Document:

Exhibit 10.1

 

FORM OF INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION
AGREEMENT (the “Agreement”) is
made and entered into as of April     , 2009 between KEMET CORPORATION, a Delaware corporation
(the “Company”), and
                      
(“Indemnitee”).

 

WHEREAS,
highly competent persons have become more reluctant to serve corporations as
officers and directors or in other capacities unless they are provided with
adequate protection through insurance or adequate indemnification against
inordinate risks of claims and actions against them arising out of their
service to and activities on behalf of the corporation;

 

WHEREAS,
the Board of Directors of the Company (the “Board”)
has determined that, in order to attract and retain qualified
individuals, the Company will attempt to maintain on an ongoing basis, at its
sole expense, liability insurance to protect persons serving the Company and
its subsidiaries from certain liabilities. Although the furnishing of such
insurance has been a customary and widespread practice among United
States-based corporations and other business enterprises, the Company believes
that, given current market conditions and trends, such insurance may be
available to it in the future only at higher premiums and with more exclusions.
At the same time, directors, officers, and other persons in service to
corporations or business enterprises are being increasingly subjected to
expensive and time-consuming litigation relating to, among other things,
matters that traditionally would have been brought only against the Company or
business enterprise itself.  The By-laws
of the Company require indemnification of the officers and directors of the
Company.  Indemnitee may also be entitled
to indemnification pursuant to the General Corporation Law of the State of
Delaware (“DGCL”). The By-laws and
the DGCL expressly provide that the indemnification provisions set forth
therein are not exclusive, and thereby contemplate that contracts may be
entered into between the Company and members of the board of directors,
officers and other persons with respect to indemnification;

 

WHEREAS,
the uncertainties relating to such insurance and to indemnification have
increased the difficulty of attracting and retaining such persons;

 

WHEREAS,
the Board has determined that the increased difficulty in attracting and
retaining such persons is detrimental to the best interests of the Company’s
stockholders and that the Company should act to assure such persons that there
will be increased certainty of such protection in the future;

 

WHEREAS,
it is reasonable, prudent and necessary for the Company contractually to
obligate itself to indemnify, and to advance expenses on behalf of, such
persons to the fullest extent permitted by applicable law so that they will
serve or continue to serve the Company free from undue concern that they will
not be so indemnified;

 

WHEREAS,
this Agreement is a supplement to and in furtherance of the By-laws of the
Company and any resolutions adopted pursuant thereto, and shall not be deemed a
substitute therefor, nor to diminish or abrogate any rights of Indemnitee
thereunder;

 

WHEREAS,
Indemnitee does not regard the protection available under the Company’s By-laws
and insurance as adequate in the present circumstances, and may not be willing
to serve as an officer or director without adequate protection, and the Company
desires Indemnitee to 

 

 

serve in such capacity.
Indemnitee is willing to serve, continue to serve and to take on additional
service for or on behalf of the Company on the condition that he be so
indemnified; and

 

NOW,
THEREFORE, in consideration of Indemnitee’s agreement to continue to serve as a
director after the date hereof, the parties hereto agree as follows:

 

1.             Indemnity
of Indemnitee. The Company hereby agrees to hold harmless and indemnify
Indemnitee to the fullest extent permitted by law, as such may be amended from
time to time. In furtherance of the foregoing indemnification, and without
limiting the generality thereof:

 

(a)           Proceedings
Other Than Proceedings by or in the Right of the Company. Indemnitee shall be
entitled to the rights of indemnification provided in this Section 1(a) if,
by reason of his Corporate Status (as hereinafter defined), the Indemnitee is,
or is threatened to be made, a party to or participant in any Proceeding (as
hereinafter defined) other than a Proceeding by or in the right of the Company.
Pursuant to this Section 1(a), Indemnitee shall be indemnified
against all Expenses (as hereinafter defined), judgments, penalties, fines and
amounts paid in settlement actually and reasonably incurred by him, or on his
behalf, in connection with such Proceeding or any claim, issue or matter
therein, if the Indemnitee acted in good faith and in a manner the Indemnitee
reasonably believed to be in or not opposed to the best interests of the
Company, and with respect to any criminal Proceeding, had no reasonable cause
to believe the Indemnitee’s conduct was unlawful.

 

(b)           Proceedings
by or in the Right of the Company. Indemnitee shall be entitled to the
rights of indemnification provided in this Section 1(b) if, by
reason of his Corporate Status, the Indemnitee is, or is threatened to be made,
a party to or participant in any Proceeding brought by or in the right of the
Company. Pursuant to this Section 1(b), Indemnitee shall be
indemnified against all Expenses actually and reasonably incurred by the
Indemnitee, or on the Indemnitee’s behalf, in connection with such Proceeding
if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably
believed to be in or not opposed to the best interests of the Company;
provided, however, if applicable law so provides, no indemnification against
such Expenses shall be made in respect of any claim, issue or matter in such
Proceeding as to which Indemnitee shall have been adjudged to be liable to the
Company unless and to the extent that the Court of Chancery of the State of
Delaware shall determine that such indemnification may be made.

 

(c)           Indemnification
for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding
any other provision of this Agreement, to the extent that Indemnitee is, by
reason of his Corporate Status, a party to and is successful, on the merits or
otherwise, in any Proceeding, he shall be indemnified to the maximum extent
permitted by law, as such may be amended from time to time, against all
Expenses actually and reasonably incurred by him or on his behalf in connection
therewith. If Indemnitee is not wholly successful in such Proceeding but is
successful, on the merits or otherwise, as to one or more but less than all
claims, issues or matters in such Proceeding, the Company shall indemnify
Indemnitee against all Expenses actually and reasonably incurred by him or on
his behalf in connection with each successfully resolved claim, issue or
matter. For purposes of this Section and without limitation, the
termination of any claim, issue or matter in such a Proceeding by dismissal,
with or without prejudice, shall be deemed to be a successful result as to such
claim, issue or matter.

