Document:

Exhibit 10.3

 

NONQUALIFIED STOCK OPTION AGREEMENT

 

LifeWatch Corp. 2006 Stock Incentive Plan

 

AGREEMENT (“Agreement”),
dated as of                                           ,
2006 by and between LifeWatch Corp., a Delaware corporation (the “Company”),
and [ ∙ ] (the “Participant”).

 

Preliminary Statement

 

The Board of
Directors of the Company (the “Board”) or a committee appointed by the
Board (the “Committee”) to administer the LifeWatch Corp. 2006 Stock Incentive
Plan (the “Plan”), has authorized this grant of a non-qualified stock
option (the “Option”) on                                       ,
2006 (the “Grant Date”) to purchase the number of shares of the Company’s
common stock, par value $.01 per share (the “Common Stock”) set forth
below to the Participant, as an Eligible Employee of the Company or an
Affiliate (collectively, the Company and all Subsidiaries and Parents of the
Company shall be referred to as the “Employer”).

 

Unless
otherwise indicated, any capitalized term used but not defined herein shall
have the meaning ascribed to such term in the Plan. For the convenience of the
Participant, capitalized terms used but not defined herein and defined in the
Plan have been set forth hereto in Exhibit A. A copy of the Plan has
been delivered to the Participant. By signing and returning this Agreement, the
Participant (i) acknowledges having received and read a copy of the Plan and
this Agreement, (ii) agrees to comply with the Plan, this Agreement and all
applicable laws and regulations, (iii) acknowledges that the Company has not
provided any tax advice to the Participant regarding the grant or future
exercise of the Option or the subsequent sale or transfer of shares of Common
Stock issuable hereunder, and (iv) understands that the Participant should consult
with the Participant’s personal financial, accounting and tax advisors
regarding the same to the extent the Participant deems necessary.

 

Accordingly,
the parties hereto agree as follows:

 

1.             Tax Matters. No part
of the Option granted hereby is intended to qualify as an “incentive stock
option” under Section 422 of the Code.

 

2.             Grant of
Option. Subject in all respects to the Plan and the terms and
conditions set forth herein and therein, the Participant is hereby granted an
Option to purchase from the Company [ ∙
] shares of Common Stock, at a price per share of $[ ∙ ], which is the Fair Market Value
of a share of Common Stock on the Grant Date (the “Option Price”). The vesting
of the Option granted under this Agreement shall be conditional upon the
Registration Date occurring prior to the second anniversary of the Grant Date. Notwithstanding
anything herein or in the Plan to the contrary, if the Registration Date does
not occur prior to the second anniversary of the Grant Date, the Option shall terminate
automatically and without any further action, and shall be null, void, cancelled
and of no further force or effect.

 

 

3.             Vesting and Exercise.

 

(a)           General. Subject to the provisions of Sections
3(b), 3(c) and 4 hereof, the Option shall vest and become exercisable as
follows, provided that the Participant has not incurred a Termination
prior to each such vesting date, and provided further that,
for the avoidance of doubt, the Option shall only become vested and exercisable
(if at all) after the occurrence of the Registration Date:

 

	
  Vesting Date

  	
   

  	
  Number of Shares

  	
   

  
	
  First anniversary of the Grant Date or, if
  later, the Registration Date

  	
   

  	
  [ · ]%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Second anniversary of the Grant Date

  	
   

  	
  [ · ]%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Third anniversary of the Grant Date

  	
   

  	
  [ · ]%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fourth anniversary of the Grant Date

  	
   

  	
  [ · ]%

  	
   

  

 

There
shall be no proportionate or partial vesting in the periods prior to each
vesting date and all vesting shall occur only on the appropriate vesting date. To
the extent that the Option has become vested and exercisable with respect to a
number of shares of Common Stock as provided herein, the Option may thereafter
be exercised by the Participant, in whole or in part, at any time or from time
to time prior to the expiration of the Option as provided herein and in accordance
with Sections 6.4(c) and 6.4(d) of the Plan, including, without limitation, by
the filing of any written form of exercise notice as may be required by the
Committee and payment in full of the Option Price multiplied by the number of
shares of Common Stock underlying the portion of the Option exercised. Upon
expiration of the Option, the Option shall be canceled and no longer
exercisable.

 

(b)           Committee Discretion to
Accelerate Vesting.
Notwithstanding the foregoing, the Committee may, in its sole discretion,
provide for accelerated vesting of the Option at any time.

 

(c)           Effect of Detrimental Activity. The provisions of Section 6.4(c)
of the Plan regarding Detrimental Activity shall apply to the Option.

 

4.             Option Term. The term of the Option shall be ten (10) years from the
Grant Date, subject to earlier termination in the event of the Participant’s
Termination as specified in Section 5 hereof; provided, however,
that the Option shall terminate and be of no further force or effect on the
second anniversary of the Grant Date if the Registration Date does not occur prior
to the second anniversary of the Grant Date.

 

5.             Termination.

 

Subject to the terms of the Plan and this
Agreement, the Option, to the extent vested at the time of the Participant’s
Termination, shall remain exercisable as follows:

 

2

 

(a)           Termination due to Retirement. In the event of the
Participant’s Termination by reason of Retirement, the vested portion of the
Option shall remain exercisable until the earlier of (i) ninety (90) days from
the date of such Termination, or (ii) the expiration of the stated term of the
Option pursuant to Section 4 hereof; provided, however, that if
the Participant dies within such ninety (90) day exercise period, any
unexercised Option held by the Participant shall thereafter be exercisable by
the legal representative of the Participant’s estate, to the extent to which it
was exercisable at the time of death, for a period of ninety (90) days from the
date of death, but in no event beyond the expiration of the stated term of the
Option pursuant to Section 4 hereof.

 

(b)           Termination due to Death,
Disability, Retirement.
In the event of the Participant’s Termination by reason of death or Disability,
the vested portion of the Option shall remain exercisable until the earlier of
(i) one (1) year from the date of such Termination, or (ii) the expiration of
the stated term of the Option pursuant to Section 4 hereof.

 

(c)           Termination Without Cause or for
Good Reason. In
the event of the Participant’s involuntary Termination without Cause or for
Good Reason, the vested portion of the Option shall remain exercisable until
the earlier of (i) ninety (90) days from the date of such Termination, or (ii)
the expiration of the stated term of the Option pursuant to Section 4 hereof.

 

(d)           Voluntary Termination. In the event of the
Participant’s voluntary Termination (other than a voluntary termination
described in Section 5(e) hereof), the vested portion of the Option shall remain
exercisable until the earlier of (i) thirty (30) days from the date of such
Termination, or (ii) the expiration of the stated term of the Option pursuant
to Section 4 hereof.

 

(e)           Termination for Cause. In the event of the
Participant’s Termination for Cause or in the event of the Participant’s
voluntary Termination within ninety (90) days after an event that would be
grounds for a Termination for Cause, the Participant’s entire Option (whether
or not vested) shall terminate and expire upon such Termination.

