Document:

exv10w1

 

Exhibit 10.1

September 15, 2004

Alan Fuhrman

16508 NE 134th Place

Redmond, Washington 98033

          Re: Change In Control Agreement

Dear Alan:

     In consideration of your continued employment with Sonus Pharmaceuticals,
Inc., a Delaware corporation (the “Company”), you and the Company desire to
enter into the agreement as set forth herein. This letter agreement (the
“Agreement”) sets forth the compensation and benefits you will be entitled to
receive in the event your employment terminates in connection with a change in
control of the Company under the conditions described below. This Agreement
takes effect on the date set forth above.

1. TERMINATION OF EMPLOYMENT.

     1.1. During the term of this Agreement, you will be entitled to the
benefits provided in Section 2 of this Agreement in the event (A) a Change in
Control has occurred; and (B) (i) you terminate your employment with the
Company for Good Reason within 12 months following the Change of Control, or
(ii) the Company terminates your employment for reasons other than Cause,
Disability, or your death within 12 months following the Change of Control,
provided you fulfill your obligations under this Agreement.

     1.2 For purposes of this Agreement, the term “Change in Control” shall
mean (i) a sale of fifty percent (50%) or more of the outstanding shares of
common stock of the Company; (ii) a sale of all or substantially all of the
assets of the Company, or (iii) a merger, consolidation or reorganization
whereby the stockholders of the Company immediately prior to the consummation
of such merger, consolidation or reorganization own less than fifty percent
(50%) of the outstanding shares of common stock immediately following the
consummation of the merger, consolidation or reorganization.

 

 

Alan Fuhrman

September 15, 2004

Page 2

     1.3. For purposes of this Agreement, the term “Good Reason” shall mean any
of the following, if done without your consent:

          1.3.1. A substantial diminution in your duties and responsibilities to a
level substantially beneath that of your duties and responsibilities as Senior
Vice President, Chief Financial Officer other than actions that are not taken
in bad faith and are remedied by the Company within thirty days after written
notice by you;

          1.3.2. A reduction by the Company in your current annual base salary
unless such reduction is attributable to an across the board salary reduction
for all of management personnel of the Company and then only if the percentage
of your reduction is (i) not greater than 10%, and (ii) no greater than that of
the other management personnel;

          1.3.3. The Company requires the relocation of your base of employment
outside the Seattle, Washington metropolitan area;

          1.3.4. A material breach by the Company of any of the terms and provisions
of this Agreement, which is not cured within 30 days of written notice by you
of such breach; or

          1.3.5. the failure of the Company to obtain a satisfactory agreement from
any successor in a Change of Control to assume and agree to perform this
Agreement, as contemplated in Section 6 hereof.

     1.4 For purposes of this Agreement, the term “Cause” shall mean any of the
following: (i) your willful and continued failure or refusal to perform your
duties with the Company; (b) your willfully engaging in gross misconduct
injurious to the Company; (c) your being convicted or pleading guilty or nolo
contendere to any misdemeanor involving moral turpitude or to any felony; (d)
your having materially breached any provision of this Agreement, or any
agreement concerning confidentiality or ownership of inventions with the
Company and failed to cure such breach to the reasonable satisfaction of the
Company within thirty (30) days following written notice of breach, if such
cure is possible.

     1.5. For purposes of this Agreement, the term “Disability” shall mean your
inability to perform the essential functions of your position due to any
physical or mental illness even with reasonable accommodation to the extent
required by law, for any period of six months in the aggregate during any
twelve months, provided the Company has given you a written demand to return to
your full-time duties.

     1.6 Any termination of employment by you or by the Company pursuant to
this Agreement shall be communicated by written Notice of Termination
indicating the termination provision in this Agreement relied upon, if any.
For purposes of this Agreement, the “Date of Termination” shall mean the date
specified in the Notice of Termination which shall not be earlier than ten (10)
business days after the date on the Notice of Termination is given and, if
applicable, the expiration of the period to cure a breach as provided in
Section 1.4(d) of this Agreement.

