Document:

exv10w2

 

Exhibit 10.2

THE SHARES ISSUABLE PURSUANT TO THIS AGREEMENT ARE SUBJECT TO THE PROVISIONS OF
THE COMPANY’S 2001 EQUITY-BASED COMPENSATION PLAN AND THIS AGREEMENT IS ENTERED INTO
PURSUANT THERETO.

ODYSSEY HEALTHCARE, INC.

2001 EQUITY-BASED COMPENSATION PLAN

MANAGEMENT

STOCK OPTION AGREEMENT

     This Agreement is made and entered into as of the Grant Date (as defined below) by and between
Odyssey HealthCare, Inc., a Delaware corporation (the “Company”) and Robert A. Lefton (the
“Optionee”):

     WHEREAS, the Company in order to induce you to enter into and continue in service to the
Company and to contribute to the success of the Company, agrees to grant you an option to acquire a
priority interest in the Company through the purchase of shares of stock of the Company;

     WHEREAS, the Company adopted the Odyssey HealthCare, Inc. 2001 Equity-Based Compensation Plan
as it may be amended from time to time (the “Plan”) under which the Company is authorized to grant
stock options to certain employees and directors of the Company;

     WHEREAS, a copy of the Plan has been furnished to you and shall be deemed a part of this
common stock option agreement (the “Agreement”) as if fully set forth herein; and

     WHEREAS, you desire to accept the option created pursuant to the Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants set forth herein and for other
valuable consideration hereinafter set forth, the parties agree as follows:

     1. The Grant. Subject to the conditions set forth below, the Company hereby grants to
you, effective as of October 11, 2005 (“Grant Date”), as a matter of separate inducement and not in
lieu of any salary or other compensation for your services for the Company, the right and option to
purchase (the “Option”), in accordance with the terms and conditions set forth herein and in the
Plan, an aggregate of 500,000 shares of the Company’s Common Stock, $.001 par value (the “Option
Shares”), at the Exercise Price (as hereinafter defined). As used herein, the term “Exercise
Price” shall mean a price equal to
$15.55 per share, subject to the adjustments and limitations
set forth herein and in the Plan. The Exercise Price as of the Grant Date shall not be less than
the Fair Market Value of the Company’s Common Stock. To the extent allowed by law, the Option
granted hereunder is intended to constitute an Option which is designed pursuant to section 422 of
the Internal Revenue Code of 1986, as amended (the “Code”); however, you should consult with your
tax advisor concerning the proper reporting of any federal, state or local tax liability that may
arise as a result of the grant or exercise of the Option.

 

 

     2. Exercise.

          (a) For purposes of this Agreement, the Option Shares shall be deemed “Nonvested Shares”
unless and until they have become “Vested Shares.” The Option shall in all events terminate at the
close of business on the tenth (10) anniversary of the date of this Agreement. Subject to other
terms and conditions set forth herein, the Option may be exercised in cumulative installments as
follows:

	 	 	 	 	 
	     On or After Each of the Following	 	Cumulative Percentage of Shares as
	                      Vesting Dates	 	to Which Option is Exercisable
	First Anniversary of the Grant Date
	 	 	25	%
	Second Anniversary of the Grant Date
	 	 	50	%
	Third Anniversary of the Grant Date
	 	 	75	%
	Fourth Anniversary of the Grant Date
	 	 	100	%

     Option Shares shall constitute Vested Shares once they are exercisable.

          (b) Subject to the relevant provisions and limitations contained herein and in the Plan, you
may exercise the Option to purchase all or a portion of the applicable number of Vested Shares at
any time prior to the termination of the Option pursuant to this Option Agreement. In no event
shall you be entitled to exercise the Option for any Nonvested Shares or for a fraction of a Vested
Share.

          (c) Notwithstanding any other provision of this Agreement as of the business day immediately
preceding a Change in Control all Nonvested Shares shall become Vested Shares.

          (d) Any exercise by you of the Option shall be in writing addressed to the Secretary of the
Company at its principal place of business. Exercise of the Option shall be made by delivery to
the Company by you (or other person entitled to exercise the Option as provided hereunder) of (i)
an executed “Notice of Exercise of Common Stock Option and Record of Common Stock Transfer,” in the
form attached hereto as Exhibit A and incorporated herein by reference, and (ii) payment of the
aggregate purchase price for shares purchased pursuant to the exercise.

