Document:

exv10w7

 

Exhibit 10.7

Craig Carlson

		
	Re: 	Termination Agreement

Dear Craig:

     This letter, upon your signature, will constitute the agreement between you and Cygnus, Inc.
(the “Company”) on the terms of your termination from employment with the Company.

     1.      Your position with the Company will be eliminated as of April 1, 2005 (your “date of
termination”). You therefore will no longer represent to anyone that you are still an employee of
the Company and will not say or do anything purporting to bind the Company or any of its
subsidiaries or affiliates.

     2.      You will be paid your earned salary and accrued vacation pay through the date of your
termination.

     3.      You will return to the Company all company property in your possession, including but not
limited to your card key, office keys, business cards, computer files, lab notebooks and other
notebooks and documents relating to Cygnus business, training binders, etc. By no later than March
23, 2005, you will submit expense reports, if any, for pre-approved business expenses that you
incurred prior to your date of termination. The Company will reimburse you in accordance with its
existing policies for these expenses. Cygnus will deduct the cost of any Cygnus property that has
not been returned before reimbursing you for approved business expense reports.

     4.      In consideration of the following: (a) your acceptance of this Termination Agreement; (b)
your signing the Company’s Proprietary Information Agreement Termination Certification; and (c)
your agreement to provide up to 40 hours of consulting services to Cygnus, Inc. and/or Animas
Corporation/Animas Technologies LLC or its designee until 12/31/05; then pursuant to Paragraph 13,
the Company will pay you a lump-sum post-termination severance of $483,098.00 (the “Severance
Amount” which includes $998.00 in lieu of the Company paying for a life insurance policy) less
customary payroll deductions. You will have twelve (12) months after the date of your termination
of employment to exercise your vested stock options (subject to the option’s expiration date as
provided in the applicable option agreement).

 

 

Craig Carlson

Page 2

     The Company will also give you a computer and other miscellaneous equipment and you have
agreed to take this property as-is. The Company will not in any way be responsible for any repair
or replacement or ongoing support relating to this equipment. Furthermore you warrant that you
will immediately remove all company information from this equipment.

     5.      As of the date of your termination, you will no longer be eligible to participate in any of
the Company’s benefit or compensation plans, except as provided by law or the terms of the
applicable plans. Information regarding your rights to continuation of your health insurance
coverage under the terms of COBRA will be sent to you under separate cover. To the extent that you
have such rights, nothing in this Termination Agreement will impair them.

     6.      On behalf of yourself and your representatives, agents, heirs and assigns, you waive,
release, discharge and promise never to assert any and all claims, liabilities or obligations of
every kind and nature, whether known or unknown, suspected or unsuspected that you ever had, now
have or might have as of the effective date of this Termination Agreement against the Company, its
predecessors, subsidiaries, affiliates, related entities, officers, directors, shareholders,
owners, agents, attorneys, employees, successors, or assigns.

     The released claims include, without limitation, any claims arising from or related to your
employment with the Company, the termination of your employment with the Company, and/or the
execution of this Termination Agreement. The claims also specifically include, without limitation,
any claims arising under any federal, state and local statutory or common law, such as Title VII of
the Civil Rights Act, the federal Age Discrimination in Employment Act, the California Fair
Employment and Housing Act, the Americans With Disabilities Act, the Employee Retirement Income
Security Act, the Fair Labor Standards Act, the California Labor Code (all as amended), the law of
contract and tort, and any claim for attorneys’ fees.

     You also waive and release and promise never to assert any such claims, even if you do not now
know or believe that you have such claims. You therefore waive your rights under section 1542 of
the Civil Code of California, which states:

A general release does not extend to claims which the creditor does not
know or suspect to exist in his favor at the time of executing the
release, which if known to him must have materially affected his
settlement with the debtor.