 

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2.             Additional
Indemnity. In addition to, and without regard to any limitations on, the
indemnification provided for in Section 1 of this Agreement, the
Company shall and hereby does indemnify and hold harmless Indemnitee against
all Expenses, judgments, penalties, fines and amounts paid in settlement
actually and reasonably incurred by him or on his behalf if, by reason of his
Corporate Status, he is, or is threatened to be made, a party to or participant
in any Proceeding (including a Proceeding by or in the right of the Company),
including, without limitation, all liability arising out of the negligence or
active or passive wrongdoing of Indemnitee. The only limitation that shall
exist upon the Company’s obligations pursuant to this Agreement shall be that
the Company shall not be obligated to make any payment to Indemnitee that is
finally determined (under the procedures, and subject to the presumptions, set
forth in Sections 6 and 7 hereof) to be unlawful.

 

3.             Contribution.

 

(a)           Whether
or not the indemnification provided in Sections 1 and 2 hereof is
available, in respect of any threatened, pending or completed action, suit or
proceeding in which the Company is jointly liable with Indemnitee (or would be
if joined in such action, suit or proceeding), the Company shall pay, in the
first instance, the entire amount of any judgment or settlement of such action,
suit or proceeding without requiring Indemnitee to contribute to such payment
and the Company hereby waives and relinquishes any right of contribution it may
have against Indemnitee. The Company shall not enter into any settlement of any
action, suit or proceeding in which the Company is jointly liable with
Indemnitee (or would be if joined in such action, suit or proceeding) unless
such settlement provides for a full and final release of all claims asserted
against Indemnitee.

 

(b)           Without
diminishing or impairing the obligations of the Company set forth in the
preceding subparagraph, if, for any reason, Indemnitee shall elect or be
required to pay all or any portion of any judgment or settlement in any
threatened, pending or completed action, suit or proceeding in which the
Company is jointly liable with Indemnitee (or would be if joined in such action,
suit or proceeding), the Company shall contribute to the amount of expenses
(including attorneys’ fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred and paid or payable by Indemnitee in
proportion to the relative benefits received by the Company and all officers,
directors or employees of the Company, other than Indemnitee, who are jointly
liable with Indemnitee (or would be if joined in such action, suit or
proceeding), on the one hand, and Indemnitee, on the other hand, from the
transaction from which such action, suit or proceeding arose; provided,
however, that the proportion determined on the basis of relative benefit may,
to the extent necessary to conform to law, be further adjusted by reference to
the relative fault of the Company and all officers, directors or employees of
the Company other than Indemnitee who are jointly liable with Indemnitee (or
would be if joined in such action, suit or proceeding), on the one hand, and
Indemnitee, on the other hand, in connection with the events that resulted in
such expenses, judgments, fines or settlement amounts, as well as any other
equitable considerations which the Law may require to be considered. The
relative fault of the Company and all officers, directors or employees of the
Company, other than Indemnitee, who are jointly liable with Indemnitee (or
would be if joined in such action, suit or proceeding), on the one hand, and
Indemnitee, on the other hand, shall be determined by reference to, among other
things, the degree to which their actions were motivated by intent to 

 

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gain personal profit or advantage, the degree
to which their liability is primary or secondary and the degree to which their
conduct is active or passive.

 

(c)           The
Company hereby agrees to fully indemnify and hold Indemnitee harmless from any
claims of contribution which may be brought by officers, directors or employees
of the Company, other than Indemnitee, who may be jointly liable with Indemnitee.

 

(d)           To
the fullest extent permissible under applicable law, if the indemnification
provided for in this Agreement is unavailable to Indemnitee for any reason
whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute
to the amount incurred by Indemnitee, whether for judgments, fines, penalties,
excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in
connection with any claim relating to an indemnifiable event under this
Agreement, in such proportion as is deemed fair and reasonable in light of all
of the circumstances of such Proceeding in order to reflect (i) the
relative benefits received by the Company and Indemnitee as a result of the
event(s) and/or transaction(s) giving cause to such Proceeding; and/or
(ii) the relative fault of the Company (and its directors, officers,
employees and agents) and Indemnitee in connection with such event(s) and/or
transaction(s).

 

4.             Indemnification
for Expenses of a Witness. Notwithstanding any other provision of this Agreement,
to the extent that Indemnitee is, by reason of his Corporate Status, a witness
in any Proceeding to which Indemnitee is not a party, he shall be indemnified
against all Expenses actually and reasonably incurred by him or on his behalf
in connection therewith.

 

5.             Advancement
of Expenses. Notwithstanding any other provision of this Agreement, the
Company shall advance all Expenses incurred by or on behalf of Indemnitee in
connection with any Proceeding by reason of Indemnitee’s Corporate Status within
thirty (30) days after the receipt by the Company of a statement or statements
from Indemnitee requesting such advance or advances from time to time, whether
prior to or after final disposition of such Proceeding. Such statement or
statements shall reasonably evidence the Expenses incurred by Indemnitee and
shall include or be preceded or accompanied by an undertaking by or on behalf
of Indemnitee to repay any Expenses advanced if it shall ultimately be
determined that Indemnitee is not entitled to be indemnified against such
Expenses. Any advances and undertakings to repay pursuant to this Section 5
shall be unsecured and interest free.

 

6.             Procedures
and Presumptions for Determination of Entitlement to Indemnification. It is
the intent of this Agreement to secure for Indemnitee rights of indemnity that
are as favorable as may be permitted under the Delaware General Corporation Law
and public policy of the State of Delaware. Accordingly, the parties agree that
the following procedures and presumptions shall apply in the event of any
question as to whether Indemnitee is entitled to indemnification under this
Agreement:

 

(a)           To
obtain indemnification under this Agreement, Indemnitee shall submit to the
Company a written request, including therein or therewith such documentation
and information as is reasonably available to Indemnitee and is reasonably
necessary to determine whether and to what extent Indemnitee is entitled to
indemnification. The Secretary of the Company shall, promptly upon receipt of
such a request for indemnification, advise the Board of Directors in writing
that Indemnitee has requested indemnification.

 

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(b)           Upon
written request by Indemnitee for indemnification pursuant to the first sentence
of Section 6(a) hereof, a determination, if required by
applicable law, with respect to Indemnitee’s entitlement thereto shall be made
in the specific case by one of the following four methods, which shall be at
the election of the board: (1) by a majority vote of the disinterested
directors, even though less than a quorum, (2) by a committee of
disinterested directors designated by a majority vote of the disinterested
directors, even though less than a quorum, (3) if there are no
disinterested directors or if the disinterested directors so direct, by
independent legal counsel in a written opinion to the Board of Directors, a
copy of which shall be delivered to the Indemnitee, or (4) if so directed
by the Board of Directors, by the stockholders of the Company. For purposes
hereof, disinterested directors are those members of the board of directors of
the Company who are not parties to the action, suit or proceeding in respect of
which indemnification is sought by Indemnitee.

