Document:

Exhibit
10.4

 

SECOND
AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

(Michael P. Whitman)

 

                This
Second Amended and Restated Employment Agreement dated March 23, 2007 (this “Agreement”),
is made by and between Power Medical Interventions, Inc., a Delaware corporation
(the “Company”), and Michael P. Whitman (“Executive”).

 

BACKGROUND

 

                WHEREAS,
the Company and Executive entered into an Amended and Restated Employment
Agreement dated as of October 15, 2003, which was amended on March 31, 2005,
December 31, 2006, January 15, 2007, January 31, 2007, February 8, 2007,
February 16, 2007, and February 28, 2007 (as amended, the “Original
Agreement”); and

 

                WHEREAS,
the Company and Executive desire to amend and restate the Original Agreement to
include the terms and conditions set forth herein;

 

                NOW,
THEREFORE, in consideration of the premises, the respective covenants and
commitments of the parties hereto set forth in this Agreement and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.             Employment.  The Company offers and Executive accepts
employment and agrees to perform services for the Company, for the period and
upon the other terms and subject to the conditions set forth in this Agreement.

2.             Employment Term.  The term of Executive’s employment pursuant
to this Agreement shall be retroactive to January 1, 2007 (the “Effective
Date”), and shall continue until December 31, 2008, unless earlier
terminated pursuant to the provisions of Section 8 below.  If in the fourth quarter of 2008 the Company
fails to make an offer to Executive to extend this Agreement beyond December
31, 2008 at a rate of base salary equal to or greater than his rate of base
salary as of December 31, 2008, then the Company shall pay Executive a
severance payment equal to 150% of Executive’s base salary as of December 31,
2008 to be paid in eighteen (18) equal monthly installments commencing January
1, 2009, provided, however, that if Executive is then determined by the Company
to be a “specified employee”, as defined in Section 409A of the Internal
Revenue Code, then payments that would otherwise be paid prior to July 1, 2009
will be suspended and paid in a lump sum on July 1, 2009.

3.             Title and Duties.

3.1.          Service With
Company.  Executive shall serve as the President and
Chief Executive Officer of the Company and shall report to the Board of
Directors of the Company (the “Board”). 
During the term of this Agreement, Executive agrees to perform all
duties consistent with his position as President and Chief Executive Officer of
the Company.  Executive shall have such
management and control of the business, affairs and property of Employer as are
consistent with his position, with all such powers with respect to such
management and control 

 

as may be reasonably incident to such
responsibilities.  Executive may also
serve as an officer or director of one or more subsidiaries of the Company; provided,
however, that Executive shall not be entitled to any additional compensation
for serving in such additional capacities.

3.2.          Performance
of Duties.  Executive agrees to serve the Company
faithfully and to the best of his ability and to devote his full time,
attention and best efforts to the business and affairs of the Company after the
Effective Date and during the term of this Agreement.

3.3.          Compliance
with Company Policies.  Executive agrees that in the rendering of all
services to the Company and in all aspects of employment hereunder, he shall
comply in all material respects with all written policies from time to time
established by the Company, including without limitation Section 104 of Company’s
Employment Policies and Procedures Manual, to the extent they are not in
conflict with this Agreement.

3.4.          Obligations to
Third Parties.  Executive hereby represents, warrants and
agrees: (i) that Executive has the full right to enter into this Agreement and
perform the services required of him hereunder, without any restriction
whatsoever; (ii) that in the course of performing services hereunder, Executive
will not violate the terms or conditions of any agreement between him and any
third party or infringe or wrongfully appropriate any patents, copyrights,
trade secrets or other intellectual property rights of any Person (as defined
in Section 9) anywhere in the world; (iii) that Executive has not and will not
disclose or use during his employment  by the
Company any confidential information that he acquired as a result of any
previous employment or or under a previous obligation of confidentiality; and
(iv) that Executive has disclosed to the Company in writing any and
all continuing obligations to previous employers or others that require
him not to disclose any information to the Company.

4.             Compensation and
Benefits.

4.1.          Salary.

(a)           2007 Salary. 
During calendar year 2007, Company shall pay Executive a base salary (“Salary”)
payable in equal installments in accordance with Company’s standard schedule
for salary payments to its executive employees, at an annual rate equal to
$365,000.  On the first regular payroll
date after the execution of this Agreement (the “True-Up Date”), the
Company shall pay Executive $12,115.40 in order to give Executive the economic
benefit of his increase of Salary for the period of time between the Effective
Date and the True-Up Date.

(b)           2008 Salary. 
During calendar year 2008, Executive’s Salary shall be paid an annual
rate equal to the greater of (i) $385,000 or (ii) such amount as the Board
shall determine after good faith negotiations with Executive in December 2007.

(c)           Customary Deductions.  All amounts payable to Executive pursuant to
this Section 4.1 shall be subject to customary and proper payroll deductions.

 

 

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4.2.          Cash
Bonuses.

(a)           2006 Cash Bonus.  On the True-Up Date, the Company shall pay
Executive a cash bonus of $40,000.

(b)           2007 Cash Bonuses.

(i)            Qualified Public
Offering.  In the event that the
Company consummates a Qualified Public Offering (as defined in Section 10) in
2007, then the Company shall pay Executive a cash bonus of $73,000 within seven
days after the closing.

(ii)           Successful M60
Launch.  In the event that the
Company achieves a Successful M60 Launch (as defined in Section 9) in 2007,
then the Company shall pay Executive a cash bonus of $54,750 within seven days
after such achievement.

(iii)          2007 Revenues.

(A)          In the event that the
Company recognizes revenues in 2007 that represent between 85 - 100% of the
target of $[confidential treatment requested pursuant to Rule 406], determined
in accordance with GAAP (as defined in Section 9), then the Company shall pay
Executive a cash bonus in January 2008 equal to $127,750 multiplied by that
same percentage.

(B)           In the event that
the Company recognizes revenues in 2007 of $[confidential treatment requested
pursuant to Rule 406], determined in accordance with GAAP, then the Company
shall pay Executive a cash bonus in January 2008 equal to $182,500.  If Executive qualifies for a bonus under this
Section 4.2(b)(iii)(B) then the Company shall have no obligation to pay
Executive a bonus pursuant to Section 4.2(b)(iii)(A).

(iv)          2007 Income
(Loss).  In the event that the
Company recognizes net income in 2007 that represents between 100 - 115% of the
target of “[confidential treatment requested pursuant to Rule 406], determined
in accordance with GAAP, then the Company shall pay Executive a cash bonus in
January 2008 equal to $54,750 divided by that same percentage.

 

(v)           2007 Gross Margin.  In the event that the Company achieves a Gross
Margin (as defined in Section 9) in 2007 that represent between 85 - 100% of
the target of $[confidential treatment requested pursuant to Rule 406], then
the Company shall pay Executive a cash bonus in January 2008 equal to $54,750
multiplied by that same percentage.

(vi)          Change of Control.  Notwithstanding any other provision of this
Section 4.2(b), the Company shall pay Executive all of the bonuses contemplated
by this Section 4.2(b) (calculated as if the Company had achieved 100% of its
targets) after the Company enters into a binding legal agreement in 2007 with
respect to a Change of Control (as defined in Section 9) and the closing of
such transaction occurs.  Such bonuses
shall be paid to the Executive within seven days after the closing of the Change
of Control transaction.  For the
avoidance of doubt, the Company shall not pay Executive more than once with
respect to any bonus contemplated by this Section 4.2(b).

 

 

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(c)           2008 Cash Bonus. 
Executive will be eligible for a cash bonus in 2008 based on the
following: (i) Company’s performance during 2008 measured against one or more
Company goals set by the Board at the end of 2007 after negotiations with the
Executive, and (ii) Executive’s performance during 2008 measured against one or
more job-specific goals determined by the Board at the end of 2007 after
negotiations with the Executive.  The
potential amount of the 2008 Cash Bonus target will be determined by the Board
at the end of 2007; provided, however, that (i) the target shall not be
less than 115% of Executive’s Salary in 2008, and (ii) the Company shall pay
Executive 100% of the 2008 Cash Bonus (calculated as if Executive has achieved
the 2008 goals set by the Board) after the Company enters into a binding legal
agreement in 2008 with respect to a Change of Control and the closing of such
transaction occurs.  Such bonuses shall
be paid to Executive within seven days after the closing of the Change of
Control transaction.

(d)           Customary Deductions.  All amounts payable to Executive pursuant to
this Section 4.2 shall be subject to customary and proper payroll deductions.

4.3.          Stock Options.

(a)           2007 Stock Option. 
The Company shall grant to Executive a nonqualified stock option (the “2007
Option”) to purchase 6,081,085 shares of Common Stock (the “2007 Option
Shares”).  The 2007 Option shall have
an exercise price per share equal to the fair market value on the date of grant
(as determined by the Board after considering advice from The Baker-Meekins Company,
Inc.) and shall be substantially in the form of Exhibit 4.3.  The 2007 Option shall be subject to the
following vesting requirements:

(i)            Qualified Public
Offering.  In the event that the
Company consummates a Qualified Public Offering in 2007, then 25% of the 2007
Option Shares shall become vested;

(ii)           Successful M60
Launch.  In the event that the
Company achieves a Successful M60 Launch in 2007, then 25% of the 2007 Option
Shares shall become vested;

(iii)          2007 Revenues.  In the event that the Company recognizes
revenues in 2007 that represent between 85 - 100% of the target of $[confidential
treatment requested pursuant to Rule 406], determined in accordance with GAAP,
then a number of 2007 Option Shares shall become vested and that number shall be
equal to (A) 40% of the total number of 2007 Option Shares, multiplied by (B)
the percentage of target revenues referenced above;

(iv)          2007 Gross Margin.  In the event that the Company achieves a
Gross Margin in 2007 that represent between 85 - 100% of the target of $[confidential
treatment requested pursuant to Rule 406], then a number of 2007 Option Shares
shall become vested and that number shall be equal to (A) 10% of the total
number of 2007 Option Shares, multiplied by (B) the percentage of target Gross
Margin referenced above; and

(v)           Change of Control.  Notwithstanding any other provision of this
Section 4.3, all  of the 2007 Option Shares
(calculated as if the Company had achieved 100% of its targets) shall become
vested immediately after the Company enters into a binding legal 

 

 

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agreement
with respect to a Change of Control in 2007 and the closing of such transaction
occurs.