          (e) Payment of the Exercise Price may be made, with the consent of the Committee, (i) in cash,
by certified or official bank check or by wire transfer of immediately available funds, (ii) by
delivery to the Company of a number of shares of Stock having a fair market value as of the date of
exercise equal to the Exercise Price, or (iii) by net issue exercise, pursuant to which the Company
will issue to you a number of Option Shares as to which the Option is exercised, less a number of
shares with a fair market value as of the date of exercise, as determined in good faith by the
Committee, equal to the Exercise Price.

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          (f) In the event that you shall cease to be employed by the Company or any Subsidiary or
parent thereof for any reason other than as a result of a Cause termination, your death or your
“disability” (within the meaning of section 22(e)(3) of the Code), the Option may only be exercised
within 90 days (one year with respect to that portion of the Option, if any, that is reclassified
as a Nonstatutory Option pursuant to Section 22(d) of this Agreement) after the date on which you
ceased to be so employed, and only to the same extent that you were entitled to exercise the Option
on the date on which you ceased to be so employed and had not previously done so.

          (g) In the event that you shall cease to be employed by the Company or any Subsidiary or
parent thereof due to a Cause termination, no portion of the Option shall continue to be
exercisable as of your date of termination.

          (h) In the event that you shall cease to be employed by the Company or any Subsidiary or
parent thereof by reason of “disability” (within the meaning of section 22(e)(3) of the Code), the
Option may only be exercised within one year after the date you ceased to be so employed, and only
to the same extent that you were entitled to exercise the Option on the date on which you ceased to
be so employed by reason of such disability and had not previously done so.

          (i) In the event that you shall die while employed by the Company or any Subsidiary or parent
thereof, the Option may be exercised at any time prior to its termination as provided in Section
2(a). In such event, the Option may be exercised during such period by the executor or
administrator of your estate or by any person who shall have acquired the Option through bequest or
inheritance, but only to the same extent that you were entitled to exercise the Option immediately
prior to the time of your death and you had not previously done so.

          (j) If you are on leave of absence for any reason, the Company may, in its sole discretion,
determine that you will be considered to still be in the employ of or providing services for the
Company, provided that rights to the Option Shares will be limited to the extent to which those
rights were earned or vested when the leave or absence began.

          (k) The terms and provisions of the employment agreement, if any, between you and the Company
or any Subsidiary (the “Employment Agreement”) that relate to or affect the Option are incorporated
herein by reference. Notwithstanding the foregoing provisions of this Section 2, in the event of
any conflict or inconsistency between the terms and conditions of this Section 2 and the terms and
conditions of the Employment Agreement, the terms and conditions of the Employment Agreement shall
be controlling.

     3. Transferability.

          The Option, and any rights or interests therein will be transferable by you only by will or
the laws of descent and distribution; provided, however, that with respect to that portion of the
Option, if any, that is reclassified as a Nonstatutory Option pursuant to Section 22(d) of this
Agreement, the Committee, in its discretion, may allow the Option to be transferable or assignable
if such transfer or assignment complies with the rules promulgated in connection with a Form S-8
registration statement, and provided further that a transfer which is only allowed

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subject to the Committee’s approval may only be made to a Permitted Transferee or subject to a
domestic relations order entered or approved by a court of competent jurisdiction.

     4. Registration. From time to time, the Board and appropriate officers of the Company
shall and are authorized to take whatever actions are necessary to file required documents with
governmental authorities, stock exchanges, and other appropriate persons to make shares of Common
Stock available for issuance pursuant to the exercise of Options and subsequent lapse of
restrictions.

     5. Withholding Taxes. The Committee may, in its discretion, require you to pay to the
Company at the time of the exercise of an Option or thereafter, the amount that the Committee deems
necessary to satisfy the Company’s current or future obligation to withhold federal, state or local
income or other taxes that you incur by exercising an Option. In connection with such an event
requiring tax withholding, you may (a) direct the Company to withhold from the shares of Common
Stock to be issued to you the number of shares necessary to satisfy the Company’s obligation to
withhold taxes, that determination to be based on the shares’ fair market value as of the date of
exercise; (b) deliver to the Company sufficient shares of Common Stock (based upon the fair market
value as of the date of such delivery) to satisfy the Company’s tax withholding obligation, which
tax withholding obligation is based on the shares’ fair market value as of the date of exercise; or
(c) deliver sufficient cash to the Company to satisfy its tax withholding obligations. If you
elect to use a Common Stock withholding feature you must make the election at the time and in the
manner that the Committee prescribes. The Committee may, at its sole option, deny your request to
satisfy withholding obligations through Common Stock instead of cash. In the event the Committee
subsequently determines that the aggregate fair market value (as determined above) of any shares of
Common Stock withheld or delivered as payment of any tax withholding obligation is insufficient to
discharge that tax withholding obligation, then you shall pay to the Company, immediately upon the
Committee’s request, the amount of that deficiency in the form of payment requested by the
Committee.

