Document:

ex10_26.htm

    
      

      

    

    Exhibit
10.26

     

     

    FIRST
AMENDMENT TO

    EMPLOYMENT
AGREEMENT

     

     

    THIS
FIRST AMENDMENT (this “Amendment“) is entered into between Accellent Inc. (the
“Company”), and Jeremy Friedman (the “Executive”) under the following
circumstances.

     

     

    WHEREAS,
the Company and the Executive entered into an Employment Agreement on September
4, 2007 (the “Employment Agreement”); and

     

     

    WHEREAS,
the parties would like to make certain changes to the terms of the Employment
Agreement;

     

     

    NOW
THEREFORE, the Executive agrees with the Company, in consideration for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged and accepted, to amend the Employment Agreement as follows,
effective as of the date this Amendment is executed as written
below:

     

     

    1.
Section 5 (Equity Arrangements) is hereby amended by substituting the phrase “In
connection with his employment” for the phrase “Prior to or simultaneously with
the commencement of the Employment Term” as it appears in the first sentence
thereof.

     

     

    2.
Section 5 (Equity Arrangements) is hereby amended by inserting the phrase “(the
“Investment Amount”)” after the number “150,000” as it appears in the first
sentence thereof.

     

     

    3.
Section 5 (Equity Arrangements) is hereby amended by removing the phrase “of
$4.00” as it appears in the first sentence thereof.

     

     

    4.
Section 5 (Equity Arrangements) is hereby amended by adding the following
sentence after the first sentence thereof:

     

     

    “In the
event that Executive has not paid the full Investment Amount to the Company as
of the time that Executive’s Annual Bonus for either of the fiscal years ended
December 31, 2007 and 2008 becomes payable, then, notwithstanding the provisions
of Section 4 and instead of the payment of such Annual Bonus in cash, the
Company shall issue to Executive, on the date the applicable Annual Bonus could
have been paid in cash under the applicable bonus plan, a number of fully vested
shares of Common Stock having an aggregate Fair Market Value on such date equal
to the Annual Bonus for such fiscal year.

     

     

    In
connection with the foregoing, if $135,917, which equals the remaining
Investment Amount after deducting $14,083 (which represents the amount that the
Company will actually pay to Executive as an Annual Bonus in respect of the
Company’s fiscal year ending December 31, 2007) (the “Remaining Investment
Amount”), exceeds the amount actually paid to Executive as an Annual Bonus with
respect to the Company’s fiscal year ending December 31, 2008 (the “Actual 2008
Bonus”), then Executive shall pay to the Company in cash, no later than March
31, 2009, an amount equal to the excess of (x) the Remaining Investment Amount
over (y) the Actual 2008 Bonus, and the Company shall issue to Executive in
exchange therefor a number of shares of Common Stock having an aggregate Fair
Market Value on the date of such issuance equal to such payment. However, if the
Actual 2008 Bonus exceeds the Remaining Investment Amount then the Company shall
pay to Executive an amount equal to the excess of (x) the Actual 2008 Bonus over
(y) the Remaining Investment Amount in accordance with Section 4 and pursuant to
the Company’s 2008 annual incentive plan.”

     

     

    Page 1 of
3

     

     

    5.
Section 8(a) (Termination for Cause or Resignation without Good Reason) is
hereby amended by adding the following subparagraph at the end
thereof:

     

     

    “(iv) If,
prior to March 31, 2009, Executive’s employment is terminated by the Company for
Cause, or if Executive resigns without Good Reason (other than due to death or
Disability), then Executive shall pay to the Company in cash, on or before the
tenth (10th) business day following the date of termination, an amount equal to
the Remaining Investment Amount (calculated as of the date of termination) and
the Company shall issue to Executive in exchange therefor a number of shares of
Common Stock having an aggregate Fair Market Value equal to such Remaining
Investment Amount.”

     

     

     

    6. Except
as is provided in this Amendment, the Employment Agreement shall remain
unchanged and continue in full force and effect.