 

 

Alan Fuhrman

September 15, 2004

Page 3

2. COMPENSATION UPON TERMINATION.

     2.1. If your employment shall be terminated and you are entitled to
benefits under Section 1 of this Agreement then, except as provided in
Subsection 2.2, you shall receive the following benefits:

          2.1.1. the Company shall pay to you in a lump sum within ten days
following the Date of Termination (a) your base salary unpaid through the Date
of Termination at the rate in effect as of the time of Notice of Termination
and (b) an amount equal to the value as of the Date of Termination of the
deferred portion of any bonus which has been declared but is unpaid under any
incentive compensation plan or program of the Company then in effect;

          2.1.2. the Company shall pay to you as severance pay in a lump sum within
thirty days following the Date of Termination an amount equal to your highest
annual base salary in effect any time during the twelve (12) month period prior
to the Date of Termination; and

          2.1.3. the Company shall maintain in full force and effect, for the
continued benefit of you for one year after the Date of Termination, or, if
sooner, until you are employed in a full-time capacity by another employer, all
non-cash health and welfare plans and programs (excluding 401(k) or any
employee bonus plans and programs or retirement plans or programs) in which you
participated immediately prior to the Date of Termination provided that your
continued participation is permissible under the general terms and provisions
of such plans and programs. In the event that your participation in any such
plan or program is barred, the Company shall arrange to provide you with
benefits substantially similar to those which you are entitled to receive under
such plans and programs at no cost to you. At the end of the period of
coverage, you shall have the option to have assigned to you at no cost and with
no apportionment of prepaid premiums, any assignable insurance policy owned by
the Company and relating specifically to you.

     2.2. Notwithstanding Section 1, the respective obligations of, and
benefits afforded to, the Company and you as provided in this Section 2, shall
survive termination of this Agreement.

     2.3. No compensation or benefits shall be due under this Agreement in the
event your employment is terminated by you or the Company in circumstances
other than those described in Section 1.1, including but not limited to a
termination by you for any reason other than Good Reason, a termination by the
Company for Cause, Disability, or death, or any termination that does not occur
within twelve months following a Change in Control.

     2.4. To the extent that any or all of the payments and benefits provided
for in this Agreement constitute “parachute payments” within the meaning of
Section 280G of the Internal Revenue Code (the “Code”) and, but for this
Section 2.4 would be subject to the excise tax imposed by Section 4999 of the
Code, the aggregate amount of such payments and benefits shall be reduced such
that the present value thereof (as determined under the Code and applicable
regulations) is equal to 2.99 times the Executive’s “base amount” (as defined
in the Code). The determination of any reduction of any payment or benefits
under Section 2 pursuant to the foregoing provision shall be made by a
nationally recognized public accounting firm chosen by the Company in good
faith, and such determination shall be conclusive and binding on the Company
and you.

 

 

Alan Fuhrman

September 15, 2004

Page 4

3. OTHER BENEFITS.

     In the event you are entitled to any compensation or benefits under this
Agreement, you shall not be entitled to any other severance compensation or
benefits under any other policy or agreement with the Company.

4. PROPRIETARY INFORMATION AND UNFAIR COMPETITION.

     4.1 You acknowledge that in the course of your employment with the
Company, you will be entrusted with access to extensive confidential
information of the Company concerning its products and service, methods of
manufacture, research and development, know-how, patents, copyrights,
trademarks, and other proprietary data, as well as the identity, needs, and
preferences of its customers and prospects, all of which the Company considers
its legally protected trade secrets and intellectual property. You further
acknowledge the highly competitive nature of the business of the Company, and
the fact that unauthorized disclosure or use of such trade secrets and
intellectual property would be inevitable if you were to compete with the
Company or solicit competing business from its prospects and customers. You
therefore agree as follows:

     4.2 Commencing on the Date of Termination, and ending one year thereafter
(the “Non-Compete Period”), you will not provide goods or services to or become
an employee, owner (except for passive investments of not more than three
percent of the outstanding shares of, or any other equity interest in, any
company or entity listed or traded on a national securities exchange or in an
over-the-counter securities market), officer, agent, consultant, advisor or
director of any firm or person in any geographic area which competes with the
“Business”. For purposes of this Agreement, the term “Business” shall mean the
specific business conducted by the Company on the Date of Termination. As of
the date of this Agreement, the “Business” of the Company consists of the
research, design, development, manufacture, sale or distribution of Vitamin E
emulsion-based drug delivery products.

