Document:

EX-10.1 FORM OF SUCCESS BONUS AWARD LETTER

 

Exhibit 10.1

TriPath Imaging, Inc.

780 Plantation Drive

Burlington, NC 27215

September 8, 2006

[Name of Executive Officer]

[Address]

[City, State Zip Code]

Dear [                    ]:

Contemporaneously with the execution of this letter agreement (the “Award”), TriPath Imaging, Inc.
(the “Company”) is entering into a Merger Agreement with Becton Dickinson & Company (“BD”),
pursuant to which BD has agreed to acquire the approximately 93.5% of the outstanding
shares of the Company that BD does not already own (the “Sale”).

In recognition of your long- term contributions to the growth and success of the Company, your
perseverance and critical contributions towards finding and executing the Sale, and your
anticipated contributions to the continuing success of the Company and completion of the
transaction the Compensation Committee of the Board of Directors has decided to award to you a
success bonus pursuant to the terms and conditions set forth below.

Success Bonus

If the Sale is consummated on or prior to March 31, 2007, the Company will make a payment to you of
$                                         in cash, less applicable taxes and deductions, including but not limited to federal,
state and local withholding taxes and FICA taxes (the “Success Bonus”), subject to and in
accordance with the terms of this Agreement. The payment of any excise tax relating to the Success
Bonus will be handled in accordance with your retention agreement with BD dated September 8, 2006.
[Note: The preceding sentence does not appear in the agreement for Paul R. Sohmer, M.D.]

This Success Bonus will be paid to you in a single payment immediately prior to the closing of the
Sale, provided that you remain employed by the Company on that date, except as set forth below.

If the Company terminates your employment without Cause prior to the consummation of the Sale, you
will become entitled to the Success Bonus, and the entire amount, less
applicable taxes, will be paid to you in a lump sum payment immediately prior to the closing of the
Sale.

If, before the consummation of the Sale, the Company terminates your employment for Cause or if you
terminate your employment with the Company for any reason, you will forfeit your right

 

 

to any
payment of this Success Bonus. For purposes of this Agreement, the Company shall have “Cause” to
terminate your employment upon (a) the willful and continued failure by you substantially to
perform your duties with the Company (other than any such failure resulting from your incapacity
due to physical or mental illness); (b) willful gross misconduct or dishonesty, including fraud or
embezzlement related to the performance of your duties with the Company or that which would be
reasonably likely to cause, as determined in good faith by the Board of Directors of the Company:
(A) a material adverse affect on the business or reputation of the Company, or (B) expose the
Company to a material risk of civil or criminal legal damages, liabilities or penalties; or (c)
conviction (or a plea of guilty or no contest) of a felony or a crime involving moral turpitude.

If your death or disablement results in your termination of employment with the Company prior to
the consummation of the Sale, you (or your estate in case of your death) will be entitled to the
Success Bonus, and the entire amount, less applicable taxes, will be paid to you in a lump sum
payment immediately prior the closing of the Sale.

Conditions to Receiving a Success Bonus

In addition to the continued employment requirements to receive a Success Bonus set forth above, in
order to be eligible to receive a Success Bonus, you must use good faith efforts to successfully
facilitate, negotiate, document and consummate the Sale on or prior to March 31, 2007.

No Right to Continued Employment.

Nothing contained in this Agreement, or your eligibility to receive a Success Bonus generally,
shall be considered a contract of employment or construed as giving you any right to be retained in
the employ of the Company or BD. You acknowledge that your employment is at-will and will continue
to be at-will, as defined under applicable law, and may be terminated at any time and for any
reason, with or without Cause.

Amendment

No provision of this Award may be modified, waived or discharged unless such waiver, modification
or discharge is agreed to in writing by each of you, BD and the Company.

 - 2 - 

 

Acknowledgment

Please sign and date this letter to signify your understanding and agreement to the terms of this
Agreement.

Sincerely,

	 	 	 	 	 
	TRIPATH IMAGING, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Robert E. Curry, Ph.D.
	 	 
	 

	 	Chairman of the Compensation Committee of the Board of Directors	 	 
	 
	 	 	 	 
	BECTON, DICKINSON AND COMPANY	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Accepted and Agreed to:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Date:
	 	 	 	 

 - 3 -EX-10.2 RETENTION BONUS AGREEMENT/PAUL R. SOHMER

 

Exhibit 10.2

EXECUTION COPY

Tripath Imaging, Inc.

780 Plantation Drive

Burlington, NC 27215

Becton, Dickinson and Company

1 Becton Drive

Franklin Lakes, NJ 07417

September 8, 2006

Dr. Paul R. Sohmer, M.D.

c/o TriPath Imaging, Inc.

780 Plantation Drive

Burlington, NC 27215

Dear Paul:

     As you are aware, TriPath Imaging, Inc. (the “Company”), a Delaware corporation, is
contemplating the sale to Becton, Dickinson and Company (the “Sale”) of the approximately
93.5% of the outstanding shares of the Company that Becton, Dickinson and Company (“BD”)
does not already own. As a result of and following the Sale, the Company will become a
wholly-owned subsidiary of BD.