     

     

    To
acknowledge your agreement to the terms and conditions of this Amendment, please
sign below and return one copy to Patricia McCall by no later than March 31,
2008.

     

     

    Page 2 of
3

     

     

    

     

     

    IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of
the 31st day of March, 2008.

     

    
      	 
      	
              ACCELLENT
      INC.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	 
      /s/ Robert E. Kirby
	 
      	 
      	 
      
	 
      	
              Name:

            	       
      Robert E. Kirby
	 
      	
              Title:

            	        President,
      Chief Executive Officer and Director
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              Executive:

            	 /s/ 
      Jeremy A. Friedman       
	 
      	 
      	
                      Jeremy
      A. Friedman

            

    

     

    Page 3 of
3ex10_27.htm

     

    
      

      

    

    
Exhibit
10.27

     

     

    EMPLOYMENT
AGREEMENT

     

     

    THIS
EMPLOYMENT AGREEMENT (the “Agreement”), made this 20th day of September, 2005
(the “Effective Date”) is entered into by Accellent Corp. (pka) Medical Device
Manufacturing, Inc. (dba) Accellent, Inc., a Colorado corporation with its
principle place of business at 200 West Seventh Avenue, Collegeville, PA 19426
(the “Company”), and Michael Hassman (the “Employee”).

     

     

    WHEREAS,
the Company desires to employ the Employee on the terms and conditions contained
herein; and

     

     

    WHEREAS,
the Employee desires to be employed with the Company on the terms and conditions
contained herein;

     

     

    NOW,
THEREFORE, in consideration of the mutual covenants and promises contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged by the parties hereto, the parties agree as
follows:

     

    
      	
              1.

            	
              Term
      of Employment. The Company hereby agrees to employ the Employee, and the
      Employee hereby accepts employment with the Company, upon the terms set
      forth in this Agreement, for the period commencing on the Effective Date
      and ending on the third anniversary of the Effective Date (such period, as
      it may be extended in a writing signed by the parties hereto, the
      “Employment Period”), unless sooner terminated in accordance with the
      provisions of Section 4.

            

    

     

    

     

    
      	
              2.

            	
              Title;
      Capacity. The Employee shall serve as Vice President of Operations,
      Accellent Endoscopy and in such other position(s) as the Executive Vice
      President (EVP), General Manager (GM), Endoscopy Division may determine
      from time to time. The Employee shall have such authority as is delegated
      to him by his superiors. The Employee hereby accepts such employment and
      agrees to undertake the duties and responsibilities inherent in such
      position and such other duties and responsibilities as the EVP, GM
      Endoscopy Division or its designee shall from time to time reasonably
      assign to him. The Employee agrees to devote his entire business time,
      attention and energies to the business and interests of the Company during
      the Employment Period. The Employee agrees to abide by the rules,
      regulations, instructions, personnel practices and policies of the Company
      and any changes therein that may be adopted from time to time by the
      Company.

            

    

     

    

     

    
      	
              3.

            	
              Compensation
      and Benefits.

            

    

     

    

     

    
      	 
      	
              3.1.

            	
              Base
      Salary. The Company shall pay the Employee, pursuant to the Company’s
      normal payroll procedures for its employees, an annual base salary of
      $215,000. Such salary shall be subject to adjustment as determined by
      Company.

            

    

     

    

     

    
      	 
      	
              3.2.

            	
              Annual
      Incentive Bonus. The Employee will be eligible for an annual target bonus
      of 50% of his base salary (the “Annual Target Bonus”), based upon the
      Employee’s reaching individual and Company-related performance milestones
      to be set forth by the Company in a separate document. In addition, the
      Employee may be eligible for bonuses in excess of the Annual Target Bonus
      for his substantially exceeding the milestones set forth, as well as for
      other extraordinary performance. The setting of the performance
      milestones, as well as the determination of the amount of these bonuses,
      if any are earned, shall be determined by the President & Chief
      Executive Officer and approved by the compensation committee and the Board
      thereof in the exercise of its
discretion.