(b)           2008 Stock Option. 
Subject to applicable law, in January 2008, the Company shall grant to
Executive a nonqualified stock option (the “2008 Option”) to purchase a
number of shares (the “2008 Option Shares”) equal to (i) 7% of the
shares of capital stock of the Company that are outstanding on a fully diluted
basis (including all outstanding shares of capital stock, conversion of all
outstanding convertible securities, and the exercise of outstanding options and
warrants, and excluding any shares issued, directly or indirectly, in
connection with or after a Qualified IPO) as of January 1, 2008, less (ii) the number of shares of capital
stock of the Company that are owned or controlled by Executive or his family or
his affiliates (as defined under the Act), calculated on a fully-diluted basis
(including all outstanding shares of capital stock, conversion of all
outstanding convertible securities, and the exercise of outstanding options,
other than the 2008 option, and warrants) as of January 1, 2008.  The 2008 Option shall have an exercise price
per share equal to the fair market value on the date of grant (as determined by
the Board after considering advice from The Baker-Meekins Company, Inc.) and
shall be subject to vesting requirements to be determined by the Board after
negotiations with Executive; provided, however, that the 2008 Option
shall provide that all  of the 2008 Option Shares shall become vested immediately
after the Company enters into a binding legal agreement with respect to a
Change of Control in 2008 and the closing of such transaction occurs.

4.4.          Other Benefits.  Executive shall
have the right to participate in all benefit plans which may be in effect for
the Company’s executive employees from time to time, including, without
limitation, group health and dental insurance, group life insurance, disability
insurance, and any retirement, 401(K), profit-sharing or pension plans, in
accordance with the terms and conditions thereof.  If the Company does not have and maintain a
reasonable and customary long-term disability insurance program, the Company
shall pay or reimburse Executive for the annual premiums (not to exceed $2,000
per Year) on a disability income insurance policy owned by and covering
Executive.

4.5.          Expenses.  During the term of
this Agreement, the Company shall pay or reimburse Executive for all reasonable
and necessary out-of-pocket expenses incurred by Executive in the performance
of his duties under this Agreement, subject to the presentment by Executive of
appropriate expense reports and receipts in accordance with the Company’s
normal policies for expense verification.

4.6.          Vacation.  Executive shall be
entitled to four weeks vacation each calendar year.  Any vacation taken by Executive shall be
taken at such time as is reasonably convenient in relationship to the needs of
the business of the Company.  Vacation
time shall not accrue beyond the year in question; provided, however,
that any vacation time not taken during any year due to constraints imposed by
the Company’s business requirements shall accrue beyond the year in question.

4.7.          Automobile
Expenses.  The Company shall pay to Executive during the
term of employment a monthly car allowance in an amount equal to $1,500.

 

 

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4.8.          Life Insurance.  The Company shall provide Executive with
additional term life insurance coverage of $2,000,000 provided Executive can
pass a standard physical.  Such coverage
shall be provided by the same insurer as provides the coverage under the
Company’s group life insurance plan, or another carrier acceptable to the Company.

4.9.          Tax Payments.  In December of each
year, the Company shall pay to Executive the sum of $10,000 as an agreed upon
reimbursement for federal, state and local income taxes payable by Executive as
a result of his receiving during such Year (i) the benefits provided for in
Sections 4.4 (disability income policy only), 4.7 and 4.8 above and (ii) the
payment under this Section 4.9.  Upon
termination of this Agreement during any Year, the Company shall pay to Executive,
within 30 days of such termination, any unpaid amount required to be paid under
this Section 4.9 (on a prorated basis if such benefits cease upon such
termination).

5.             Restrictive
Covenants.

5.1.          Confidentiality.

(a)           Confidential Information.  Subject to Section 5.1(b):

(i)            Duty to Maintain
Confidentiality.  Executive shall
maintain in strict confidence and duly safeguard to the best of his ability any
and all Confidential Information (as defined in Section 9).

(ii)           Covenant Not to
Disclose, Use or Exploit.  Executive
shall not, directly or indirectly, disclose, divulge or otherwise communicate
to anyone or use or otherwise exploit for the benefit of anyone, other than the
Company, any Confidential Information.

(iii)          Confidential
Materials.  All Confidential
Information and Confidential Materials (as defined in Section 9) are and shall
remain the exclusive property of the Company and no Confidential Materials may
be copied or otherwise reproduced, removed from the premises of the Company or
entrusted to any Person (other than the Company or Personnel entitled to such
Confidential Materials) without prior written permission from the Company.

(b)           Permitted Activities.  If Executive receives a request or demand for
Confidential Information (whether pursuant to a discovery request, subpoena or
otherwise), Executive shall immediately give the Company written notice thereof
and shall at the Company’s expense (provided the Company approves any and all
such expenses) exert his best efforts to resist disclosure, including, without
limitation, by fully cooperating and assisting the Company in whatever efforts
it may make to resist or limit disclosure or to obtain a protective order or
other appropriate remedy to limit or prohibit further disclosure or use of such
Confidential Information.  If Executive complies
with the preceding sentence but nonetheless becomes legally compelled to
disclose Confidential Information, Executive shall disclose only that portion
of the Confidential Information that he is legally compelled to disclose.

 

 

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5.2.          Covenant not
to Compete.  During the Restriction Period (as defined in
Section 9), Executive shall not, directly or indirectly, whether as a sole
practitioner, owner, partner, shareholder, investor, employee, employer, venturer,
independent contractor, consultant or other participant, (i) own, manage,
invest in or acquire any economic stake or interest in any Person involved in a
Competitive Activity (as defined in Section 9), (ii) derive economic benefit
from or with respect to any Competitive Activity, or (iii) otherwise engage or
participate in any manner whatsoever in any Competitive Activity; provided,
however, this Section 5.2 shall not restrict Executive from owning less than 2%
of the publicly traded debt or equity securities issued by a corporation or
other entity or from having any other passive investment that creates no
conflict of loyalty or interest with any duty owed to the Company.  Executive shall be deemed to have derived
economic benefit in violation of this Section 5.2 if, among other things, any
of his compensation or income is in any way related to any Competitive Activity
conducted by any Person.  Further, during
the Restriction Period, Executive shall not, directly or indirectly, advance,
cooperate in or help or aid any Competitor (as defined in Section 9) in the
conduct of any Competitive Activity.

5.3.          Covenant not
to Interfere.  During the Restriction Period, Executive
shall not, directly or indirectly, recruit, solicit or otherwise induce or
influence any Personnel (as defined in Section 9) of the Company to
discontinue, reduce the extent of, discourage the development of or otherwise
harm such Personnel’s relationship or commitment to the Company.  Conduct prohibited under this Section 5.3
shall include, without limitation, employing, seeking to employ or causing,
aiding, inducing or influencing a Competitor to employ or seek to employ any
Personnel of the Company.

5.4.          Full
Restriction Period.  If Executive violates any restrictive
covenant contained herein and Company institutes action for equitable relief,
Company, as a result of the time involved in obtaining such relief, shall not
be deprived of the benefit of the full Restriction Period.  Accordingly, the Restriction Period shall be
deemed to have the duration specified in Section 9, computed from and
commencing on the date on which relief is granted by a final order from which
there is no appeal, but reduced, if applicable, by the length of time between
the date the Restriction Period commenced and the date of the first violation
of any restrictive covenant by Executive.

5.5.          Equitable
Accounting.  The Company shall have the right to demand
and receive equitable accounting with respect to any consideration received by
Executive in connection with activities in breach of the restrictive covenants
herein, and Company shall be entitled to payment from Executive of such
consideration on demand.

5.6.          Prior
Breaches.  Neither the expiration of the Restriction
Period nor the termination of the status of any customer or Personnel as such
(whether or not due to a breach hereof by Executive) shall preclude, limit or
otherwise affect the rights and remedies of Company against Executive based
upon any breach hereof during the Restriction Period or before such status of
customer or Personnel terminated.

5.7.          Noncircumvention
of Covenants.  Executive acknowledges and agrees that, for
purposes of this Agreement, an action shall be considered to have been taken by
Executive “indirectly” if taken by or through (a) any member of his family
(whether a close or 

 

 

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distant relation by blood, marriage or
adoption), (b) any Person owned or controlled, solely or with others, directly
or “indirectly” by Executive or a member of his family, (c) any Person of which
he is an owner, partner, employer, employee, trustee, independent contractor or
agent, (d) any employees, partners, owners or independent contractors of any
such Person or (e) any other one or more representatives or intermediaries, it
being the intention of the parties that Executive shall not directly or
indirectly circumvent any restrictive covenant contained herein or the intent
thereof.