     On behalf of the Company, I am pleased to offer you the opportunity to earn a retention bonus
(the “Retention Bonus”) in connection with the successful completion of the Sale and your
continued employment by the Company and its affiliates (the “BD Group”) for six (6) months
following the completion of the Sale (such period, the “Retention Period”) (except as
otherwise provided in Section II below), the terms of which are outlined below. In addition to
your continued employment during the Retention Period, on the terms and conditions set forth in
Exhibit A, you agree to provide consulting services to the BD Group for a minimum of six (6) months
and a maximum of twelve (12) months following the end of the Retention Period.

     Notwithstanding anything herein to the contrary, in the event that the Sale does not occur on
or before the six (6) month anniversary of the date of this letter agreement, this letter agreement
will automatically terminate and be of no further force and effect and you will have
no rights to earn the Retention Bonus hereunder after such time; provided, however, that in
such event, the change in control agreement entered into with the Company, dated June 26, 2006 (the
“Change in Control Agreement”) will continue in full force and effect.

 

 

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September 8, 2006

Page 2

     In addition, if your employment is terminated by the Company without Cause within 180 days
prior to the completion of the Sale and such termination (i) was at the request of BD or (ii)
otherwise occurred as a condition to, or in anticipation of, the completion of the Sale, this
letter agreement will automatically terminate and be of no further force and effect and the Change
in Control Agreement will continue in full force and effect and will govern the payment of any
benefits to you.

     This agreement is without prejudice to the success bonus (the “Success Bonus”) you
will receive from the Company under the success bonus letter agreement entered into between you and
the Company, dated September 8, 2006. The BD Group will provide you with a retention bonus
opportunity after the completion of the Sale as follows:

I. RETAINED EMPLOYMENT 

     You will continue to be employed by the Company following the completion of the Sale. The
employment terms are described in Exhibit A, which is attached hereto and is hereby incorporated in
its entirety as if set forth fully herein. Defined terms used herein have the same meanings as
defined in Exhibit A. Likewise, terms defined in Exhibit A shall have the same meanings as defined
herein.

II. RETENTION BONUS

     A. CALCULATION OF RETENTION BONUS.

     It is acknowledged that the Company’s fiscal year is the calendar year and, as such, the terms
“calendar year” and “fiscal year” are used interchangeably throughout this letter agreement and the
“fiscal” year referred to herein is the fiscal year of the Company, and not the BD fiscal year.

     The Retention Bonus shall be equal to $2,163,625.

     You agree that you will not be entitled to receive any bonus payment(s) in respect of the 2007
fiscal year of either the Company or BD.

     B. ELIGIBILITY FOR THE RETENTION BONUS.

     Subject to the successful completion of the Sale, you shall be eligible to receive the
Retention Bonus and thus will be vested in the Retention Bonus upon either one of the following:

          1. If you are employed by the BD Group at the end of the Retention Period; or

          2. If your employment with the BD Group is terminated (i) due to death, (ii) by the BD Group
without “Cause” (as defined below), or (iii) by you for “Good Reason” (as defined below), prior to
the end of the Retention Period.

 

 

Dr. Sohmer

September 8, 2006

Page 3

               (a) “Cause”. For the purpose of this letter agreement, the BD Group shall have
“Cause” to terminate your employment upon:

                    (i) The willful and continued failure by you to substantially perform your duties with the BD
Group (other than any such failure resulting from your incapacity due to physical or mental illness
or any failure resulting from your terminating your employment with the BD Group for “Good
Reason”);

                    (ii) Your willful gross misconduct or dishonesty, including fraud or embezzlement, related to
the performance of your duties with the BD Group which would be reasonably likely to cause, as
determined in good faith by the Board of Directors of BD (the “Board”): (A) a material
adverse affect on the business or reputation of the BD Group, or (B) exposure of the BD Group to a
material risk of civil or criminal legal damages, liabilities or penalties; or

                    (iii) Your conviction (or a plea of guilty or no contest) of a felony or a crime involving
moral turpitude.

               (b) “Good Reason”. You may terminate your employment for Good Reason. For purposes
of this letter agreement, “Good Reason” shall mean without your express written consent:

                    (i) A reduction by the BD Group in your base salary as set forth in Exhibit A;

                    (ii) Any requirement by the BD Group, inconsistent with the terms and conditions set forth in
Exhibit A, that the location at which you perform your principal duties for the BD Group be changed
to a new location that is more than 100 miles from the location at which you perform your principal
duties for the Company immediately prior to the completion of the Sale;

                    (iii) The substantial and continuing reduction of your duties with the Company from those
duties set forth on Exhibit A or a substantial and continuing requirement that you perform duties
that are materially inconsistent with and which would have a material adverse impact on your title
or duties from the title or duties set forth on Exhibit A, provided, however, that the transition
of the duties set forth on Exhibit A to your replacement shall not be considered Good Reason under
the terms of this letter agreement; or

                    (iv) The material diminution of your bonus opportunity under the bonus plan in place for the
Company following the completion of the Sale.

               (c) Notice of Termination. Any termination (i) due to Disability, (ii) by the BD
Group without Cause, or (iii) by you for Good Reason shall be communicated by written Notice of
Termination to the other party hereto. For purposes of this

 

 

Dr. Sohmer

September 8, 2006

Page 4

letter agreement, a “Notice of
Termination” shall mean a notice which shall indicate the specific termination provision in this
letter agreement relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis of your termination under the provision so indicated. If you are
terminating your employment for Good Reason, the Notice of Termination shall be delivered to BD
with a copy to the Company within thirty (30) days following the date on which the facts and
circumstances existed that gave rise to your right to terminate your employment for Good Reason and
at least ten (10) business days prior to your proposed Date of Termination. Such notice shall
indicate the specific provision or provisions in this letter agreement upon which you have relied
to make such determination and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for such determination. If the facts and circumstances that give rise
to your right to terminate for Good Reason present a curable condition, the BD Group shall have ten
(10) business days after receipt of the Notice of Termination to cure such condition.

