Document:

Exhibit 10.1

 

CHANGE OF CONTROL AGREEMENT

 

THIS CHANGE OF CONTROL AGREEMENT
(this “Agreement”) by and between HemaCare Corporation., a California
corporation (the “Company”) and Judi Irving (the “Executive”), is dated as of
this 6th day of June, 2005.

 

The Board of Directors of the
Company (the “Board”) has determined that it is in the best interests of the
Company and its shareholders to assure that the Company will have the continued
dedication of the Executive, notwithstanding the possibility, threat or occurrence
of a Change of Control (as defined in Section 2 below) of the
Company.  The Board believes it is
imperative to diminish the inevitable distraction of the Executive by virtue of
the personal uncertainties and risks created by a pending or threatened Change
of Control and to encourage the Executive’s full attention and dedication to
the Company currently and in the event of any threatened or pending Change of
Control, and to provide the Executive with compensation and benefits
arrangements upon a Change of Control which ensure that the compensation and
benefits expectations of the Executive will be satisfied and which are
competitive with those of other corporations. 
Therefore, in order to accomplish these objectives, the Board has caused
the Company to enter into this Agreement.

 

NOW, THEREFORE, IT IS HEREBY
AGREED AS FOLLOWS:

 

1.                                       Definitions.

 

(a)                                  “Cause” shall mean a willful act by you which
constitutes Gross Misconduct and which had or will have a material injurious effect
on the Company’s business or reputation.

 

(b)                                 The “Change of Control Period” shall mean the
period commencing upon Change of Control and ending on the first anniversary of
the date thereof.

 

(c)                                  The Executive shall be deemed to be “Constructively
Terminated” if during the Change of Control Period, (i) the Executive’s
position (including status, offices, titles and reporting requirements),
authority, duties and responsibilities are not at least commensurate in all
material respects with the most significant of those held, exercised and assigned
at any time during the one hundred twenty (120) day period immediately
preceding the Change of Control, (ii)  the Executive’s annual base salary
and bonus compensation is reduced by more than five percent (5%), unless such
reduction is part of a uniformly applied program of reductions reasonably
adopted by the Board due to the Company’s then business condition, (iii) the
Executive’s services are required to be performed at a location greater than thirty
five (35) miles from the location where the Executive was employed immediately
preceding the Effective Date or (iv) the Executive is required to engage
in a substantially increased amount of travel on Company business.

 

1

 

(d)                                 “Date of Termination” shall mean the date on
which Executive’s employment with the Company is terminated or Constructively
Terminated by reason of a Change of Control that occurs during the Change of
Control Period.

 

(e)                                  “Disability” shall mean that, at the time your
employment is terminated, you have been unable to perform the duties of your
position for a period of one hundred eighty (180) consecutive days as the
result of your incapacity due to physical or mental illness.

 

(f)                                    The “Effective Date” shall mean the first date
during the Change of Control Period on which a Change of Control occurs.  Anything in this Agreement to the contrary
notwithstanding, if a Change of Control occurs and if the Executive’s
employment with the Company is terminated prior to the date on which the Change
of Control occurs, and if it is reasonably demonstrated by the Executive that
such termination of employment (i) was at the request of a third party who
has taken steps reasonably calculated to effect a Change of Control or (ii) otherwise
arose in connection with or anticipation of a Change of Control, then for all
purposes of this Agreement the “Effective Date” shall mean the date immediately
prior to the date of such termination of employment.

 

(g)                                 “Gross Misconduct” shall mean (i) theft
or damage of Company property, (ii) use, possession, sale or distribution
of illegal drugs, (iii) being under the influence of alcohol or drugs
(except to the extent medically prescribed) while on duty or on Company
premises, (iv) improper disclosure of confidential information, (v) conduct
endangering, or likely to endanger, the health or safety of another employee or
(vi) falsifying or misrepresenting information on Company records.