     6. Adjustments. The terms of the Option shall be subject to adjustment from time to
time, in accordance with the following provisions:

          (a) If at any time, or from time to time, the Company shall subdivide as a whole (by
reclassification, by a Common Stock split, by the issuance of a distribution on Common Stock
payable in Common Stock or otherwise) the number of shares of Common Stock then outstanding into a
greater number of shares of Common Stock, then (i) the number of shares of Common Stock (or other
kind of securities) that may be acquired under the Option shall be increased proportionately and
(ii) the price (including exercise price) for each share of Common Stock (or other kind of shares
or securities) subject to then outstanding Options shall be reduced proportionately, without
changing the aggregate purchase price or value as to which outstanding Options remain exercisable
or subject to restrictions.

          (b) If at any time, or from time to time, the Company shall consolidate as a whole (by
reclassification, reverse Common Stock split or otherwise) the number of shares of Common Stock
then outstanding into a lesser number of shares of Common Stock, (i) the number of shares of Common
Stock (or other kind of shares or securities) that may be acquired under the Option shall be
decreased proportionately and (ii) the price (including exercise price)

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for each share of Common Stock (or other kind of shares or securities) subject to then
outstanding Options shall be increased proportionately, without changing the aggregate purchase
price or value as to which outstanding Options remain exercisable or subject to restrictions.

          (c) Whenever the number of shares of Common Stock subject to the Option and the price for each
share of Common Stock subject to the Option are required to be adjusted as provided in this Section
6, the Committee shall promptly prepare a notice setting forth, in reasonable detail, the event
requiring adjustment, the amount of the adjustment, the method by which such adjustment was
calculated, and the change in price and the number of shares of Common Stock, other securities,
cash, or property purchasable and held by you pursuant to the exercise of the Option or subject to
the Option after giving effect to the adjustments. The Committee shall promptly give you such a
notice.

          (d) Adjustments under this Section 6 shall be made by the Committee, and its determination as
to what adjustments shall be made and the extent thereof shall be final, binding, and conclusive.
No fractional interest shall be issued under the Plan on account of any such adjustments.

     7. Furnish Information. You agree to furnish to the Company all information requested
by the Company to enable it to comply with any reporting or other requirement imposed upon the
Company by or under any applicable statute or regulation.

     8. Remedies. The Company shall be entitled to recover from you reasonable attorneys’
fees incurred in connection with the enforcement of the terms and provisions of this Agreement
whether by an action to enforce specific performance or for damages for its breach or otherwise.

     9. No Liability for Good Faith Determinations. The Company and the members of the
Committee and the Board shall not be liable for any act, omission or determination taken or made in
good faith with respect to this Agreement or the Option granted hereunder.

     10. Execution of Receipts and Releases. Any payment of cash or any issuance or
transfer of shares of Common Stock or other property to you, or to your legal representative, heir,
legatee or distributee, in accordance with the provisions hereof, shall, to the extent thereof, be
in full satisfaction of all claims of such persons hereunder. The Company may require you or your
legal representative, heir, legatee or distributee, as a condition precedent to such payment or
issuance, to execute a release and receipt therefore in such form as it shall determine. 

     11. No Guarantee of Interests. The Board and the Company do not guarantee the Common
Stock of the Company from loss or depreciation. 

     12. Company Records. Records of the Company regarding your service and other matters
shall be conclusive for all purposes hereunder, unless determined by the Company to be incorrect.

     13. Notice. All notices required or permitted under this Agreement must be in writing
and personally delivered or sent by mail and shall be deemed to be delivered on the date on which
it is actually received by the person to whom it is properly addressed or if earlier the date

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it is deposited, postage paid in the United States mail. A notice shall be effective when
actually received by the appropriate Company representative, in writing and in conformance with
this Agreement and the Plan.  