 

(f)            Treatment of Unvested Options
upon Termination.
Any portion of the Option that is not vested as of the date of the Participant’s
Termination for any reason shall terminate and expire as of the date of such
Termination.

 

6.             Restriction on Transfer of Option. No part of the Option shall be
Transferred other than by will or by the laws of descent and distribution and
during the lifetime of the Participant, may be exercised only by the
Participant or the Participant’s guardian or legal representative. In addition,
the Option shall not be assigned, negotiated, pledged or hypothecated in any
way (except as provided by law or herein), and the Option shall not be subject
to execution, attachment or similar process. Upon any attempt to Transfer the
Option or in the event of any levy upon the Option by reason of any execution,
attachment or similar process contrary to the provisions hereof, such transfer
shall be void and of no effect and the Company shall have the right to
disregard the same on its books and records and to issue “stop transfer”
instructions to its transfer agent.

 

3

 

7.             Rights as a Stockholder. The Participant shall have no rights
as a stockholder with respect to any shares covered by the Option unless and
until the Participant has become the holder of record of the shares, and no
adjustments shall be made for dividends in cash or other property,
distributions or other rights in respect of any such shares, except as
otherwise specifically provided for in the Plan.

 

8.             Provisions of Plan Control. This Agreement is subject to all of the
terms, conditions and provisions of the Plan, including, without limitation,
the amendment provisions thereof, and to such rules, regulations and
interpretations relating to the Plan as may be adopted by the Committee and as
may be in effect from time to time. The Plan is incorporated herein by
reference. If and to the extent that this Agreement conflicts or is
inconsistent with the terms, conditions and provisions of the Plan, the Plan
shall control, and this Agreement shall be deemed to be modified accordingly. This
Agreement contains the entire understanding of the parties with respect to the
subject matter hereof (other than any exercise notice or other documents expressly
contemplated herein or in the Plan) and supersedes any prior agreements between
the Company and the Participant with respect to the subject matter hereof.

 

9.             Notices. Any notice hereunder by the Participant shall be given
to the Company in writing and such notice shall be deemed duly given only upon
receipt thereof by the General Counsel of the Company. Any notice hereunder by
the Company shall be given to the Participant in writing and such notice shall
be deemed duly given only upon receipt thereof at such address as the
Participant may have on file with the Company.

 

10.           No
Obligation to Continue Employment. This Agreement is not an agreement of
employment. This Agreement does not guarantee that the Employer will employ the
Participant for any specific time period, nor does it modify in any respect the
Employer’s right to terminate or modify the Participant’s employment or
compensation at any time.

 

11.           Section 409A Compliance. To the extent applicable, the Board or the Committee may at any time
and from time to time amend, in whole or in part, any or all of the provisions
of this Agreement (in a manner determined by the Board or Committee in its sole
discretion) solely to comply with Section 409A of the Code and the regulations
promulgated thereunder, subject to the terms and conditions of the Plan.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

4

 

IN WITNESS
WHEREOF, the parties have executed this Agreement on the date and year first
above written.

 

	
   

  	
  LIFEWATCH CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PARTICIPANT

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  
							

 

5

 

EXHIBIT A

 

The following terms used but not defined in
the Agreement and defined in the Plan have been provided below for the
convenience of the Participant but are qualified in their entirety by the full
text of such terms in the Plan.

 

(a)           “Affiliate” means each of the following:
(a) any Subsidiary; (b) any Parent; (c) any corporation, trade or business
(including, without limitation, a partnership or limited liability company)
which is directly or indirectly controlled 50% or more (whether by ownership of
stock, assets or an equivalent ownership interest or voting interest) by the
Company or one of its Affiliates; (d) any trade or business (including, without
limitation, a partnership or limited liability company) which directly or
indirectly controls 50% or more (whether by ownership of stock, assets or an
equivalent ownership interest or voting interest) of the Company; and
(e) any other entity in which the Company or any of its Affiliates has a
material equity interest and which is designated as an “Affiliate” by
resolution of the Committee; provided that, unless otherwise determined by the
Committee, the Common Stock subject to any Award constitutes “service recipient
stock” for purposes of Section 409A of the Code or otherwise does not subject
the Award to Section 409A of the Code.

 

(b)           “Cause” means with respect to a
Participant’s Termination of Employment or Termination of Consultancy, the
following: (a) in the case where there is no employment agreement, consulting
agreement, change in control agreement or similar agreement in effect between
the Company or an Affiliate and the Participant at the time of the grant of the
Award (or where there is such an agreement but it does not define “cause” (or
words of like import)), termination due to a Participant’s insubordination,
dishonesty, fraud, incompetence, moral turpitude, willful misconduct, refusal
to perform his or her duties or responsibilities for any reason other than
illness or incapacity or materially unsatisfactory performance of his or her
duties for the Company or an Affiliate, as determined by the Committee in its
sole discretion; or (b) in the case where there is an employment agreement,
consulting agreement, change in control agreement or similar agreement in
effect between the Company or an Affiliate and the Participant at the time of
the grant of the Award that defines “cause” (or words of like import), “cause”
as defined under such agreement; provided, however, that with regard to any
agreement under which the definition of “cause” only applies on occurrence of a
change in control, such definition of “cause” shall not apply until a change in
control actually takes place and then only with regard to a termination
thereafter. With respect to a Participant’s Termination of Directorship, “cause”
means an act or failure to act that constitutes cause for removal of a director
under applicable Delaware law.

 

(c)           “Code” means the Internal Revenue Code
of 1986, as amended. Any reference to any section of the Code shall also be a
reference to any successor provision and any Treasury Regulation promulgated
thereunder.

 

(d)           “Committee” means:  (a) with respect to the application of
the Plan to Eligible Employees and Consultants, a committee or subcommittee of
the Board appointed from time to time by the Board, which committee or
subcommittee shall consist of two or more non-employee directors, each of whom
is intended to be, to the extent required by Rule 16b-3 promulgated under
Section 16(b) of the Exchange Act, a “non-employee director” as defined in Rule
16b-3; to

 

6

 

the extent required
by Section 162(m) of the Code for Awards under the Plan to qualify as “performance-based
compensation,” an “outside director” as defined under Section 162(m) of the
Code; and to the extent required by the rules adopted by The Nasdaq Global
Market, an “independent director” as defined under NASD Rule 4200(a)(15) or
such other applicable stock exchange rule; and (b) with respect to the
application of this Plan to Non-Employee Directors, the Board. To the extent
that no Committee exists which has the authority to administer this Plan, the
functions of the Committee shall be exercised by the Board. If for any reason
the appointed Committee does not meet the requirements of Rule 16b-3, Section
162(m) of the Code, or the rules adopted by The Nasdaq Global Market or such
other applicable stock exchange rule, such noncompliance shall not affect the
validity of Awards, grants, interpretations or other actions of the Committee.