 

2.                                       Change of Control.  For
the purpose of this Agreement, a “Change of Control” shall mean:

 

(a)                                  The acquisition by any individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”)
of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of thirty percent (30%) or more of either (i) the
then outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (ii) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (a),
the following acquisitions of stock shall not constitute a Change of
Control:  (i) any acquisition
directly from the Company, (ii) any acquisition by the Company, (iii) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company, (iv) any
transaction, the sole purpose of which is to change the state of incorporation
or (v) any acquisition by any corporation pursuant to a transaction which
complies with clauses (i), (ii) and (iii) of subsection (c) of
this Section 2;

 

2

 

(b)                                 Individuals who, as of the date hereof,
constitute the Board (the “Incumbent Board”) cease for any reason to constitute
at least a majority of the Board; provided, however, that any individual
becoming a director subsequent to the date hereof whose election, or nomination
for election by the Company’s shareholders, was approved by a vote of at least
a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board; or

 

(c)                                  Consummation of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of the
assets of the Company (a “Business Combination”), in each case, unless,
following such Business Combination, (i) all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities
immediately prior to such Business Combination beneficially own, directly or
indirectly, more than sixty percent (60%) of, respectively, the then
outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation which as a result of
such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership, immediately prior to such Business
Combination of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, as the case may be, (ii) no Person (excluding any
employee benefit plan (or related trust) of the Company or such corporation
resulting from such Business Combination) beneficially owns, directly or
indirectly, thirty percent (30%) or more of, respectively, the then outstanding
shares of common stock of the corporation resulting from such Business
Combination or the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such ownership existed
prior to the Business Combination, and (iii) at least a majority of the
members of the board of directors of the corporation resulting from such
Business Combination were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board, providing
for such Business Combination; or

 

(d)                                 Approval by the shareholders of the Company of
a complete liquidation or dissolution of the Company.

 

3.                                       Compensation Upon Certain Terminations of
Employment Following a Change of Control.  In the event the Executive’s
employment is terminated or Constructively Terminated by reason of Change of
Control that occurs during the Change of Control Period, the following shall be
applicable:

 

3

 

(a)                                  The Executive shall be entitled to receive, at
her option, either (i) a lump sum cash payment equal to two (2) times
the Executive’s annual base salary, which shall be due within thirty (30) days
after the Date of Termination or (ii) twenty four (24) equal monthly
installments which in aggregate shall be equal to two (2) times the
Executive’s annual base salary, the first payment of which shall be due within thirty
(30) days after the Date of Termination. 
For purposes of this Agreement, “annual base salary” shall mean one (1) year
of base salary, at the highest base salary rate that Executive was paid by the
Company in the twelve (12) months prior to the Date of Termination (the “Look
Back Period”).

 

(b)                                 The Company shall continue to pay any health
insurance benefits as were provided to Executive and her family under the plans
of the Company as of the Change of Control for a period of eighteen (18) months
following the Date of Termination.

 

(c)                                  All outstanding stock options previously
granted under any Company stock option plan, whether vested or unvested, shall
be accelerated and become immediately exercisable for a period of six (6) months
after the Date of Termination.

 

(d)                                 Notwithstanding the foregoing, the Company
shall have no obligation to make any payment or offer any benefits under this Section 3
if the Executive’s employment is terminated for Cause, death, Disability,
retirement or resignation other than for good reason following a Change of
Control.

 

4.                                       Non-Exclusivity of Rights. 
Nothing in this Agreement shall prevent or limit the Executive’s
continuing or future participation in any plan, practice, policy or program
provided by the Company or any of its affiliated companies and for which the
Executive may qualify, nor shall anything herein limit or otherwise affect such
rights as the Executive may have under any contract or agreement with the
Company or any of its affiliated companies. 
Amounts which are vested benefits or which the Executive is otherwise
entitled to receive under any plan, policy, practice or program of or any
contract or agreement with the Company or any of its affiliated companies at or
subsequent to the Date of Termination shall be payable in accordance with such
plan, practice, policy or program or contract or agreement except as explicitly
modified by this Agreement.

 

5.                                       Full Settlement.  The
Company’s obligation to make the payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action
which the Company may have against the Executive or others.

 

6.                                       Duty to Mitigate.  In no
event shall the Executive be obligated to seek other employment or take any
other action by way of mitigation of the amounts payable to the Executive under
any of the provisions of this Agreement and such amounts shall not be reduced
whether or not the Executive obtains other employment.

 

4

 

7.                                       Fees and Expenses.  The
Company agrees to pay as incurred, to the full extent permitted by law, all
legal fees and expenses which the Executive may reasonably incur as a result of
any contest (regardless of the outcome thereof) by the Company, the Executive
or others of the validity or enforceability of, or liability under, any
provision of this Agreement or any guarantee of performance thereof (including
as a result of any contest by the Executive about the amount of any payment
pursuant to this Agreement), plus in each case interest on any delayed payment
at the applicable Federal rate provided for in Section 7872(f)(2)(A) of
the Internal Revenue Code of 1986, as amended (the “Code”).