               (d) Date of Termination. “Date of Termination” shall mean:

                    (i) If this letter agreement is terminated for Disability, thirty (30) days after Notice of
Termination is given (provided that you shall not have returned to the performance of your duties
on a full-time basis during such thirty (30) day period);

                    (ii) If your employment is terminated by you for Good Reason, the date specified in the Notice
of Termination, which shall be no less than ten (10) business days after the date on which the
Notice of Termination is delivered; and

                    (iii) If your employment is terminated for any other reason, the date on which a Notice of
Termination is given (or, if a Notice of Termination is not given, the date of such termination).

               (e) Disability. If you are unable to engage in any substantial gainful activity as a
result of your incapacity due to a medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months, you shall be deemed “disabled” for purposes of this letter agreement by (A) the
institution appointed by the BD Group to administer the Company’s long-term disability plan (or
successor plan) for your benefit or, (B) in the absence of such an institution or in the event that
you are not covered by a long-term disability plan of the BD Group, BD acting in good faith.

     C. PAYMENT OF RETENTION BONUS.

     The Retention Bonus shall be paid in a lump sum payment made to you on the six-month
anniversary of the final day of the Retention Period; provided, however, that if
you are
terminated by the BD Group without Cause or if you resign for Good Reason prior to the end of the
Retention Period, then the entire Retention Bonus shall be paid to you on the six-month anniversary
of the applicable Date of Termination; provided, further, that, in the event that
your

 

 

Dr. Sohmer

September 8, 2006

Page 5

employment with the BD Group is terminated due to death at any time during the Retention
Period, your estate or applicable legal representatives shall receive the payment of the Retention
Bonus as soon as practicable, and not later than 2 months after the Company is notified of your
death. Additionally, in the event of your termination due to death, your eligible dependents may
elect to continue their health care benefits under COBRA.

III. TERMINATION OF EMPLOYMENT

     A. TERMINATION DUE TO DISABILITY.

     If, during the Retention Period, you shall fail to perform your duties hereunder as a result
of incapacity due to Disability, you shall continue to receive your full base salary at the rate
then in effect until your Date of Termination (and, if the Company maintains a long-term disability
plan, you shall be eligible for coverage thereunder in accordance with the terms thereof and
subject to the satisfaction of all applicable conditions, including without limitation, the timely
filing of a notice of claim). You shall also be entitled to receive an amount equal to $41,384.

     B. TERMINATION BY THE BD GROUP FOR CAUSE

     If, during the Retention Period, your employment shall be terminated for Cause, the Company
shall pay you for your full base salary through the Date of Termination at the rate in effect at
the time Notice of Termination is given, and the Company shall have no further obligations to you
under this letter agreement.

     C. ADDITIONAL PROVISIONS

     You shall not be required to mitigate the amount of any payment provided for in this letter
agreement by seeking other employment or otherwise, nor shall the amount of any payment provided
for in this letter agreement be reduced by any compensation earned by you as the result of
employment by another employer after the Date of Termination, or otherwise, except to the extent
provided for herein.

     The payments and other benefits described in this letter agreement shall be the only payments
you are to receive in the event of a termination of your employment following the completion of the
Sale and you agree you shall not be entitled to any additional payments or benefits not otherwise
described in this letter agreement.

     You hereby acknowledge and agree that you are not eligible to be a “Participant” in the
TriPath Imaging, Inc. Employee Retention Plan. Any payments or benefits received under this letter
agreement shall not be taken into account for purposes of determining benefits under any
other employee benefit plan of the BD Group, except to the extent required by law, or as
otherwise expressly provided by the terms of such other plan.

 

 

Dr. Sohmer

September 8, 2006

Page 6

     You hereby acknowledge and agree that you are not eligible for any additional payment in the
event it is determined that any payment or benefit received or to be received by you (whether paid
or payable or distributed or distributable or provided pursuant to the terms of this letter
agreement or otherwise) would be subject to the excise tax imposed by Section 4999 of the Internal
Revenue Code of 1986, as amended (the “Code”) or any interest or penalties are incurred by
you with respect to such excise tax.

IV. MISCELLANEOUS PROVISIONS

     A. CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL.

     You, by your execution hereof (i) hereby irrevocably submit to the exclusive jurisdiction of
the federal courts (or, to the extent jurisdiction is not permitted, the state courts) of the State
of New York for the purpose of any claim or action arising out of or based upon this letter
agreement or relating to the subject matter hereof, (ii) hereby waive, to the extent not prohibited
by applicable law, and agree not to assert by way of motion, as a defense or otherwise, in any such
claim or action, any claim that you are not subject personally to the jurisdiction of the
above-named courts, that your property is exempt or immune from attachment or execution, that any
such proceeding brought in the above-named court is improper, or that this letter agreement or the
subject matter hereof may not be enforced in or by such courts, and (iii) hereby agree not to
commence any claim or action arising out of or based upon this letter agreement or relating to the
subject matter hereof other than before the above-named courts nor to make any motion or take any
other action seeking or intending to cause the transfer or removal of any such claim or action to
any court other than the above-named courts whether on the grounds of inconvenient forum or
otherwise. You hereby consent to service of process in any such proceeding in any manner permitted
by New York law, and agree that service of process by registered or certified mail, return receipt
requested, at your address specified on the first page hereof is reasonably calculated to give
actual notice. You hereby irrevocably waive any right to a trial by jury in any action, suit, or
other proceeding arising under or relating to any provisions of this letter agreement.