 

(e)           “Consultant” means any natural person who is
an advisor or consultant to the Company or its Affiliates.

 

(f)            “Detrimental
Activity”
means:  (a) the disclosure to anyone
outside the Company or its Affiliates, or the use in any manner other than in
the furtherance of the Company’s or its Affiliate’s business, without written
authorization from the Company, of any confidential information or proprietary
information, relating to the business of the Company or its Affiliates that is
acquired by a Participant prior to the Participant’s Termination; (b) activity
while employed or performing services that results, or if known could result,
in the Participant’s Termination that is classified by the Company as a
termination for Cause; (c) any attempt, directly or indirectly, to solicit,
induce or hire (or the identification for solicitation, inducement or hiring of)
any non-clerical employee of the Company or its Affiliates to be employed by,
or to perform services for, the Participant or any Person with which the
Participant is associated (including, but not limited to, due to the
Participant’s employment by, consultancy for, equity interest in, or creditor
relationship with such Person) or any Person from which the Participant
receives direct or indirect compensation or fees as a result of such
solicitation, inducement or hire (or the identification for solicitation,
inducement or hire) without, in all cases, written authorization from the
Company; (d) any attempt, directly or indirectly, to solicit in a competitive
manner any current or prospective customer of the Company or its Affiliates
without, in all cases, written authorization from the Company; (e) the
Participant’s Disparagement, or inducement of others to do so, of the Company
or its Affiliates or their past and present officers, directors, employees or
products; (f) without written authorization from the Company, the rendering of
services for any organization, or engaging, directly or indirectly, in any
business, which is competitive with the Company or its Affiliates, or the
rendering of services to such organization or business if such organization or
business is otherwise prejudicial to or in conflict with the interests of the
Company or its Affiliates provided, however, that competitive activities shall
only be those competitive with any business unit or Affiliate of the Company
with regard to which the Participant performed services at any time within the
two years prior to the Participant’s Termination; or (g) breach of any
agreement between the Participant and the Company or an Affiliate (including,
without limitation, any employment agreement or noncompetition or
nonsolicitation agreement). For purposes of sub-sections (a), (c), (d) and (f)
above, the General Counsel or the Chief Executive Officer of the Company shall
have authority to provide the Participant with written authorization to engage
in the activities contemplated thereby and no other person shall have authority
to provide the Participant with such authorization.

 

7

 

(g)           “Disability” means with respect to a
Participant’s Termination, a permanent and total disability as defined in
Section 22(e)(3) of the Code. A Disability shall only be deemed to occur at the
time of the determination by the Committee of the Disability. Notwithstanding
the foregoing, for Awards that are subject to Section 409A of the Code,
Disability shall mean that a Participant is disabled under Section
409A(a)(2)(C)(i) or (ii) of the Code.

 

(h)           “Disparagement” means making comments or
statements to the press, the Company’s or its Affiliates’ employees,
consultants or any individual or entity with whom the Company or its Affiliates
has a business relationship which could reasonably be expected to adversely
affect in any manner: (a) the conduct of the business of the Company or its
Affiliates (including, without limitation, any products or business plans or
prospects); or (b) the business reputation of the Company or its Affiliates, or
any of their products, or their past or present officers, directors or
employees.

 

(i)            “Disparagement” means making comments or
statements to the press, the Company’s or its Affiliates’ employees,
consultants or any individual or entity with whom the Company or its Affiliates
has a business relationship which could reasonably be expected to adversely
affect in any manner: (a) the conduct of the business of the Company or its
Affiliates (including, without limitation, any products or business plans or
prospects); or (b) the business reputation of the Company or its Affiliates, or
any of their products, or their past or present officers, directors or employees.

 

(j)            “Eligible
Employees”
means each employee of the Company or an Affiliate.

 

(k)           “Exchange
Act” means
the Securities Exchange Act of 1934, as amended. Any references to any section
of the Exchange Act shall also be a reference to any successor provision.

 

(l)            “Fair Market
Value”
means, for purposes of this Plan, unless otherwise required by any applicable
provision of the Code or any regulations issued thereunder, as of any date and
except as provided below, the last sales price reported for the Common Stock on
the applicable date:  (a) as reported on
the principal national securities exchange in the United States on which it is
then traded or The Nasdaq Global Market; or (b) if not traded on any such national
securities exchange or The Nasdaq Global Market, as quoted on an automated
quotation system sponsored by the National Association of Securities Dealers,
Inc. or if the Common Stock shall not have been reported or quoted on such
date, on the first day prior thereto on which the Common Stock was
reported or quoted; or (c) if the Common Stock is not traded, listed or
otherwise reported or quoted, the Committee shall determine in good faith the
Fair Market Value in whatever manner it considers appropriate. For purposes of the grant of any
Award, the applicable date shall be the trading day immediately prior to the
date on which the Award is granted. For purposes of the exercise of any Award,
the applicable date shall be the date a notice of exercise is received by the
Committee or, if not a day on which the applicable market is open, the next day
that it is open.

 

(m)          “Family
Member”
means “family member” as defined in Section A.1.(5) of the general instructions
of Form S-8.

 

8

 

(n)           “Good Reason”
means, with respect to a Participant’s Termination of Employment: (a) in the
case where there is no employment agreement, change in control agreement or
similar agreement in effect between the Company or an Affiliate and the
Participant at the time of the grant of the Award (or where there is such an
agreement but it does not define “good reason” (or words or a concept of like
import)), a voluntary termination due to good reason, as the Committee, in its
sole discretion, decides to treat as a Good Reason termination; or (b) in the
case where there is an employment agreement, change in control agreement or
similar agreement in effect between the Company or an Affiliate and the
Participant at the time of the grant of the Award that defines “good reason”
(or words or a concept of like import), a termination due to good reason (or
words or a concept of like import), as defined in such agreement at the time of
the grant of the Award, and, for purposes of the Plan, as determined by the
Committee in its sole discretion; provided that any definition that is
effective under an employment agreement, change in control agreement or similar
agreement after a change in control shall only be effective for purposes of
this Plan after a change in control.

 

(o)           “Non-Employee
Director”
means a director or a member of the advisory board of the Company or any
Affiliate who is not an active employee of the Company or any Affiliate.

 

(p)           “Parent” means any parent corporation of
the Company within the meaning of Section 424(e) of the Code.

 

(q)           “Participant” means an Eligible Employee,
Non-Employee Director or Consultant to whom an Award has been granted pursuant
to the Plan.

 

(r)            “Performance
Period” has
the meaning set forth in Section 9.1 of the Plan.

 

(s)           “Performance
Share”
means an Award made pursuant to Article IX of the Plan of the right to receive
Common Stock or cash of an equivalent value at the end of a specified
Performance Period.