            

    

     

    

     

    
      	 
      	
              3.3.

            	
              Fringe
      Benefits. The Employee shall be eligible to participate in all bonus and
      benefit programs that the Company establishes and makes available to its
      employees, if any, to the extent that the Employee’s position, tenure,
      salary, age, health and other qualifications make him eligible to
      participate. You will receive a car allowance of $700.00 per month paid in
      a manner consistent with our standard payroll
  practices.

            

    

     

    In
recognition of your acceptance of this offer, Accellent will pay you a $25,000
sign on bonus subject to all applicable taxes and payable upon the first regular
payroll following employment start date. Upon completion of your 6 month
anniversary date, Accellent will pay you an additional $25,000 bonus subject to
all applicable taxes. The full sign on bonus amount of $50,000 is recoverable by
Accellent in the event that you voluntarily terminate employment within one year
of your start date.

     

    
      	 
      	
              3.4.

            	
              Vacation
      Accrual. The Employee will be eligible to accrue up to 1.5 days of
      vacation per month worked during the first year of service. After the
      first year of service vacation time shall be accrued according to the
      company’s exempt vacation policy. Such vacation time shall be governed by
      the Company’s procedures regarding paid time
  off.

            

    

     

    

     

    
      	 
      	
              3.5.

            	
              Reimbursement
      of Expenses. The Company shall reimburse the Employee for all reasonable
      and necessary travel, entertainment and other expenses incurred or paid by
      the Employee in connection with, or related to, the performance of his
      duties, responsibilities or services under this Agreement. Upon
      presentation by the Employee of documentation, expense statements,
      vouchers and/or such other supporting information as the Company may
      request, the employee will be reimbursed by the company for all reasonable
      expense subject to approval by the EVP/GM, Endoscopy
    Division.

            

    

     

    - 2
-

     

     

    

     

    
      	 
      	
              3.6.

            	
              Stock
      Options. Subject to approval of the Board, the Employee shall be granted
      the option to purchase 50,000 shares of the Company’s Common Stock at a
      purchase price equal to the fair market value as determined by the Board
      of Directors on the date of grant. The stock options shall be governed by
      the terms and conditions detailed in the Company’s Amended and Restated
      Stock Option and Incentive Plan and the separate stock option agreement in
      the form approved by the Board. It is intended that the stock options will
      vest 20% per year as of the date the Employee starts
      employment.

            

    

     

    

     

    
      	
              4.

            	
              Employment
      Termination. The employment of the Employee by the Company pursuant to
      this Agreement shall terminate upon the occurrence of any of the
      following:

            

    

     

    

     

    
      	 
      	
              4.1.

            	
              Expiration.
      Expiration of the Employment Period in accordance with Section
      1;

            

    

     

    

     

    
      	 
      	
              4.2.

            	
              For
      Cause by the Company. At the election of the Company, for Cause,
      immediately upon written notice by the Company to the Employee. For the
      purposes of this Section 4.2, “Cause” for termination shall be deemed to
      exist upon a good faith finding by the Company of (a) an intentional act
      by the Employee which materially injures the Company; (b) an intentional
      refusal or failure by the Employee to follow lawful and reasonable
      directions of the President & Chief Executive Officer or his delegate;
      (c) a willful and habitual neglect of duties by the Employee; (d) a breach
      by the Employee of the Company’s policies and procedures or any breach of
      the Employee’s obligations hereunder; or (e) a conviction of the Employee
      of a felony involving moral turpitude which is reasonably likely to
      inflict or has inflicted material injury on the
  Company.

            

    

     

    

     

    
      	 
      	
              4.3.

            	
              Death
      or Disability. Upon the death or disability of the Employee. As used in
      this Agreement, the term “disability” shall mean the inability of the
      Employee with reasonable accommodation as may be required by State or
      Federal law, due to a physical or mental disability, for a period of
      ninety (90) days, whether or not consecutive, during any 360-day period to
      perform the services contemplated under this Agreement. A determination of
      disability shall be made by a physician satisfactory to both the Employee
      and the Company, provided that if the Employee and the Company do not
      agree on a physician, the Employee and the Company shall each select a
      physician and these two together shall select a third physician, whose
      determination as to disability shall be binding on all
      parties;

            

    

     

    

     

    
      	 
      	
              4.4.