     14. Waiver of Notice. Any person entitled to notice hereunder may, by written form,
waive such notice.

     15. Information Confidential. As partial consideration for the granting of this
Option, you agree that you will keep confidential all information and knowledge that you have
relating to the manner and amount of your participation in the Plan; provided, however, that such
information may be disclosed as required by law and may be given in confidence to your spouse, tax
and financial advisors, or a financial institution to the extent that such information is necessary
to obtain a loan.

     16. Successors. This Agreement shall be binding upon you, your legal representatives,
heirs, legatees and distributees, and upon the Company, its successors and assigns.

     17. Headings. The titles and headings of paragraphs are included for convenience of
reference only and are not to be considered in construction of the provisions hereof.

     18. Governing Law. All questions arising with respect to the provisions of this
Agreement shall be determined by application of the laws of the State of Delaware except to the
extent Delaware law is preempted by federal law.

     19. Word Usage. Words used in the masculine shall apply to the feminine where
applicable, and wherever the context of this Agreement dictates, the plural shall be read as the
singular and the singular as the plural.

     20. No Assignment. You may not assign this Agreement or any of your rights under this
Agreement without the Company’s prior written consent, and any purported or attempted assignment
without such prior written consent shall be void.

     21. Arbitration. You and the Company agree, upon written request of either you or the
Company, to the resolution by binding arbitration of all claims, demands, causes of action,
disputes, controversies or other matters in question (“Claims”), whether or not arising out of this
Agreement or your employment (or its termination), whether arising in contract, tort or otherwise
and whether provided by statute, equity or common law, that the Company may have against you or
that you may have against the Company or its parents, subsidiaries or affiliates, and each of the
foregoing entities’ respective officers, directors, employees or agents in their capacity as such
or otherwise, if such Claim is not resolved by the mutual written agreement between you and the
Company, or otherwise, within 30 days after notice of the dispute is first given. Claims covered
by this Section 21 include without limitation claims by you for breach of this Agreement, wrongful
termination, discrimination (based on age, race, sex, disability, national origin, sexual
orientation, religion or any other factor), harassment and retaliation. Any arbitration shall be
conducted in accordance with the Federal Arbitration Act (“FAA”) and, to the extent an issue is not
addressed by the FAA, with the then-current National Rules for the Resolution of Employment
Disputes of the American Arbitration Association (“AAA”) or such other rules of

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the AAA as are applicable to the claims asserted. If a party refuses to honor its obligations
under this Section 21, the other party may compel arbitration in either federal or state court.
The arbitrators shall apply the substantive law of Delaware (excluding choice-of-law principles
that might call for the application of some other jurisdiction’s law) or federal law, or both as
applicable to the claims asserted. The arbitrators shall have exclusive authority to resolve any
dispute relating to the interpretation, applicability or enforceability or formation of this
Agreement (including this Section 21), including any claim that all or part of the Agreement is
void or voidable and any claim that an issue is not subject to arbitration. The results of
arbitration will be binding and conclusive on the parties hereto. Any arbitrators’ award or finding
or any judgment or verdict thereon will be final and unappealable. All parties agree that venue for
arbitration will be in Dallas, Texas, and that any arbitration commenced in any other venue will be
transferred to Dallas, Texas, upon the written request of any party to this Agreement. In the event
that an arbitration is actually conducted pursuant to this Section 21, the party in whose favor the
arbitrator renders the award shall be entitled to have and recover from the other party all costs
and expenses incurred, including reasonable attorneys’ fees, reasonable costs and other reasonable
expenses pertaining to the arbitration and the enforcement thereof and such attorneys fees, costs
and other expenses shall become a part of any award, judgment or verdict. Any and all of the
arbitrators’ orders, decisions and awards may be enforceable in, and judgment upon any award
rendered by the arbitrators may be confirmed and entered by any federal or state court having
jurisdiction. All arbitrations will have three individuals acting as arbitrators: one arbitrator
will be selected by you, one arbitrator will be selected by the Company, and the two arbitrators so
selected will select a third arbitrator; provided that (a) you or the Company shall use reasonably
diligent efforts to select its respective arbitrator within 60 days after a matter is submitted to
arbitration and (b) the parties (including arbitrators) shall not be limited to selecting
arbitrators from only the AAA’s lists of arbitrators. Any arbitrator selected by a party will not
be affiliated, associated or related to the party selecting that arbitrator in any matter
whatsoever. The arbitration hearing shall be conducted within 60 days after the selection of the
arbitrators. All privileges under state and federal law, including attorney-client, work product
and party communication privileges, shall be preserved and protected. The decision of the majority
of the arbitrators will be binding on all parties. Arbitrations will be conducted in a manner so
that the final decision of the arbitrators will be made and provided to you and the Company no
later than 120 days after a matter is submitted to arbitration. All proceedings conducted pursuant
to this agreement to arbitrate, including any order, decision or award of the arbitrators, shall be
kept confidential by all parties. YOU ACKNOWLEDGE THAT BY SIGNING THIS AGREEMENT, YOU ARE WAIVING
ANY RIGHT THAT YOU MAY HAVE TO A JURY TRIAL OR A COURT TRIAL, OF ANY EMPLOYMENT-RELATED CLAIM
ALLEGED BY YOU.