 

(t)            “Performance
Unit” means
an Award made pursuant to Article X of the Plan of the right to receive a fixed
dollar amount, payable in cash or Common Stock or a combination of both.

 

(u)           “Person” means any individual,
corporation, partnership, limited liability company, firm, joint venture,
association, joint-stock company, trust, incorporated organization,
governmental or regulatory or other entity.

 

(v)           “Registration
Date” means
the date on which the Company sells its Common Stock in a bona fide, firm
commitment underwriting pursuant to a registration statement under the
Securities Act.

 

(w)          Restricted
Stock”
means an Award of shares of Common Stock under the Plan that is subject to
restrictions under Article VII of the Plan.

 

(x)            “Retirement” means a Termination of
Employment or Termination of Consultancy other than a termination for Cause at
or after age 65 or such earlier date after age 50

 

9

 

as may be approved
by the Committee with regard to such Participant, in its sole discretion, at
the time of grant, or thereafter provided that the exercise of such discretion
does not make the applicable Award subject to Section 409A of the Code. With
respect to a Participant’s Termination of Directorship, Retirement means the
failure to stand for reelection or the failure to be reelected on or after a
Participant has attained age 65 or, with the consent of the Board, provided
that the exercise of such discretion does not make the applicable Award subject
to Section 409A of the Code, before age 65 but after age 50.

 

(y)           “Section
162(m) of the Code”
means the exception for performance-based compensation under Section 162(m) of
the Code and any applicable treasury regulations thereunder.

 

(z)            “Section
409A of the Code”
means the nonqualified deferred compensation rules under Section 409A of the
Code and any applicable treasury regulations and other official guidance
thereunder.

 

(aa)         “Securities
Act” means
the Securities Act of 1933, as amended and all rules and regulations
promulgated thereunder. Any reference to any section of the Securities Act
shall also be a reference to any successor provision.

 

(bb)         “Stock
Appreciation Right”
shall mean the right pursuant to an Award granted under Article VII of the Plan.
A Tandem Stock Appreciation Right shall mean the right to surrender to the
Company all (or a portion) of a Stock Option in exchange for an amount in cash
and/or stock equal to the difference between (i) the Fair Market Value on
the date such Stock Option (or such portion thereof) is surrendered, of the
Common Stock covered by such Stock Option (or such portion thereof), and
(ii) the aggregate exercise price of such Stock Option (or such portion
thereof). A Non-Tandem Stock Appreciation Right shall mean the right to receive
an amount in cash and/or stock equal to the difference between (x) the
Fair Market Value of a share of Common Stock on the date such right is
exercised, and (y) the aggregate exercise price of such right, otherwise
than on surrender of a Stock Option.

 

(cc)         “Stock
Option”
means any option to purchase shares of Common Stock granted to Eligible Employees,
Non-Employee Directors or Consultants granted pursuant to Article VI of the
Plan.

 

(dd)         “Subsidiary” means any subsidiary
corporation of the Company within the meaning of Section 424(f) of the Code.

 

(ee)         “Termination” means a Termination of Consultancy,
Termination of Directorship or Termination of Employment, as applicable.

 

(ff)           “Termination
of Consultancy”
means:  (a) that the Consultant is no
longer acting as a consultant to the Company or an Affiliate; or (b) when an
entity which is retaining a Participant as a Consultant ceases to be an
Affiliate unless the Participant otherwise is, or thereupon becomes, a
Consultant to the Company or another Affiliate at the time the entity ceases to
be an Affiliate. In the event that a Consultant becomes an Eligible Employee or
a Non-Employee Director upon the termination of his or her consultancy, unless
otherwise determined by the Committee, in its sole discretion, no Termination
of Consultancy shall be

 

10

 

deemed to occur
until such time as such Consultant is no longer a Consultant, an Eligible
Employee or a Non-Employee Director. Notwithstanding the foregoing, the
Committee may otherwise define Termination of Consultancy in the Award
agreement or, if no rights of a Participant are reduced, may otherwise define
Termination of Consultancy thereafter.

 

(gg)         “Termination
of Directorship”
means that the Non-Employee Director has ceased to be a director of the
Company; except that if a Non-Employee Director becomes an Eligible Employee or
a Consultant upon the termination of his or her directorship, his or her
ceasing to be a director of the Company shall not be treated as a Termination
of Directorship unless and until the Participant has a Termination of Employment
or Termination of Consultancy, as the case may be.

 

(hh)         “Termination
of Employment”
means:  (a) a termination of
employment (for reasons other than a military or personal leave of absence
granted by the Company) of a Participant from the Company and its Affiliates;
or (b) when an entity which is employing a Participant ceases to be an
Affiliate, unless the Participant otherwise is, or thereupon becomes, employed
by the Company or another Affiliate at the time the entity ceases to be an
Affiliate. In the event that an Eligible Employee becomes a Consultant or a Non-Employee
Director upon the termination of his or her employment, unless otherwise
determined by the Committee, in its sole discretion, no Termination of
Employment shall be deemed to occur until such time as such Eligible Employee
is no longer an Eligible Employee, a Consultant or a Non-Employee Director. Notwithstanding
the foregoing, the Committee may otherwise define Termination of Employment in
the Award agreement or, if no rights of a Participant are reduced, may
otherwise define Termination of Employment thereafter.

 

(ii)           “Transfer” means:  (a) when used as a noun, any direct or
indirect transfer, sale, assignment, pledge, hypothecation, encumbrance or
other disposition (including the issuance of equity in a Person), whether for
value or no value and whether voluntary or involuntary (including by operation
of law), and (b) when used as a verb, to directly or indirectly transfer, sell,
assign, pledge, encumber, charge, hypothecate or otherwise dispose of
(including the issuance of equity in a Person) whether for value or for no
value and whether voluntarily or involuntarily (including by operation of law).
“Transferred” and “Transferable” shall have a correlative meaning.

 

11Exhibit 10.4

 

LifeWatch Holding Corporation

 

PERSONAL
AND CONFIDENTIAL

 

December
1, 2006

 

Frederick J. Mindermann

9401 Glen Ridge Drive

Brentwood, TN 37027

 

Dear Mr. Mindermann:

 

This is to confirm
our mutual understanding with respect to your employment by LifeWatch Corp.
(the “Company”), as follows:

 

1.                           Employment;
Authority. The Company hereby agrees to employ you, and you hereby agree to
be employed by the Company, on the terms and conditions set forth in this
letter. You will serve as the President and Chief Executive Officer of the
Company and, at the request of the Company’s Board of Directors and for no
additional compensation, also any or all of its subsidiaries, reporting to the
Company’s Board of Directors (or, as the case may be, its subsidiaries). You
agree to perform such duties and services, and to have such responsibilities,
as the Board of Directors of the Company (or, as the case may be, its
subsidiaries), may, from time to time, assign to you consistent with your
position. You agree that your responsibilities and reporting relationships may
be changed at the discretion of the Board of Directors of the Company, provided,
however, that such change shall not affect your compensation and
benefits as stated in this letter. You hereby represent and warrant to the
Company that you are not now under any contractual obligation to any third
party that is inconsistent with the terms of this letter or that would prevent,
limit or impair in any way your performance of your duties under this letter.