     B. OBLIGATIONS FOLLOWING THE COMPLETION OF THE SALE.

     You and the Company have previously entered into a Non-Competition Agreement (the
“Non-Competition Agreement”) and an Employee Non-Disclosure and Inventions Agreement dated
June 2, 2000 (the “NDA”; the Non-Competition Agreement and the NDA collectively referred to
as the “Prior Agreements”) both attached hereto on Schedule A, which impose upon
you certain obligations including, but not limited to, non-competition with the Company,
non-solicitation of employees and customers and confidentiality of Company information. Such Prior
Agreements shall remain in full force and effect upon the execution of this Letter Agreement except
that they shall be superseded by this letter agreement during the Retention
Period. If the Retention Period expires and you remain employed by BD thereafter, this letter
agreement shall have terminated and the Prior Agreements and their terms shall continue to govern
your obligations during and following termination of your employment. Notwithstanding

 

 

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September 8, 2006

Page 7

anything
herein to the contrary, your right to receive any payments or benefits under this letter agreement
shall be conditioned upon and subject to your compliance with your obligations as described in this
Section IV, which obligations shall survive the termination or expiration of this letter agreement
according to their respective terms. You hereby agree that any breach of the provisions of this
Section IV by you, will entitle BD to terminate this letter agreement and to cease all payments and
benefits hereunder. Any payments you may receive pursuant to the Prior Agreements shall offset on
a dollar for dollar basis any obligations of the BD Group to make payments to you under this letter
agreement.

          1. Confidentiality.

               (a) Proprietary Information. In the course of your service to the BD Group, you will have
access to confidential intellectual property, confidential specifications, know-how, inventions,
testing methods, strategic or technical data, marketing research data, product research and
development data, manufacturing techniques, financial performance, confidential customer lists,
costs, sources of supply and trade secrets, names and addresses of the people and organizations
with whom the BD Group have business relationships and such relationships, and special needs of
customers of the BD Group, as well as other confidential business information, all of which are
confidential and may be proprietary and are owned or used by the BD Group. Such information shall
hereinafter be called “Proprietary Information” and shall include any and all items enumerated in
the preceding sentence and coming within the scope of the business of the Company or its affiliates
as to which you may have access, whether conceived or developed by others or by you alone or with
others during the period of your service to the BD Group, whether or not conceived or developed
during regular working hours. The term “Proprietary Information” also shall be deemed to include
comparable information that the BD Group has received belonging to others or which was received by
the BD Group with any understanding that it would not be disclosed. Proprietary Information may be
contained in various media, including without limitation, patent applications, computer programs in
object and/or source code, flow charts and other program documentation, manuals, plans drawings,
designs, technical and scientific specifications, laboratory notebooks, supplier and customer
lists, internal financial and business data and other documents and records of the BD Group.
Proprietary Information shall not include any information which (I) is in the public domain prior
to the execution of the NDA and this letter agreement, (II) entered the public domain after the
time of its disclosure under the NDA or this letter agreement through means other than an
unauthorized disclosure resulting from an act or omission by you, (III) was independently developed
or discovered by you prior to the time of disclosure under the NDA, or (IV) is required to be
disclosed to comply with applicable laws or regulations, or with a court or administrative order,
provided that BD is notified prior to such disclosure and has the opportunity to take any actions
it deems appropriate to obtain confidential treatment for such disclosure and, if possible, to
minimize the extent of such disclosure.

               (b) You shall not during the term of your employment with the BD Group or any time thereafter,
regardless of the reason for termination of your employment (x)

 

 

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disclose, directly or indirectly,
any Proprietary Information to any person other than the Company or authorized employees thereof at
the time of such disclosure, or such other persons to whom you have been specifically instructed to
make disclosure by management of BD and in all such cases only to the extent required in the course
of your service to the BD Group or (y) use any Proprietary Information, directly or indirectly, for
your own benefit or for the benefit of any other person or entity.

               (c) All notes, letters, documents, records, tapes and other media of every kind and
description relating to the business, present or otherwise, of the BD Group and any copies, in
whole or in part, thereof (collectively, the “Documents”), whether or not prepared by you,
shall be the sole and exclusive property of the BD Group. You shall safeguard all Documents and
shall surrender to BD at the time your employment terminates, or at such earlier time or times as
management of BD may specify, all Documents then in your possession or control.

          (2) Non-Competition; Non-Hire; Non-Solicitation.

               (a) During the term of your employment and for a period of three years commencing on the date
of your termination of employment by the BD Group without Cause or by you for Good Reason (the
“Restricted Period”), you will not engage or participate in, directly or indirectly, as
principal, agent, employee, employer, consultant, investor or partner, or assist in the management
of, or own any stock or any other ownership interest in (excluding ownership of not more than one
(1%) percent of the voting stock of any publicly held corporation), any business which is
Competitive with the Company or any company in the BD Group that engages in the same business as
the Company (such companies shall collectively be referred to as the “Restricted Group”).