     22. Miscellaneous.

          (a) This Agreement is subject to all the terms, conditions, limitations and restrictions
contained in the Plan. In the event of any conflict or inconsistency between the terms hereof and
the terms of the Plan, the terms of the Plan shall be controlling.

          (b) The Option may be amended by the Board of the Company or by the Committee at any time (i)
if the Board or the Committee determines, in its sole discretion, that amendment is necessary or
advisable in light of any addition to or change in any federal or state,

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tax or securities law or other law or regulation, which change occurs after the Grant Date and
by its terms applies to the Option; or (ii) other than in the circumstances described in clause (i)
or provided in the Plan, with your consent. The foregoing notwithstanding, the Committee may, in
its sole discretion, cancel the Option at any time prior to your exercise of the Option if, in the
opinion of the Committee, you engage in activities contrary to the interests of the Company.

          (c) For purposes of this Agreement “Cause” shall have the meaning set forth in that certain
Employment, dated as of October 11, 2005, by and between the Company and Employee.

          (d) The portion, and only such portion, of this Option, if any, which is attributable to
Option Shares which become purchasable during a calendar year, together with the portion of any
other option attributable to any shares which become purchasable, pursuant to any other plan
maintained by the Company pursuant to section 422 of the Code, during such calendar year, shall
constitute an Option or option which shall be reclassified as an Option or option which is not an
incentive stock option pursuant to section 422 of the Code (herein referred to as “Nonstatutory
Options”) if the Fair Market Value of such Option Shares, as of the Grant Date, or such other
shares, as of the date of grant, together exceeds $100,000.

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Please indicate your acceptance of all the terms and conditions of the award and the Plan by
signing and returning a copy of this Agreement.

	 	 	 	 	 
	 	 	ODYSSEY HEALTHCARE, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard R. Burnham
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Richard R. Burnham
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Chairman of the Board
	 

	 	 	 	 

	 	 	 
	 

	 	 
	ACCEPTED:
	 	 
	 
	 	 
	/s/ Robert A. Lefton
 

Signature of Optionee

	 	 
	 
	 	 
	Robert A. Lefton
 

Name of Optionee (Please Print)

	 	 
	 
	 	 
	Date: October 11, 2005
	 	 

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EXHIBIT A

ODYSSEY HEALTHCARE, INC.

2001 EQUITY-BASED COMPENSATION PLAN

Notice of Exercise of Option and

Record of Common Stock Transfer

PLEASE PRINT:

	 	 	 	 	 
	1.	 	TODAY’S DATE:                                                                                                                                                                                                                            

	2.	 	OPTION HOLDER:                                                                                                                                                                                                                            
	 

	 	 	 	NAME:                                                                                                                                                                                                                                                

MAILING ADDRESS:                                                                                                                                                                                                        

                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                

SOCIAL SECURITY NUMBER:                                                                                                                                                                                    

TO: Attention:                                         

	 	 	 	Re: Notice of Exercise of Option for Odyssey HealthCare, Inc. (the
“Company”) Common Stock par value $.001 per share (“Common Stock”) pursuant to
the Odyssey Healthcare, Inc. 2001 Equity-Based Compensation Plan (the “Plan”)

I hereby exercise my option to acquire                     shares of Common Stock, at my exercise price per
share of $                                        . Enclosed is the original of my Stock Option Agreement evidencing my
Option hereby exercised. Any capitalized terms not defined herein shall have the meaning set forth
in the Plan.