5.8.          Notice of
Restrictions.  During the Restriction Period, Employee shall
notify each prospective employer, partner or co-venturer of the restrictions
contained in this Agreement.  Company is
hereby authorized to contact any of such Persons for the purpose of providing
notice of such restrictions.

5.9.          Fairness of
Restrictions.  Executive acknowledges and agrees that (a)
compliance with the restrictive covenants set forth herein would not prevent
him from earning a living that involves his training and skills without
relocating, but only engaging in unfair competition with, misappropriating a
corporate opportunity of, or otherwise unfairly harming Company and (b) the
restrictive covenants set forth herein are intended to provide a minimum level
of protection necessary to protect the legitimate interests of Company.  In addition, the parties acknowledge that
nothing herein is intended to or shall limit, replace or otherwise affect any
other rights or remedies at law or in equity for protection against unfair
competition with, misappropriation of corporate opportunities of, disclosure of
confidential and proprietary information of, or defamation of Company, or for
protection of any other rights or interest of Company.

5.10.        Reduction of Restrictions by Court Action.    Each
of the provisions hereof including, without limitation, the periods of time,
geographic areas and types and scopes of duties of, and restrictions on the
activities of, the parties hereto specified herein are, and are intended to be,
divisible, and if any portion thereof (including any sentence, clause or word)
shall be held contrary to law or invalid or unenforceable in any respect in any
jurisdiction, or as to one or more periods of time, areas or business
activities or any part thereof, the remaining provisions shall not be affected
but shall remain in full force and effect, and any such invalid or
unenforceable provision shall be deemed, without further action on the part of
any party hereto or other Person, modified and amended to the minimum extent
necessary to render the same valid and enforceable in such jurisdiction.

6.             Ownership and
Assignment of Inventions.

6.1.          Future
Inventions.

(a)           Executive agrees promptly to disclose to the Company any
and all ideas, concepts, discoveries, inventions, developments, trade secrets,
methods, data, information, improvements, chemical or biological materials and
know-how that are conceived, devised, invented, developed or reduced to
practice or tangible medium by Executive, under his direction or jointly with
others during any period that Executive is employed by the Company, whether or
not during normal working hours or on the premises of the Company, which
relate, directly or 

 

 

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indirectly, to the Field of Interest
(as defined in Section 9) and arise out of his employment by the Company
(hereinafter “Inventions”).

(b)           Executive hereby assigns to the Company all of his right,
title and interest to the Inventions and any and all related patent rights,
copyrights and applications and registrations therefor.  During and after his employment by the
Company, Executive shall cooperate with the Company, at the Company’s expense,
in obtaining proprietary protection for the Inventions and Executive shall
execute all documents which the Company shall reasonably request in order to
perfect the Company’s rights in the Inventions. 
Executive hereby appoints the Company his attorney to execute and
deliver any such documents on his behalf in the event Executive should fail or
refuse to do so within a reasonable period following the Company’s request.  It is understood that reasonable
out-of-pocket expenses of Executive’s assistance incurred at the request of the
Company under this Section will be reimbursed by the Company.

6.2.          Past
Inventions.  Executive represents and warrants that he has
already disclosed and assigned to the Company any Inventions conceived or
reduced to practice by him during the period between August 2, 1999, and the
Effective Date.

7.             Indemnification.

7.1.          Generally.

(a)           The Company shall indemnify and hold harmless Executive to
the fullest extent lawful from and against, and Executive shall have no
liability to the Company or its owners, parents, creditors (past, present or
future) or security holders for, any and all Losses, Expenses and Claims (each
as defined in Section 9) related to or arising out of an Indemnifiable Event
(as defined in Section 9) except that no indemnification shall be made in
respect of any Claims, Losses or Expenses arising out of an otherwise
Indemnifiable Event as to which Executive’s actions or conduct shall have
finally been adjudicated to constitute gross negligence, willful misconduct or
other conduct constituting grounds for termination for Cause.

(b)           The Company shall not settle any pending or threatened
Claim related to or arising out of an Indemnifiable Event (whether or not
Executive is a party to such Claim) unless such settlement includes a provision
unconditionally releasing Executive from and holding Executive harmless from
and against any and all Losses and Expenses in respect of all Claims by any
Person related to or arising out of such Indemnifiable Event.

(c)           The Company shall promptly advance to Executive all
Expenses as they are incurred by Executive in connection with investigating,
preparing or defending, or providing evidence in, any pending or threatened
Claim related to or arising out of an Indemnifiable Event in respect of which
indemnification may be sought hereunder (whether or not Executive is a party to
such claim) or in enforcing this Agreement. 
If Executive makes a claim hereunder for payment (or advancement) of
Expenses, such Expenses shall be paid (or advanced) promptly even if the
Company reserves the right to obtain a refund thereof to the extent that such
Expenses were incurred in connection with a Loss, Expense or Claim as to which
there is a final judicial determination that Executive is not entitled to
indemnification pursuant to this Agreement.

 

 

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7.2.          Indemnification
for Additional Expenses.  The Company shall indemnify Executive against
and reimburse for and advance to Executive any and all Expenses that are
incurred by Executive in connection with any Claim asserted against or action
brought by Executive for (a) indemnification of Expenses by the Company under
this Agreement or any other agreement or provision of the Company’s Certificate
of Incorporation or By-laws now or hereafter in effect relating to Claims for
Indemnifiable Events or (b) recovery under any directors’ and officers’
liability insurance policies.

7.3.          Partial
Indemnity.  If Executive is entitled to indemnification
for a portion (but not all) of the Expenses and Losses relating to a Claim, the
Company shall indemnify Executive for such portion.

7.4.          No
Presumption.  The termination of any Claim by judgment,
order, settlement, conviction or upon a plea of nolo contendere, or its
equivalent, shall not, of itself, create a presumption that Executive is not
entitled to indemnification hereunder.

7.5.          Non-Exclusivity.  The rights of
Executive hereunder shall be in addition to any and all other rights Executive
may have under the Company’s By-laws or Certificate of Incorporation, any vote
by the Company’s shareholders or disinterested directors, or applicable
law.  Subject to the provisions of
Section 7.1(a) hereof, to the extent that a change in applicable law permits or
provides greater indemnification than is afforded under the Company’s By-laws
or Certificate of Incorporation and this Agreement, Executive shall enjoy by
this Agreement the greater benefits so afforded by that change.

7.6.          Liability
Insurance.  If and to the extent that the Company from
time to time maintains an insurance policy or policies providing directors’ and
officers’ liability insurance (a “D&O Policy”), Executive shall be
covered by such policy or policies, in accordance with its or their terms, to
the maximum extent of the coverage available under such policy or policies for
any officer or director of the Company. 
If the Company fails or is unable to obtain or maintain a D&O Policy
providing at least $1 Million of aggregate coverage, Executive shall have the
right to terminate his employment and the provisions of Section 8.2(b) shall
apply to such termination; provided, however, that if the Company fails
to maintain such coverage notwithstanding that it is available at reasonable
rates, then Executive shall have the right to terminate his employment and the
provisions of Section 8.2(d) shall apply to such termination.

8.             Termination.

8.1.          Basis
for Termination.  Notwithstanding any other provision of this
Agreement, the employment relationship created under this Agreement between
Company and Executive shall terminate prior to the employment term referenced
in Section 2 of the Agreement only upon the occurrence of any one of the
following events (provided, however, that the giving of notice provided for
below shall not create a presumption that the event has in fact occurred):

(a)           The death of Executive;

(b)           Upon determination that Executive has become Permanently
Disabled (as defined in Section 9);

 

 

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(c)           Immediately upon delivery to Executive by the Company of
written notice of termination for Cause (as defined in Section 9);

(d)           Thirty (30) days after delivery to the Company by
Executive of written notice of Executive’s voluntary and unilateral termination
of this Agreement;

(e)           Immediately upon delivery to Executive by the Company of
written notice of termination without Cause;

(f)            Immediately upon delivery to Company by Executive of
written notice of termination for breach of this Agreement by Company, which
notice shall specify such alleged breach and may be given (i) 20 days after
Company has failed to make any payment to Executive hereunder when due,
provided the payment has not been made within such 20 day period, (ii) after
Company has failed to perform or has otherwise breached any non-monetary
provision of this Agreement, which failure or breach is not capable of being
cured within 30 days or, (iii) after Company has failed to perform or otherwise
breached any non-monetary provision of this Agreement, which failure or breach
is capable of being cured within 30 days and which failure or breach has not
been cured within 30 days after notice of such failure or breach is given by
Executive to Company.  Company’s breach
of this Agreement shall include (but shall not be limited to) the
following:  (I) Company’s assignment to
Executive of any duties inconsistent with his status as President and Chief
Executive Officer of Company or attempted adverse alteration in the nature or
status of Executive’s responsibilities from those in effect upon the Effective
Date (the parties acknowledge that in a “merger of equals” Executive might be
asked to serve as one of two chief executive officers of the surviving entity,
which would not constitute a breach of this Agreement); (II) Company’s
attempted reduction in Executive’s Salary; (III) the relocation of Company’s
principal executive offices to a location more than 50 miles from the location
of such offices upon the Effective Date; (IV) Company’s requiring Executive to
be based anywhere other than the Company’s principal executive offices; (V) the
failure by Company to continue to provide Executive with benefits substantially
identical to those provided to Executive under this Agreement; or (VI) in the
event of a Change of Control, the failure by Executive to obtain a satisfactory
agreement from any successor to assume and agree to perform this Agreement; or

(g)           Immediately upon delivery to the Company by Executive of
written notice of termination within 90 days after the occurrence of a Change
of Control.