 

2.                           Compensation.
As full compensation for all services provided and duties performed by you
during your employment by the Company under the terms of this letter, you will
be entitled to receive:

 

a.                           Salary.
A base salary (your “Base Salary”) at the rate of $220,000 per annum,
effective as of the date hereof, payable in accordance with the Company’s
normal payroll practices. Except as provided in Section 2.g. of this letter,
salary increases, if any, will be determined at the sole discretion of the
Board of Directors of the Company.

 

b.                          Bonus.
At the discretion of the Board of Directors of the Company, you may also
receive an annual performance based bonus of up to 30% of your Base Salary,
based on your individual performance as well as the financial performance of
the Company relative to targets determined by the Board of Directors, for each
year (or portion thereof) of your service to the Company.

 

 

c.                           Benefits.
During your employment hereunder, you shall be entitled to all benefits
generally available to the Company’s senior executives and for which you may
qualify in accordance with the terms of the applicable plan documents,
inclusive of hospitalization and major medical insurance, health and dental
insurance, life insurance, disability insurance, vacation days (set at 28 days)
and 401(k) plan. In addition, you shall be entitled to a car allowance of $500
per month and a housing allowance of $1,000 per month. All benefits and
perquisites to which you are entitled pursuant to this paragraph are sometimes
referred to herein as your “Benefits”.

 

d.                          Options.
You will be entitled to receive options (“Options”) under the Company’s
2006 Stock Incentive Plan, or any amendments thereto, at the discretion of the
Company’s Board of Directors.

 

e.                           Tax
Reporting. All payments made to you pursuant to this letter (whether
specified in this Section 2 or not) are subject to all applicable tax
withholding by the Company. In addition, you acknowledge and agree that all
payments to be made to you as Base Salary, bonus or otherwise under this letter
shall, to the extent required by law, be reported for all tax purposes as
compensation for services rendered, and you shall not state or claim any
different position in any tax return or report (or any audit thereof).

 

f.                             Insurance
Policy. You shall be covered by the Company’s Directors and Officers
insurance policy as such shall be amended and in effect from time to time.

 

g.                          Financial
Projections. In the event the Company meets or exceeds its first quarter
2007 financial projections and you have complied with and performed all of your
obligations pursuant to this letter, your Base Salary pursuant to Section 2.a.
shall be increased to $250,000 and your housing allowance pursuant to Section
2.c. shall be increased to $1,500 per month.

 

3.                           Expenses.
During your employment hereunder, the Company will reimburse you for your
travel and other expenses incident to your providing services and performing
duties under this letter, in conformity with the Company’s regular policies
from time to time in effect regarding reimbursement of expenses, with the
proviso that such reimbursement will only be made upon presentation of expense
vouchers in such detail as may from time to time as reasonably required by
Company policies.

 

4.                           Term.

 

a.                           The
term of your employment under this letter shall commence on December 1, 2006
and shall continue until December 31, 2009 or such other date as may be
determined in accordance with Section 4.b. below (the “scheduled term”),
unless earlier terminated by reason of death, Disability (as defined below),
termination by you or termination by the Company (with or without Cause (as
defined below)).

 

b.                          At any
time no less than three months prior to the termination of the initial or any
additional term of this letter agreement you or the Company may notify each
other, in writing, of a lack of intention to extend the term of your employment
by the Company under this letter beyond the then current scheduled term, in
which case your employment by

 

2

 

the Company under this
letter shall end upon the expiration of such scheduled term. In the absence of
such notice, at the end of the initial or any such subsequent term, your
employment (and the scheduled term) shall be automatically extended for a
twelve-month period.

 

5.                           Consequences
of Termination.

 

a.                           Death
or Disability. Anything herein to the contrary notwithstanding, if your
employment under this letter is terminated early (i.e., before expiration of
the scheduled term) by reason of your death or your Disability (as defined
below), you (or your estate, as the case may be) shall be entitled to receive
your Base Salary, vested rights (including stock options) and all other
consideration owing to you in respect of your services under this letter
through the date of such termination, but the Company shall have no further
liability or obligation whatsoever to you hereunder.

 

b.                          Termination
without Cause. If your employment under this letter is terminated by the
Company without Cause (as defined in paragraph 6 below): (i) prior to the
expiration of the scheduled term or (ii) within three months following the
occurrence of a Change in Control, and provided that you have not entered into
or accepted an employment position or any other situation or arrangement with
an organization or person or established (together with others) an entity (a)
that engages in telemedicine devices and/or services; (b) with which the
Company or any of its affiliates has an ongoing dispute; (c) which the Company
or any of its affiliates is considering (or considered at any time no less than
12 months prior to the termination of your employment) acquiring or entering
into any other strategic transaction, or (d) otherwise in violation of your
Confidentiality/Non Competition Agreement with the Company, you shall be
entitled in lieu of any other or further compensation of any kind from the
Company (other than your accrued vested rights in any retirement, life
insurance, disability insurance, stock option plan or other pension or benefit
plan of the Company) to receive severance. In the event your employment under
this letter is terminated by the Company without Cause and there has not been a
Change in Control, your severance shall consist of continuation of your Base
Salary, payable in accordance with the Company’s normal payroll practices, and
of your Benefits (to the extent permitted by applicable law and the terms of
any applicable plans, as if you continued as an active employee) for the lesser
of six months or the remaining term of your employment (whether it is the
initial term or any extension thereof). If your employment under this letter is
terminated by the Company without cause within three months following the
occurrence of a Change in Control, your severance shall consist of continuation
of your Base Salary, payable in accordance with the Company’s normal payroll
practices, and of your Benefits (to the extent permitted by applicable law and
the terms of any applicable plans, as if you continued as an active employee)
for a period of twelve months after the date of termination of your employment.

 

c.                           Termination
with Cause. The Company may terminate your employment at any time without
prior notice for Cause (as defined in paragraph 6 below). In the event of such
termination the Company shall (without limiting any right or remedy to which it
may be entitled) be obligated to continue to pay you your Base Salary and
Benefits until the effective date of such termination, but shall have no
further liability or obligation whatsoever to you hereunder (other than your
accrued vested rights in any retirement, life insurance, disability insurance,
stock option plan or other pension or benefit plan of the Company); provided,
that nothing in this provision shall be interpreted so as to limit any Benefits
to which

 

3

 

you or your dependents or
estate are entitled according to the specific terms of any applicable employee
benefit plan, program or practice after such termination of your employment.