Select and complete the appropriate payment provision from the following alternatives.

	 	 	 
	   1.

	 	My personal check in the amount of $                     (the exercise price per share times
the number of option shares exercised) as payment in full of the total exercise
price has been attached hereto.
	 
	 	 
	   2.

	 	I desire to pay the exercise price in full with shares of Common Stock that I
currently own. Certificates representing                     shares of Common Stock of the
Company, duly endorsed for transfer to the Company have been attached.
	 
	 	 
	   3.

	 	I desire to pay part of the exercise price with shares of Common Stock that I
currently own. My personal check for $                     and certificates representing
                    shares of Common Stock, duly endorsed for transfer to the Company have
been attached hereto.
	 
	 	 
	   4.

	 	I desire to effectuate a net option exercise. I hereby direct to the Company to
exercise my Option for                     shares of Common Stock and direct the Company to
retain any shares resulting from such exercise as are necessary to satisfy my
obligation to

A-1

 

pay the required Exercise Price multiplied by the number of shares for which I am
exercising the Option.

I understand that any election pursuant to Items 2-4 above is subject to approval by the Committee
administering the Plan.

I hereby represent that I have previously received a Stock Option Agreement and a copy of the Plan
from the Company and that I understand the terms and restrictions described herein and therein and
agree to be bound by the terms of each such document.

	 	 	 
	 

	 	 
	 

	 	(Signature)

	 	 	 
	 

	 	 
	Receipt of Notice Acknowledged:
	 	 
	 
	 	 
	                                                            

Date:                                        
	 	 
	 
	 	 
	Receipt of Payment in Full Acknowledged:
	 	 
	 
	 	 
	                                                            

Date:                                        
	 	 
	 
	 	 
	Receipt of Committee Approval if Election under

Items 2-4.
	 	 
	 
	 	 
	                                                            

Date:                                        
	 	 

NOTE: If exercising the stock option represented by the enclosed Stock Option Agreement to
purchase less than all of the shares to which the option relates, the original agreement will be
returned with an appropriate notation evidencing the shares for which the Option has been
exercised.

A-2

 

RECEIPT

     Receipt is hereby acknowledged of the delivery to me by Odyssey HealthCare, Inc., on the
                    day of                                         , 200___of Common Stock Certificates for                    shares of
Common Stock purchased by me pursuant to the terms and conditions of the Odyssey HealthCare, Inc.
2001 Equity-Based Compensation Plan referred to above, which shares were transferred to me on the
Company’s stock record books on the                      day of                     , 200___.

	 	 	 
	 

	 	 
	 

	 	(Signature)

A-3exv10w1

 

Exhibit 10.1

September 30, 2005

Dear Joel:

          I am pleased to offer you a position with Sipex Corporation (the “Company”) as its Senior Vice
President of Operations reporting to Ralph Schmitt, President and CEO. This offer is contingent
upon the successful completion of a satisfactory background check. Your total base compensation
package would be $9,038.46/bi-weekly. ($235,000.00 annualized). In accordance with our
compensation plan, your performance and salary will be reviewed on an annual basis. We will
recommend to the Board of Directors that you be issued 250,000 stock options at the fair market
value at the time of issuance which will be your first day of employment. These options will be
issued in accordance with our Stock Option Policy. In addition your position is eligible for
inclusion in the Sipex Management Incentive Plan which could provide you with up to 80% of your
base salary annually in bonus predicated upon your achievement of our pre-agreed upon goals and
objectives for your position and the Company’s over-all performance.

          You should be aware that your employment with the Company constitutes “at-will” employment.
This means that your employment relationship with the Company may be terminated at any time with or
without notice, with or without good cause or for any or no cause, at either party’s option. You
understand and agree that neither your job performance nor promotions, commendations, bonuses or
the like from the Company give rise to or in any way serve as the basis for modification,
amendment, or extension, by implication or otherwise, of your employment with the Company.

          While employed hereunder, you will be entitled to participate in the employee benefit plans
currently and hereafter maintained by the Company of general applicability to other senior
executives of the Company, including , without limitation, the Company’s group medical, dental,
disability, life insurance and vacation plans. The Company reserves the right to cancel or change
the benefit plans and programs it offers to its employees at any time.