Notwithstanding any termination
of employment, Executive, in consideration of his employment hereunder to the
date of such termination and the payment by Company of the compensation payable
hereunder, agrees to be bound by the provisions of Section 5, 6.1(b) and 8.3
hereof for the periods (except that if termination is pursuant to Sections 8.1(e)
or (f), the periods under Sections 5.2 and 5.3 shall no longer be in effect),
geographic area and scope specified therein, and Employer, in consideration of
its receipt of Executive’s services hereunder to the date of such termination,
agrees to remain bound by the provisions of Section 8.2.

8.2.          Effect of
Termination.

(a)           If Executive’s employment is terminated pursuant to
Section 8.1(a) or (b) (i.e., death or Permanent Disability), then the
Company shall pay Executive (i) his Salary 

 

 

11

pro-rated through the effective date of
such termination (which shall be the date of death or the date Executive
becomes Permanently Disabled), which pro-rated Salary shall be paid to
Executive within 15 days after such effective date, and (ii) any pro-ratable
Bonus payable for the year during which such termination occurred pro-rated
through the effective date of such termination, which pro rated Bonus shall be
paid on the dates set forth in Section 4.

(b)           If Executive’s employment is terminated pursuant to
Section 8.1 (c) or (d) (i.e., for Cause or resignation), then the
Company shall pay Executive his Salary pro-rated through the effective date of
such termination, which pro-rated Salary shall be paid to Executive within 15
days after such effective date. 
Notwithstanding the foregoing, in the event that Executive is determined
by the Company to be a “specified employee”, as defined in Section 2, then no
amount otherwise payable will be paid until such time as the payment will not
cause a violation of Section 409A of the Internal Revenue Code.

(c)           If Executive’s employment is terminated pursuant to
Section 8.1(e) or (f) (i.e., Without Cause or Employer’s Breach), then (i)
Company shall continue to pay to Executive his Salary in effect as of the date
immediately prior to the effective date of such termination, and shall continue
to provide all payments and benefits contemplated by Section 4, for the
remainder of the term referenced in Section 2, (ii) all unvested shares under
the 2007 Stock Option or 2008 Stock Option, as the case may be, shall
immediately become fully vested and exercisable if they previously have not
become so vested and exercisable, (iii) Executive shall be entitled to receive
all guaranteed Bonuses payable for the remaining years of the term referenced
in Section 2 and the severance payments referenced in Section 2 above, and (iv)
Executive shall have all other rights and remedies available to him at law or
in equity arising out of Company’s breach.

(d)           If Executive’s employment is terminated pursuant to Section
8.1(g), then (i) Company shall pay to Executive all payments required under
this Section 8.2(a), (ii) Company shall also pay to Executive, within 30 days
after such termination, a severance payment equal to 150% of Executive’s then
Salary and (iii) all unvested shares under the 2007 Stock Option or 2008 Stock
Option, as the case may be, shall immediately become fully vested and
exercisable if they previously have not become so vested and exercisable.

8.3.          Surrender of
Records and Property.  Upon termination of his employment with
Company, Executive shall promptly deliver to Company all records, manuals,
books, blank forms, documents, letters, memoranda, notes, notebooks, reports,
data, tables, calculations and copies thereof, which are the property of
Company or which relate in any way to the business, products, practices or
techniques of Company, and all other property, trade secrets and Confidential
Information of Company, which in any of these cases are in his possession or
under his control.

8.4.          With respect to the occurrence of any
of the events resulting in Executive’s termination as enumerated in Section
8.1, Company shall reimburse Executive or his estate for all unreimbursed
expenses he incurred prior to the effective date of his termination within 15
days after the submittal to the Company of appropriate documentation as
required.

 

 

12

8.5.          No Mitigation.  Executive shall not
be required to mitigate damages or the amount of any payment provided for under
this Agreement by seeking other employment or otherwise, nor shall the amount
of any payment provided for under this Agreement be reduced by any compensation
earned by Executive as a result of employment by another employer, or
otherwise.

9.             Definitions.  For the purposes of this Agreement, the
following terms shall have the following meanings:

                                “Act”
means the Securities Act of 1933, as amended.

 

                                “Cause”
means Executive’s willful misconduct or gross negligence in the performance of
his duties under this Agreement, his willful violation of the provisions of
this Agreement which results in material injury to the Company, or his
commission of any willful act which is materially inimical to the Company’s
business or interests.  No act or failure
to act on Executive’s part shall be considered “willful” unless done, or
omitted to be done, by him not in good faith and without reasonable belief that
his action or omission was in the best interests of the Company.  Executive shall not be deemed to have been
terminated for Cause unless and until there shall have been delivered to him a
notice of termination together with a copy of a resolution, duly adopted by the
Board of Directors at a meeting called and held for that purpose (after
reasonable notice to Executive of the meeting and the particulars of the
grounds for termination and an opportunity for him, together with his counsel,
to be heard before the Board of Directors), finding that, in the good faith
opinion of the Board of Directors, Executive was guilty of conduct constituting
Cause for termination and specifying the particulars thereof in detail.  Executive’s attendance or non-attendance at
any such meeting of the Board of Directors shall in no way prejudice Executive’s
rights hereunder or to submit such decision to judicial review.

                                “Claims”
means any threatened, asserted, pending or completed action (including
shareholder actions), suit or proceeding, whether civil, criminal,
administrative or investigative, or any inquiry or investigation (including
discovery), whether conducted by the Company or any other Person, that might
lead or is threatened to lead to the institution of any such action, suit or
proceeding.

                                “Change of Control” means the
closing of a sale of all or substantially all of assets or issued and
outstanding capital stock of the Company in one or more related transactions,
or a merger or consolidation involving the Company in which stockholders of the
Company immediately before such merger or consolidation do not own immediately
after such merger or consolidation capital stock or other equity interests of
the surviving corporation or entity representing more than fifty percent in
voting power of capital stock or other equity interest of such surviving
corporation or entity outstanding immediately after such merger or
consolidation.  The foregoing to the
contrary notwithstanding, a Change of Control shall not be deemed to have
occurred with respect to Sections 4.2 and 4.3 of this Agreement if, based on
the value of the cash, securities or property to be received, the aggregate
valuation of the Company immediately prior to the transaction in question is
less than $175,000,000.

 

 

13

                                “Common Stock” means the
Company’s Common Stock, $0.001 par value per share.

 

                                “Competitive Activity” means
any activity conducted in the Restricted Area which competes with any
substantial aspect or part of Company’s business, whether as a proprietor,
partner, shareholder, owner, member, employer, employee, independent contractor,
venturer or otherwise.

 

                                “Competitor” means (i) Ethicon
Endo-Surgery (currently a unit of Johnson & Johnson), (ii) United States
Surgical Corporation (currently a unit of Tyco International’s Tyco Healthcare
division, which is soon to be spun out as an independent company), and (iii)
any other Person (other than Company) that engages in any Competitive Activity
during the Restriction Period.

 

                                “Confidential Information”
means all confidential, secret or proprietary information of or relating to the
Company, its business or practice, which is not generally known or available to
the public (whether or not in written or tangible form) including, without
limitation, designs, technology, customer lists, supplier lists, processes,
know-how, trade secrets, pricing policies and other confidential business
information.

 

                                “Confidential Materials” means
any and all documents, records, reports, lists, notes, plans, materials,
programs, software, disks, diskettes, recordings, manuals, correspondence,
memoranda, magnetic media or any other tangible media (including, without
limitation, copies or reproductions of any of the foregoing) in which any
Confidential Information may be contained.

 

                                “Expenses” means all costs,
expenses (including reasonable attorneys’, advisors’ and expert witnesses’ fees
and expenses) and obligations paid or incurred in connection with
investigating, defending, being a witness in or participating in (including on
appeal), or preparing to defend, be a witness in or participate in any Claim.

 

                                “Field of Interest” means
powered medical devices for cutting and stapling tissues in the thoracic or
abdominal cavitities.

 

                                “GAAP” means U.S. generally
accepted accounting principles, applied consistently with past Company
practices.

 

                                “Gross Margin” means, with
respect to a given reporting period, the difference between the Company’s
revenues and its cost of goods sold, each as determined in accordance with
GAAP.

 

                                “Indemnifiable Event” means
any omission, event or occurrence related to or in any way connected with or
arising out of the fact that Executive is or was a director, officer, employee,
agent or fiduciary of the Company, or is or was serving at the request of the
Company as a director, officer, employee, trustee, agent or fiduciary of
another corporation, partnership, 

 

 

14

joint venture, employee
benefit plan, trust or other enterprise, or by reason of anything done or not
done by Executive in any such capacity.

 

                                “M60” means a computer-actuated,
articulating, handheld surgical stapler that is currently being developed by
the Company, which is either untethered or tethered only to a standard power
source.

 

                                “Permanently Disabled” means
Executive is unable to continue his normal duties of employment, by reason of a
medically determined physical or mental impairment, for a continuous period of
nineteen (19) consecutive weeks or for any twenty-six (26) weeks within a
fifty-two (52) week period (or such longer period, not to exceed thirty-eight
(38) weeks, if Executive’s, disability insurance policy requires a benefit
waiting period longer than such 26-week period).