 

(c)           If
the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 6(b) hereof, the
Independent Counsel shall be selected as provided in this Section 6(c).
The Independent Counsel shall be selected by the Board of Directors. Indemnitee
may, within 10 days after such written notice of selection shall have been
given, deliver to the Company, as the case may be, a written objection to such
selection; provided, however, that such objection may be asserted only on the
ground that the Independent Counsel so selected does not meet the requirements
of “Independent Counsel” as
defined in Section 13 of this Agreement, and the objection shall
set forth with particularity the factual basis of such assertion. Absent a
proper and timely objection, the person so selected shall act as Independent
Counsel. If a written objection is made and substantiated, the Independent
Counsel selected may not serve as Independent Counsel unless and until such
objection is withdrawn or a court has determined that such objection is without
merit. If, within 20 days after submission by Indemnitee of a written request
for indemnification pursuant to Section 6(a) hereof, no
Independent Counsel shall have been selected and not objected to, either the
Company or Indemnitee may petition the Court of Chancery of the State of
Delaware or other court of competent jurisdiction for resolution of any
objection which shall have been made by the Indemnitee to the Company’s
selection of Independent Counsel and/or for the appointment as Independent
Counsel of a person selected by the court or by such other person as the court
shall designate, and the person with respect to whom all objections are so
resolved or the person so appointed shall act as Independent Counsel under Section 6(b) hereof.
The Company shall pay any and all reasonable fees and expenses of Independent
Counsel incurred by such Independent Counsel in connection with acting pursuant
to Section 6(b) hereof, and the Company shall pay all
reasonable fees and expenses incident to the procedures of this Section 6(c),
regardless of the manner in which such Independent Counsel was selected or
appointed.

 

(d)           In
making a determination with respect to entitlement to indemnification
hereunder, the person or persons or entity making such determination shall
presume that Indemnitee is entitled to indemnification under this Agreement.
Anyone seeking to overcome this presumption shall have the burden of proof and
the burden of persuasion by clear and convincing evidence. Neither the failure
of the Company (including by its directors or independent legal counsel) to
have made a determination prior to the commencement of any action pursuant to
this Agreement that indemnification is proper in the circumstances because
Indemnitee has met the applicable standard of conduct, nor an actual
determination by the Company (including by its directors or independent legal
counsel) that Indemnitee has not met such applicable standard of conduct, 

 

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shall be a defense to the action or create a
presumption that Indemnitee has not met the applicable standard of conduct.

 

(e)           Indemnitee
shall be deemed to have acted in good faith if Indemnitee’s action is based on
the records or books of account of the Enterprise, including financial
statements, or on information supplied to Indemnitee by the officers of the
Enterprise (as hereinafter defined) in the course of their duties, or on the
advice of legal counsel for the Enterprise or on information or records given or
reports made to the Enterprise by an independent certified public accountant or
by an appraiser or other expert selected with reasonable care by the
Enterprise. In addition, the knowledge and/or actions, or failure to act, of
any director, officer, agent or employee of the Enterprise shall not be imputed
to Indemnitee for purposes of determining the right to indemnification under
this Agreement. Whether or not the foregoing provisions of this Section 
6(e) are satisfied, it shall in any event be presumed that Indemnitee
has at all times acted in good faith and in a manner he reasonably believed to
be in or not opposed to the best interests of the Company. Anyone seeking to
overcome this presumption shall have the burden of proof and the burden of
persuasion by clear and convincing evidence.

 

(f)            If
the person, persons or entity empowered or selected under Section 6
to determine whether Indemnitee is entitled to indemnification shall not have
made a determination within sixty (60) days after receipt by the Company of the
request therefor, the requisite determination of entitlement to indemnification
shall be deemed to have been made and Indemnitee shall be entitled to such
indemnification absent (i) a misstatement by Indemnitee of a material
fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for
indemnification, or (ii) a prohibition of such indemnification under
applicable law; provided, however, that such 60-day period may be extended for
a reasonable time, not to exceed an additional thirty (30) days, if the person,
persons or entity making such determination with respect to entitlement to
indemnification in good faith requires such additional time to obtain or
evaluate documentation and/or information relating thereto; and provided,
further, that the foregoing provisions of this Section 6(g) shall
not apply if the determination of entitlement to indemnification is to be made
by the stockholders pursuant to Section 6(b) of this Agreement
and if (A) within fifteen (15) days after receipt by the Company of the
request for such determination, the Board of Directors or the Disinterested
Directors, if appropriate, resolve to submit such determination to the
stockholders for their consideration at an annual meeting thereof to be held
within seventy-five (75) days after such receipt and such determination is made
thereat, or (B) a special meeting of stockholders is called within fifteen
(15) days after such receipt for the purpose of making such determination, such
meeting is held for such purpose within sixty (60) days after having been so
called and such determination is made thereat.

 

(g)           Indemnitee
shall cooperate with the person, persons or entity making such determination
with respect to Indemnitee’s entitlement to indemnification, including
providing to such person, persons or entity upon reasonable advance request any
documentation or information which is not privileged or otherwise protected
from disclosure and which is reasonably available to Indemnitee and reasonably
necessary to such determination. Any Independent Counsel, member of the Board
of Directors or stockholder of the Company shall act reasonably and in good
faith in making a determination regarding the Indemnitee’s entitlement to
indemnification under this Agreement. Any costs or expenses (including
attorneys’ fees and disbursements) incurred by 

 

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Indemnitee in so cooperating with the person,
persons or entity making such determination shall be borne by the Company
(irrespective of the determination as to Indemnitee’s entitlement to
indemnification) and the Company hereby indemnifies and agrees to hold
Indemnitee harmless therefrom.

 

(h)           The
Company acknowledges that a settlement or other disposition short of final
judgment may be successful if it permits a party to avoid expense, delay,
distraction, disruption and uncertainty. In the event that any action, claim or
proceeding to which Indemnitee is a party is resolved in any manner other than
by adverse judgment against Indemnitee (including, without limitation,
settlement of such action, claim or proceeding with or without payment of money
or other consideration) it shall be presumed that Indemnitee has been successful
on the merits or otherwise in such action, suit or proceeding. Anyone seeking
to overcome this presumption shall have the burden of proof and the burden of
persuasion by clear and convincing evidence.