          The Company will also reimburse you for reasonable and documented travel, entertainment or
other expenses incurred by you in the furtherance of or in connection with the performance of your
duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from
time to time.

          If your employment with the Company terminates other than voluntarily, by reason of your death
or disability, or for Cause prior to a “Change of Control” (as defined below) or more than six (6)
months after a Change of Control, and you sign and do not revoke a standard release of claims with
the Company, then you shall be entitled to receive continuing payments of severance pay (less
applicable withholding taxes) at a rate equal to your Base Salary rate, as then in effect, for a
period of six (6) months from the date of such termination, to be paid periodically in accordance
with the Company’s normal payroll policies. In addition, if your employment with the Company
terminates other than voluntary, by reason of your death or disability, or for Cause prior to the
one year anniversary of the Effective Date, 25% of the shares subject to the Option shall
immediately vest and become exercisable for six (6) months following your termination. If your
employment with the Company terminates other than voluntarily, by reason of your death or
disability, or for Cause within six (6) months after a Change of Control, then you shall be
entitled to (i) receive continuing payments of severance pay (less applicable withholding taxes) at
a rate equal to your Base Salary rate, as then in effect, for a period of six (6) months from the
date of such termination, to be paid periodically in accordance with the Company’s normal payroll
policies and (ii) 50% of the shares subject to the Option shall vest and become exercisable for six
(6) months following your termination.

          If your employment with the Company terminates voluntarily by you or for Cause by the Company,
then (i) all vesting of the Option will cease immediately and, in the event of a termination for
Cause only, the Option will immediately cease to be exercisable, (ii) all payments of compensation
by the Company to you hereunder will terminate immediately (except as to amounts already earned),
and (iii) you will only be eligible for severance benefits in accordance with the Company’s
established policies as then in effect.

 

 

          For purposes of this letter, “Cause” means: (1) your failure to perform the duties of your
position (as they may exist from time to time) to the reasonable satisfaction of the Board; (2) any
act of dishonesty, fraud or misrepresentation taken by you in connection with your responsibilities
as an employee; (3) your conviction or plea of no contest to a crime that negatively reflects on
your fitness to perform your duties or harms the Company’s reputation or business, in each case as
determined by the Board in its sole discretion; (4) your violation of any federal, state or other
law or regulation applicable to the Company’s business, or of any Company policy, including, but
not limited to, the Company’s anti-harassment and discrimination policies; (5) willful misconduct
by you that is injurious to the Company’s reputation or business, in each case as determined by the
Board in its sole discretion; (6) a material breach of your obligations hereunder, or under the
Confidential Information and Invention Assignment Agreement to be executed by you (as explained
below); and (7) your termination pursuant to the termination of the Company’s normal business
operations. For purposes of this definition, an act or failure to act will be deemed “willful” if
effected not in good faith or without reasonable belief that such action or failure to act was in
the best interests of the Company.

          For purposes of this letter, a “Change of Control” of the Company is defined as: (i) any
“person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
as amended) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act),
directly or indirectly, of securities of the Company representing sixty percent (60%) or more of
the total voting power represented by the Company’s then outstanding voting securities; or (ii) a
change in the composition of the Board occurring within a two-year period, as a result of which
fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” will mean
directors who either (A) are directors of the Company as of the date hereof, or (B) are elected, or
nominated for election, to the Board with the affirmative votes of at least a majority of the
Incumbent Directors at the time of such election or nomination (but will not include an individual
whose election or nomination is in connection with an actual or threatened proxy contest relating
to the election of directors to the Company); or (iii) the date of the consummation of a merger or
consolidation of the Company with any other corporation that has been approved by the stockholders
of the Company, other than a merger or consolidation which would result in the voting securities of
the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity) more than sixty
percent (60%) of the total voting power represented by the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation, or the stockholders of
the Company approve a plan of complete liquidation of the Company; or (iv) the date of the
consummation of the sale or disposition by the Company of all or substantially all the Company’s
assets. Notwithstanding the foregoing, a “Change of Control” shall not include any transaction or
series of transactions involving the Company’s issuance of any equity or debt securities to third
parties for capital raising purposes.

          You agree to enter into the Company’s standard Confidential Information and Invention
Assignment Agreement (the “Confidential Information Agreement”) upon commencing employment
hereunder.