 

                                “Losses” means any judgments,
liabilities, debts, excise taxes, fines, penalties and amounts paid or required
to be paid in settlement.

 

                                “Person” means an individual,
partnership, joint venture, corporation, limited liability company,
association, trust, estate, unincorporated organization, a government or any
branch, subdivision, department or agency thereof, or any entity.

 

                                “Personnel”
means any and all employees, contractors, agents, vendors, consultants or other
Persons rendering services or providing goods to the Company for compensation
in any form, whether employed by or independent of the Company.

                                “Qualified Public Offering”
means an underwritten initial public offering
of the Company’s Common Stock pursuant to a registration statement under the
Act for which (i) the net proceeds to the Company (after underwriter
commissions and discounts and other fees directly related to the offering) are
not less than $45,000,000, and (ii) the pre-offering valuation of the Company,
based on the initial price per share of the Common Stock sold in the offering,
is not less than $175,000,000.

 

                                “Restricted Area” means  world-wide.

 

                                “Restriction
Period” means the period of time, commencing on the date hereof and
expiring 12 months after the termination of
Executive’s employment with the Company pursuant to this Agreement, voluntarily
or involuntarily, for any reason whatsoever, subject to extension pursuant to
Section 5.4.

                                “Successful
M60 Launch” shall be deemed to have occurred on first date that all of the
following conditions shall have been satisfied: (A) the Company shall have
obtained 510(k) clearance to sell the M60 in the U.S.; (B) the Company shall be
offering the M60 for sale to customers on a national basis in the U.S.; (C) the
Company shall have recognized revenues from sales of the M60 during two
consecutive fiscal quarters, with such revenues being higher in the second such
quarter than the first such quarter, determined in accordance with GAAP; and
(D) the Company shall have recognized a Gross Margin from sales of the M60
during a fiscal 

 

 

15

quarter that represents [confidential treatment
requested pursuant to Rule 406]% of the
revenues recognized from sales of the M60 during such quarter, as determined in
accordance with GAAP.

 

10.           Miscellaneous
Provisions.

10.1.        Governing Law and Jurisdiction. 
This Agreement shall be deemed to be a contract made under the laws of
the Commonwealth of Pennsylvania and for all purposes shall be construed in
accordance with the laws of said state applicable to contracts made and to be
performed within said state.  The parties
consent to the exclusive jurisdiction of the Court of Common Pleas, Bucks
County, Pennsylvania in all actions arising out of this Agreement.

10.2.        Entire Agreement.  This Agreement
(together with the exhibits attached hereto, which hereby is incorporated by
reference) contains the entire agreement of the parties hereto relating to the
employment of Executive by Company and the other matters discussed herein and
supersedes all prior agreements and understandings with respect to such subject
matter, and the parties hereto have made no agreements, representations or
warranties relating to the subject matter of this Agreement which are not set
forth herein.

10.3.        Withholding Taxes.  Company may
withhold from any compensation or other benefits payable under this Agreement
all federal, state, city or other taxes as shall be required pursuant to any
law or governmental regulation or ruling.

10.4.        Supplements and Amendments.  This Agreement may
be supplemented or amended only upon the written consent of each of the parties
hereto.

10.5.        Assignment.  Except as expressly
provided below, this Agreement shall not be assignable, in whole or in part, by
either party without the prior written consent of the other party.  The Company may, without the prior written
consent of Executive, assign its rights and obligations under this Agreement to
any other corporation, firm or other business entity with or into which the
Company may merge or consolidate, or to which the Company may sell or transfer
all or substantially all of its assets, or of which 50% or more of the equity
investment and of the voting control is owned, directly or indirectly, by, or
is under common ownership with, the Company; provided, however,
that such assignment may be made without Executive’s prior written consent only
if (a) such assignment has a valid business purpose and is not for the purpose
of avoiding the Company’s obligations hereunder or Executive’s realization of
the benefits of this Agreement and (b) the assignee expressly assumes in
writing all obligations and liabilities to Executive hereunder.  The Company will cause any purchaser of all
or substantially all of the assets of the Company, by agreement in form and
substance reasonably satisfactory to Executive, to expressly assume and agree
to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such purchase had taken
place.  This Agreement shall be binding
upon and inure to the benefit of the Company and its successors and permitted
assigns.  This Agreement and all rights
of Executive hereunder shall inure to the benefit of and be enforceable by
Executive’s heirs, personal or legal representatives and beneficiaries.  If this Agreement is terminated pursuant to
Section 8.1(a), all amounts payable pursuant to Section 8.2(a) shall be paid to
Executive’s designated beneficiaries or, if no such beneficiaries have been
designated, to Executive’s estate.

 

 

16

10.6.        No Waiver.  No term or
condition of this Agreement shall be deemed to have been waived, nor shall
there be any estoppel to enforce any provisions of this Agreement, except by a
statement in writing signed by the party against whom enforcement of the waiver
or estoppel is sought.  Any written
waiver shall not be deemed a continuing waiver unless specifically stated,
shall operate only as to the specific term or condition waived and shall not
constitute a waiver of such term or condition for the future or as to any act
other than that specifically waived.

10.7.        Severability.  The provision of
this Agreement are severable, and if any one or more provisions may be
judically unenforceable and/or invalid by a Court of competent jurisdictions,
in whole or in part, the remaining provisions shall nevertheless be binding,
enforceable and in full force and effect.

10.8.        Titles and Headings.  The titles and
headings of  the various Sections of this
Agreement are intended solely for convenience of reference and not intended for
any purpose whatsoever to explain, modify or place any construction upon any of
the provisions hereof.

10.9.        Remedies.  Executive agrees
that it would be difficult to compensate the Company fully for damages for any
violation of the provisions of paragraphs 5 and 8.3 of the Agreement.  Accordingly, Executive specifically agrees
that the Company shall be entitled to temporary and permanent injunctive relief
to enforce such provisions of this Agreement. 
(For purposes of clarification, Executive’s consent to injunctive relief
is subject to Company first proving a material breach of this Agreement).  This provision with respect to injunctive
relief shall not diminish, however, the right of the Company to claim and
recover damages in addition to injunctive relief.

10.10.      Notices.  For the purpose of
this Agreement, notices and all other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly given when
hand delivered (which shall include personal delivery and delivery by courier,
messenger or overnight delivery service) or mailed by certified mail, return
receipt requested, postage prepaid, addressed as follows:

If to Executive:      At
his home address in accordance with the Company’s

records.

 

If to Company:      2021 Cabot Boulevard West

Langhorne, PA  19047

 

or to such other address of
which either party gives notice to the other party in accordance herewith,
except that notices of change of address shall be effective only upon receipt.

 

10.11.      Counterparts.  This Agreement may
be executed in any number of counterparts and each of such counterparts shall
for all purposes be deemed to be an original, and all such counterparts shall
together constitute but one and the same instrument.

                                                                                                *
* * * *

 

 

17

IN WITNESS WHEREOF, the parties hereto have executed this
Second Amended and Restated Employment Agreement on the day and year first
written above.

 

	
   

  	
  POWER
  MEDICAL INTERVENTIONS, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ LON
  OTREMBA

  
	
   

  	
  Name:

  	
  Lon
  Otremba

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  MICHAEL P. WHITMAN

  
	
   

  	
  Michael
  P. Whitman

  
				

 

 

18Exhibit
10.5

 

EMPLOYMENT AGREEMENT

(John
P. Gandolfo)

 

                This
Employment Agreement dated as of January 5, 2007 (this “Agreement”) is
made by and between Power Medical Interventions, Inc., a Delaware corporation
(the “Company”), and John P. Gandolfo (“Executive”).

 

BACKGROUND

 

                The
Company desires to employ Executive, and employee desires to be employed by the
Company in accordance with the terms and conditions set forth in this
Agreement.

 

                NOW,
THEREFORE, in consideration of the premises, the respective covenants and
commitments of the parties hereto set forth in this Agreement and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.             Employment. 
The Company offers and Executive accepts employment and agrees to
perform services for the Company, for the period and upon the other terms and
subject to the conditions set forth in this Agreement.

2.             Employment Term. 
Executive’s employment pursuant to this Agreement shall be from January
5, 2007 (the “Effective Date”), through December 31, 2009, unless earlier terminated pursuant to the
provisions of Section 9 below.  If
Executive’s employment continues beyond December 31, 2009, such employment
shall be at will, unless and to the extent this Agreement is extended or
renewed by a written agreement between the parties.

3.             Title and Duties; Representations and Warranties.

3.1.          Service
With Company.  Company hereby employs Executive to perform
those executive duties and services as the Company shall from time to time set
forth, and Executive accepts employment with the Company, upon the terms and
conditions hereinafter set forth. 
Executive shall serve as the Chief Financial Officer of the Company and
shall report to the Chief Executive Officer of the Company.  Executive may also serve as an officer or
director of one or more subsidiaries of the Company; provided, however,
that Executive shall not be entitled to any additional compensation for serving
in such additional capacities.

3.2.          Performance of Duties.  Executive agrees to serve the Company
faithfully and to the best of his ability and to devote his full time,
attention and best efforts to the business and affairs of the Company after the
Effective Date and during the term of this Agreement.  Except to the extent the restrictions
contained in Section 5 may apply, nothing in this Agreement shall prohibit
Executive from (i) making and managing passive investments, (ii) serving on the
Board of Directors of Bioject Medical Technologies, Inc., and (iii) engaging in
religious, academic, charitable or other community or non-profit activities, in
a manner, and to an extent, that will not interfere with his duties to the
Company.

