Document:

exv10w3

 

Exhibit 10.3

AMENDMENT TO STOCK OPTION AGREEMENTS

          This Amendment to Stock Option Agreements (the “Amendment”) is made as of April 6, 2008 by ev3
Inc. (the “Corporation”) and relates to certain stock options granted to James M. Corbett (the
“Grantee”) under the ev3 LLC Amended and Restated 2003 Incentive Plan, as amended, or any other
equity incentive plan of the Corporation or its predecessors, and subsequently transferred to Trudy
Corbett (the “Holder”).

          WHEREAS, the Corporation has previously granted to Grantee options (the “Options”) to purchase
shares of the Common Stock, par value $0.01 per share, of the Corporation evidenced by Stock Option
Agreements by and between the Corporation and Grantee;

          WHEREAS, Grantee subsequently transferred to Holder certain of such Options as set forth on
Exhibit A hereto and the Corporation subsequently entered into new Stock Option Agreements
with Holder setting forth the terms and conditions of the Options (the “Option Agreements”);

          WHEREAS, on April 6, 2008, the Corporation and Grantee are entering into a Separation
Agreement and Release of Claims (the “Separation Agreement”) pursuant to which Grantee will become
entitled to certain payments from the Corporation in exchange for a release of any claims Grantee
may have against the Corporation;

          WHEREAS, the Separation Agreement sets forth certain rights that Grantee and Holder have with
respect to their outstanding Options; and

          WHEREAS, the Board of Directors of the Corporation (the “Board”) has determined that it is in
the best interests of the Corporation and its stockholders to amend the Option Agreements,
effective as of April 6, 2008, to accelerate the vesting of certain of the Options and to amend the
period during which certain Options can be exercised.

          NOW, THEREFORE, the Option Agreements are hereby amended as follows:

          1. With respect to the Options that have already vested as of April 6, 2008, the expiration
date for the exercise thereof shall be extended until July 5, 2010, but in no event beyond the
original term of each such Option.

          2. With respect to the Options that are not vested as of April 6, 2008 but that otherwise
would have vested by April 5, 2010 had Grantee’s service with the Corporation continued to that
date, the vesting thereof shall be fully accelerated as of April 6, 2008 and the expiration date
for the exercise of such Options shall be extended until July 5, 2010, but in no event beyond the
original term of each such Option.

          3. With respect to the Options that are not vested and otherwise would have vested only if
Grantee’s service with the Corporation had continued beyond April 5, 2010, there shall be no
further vesting and such Options shall immediately terminate in accordance with the terms of the
applicable grant documentation.

 

 

          4. Except as expressly provided herein, the terms and conditions of the Option Agreements
shall remain in full force and effect and shall be binding on the Corporation and the Holder.

          IN WITNESS WHEREOF, the Corporation has duly executed and delivered this Amendment, or has
caused this Amendment to be duly executed and delivered in its name and on its behalf, as of the
day and year first above written.

	 	 	 	 	 	 	 
	 	EV3 INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kevin Klemz
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:
	 	 Kevin Klemz 	 	 
	 

	 	 	 	 	 	 

 

 

Exhibit A

Trudy Corbett Option Agreements

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Shares	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Currently	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Outstanding	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	under the	 	Total Shares That
	 	 	Grant 	 	 	 	 	 	 	 	 	 	Option	 	Would Have Vested
	Grant No.	 	Date	 	Plan	 	Type	 	Price	 	Agreement	 	at 4/5/2010
	1386

	 	6/20/2002
	 	ev3 LLC Amended and
Restated 2003
Incentive Plan
	 	Non-Qualified Stock
Option
	 	$	3.5400	 	 	 	4,230	 	 	 	4,230	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1387

	 	6/20/2002
	 	ev3 LLC Amended and
Restated 2003
Incentive Plan
	 	Non-Qualified Stock
Option
	 	$	8.8200	 	 	 	8,898	 	 	 	8,898	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1388

	 	10/29/2003
	 	ev3 LLC Amended and
Restated 2003
Incentive Plan
	 	Non-Qualified Stock
Option
	 	$	8.8200	 	 	 	12,456	 	 	 	12,456	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1389

	 	1/1/2004
	 	ev3 LLC Amended and
Restated 2003
Incentive Plan
	 	Non-Qualified Stock
Option
	 	$	8.8200	 	 	 	6,250	 	 	 	6,250	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1390

	 	7/29/2004
	 	ev3 LLC Amended and
Restated 2003
Incentive Plan
	 	Non-Qualified Stock
Option
	 	$	8.8200	 	 	 	18,750	 	 	 	18,750	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1391