 

(i)            The
termination of any Proceeding or of any claim, issue or matter therein, by
judgment, order, settlement or conviction, or upon a plea of nolo contendere or
its equivalent, shall not (except as otherwise expressly provided in this
Agreement) of itself adversely affect the right of Indemnitee to indemnification
or create a presumption that Indemnitee did not act in good faith and in a
manner which he reasonably believed to be in or not opposed to the best
interests of the Company or, with respect to any criminal Proceeding, that
Indemnitee had reasonable cause to believe that his conduct was unlawful.

 

7.             Remedies
of Indemnitee.

 

(a)           In
the event that (i) a determination is made pursuant to Section 6
of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 5
of this Agreement, (iii) no determination of entitlement to
indemnification is made pursuant to Section 6(b) of this
Agreement within 90 days after receipt by the Company of the request for
indemnification, (iv) payment of indemnification is not made pursuant to
this Agreement within ten (10) days after receipt by the Company of a
written request therefor or (v) payment of indemnification is not made
within ten (10) days after a determination has been made that Indemnitee
is entitled to indemnification or such determination is deemed to have been
made pursuant to Section 6 of this Agreement, Indemnitee shall be
entitled to an adjudication in an appropriate court of the State of Delaware,
or in any other court of competent jurisdiction, of Indemnitee’s entitlement to
such indemnification. Indemnitee shall commence such proceeding seeking an
adjudication within 180 days following the date on which Indemnitee first has
the right to commence such proceeding pursuant to this Section 7(a).  The Company shall not oppose Indemnitee’s
right to seek any such adjudication.

 

(b)           In
the event that a determination shall have been made pursuant to Section 6(b) of
this Agreement that Indemnitee is not entitled to indemnification, any judicial
proceeding commenced pursuant to this Section 7 shall be conducted
in all respects as a de novo trial on the merits, and Indemnitee shall not be
prejudiced by reason of the adverse determination under Section 6(b).

 

(c)           If
a determination shall have been made pursuant to Section 6(b) of
this Agreement that Indemnitee is entitled to indemnification, the Company
shall be bound by such determination in

 

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any judicial proceeding commenced pursuant to
this Section 7, absent (i) a misstatement by Indemnitee of a
material fact, or an omission of a material fact necessary to make Indemnitee’s
misstatement not materially misleading in connection with the application for
indemnification, or (ii) a prohibition of such indemnification under
applicable law.

 

(d)           In
the event that Indemnitee, pursuant to this Section 7, seeks a
judicial adjudication of his rights under, or to recover damages for breach of,
this Agreement, or to recover under any directors’ and officers’ liability
insurance policies maintained by the Company, the Company shall pay on his
behalf, in advance, any and all expenses (of the types described in the
definition of Expenses in Section 13 of this Agreement) actually
and reasonably incurred by him in such judicial adjudication, regardless of
whether Indemnitee ultimately is determined to be entitled to such
indemnification, advancement of expenses or insurance recovery.

 

(e)           The
Company shall be precluded from asserting in any judicial proceeding commenced
pursuant to this Section 7 that the procedures and presumptions of
this Agreement are not valid, binding and enforceable and shall stipulate in
any such court that the Company is bound by all the provisions of this
Agreement. The Company shall indemnify Indemnitee against any and all Expenses
and, if requested by Indemnitee, shall (within ten (10) days after receipt
by the Company of a written request therefore) advance, to the extent not
prohibited by law, such expenses to Indemnitee, which are incurred by
Indemnitee in connection with any action brought by Indemnitee for
indemnification or advance of Expenses from the Company under this Agreement or
under any directors’ and officers’ liability insurance policies maintained by
the Company, regardless of whether Indemnitee ultimately is determined to be
entitled to such indemnification, advancement of Expenses or insurance
recovery, as the case may be.

 

(f)            Notwithstanding
anything in this Agreement to the contrary, no determination as to entitlement
to indemnification under this Agreement shall be required to be made prior to
the final disposition of the Proceeding.

 

8.             Non-Exclusivity;
Survival of Rights; Insurance; Subrogation.

 

(a)           The
rights of indemnification as provided by this Agreement shall not be deemed
exclusive of any other rights to which Indemnitee may at any time be entitled
under applicable law, the certificate of incorporation of the Company, the
Bylaws, any agreement, a vote of stockholders, a resolution of directors or
otherwise. No amendment, alteration or repeal of this Agreement or of any
provision hereof shall limit or restrict any right of Indemnitee under this
Agreement in respect of any action taken or omitted by such Indemnitee in his
Corporate Status prior to such amendment, alteration or repeal. To the extent
that a change in the Delaware General Corporation Law, whether by statute or
judicial decision, permits greater indemnification than would be afforded
currently under the Bylaws and this Agreement, it is the intent of the parties
hereto that Indemnitee shall enjoy by this Agreement the greater benefits so
afforded by such change. No right or remedy herein conferred is intended to be
exclusive of any other right or remedy, and every other right and remedy shall
be cumulative and in addition to every other right and remedy given hereunder
or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other right or remedy.

 

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(b)           To
the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors, officers, employees, or agents or
fiduciaries of the Company or of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise that such person
serves at the request of the Company, Indemnitee shall be covered by such
policy or policies in accordance with its or their terms to the maximum extent
of the coverage available for any director, officer, employee, agent or
fiduciary under such policy or policies. If, at the time of the receipt of a
notice of a claim pursuant to the terms hereof, the Company has director and
officer liability insurance in effect, the Company shall give prompt notice of
the commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of the Indemnitee, all amounts payable as a result of such proceeding in
accordance with the terms of such policies. 
The Company shall use reasonable best efforts to notify any person that
is covered by such insurance in the event that the then-existing policy is
cancelled or not renewed.  The Company
shall also consider in good faith providing a new run-off or tail policy to
cover any person who leaves or retires from service with the Company to provide
similar benefits to such person covering the period of service with the
Company, subject to cost and availability issues.

 

(c)           In
the event of any payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of recovery of Indemnitee,
who shall execute all papers required and take all action necessary to secure
such rights, including execution of such documents as are necessary to enable
the Company to bring suit to enforce such rights.

 

(d)           The
Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has
otherwise actually received such payment under any insurance policy, contract,
agreement or otherwise.