               (b) A business shall be considered “Competitive with the Restricted Group” if, as of the Date
of Termination, it is engaged in any business, venture or activity, or is developing any product,
in the Restricted Area (as defined below) which competes, plans to compete or upon
commercialization, would compete, with any business, product, venture or activity (x) being
conducted or developed by any member of the Restricted Group or (y) proposed to be conducted by the
Company (as evidenced by any internal written business plans or memoranda of the Company).

               (c) The “Restricted Area” shall mean the United States of America, Canada, and any other
geographic area where, determined as of the Date of Termination, (x) the Restricted Group is
conducting or developing, or (y) the Company has proposed to conduct (as evidenced by any internal
written business plans or memoranda of the Company), any business, venture or activity.

               (d) During the term of your employment and during the Restricted Period, you will not hire any
officer, director, consultant, executive or employee of the Restricted Group, nor will you solicit
or attempt to solicit any such person to leave his or her engagement

 

 

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with the Restricted Group.
During the term of your employment and during the Restricted Period, you will not call upon,
solicit, divert or attempt to solicit or divert from the Restricted Group any of their customers or
suppliers or potential customers or suppliers of whose names you were made aware through your
employment with the BD Group.

               (e) During the Restricted Period you shall notify BD with a copy to the Company of any change
of address and of any subsequent employment (stating the name and address of the employer and the
nature of the position) or any other business activity.

          (3) Non-Disparagement. During the term of your employment and for five (5) years
thereafter, you shall not disparage, deprecate, or make any comments or take any other actions,
directly or indirectly, that could reflect adversely on the BD Group or its officers, directors,
employees or agents or adversely affect their business reputation or goodwill.

          (4) Release and Waiver of Claims. Upon your termination of employment by the BD Group
without Cause or by you for Good Reason, and in consideration of the benefits and covenants
provided to you under the terms of this letter agreement, you hereby agree to execute the Release
and Waiver of Claims attached hereto as Exhibit B.

     C. CONFLICT AMONG AGREEMENTS OR BENEFIT PLANS.

     In the event of any conflict between the provisions of this letter agreement and the terms of
any other agreement, including, without limitation, the Change in Control Agreement and the Prior
Agreements (except to the extent provided herein) or any benefit plan under which you are entitled
to receive payments or benefits, or any agreement, instrument, other document or undertaking
between you and the BD Group, unless otherwise specifically provided herein, the provisions of this
letter agreement shall control.

     D. DEDUCTION; WITHHOLDING; SET-OFF.

     Notwithstanding any other provision of this letter agreement, any payments or benefits
hereunder shall be subject to the withholding of such amounts, if any, relating to tax and other
payroll deductions as the Company reasonably determines it should withhold pursuant to any
applicable law or regulation. The amounts due and payable under this letter agreement shall at all
times be subject to the right of set-off of the Company for any amounts or debts incurred and owed
by you to the BD Group whether during your employment or after the Date of Termination.

     E. LEGAL FEES.

     If any contest or dispute shall arise between you and the Company regarding or as a result of
any provision of this letter agreement, the Company shall reimburse you for all reasonable
attorney’s fees and legal expenses incurred by you up to a maximum of $75,000 in connection with
such contest or dispute, but only if you are successful with respect to substantially all of

 

 

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your
material claims pursued or defended in connection with such contest or dispute. Such reimbursement
shall be made as soon as practicable following the final adjudication (not subject to further
appeal) by a court or arbitrator, or by settlement of the dispute to the extent that the Company
receives reasonable written evidence of such fees and expenses.

     F. LITIGATION AND REGULATORY COOPERATION.

     You agree to cooperate fully with the Company or any related entity in the defense or
prosecution of any claims or actions now in existence or which may be brought in the future against
or on behalf of the Company or any related entity that relate to events or occurrences that
transpired during your employment and consultancy with the BD Group. Your full cooperation in
connection with such claims or actions shall include, but not be limited to, being available to
meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the BD
Group at mutually convenient times. In scheduling your time to prepare for discovery or trial, the
BD Group shall attempt to minimize interference with any other employment obligations that you may
have. You also shall cooperate with the BD Group in connection with any investigation or review of
any foreign, federal, state or local regulatory authority as any such investigation or review
relates to events or occurrences that transpired while you were employed by the BD Group. The
Company shall reimburse you for any reasonable out-of-pocket expenses incurred in connection with
any litigation and regulatory cooperation provided under this Section V(F) after your Date of
Termination. In the event that you are named personally in any legal proceeding relating to your
activities on behalf of the BD Group, you will be eligible for indemnification by the Company to
the extent permitted by the Company’s by-laws and other governance documents, as well as the
Company’s liability insurance policies, as in effect at the time you make a claim for
indemnification.

     G. NOTICE.

     For the purpose of this letter agreement, notices and all other communications provided for in
this letter agreement shall be in writing and shall be delivered to each party at each party’s
respective address set forth on the first page of this letter agreement, and shall be deemed
effectively given or delivered: (i) upon personal delivery to the party to be notified, (ii) three
(3) days after having been sent by registered or certified mail, return receipt requested, postage
prepaid, or (iii) one (1) business day after deposit with a nationally recognized overnight
courier, specifying next day delivery, with written verification of receipt; provided that all
notices to the Company should be directed to the attention of the Chairman of the Board, with a
copy to the General Counsel of BD and the Company.