	 	4/7/2003
	 	ev3 LLC Amended and
Restated 2003
Incentive Plan
	 	Non-Qualified Stock
Option
	 	$	8.8200	 	 	 	9,562	 	 	 	9,562	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1392

	 	8/7/2002
	 	ev3 LLC Amended and
Restated 2003
Incentive Plan
	 	Non-Qualified Stock
Option
	 	$	8.8200	 	 	 	19,005	 	 	 	19,005	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1393

	 	1/7/2005
	 	ev3 LLC Amended and
Restated 2003
Incentive Plan
	 	Non-Qualified Stock
Option
	 	$	8.8200	 	 	 	31,250	 	 	 	31,250	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL:

	 	 	 	 	 	 	 	 	 	 	 	 	110,401	 	 	 	110,401exv10w4

 

Exhibit 10.4

CONSULTING AGREEMENT

     This Consulting Agreement dated as of April 6, 2008 (“Agreement”), is by and among ev3
Endovascular, Inc. (“ev3” or “Company”) and James M. Corbett (“Consultant”).

Recitals

     WHEREAS, Consultant has resigned as an employee of ev3 Inc. effective as of 9:00 a.m. (Central
Time) on April 6, 2008; and

     WHEREAS, ev3 has determined it will require limited consulting services of Consultant from
time to time for a period of time following the termination.

Agreement

     Now therefore, in consideration of the mutual covenants and agreements hereinafter provided,
the parties agree as follows:

	1.	 	Transition to Consulting.

	 	(a)	 	Consultant shall continue to work as an employee of ev3 Inc. on a full-time
basis until April 6, 2008, on which date, effective as of 9:00 a.m. (Central Time),
Consultant’s employment with ev3 Inc. will terminate (the “Termination Date”). Through
the Termination Date, Consultant will continue to earn the salary equal to the salary
paid to Consultant immediately prior to the effective date of this Agreement.
Consultant will continue to participate in ev3 Inc.’s bonus plans through the
Termination Date; provided, Consultant will not participate in any of ev3 Inc.’s or any
of its affiliate’s bonus plans after the Termination Date.
	 
	 	(b)	 	Beginning on April 7, 2008, Consultant will work as a consultant to ev3 on a
part-time basis and shall be available from time to time at the request of ev3 from
April 7, 2008, through October 6, 2008 (the “Consulting Term”). During this time,
Consultant will have the title of Consultant and will report to Robert J. Palmisano,
President and Chief Executive Officer of ev3 Inc.
	 
	 	(c)	 	Consultant and ev3 intend and agree that, as of April 7, 2008, an independent
contractor relationship shall be created by this Agreement. Consultant shall not be
considered an agent or employee of ev3 for any purpose. Consultant shall not have any
right or authority to bind or commit ev3 to any legal obligation whatsoever. Consultant
shall not be eligible to participate in any of ev3’s employee benefit plans, fringe
benefit programs, group insurance arrangements or similar programs as an active
employee.
	 
	 	(d)	 	The parties understand and agree that Consultant’s status as Consultant will
not qualify him as a “service provider” under the plan or plans under which
stock options and/or grants have been made to him and that the treatment of existing
stock options and grants shall be governed by and in accordance with the

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	 	 	 	Separation Agreement (as defined herein) and any amendments to stock options and/or
grants entered into in connection with the Separation Agreement.

	2.	 	Scope of Consulting Services. During the Consulting Term, Consultant shall consult on
projects as agreed upon with Robert J. Palmisano, President and Chief Executive Officer of ev3
Inc.
	 
	3.	 	Compensation. Consultant shall receive a nonrefundable fee of $5,000 per month,
payable on the first calendar day of each month, for which ev3 will be entitled to request and
receive up to four (4) days (assuming eight (8) hours per day) of Consulting Services from
Consultant during said month. Should ev3 request and receive additional services to be
performed by Consultant hereunder in excess of four (4) days during any such month, ev3 will
compensate Consultant at the rate of $156.25 per hour for such additional services. All such
Consulting Services shall be approved in advance by Robert J. Palmisano, President and Chief
Executive Officer of ev3 Inc. The Company shall not be responsible for withholding taxes from
any such payments to Consultant in connection with these Consulting Services. In addition to
such fees, ev3 will promptly reimburse Consultant for all reasonable expenses incurred by him
in the performance of such Consulting Services, including, but not limited to, transportation,
lodging, meals, and other related expenses.
	 