 

(e)           The
Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee
who is or was serving at the request of the Company as a director, officer,
employee or agent of any other corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise shall be reduced by any amount
Indemnitee has actually received as indemnification or advancement of expenses
from such other corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise.

 

9.             Exception
to Right of Indemnification. Notwithstanding any provision in this
Agreement, the Company shall not be obligated under this Agreement to make any
indemnity in connection with any claim made against Indemnitee:

 

(a)           for
which payment has actually been made to or on behalf of Indemnitee under any
insurance policy or other indemnity provision, except with respect to any
excess beyond the amount paid under any insurance policy or other indemnity
provision; or

 

(b)           for
an accounting of profits made from the purchase and sale (or sale and purchase)
by Indemnitee of securities of the Company within the meaning of Section l6(b) of
the Securities Exchange Act of 1934, as amended, or similar provisions of state
statutory law or common law;

 

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(c)           in
connection with any Proceeding (or any part of any Proceeding) initiated by
Indemnitee including any Proceeding (or any part of any Proceeding) initiated
by Indemnitee against the Company or its directors, officers, employees or
other indemnitees, unless (i) the Board of Directors of the Company
authorized the Proceeding (or any part of any Proceeding) prior to its
initiation or (ii) the Company provides the indemnification, in its sole
discretion, pursuant to the powers vested in the Company under applicable law.

 

10.           Duration
of Agreement. All agreements and obligations of the Company contained
herein shall continue during the period Indemnitee is an officer or director of
the Company (or is or was serving at the request of the Company as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise) and shall continue thereafter so long as Indemnitee
shall be subject to any Proceeding (or any proceeding commenced under Section 7
hereof) by reason of his Corporate Status, whether or not he is acting or
serving in any such capacity at the time any liability or expense is incurred
for which indemnification can be provided under this Agreement.  This Agreement shall be binding upon and
inure to the benefit of and be enforceable by the parties hereto and their
respective successors (including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business
or assets of the Company), assigns, spouses, heirs, executors and personal and
legal representatives.

 

11.           Security.
To the extent requested by Indemnitee and approved by the Board of Directors of
the Company, the Company may at any time and from time to time provide security
to Indemnitee for the Company’s obligations hereunder through an irrevocable
bank line of credit, funded trust or other collateral. Any such security, once
provided to Indemnitee, may not be revoked or released without the prior
written consent of the Indemnitee.

 

12.           Enforcement.

 

(a)           The
Company expressly confirms and agrees that it has entered into this Agreement
and assumes the obligations imposed on it hereby in order to induce Indemnitee
to serve as an officer or director of the Company, and the Company acknowledges
that Indemnitee is relying upon this Agreement in serving as an officer or
director of the Company.

 

(b)           This
Agreement constitutes the entire agreement between the parties hereto with
respect to the subject matter hereof and supersedes all prior agreements and
understandings, oral, written and implied, between the parties hereto with
respect to the subject matter hereof

 

13.           Definitions.
For purposes of this Agreement:

 

(a)           “Corporate Status” describes the status of
a person who is or was a director, officer, employee, agent or fiduciary of the
Company or of any other corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise that such person is or was serving at
the express written request of the Company.

 

(b)           “Disinterested Director” means a director
of the Company who is not and was not a party to the Proceeding in respect of
which indemnification is sought by Indemnitee.

 

10

 

(c)           “Enterprise” shall mean the Company and any
other corporation, partnership, joint venture, trust, employee benefit plan or
other enterprise that Indemnitee is or was serving at the express written
request of the Company as a director, officer, employee, agent or fiduciary.

 

(d)           “Expenses” shall include all reasonable
attorneys’ fees, retainers, court costs, transcript costs, fees of experts,
witness fees, travel expenses, duplicating costs, printing and binding costs,
telephone charges, postage, delivery service fees and all other disbursements
or expenses of the types customarily incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, participating, or
being or preparing to be a witness in a Proceeding. Expenses also shall include
Expenses incurred in connection with any appeal resulting from any Proceeding,
including without limitation the premium, security for, and other costs
relating to any cost bond, supersede as bond, or other appeal bond or its
equivalent. Expenses, however, shall not include amounts paid in settlement by
Indemnitee or the amount of judgments or fines against Indemnitee.

 

(e)           “Independent Counsel” means a law firm, or
a member of a law firm, that is experienced in matters of corporation law and
neither presently is, nor in the past five years has been, retained to
represent: (i) the Company or Indemnitee in any matter material to either
such party (other than with respect to matters concerning Indemnitee under this
Agreement, or of other indemnitees under similar indemnification agreements),
or (ii) any other party to the Proceeding giving rise to a claim for
indemnification hereunder. Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. The Company agrees to pay the
reasonable fees of the Independent Counsel referred to above and to fully
indemnify such counsel against any and all Expenses, claims, liabilities and
damages arising out of or relating to this Agreement or its engagement pursuant
hereto.

 

(f)            “Proceeding” includes any threatened,
pending or completed action, suit, arbitration, alternate dispute resolution
mechanism, investigation, inquiry, administrative hearing or any other actual,
threatened or completed proceeding, whether brought by or in the right of the
Company or otherwise and whether civil, criminal, administrative or
investigative, in which Indemnitee was, is or will be involved as a party or
otherwise, by reason of the fact that Indemnitee is or was an officer or
director of the Company, by reason of any action taken by him or of any
inaction on his part while acting as an officer or director of the Company, or
by reason of the fact that he is or was serving at the request of the Company
as a director, officer, employee, agent or fiduciary of another corporation,
partnership, joint venture, trust or other Enterprise; in each case whether or
not he is acting or serving in any such capacity at the time any liability or
expense is incurred for which indemnification can be provided under this
Agreement; including one pending on or before the date of this Agreement, but
excluding one initiated by an Indemnitee pursuant to Section 7 of
this Agreement to enforce his rights under this Agreement.

 

14.           Severability.
The invalidity of unenforceability of any provision hereof shall in no way
affect the validity or enforceability of any other provision. Without limiting
the generality of the foregoing, this Agreement is intended to confer upon
Indemnitee indemnification rights to the fullest extent permitted by applicable
laws. In the event any provision hereof conflicts with any 

 

11

 

applicable law, such provision shall be
deemed modified, consistent with the aforementioned intent, to the extent
necessary to resolve such conflict.

