undertakings and obligations under this
Section 1.4 will not apply, however, to any Proprietary Information which:
(a) is or becomes generally known to the public through no action on my
part, (b) is generally disclosed to third parties by the Company without
restriction on such third parties, or (c) is approved for release by
written authorization of the Board of Directors of the Company.

 

3.   Other
Obligations.

 

I acknowledge that the Company from time to time may
have agreements with other persons or with the U.S. Government, or agencies
thereof, which impose obligations or restrictions on the Company regarding
inventions made during the course of work under such agreements or regarding
the confidential nature of such work. I agree to be bound by all such
obligations and restrictions which are made known to me and to take all action
necessary to discharge the obligations of the Company under such agreements.

 

4.   Competition.

 

4.1   During my consultancy with the Company, I
will not, directly or indirectly, without the express written consent of the
Company:

 

(a) own, engage in, conduct, manage,
operate, participate in, be employed by or be connected in any manner
whatsoever with any business competitive with the business conducted by the
Company as of the date of this Agreement;

 

(b) employ or attempt to employ any
employee of the Company, or induce any employee of the Company to leave the
Company’s employ (it being understood that I shall not be precluded from hiring
former employees of the Company); or

 

 

(c) become associated with in any
capacity, or solicit or sell to, any customer of the Company, products, systems
or solutions which overlap the business conducted by the Company as of the date
of this Agreement.

 

4.2   The foregoing restrictions shall not prevent
my investment in securities of publicly held corporations in the management of
which I do not participate.

 

5.   General
Provisions.

 

5.1   This Agreement supersedes all prior
agreements, written or oral, between me and the Company relating to the subject
matter of this Agreement. This Agreement may not be modified, changed or
discharged in whole or in part, except by an agreement in writing signed by me
and the Company. I agree that any change or changes in my advisory duties under
the Consulting Agreement, to which this Agreement is an Appendix, after the
signing of this Agreement shall not affect the validity or scope of this
Agreement.

 

5.2   This Agreement will be binding upon my heirs,
executors and administrators and will inure to the benefit of the Company and
its successors and assigns.

 

5.3   No delay or omission by the Company in
exercising any right under this Agreement will operate as a waiver of that or
any other right. A waiver or consent given by the Company on any one occasion
is effective only in that instance and will not be construed as a bar to or
waiver of any right on any other occasion.

 

5.4   I expressly consent to be bound by the
provisions of this Agreement for the benefit of the Company, its successors,
assigns, nominees and any subsidiary or affiliate thereof to whose consultancy
I may be transferred without the necessity that this Agreement be resigned at
the time of such transfer.

 

5.5   In the event that any provision of this
Agreement would be held to be invalid or unenforceable for any reason unless
narrowed by construction, this Agreement shall be construed as if such invalid
or unenforceable provision had been so drawn as not to be invalid or
unenforceable. If, notwithstanding the foregoing, any provision of this
Agreement shall be held to be invalid or unenforceable, such unenforceability
shall attach only to such provision and shall not affect or render invalid or
unenforceable any other provisions of this Agreement.

 

5.6   This Agreement shall be governed by and
interpreted, construed and enforced in accordance with the laws of the
Commonwealth of Massachusetts.

 

 

	
  Date: 

  	
  October 17, 2005

  	
   

  	
   

  	
  /s/ David M. Lederman

  
	
   

  	
   

  	
  David M. Lederman,
  Ph.D.EXHIBIT 10.1

 

CUTTER &
BUCK

1997
STOCK INCENTIVE PLAN

 

1.                                       Purposes
of the Plan.  The purposes of this
1997 Cutter & Buck Stock Incentive Plan (the “Plan”) are to attract
and retain the best available personnel for positions of substantial
responsibility with Cutter & Buck Inc. (the “Company”), to provide
additional incentive in the form of stock options or shares of restricted
Common Stock of the Company (the “Benefits”) to employees of the Company or any
parent or subsidiary of the Company which now exists or hereafter is organized
or acquired by or acquires the Company, and to promote the success of the
business.

 

2.                                       Eligibility.  Any employee, officer or consultant or
advisor of the Company or any parent or subsidiary of the Company may receive
Benefits under the Plan.

 

3.                                       Administration.  The Plan shall be administered by the
Compensation Committee of the Board of Directors of the Company, or a
subcommittee thereof (the “Committee”). 
The Committee shall either (i) consist solely of two or more
non-employee directors of the Company as defined in Rule 16b-3 under the
Securities Exchange Act of 1934, as amended, or (ii) cause any director
who is not a non-employee director to abstain from any action by the Committee
related to granting Benefits to executive officers of the Company.  The Board of Directors may also appoint one
or more separate committees of the Board of Directors who may administer the
Plan with respect to employees who are not executive officers of the Company.

 

4.                                       Effective
Date and Termination of Plan. 
Subject to shareholder approval, the effective date of the Plan is July 31,
1997.  The Plan shall terminate when all
shares of stock subject to Benefits granted under the Plan shall have been
acquired or on June 10, 2007, whichever is earlier, or at such earlier
time as the Board of Directors may determine. 
Termination of the Plan will not affect the rights and obligations
arising under Benefits granted under the Plan and then in effect.

