Document:

Amendment to Executive Employment Agreement

 EXHIBIT 10.1 
 EXECUTION VERSION 
 AMENDMENT TO 

EXECUTIVE EMPLOYMENT AGREEMENT 
 OF WILLIAM L. HUNTER, M.D. 
 This amendment to the Executive Employment
Agreement (“Agreement”) dated April 23, 2004, between William L. Hunter, M.D. (“Employee”) and Angiotech Pharmaceuticals, Inc. (“Angiotech”) is effective as of, and only upon, closing of the contemplated
recapitalization transaction with Angiotech’s 7.75% Senior Subordinated Note Holders (“Transaction”) currently anticipated to be April 28, 2011. 
 WHEREAS, Section 7.8 of the Agreement provides that the Agreement may be amended by entering into a written amendment signed by the parties; 

WHEREAS, “Recapitalization Support Agreement” shall mean an agreement dated as of October 29, 2010, pursuant to which
certain 7.75% Senior Subordinated Noteholders agree with Angiotech and certain subsidiaries thereof to complete the Transaction; and 
 WHEREAS, the Employee and Angiotech wish to amend the Agreement as described below. 
 THEREFORE, it is agreed as follows: 
  

	1.	None of the following will constitute or result in, or be deemed to constitute or result in, a “Change of Control” under the Agreement or the Executive Change
of Control Agreement attached as Exhibit C to the Agreement (“Change of Control Agreement”): (i) Angiotech entering into any agreement or agreements to effect the Transaction, (ii) the granting of shareholder approval of the
Transaction, (iii) the closing of the Transaction and appointment of the new board of directors; or (iv) any subsequent change of shareholdings among the parties to the Recapitalization Support Agreement or the entering into of a voting or
other agreement among such parties in respect of their shareholdings. 

  

	2.	Paragraph 3.3 of the Agreement is deleted in its entirety and replaced with the following: 

“3.3. Stock Options and Other Equity-Based Awards. The Employee shall be eligible to receive options to
purchase shares of the common stock of the Company, and to receive other equity-based incentives, as determined by the Board from time to time. The terms and conditions of such options and equity-based incentives shall be governed by the stock
option plan or other equity-based incentive plan (each, a “Plan”) applicable to such options or equity-based incentives (each, an “Award”), and by the agreements between the Company and the Employee in respect of such Awards
(“Award Agreements”). In the event a Change of Control occurs, all Awards shall become vested and, subject to paragraph 4.4(d), shall remain exercisable through the last day of the original

 
term. If there is a conflict between the terms of this Agreement and the terms of any Plan or Award Agreement, this Agreement will prevail and govern unless prohibited by applicable laws or
regulatory requirements, in which case the terms of such Plan or Award Agreement will prevail and govern to the extent required by such laws or regulatory requirements.” 

 

	3.	Paragraph 4.4(d) of the Agreement is deleted in its entirety and replaced with the following: 

 

	 	(d)	“Stock Options and other Equity-Based Awards. If the Employee holds any Awards which are not vested as of the Termination Date in accordance with the provisions of
the applicable Plan or Award Agreement, then, as of the Termination Date, each such Award shall be fully vested and shall remain exercisable until the earlier of: (i) the one year anniversary of the Termination Date; and (ii) the last day
of the original term of the Award; provided, however, that if the stock which may be obtained on exercise of any such Award is not listed on the NASDAQ or Toronto Stock Exchange on the Termination Date, then each such Award shall remain exercisable
until the earlier of: (i) the one year anniversary of the underlying stock becoming publicly tradable or listed on a public exchange; or (ii) the last day of the original term of the Award.” 

 

	4.	The Employee will not exercise, or seek to exercise, any of his rights under paragraph 4.5 of the Agreement until at least one year after the date of closing of
the Transaction; 

  

	5.	Paragraph 3 of the Change of Control Agreement is deleted in its entirety and replaced with the following: 

 

	 	“3.	Rights Upon Termination Due to Change of Control – In addition to any other rights the Employee may have against the Company, if at the time of a Change of
Control or within twelve (12) months after the occurrence of a Change of Control, either: 

  

	 	(a)	the Employee voluntarily resigns his employment for Good Reason; or 

  

	 	(b)	the Company terminates the Employee’s employment for any reason; 

 then the Employee shall, subject to the terms and conditions of Section 4.4 of the Executive Employment Agreement, be entitled to the payments and benefits specified in Section 4.4. of that
Agreement.” 

  
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	6.	Except as set out herein, all other terms and conditions of the Agreement shall remain unchanged. 

TO EVIDENCE THEIR AGREEMENT the parties have executed this Agreement on the dates appearing below. 