 

d.                          Termination
by You. If your employment under this letter is terminated by you prior to
the expiration of the scheduled term the Company shall (without limiting any
right or remedy to which it may be entitled) be obligated to continue to pay
you your Base Salary and Benefits until the effective date of such termination,
but shall have no further liability or obligation whatsoever to you hereunder
(other than your accrued vested rights in any retirement, life insurance,
disability insurance, stock option plan or other pension or benefit plan of the
Company); provided, that nothing in this provision shall be interpreted
so as to limit any Benefits to which you or your dependents or estate are
entitled according to the specific terms of any applicable employee benefit
plan, program or practice after such termination of your employment.

 

e.                           Non-Renewal.
If the Company notifies you of its decision not to extend the scheduled term
beyond the initial or any subsequent term and Cause does not exist at such
time, and provided that you have not entered into or accepted an employment
position or any other situation or arrangement with an organization or person
or established (together with others) an entity (a) that engages in
telemedicine devices and/or services; (b) with which the Company or any of its
affiliates has an ongoing dispute; (c) which the Company or any of its
affiliates is considering (or considered at any time no less than 12 months
prior to the termination of your employment) acquiring or entering into any
other strategic transaction, or (d) otherwise in violation of your
Confidentiality/Non Competition Agreement with the Company, you shall be
entitled in lieu of any other or further compensation of any kind from the
Company (other than your accrued vested rights in any retirement, life
insurance, disability insurance, stock option plan or other pension or benefit
plan of the Company) to receive a continuation of your Base Salary, payable in
accordance with the Company’s normal payroll practices, and of your Benefits
(to the extent permitted by applicable law and the terms of any applicable
plans, as if you continued as an active employee) for two months.

 

Any payment made
under this Agreement in connection with the termination of your employment is
subject to and conditioned upon your execution of a waiver and release in the
form presented to you by the Company that is substantially similar to the one
annexed hereto as Exhibit A and
in conformance with then applicable law.

 

6.                           Certain
Definitions. For purposes of this letter, the following definitions shall
apply:

 

“Cause”
shall be defined to include your commission of any act of dishonesty or fraud
in connection with your employment or the appropriation of any Company funds or
property, including the intellectual property of the Company or of others; your
conviction of any crime or offense involving fraud, embezzlement, theft or
dishonesty or any felony, or the entry of any plea other than “not guilty” to
any such crime, offense or felony; your material violation of any law or rule
applicable to the Company’s business and operations; your material violation
(as determined in the Company’s sole discretion) of any Company policies or any
other policy applicable to the Company whether in the Employee Handbook or
otherwise; and your engaging in

 

4

 

conduct which, in the
Company’s reasonable judgment, is detrimental to its business, good will or
good name.

 

“Change in
Control” means any of the following events:

 

(i)                         any
person or entity is or becomes the Beneficial Owner (as defined in Rule 13d-3
under the Securities Exchange Act of 1934, as amended), directly or indirectly,
of securities of the Company (not including in the securities beneficially
owned by such person any securities acquired directly from the Company or its
affiliates) representing 50% or more of the combined voting power of the
Company’s then outstanding voting securities, other than upon the occurrence of
an Excluded Transaction, as such term is defined below;

 

(ii)                      there is
consummated a merger or consolidation of the Company or any direct or indirect
subsidiary of the Company with any other corporation, other than an Excluded
Transaction, as such term is defined below; or

 

(iii)                   the stockholders
of the Company approve a plan of complete liquidation of the Company or there
is consummated an agreement for the sale or disposition by the Company of all
or substantially all of the Company’s assets (or any transaction having a
similar effect), other than a sale or disposition by the Company of all or
substantially all of the Company’s assets to an entity, at least 50% of the
combined voting power of the voting securities of which are owned by
stockholders of the Company in substantially the same proportions as their
ownership of the Company immediately prior to such sale.

 

“Disability”
means your inability to perform your duties in any material manner by reason of
physical or mental disability for a period of six consecutive months, or for a
period of more than nine months in the aggregate in any twelve-month period.

 

“Excluded
Transaction” means any of the following events:

 

(i)                         an
acquisition, exchange, merger, consolidation or other transaction or series of
transactions, which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) more than 50% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately
after such merger or consolidation; or

 

(ii)                      an
acquisition, exchange, merger, consolidation or other transaction or series of
transactions effected to implement a recapitalization of the Company (or
similar transaction) in which no person, directly or indirectly, acquired 50%
or more of the combined voting power of the Company’s then outstanding
securities (not including in the securities beneficially owned by such person
any securities acquired directly from the Company or its affiliates).

 

5

 

7.                           Change
in Control. Upon a Change in Control, all Options then held by you that
have not vested shall immediately vest and become exercisable (together with
all vested Options), for a period of 6 months from the date of such Change in
Control.

 

8.                           Confidentiality/Non-Competition
Agreement. You agree to comply with all the provisions of the
Confidentiality/Non-Competition Agreement that you are executing concurrently
with the execution of this letter agreement.

 

9.                           Confidentiality.
You acknowledge that you now have and will have access to and become acquainted
with proprietary and confidential information regarding the Company and its
affiliates and its customers that constitute valuable assets of the Company and
its affiliates and that is not available to the public. Accordingly, you agree
that, in addition to the provisions of the Confidentiality/Non-Competition
Agreement you will not during the term of this letter or at any time
thereafter, directly or indirectly, make, or cause to be made, any statement or
publication about or concerning the Company, its affiliates or their
shareholders (or any fiduciary or beneficiary of any shareholder that is a
trust or an estate) which you reasonably believe not to be in the best
interests of, or necessary for the proper conduct of the businesses of, the
Company, its affiliates or their shareholders (or any fiduciary or beneficiary
of any shareholder that is a trust or an estate), other than statements or
publications that you reasonably believe to be necessary to protect and enforce
your rights under this letter. Nothing herein is intended to limit or affect
any responsibility you may have under any law or any generally applicable
policy, practice or procedure of the Company or its affiliates.

 

10.                     No
Disclosure. The financial arrangements contemplated hereby are sensitive
and highly confidential, and, so long as you remain employed by the Company,
you will not use, disclose or make any public announcement regarding such
financial arrangements without the prior written consent of the Company (by the
Board of Directors or its chairman), except: (i) as may be required by
applicable law; (ii) disclosure in connection with your own personal tax or
financial affairs; or (iii) as may be required in order to enforce any term or
provision hereof.

 

11.                     Injunctive
Relief. You acknowledge and agree that if any provision of the Sections 8,
9 or 10 is breached, the Company will immediately and irreparably be harmed,
will not have an adequate remedy at law and will be entitled to seek immediate
relief enjoining such violation or threatened violation (including without
limitation temporary and permanent injunctions and/or a decree for specific
performance) in any court or judicial body having jurisdiction over such claim
without the necessity of showing any actual damage or posting any bond or
furnishing any other security.