 

15.           Modification
and Waiver. No supplement, modification, termination or amendment of this
Agreement shall be binding unless executed in writing by both of the parties
hereto. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not
similar) nor shall such waiver constitute a continuing waiver.

 

16.           Notice
By Indemnitee. Indemnitee agrees promptly to notify the Company in writing
upon being served with or otherwise receiving any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding
or matter which may be subject to indemnification covered hereunder. The
failure to so notify the Company shall not relieve the Company of any
obligation which it may have to Indemnitee under this Agreement or otherwise
unless and only to the extent that such failure or delay materially prejudices
the Company.

 

17.           Notices.
All notices and other communications given or made pursuant to this Agreement
shall be in writing and shall be deemed effectively given: (a) upon
personal delivery to the party to be notified, (b) when sent by confirmed
electronic mail or facsimile if sent during normal business hours of the
recipient, and if not so confirmed, then on the next business day, (c) five
(5) days after having been sent by registered or certified mail, return
receipt requested, postage prepaid, or (d) one (1) day after deposit
with a nationally recognized overnight courier, specifying next day delivery,
with written verification of receipt. All communications shall be sent:

 

(a)           To
Indemnitee at the address set forth below Indemnitee signature hereto.

 

	
   

  	
  (b)       To
  the Company at:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KEMET
  Corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  101
  NE 3rd Street

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Fort
  Lauderdale, FL 33301

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attention:
  R. James Assaf, General Counsel

  	
   

  

 

or to such other address as
may have been furnished to Indemnitee by the Company or to the Company by
Indemnitee, as the case may be.

 

12

 

18.           Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the
same Agreement. This Agreement may also be executed and delivered by facsimile
signature and in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

19.           Headings.
The headings of the paragraphs of this Agreement are inserted for convenience
only and shall not be deemed to constitute part of this Agreement or to affect
the construction thereof.

 

20.           Governing
Law and Consent to Jurisdiction. This Agreement and the legal relations
among the parties shall be governed by, and construed and enforced in
accordance with, the laws of the State of Delaware, without regard to its
conflict of laws rules. The Company and Indemnitee hereby irrevocably and
unconditionally (i) agree that any action or proceeding arising out of or
in connection with this Agreement shall be brought only in the Chancery Court
of the State of Delaware (the “Delaware Court”),
and not in any other state or federal court in the United States of
America or any court in any other country, (ii) consent to submit to the
exclusive jurisdiction of the Delaware Court for purposes of any action or
proceeding arising out of or in connection with this Agreement, (iii) waive
any objection to the laying of venue of any such action or proceeding in the
Delaware Court, and (iv) waive, and agree not to plead or to make, any
claim that any such action or proceeding brought in the Delaware Court has been
brought in an improper or inconvenient forum.

 

SIGNATURE PAGE TO FOLLOW

 

13

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement on and as of the day and year first
above written.

 

	
   

  	
  KEMET CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
                                  

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
					

 

 

 

14Exhibit 10.1

 

	
  

  	
  ICU Medical, Inc.

  

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT
is made and entered into as of this first day of January 2009, by and
between ICU Medical, Inc., a Delaware corporation (“Employer”), and George
A. Lopez (“Employee”).

 

RECITALS

 

A.            Employer is engaged in the business of developing and
manufacturing safe medical connectors.

 

B.            Employer desires to employ Employee, and Employee
desires to be employed, on the terms and conditions set forth in this
Agreement.

 

C.            Prior to or contemporaneously with the date of this
Agreement, Employee and the Company have entered into an Indemnification
Agreement and a Confidentiality and Inventions Agreement.

 

AGREEMENT

 

Accordingly, in
consideration of the mutual covenants contained herein, the parties agree as
follows:

 

1.             TERMS OF AGREEMENT

 

1.1          Initial Term  
The
initial term of this agreement shall begin on January 1, 2009 and shall
continue until December 31, 2009 unless it is terminated earlier pursuant
to Section 5.

 

1.2          Renewal Terms    Notwithstanding
Section 1.1, this Agreement shall be extended and continue in effect,
subject to Section 5, until the earlier of (i) the execution by
Employer and Employee of an amendment extending this Agreement or a new
employment agreement or (ii) March 31, 2010 if, but only if, at December 31,
2009 each of the following is true:

 

a.  This Agreement has not been terminated
pursuant to Section 5 and    Employer
has not notified Employee of a termination pursuant to Section 5;

 

b.  Neither Employer nor Employee has notified
the other of its or his       intention not to extend or renew this
Agreement; and

 

1

 

c.  The parties have not yet executed an
amendment extending this Agreement or a new employment agreement.

 

Neither this Agreement
nor the employment of Employee will in any event continue beyond March 31,
2010 unless Employer and Employee execute an amendment extending this Agreement
or a new employment agreement by such date.

 

2.             EMPLOYMENT

 

2.1          Employment of Employee.  Employer
hereby hires Employee as President and Chief Executive Officer.  Employee hereby accepts such employment on
the terms and conditions of this Agreement.

 

2.2          Position and Duties.    Employee
shall serve, as  President and Chief
Executive Officer of Employer and shall have the general powers and duties of
management usually vested in that office in a corporation and such other powers
and duties as may be prescribed by the Board of Directors or the Bylaws of
Employer.  In this position, Employee will
report directly to, and be subject to the supervision of the Board of
Directors.

 

2.3          Standard of Performance.  Employee
agrees that he will at all times faithfully and industriously and to the best
of his/her ability, experience and talents perform all of the duties that may
be required of and from him/her pursuant to the terms of this Agreement.  Such duties shall be performed at such place
or places as the interests, needs, business and opportunities of Employer shall
require or render advisable.

 

2.4          Exclusive Service.  Employee shall
devote all of his business energies and abilities and all of his productive
time to the performance of his duties under this Agreement (reasonable absences
during holidays and vacations excepted), and shall not, without the prior
written consent of Employer, render to others any service of any kind (whether
or not for compensation) that, in the opinion of Employer, would materially
interfere with the performance of his/her duties under this Agreement.

 

Employee shall not,
without the prior written consent of Employer, maintain any affiliation with,
whether as an agent, consultant, employee, officer, director, trustee or
otherwise, nor shall s/he directly or indirectly render any services of an
advisory nature or otherwise to, or participate or engage in, any other
business activity that conflict with Employee’s obligations to the Company.

