Document:

exv10w1

 

Exhibit 10.1

 

AMENDMENT TO EMPLOYMENT AGREEMENT 

 

     This AMENDMENT TO EMPLOYMENT AGREEMENT (the “Amendment”) is made this 25th day of July, 2006
between Patrick T. Ryan (the “Executive”) and PolyMedica Corporation (the “Company”).

Recitals

     R-1. The Executive and the Company entered into an Employment Agreement dated October 14,
2005 which sets forth the terms of the Executive’s employment as CEO and President of the Company
(the “Employment Agreement”); and

     R-2. The Company through its Compensation Committee and its Board of Directors has determined
that it is in Company’s interest to modify certain terms of the Executive’s employment, and the
Executive has agreed to those modifications.

     In consideration of the recitals set forth above, the mutual promises contained in this
Amendment and other good and valuable consideration, the receipt and sufficiency of which are
acknowledged by the parties, the Executive and the Company agree as follows:

     1. Base Salary. The parties acknowledge that pursuant to Section 3(a) of the
Employment Agreement (providing for periodic increases in the Executive’s base salary), the
Executive’s base salary was increased 3% (to $703,490.00 per annum).

     2. Equity Based Compensation. Section 3 (c) of the Employment Agreement is modified
to render null and void and of no legal effect the Company’s obligation to grant the Executive
options to purchase, 100,000, 150,000, and 150,000 shares of the Company’s stock on September 30,
2006, September 30, 2007 and September 30, 2008 respectively. In lieu thereof, the Executive shall
be granted, effective upon execution of

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this Amendment, 133,000 shares of restricted Company stock
(the “Shares”), the restrictions on which shall lapse (the lapsing of Shares being referred to as
“vesting”) with the passage of time following the sustained achievement of a closing price of at
least $50 per share for the Company’s common stock, as follows:

     (A) The Shares shall not become eligible for vesting until the first day following the first
date following execution of this Amendment on which the shares of the Company’s common stock have a
closing price per share of at least $50.00 on the NASDAQ National Market (the “Commencement Date”).

     (B) Following the Commencement Date, the restrictions shall lapse on a portion of the Shares
in the percentages and on the dates shown below, provided that Executive is employed by the Company
on each of the vesting dates:

	 	 	 
	Percentage of Shares as to	 	 
	Which Restrictions Lapse	 	Date on which Restrictions Lapse
	 
	 	 
	25%

	 	First Anniversary of the Commencement Date
(“First Vesting Date”)
	 
	 	 
	6.25%

	 	Every three (3) months following the First
Vesting Date
	 
	 	 

     3. Calculation of the Executive’s Severance for Certain Terminations during Fiscal Year
2007. Solely in the event the Executive is terminated during the fiscal year of the Company
ending March 31, 2007 (“Fiscal Year 2007”) either by the Company without Cause or by the Executive
for Good Reason, any severance payment payable to the Executive pursuant to Section 7(b)(ii)(C) of
the Employment Agreement shall be equal to two times the sum of (x) the Executive’s highest Base
Salary during the period the Executive was employed by the Company and (y) 150% of Employee’s
Target Bonus

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for Fiscal Year 2007, and any severance payment payable to the Executive pursuant to
Section 7(b)(v)(C) of the Employment Agreement shall be equal to 2.99 times the sum of (x) and (y)
as set forth in this paragraph 4 . After Fiscal Year 2007, severance, if any, shall be calculated
as provided in the Employment Agreement.

     4. Lump Sum Payment of Severance. Notwithstanding Sections 7(b)(ii)(H) and 7(b)(v)(H)
of the Employment Agreement (providing for the payment of severance in installments in certain
circumstances) which paragraphs are null and void, any payments to which the Executive may become
entitled under Sections 7 (b)(ii)(B), (C), D) and (E) or 7(b)(v)(B), (C), (D) and (E) shall be paid
to the Executive in a lump sum on the earliest date required by applicable state law or within ten
(10) business days after the Executive’s Termination Date, whichever period is shorter.

     5. Miscellaneous.

     A. Any capitalized term not expressly defined in this Amendment shall have the meaning
ascribed to it in the Agreement.

     B. Except as expressly modified by this Amendment, all terms of the Executive’s
Employment Agreement shall remain in full force and effect.

     IN WITNESS WHEREOF, the Company has caused this Amendment to be executed by its duly
authorized officer and the Executive has executed this Amendment to Employment Agreement as
of the day and year first above written.