 

12.                     Litigation;
Legal Fees. Any dispute that may arise between you and the Company in
connection with your employment hereunder, including, without limitation, the
terms or interpretation of this letter as they relate to the existence of Cause
and the terms concerning termination of employment with Cause, as well as the
terms of any non-competition and non-solicitation and your entitlement to
severance, either during or following termination of your employment hereunder
shall be adjudicated solely in the applicable state or Federal court in
Chicago, Illinois without reference to such State’s principles governing
conflicts of laws and the parties waive any objections that they may now have
or hereafter have to the venue of such proceeding. You consent to the service
of process out of any of the aforementioned courts

 

6

 

in any such action or
proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to you at your address set forth herein, such service to
become effective 30 days after such mailing. You waive any objection that you
may now or hereafter have to the laying of venue on any of the aforesaid
actions or proceedings brought in the aforesaid courts. If the court finds that
either party has breached the substantive terms of this letter and the
breaching party in doing so acted capriciously, maliciously or in bad faith,
then the court may require the breaching party to pay for all the other party’s
costs and expenses, including reasonable attorney’s fees, arising from such
proceeding.

 

13.                     Miscellaneous.

 

a.                           Notice.
All notices and other communications provided for hereunder shall be in writing
(including by telex or facsimile transmission) and mailed or sent or delivered
at the addresses specified below. All such notices and communications shall be
given by hand, telex or facsimile transmission; provided that, in the
event that telex and facsimile transmission facilities are not operational,
such notices and communications may be given by mail, but the sender shall use
reasonable efforts to confirm facsimile transmission facilities shall become
operational. All such notices and communications shall be effective when
delivered by hand, or, in the case of mail, upon the earlier of receipt and
confirmation by telex or facsimile transmission as provided below, or, in the
case of facsimile transmission, when sent as addressed as set forth herein and
confirmation of delivery is received, or, in the case of telex, when the telex
is sent and the appropriate answer back is received. The address for you is set
forth in the beginning of this letter. The address for the Company is as
follows:

 

1351A Abbott Ct.

Buffalo Grove, IL 60089

Telecopy No.: (847) 720 2132

Attention:
Chairman of the Board of Directors

 

Or, after March
31, 2007 to:

 

10255 West Higgins
Rd

Rosemont, IL 60018

Attention:
Chairman of the Board of Directors

 

With copies to:

 

Proskauer Rose LLP

1585 Broadway

New York, New York
10036-8299

Telecopy No: (212)
969-2900

Attention: Yuval
Tal

 

Each party to this letter
may, from time to time, change its notice address, by giving notice to the
other party in the manner provided in this paragraph.

 

b.                          Entire
Agreement. This letter (inclusive of any annex hereto) contains the entire
understanding and agreement of the parties (and their affiliates) with respect
to the

 

7

 

subject matter hereof,
and all prior negotiations, proposals and agreements (whether written or oral)
between them (or their respective affiliates) relating to the subject matter
hereof, have been superseded hereby, including, without limitation, any
employment agreement(s) between you and the Company or any of its affiliates.
No agreements or representations (whether oral or otherwise, express or
implied) that are not expressly set forth in, but that relate to the subject
matter of this letter have been made by either party.

 

c.                           Amendment;
Waiver. Neither this letter nor any provision hereof may be amended or
modified except in a writing signed by the party against whom enforcement of
such amendment or modification is sought. No failure or delay of any party in
exercising any power or right hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce any such right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of each party under this letter are,
unless otherwise specifically provided herein, cumulative and not exclusive of
any rights or remedies that such party may otherwise have. No waiver by either
party of any provision of this letter nor any consent by either party to any
departure by the other party from any provision of this letter shall in any
event be effective unless the same shall be in writing (by the party against
which enforcement of such waiver or consent is sought), and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which it was given. No notice or similar communication by one party
to the other shall entitle such other party to any other or further notice or
similar communication in similar or other circumstances, except as specifically
provided herein.

 

d.                          Severability.
If any one or more of the provisions of this letter or any annex hereto shall
be invalid, illegal or unenforceable in any respect, it shall be ineffective
only to the extent of such invalidity, illegality or unenforceability, and
shall not in any way affect or impair the validity, legality and enforceability
of the balance of such provision or any other provision contained herein. Each
party shall endeavor in good faith negotiations to replace the invalid, illegal
or unenforceable provision(s) (or such portion thereof) with such valid, legal
and enforceable provision(s), the economic effect of which on the respective
parties is as close as possible to that of the invalid, illegal or
unenforceable provision(s).

 

e.                           Successors
and Assigns. This letter shall be binding upon and inure to the benefit of
the respective successors and permitted assigns of the parties hereto;
provided, that no party may, without the prior written consent of the other,
assign, transfer or delegate this letter or any of such party’s rights or
obligations hereunder (whether directly or indirectly, by operation of law or
otherwise) to any other person, firm or entity. Company shall require successor
to expressly assume this Agreement.

 

f.                             Rights
of Third Parties. Anything in this letter to the contrary notwithstanding,
no person, firm or entity shall be entitled to the benefit of, or to enforce,
any provision hereof other than the parties hereto (and their heirs, successors
and permitted assigns).

 

g.                          Survival.
The respective rights and obligations of you and the Company as provided herein
shall survive the termination or expiration hereof to the extent necessary to
the intended preservation of such rights and obligations.

 

8

 

h.                          Governing
Law. This letter shall be construed and interpreted according to the laws
of the State of Illinois, without reference to such State’s principles
governing conflicts of law.

 

i.                              Headings.
The headings used herein are for convenience of reference only, are not part of
this letter and are not intended to affect the construction, or to be taken
into account in the interpretation, of this letter.

 

j.                              Counterparts;
Effect. This letter may be signed in counterparts with the same effect as
if the signatures were all upon the same instrument; provided, that no party
shall be bound hereto unless and until all parties have executed and delivered
this letter (or a counterpart).

 

 

[SIGNATURE PAGE FOLLOWS]

 

9

 

Please
confirm your agreement with the foregoing by signing and returning to us two
copies of this Agreement.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  LIFEWATCH CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Yacov Geva

  
	
   

  	
   

  	
  Name:

  	
  YACOV GEVA

  
	
   

  	
   

  	
  Title:

  	
  CHAIRMAN OF THE BOARD

  
					

 

	
  AGREED TO AND ACCEPTED:

  
	
   

  
	
   

  
	
  /s/ Frederick J.
  Mindermann

  	
   

  
	
  FREDERICK J. MINDERMANN

  

 

10

 

EXHIBIT A

 

SEVERANCE AGREEMENT AND RELEASE

 

This Agreement and
Release (“Release”) is made and entered into effective as of this       day
of               ,
2006, by and between               
(“Employee”) and LifeWatch, Inc. (hereinafter “LifeWatch”).