     4.3 During the Non-Compete Period, you will not directly or indirectly
induce any employee of the Company or any of its affiliates to engage in any
activity in which you are prohibited from engaging by paragraph 4.2 above, or
to terminate such employee’s employment with the Company, or any of its
affiliates, and will not directly or indirectly employ or offer employment to
any person who was employed by the Company or any of its affiliates unless such
person shall cease to be employed by the Company or any of its affiliates for a
period of at least 12 months; provided, however, that this provision shall not
apply to any person who is no longer an employee of the Company or any of its
affiliates as of a result of actions taken by the Company or its affiliates.

     4.4 During the Non-Compete Period, you will refrain from making any
statement which has the effect of demeaning the name or the business reputation
of the Company or its subsidiaries or affiliates, or any officer or employee
thereof, or which materially adversely effects the best interests (economic or
otherwise) of the Company, its subsidiaries or affiliates.

     4.5. It is expressly understood and agreed that although you and the
Company consider the restrictions contained in this Section 4 to be reasonable,
if a final judicial determination is made by a court of jurisdiction that the
time or territory or any other restriction contained in this Agreement

 

 

Alan Fuhrman

September 15, 2004

Page 5

is an unenforceable restriction against you, provisions of this Agreement
shall not be rendered void, but shall be deemed amended to apply to such
maximum time and territory and to such maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any
court of competent jurisdiction finds that any restriction contained in this
Agreement is unenforceable, and such restriction cannot be amended so as to
make it enforceable, such finding shall not effect the enforceability of any of
the other restriction contained herein.

5. MISCELLANEOUS.

     Any payment required under this Agreement shall be subject to all
requirements of the law with regard to withholding, filing, making of reports
and the like, and the Company shall use its commercially reasonable best
efforts to satisfy promptly all such requirements. No provisions of this
Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in a writing signed by both parties.
The validity, interpretation, construction and performance of this Agreement
shall be governed by the law of the State of Delaware.

6. SUCCESSORS AND ASSIGNMENT.

     This agreement and all of your rights thereunder shall inure to the
benefit of and be enforceable by your personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees. Except as expressly provided in this Agreement, this Agreement is
personal to you and may not be assigned to you. If you should die while any
amounts would still be payable to you hereunder if you had continued to live,
all such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to your devisee, legatee, or other designee
or, if there be no such designee, to your estate. This Agreement shall be
binding upon any successor to the Company (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company.

7. TERM OF AGREEMENT.

     This Agreement shall commence as of the date of this Agreement and shall
terminate on the earliest of (i) the termination of your employment by the
Company for Cause, Disability or death; (ii) your termination of employment
other than for Good Reason or (iii) your reaching age 65.

8. NO GUARANTEE OF CONTINUED EMPLOYMENT.

     This Agreement is intended solely to provide you with certain compensation
and benefits in the event your employment terminates in the circumstances
described in Section 1.1. Nothing in this Agreement constitutes or implies any
specific term of employment. You acknowledge and agree that your employment
with the Company can be terminated by you or the Company at any time with or
without cause or prior warning. Nothing in this Agreement limits or supersedes
any other agreements between you and the Company concerning confidentiality or
ownership of intellectual property.

 

 

Alan Fuhrman

September 15, 2004

Page 6

9. MEDIATION

     In the event that the Company terminates you for Cause and you dispute its
right to do so or you claim that you are entitled to terminate your employment
for Good Reason and the Company disputes your right to do so, a mediator
acceptable to you and the Company will be appointed within ten (10) days to
assist in reaching a mutually satisfactory resolution but will have no
authority to issue a binding decision. Such mediation must be concluded within
60 days of the date of termination or claim to termination. Should such
mediation fail to reach an acceptable conclusion and you are successful in any
litigation or settlement that issues from such dispute, you shall be entitled
to receive from the Company all of the expenses incurred by you in connection
with any such dispute including reasonable attorney’s fees.

     If this Agreement is acceptable to you, kindly sign and return to the
Company the enclosed copy of this letter.

	 	 	 
	

	 	Sincerely,
	 
	 	 
	

	 	Sonus Pharmaceuticals, Inc.
	 