 

3.3.          Compliance
with Company Policies.  Executive agrees that in the rendering of all
services to the Company and in all aspects of employment hereunder, he shall
comply in all material respects with all directives, policies, standards and
regulations from time to time established by the Company, including without
limitation Section 104 of Company’s Employment Policies and Procedures Manual,
to the extent they are not in conflict with this Agreement.

3.4.          Other Obligations.

(a)           Between Executive and Third
Parties.  Executive hereby
represents, warrants and agrees: (i) that Executive has the full right to enter
into this Agreement and perform the services required of him hereunder, without
any restriction whatsoever; (ii) that in the course of performing services
hereunder, Executive will not violate the terms or conditions of any agreement
between him and any third party or infringe or wrongfully appropriate any
patents, copyrights, trade secrets or other intellectual property rights of any
Person anywhere in the world; (iii) that Executive has not and will not disclose
or use during his employment  by the Company any confidential information that he acquired
as a result of any previous employment or consulting arrangement or under a
previous obligation of confidentiality; and (iv) that Executive has disclosed
to the Company in writing any and all continuing obligations to previous
employers or others that require him not to disclose any information to the
Company.

(b)           Between
Company and Third Parties.  Executive acknowledges that the Company from
time to time may have agreements with other Persons, including the government
of the United States or other countries and agencies thereof, which impose
obligations or restrictions on Company regarding inventions made during the
course of work thereunder or regarding the confidential nature of such
work.  Executive agrees to be bound by
all such obligations and restrictions and to take all action necessary to
discharge the obligations of the Company thereunder.

3.5.          Location.  Executive initially shall be based at the
Company’s principal executive offices in Langhorne, Pennsylvania and shall
maintain a residence within 75
miles of Longhorne.

4.             Compensation and Benefits.

4.1.          Salary.  Company
shall pay Executive a base salary (“Salary”), payable in equal
installments in accordance with Company’s standard schedule for salary payments
to its executive employees, at an initial annual rate equal to $250,000.  Executive’s
Salary shall be reviewed annually by the Chief Executive Officer and may be
increased at the beginning of each calendar year.

4.2.          Bonus.  Executive will be eligible to participate in
Company’s Incentive Compensation Plan for Senior Managers (the “Bonus Plan”).  Any bonus awarded under the Bonus Plan for a
given year (“Plan Bonus”) will be subject to the terms and conditions of
the Bonus Plan and based on (i) Company’s performance during such year measured
against one or more Company goals set by the Chief Executive Officer at the
beginning of such year, and (ii) Executive’s performance during such year
measured against one or more job-specific goals 

 

2

determined by
the Chief Executive Officer and Executive at the beginning of such year.  Executive’s Plan Bonus for a given year will
be targeted at 35% of Salary for such year,
subject to approval by the Compensation Committee of the Board of Directors
(the “Compensation Committee”).

4.3.          Stock Options.  Subject to approval by the Compensation
Committee, the Company shall grant to Executive a nonqualified stock option
(the “Option”) to purchase 1,830,697 shares of the Company’s Common
Stock, $0.001 par value per share (“Common Stock”).  The Option shall have an exercise price per
share equal to the fair market value on the date of grant (as determined by the
Compensation Committee after considering advice from an independent appraisal
firm) and shall be substantially in the form of Exhibit 4.3.   The Option shall vest as to 25% of the
shares issuable thereunder on the first anniversary of the Effective Date, and
the remainder shall vest in equal monthly portions over the following 36
months, for a total four-year vesting period, all as set forth in greater
detail in the Option.  Notwithstanding
the vesting schedule set forth above, upon a Change of Control (as defined below),
vesting of the Option shall accelerate such that if a Change of Control occurs
on or before the first anniversary of the Effective Date, then 50% of the
shares issuable pursuant to the Option shall be immediately vested and if a
Change of Control occurs after the first anniversary of the Effective Date,
then all unvested shares issuable pursuant to the Option shall immediately
become vested.

                For purposes of the Option, a “Change
of Control” shall mean the sale of all or substantially all of assets or
issued and outstanding capital stock of the Company in one or more related
transactions, or a merger or consolidation involving the Company in which
stockholders of the Company immediately before such merger or consolidation do
not own immediately after such merger or consolidation capital stock or other
equity interests of the surviving corporation or entity representing more than
fifty percent in voting power of capital stock or other equity interests of
such surviving corporation or entity outstanding immediately after such merger
or consolidation.

 

4.4.          Other Benefits.    Executive shall have the right to
participate in all benefit plans which may be in effect for the Company’s
executive employees from time to time, including, without limitation, group health
and dental insurance, group life insurance, disability insurance, and 401(K)
plans, in accordance with the terms and conditions thereof.

4.5.          Expenses.  During the term of this Agreement, the
Company shall pay or reimburse Executive for all reasonable and necessary
out-of-pocket expenses incurred by Executive in the performance of his duties
under this Agreement, subject to the presentment by Executive of appropriate
reports and receipts in accordance with the Company’s normal policies for
expense verification.

4.6.          Vacation.  Executive shall be entitled to four weeks
vacation each calendar year.  Any
vacation taken by Executive shall be taken at such time as is reasonably
convenient in relationship to the needs of the business of the Company.  Vacation time shall not accrue beyond the
year in question; provided, however, that any vacation time not taken
during any year due to constraints imposed by the Company’s business
requirements shall accrue beyond the year in question.

 

3

5.             Restrictive Covenants.

5.1.          Certain
Definitions.  The following terms
shall have the following meanings:

                                “Competitive
Activity” means the development, manufacture, distribution, sale or
marketing of products or services which compete with the Company’s products or
services, including without limitation computer-mediated wound closure devices,
imaging devices and vascular devices, whether as a proprietor, partner,
shareholder, owner, employer, employee, independent contractor, venturer or
otherwise.

 

                                “Competitor”
means (i) Ethicon Endo-Surgery (currently a unit of Johnson & Johnson),
(ii) United Stated Surgical Corporation (currently a unit of Tyco International’s
Tyco Healthcare division, which is soon to be spun out as an independent company),
(iii) any other Person (other than Company) that engages in any Competitive
Activity during the Restriction Period, and (iv) any affiliate or successor of
any of the foregoing entities.

 

                                “Confidential
Information” means all confidential, secret or proprietary information of
or relating to the Company, its business or practice, which is not generally
known or available to the public (whether or not in written or tangible form)
including, without limitation, designs, technology, customer lists, supplier
lists, processes, know-how, trade secrets, pricing policies and other
confidential business information.

 

                                “Confidential
Materials” means any and all documents, records, reports, lists, notes,
plans, materials, programs, software, disks, diskettes, recordings, manuals,
correspondence, memoranda, magnetic media or any other tangible media
(including, without limitation, copies or reproductions of any of the
foregoing) in which any Confidential Information may be contained.

 

                                “Customers”
means any and all past, present and future customers of the Company.

 

                                “Company”
means the Company and its subsidiaries, whether now or in the future.

 

                                “Non-Competition
Period” means the period of time, commencing on the date hereof and
expiring 12 months after the termination of Executive’s employment with the
Company pursuant to, this Agreement, voluntarily or involuntarily, for any
reason whatsoever, subject to extension pursuant to Section 5.6 below.

 

                                “Person”
means an individual, proprietorship, partnership, joint venture, corporation,
limited liability company, association, trust, estate, unincorporated
organization, a government or any branch, subdivision, department or agency
thereof, or any entity.

 

                                “Personnel”
means any and all employees, contractors, agents, vendors, consultants or other
Persons rendering services or providing goods to the Company for compensation
in any form, whether employed by or independent of the Company.

 

4

                                “Restricted
Area” means  world-wide.

 

                                “Restriction
Period” means the period of time, commencing on the date hereof and
expiring 12 months after the termination of Executive’s employment with the
Company pursuant to, this Agreement, voluntarily or involuntarily, for any reason
whatsoever, subject to extension pursuant to Section 5.4 below.

 

5.2.          Confidentiality.

(a)           Confidential Information.  Subject to Section 5.2(c):

(i)            Duty to Maintain Confidentiality.  Executive shall maintain in strict confidence
and duly safeguard to the best of his ability any and all Confidential
Information.

(ii)           Covenant Not to Disclose, Use or Exploit.  Executive shall not, directly or indirectly,
disclose, divulge or otherwise communicate to anyone or use or otherwise
exploit for the benefit of anyone, other than the Company, any Confidential
Information.

(iii)          Confidential Materials.  All Confidential Information and Confidential
Materials are and shall remain the exclusive property of the Company and no
such materials or information may be copied or otherwise reproduced, removed
from the premises of the Company or entrusted to any Person (other than Company
itself or authorized Personnel) without prior written permission from the
Company.

(b)           Survival of Covenants.  Notwithstanding anything herein to the
contrary, the covenants set forth in this Section 5.2 shall survive the
termination of this Agreement and any other agreement among the parties hereto
(regardless of the reason for such termination), unless terminated by a written
instrument that expressly terminates by specific reference the covenants set
forth in this Section 5.2.