 

1.                          Employee’s
last day of work with LifeWatch will be                       .

 

2.                          Employee
agrees to waive all claims of every kind and nature, whether known or unknown,
arising either at common law, or by virtue of any statute, that s/he may have
against LifeWatch (including its employees, officers, and directors; past,
present, and future parent companies; subsidiaries and/or affiliates, and
including, without limitation, Card Guard AG, Card Guard Scientific Survival
Ltd., Card Guard Technologies, Inc., and Card Guard USA, Inc.) arising from
his/her employment with LifeWatch and/or the termination of employment with
LifeWatch. No claim or cause of action of any sort whatsoever is reserved,
except that the Employee does not waive any claims based on events which have
not yet occurred.

 

3.                          Employee
covenants and agrees that s/he will not now or at any time in the future
commence or prosecute any claim against LifeWatch on any matter encompassed by
this Release. Employee warrants that there are no outstanding charges,
complaints, claims, grievances or actions of any nature whatsoever previously
filed or brought by him/her or on his/her behalf against LifeWatch pending
before any federal, state or local court or administrative body. If Employee
breaches this paragraph, Employee agrees that s/he shall tender back to
LifeWatch all of the monies paid to Employee by LifeWatch pursuant to paragraph
11, except for $100.00 (One Hundred Dollars), which the parties

 

 

agree is exclusively
consideration for the release of claims under the Age Discrimination in
Employment Act.

 

4.                          Employee
acknowledges that s/he was properly classified as an exempt employee and
properly paid for all time worked by LifeWatch. Employee further acknowledges
that LifeWatch did not deny or fail to accommodate any requests for leaves of
absence made by the Employee.

 

5.                          Employee
waives any rights that s/he has to reinstatement of employment or reemployment
with LifeWatch. Employee warrants that in the future s/he shall not knowingly
apply for or accept any position with LifeWatch.

 

6.                          Employee
covenants that s/he will not, at any time, disparage LifeWatch to any
employees, former employees, customers, clients, suppliers, vendors, or
competitors of LifeWatch; s/he also will not disparage LifeWatch in any media.

 

7.                          Unless
compelled to do so by judicial process or by law, Employee will not disclose to
anyone and shall treat as confidential information the terms of this Release.
However, Employee may disclose such terms and amounts of this Release to her
attorneys or accountants on a “need-to-know” basis, provided such individuals
or entities are informed of Employee’s confidentiality obligations under this
paragraph and agree to keep the disclosed information confidential. Employee
also acknowledges that disclosures by him or her of information intended to be
kept confidential pursuant to this paragraph shall constitute a material breach
of this Release for which s/he shall be liable.

 

8.                          The
Employee agrees that s/he is bound by, and will abide by, the
Confidentiality/Non-Competition Letter (“Confidentiality Letter”), signed by
the

 

 

Employee on                 ,
20    . The Confidentiality Letter is attached to this
Release and the terms of that letter agreement are fully incorporated into this
Release.

 

9.                          The
Employee acknowledges that his or her continuing entitlement to payments under
Paragraph 11 of the Release shall be conditioned upon his or her continuing
compliance with this Paragraphs 6, 7, and 8 of this the Release and any
violation of Paragraphs 6, 7, or
8 by the Employee shall terminate LifeWatch’s obligation to continue to make
payments under Paragraph 11.

 

10.                    Employee
warrants that s/he has returned to LifeWatch all property of LifeWatch,
including any and all documents developed or provided to him or her during the
course of his or her employment with LifeWatch.

 

11.                    In
consideration for the covenants and promises made in this Release, LifeWatch
agrees that it will:

 

(a)                      pay to
Employee his/her base compensation, less applicable deductions, for        
weeks (through            ,
20     ). The payments will be made in equal
installments, beginning the first payroll period after the expiration of the
7 day revocation period described in para. 14(H). Employee warrants that
s/he is not owed any other money, including bonuses, car allowances, and/or
reimbursement of expenses, by LifeWatch; and

 

(b)                     continue
Employee’s benefits (to the extent permitted by applicable law and the terms of
any applicable plans, in each case as if Employee continued as an active
employee) for        months commencing on                 ,
unless Employee is eligible for coverage by another plan prior to this date.

 

 

12.                    The parties
agree that all requests for references shall be directed only to Allison Stein,
Vice President of Human Resources, or her successor, and that in response to
such request for a reference, LifeWatch will supply only the Employee’s dates
of employment and positions held.

 

13.                    This Release
contains the entire agreement of the parties. It supersedes any previous
communications or understandings, whether oral or written. The parties
represent and acknowledge that no promises or agreements, except those set
forth herein have been made or relied upon by any party. This Release shall not
be changed, modified or rescinded except in writing by both parties, and any
attempt at oral modification of this Release shall be void and of no effect.

 

14.                    The parties
participated jointly in the negotiation and preparation of this Release.
Accordingly, it is agreed that no rule of construction shall apply against any
party or in favor of any party. This Release shall be construed as if the
parties jointly prepared this Release, and any uncertainty or ambiguity shall
not be interpreted against one party and in favor of the other.

 

15.                    In conformity
with the Older Workers Benefit Protection Act, the Employee acknowledges the
following:

 

(A)                  that
this Release is written in a manner calculated to be understood by him/her;

 

(B)                    that
s/he has been advised to consult an attorney prior to executing this Release;

 

(C)                   that
this Release represents the Employee’s knowing and voluntary waiver and release
of any and all claims that s/he might have, including, but not limited to any
claims arising under the Age Discrimination in Employment Act (“ADEA”);

 

 

(D)                  that
s/he has not waived any claim under the ADEA that may arise after the date of
this Release;

 

(E)                    that
the consideration that s/he will receive in exchange for this Release in
paragraph 11 is something of value to which s/he is not already entitled;

 

(F)                    that
s/he has 21 days to consider this Release;

 

(G)                   that
s/he has 7 days following his or her execution of the Release in which to
revoke it. For revocation to be effective, written notice of revocation must be
delivered to Allison Stein, LifeWatch, 1351 Abbott Court, Buffalo Grove,
Illinois 60089, no later than 5:00 p.m. on the seventh day after s/he has
signed this Release; and

 

(H)                  the
Release will become effective after the 7 day revocation period.

 

16.                    The parties
agree that this Release shall be governed and construed in accordance with the
laws of the State of Illinois, including the internal conflicts of law. The
Employee agrees and consents to submit to personal jurisdiction in the State of
Illinois in any state or federal court of competent subject matter jurisdiction
situated in Cook County, Illinois. The Employee further agrees that the sole
and exclusive venue for any suit arising out of, or seeking to enforce, the
terms of this Release shall be in a state or federal court of competent subject
matter jurisdiction situated in Cook County, Illinois.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Employee Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Employee Name

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date of Signature:

  	
   

  	
   

  
				

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Frederick J. Mindermann

  
	
   

  	
  President & CEO

  
	
   

  	
  for LifeWatch, Inc.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]