            	
              Resignation
      by the Employee. At the election of the Employee, upon not less than
      thirty (30) days prior written notice of termination;
  and

            

    

     

    - 3
-

     

     

    

     

    
      	 
      	
              4.5.

            	
              Without
      Cause by the Company. At the election of the Company, without Cause,
      immediately upon written notice by the Company to the
      Employee.

            

    

     

    

     

    
      	
              5.

            	
              Effect
      of Termination.

            

    

     

    

     

    
      	 
      	
              5.1.

            	
              Termination
      for Cause or at Election of the Employee. In the event the Employee’s
      employment is terminated by Expiration pursuant to Section 4.1, for Cause
      pursuant to Section 4.2, or at the election of the Employee pursuant to
      Section 4.4, the Company shall pay to the Employee the compensation and
      benefits otherwise payable to him under Section 3 through the last day of
      his actual employment by the
Company.

            

    

     

    

     

    
      	 
      	
              5.2.

            	
              Termination
      for Death or Disability. If the Employee’s employment is terminated by
      death or because of disability pursuant to Section 4.3, the Company shall
      pay to the estate of the Employee or to the Employee, as the case may be,
      the compensation that would otherwise be payable to the Employee up to the
      end of the month in which the termination of his employment because of
      death or disability occurs.

            

    

     

    

     

    
      	 
      	
              5.3.

            	
              Termination
      Without Cause. If the Employee’s employment is terminated without Cause
      pursuant to Section 4.5, the Company
shall:

            

    

     

    

     

    
      	 
      	
              (a)

            	
              In
      accordance with the Company’s regular payroll practices, pay the Employee
      his base salary as severance pay for a period of twelve (12) months (the
      “Severance Period”); and

            

    

     

    

     

    
      	 
      	
              (b)

            	
              During
      the Severance Period, the Company shall continue to pay the share of the
      premium for such coverage that is paid by the Company for active and
      similarly-situated employees who receive the same type of coverage during
      the Severance Pay Period. The remaining balance of any premium costs, and
      all premium costs after the Severance Pay Period, shall be paid by the
      employee on a monthly basis for as long as, and to the extent that, the
      employee remains eligible for COBRA
  continuation.

            

    

     

    All
payments and benefits provided pursuant to this Section 5.3 shall be conditioned
upon and subject to the Employee’s first executing a severance agreement and
general release of claims in favor of the Company, its officers, directors,
employees and affiliates, drafted by and satisfactory to the
Company.

     

    
      	 
      	
              5.4.

            	
              Survival.
      The provisions of Section 6 shall survive the termination of this
      Agreement.

            

    

     

    

     

    
      	
              6.

            	
              Proprietary
      Information; Invention Assignment and Non-Competition. The Employee agrees
      to be bound by all of the provisions of the Company’s standard
      Non-Disclosure, Non-Solicitation, Non Competition and Invention Assignment
      Agreement, which is incorporated herein by reference and made a part
      hereof (the “Non-Disclosure Agreement”). A copy of the Non-Disclosure
      Agreement is attached hereto as Exhibit
A.

            

    

     

    - 4
-

     

     

    

     

    
      	
              7.

            	
              Other
      Agreements. The Employee hereby represents that he is not bound by the
      terms of any agreement with any previous employer or other party to
      refrain from using or disclosing any trade secret or confidential or
      proprietary information in the course of his employment with the Company
      or to refrain from competing, directly or indirectly, with the business of
      such previous employer or any other party. The Employee further represents
      that his performance of all the terms of this Agreement and as an employee
      of the Company does not and will not breach any agreement to keep in
      confidence proprietary information, knowledge or data acquired by him in
      confidence or in trust prior to his employment with the
      Company.