(c)           Permitted Activities.  If Executive receives a request or demand for
Confidential Information (whether pursuant to a discovery request, subpoena or
otherwise), Executive shall immediately give the Company written notice thereof
and shall at the Company’s expense (provided the Company approves any and all
such expenses) exert his best efforts to resist disclosure, including, without
limitation, by fully cooperating and assisting the Company in whatever efforts
it may make to resist or limit disclosure or to obtain a protective order or
other appropriate remedy to limit or prohibit further disclosure or use of such
Confidential Information.  If Executive
complies with the preceding sentence but nonetheless becomes legally compelled
to disclose Confidential Information, Executive shall disclose only that
portion of the Confidential Information that he is legally compelled to
disclose.

5.3.          Covenant not to Compete.  During the Non-Competition Period, Executive
shall not, directly, indirectly, whether as a sole practitioner, owner,
partner, shareholder, investor, employee, Company, venturer, independent
contractor, consultant or other participant, (i) own, 

 

5

manage,
invest in or acquire any economic stake or interest in any Person involved in a
Competitive Activity, (ii) derive economic benefit from or with respect to any
Competitive Activity, or (iii) otherwise engage or participate in any manner
whatsoever in any Competitive Activity; provided, however, this Section 5.3
shall not restrict Executive from owning less than 1% of the publicly traded
debt or equity securities issued by a corporation or other entity or from having
any other passive investment that creates no conflict of loyalty or interest
with any duty owed to the Company. 
Executive shall be deemed to have derived economic benefit in violation
of this Section 5.3 if, among other things, any of his compensation or income
is in any way related to any Competitive Activity conducted by any Person.  Further, during the Non-Competition Period
Executive shall not, directly or indirectly, advance, cooperate in or help or
aid any Competitor in the conduct of any Competitive Activity, or accept any
employment with or otherwise be involved, directly or indirectly, in (or with
any Person involved in) any Competitive Activity which by its nature could
reasonably be expected to involve the use or disclosure of any Confidential
Information.

5.4.          Covenants not to Interfere.

(a)           Customers.  During the Restriction Period, Executive
shall not, directly or indirectly, induce or influence, or attempt to induce or
influence, any Customer to terminate a relationship which has been formed or is
being formed, or otherwise divert from the Company, any Customer, or solicit,
induce or influence any Customer to discontinue, reduce the extent of,
discourage the development of or otherwise harm its relationship with the
Company, including, without limitation, to commence or increase its
relationship with any Competitor.

(b)           Personnel.  During the Restriction Period, Executive
shall not, directly or indirectly, recruit, solicit or otherwise induce or
influence any Personnel of the Company to discontinue, reduce the extent of,
discourage the development of or otherwise harm its relationship or commitment
to the Company.  Conduct prohibited under
this Section 5.4(b) shall include, without limitation, employing, seeking to
employ or causing, aiding, inducing or influencing a Competitor to employ or
seek to employ any Personnel of the Company.

5.5.          Equitable Relief.  Each of the parties acknowledges that the
provisions and restrictions of this Section 5 are reasonable and necessary for
the protection of the legitimate interests of Company.  Each of the parties further acknowledges that
the provisions and restrictions of this Section 5 are unique and that any
breach or threatened breach of any such provisions or restrictions will provide
Company with no adequate remedy at law, and the result will be irreparable harm
to Company.  Therefore, the parties
hereto agree that upon a breach or threatened breach of the provisions or
restrictions of this Section 5, Company shall be entitled, in addition to any
other rights and remedies which may be available to it, to institute and
maintain proceedings at law or in equity, to recover damages, to obtain an
equitable accounting of all earnings, profits or other benefits resulting from
such breach or threatened breach and to obtain specific performance or a
temporary and permanent injunction.

5.6.          Full Restriction Period.  If Executive violates any restrictive
covenant contained herein and Company institutes action for equitable relief,
Company, as a result of the time involved in obtaining such relief, shall not
be deprived of the benefit of the full Non-Competition Period or Restriction
Period, as the case may be.  Accordingly,
the Non-

 

6

Competition
Period and the Restriction Period shall be deemed to have the respective
durations specified in Section 5.1, computed from and commencing on the date on
which relief is granted by a final order from which there is no appeal, but
reduced, if applicable, by the length of time between the date such period
commenced and the date of the first violation of any restrictive covenant by
Executive.

5.7.          Equitable Accounting.  Company shall have the right to demand and
receive equitable accounting with respect to any consideration received by
Executive in connection with activities in breach of the restrictive covenants
herein, and Company shall be entitled to payment from Executive of such
consideration on demand.

5.8.          Prior Breaches.  Neither the expiration of the Restriction
Period nor the termination of the status of any Customer or Personnel as such
(whether or not due to a breach hereof by Executive) shall preclude, limit or
otherwise affect the rights and remedies of Company against Executive based
upon any breach hereof during the Restriction Period or before such status of
Customer or Personnel terminated.

5.9.          Noncircumvention of Covenants.  Executive acknowledges and agrees that, for
purposes of this Agreement, an action shall be considered to have been taken by
Executive “indirectly” if taken by or through (a) any member of his family
(whether a close or distant relation by blood, marriage or adoption), (b) any
Person owned or controlled, solely or with others, directly or “indirectly” by
Executive or a member of his family, (c) any Person of which he is an owner,
partner, Company, employee, trustee, independent contractor or agent, (d) any
employees, partners owners or independent contractors of any such Person or (e)
any other one or more representatives or intermediaries, it being the intention
of the parties that Executive shall not directly or indirectly circumvent any
restrictive covenant contained herein or the intent thereof.

5.10.        Notice of Restrictions.  During the Restriction Period, Employee shall
notify each prospective Company, partner or co-venturer of the restrictions
contained in this Agreement.  Company is
hereby authorized to contact any of such Persons for the purpose of providing
notice of such restrictions.

5.11.        Reduction of Restrictions by Court
Action.  Each of the provisions
hereof, including, without limitation, the periods of time, geographic areas
and types and scopes of duties of, and restrictions on the activities of, the
parties hereto specified herein are and are intended to be divisible, and if
any portion thereof (including any sentence, clause or word) shall be held
contrary to law or invalid or unenforceable in any respect in any jurisdiction,
or as to one or more periods of time, areas or business activities or any part
thereof, the remaining provisions shall not be affected but shall remain in
full force and effect, and any such invalid or unenforceable provision shall be
deemed, without further action on the part of any party hereto or other Person,
modified and amended to the minimum extent on the part of any party hereto or
other Person, modified and amended to the minimum extent necessary to render
the same valid and enforceable in such jurisdiction.

5.12.        Fairness of Restrictions.  Executive acknowledges and agrees that (a)
compliance with the restrictive covenants set forth herein would not prevent
him from earning a 

 

7

living that
involves his training and skills without relocating, but only engaging in
unfair competition with, misappropriating a corporate opportunity of, or
otherwise unfairly harming Company and (b) the restrictive covenants set forth
herein are intended to provide a minimum level of protection necessary to
protect the legitimate interests on Company. 
In addition, the parties acknowledge that nothing herein is intended to
or shall limit, replace or otherwise affect any other rights or remedies at law
or in equity for protection against unfair competition with, misappropriation
of corporate opportunities of, disclosure of confidential and proprietary
information of, or defamation of Company, or for protection of any other rights
or interest of Company.

6.             Ownership and Assignment of Inventions.  Executive agrees that if, during his
employment with Company, Executive shall (either alone or with others) make,
conceive, discover or reduce to practice any invention, modification,
discovery, design, development, improvement, process, formula, data, technique,
know-how, secret or intellectual property right whatsoever or any interest therein
(whether or not patentable or registrable under copyright or similar statutes
or subject to analogous protection) (collectively, “Inventions”) that
relates to any of the products or services being developed, manufactured or
sold by Company or which may conveniently be used in relation therewith or
which may be used in place of any such product or service, or results from
tasks assigned to Executive by Company or results, in whole or in part, from
the use of property or premises owned, leased or contracted for by Company,
such Inventions and the benefits thereof shall immediately become the sole and
absolute property of Company and its assigns. 
Executive agrees that all Inventions that consist of works of authorship
capable of protection under copyright laws shall constitute works made for
hire.  Executive hereby agrees to assign,
and to the extent he may lawfully do so, hereby assigns to Company, any rights
Executive may have or acquire in the Inventions and benefits and/or rights
resulting therefrom to Company and its assigns without compensation.

7.             Executive’s Obligation to Keep Records.  Executive shall make and maintain adequate
and current written records of all Inventions, including notebooks and
invention disclosures, which records shall be available to and remain the
property of Company at all times. 
Executive shall promptly disclose all Inventions to Company, fully, in
writing and without publishing the same, immediately upon production or
development of the same and at any time upon request.

 

8

8.             Executive’s Obligation to Cooperate.  Executive will, at any time during his
employment, or after it terminates, upon request of Company, execute all
documents and perform all lawful acts which Company considers necessary or
advisable to secure its rights under Section 6 of this Agreement and to carry
out the intent of this Agreement. 
Without limiting the generality of the foregoing, Executive will assist
Company in any reasonable manner to obtain for its own benefit patents or
copyrights in any and all countries with respect to all Inventions assigned
pursuant to Section 6, and Executive will execute, when requested, patent and
other applications and assignments thereof to Company, or Persons designated by
it, and any other lawful documents deemed necessary by Company to carry out the
purposes of this Agreement, and Executive will further assist Company in every
way to enforce any patents and copyrights obtained, including testifying in any
suit or proceeding involving any of said patents or copyrights or executing any
documents deemed necessary by Company, all without further consideration than
provided for herein.  It is understood
that reasonable out-of-pocket expenses of Executive’s assistance incurred at
the request of Company under this Section will be reimbursed by Company.