     H. ENTIRE AGREEMENT.

     Except for the Prior Agreements (to the extent provided herein), this letter agreement
represents the entire agreement of the parties with respect to the subject matter hereof and,
except to the extent provided for herein, supersedes the Change in Control Agreement and, without
limitation, any other agreement between the parties with respect to such subject matter.

 

 

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     I. SUCCESSORS; BINDING AGREEMENT.

     1. The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of the Company to
assume and agree to perform this letter agreement in the same manner and to the same extent that
the Company would be required to perform it if no such succession had taken place; provided,
however, that if all or substantially all of the business or assets of the Company, Tripath
Oncology, Inc., or BD is sold within six (6) months of the completion of the Sale, (i) this letter
agreement shall not be assigned to the successor, but the Company (or such successor, as
applicable) shall remain liable for any payments due hereunder, (ii) you will not be required to
provide services under the terms of this letter agreement, and (iii) the Retention Period will be
deemed to have ended on the date of the completion of such sale to the extent that the Retention
Period does not end earlier; provided, however, that you will be required to comply
with the provisions in Section IV(B) of this letter agreement. As used in this letter agreement,
“Company” shall mean the Company as hereinbefore defined and any successor to its business or
assets as aforesaid which assumes and agrees to perform this letter agreement by operation of law,
or otherwise.

     2. This letter agreement shall inure to the benefit of and be enforceable by your personal or
legal representatives, executors, administrators, successors, heirs, distributees, devisees and
legatees.

     J. COUNTERPARTS.

     This letter agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original but all of which together will constitute one in the same instrument.

     K. ADDITIONAL.

          1. Nothing contained in this letter agreement, nor any action taken hereunder, shall be
construed as a contract of employment, or as giving you any right to be retained as an employee of
the BD Group. Your employment will remain at-will and your obligations under this letter agreement
shall not be affected by any change in your position, title or function with, or compensation by
the Company. Except for the rights provided in Section IV(K)(2) below, any right or obligation of
the BD Group under this letter agreement shall only become effective on the completion of the Sale.

          2. No provision of this letter agreement may be modified, waived, or discharged unless such
waiver, modification, or discharge is agreed to in writing signed by each of you, BD and the
Company.

          3. No waiver by any of the parties hereto at any time of any breach by the another party
hereto of, or compliance with, any condition or provision of this letter agreement to

 

 

Dr. Sohmer

September 8, 2006

Page 12

be performed
by any other party shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any time prior to subsequent time.

          4. The validity, interpretation, construction and performance of this letter agreement shall
be governed by the laws of the State of New York.

          5. The invalidity or unenforceability of any provision of this letter agreement shall not
affect the validity or enforceability of any other provision of this letter agreement, which shall
remain in full force and effect.

          6. Your rights to payments or benefits under this letter agreement shall not be made subject
to option or assignment, either by voluntary or involuntary assignment or by operation of law,
including (without limitation) bankruptcy, garnishment, attachment or other creditor’s process, and
any action in violation of this Section shall be void.

          7. Notwithstanding anything herein to the contrary, (i) if at the time of your termination of
employment with the Company and its affiliates you are a “specified employee” as defined in Section
409A of the Code, and the deferral of the commencement of any payments or benefits otherwise
payable hereunder as a result of such termination of employment is necessary in order to prevent
the imposition of any accelerated or additional tax under Section 409A of the Code, then the
Company will defer the commencement of the payment of any such payments or benefits hereunder
(without any reduction in such payments or benefits ultimately paid or provided to you) until the
date that is six months following your termination of employment with the Company and its
affiliates (or the earliest date as is permitted under Section 409A of the Code) and (ii) if any
other payments of money or other benefits due to you hereunder could cause the application of an
accelerated or additional tax under Section 409A of the Code, such payments or other benefits shall
be deferred if deferral will make such payment or other benefits compliant under Section 409A of
the Code, or otherwise such payment or other benefits shall be restructured, to the extent
possible, in a manner, determined by the Board, that does not cause such an accelerated or
additional tax or result in an additional cost to the Company. BD and the Company shall consult
with you in good faith regarding the implementation of the provisions of this Section; provided
that neither the BD Group nor any of its employees or representatives shall have any liability to
you with respect thereto.

[The remainder of this page intentionally left blank.]

 

 

Dr. Sohmer

September 8, 2006

Page 13

     If this letter agreement correctly sets forth our agreement on the subject matter hereof,
kindly sign and return one originally executed letter to the Company, attention Robert E. Curry,
and one originally executed letter to BD, attention Jeffrey Sherman and this letter agreement will
then constitute the parties’ agreement on this subject.

	 	 	 	 	 
	 

	 	Sincerely,	 	 
	 
	 	 	 	 
	 

	 	TRIPATH IMAGING, INC.	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name: Robert E. Curry	 	 
	 

	 	Title: Chairman of the Compensation Committee	 	 
	 
	 	 	 	 
	 

	 	BECTON, DICKINSON AND COMPANY	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

I acknowledge receipt and agree with the foregoing terms and conditions.

PAUL R. SOHMER, M.D.

 

Paul R. Sohmer, M.D.