	 	 
	 
	 	 
	

	 	/s/ Michael A. Martino
	

	 	
 
	

	 	Michael A. Martino

President & Chief Executive Officer

	 	 	 
	AGREED AND ACCEPTED:
	 	 
	 
	 	 
	/s/ Alan Fuhrman

Alan FuhrmanOSHKOSH TRUCK
CORPORATION 
(a Wisconsin corporation) 

2004 Incentive Stock
and Awards Plan 
                 Restricted
Stock Award              

[Participant]: 

[Participant Address]: 

Oshkosh Truck Corporation (the
“Company”) and you hereby agree as follows: 

You have been granted an award of
shares of common stock of the Company constituting Restricted Stock under the Oshkosh
Truck Corporation 2004 Incentive Stock and Awards Plan (the “Plan”) with the
following terms and conditions: 

Grant Date: 

Number of Shares of
Restricted Stock: 

Vesting Schedule: 

	

	           Number of Shares of Restricted Stock	           Vesting Date
	

	One-third of Shares	1st anniversary of Grant Date
	

	One-third of Shares	2nd anniversary of Grant Date
	

	One-third of Shares	3rd anniversary of Grant Date
	

You will forfeit any shares of
Restricted Stock that are not vested as of the date of your termination of employment for
reasons other than death, Disability or Retirement. Any shares of Restricted Stock that
are not vested will become fully vested at the time you terminate employment as a result
of death, Disability or Retirement. 

Restrictions on
Transferability: You may not sell, transfer, pledge or otherwise alienate or
hypothecate any of your shares of Restricted Stock until they are vested. 

Issuance of Share Certificates:
The Company will issue certificate(s) in your name evidencing your shares of
Restricted Stock as soon as practicable following your execution of this Award. In
addition to any other legends placed on the certificate(s), such certificate(s) will bear
substantially the following legend: 

	 	
The
shares of Stock represented by this certificate are subject to forfeiture, and the sale
or other transfer of the shares of Stock represented by this certificate (whether
voluntary or by operation of law) is subject to certain restrictions, as set forth in a
Restricted Stock Award, dated as of ______________________, by and between Oshkosh Truck
Corporation and the registered owner hereof. A copy of such Award may be obtained from
the Secretary of Oshkosh Truck Corporation.  

        Upon
the vesting of shares of Restricted Stock, you will be entitled to a new certificate(s)
for the Shares that have vested, without the foregoing legend, upon making a request for
such certificate to the Secretary of the Company. 

Voting Rights and Dividends:
While the shares of Restricted Stock are subject to forfeiture, you may exercise full
voting rights and will receive all dividends and other distributions paid with respect to
the Restricted Stock, in each case so long as the applicable record date occurs before you
forfeit such Shares. If, however, any such dividends or distributions are paid in Shares,
such Shares will be subject to the same risk of forfeiture, restrictions on
transferability and other terms of this Award as are the shares of Restricted Stock with
respect to which they were paid. 

Tax Withholding: To the extent
that the receipt of the Restricted Stock or the vesting of Restricted Stock results in
income to you for federal, state or local income tax purposes, you shall deliver to the
Company at the time the Company is obligated to withhold taxes in connection with such
receipt or vesting, as the case may be, such amount as the Company requires to meet its
withholding obligation under applicable tax laws or regulations, and if you fail to do so,
the Company has the right and authority to deduct or withhold from other compensation
payable to you an amount sufficient to satisfy its withholding obligations. If you do not
make an election under Section 83(b) of the Internal Revenue Code of 1986, as amended, in
connection with this Award, you may satisfy the withholding requirement, in whole or in
part, by electing to deliver to the Company that number of shares of Restricted Stock
(that would otherwise be vested on the date the tax is determined) having an aggregate
Fair Market Value on the date the tax is to be determined equal to the minimum statutory
total tax that the Company must withhold in connection with the vesting of such Shares.
Your election must be irrevocable, in writing, and submitted to the Secretary on or before
the applicable vesting date. The Fair Market Value of any fractional Share not used to
satisfy the withholding obligation (as determined on the date the tax is determined) will
be paid to you in cash. 

This Award is granted under and
governed by the terms and conditions of the Plan. Additional provisions regarding your
award of Restricted Stock and definitions of capitalized terms used and not defined in
this Award can be found in the Plan, a copy of which is attached hereto. 

2 

IN WITNESS WHEREOF, the Company has
caused this Award to be duly executed, and you have executed this Award Agreement, all as
of the Grant Date stated above. 

		OSHKOSH TRUCK CORPORATION
	

 	By:  ________________________________
		        Robert G. Bohn
		        Chairman, President and
		          Chief Executive Officer
	

 	Accepted:
	

 	By:  ________________________________
		        Participant Name [Typed]

3

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