 

3.             COMPENSATION

 

3.1          Compensation.  During the
term of this Agreement, Employer shall pay the amounts and provide the benefits
described in this Section 3, and Employee agrees to accept such amounts
and benefits in full payment for Employee’s services under this Agreement.

 

2

 

3.2          Base Salary.  Employer shall
pay to Employee a base salary of $ 500,000 annually in equal installments
payable no less frequently than semi-monthly.

 

3.3          Incentive Bonus Compensation. 
Employee
shall be eligible to receive a bonus equal to $500,000 which is equal to
one-hundred (100%) percent of the base salary, as set forth in section 3.2.  Terms and conditions of payment of this bonus
shall be determined by the Compensation Committee,  Board of Directors of Employer.

 

3.4          Special Bonus. 
(see
ADDENDUM TO EMPLOYMENT AGREEMENT JANUARY-DECEMBER 2009).

 

3.5          Fringe Benefits.  Subject to Section 3.6
and upon satisfaction of the applicable eligibility requirements, Employee
shall be entitled to all fringe benefits which Employer may make generally
available from time to time for its executive employees.  Such benefits shall include without
limitation those available, if any, under any group insurance, profit sharing,
pension or retirement plans or sick leave policy.

 

3.6          Vacation and Holiday.  Employee shall
be entitled to vacations and holidays.  Employee is entitled to additional vacation
time entirely at the sole discretion of employee.

 

3.7          Deduction from Compensation.  Employer shall
deduct and withhold from all compensation payable to Employee all amounts
required to be deducted or withheld pursuant to any present or future law,
ordinance, regulation, order, writ, judgment, or decree requiring such
deduction and withholding.

 

3.8          Disability Severance Benefits.  Should
Employee’s employment hereunder be terminated by reason of his/her total and
permanent disability, which renders the Employee unable to perform the
essential functions of his/her job, with or without reasonable accommodation, Employer
shall pay Employee, within 30 days of termination, a lump sum severance payment
equal to 50% of the base salary in Section 3.2,  and regularly accrued salary for any pay
periods worked by the employee, but not paid. 
Total and permanent disability means Employee is unable to perform
his/her duties with or without reasonable accommodation for a consecutive
period of six months due to bodily injury or sickness, including mental or
nervous disorder, as determined by a physician selected by Employer and
acceptable to the Employee or his/her legal representative,  and while disabled s/he does not engage in any
employment for wage or profit.

 

Employer’s obligation to
pay disability severance benefits shall be reduced by any payments for which
s/he and his/her dependents are eligible under the Federal Social Security Act,
and any payment to which s/he is eligible under the Worker’s Compensation Law,
Unemployment Insurance Code or other similar legislation, or under any other
plan or insurance maintained and paid for by Employer providing benefits for
loss of time from disability or unemployment.

 

3

 

4.             REIMBURSEMENT OF EXPENSES

 

Employer shall pay to or
reimburse Employee for those travel, promotional and similar expenditures
incurred by Employee which Employer determines are reasonably necessary for the
proper discharge of Employee’s duties under this Agreement and for which
Employee submits appropriate receipts and indicates the amount, date, location
and business character, provided that the nature and general amount of such
expenditures is either in accordance with the Company’s policies announced from
time to time or approved in advance.

 

5.             TERMINATION

 

5.1          Termination Date.  The date on
which this Agreement terminates shall be the “Termination Date.”  After the Termination Date, Employee shall
not be employed by Employer, Employer shall promptly pay to Employee any
compensation under this Agreement accrued but unpaid as of that date, and
Employee shall not be entitled to any compensation from Employer for the
performance by Employee after that date of any obligations of Employee to Employer
under this Agreement.

 

5.2          Termination Without Cause.  Without cause,
Employer may terminate this Agreement at any time for any reason, or no reason
(including without limitation the Employee’s disability as a result of any
physical or mental condition that 
prevents Employee from performing the essential functions of the job,
with or without reasonable accommodation) by giving Employee 60 days written
notice.  If requested by Employer to do
so, Employee shall continue to perform his/her duties under this Agreement
during such 60 day period.  This
Agreement shall automatically and without further action of Employer terminate
on the death of Employee.

 

5.3          Termination For Cause.  Employer may
terminate this Agreement at any time without prior notice for “cause” or in the
event that Employee does not cure a breach of any provision of this Agreement
within five days after Employer delivers demand to Employee to cure such
breach.  For this purpose, “cause” shall
include, without limitation, (i) Employee’s insubordination, meaning the
willful failure to conform to or conduct himself/herself in accordance with the
policies and standards of Employer or the refusal to perform the duties
assigned pursuant to Section 2 or assigned by the Board of Directors; (ii) the
dishonesty of Employee; (iii) Employee’s conviction for a felony or for
fraud, embezzlement or any other act of moral turpitude; (iv) any willful
violation by Employee of laws or regulations applicable to Employer’s business;
or (v) Employee’s gross negligence or willful misconduct in the
performance of his/her duties under this Agreement which would adversely affect
the business or reputation of Employer. 
A termination by Employee at any time after the occurrence of an event
which would constitute cause for termination by Employer shall be considered a
termination by Employer for cause.

 

5.4          Return of Employer Property.  Within five
days after the Termination Date, Employee shall return to Employer all
products, books, records, forms, specifications, formulae, data processes,
designs, papers and writings relating to the business of Employer, including
without limitation proprietary or licensed computer programs, customer lists
and customer data, and/or copies or duplicates thereof in Employee’s possession
or under Employee’s control.  Employee
shall not retain any copies or duplicates of such property and all 

 

4

 

licenses granted to
him/her by Employer to use computer programs or software shall be revoked on
the Termination Date.

 

6.             NONCOMPETITION

 

6.1          Noncompetition During Employment.  During the
term of this Agreement, Employee shall not, without the prior written consent
of Employer, directly or indirectly render services of a business,
professional, or commercial nature to any person or firm, whether for
compensation or otherwise, or engage in any activity directly or indirectly or
as an officer, director, employee, consultant, or holder of more than one (1%)
percent of the capital stock of any other corporation.  Otherwise, Employee may make personal
investments in any other business so long as these investments do not require
him/her to participate in the operation of the companies in which s/he invests.