 

8.                                       Tax.

 

(a)                                  The Company shall have no liability for any
tax liability of Executive attributable to any payments made under this
Agreement.  The Company may withhold from
any amounts payable under this Agreement such Federal, state, local or foreign
taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

 

(b)                                 Anything in this Agreement to the contrary
notwithstanding, (1) in the event that any payment to or for the Executive’s
benefit (whether payable pursuant to the terms of this Agreement or otherwise)
would not be deductible by the Company as a result of Section 280G of the Code
then the aggregate amount payable under Section 3 shall be reduced (but
not below zero dollars), so that after giving effect to such reduction, no
payment made to or for the Executive’s benefit will fail to be deductible
because of Section 280G, and (2) if the Executive establishes (in
accordance with Section 280G) that all or any portion of the aggregate “parachute
payments” (as defined in Section 280G) payable to or for the Executive’s
benefit constitute reasonable compensation for services actually rendered, and
if the present value of all such “parachute payments” which constitute
reasonable compensation exceeds two hundred ninety-nine percent (299%) of the
Executive’s “base amount” (as defined in Section 280G), then the Executive
shall be entitled to receive an amount equal to (but not greater than) the
present value of all such “parachute payments” which constitute reasonable
compensation.  For purposes of this Section 8(b),
the “present value” of any payment shall be determined in accordance with Section 1274(b)(2) of
the Code.  If it is established that,
notwithstanding the good faith of the Executive and the Company in applying the
terms of this Section 8(b), the aggregate “parachute payments” paid to or
for the Executive’s benefit are in an amount that would result in any portion
of such “parachute payments” not being deductible, then the Executive shall
have an obligation to pay the Company upon demand an amount equal to the sum of
(1) the excess of the aggregate “parachute payments” paid to or for the
Executive’s benefit over the aggregate “parachute payments” that could have
been paid to or for the Executive’s benefit without any portion of such “parachute
payments” not being deductible; and (2) interest on the amount set forth
in clause (1) of this sentence at the applicable federal rate (as defined
in Section 1274(d) of the Code) from the date of the receipt of such
excess by or for the Executive’s behalf until the date of such payment.

 

5

 

9.                                       Successors.

 

(a)                                  This Agreement is personal to the Executive
and without the prior written consent of the Company shall not be assignable by
the Executive otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure
to the benefit of and be enforceable by the Executive’s legal representatives.

 

(b)                                 This Agreement shall inure to the benefit of
and be binding upon the Company and its successors and assigns.

 

(c)                                  The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to
assume expressly and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place.  As used in
this Agreement, “Company” shall mean the Company as hereinbefore defined and
any successor to its business and/or assets as aforesaid.

 

10.                                 Miscellaneous.

 

(a)                                  Choice of Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of California, without reference to principles of conflict of laws.  The captions of this Agreement are not part
of the provisions hereof and shall have no force or effect.  This Agreement may not be amended or modified
otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

 

(b)                                 Notices. All notices and other communications hereunder shall be in writing and
shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as
follows:

 

If to the Executive:

 

Judi Irving

21101 Oxnard Street

Woodland Hills, California 91367

 

If to the Company:

 

HemaCare Corporation

21101 Oxnard Street

Woodland Hills, California 91367

Phone: 877-310-0717 • Fax: 818-251-5300

 

or to such other address as either party shall
have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.

 

6

 

(c)                                  Validity.  The invalidity or
unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

 

(d)                                 Headings.  All captions and section headings
used in this Agreement are for convenient reference only and do not forma part
of this Agreement.

 

(e)                                  Waiver.  No provision of this Agreement
shall be modified, waived or discharged unless such modification, waiver or
discharge is agreed to and signed in writing by Executive and an authorized
officer of the Company (other than Executive).

 

(f)                                    Counterparts.  This Agreement may be executed
in counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument.

 

[Remainder of page left blank
intentionally.]

 

7

 

IN WITNESS WHEREOF, the
Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these
presents to be executed in its name on its behalf, all as of the day and year
first above written.

 

 

	
   

  	
  HemaCare Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Julian Steffenhagen

  	
   

  
	
   

  	
  Name:

  	
  Julian Steffenhagen

  	
   

  
	
   

  	
  Title:

  	
  Chairman of the Board

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Executive

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Judi Irving

  	
   

  
	
   

  	
  Name:

  	
  Judi Irving

  	
   

  
	
   

  	
  Title:

  	
  President and Chief
  Executive Officer

  	
   

  
									

 

8Exhibit 10.2

 

CHANGE OF CONTROL AGREEMENT

 

THIS CHANGE OF CONTROL AGREEMENT
(this “Agreement”) by and between HemaCare Corporation., a California
corporation (the “Company”) and Robert Chilton (the “Executive”), is dated as
of this 6th day of June, 2005.