9.             Termination.

9.1.          Bases for Termination.  Notwithstanding any other provision of this
Agreement, the employment relationship created under this Agreement between
Company and Executive shall terminate immediately upon the occurrence of any
one of the following events:

(a)           The death of Executive;

(b)           Executive shall become Permanently
Disabled (as defined in Section 9.4);

(c)           Immediately upon delivery to
Executive by Company of written notice of termination for Cause (as defined in
Section 9.4);

(d)           Immediately upon delivery to
Executive by Company of written notice of termination without Cause; or

(e)           Thirty (30) days after delivery to
Company by Executive of written notice of Executive’s voluntary and unilateral
termination of this Agreement.

 

Notwithstanding
any termination of employment, Executive, in consideration of his employment
hereunder to the date of such termination and the payment by Company of the
compensation payable hereunder, agrees that Executive’s covenants and
obligations set forth in Sections 5 through 10 shall remain in effect and be
fully enforceable in accordance with the provisions thereunder.

9.2.          Effect of Termination.

(a)           If Executive’s employment is terminated  pursuant 
to clauses (a), (b), (c) or (e) of Section 9.1 hereof, Executive shall
be entitled to receive his Salary pro-rated through the effective date of such
termination (which shall be the date of death or the date Executive becomes
Permanently Disabled), which pro-rated Salary shall be paid to Executive 

 

9

within 15
days of such effective date.  Executive
shall also be entitled to reimbursement for all Expenses incurred by Executive
prior to such effective date, to the extent that such expenses have not been
previously reimbursed by Company, which Expenses shall be paid to Executive
within 15 days after Executive submits to Company appropriate documentation as
required hereunder.

(b)           If Executive’s employment is
terminated pursuant to clause (d) of Section 9.1 hereof prior to a Change of
Control, Company shall (i) continue to pay to Executive his Salary in effect as
of the date immediately prior to the effective date of such termination, until
the six-month anniversary of such effective
date, and (ii) reimburse Executive for all Expenses incurred prior to such
effective date, to the extent that such Expenses have not been previously
reimbursed by Company, which Expenses shall be paid to Executive within 15 days
after Executive submits to Company appropriate documentation as required
hereunder.

(c)           If Executive’s employment is
terminated pursuant to clause (d) of Section 9.1 hereof after a Change of
Control, Company shall (i) continue to pay to Executive his Salary in effect as
of the date immediately prior to the effective date of such termination, until
the one-year anniversary of such effective
date, and (ii) reimburse Executive for all Expenses incurred prior to such
effective date, to the extent that such Expenses have not been previously
reimbursed by Company, which Expenses shall be paid to Executive within 15 days
after Executive submits to Company appropriate documentation as required
hereunder.

9.3.          Surrender of Records and Property.  Upon termination of his employment with
Company, Executive shall promptly deliver to Company all records, manuals,
books, blank forms, documents, letters, memoranda, notes, notebooks, reports,
data, tables, calculations and copies thereof, which are the property of ­Company
or which relate in any way to the business, products, practices or techniques
of Company, and all other property, trade secrets and confidential information
of Company, including, without limitation, all documents which in whole or in
part contain any trade secrets or confidential information of Company, which in
any of these cases are in his possession or under his control.

9.4.          Certain Definitions.  For the purposes of this Section 9, the
following terms shall have the following meanings:

                                “Cause” shall mean (i)
Executive’s willful misconduct which materially and adversely reflects upon the
business, affairs, operations, or reputation of Company or upon Executive’s
ability to perform his duties for Company; (ii) Executive’s failure to perform
his duties and responsibilities other than as a result of disability for
Company, which failure continues for more than ten days after Company gives
written notice to Executive which sets forth in reasonable detail the nature of
such failure; (iii) Executive’s negligent performance of his duties, which
negligent performance continues for more than ten days after Company gives
written notice to Executive which sets forth in reasonable detail the nature of
such negligence; or (iv) Executive’s breach of any one or more of the material
provisions of this Agreement (including without limitation Section 3.3 and the
policies referenced therein), which breach continues for more than ten days
after Company gives written notice to Executive which sets forth in reasonable
detail the nature of such breach.

 

10

                                “Permanently
Disabled” means Executive is unable to continue his normal duties of
employment, by reason of a medically determined physical or mental impairment,
for a continuous period of nineteen (19) consecutive weeks or for any
twenty-six (26) weeks within a fifty-two (52) week period.

 

10.           Miscellaneous Provisions.

10.1.        Governing
Law and Jurisdiction.  This Agreement shall be deemed to be a
contract made under the laws of the Commonwealth of Pennsylvania and for all
purposes shall be construed in accordance with the laws of said state
applicable to contracts made and to be performed within said state.  The parties consent to the exclusive
jurisdiction of the Courts of Common Pleas located in Bucks County,
Pennsylvania in all actions arising out of this Agreement.

10.2.        Entire Agreement.  This Agreement (together with the exhibit
attached hereto, which hereby is incorporated by reference) contains the entire
agreement of the parties hereto relating to the employment of Executive by
Company and the other matters discussed herein and supersedes all prior
agreements and understandings with respect to such subject matter, and the
parties hereto have made no agreements, representations or warranties relating
to the subject matter of this Agreement which are not set forth herein.

10.3.        Withholding
Taxes.  Company may withhold from any compensation or
other benefits payable under this Agreement all federal, state, city or other
taxes as shall be required pursuant to any law or governmental regulation or
ruling.

10.4.        Supplements
and Amendments.  This Agreement may be supplemented or amended
only upon the written consent of each of the parties hereto.

10.5.        Assignment.  Except as expressly
provided below, this Agreement shall not be assignable, in whole or in part, by
either party without the prior written consent of the other party.  Company may, without the prior written
consent of Executive, assign its rights and obligations under this Agreement to
any other corporation, firm or other business entity with or into which Company
may merge or consolidate, or to which Company may sell or transfer all or
substantially all of its assets, or of which 50% or more of the equity investment
and of the voting control is owned, directly or indirectly, by, or is under
common ownership with, Company.  This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns.

10.6.        No
Waiver.  No term or condition of this Agreement shall
be deemed to have been waived, nor shall there be any estoppel to enforce any
provisions of this Agreement, except by a statement in writing signed by the
party against whom enforcement of the waiver or estoppel is sought.  Any written waiver shall not be deemed a
continuing waiver unless specifically stated, shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such
term or condition for the future or as to any act other than that specifically
waived.

 

11

10.7.        Severability.   The provisions of
this Agreement are severable, and if any one or more provisions may be
determined to be judicially unenforceable and/or invalid by a court of
competent jurisdiction, in whole or in part, the remaining provisions shall
nevertheless be binding, enforceable and in full force and effect.

10.8.        Titles
and Headings.  The titles and headings of  the various Sections of this Agreement are
intended solely for convenience of reference and not intended for any purpose
whatsoever to explain, modify or place any construction upon any of the
provisions hereof.

10.9.        Remedies.  Executive recognizes that money damages alone
may not adequately compensate Company in the event of breach by Executive of
this Agreement, and Executive therefore agrees that, in addition to all other
remedies available to Company at law, in equity or otherwise, Company may be
entitled to injunctive relief for the enforcement hereof.  (For purposes of clarification, Executive’s
consent to injunctive relief is subject to Company first proving a material
breach of this Agreement.)  All rights
and remedies hereunder are cumulative and are in addition to and not exclusive
of any other rights and remedies available at law, in equity, by agreement or
otherwise.

10.10.      Validity.  In the event that any provision of this
Agreement shall be determined to be unenforceable by reason of its extension
for too great a period of time or over too large a geographic area or over too
great a range of activities, it shall be interpreted to extend only over the
maximum period of time, geographic area or range of activities as to which it
may be enforceable.  If, after
application of the preceding sentence, any provision of this Agreement shall be
determined to be invalid, illegal or otherwise unenforceable by a court of
competent jurisdiction, the validity, legality and enforceability of the other
provisions of this Agreement shall not be affected thereby.  Except as otherwise provided in this Section 10,
any invalid, illegal or unenforceable provision of this Agreement shall be
severable, and after any such severance, all other provisions hereof shall
remain in full force and effect.

10.11.      Notices.  For the purpose of this Agreement, notices
and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when hand delivered (which shall
include personal delivery and delivery by courier, messenger or overnight
delivery service) or mailed by certified mail, return receipt requested,
postage prepaid, addressed as follows:

	
  If
  to Executive:

  	
   

  	
  At his home address in
  accordance with the Company’s

  
	
   

  	
   

  	
  records.

  
	
   

  	
   

  	
   

  
	
  If to Company:

  	
   

  	
  2021
  Cabot Boulevard West

  
	
   

  	
   

  	
  Langhorne,
  PA 19047

  
	
   

  	
   

  	
   

  

 

or to such other address of which either
party gives notice to the other party in accordance herewith, except that
notices of change of address shall be effective only upon receipt.

 

12

 

 

10.12.      Counterparts.  This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

                                                                                                *
 *  *  *  *

 

 

 

13

 

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

 

	
   

  	
   

  	
  POWER MEDICAL
  INTERVENTIONS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Whitman

  
	
   

  	
   

  	
   

  	
  Name: Michael Whitman

  
	
   

  	
   

  	
   

  	
  Title: President & CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ John P. Gandolfo

  
	
   

  	
   

  	
  John P. Gandolfo

  
	
   

  	
   

  	
   

  	
   

  

 

 

 

 

14

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