 

					
	 SIGNED, SEALED AND DELIVERED by

WILLIAM L. HUNTER, M.D. in the
 presence
of:
	 	 )
 )
 )
	 	
		 	)	 	
	 /s/ Estelle de Jager
	 	)	 	
	(Signature)	 	)	 	
		 	)	 	 /s/ William L. Hunter, M.D.

	 Estelle de Jager
	 	)	 	WILLIAM L. HUNTER, M.D.
	(Print Name)	 	)	 	
		 	)	 	
	 3228 Mariner Way, Coquitlam
	 	)	 	April 5, 2011
	(Address)	 	)	 	
		 	)	 	
	 Executive Assistant
	 	)	 	
	(Occupation)	 		 	

  

			
	ANGIOTECH PHARMACEUTICALS, INC.
		
	By:	 	
	
	 /s/ Tammy Neske

	Authorized Signatory
		
	Date:	 	 March 29, 2011

  
 - 3 -Form of Amendment to Executive Employment Agreement

 EXHIBIT 10.2 
 EXECUTION VERSION 
 AMENDMENT TO 

EXECUTIVE EMPLOYMENT AGREEMENT 
 This amendment to the Executive Employment Agreement (“Agreement”), dated
[                    ], between
[                    ] (“Executive”) and Angiotech Pharmaceuticals (US), Inc. (“Angiotech”) is effective as of, and only
upon, implementation of the contemplated recapitalization transaction with Angiotech’s 7.75% Senior Subordinated Note Holders (“Transaction”) currently anticipated to be April 28, 2011. 

WHEREAS, Section 25.2 of the Agreement provides that the Agreement may be amended by entering into a written amendment signed by the
parties; and 
 WHEREAS, Angiotech and the Executive desire to document their agreement that none of entering into, shareholder
approval of, nor consummation of, the Transaction shall constitute a “Change in Control” within the meaning of the Agreement; and 
 WHEREAS, the Executive and Angiotech desire to amend the Agreement as described below; 
 WHEREAS, “Recapitalization Support Agreement” shall mean an agreement dated as of October 29, 2010, pursuant to which certain 7.75% Senior Subordinated Noteholders agree with Angiotech and
certain subsidiaries thereof to complete the Transaction. 
 NOW, THEREFORE, the Executive hereby agrees that none of the
following will constitute or result in, or be deemed to constitute or result in a “Change of Control” within the meaning of the Agreement: (i) Angiotech entering into any agreement or agreements to effect the Transaction,
(ii) the granting of shareholder approval of the Transaction, (iii) the closing of the Transaction and appointment of the new board of directors; or (iv) any subsequent change of shareholdings among the parties to the Recapitalization
Support Agreement or the entering into of a voting or other agreement among such parties in respect of their shareholdings. 

AND, THEREFORE, it is hereby further agreed as follows: 
 1. Section 8.3 of the Agreement is amended in its entirety to read as follows: 

8.3 Subject to paragraphs 8.4, 8.5 and 14.7, if the Executive’s employment is terminated, any rights and obligations of the Executive
in respect of any then outstanding stock options or other grants or awards held by the Executive will continue to be governed by the provisions of the applicable agreement, plan, or program referred to in paragraph 8.1. 

2. A new Section 8.4 is added to the Agreement and reads as follows:

8.4 In the event a Change of Control occurs, all stock options and other equity-based incentives shall become vested and, subject to
paragraph 14.7 shall remain exercisable through the last day of the original term. 

 3. The former Section 8.4 is renumbered and becomes 8.5. 

4. Section 14.7 of the Agreement is amended in its entirety to read as follows: 

 

	 	14.7	If the Executive’s employment is terminated by Angiotech for any reason other than for Cause or is terminated by the Executive for Good Reason, Angiotech will:

  

	 	(a)	pay any unpaid Base Salary earned by the Executive up to the Last Day of Employment; 

 

	 	(b)	pay a lump sum amount as severance compensation, equivalent to the total of: 

 

	 	(i)	12 months of Base Salary, and 

  

	 	(ii)	an additional two months of Base Salary for each full year of employment completed by the Executive, 

up to a combined maximum of 24 months of Base Salary;; 
  

	 	(c)	pay a further lump sum amount as compensation for loss of any benefits made available to the Executive or the Executive’s immediate family, including any benefit
coverage under any health, dental, life insurance, disability, or other insurance or employee benefits plan, any contributions to the Executive’s 401(k) plan or other retirement plan, and any other perquisites of employment, including any
automobile allowance, automobile lease, financial or tax planning services, memberships, or otherwise, in the total amount of: 

  

	 	(i)	$24,000, plus 

  

	 	(ii)	an additional $2,000 for each full year of employment completed by the Executive, 

up to a combined maximum of $48,000; 
  

	 	(d)	pay the balance of any payments which may be due to the Executive under the Bonus Plan, including, if applicable, a prorated payment under the Bonus Plan earned in
respect of the fiscal year in which the Executive’s employment is terminated, as and when determined by the Board; 