 

6.2          Non-solicitation.  Employee
acknowledges that s/he will have access at the highest level to, and the
opportunity to acquire knowledge of, valuable, confidential and proprietary
information relating to the business of the Company and, accordingly, in order
to preserve the value of such information for the Company, Employee covenants
and agrees as follows:

 

(a)            Employee shall not, during the term of this Agreement
and for a period of one year following the termination of this Agreement for
any reason, without the prior written consent of the Company, directly or
indirectly solicit any employee or contractor of the Company to terminate his
or her employment or contractor status with Company.

 

(b)            The Employee shall not, during the term of this
Agreement and thereafter, use Company trade secrets to solicit business from or
enter into a business relationship or transaction with any person or entity
that has or has had a business relationship with the Company (including, but
not limited to, customers) or disrupt, or attempt to disrupt, any relationship,
contractual or otherwise, between Company and any such person or entity.

 

7.             OTHER PROVISIONS

 

7.1          Compliance With Other Agreements.  Employee
represents and warrants to Employer that the execution, delivery and
performance of this Agreement will not conflict with or result in the violation
or breach of any term or provision of any order, judgment, injunction,
contract, agreement, commitment or other arrangement to which Employee is a
party or by which s/he is bound, including without limitation any agreement restricting
the sale of products similar to Employer’s products in any geographic location
or otherwise.  Employee acknowledges that
Employer is relying on his/her representation and warranty in entering into
this Agreement, and agrees to indemnify Employer from and against all claims,
demands, causes of actions, damages, costs or expenses (including attorneys’
fees) arising from any breach thereof.

 

7.2          Injunctive Relief.  Employee
acknowledges that the services to be rendered under this Agreement and the items
described in Sections 5.4, 6 and 7 are of a special, unique and extraordinary
character, that it would be difficult or impossible to replace such services or
to compensate Employer in money damages for a breach of this Agreement.  

 

5

 

Accordingly, Employee
agrees and consents that if s/he violates any of the provisions of this
Agreement, Employer, in addition to any other rights and remedies available
under this Agreement or otherwise, shall be entitled to temporary and permanent
injunctive relief, without the necessity of proving actual damages and without
the necessity of posting any bond or other undertaking in connection therewith.

 

7.3          Attorneys’ Fees.  The prevailing
party in any suit, arbitration or other proceeding brought to enforce any
provisions of this Agreement, shall be entitled to recover all costs and
expenses of the proceeding and investigation (not limited to court costs),
including attorneys’ fees at the hourly rates usually charged by that party’s
attorneys.

 

7.4          Nondelegable Duties.  This is a
contract for Employee’s personal services. 
The duties of Employee under this Agreement are personal and may not be
delegated or transferred in any manner whatsoever, and shall not be subject to
involuntary alienation, assignment or transfer by Employee during his/her life.

 

7.5          Entire Agreement.  No discussions
or comments made by the Employer’s agents, personnel, staff, officers or
attorneys concerning the subject matter of this Agreement evidence or imply any
agreement other than the terms specifically included herein. No provision can
be waived or modified by conduct or oral agreement either before or after
execution of this Agreement. No representation, understanding, promise or
condition shall be enforceable against any party unless it is contained in this
Agreement, except as set forth in the Indemnification Agreement and
Confidentiality and Inventions Agreement. If there is any conflict between the
terms, conditions and provisions of this Agreement and those of any other
agreement or instrument, the terms, conditions and provisions of  this Agreement shall prevail.  This Agreement is the only agreement and
understanding between the parties pertaining to the subject matter of this
Agreement, and supersedes all prior agreements, summaries of agreements,
descriptions of compensation packages, discussions, negotiations,
understandings, representations or warranties, whether verbal or written,
between the parties pertaining to such subject matter.  Notwithstanding the foregoing, the parties
intend to be bound by the terms of the Indemnification Agreement and the
Confidentiality and Inventions Agreement, the Retention Agreement entered into
as of April 18, 2001, and the Long-Term Retention Plan, which govern the
relationship of the parties with respect to subject matter of those respective
agreements.

 

7.6          Governing Law.  The validity,
construction and performance of this Agreement shall be governed by the laws,
without regard to the laws as to choice or conflict of laws, of the State of
California.

 

7.7          Severability.  The invalidity
or unenforceability of any particular provision of this Agreement shall not
affect the other provisions, and this Agreement shall be construed in all
respects as if any invalid or unenforceable provision were omitted.

 

7.8          Amendment and Waiver.  This Agreement
may be amended, modified or supplemented only by a writing executed by each of
the parties.  Either party may in writing
waive any provision of this Agreement to the extent such provision is for the
benefit of the waiving party.  No waiver
by either party of a breach of any provision of this Agreement shall be
construed as a waiver of any subsequent or different breach, and no forbearance
by a party to 

 

6

 

seek a remedy for
noncompliance or breach by the other party shall be construed as a waiver of
any right or remedy with respect to such noncompliance or breach.

 

7.9          Binding Effect.  The provisions
of this Agreement shall bind and inure to the benefit of the parties and their
respective successors and permitted assigns.

 

7.10        Notice.  Any notices or communications required or
permitted by this Agreement shall be deemed sufficiently given if in writing
and when delivered personally or 48 hours after deposit with the United State
Postal Service as registered or certified mail, postage prepaid and addressed
as follows:

 

(a)     If
to Employer, to the principal office of Employer in the State of California,
marked “Attention:  President”; or

 

(b)     If
to Employee, to the most recent address for Employee appearing in Employer’s
records.

 

7.11        Headings.  The sections and other headings contained in
this Agreement are for reference purposes only and shall not affect in any way
the meaning or interpretation of this Agreement.

 

IN
WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day and year first
above written.

 

	
   

  	
   

  	
   

  	
  EMPLOYER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ICU MEDICAL, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Michael T.
  Kovalchik, III, MD

  	
   

  	
  3/10/09

  
	
   

  	
   

  	
   

  	
  Michael T.
  Kovalchik, III, MD

  	
   

  	
  date

  
	
   

  	
   

  	
   

  	
  Chairman, Compensation
  Committee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  EMPLOYEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  George A. Lopez, M.D.

  	
   

  	
  3/10/09

  
	
   

  	
   

  	
   

  	
  George A. Lopez, M.D.

  	
   

  	
  date

  
	
   

  	
   

  	
   

  	
  President and C.E.O.

  	
   

  	
   

  

 

7

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