	4.	 	Termination. Consultant’s employment through the Termination Date and Consulting
Services under this Agreement with ev3 remain “at will”. Either party may terminate this
Agreement at any time upon ten (10) days prior written notice; provided, however, that in the
event that ev3 elects to terminate this Agreement prior to the end of the Consulting Term, it
shall immediately pay Consultant the aggregate of nonrefundable fees of $5,000 per month that
would have been otherwise payable under section 3 hereof for the remainder of the Consulting
Term, without any additional Consulting Services being required of Consultant hereunder.
	 
	5.	 	Further Responsibilities and Duties.

	 	(a)	 	Compliance with Company Policies. Consultant shall, at all times,
comply with all policies, rules, and procedures of ev3 which include, but are not
limited to, ev3’s Code of Conduct, Corporate Compliance Policy, and Insider Trading
Policy. By Consultant’s signature below, Consultant acknowledges that Consultant has
received, read, and agrees to abide by, each of the foregoing policies.
	 
	 	(b)	 	Duty of Loyalty. In all aspects of Consultant’s Consulting Services
with ev3, Consultant shall act in the utmost good faith, deal fairly with ev3, and
fully disclose to ev3 all information that ev3 might reasonably consider to be
important or relevant to ev3’s business. Consultant further agrees that during the
Consulting Term, Consultant shall not engage in any conduct that might result in, or
create the appearance of using Consultant’s position for Consultant’s private gain, or
otherwise create a conflict of interest, or the appearance of a conflict of interest,
with ev3. Such prohibited conduct includes, but is not limited to, having an

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	 	 	 	undisclosed financial interest in any vendor or supplier of ev3, accepting payments
of any kind or gifts other than of a nominal value from vendors, customers, or
suppliers, or having an undisclosed relationship with a family member or other
individual who is employed by any entity in active or potential competition with
ev3, and which creates a conflict of interest.

	 	(c)	 	No Conflicting Employment. During the term of this Consulting
Agreement, Consultant agrees that he will not engage in any other employment,
occupation or consulting directly related to the business in which the Company is now
involved, or to any business in which the Company becomes involved during the
Consulting Term, to the extent that the nature of such business is disclosed to
Consultant.

	6.	 	Nondisclosure of Confidential and Proprietary Information.

	 	(a)	 	Definition of Confidential and Proprietary Information. “Confidential
and Proprietary Information” means any and all information, whether oral, written, or
committed to Consultant’s memory that is not generally known by persons not employed
by, or parties to contracts with ev3, whether prepared by ev3 or Consultant, including
but not limited to:

	 	(i)	 	inventions, designs, discoveries, works of authorship,
improvements, or ideas, whether or not patentable or copyrightable, methods,
processes, techniques, shop practices, formulae, compounds, or compositions
developed or otherwise possessed by ev3;
	 
	 	(ii)	 	the subject matter of ev3’s patents, design patents,
copyrights, trade secrets, trademarks, service marks, trade names, trade dress,
manuals, operating instructions, and other intellectual property to the extent
that such information is unavailable to the public;
	 
	 	(iii)	 	the subject matter and the terms and conditions of this
Agreement;
	 
	 	(iv)	 	ev3’s information, knowledge, or data concerning its financial
data, including financial statements and projections, pricing information,
costs, sales, budgets, and profits; business plans such as products and
services under development, clinical trials, proposals, presentations,
potential acquisitions under consideration, and marketing strategies;
manufacturing processes; organizational structures, such as names of employees,
consultants, and their positions and compensation schedules; customer
information such as surveys, customer lists, lists of prospective customers,
customer research, customer meetings, customer account records, sales records,
training and servicing materials, programs, techniques, sales, and contracts;
supplier and vendor information including lists and contracts; relational data
models, company manuals and policies, computer programs, software, disks,
source code, systems architecture, blue prints, flow charts, and licensing
agreements; and/or

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	 	(v)	 	any document marked “Confidential”, or any information that
Consultant has been told is “Confidential” or that Consultant might reasonably
expect ev3 would regard as “Confidential,” or any information that has been
given to ev3 in confidence by customers, suppliers, or other persons.