  
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	 	(e)	if the Executive holds any stock options, stock appreciation rights, restricted stock, restricted stock units, or other equity-based awards, securities or grants under
any equity-based award agreement, plan, or program of Angiotech, which are unsettled or not vested as of the Last Day of Employment in accordance with the provisions of the applicable agreement, plan, or program referred to in paragraph 8.1, then as
of the Last Day of Employment, to the extent not already vested, each such stock option, stock appreciation right, restricted stock, restricted stock unit or other equity-based award, security or grant shall be fully vested and each outstanding
stock option, stock appreciation right, restricted stock, restricted stock unit or other equity-based award, security or grant shall remain exercisable until the earlier of the one year anniversary of Last Day of Employment or the remainder of its
original term; provided, however, that if the underlying stock applicable to any such stock options, stock appreciation rights, restricted stock, restricted stock units or other equity-based awards, securities or grants is not listed
on the NASDAQ or the Toronto Stock Exchange as of the Last Day of Employment then each such stock option, stock appreciation right, restricted stock, restricted stock unit or other equity-based award, security or grant shall remain exercisable
until, or shall only be settled upon, the first to occur of: 

  

	 	(i)	the one year anniversary of the underlying stock becoming publicly tradable or listed on a public exchange or 

 

	 	(ii)	the last day of the original term; 

  

	 	(f)	make any payments due under paragraph 9.3(b) or 10(a); and 

  

	 	(g)	in the case of a Change of Control or in the event any payment, award, benefit, or distribution (or any acceleration of any payment, award, benefit, or distribution)
(each, a “Payment”) made by Angiotech under this Agreement or otherwise to or for the benefit of the Executive is subject to excise tax under Section 4999 of the Code (referred to in this paragraph 14.7(g) as the “Excise
Tax”), and the reduction of Payments payable to the Executive under this Agreement to the maximum amount that could be paid to the Executive without triggering the Excise Tax (“Safe Harbor Cap”) would provide the Executive with a
greater after-tax amount than if such amounts were not reduced, then the amounts payable to the Executive under this Agreement will be reduced to the Safe Harbor Cap (but not below zero), provided that: 

  
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	 	(i)	the reduction of the amounts payable hereunder, if applicable, will be made by first reducing the payments under paragraph 14.7(b) (but not below zero), then by
reducing the payments under paragraph 14.7(c) (but not below zero), then by reducing reducing the payments under paragraph 14.7(d) (but not below zero), and then by eliminating the accelerated vesting of awards under Section 14.7(e), in each
case, any such reduction or elimination shall only be made to the extent necessary to reduce the Payments to the Safe Harbor Cap; and 

  

	 	(ii)	if the reduction or elimination of the Payments described above would not result in a more favourable after tax consequence to the Executive, no amounts payable under
this Agreement will be reduced. 

 5. Section 14.8 of the Agreement is amended in its entirety to read as
follows: “14.8 [Reserved].” 
 6. Section 14.9 of the Agreement is amended in its entirety to read as follows:
“14.9 [Reserved].” 
 7. Section 14.10 of the Agreement is amended in its entirety to read as follows:

 14.10 Before any payments are made or benefits are provided to the Executive under paragraph 14.7(b),
(c) or (e), the Executive will execute and deliver to Angiotech a release in the form attached as Appendix A or in a similar form prepared by Angiotech, and any applicable period to revoke such release will have expired. Provided that the
Executive has executed the release and the applicable revocation period for such period has expired, the payments and benefits described in paragraph 14.7(b), (c) and (e) shall be paid or provided to the Executive on the 30th day following
the Last Day of Employment. If the Executive fails to execute and deliver the release, or if the Executive revokes the release within any applicable revocation period, Angiotech will have no obligation to make any payments or provide any benefits
under paragraph 14.7(b), (c) or (e). 
 8. Section 14.11 of the Agreement is amended in its entirety to read as
follows: 
 14.11 Angiotech’s obligation to make any payments under paragraph 14.7 (b) to
(e) (inclusive) is conditional on the Executive’s ongoing compliance with all applicable post-employment obligations of the Executive under this Agreement, including, without limitation, the Executive’s obligations under Parts 3, 11,
12 and 13. 

  
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 9. All other terms and conditions of the Agreement shall remain unchanged. 

TO EVIDENCE THEIR AGREEMENT the parties have executed this Agreement on the dates appearing below. 

 

					
	 SIGNED, SEALED AND DELIVERED

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	(Print Name of Witness)	 	)	 	
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		 	)	 	
	  
	 	)	 	
	(Date)	 	)	 	
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		 	)	 	
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	ANGIOTECH PHARMACEUTICALS (US), INC.
		
	By:	 	
	  

	Authorized Signatory
		
	Date:	 	  

  
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