 

 

Exhibit A

to the Letter Agreement between Dr. Paul R. Sohmer and TriPath Imaging, Inc., dated

September 8, 2006

Defined terms used herein have the meaning ascribed to them in the letter agreement. Likewise,
terms defined herein shall have the same meanings ascribed to them herein for purposes of the
letter agreement.

TERM OF EMPLOYMENT:

Dr. Sohmer agrees to remain employed by the Company during the Retention Period on the terms and
conditions set forth in this Exhibit A.

For a minimum of a six (6) month period and a maximum of a twelve (12) month period following the
end of the Retention Period, Dr. Sohmer shall provide consulting services to the BD Group as
reasonably requested by the BD Group (other than for services under Section IV(F) of the letter
agreement), for which the Company shall pay Dr. Sohmer a consulting fee paid on a per diem basis,
which fee shall be mutually agreed upon by the parties. Nothing in this paragraph shall prevent
Dr. Sohmer from accepting other employment to begin on a full-time basis at any time after the
Retention Period.

COMPENSATION:

During the Retention Period, Dr. Sohmer shall be paid a base salary of $39,583.33 monthly (the
equivalent of $475,000 annually) to be paid in accordance with the Company’s standard payroll
practices. Dr. Sohmer shall be eligible to participate in all of the benefits provided to other
similarly situated executives of the BD Group, including, without limitation, medical benefits,
life insurance, dental insurance, disability insurance.

LOCATION OF EMPLOYMENT:

During the Retention Period, Dr. Sohmer will be expected to work ten (10) business days per month
in one of the office locations of the Company in North Carolina as mutually agreed upon by the
parties or traveling on Company business (other than to the New Jersey Office (as defined below)).
He will work the remaining portion of the Retention Period from his home office in Croton on
Hudson, New York, unless BD requests that he work from an office in Franklin Lakes, New Jersey
provided to him by BD (the “New Jersey Office”).

All reasonable expenses, including expenses relating to travel from Dr. Sohmer’s home to the
facilities in North Carolina, shall be reimbursed to Dr. Sohmer by the Company within 30 days of
being presented with appropriate invoices, credit card receipts, or other appropriate evidence.

 

 

TITLE AND POSITION:

Dr. Sohmer will be in the position of Worldwide President of BD-TriPath Imaging Unit (the
“Unit”) reporting to an Executive Vice President (or other equivalent executive office) of
BD and will be working to effectuate the transition of the duties outlined below to his
replacement.

DUTIES

Dr. Sohmer’s duties and responsibilities shall include:

	 	(i)	 	Serving as leader of the Unit for all functional activities including
strategic, operational and financial.
	 
	 	(ii)	 	Staffing and managing of all senior functional and technical leadership
positions in the Unit.
	 
	 	(iii)	 	Working closely with regional presidents to manage quality and effectiveness
of business leaders in all geographies.
	 
	 	(iv)	 	Organizing annual business planning and financial submissions to segment
leadership for review and approval.
	 
	 	(v)	 	Managing focus on growth, ROIC, and other related priority measures as
requested by segment President. Targeting quarterly and annual financial performance
to plan, taking into consideration integration and transition issues and costs.
	 
	 	(vi)	 	Building quality and effectiveness of key work processes including
manufacturing, product development, budgeting, sales effectiveness, service to
customers, and related critical activities.
	 
	 	(vii)	 	Communicating routinely to leadership on progress, issues, and opportunities
for future growth and performance. May also manage broader segment projects as
mutually agreed with the Executive Vice President.
	 
	 	(viii)	 	Meeting regularly with key customers and distributors to maintain awareness of
relevant trends and related events in the healthcare industry.
	 
	 	(ix)	 	Working closely with key functions and Unit leadership to pursue those
opportunities for growth or better performance.
	 
	 	(x)	 	Working closely with senior quality and regulatory leaders both in the Unit
and in BD as a whole. Taking active leadership roles in key initiatives in this area.

 

 

	 	(xi)	 	Chairing the Product Development Team which collaborates with BD Technologies
and other business units in technology planning.
	 
	 	(xii)	 	Responsible for product planning.
	 
	 	(xiii)	 	Building team to support key BD initiatives, and align strategy and work process as
well as integrated activities.
	 
	 	(xiv)	 	Working with Human Resource Leader to conduct HR Planning for the business.
	 
	 	(xv)	 	Managing business development activities, both in developed and developing
markets, recognizing role of business development in growth expectations.
	 
	 	(xvi)	 	Any other duties and responsibilities as the Executive Vice President or the
Board of Directors of BD may reasonably assign from time to time consistent with
position as Worldwide President of BD-TriPath Imaging Unit and consistent with the
intent to effectuate the transition of such duties and responsibilities to his
replacement.

 

 

RELEASE AND WAIVER OF CLAIMS

     This
Release and Waiver of Claims (“Release”) is entered
into as of this                      day of
_                                        , 20                    , between [Tripath Imaging, Inc.] and any successor thereto
(collectively, the “Company”) and
                                         (the “Executive”).

     The Executive and the Company agree as follows:

     1. The employment relationship between the Executive and the Company and its subsidiaries and
affiliates, as applicable, terminated on
                                         (the “Termination
Date”).

     2. In accordance with the retention bonus letter agreement, entered into as of August ___,
2006, between Executive and the Company (the “Retention Bonus Agreement”), Executive is
entitled to receive certain payments after the Termination Date.