	 	(b)	 	Confidentiality Obligations. Consultant agrees to hold all
Confidential and Proprietary Information in the strictest confidence both during the
Consulting Term and after the Consulting Services with ev3 are voluntarily or
involuntarily terminated for any reason. To this end, Consultant shall:

	 	(i)	 	not make, or permit or cause to be made, copies of any
Confidential and Proprietary Information, except as necessary to carry out
ev3’s duties as prescribed by ev3;
	 
	 	(ii)	 	not disclose or reveal any Confidential and Proprietary
Information, or any portion thereof, to any person or company who is not under
a legal or contractual obligation to ev3 to hold such information
confidential; 
	 
	 	(iii)	 	take all reasonable precautions to prevent the inadvertent
disclosure of any Confidential and Proprietary Information to any unauthorized
person;
	 
	 	(iv)	 	acknowledge that ev3 is the owner of all Confidential and
Proprietary Information and agree not to contest any such ownership rights of
ev3, either during or after Consultant’s employment or consulting relationship
with ev3;
	 
	 	(v)	 	upon termination of the Consulting Services or employment or
upon request by ev3, deliver promptly to ev3 all Confidential and Proprietary
Information and all ev3 documents and property, whether confidential or not,
including, without limitation, all books, manuals, records, reports, notes,
contracts, lists, blueprints, programs, databases, and other documents or
materials, whether in hard copy, electronic, or other form, including copies
thereof, whether prepared by Consultant or ev3, and all equipment furnished to
Consultant in the course of or incident to employment, including any laptop
computer and all data contained on such computer; and
	 
	 	(vi)	 	permit ev3 to inspect personal computers and/or cell phones,
including any Personal Data Assistant, Blackberry, or other handheld device
belonging to Consultant, at the time the Consultant’s employment and/or
Consulting Services are terminated and to remove from such personal property
all data belonging to ev3 if Consultant used such personal property to conduct
ev3 business.

	 	(c)	 	Obligations to Third Parties. Consultant understands and acknowledges
that ev3 has a policy prohibiting the receipt or use by ev3 of any confidential
information or trade secret protected information in breach of Consultant’s obligations
to third parties and ev3 does not desire to receive any confidential information under
such

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	 	 	 	circumstances. Accordingly, Consultant will not disclose to ev3 or use in the
performance of any duties for ev3 any confidential information in breach of an
obligation to any third party. Consultant represents that Consultant has informed
ev3, in writing, of any restriction on Consultant’s use of a third party’s
confidential information that conflicts with any obligations under this Agreement.

	7.	 	Other Endeavors by Consultant. ev3 recognizes and agrees that Consultant shall be
free to engage in other employment, business, political and/or nonprofit activities not
directly related to ev3’s business, provided, however, that such activities do not constitute
a breach of his commitments to ev3 in this Agreement, and provided, further that Consultant
does not purport to act on behalf of ev3 or otherwise represent any affiliation with ev3 in
connection with his participation in such activities.
	 
	8.	 	Governing Law: Venue. This Agreement shall be governed by, and construed and
enforced in accordance with Minnesota law, without reference to choice of law, except to the
extent it is pre-empted by federal law. Any dispute relating to this Agreement shall be
subject to the jurisdiction of state or federal courts within the State of Minnesota, Hennepin
County.
	 
	9.	 	Entire Agreement. This Agreement contains all the understandings and agreements
between the parties concerning Consultant’s consulting relationship with ev3 and supersedes
any and all prior agreements and understandings, whether written or oral, relating to the
matters addressed in this Agreement. The parties agree that there were no inducements or
representations leading to the execution of this Agreement except as stated in this Agreement.
Any modification of or addition to this Agreement must be in writing and signed by Consultant
and ev3.
	 
	10.	 	Counterparts. This Amendment may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
agreement.
	 
	11.	 	Contemporaneous Agreement. ev3 and Consultant acknowledge and agree, notwithstanding
anything to the contrary herein, that they have entered into a Separation Agreement and
Release of Claims (“Separation Agreement”) contemporaneously herewith. Consultant’s rights
under such Separation Agreement, including, but not limited to, his right to receive Special
Consideration, as defined therein, shall not be altered, reduced, or affected by his execution
of this Agreement, his performance of Consulting Services, or by any actual or purported
breach of his obligations hereunder.

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     IN WITNESS WHEREOF, the parties have executed this Consulting Agreement as of the date set
forth in the first paragraph.

	 	 	 	 	 	 	 	 	 
	ev3 Endovascular, Inc.	 	 	 	Consultant	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Kevin Klemz	 	 	 	/s/ James M. Corbett	 	 
	 	 	 	 	 	 	 
	By:

	 	Kevin Klemz
	 	 	 	Print Name: James M. Corbett	 	 
	Its:

	 	Senior Vice President and Chief
Legal Officer	 	 	 	 	 	 

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