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	 	PolyMedica Corporation

 	 
	 	/s/ Thomas O. Pyle
 	 
	 	Name:  	Thomas O. Pyle 	 
	 	Title:  	Chairman of the Board of Directors 	 
	 
	 	Patrick T. Ryan

 	 
	 	/s/ Patrick T. Ryan
 	 
	 	 	 
	 	 	 
	 

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Exhibit
10.19.1

SUPPLEMENTARY AGREEMENT No. TC-113/0606
to Agreement
No. TC-3/0100 dated January  21,  2004

This
SUPPLEMENTARY AGREEMENT No. TC-133/0606 (the Supplementary
Agreement) to Agreement No. TC-3/0100 dated January
21,  2004 (the Agreement) is made in Moscow, on
June  28,  2006, by and between:

ZAO Set
Televizionnykh Stantsiy (Russian name: ЗАО
«Сеть
телевизионных
станций»)
(Primary State Registration Number (OGRN) 1027700151852)
(hereinafter referred to as CTC), a closed stock company
represented by its General Director A.E. Rodnyansky acting on the basis
of CTC Articles of Association, on the one side; and

ZAO TSV (Russian name: ЗАО
«ТСВ») (Primary State Registration
Number (OGRN) 1027739243399) (hereinafter referred to as the
Agency), a closed stock company represented by its General
Director V.L. Vshivkin acting on the basis of the Agency’s
Articles of Association, on the other side;

CTC and the
Agency being hereinafter collectively referred to as the
Parties.

WHEREAS, Russian Federal Law No. 38-FZ
‘‘On Advertising’’ dated March
13,  2006 comes into effect as of July  1,  2006, and
whereas the said law introduces new terms and definitions and also
provides for certain changes and amendments to the existing terms and
definitions as well as to the scope of and the procedure for TV
advertising;

NOW, THEREFORE, the Parties have agreed as
follows:

		
	1. 	Effective as of July  1,
2006, the Parties have agreed as follows:

		
	1.1 	The
Parties agree that Section 1 of the Agreement (Definitions)
shall read as follows:

‘‘As used herein,
the following terms and definitions shall have the following
meanings:

Network Programming Block means a
composite audio and visual product (a result of intellectual
activities) developed by CTC to be used by TV broadcasters
participating in the CTC network as an over-the-air broadcast (pursuant
to Article 40 of the Russian Federal Law ‘‘On Copyright
and Ancillary Rights’’ (the Copyright Law)) and as
a cable broadcast (pursuant to Article 41 of the Copyright Law) and
having a uniform content for all participants of the CTC network
throughout the entire territory of the Russian
Federation.

Regional Broadcasting Slot means a
period of time in the Network Programming Block during which an CTC
network participating broadcaster may at its own discretion replace
audio and visual products of the Network Programming Block with any
other shows.

CTC Advertising Services means
making Network Programming Blocks available to advertisers, including
for broadcast of sponsor advertising, pursuant to any agreements
concluded by the Agency on its own behalf but for CTC account or any
agreements concluded by the Agency directly with the advertiser and
covering advertising, including sponsor advertising, on the Network
Programming Blocks.

Advertising means
information disseminated by any means whatsoever, in any form
whatsoever and with the help of any tools whatsoever which is addressed
to an unidentified group of individuals and is directed at attracting
attention to, creating and maintaining interest in and promotion of,
the object being so advertised.

Commercial means
an audio and visual product having advertising content.

Sponsor Advertising means any advertising which may
be disseminated subject to a reference to a certain sponsor being made
therein.

Social Advertising means information
disseminated by any means whatsoever, in any form whatsoever and with
the help of any tools whatsoever which is addressed to an unidentified
group of individuals and is directed at fulfilling charitable or
publicly significant objectives or promoting state
interests.

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Social Advertising may not make
mention of any particular brands (models, items) of
goods,    trademarks, service marks or any other identification
tools or of any individuals, legal entities or sponsors other than
state authorities or other government bodies or local bodies or those
municipal bodies which do not make part of the local
authorities.

Client means any advertiser or third
party representing an advertiser pursuant to a relevant
agreement.

Accounting Period means one calendar
month.

CTC Gross Advertising Revenue in the
Accounting Period (or CTC Gross Revenue) includes the
following:

		
	• 	Sales revenue from
advertising services provided by the Agency;

		
	• 	Sales revenue from advertising services
provided to Clients directly by CTC;

		
	• 	Penalties, fines, break-up fees and other
amounts unrelated to sales and payable to CTC and actually received by
the Agency within the framework of transactions concluded by the Agency
with the Clients for the purposes of performance of this
Agreement.

		
	1.2 	Clause 2.4 of the Agreement shall
read as follows:

			
		‘‘2.4. 	CTC hereby entitles
the Agency to make Network Programming Blocks available for Commercials
at any time between 7:00 a.m. local time and 1:00 a.m. local time of
the following day, excluding Regional Broadcasting Slots having the
total duration of two (2) hours on weekdays and one (1) hour on
weekends and national holidays, for the following periods of time:

			
		• 	In the period between July
1,  2006 and December  31,  2007, for a period of up
to eleven point twenty-five percent (11.25%) of the total daily
duration of the Network Programming Block, excluding Regional
Broadcasting Slots.