            

    

     

    

     

    
      	
              8.

            	
              Notices.
      All notices required or permitted under this Agreement shall be in writing
      and shall be deemed effective upon personal delivery or upon deposit in
      the United States Post Office, by registered or certified mail, postage
      prepaid, addressed to the other party at the address shown above, or at
      such other address or addresses as either party shall designate to the
      other in accordance with this Section
8.

            

    

     

    

     

    
      	
              9.

            	
              Pronouns.
      Whenever the context may require, any pronouns used in this Agreement
      shall include the corresponding masculine, feminine or neuter forms, and
      the singular forms of nouns and pronouns shall include the plural, and
      vice versa.

            

    

     

    

     

    
      	 
      	
              10.

            	
              Entire
      Agreement. This Agreement constitutes the entire agreement between the
      parties and supersedes all prior agreements and understandings, whether
      written or oral, relating to the subject matter of this
      Agreement.

            

    

     

    

     

    
      	 
      	
              11.

            	
              Amendment.
      This Agreement may be amended or modified only by a written instrument
      executed by both the Company and the
Employee.

            

    

     

    

     

    
      	 
      	
              12.

            	
              Governing
      Law and Jurisdiction. This Agreement shall be construed, interpreted and
      enforced in accordance with the laws of the Commonwealth of Pennsylvania.
      The parties agree that any disputes arising under this Agreement or
      otherwise related to the Employee’s employment with the Company shall be
      brought exclusively in the state and federal courts located in the
      Commonwealth of Pennsylvania and the parties hereby waive any defense of
      lack of personal jurisdiction in any such
  action.

            

    

     

    

     

    
      	 
      	
              13.

            	
              Successors
      and Assigns. This Agreement shall be binding upon and inure to the benefit
      of both parties and their respective successors and assigns, including any
      corporation with which or into which the Company may be merged or which
      may succeed to its assets or business, provided, however, that the
      obligations of the Employee are personal and shall not be assigned by
      him.

            

    

     

    - 5
-

     

     

    

     

    
      	 
      	
              14.

            	
              Acknowledgment.
      The Employee states and represents that he has had an opportunity to fully
      discuss and review the terms of this Agreement with an attorney. The
      Employee further states and represents that he has carefully read this
      Agreement, understands the contents herein, freely and voluntarily assents
      to all of the terms and conditions hereof, and signs his name of his own
      free act.

            

    

     

    

     

    
      	 
      	
              15.

            	
              No
      Waiver. No delay or omission by the Company in exercising any right under
      this Agreement shall operate as a waiver of that or any other right. A
      waiver or consent given by the Company on any one occasion shall be
      effective only in that instance and shall not be construed as a bar or
      waiver of any right on any other
occasion.

            

    

     

    

     

    
      	 
      	
              16.

            	
              Captions.
      The captions of the sections of this Agreement are for convenience of
      reference only and in no way define, limit or affect the scope or
      substance of any section of this
Agreement.

            

    

     

    

     

    
      	 
      	
              17.

            	
              Severability.
      In case any provision of this Agreement shall be invalid, illegal or
      otherwise unenforceable, the validity, legality and enforceability of the
      remaining provisions shall in no way be affected or impaired
      thereby.

            

    

     

    

     

    
      	 
      	
              18.

            	
              Counterparts.
      This Agreement may be executed in one or more counterparts, each of which
      shall be deemed an original and all of which shall constitute one and the
      same Agreement.

            

    

     

     

     

    - 6
-

     

     

    

     

     

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

     

    
      	 
      	
              ACCELLENT
      CORP (pka) MEDICAL DEVICE

            
	 
      	
              MANUFACTURING,
      INC. (dba) ACCELLENT, INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	 
      /s/ Gary Curtis
	 
      	
              Name:

            	
              Gary
      Curtis

            
	 
      	
              Title:

            	
              Interim
      EVP/GM, Endoscopy Division

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              EMPLOYEE    
      /s/ Micahael Hassman

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