 

The Board of Directors of the
Company (the “Board”) has determined that it is in the best interests of the
Company and its shareholders to assure that the Company will have the continued
dedication of the Executive, notwithstanding the possibility, threat or
occurrence of a Change of Control (as defined in Section 2 below) of the
Company.  The Board believes it is
imperative to diminish the inevitable distraction of the Executive by virtue of
the personal uncertainties and risks created by a pending or threatened Change
of Control and to encourage the Executive’s full attention and dedication to
the Company currently and in the event of any threatened or pending Change of
Control, and to provide the Executive with compensation and benefits
arrangements upon a Change of Control which ensure that the compensation and
benefits expectations of the Executive will be satisfied and which are
competitive with those of other corporations. 
Therefore, in order to accomplish these objectives, the Board has caused
the Company to enter into this Agreement.

 

NOW, THEREFORE, IT IS HEREBY
AGREED AS FOLLOWS:

 

1.                                       Definitions.

 

(a)                                  “Cause” shall mean a willful act by you which
constitutes Gross Misconduct and which had or will have a material injurious effect
on the Company’s business or reputation.

 

(b)                                 The “Change of Control Period” shall mean the
period commencing upon Change of Control and ending on the first anniversary of
the date thereof.

 

(c)                                  The Executive shall be deemed to be “Constructively
Terminated” if during the Change of Control Period, (i) the Executive’s
position (including status, offices, titles and reporting requirements),
authority, duties and responsibilities are not at least commensurate in all
material respects with the most significant of those held, exercised and assigned
at any time during the one hundred twenty (120) day period immediately
preceding the Change of Control, (ii)  the Executive’s annual base salary
and bonus compensation is reduced by more than five percent (5%), unless such
reduction is part of a uniformly applied program of reductions reasonably
adopted by the Board due to the Company’s then business condition, (iii) the
Executive’s services are required to be performed at a location greater than thirty
five (35) miles from the location where the Executive was employed immediately
preceding the Effective Date or (iv) the Executive is required to engage
in a substantially increased amount of travel on Company business.

 

1

 

(d)                                 “Date of Termination” shall mean the date on
which Executive’s employment with the Company is terminated or Constructively
Terminated by reason of a Change of Control that occurs during the Change of
Control Period.

 

(e)                                  “Disability” shall mean that, at the time your
employment is terminated, you have been unable to perform the duties of your
position for a period of one hundred eighty (180) consecutive days as the
result of your incapacity due to physical or mental illness.

 

(f)                                    The “Effective Date” shall mean the first date
during the Change of Control Period on which a Change of Control occurs.  Anything in this Agreement to the contrary
notwithstanding, if a Change of Control occurs and if the Executive’s
employment with the Company is terminated prior to the date on which the Change
of Control occurs, and if it is reasonably demonstrated by the Executive that
such termination of employment (i) was at the request of a third party who
has taken steps reasonably calculated to effect a Change of Control or (ii) otherwise
arose in connection with or anticipation of a Change of Control, then for all
purposes of this Agreement the “Effective Date” shall mean the date immediately
prior to the date of such termination of employment.

 

(g)                                 “Gross Misconduct” shall mean (i) theft
or damage of Company property, (ii) use, possession, sale or distribution
of illegal drugs, (iii) being under the influence of alcohol or drugs
(except to the extent medically prescribed) while on duty or on Company
premises, (iv) improper disclosure of confidential information, (v) conduct
endangering, or likely to endanger, the health or safety of another employee or
(vi) falsifying or misrepresenting information on Company records.