In the time period between 7:00 p.m.
and 12:00 p.m., CTC provides to the Agent up to fifteen percent
(15%) of each astronomical hour of the Network Programming Block
to be made available for Commercials.

The Parties agree
that in any event the duration of Commercials shall not exceed fifteen
percent (15%) of each astronomical hour of the Network
Programming Block or eleven point twenty-five percent (11.25%)
of the total daily duration of the Network Programming
Block.

			
		• 	In the period beginning
on January  1,  2008, for a period of up to eleven point
twenty-five percent (11.25%) of each astronomical hour of the
Network Programming Block, excluding Regional Broadcasting
Slots.

The Parties agree that, in the time period
between 01:00 a.m. and 07:00 a.m., CTC shall at its own discretion
provide to the Agency time to be made available for
Commercials.’’

		
	1.3 	Include in the
Agreement Clause 3.1.9, which shall read as follows:

			
		‘‘3.1.9 	CTC shall not run
any commercials or advertising on days of mourning as may be officially
declared in the Russian Federation.

In that case, CTC
shall be obliged to run the commercials or advertising so cancelled at
a similar time and during similar broadcasts within the next few days
and/or as may be otherwise agreed between the Agency and the
Clients.’’

		
	1.4 	Include in Clause 6.3
of the Agreement the following
paragraph:

‘‘CTC may not be held liable
under Paragraph 1 of this Clause if the commercials have not been
broadcast on days of mourning as may be officially declared in the
Russian Federation (pursuant to Clause 3.1.9
hereof).’’

		
	2. 	The Parties agree that,
starting from July  1,  2006, the Agency shall, wherever
entering into any agreements with the Clients, in addition to the
provision set out in Clause 3.2.1(f) hereof, include in any such
agreement the following provision:

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‘‘The Client shall
provide to the Agency duly certified copies of the relevant licenses if
the advertised business activities of the Client require to be licensed
and relevant certificates of conformity if the advertised goods
(services) require certification and relevant certificates of
registration if the advertised goods are subject to state registration.
The Client shall, if so requested by the Agency, provide within two (2)
days documentary proof of the accuracy of the information contained in
the commercial.’’

		
	3. 	Include in
Clause 9.2 of the Agreement the following Clause
9.2.4:

			
		‘‘9.2.4 	If
either Party displays any symptoms of bankruptcy as the same are
defined in Article 3 of the Russian Federal Law ‘‘On
Bankruptcy
(Insolvency)’’.’’

		
	4. 	The
Parties agree to be governed by the terms and conditions of the
Agreement in any matters not specifically provided for in, and not
violating the terms or conditions of, this Supplementary
Agreement.

		
	5. 	This Supplementary Agreement shall
commence as of the date it is executed by duly authorized
representatives of both Parties and shall continue in full force and
effect until the Parties have discharged in full all of their
respective obligations hereunder.

		
	6. 	Registered
addresses, place of business and bank details of the
Parties:

				
	AGENCY:
ZAO TSV

    

Registered and mailing
address: 25 Ulitsa Akademika Pavlova, Moscow 121359, Russia

INN 7706145804
KPP 773101001
OGRN 1027739243399
Current
account 40702810338190103285
with Sberbank of
Russia
(Kiyevskoye OSB No.5278)
 Correspondent account
30101810400000000225
 BIK 044525225
 Tel: 956 1267
 Fax:
737 8700			STS: ZAO Set Televizionnykh
Stantsiy

    

Registered and mailing address: 12
Ulitsa 3rd Khoroshevskaya, Moscow 123298, Russia
 INN
7707115217
OGRN 1027700151852
Current account
40702810100000006624
 with OAO ALFA BANK (Moscow)

Correspondent account 30101810200000000593
 BIK 044525593
 Tel:
797 4100
 Fax: 797 4101
	Details for payments in a foreign
currency:
Beneficiary: ZAO TSV
 Beneficiary
account: 40702840500003006466
Beneficiary bank: ALFA BANK
 27
Ulitsa Mashi Poryvayevoy, Moscow 107078, Russia			Details for
payments in a foreign currency:
Beneficiary: ZAO Set
Televizionnykh Stantsiy
 Beneficiary account:
40702840400003003080
 Beneficiary bank: ALFA BANK
 27 Ulitsa
Mashi Poryvayevoy, Moscow 107078, Russia
	General Director

ZAO TSV

 [Signature]
 V.L.
Vshivkin
 [Company seal:] Closed Stock Company ZAO
TSV; Moscow			    
    
                    
A.E.
Rodnyansky
/Affix seal
here/
	

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