          This letter will be binding upon and inure to the benefit of (a) your heirs, executors and
legal representatives upon your death and (b) any successor of the Company. Any such successor of
the Company will be deemed substituted for the Company under terms of this letter for all purposes.
For this purpose, “successor” means any person, firm, corporation or other business entity which
at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or
substantially all of the assets or business of the Company. None of your rights to receive any
form of compensation payable pursuant to this letter may be assigned or transferred except by will
or the laws of decent and distribution. Any other attempted assignment, transfer, conveyance or
other disposition of your right to compensation or other benefits will be null and void.

          All notices, requests, demands and other communications called for hereunder shall be in
writing and shall be deemed given (i) on the date of delivery if delivered personally, (ii) one (1)
day after being sent by a well established commercial overnight service, or (iii) four (4) days
after being mailed by registered or certified mail, return receipt requested, prepaid and addressed
to the parties or their successors at the following addresses, or at such other addresses as the
parties may later designate in writing:

If to the Company:

Sipex Corporation

233 S. Hillview Drive

Milpitas, CA 95035

Attn: Chairman of the Board

If to Joel Camarda:

at the last residential address known by the Company.

 

 

          In consideration of your service to the Company, its promise to arbitrate all employment
related disputes and your receipt of the compensation and other benefits paid to you by the
Company, at present and in the future, you agree that any and all controversies, claims, or
disputes with anyone (including the Company and any employee, officer, director, shareholder or
benefit plan of the Company in their capacity as such or otherwise) arising out of, relating from
your service to the Company under this letter or otherwise or the termination of your service with
the Company, including any breach of this letter, shall be subject to binding arbitration under the
Arbitration Rules set forth in California Code of Civil Procedure Section 1280 through 1294.2,
including Section 1283.05 and pursuant to California law. Disputes which you agree to arbitrate,
and thereby agree to waive any right to a trial by jury, include any statutory claims under state
or federal law, including, but not limited to, claims under Title VII of the Civil Rights Act of
1964, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of
1967, the Older Workers Benefit Protection Act, the California Fair Employment and Housing Act,
California Labor Code, claims of harassment, discrimination or wrongful termination and any
statutory claims. You further understand that this letter to arbitrate also applies to any
disputes that the Company may have with you. With respect to any such arbitration, the Company
will pay for any administrative or hearing fees charged by the arbitrator or AAA except that in the
event you initiate such an arbitration proceeding, you shall pay the first $125 of any filing fees
associated with the arbitration.

          You acknowledge and agree that you are executing this letter voluntarily and without any
duress or undue influence by the Company or anyone else. You further acknowledge and agree that
you have carefully read this letter and that you understand the terms, consequences and binding
effect of this letter and fully understand it, including that you are waiving your right to a jury
trial. Finally, you agree that you have been provided an opportunity to seek the advice of an
attorney of your choice before signing this letter.

          This letter, together with the Option Plan (if applicable), Option Agreement and the
Confidential Information Agreement represents the entire agreement and understanding between the
parties as to the subject matter herein and supersedes all prior or contemporaneous agreements
whether written or oral. In the event that any provision hereof becomes or is declared by a court
of competent jurisdiction to be illegal, unenforceable or void, this letter will continue in full
force and effect without said provision. No waiver, alteration, or modification of any of the
provisions of this Agreement will be binding unless in writing and signed by duly authorized
representatives of the parties hereto. This letter shall be governed by the internal substantive
laws, but not the choice of law rules, of the State of California.

          To indicate your acceptance of the Company’s offer, please sign and date this letter in the
space provided below and return it to the Chairman of the Board. A duplicate original is enclosed
for your records. We look forward to working with you at Sipex Corporation.

	 	 	 	 	 	 	 
	 
	SIPEX CORPORATION
	
	 Joel Camarda	 
	 	 

	 	 	 	 	 	 	 
	
	By:	/s/ James G. Chalmers
	 	/s/ Joel Camarda
	 	 
	 
	 	 
	 	 	 	 
	 
	 	 	 	Signature	 	 

	 	 	 	 	 	 	 
	 
	Name:	James G. Chalmers
	 	10-7-05
	 	 
	 
	 	 
	 	 	 	 
	 
	 	 	 	Date	 	 

	 	 	 	 	 	 	 
	 
	Title:	V.P. for H.R.

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