 

2.                                       Change of Control.  For
the purpose of this Agreement, a “Change of Control” shall mean:

 

(a)                                  The acquisition by any individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”)
of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of thirty percent (30%) or more of either (i) the
then outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (ii) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (a),
the following acquisitions of stock shall not constitute a Change of
Control:  (i) any acquisition
directly from the Company, (ii) any acquisition by the Company, (iii) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company, (iv) any
transaction, the sole purpose of which is to change the state of incorporation
or (v) any acquisition by any corporation pursuant to a transaction which
complies with clauses (i), (ii) and (iii) of subsection (c) of
this Section 2;

 

2

 

(b)                                 Individuals who, as of the date hereof,
constitute the Board (the “Incumbent Board”) cease for any reason to constitute
at least a majority of the Board; provided, however, that any individual
becoming a director subsequent to the date hereof whose election, or nomination
for election by the Company’s shareholders, was approved by a vote of at least
a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board; or

 

(c)                                  Consummation of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of the
assets of the Company (a “Business Combination”), in each case, unless,
following such Business Combination, (i) all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities
immediately prior to such Business Combination beneficially own, directly or
indirectly, more than sixty percent (60%) of, respectively, the then
outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation which as a result of
such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership, immediately prior to such Business
Combination of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, as the case may be, (ii) no Person (excluding any
employee benefit plan (or related trust) of the Company or such corporation
resulting from such Business Combination) beneficially owns, directly or
indirectly, thirty percent (30%) or more of, respectively, the then outstanding
shares of common stock of the corporation resulting from such Business
Combination or the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such ownership existed
prior to the Business Combination, and (iii) at least a majority of the
members of the board of directors of the corporation resulting from such
Business Combination were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board, providing
for such Business Combination; or

 

(d)                                 Approval by the shareholders of the Company of
a complete liquidation or dissolution of the Company.

 

3.                                       Compensation Upon Certain Terminations of
Employment Following a Change of Control.  In the event the Executive’s
employment is terminated or Constructively Terminated by reason of Change of
Control that occurs during the Change of Control Period, the following shall be
applicable:

 

3

 

(a)                                  The Executive shall be entitled to receive, at
her option, either (i) a lump sum cash payment equal to one (1) times
the Executive’s annual base salary, which shall be due within thirty (30) days
after the Date of Termination or (ii) twelve (12) equal monthly
installments which in aggregate shall be equal to one (1) times the
Executive’s annual base salary, the first payment of which shall be due within thirty
(30) days after the Date of Termination. 
For purposes of this Agreement, “annual base salary” shall mean one (1) year
of base salary, at the highest base salary rate that Executive was paid by the
Company in the twelve (12) months prior to the Date of Termination (the “Look
Back Period”).

 

(b)                                 The Company shall continue to pay any health
insurance benefits as were provided to Executive and his family under the plans
of the Company as of the Change of Control for a period of twelve (12) months
following the Date of Termination.

 

(c)                                  All outstanding stock options previously granted
under any Company stock option plan, whether vested or unvested, shall be
accelerated and become immediately exercisable for a period of six (6) months
after the Date of Termination.

 

(d)                                 Notwithstanding the foregoing, the Company
shall have no obligation to make any payment or offer any benefits under this Section 3
if the Executive’s employment is terminated for Cause, death, Disability,
retirement or resignation other than for good reason following a Change of
Control.

 

4.                                       Non-Exclusivity of Rights. 
Nothing in this Agreement shall prevent or limit the Executive’s
continuing or future participation in any plan, practice, policy or program
provided by the Company or any of its affiliated companies and for which the
Executive may qualify, nor shall anything herein limit or otherwise affect such
rights as the Executive may have under any contract or agreement with the
Company or any of its affiliated companies. 
Amounts which are vested benefits or which the Executive is otherwise
entitled to receive under any plan, policy, practice or program of or any
contract or agreement with the Company or any of its affiliated companies at or
subsequent to the Date of Termination shall be payable in accordance with such
plan, practice, policy or program or contract or agreement except as explicitly
modified by this Agreement.

 

5.                                       Full Settlement.  The
Company’s obligation to make the payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action
which the Company may have against the Executive or others.

 

6.                                       Duty to Mitigate.  In no
event shall the Executive be obligated to seek other employment or take any
other action by way of mitigation of the amounts payable to the Executive under
any of the provisions of this Agreement and such amounts shall not be reduced
whether or not the Executive obtains other employment.

 

4

 

7.                                       Fees and Expenses.  The
Company agrees to pay as incurred, to the full extent permitted by law, all
legal fees and expenses which the Executive may reasonably incur as a result of
any contest (regardless of the outcome thereof) by the Company, the Executive
or others of the validity or enforceability of, or liability under, any
provision of this Agreement or any guarantee of performance thereof (including
as a result of any contest by the Executive about the amount of any payment
pursuant to this Agreement), plus in each case interest on any delayed payment
at the applicable Federal rate provided for in Section 7872(f)(2)(A) of
the Internal Revenue Code of 1986, as amended (the “Code”).