     3. In consideration of the above, the sufficiency of which the Executive hereby acknowledges,
the Executive, on behalf of the Executive and the Executive’s heirs, executors and assigns, hereby
releases and forever discharges the Company and its members, parents, affiliates, subsidiaries,
divisions, any and all current and former directors, officers, employees, agents, and contractors
and their heirs and assigns, and any and all employee pension benefit or welfare benefit plans of
the Company, including current and former trustees and administrators of such employee pension
benefit and welfare benefit plans, from all claims, charges, or demands, in law or in equity,
whether known or unknown, which may have existed or which may now exist from the beginning of time
to the date of this Release, including, without limitation, any claims the Executive may have
arising from or relating to the Executive’s employment or termination from employment with the
Company and its subsidiaries and affiliates, as applicable, including a release of any rights or
claims the Executive may have under Title VII of the Civil Rights Act of 1964, as amended, and the
Civil Rights Act of 1991 (which prohibit discrimination in employment based upon race, color, sex,
religion, and national origin); the Americans with Disabilities Act of 1990, as amended, and the
Rehabilitation Act of 1973 (which prohibit discrimination based upon disability); the Family and
Medical Leave Act of 1993 (which prohibits discrimination based on requesting or taking a family or
medical leave); Section 1981 of the Civil Rights Act of 1866 (which prohibits discrimination based
upon race); Section 1985(3) of the Civil Rights Act of 1871 (which prohibits conspiracies to
discriminate); the Employee Retirement Income Security Act of 1974, as amended (which prohibits
discrimination with regard to benefits); any other federal, state or local laws against
discrimination; or any other federal, state, or local statute, or common law relating to
employment, wages, hours, or any other terms and conditions of employment. This includes a release
by the Executive of any claims for wrongful discharge, breach of contract, torts or any other
claims in any way related to the Executive’s employment with or resignation or termination from the
Company and its subsidiaries and affiliates, as applicable. This release also includes a release of
any claims for age discrimination under the Age Discrimination in Employment Act, as amended
(“ADEA”). The ADEA requires that the Executive be advised to consult with an attorney
before the Executive waives any claim under ADEA. In addition, the ADEA provides the Executive
with at least 21 days to decide whether to waive claims under ADEA and seven days after the
Executive signs the Release to revoke that waiver. This Release does not release

 

 

2

the Company from
any obligations due to the Executive under the Retention Bonus Agreement or under this Release, any
rights Executive has to indemnification by the Company, and any vested rights Executive has under
the Company’s employee pension benefit and welfare benefit plans (other than claims for benefits
under such employee plans in the ordinary course).

     4. This Release is not an admission by the Company or its subsidiaries or affiliates of any
wrongdoing or liability.

     5. The Executive waives any right to reinstatement or future employment with the Company and
its subsidiaries and affiliates following the Executive’s separation from the Company and its
subsidiaries and affiliates on the Termination Date.

     6. The Executive agrees not to engage in any act after execution of the Release that is
intended, or may reasonably be expected to harm the reputation, business, prospects or operations
of the Company or its subsidiaries or affiliates or their respective officers, directors,
stockholders or employees.

     7. The Executive shall continue to be bound by Section 6 of the Retention Bonus Agreement.

     8. The Executive shall promptly return all Company and subsidiary and affiliate property in
the Executive’s possession, including, but not limited to, Company or subsidiary or affiliate keys,
credit cards, cellular phones, computer equipment, software and peripherals and originals or copies
of books, records, or other information pertaining to the Company or subsidiary or affiliate
business. In addition, the Executive shall promptly return all electronic documents or records that
the Executive may have saved to any such cellular phone, laptop computer or other electronic or
storage device, whether business or personal, including any PowerPoint or other presentation stored
in hard copy or electronically. Further, if Executive stored any information relating to the
Company on a personal computer or other storage device, the Executive shall permanently delete all
such information; provided, however, that, prior to deleting that information, the Executive shall
print out one copy and provide it to the Company.

     9. This Release shall be governed by and construed in accordance with the laws of the State of
New York, without reference to the principles of conflict of laws. Exclusive jurisdiction with
respect to any legal proceeding brought concerning any subject matter contained in this Release
shall be settled in the manner provided in the Retention Bonus Agreement.

     10. This Release represents the complete agreement between the Executive and the Company
concerning the subject matter in this Release and supersedes all prior agreements or
understandings, written or oral. This Release may not be amended or
modified otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

     11. Each of the sections contained in this Release shall be enforceable independently of every
other section in this Release, and the invalidity or unenforceability of any section shall not
invalidate or render unenforceable any other section contained in this Release.

 

 

3

     12. It is further understood that for a period of 7 days following the execution of this
Release in duplicate originals, the Executive may revoke this Release, and this Release shall not
become effective or enforceable until the revocation period has expired. No revocation of this
Release by the Executive shall be effective unless the Company has received within the 7 day
revocation period, written notice of any revocation.

     13. This Release has been entered into voluntarily and not as a result of coercion, duress, or
undue influence. The Executive acknowledges that the Executive has read and fully understands the
terms of this Release and has been advised to consult with an attorney before executing this
Release. Additionally, the Executive acknowledges that the Executive has been afforded the
opportunity of at least 21 days to consider this Release.

     The parties to this Release have executed this Release as of the day and year first written
above.

	 	 	 	 	 	 	 
	 	 	[TRIPATH IMAGING, INC.]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:

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