 

5.                                       Shares
Subject to the Plan.  The stock
subject to Benefits authorized to be granted under the Plan shall consist of
525,000 shares of the Company’s Common Stock, no par value, or the number and
kind of shares of stock or other securities which shall be substituted or
adjusted for such shares as provided in Section 8.  All or any shares of stock subject to
Benefits which for any reason terminate may again be made subject to Benefits
under the Plan.

 

6.                                       Grant,
Terms and Conditions of Options. 
Incentive stock options as defined in Section 422 of the Internal Revenue
Code of 1986, as amended, and non-qualified stock options may be granted by the
Committee at any time and from time to time prior to the termination of the
Plan to those employees of the Company or any parent or subsidiary of the
Company who, in the Committee’s judgment, are largely responsible through their
judgment, interest, ability and special efforts for the successful conduct of
the Company’s

 

 

operations.  However, no participant shall be granted
options in any year to purchase more than 75,000 shares of the Company’s Common
Stock as adjusted as provided in Section 8.

 

No participant shall have
any rights as a shareholder of the Company with respect to any shares of stock
underlying any option granted hereunder until those shares have been issued.  Each option shall be evidenced by a written
stock option agreement which will expressly identify the option as an incentive
stock option or as a non-qualified stock option.  Furthermore, the grant of an incentive option
pursuant to the Plan shall in no way be construed as an alternative to the
right of an optionee to purchase stock pursuant to any present or future grant
of a non-qualified option under any of the Company’s current or future stock
option plans.  Options granted pursuant
to the Plan need not be identical but each option is subject to the terms of
the Plan and is subject to the following terms and conditions:

 

6.1                                 Price.  The exercise price of each option granted
under the Plan shall be established by the Committee.  The exercise price may be paid as determined
by the Committee.

 

6.2                                 Duration
and Exercise or Termination of Option. 
Each option granted under the Plan shall be exercisable in such manner
and at such times as the Committee shall determine.  Each option granted must expire within a
period of ten (10) years from the grant date.

 

6.3                                 Transferability
of Options.  Each option shall be
transferable only by will or the laws of descent and distribution except and
unless the option provides for additional rights to transfer.

 

6.4                                 Other
Terms and Conditions.  Options may
also contain such other provisions, which shall not be inconsistent with any of
the foregoing terms, as the Committee shall deem appropriate.  No option, however, nor anything contained in
the Plan shall confer upon any participant any right to continue in the Company’s
employ or service nor limit in any way the Company’s right to terminate his or
her employment or service at any time.

 

7.                                       Grant,
Terms and Conditions of Restricted Stock. 
The Committee may grant shares of restricted Common Stock of the Company
with such terms and conditions as may be determined in the sole discretion of
the Committee.  Grants of shares of
restricted stock shall be made at such cost as the Committee shall determine
and may be issued for no monetary consideration, subject to applicable state
law.  Shares of restricted stock shall be
issued and delivered at the time of the grant or as otherwise determined by the
Committee, but may be subject to forfeiture until provided otherwise in the
applicable restricted stock agreement. 
Each certificate representing shares of restricted stock shall bear a
legend referring to the risk of forfeiture of the shares and stating that such
shares are nontransferable until all restrictions have been satisfied and the
legend has been removed.  At the
discretion of the Committee, the grantee may or may not be entitled to 

 

2

 

full voting and dividend
rights with respect to all shares of restricted stock from the date of
grant.  No participant shall be granted
more than 75,000 shares of restricted stock of the Company in any year, as
adjusted as provided in Section 8.

 

8.                                       Adjustment
Upon Changes in Capitalization/Change in Control.  The number and kind of shares of Company
stock subject to Benefits under the Plan shall be appropriately adjusted along
with a corresponding adjustment in the option exercise price, if applicable, to
reflect any stock dividend, stock split, split-up, a declaration of a
distribution payable in a form other than Common Stock in an amount that has a
material effect on the price of Common Stock or any combination or exchange of
shares, however accomplished.   An
appropriate adjustment shall also be made with respect to the aggregate number
and kind of shares available for grant under the Plan.  Adjustments, if any, and any determinations
or interpretations, including any determination of whether a distribution has a
material effect on the price of Common Stock, made by the Committee shall be
final, binding and conclusive.  If the
Company or the shareholders of the Company enter into an agreement to dispose
of all or substantially all of the assets or shares by means of a sale, a
reorganization, a liquidation, or otherwise, all options shall become
immediately exercisable with respect to the full number of shares subject to
those options and all restrictions on any shares of restricted stock granted
under the Plan shall be immediately removed.

 

9.                                       Withholding.  To the extent required by applicable federal,
state, local or foreign law, a participant shall make arrangements satisfactory
to the Company for the satisfaction of any withholding tax obligations that
arise pursuant to Benefits granted under the Plan.  The Company shall not be required to issue
shares until such obligations are satisfied. 
The Committee may (but shall not be required to) permit these
obligations to be satisfied by having the Company withhold a portion of the
shares of stock that otherwise would be issued to the participant or by
delivering shares previously owned by the participant.

 

10.                                 Amendment
and Termination.  The Board of
Directors may amend or terminate the Plan as desired, without further action by
the Company’s shareholders, except to the extent required by applicable law.

 

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