 

8.                                       Tax.

 

(a)                                  The Company shall have no liability for any
tax liability of Executive attributable to any payments made under this
Agreement.  The Company may withhold from
any amounts payable under this Agreement such Federal, state, local or foreign
taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

 

(b)                                 Anything in this Agreement to the contrary
notwithstanding, (1) in the event that any payment to or for the Executive’s
benefit (whether payable pursuant to the terms of this Agreement or otherwise)
would not be deductible by the Company as a result of Section 280G of the Code
then the aggregate amount payable under Section 3 shall be reduced (but
not below zero dollars), so that after giving effect to such reduction, no
payment made to or for the Executive’s benefit will fail to be deductible
because of Section 280G, and (2) if the Executive establishes (in
accordance with Section 280G) that all or any portion of the aggregate “parachute
payments” (as defined in Section 280G) payable to or for the Executive’s
benefit constitute reasonable compensation for services actually rendered, and
if the present value of all such “parachute payments” which constitute
reasonable compensation exceeds two hundred ninety-nine percent (299%) of the
Executive’s “base amount” (as defined in Section 280G), then the Executive
shall be entitled to receive an amount equal to (but not greater than) the
present value of all such “parachute payments” which constitute reasonable
compensation.  For purposes of this Section 8(b),
the “present value” of any payment shall be determined in accordance with Section 1274(b)(2) of
the Code.  If it is established that,
notwithstanding the good faith of the Executive and the Company in applying the
terms of this Section 8(b), the aggregate “parachute payments” paid to or
for the Executive’s benefit are in an amount that would result in any portion
of such “parachute payments” not being deductible, then the Executive shall
have an obligation to pay the Company upon demand an amount equal to the sum of
(1) the excess of the aggregate “parachute payments” paid to or for the
Executive’s benefit over the aggregate “parachute payments” that could have
been paid to or for the Executive’s benefit without any portion of such “parachute
payments” not being deductible; and (2) interest on the amount set forth in
clause (1) of this sentence at the applicable federal rate (as defined in Section 1274(d) of
the Code) from the date of the receipt of such excess by or for the Executive’s
behalf until the date of such payment.

 

5

 

9.                                       Successors.

 

(a)                                  This Agreement is personal to the Executive
and without the prior written consent of the Company shall not be assignable by
the Executive otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure
to the benefit of and be enforceable by the Executive’s legal representatives.

 

(b)                                 This Agreement shall inure to the benefit of
and be binding upon the Company and its successors and assigns.

 

(c)                                  The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to
assume expressly and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place.  As used in
this Agreement, “Company” shall mean the Company as hereinbefore defined and
any successor to its business and/or assets as aforesaid.

 

10.                                 Miscellaneous.

 

(a)                                  Choice of Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of California, without reference to principles of conflict of laws.  The captions of this Agreement are not part
of the provisions hereof and shall have no force or effect.  This Agreement may not be amended or modified
otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

 

(b)                                 Notices. All notices and other communications hereunder shall be in writing and
shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as
follows:

 

If to the Executive:

Robert S. Chilton

21101 Oxnard Street

Woodland Hills, California 91367

 

If to the Company:

 

HemaCare Corporation

21101 Oxnard Street

Woodland Hills, California 91367

Phone: 877-310-0717 • Fax: 818-251-5300

 

or to such other address as either party shall
have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.

 

6

 

(c)                                  Validity.  The invalidity or
unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

 

(d)                                 Headings.  All captions and section headings
used in this Agreement are for convenient reference only and do not forma part
of this Agreement.

 

(e)                                  Waiver.  No provision of this Agreement
shall be modified, waived or discharged unless such modification, waiver or
discharge is agreed to and signed in writing by Executive and an authorized
officer of the Company (other than Executive).

 

(f)                                    Counterparts.  This Agreement may be executed
in counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument.

 

[Remainder of page left blank
intentionally.]

 

7

 

IN WITNESS WHEREOF, the
Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these
presents to be executed in its name on its behalf, all as of the day and year
first above written.

 

 

	
   

  	
  HemaCare Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Judi Irving

  	
   

  
	
   

  	
  Name:

  	
  Judi Irving

  	
   

  
	
   

  	
  Title:

  	
  President and Chief
  Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Executive

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Chilton

  	
   

  
	
   

  	
  Name: 

  	
  Robert S. Chilton

  	
   

  
	
   

  	
  Title:

  	
  Executive Vice President
  and Chief

  	
   

  
	
   

  	
   

  	
  Financial Officer

  	
   

  
										

 

8

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