     In short, you agree that you will not bring any lawsuits or claims of any kind against the
Company, its predecessors, subsidiaries, affiliates, related entities, officers, directors,
shareholders, owners, agents, attorneys, employees, successors, or assigns and will not accept the
benefits of any lawsuits or claims of any kind brought on

 

 

Craig Carlson

Page 3

your behalf against the Company, its predecessors, subsidiaries, affiliates, related entities,
officers, directors, shareholders, owners, agents, attorneys, employees, successors, or assigns.

     7.      Unless required by court order or law, you will not disclose to anyone any information
regarding the terms of this Termination Agreement, the benefits being paid to you under it or the
fact that a payment was made to you, except that you may disclose this information to your spouse,
attorney, accountant or other professional advisor to whom you must make the disclosure in order
for them to render professional services to you. In such circumstances, however, you will instruct
them to maintain the confidentiality of this information just as you must.

     8.      You will not disclose to anyone any confidential or other information regarding the
Company’s practices, procedures, business, trade secrets, corporate strategy, customer lists or
marketing strategies, without prior written permission from the Chief Executive Officer of the
Company or unless required by court order. You acknowledge the highly confidential nature of
information regarding the Company’s customers, subsidiaries, affiliates and employees.

     9.      You further agree that you will not disparage the Company, any of its subsidiaries,
affiliates, related entities or any past or present officers, directors or employees of the
Company. You also agree that you will not say or do anything that damages or impairs in any way
the business organization, goodwill, or reputation of the Company or any of its subsidiaries,
affiliates or related entities.

     10.     Upon request by the Company, you agree to cooperate to the extent necessary to protect the
interests of the Company or any of its subsidiaries, affiliates or related entities, including
without limitation, in providing any information that you have about the Company’s business and its
operations and/or in providing truthful testimony as a witness or declarant in connection with any
potential future litigation which may arise as to which you have any relevant information.

     11.     In the event that you breach any of your obligations under this Termination Agreement or
as otherwise imposed by law, the Company will be entitled to immediate return of any and all
benefits paid to you under this Agreement and to obtain injunctive relief and all other relief
provided by law or equity. All other duties and obligations under the Agreement, however,
including your waivers and releases, shall remain in full force and effect.

     12.     With the exception of a suit for injunctive or equitable relief, in the event that a
dispute arises concerning the interpretation or enforcement of this Termination Agreement, or any
other related matter, you and the Company agree that any such dispute shall be resolved by a
three-member arbitration panel in accordance with the commercial arbitration rules of the American
Arbitration Association. You and the

 

 

Craig Carlson

Page 4

Company therefore specifically waive any right to a jury trial on any such disputes. The losing
party in any such dispute shall pay all of the winning party’s costs, including any arbitrator or
administrative fees and reasonable attorneys’ fees. Any arbitration shall be held in San Francisco
County and this Termination Agreement will in all respects be interpreted and governed under the
laws of the State of California.

     13.     Pursuant to the Older Workers Benefit Protection Act (OWBPA), you acknowledge that you
were provided up to 45 days to consider and accept the terms of this Termination Agreement
(although you may accept it at any time within those 45 days) and that you were advised to consult
with an attorney about the Termination Agreement before signing it. In addition, pursuant to the
OWBPA, attached is an informational exhibit.

     To accept the agreement, please date and sign this letter and return it to Human Resources.
Once you do so, you will still have an additional seven days in which to revoke your acceptance.
To revoke, you must send Human Resources a written statement of revocation by registered mail. If
you do not revoke, the eighth day after the date of your acceptance will be the “effective date” of
the agreement. Your Severance Amount will be provided to you within 10 business days from the
effective date of this Agreement.

     14.     Except as set forth in this Termination Agreement, there are no representations, promises,
agreements or understandings between you and the Company about or pertaining to the termination of
your employment with the Company, or the Company’s obligations to you with respect to your
employment or any other matter mentioned above. This Agreement therefore supercedes any prior
written or oral representations, promises, agreements and understandings regarding any of the
matters discussed above (including without limitation the following: (a) the February 5, 1996
Letter Agreement; (b) the February 5, 1996 as modified on August 28, 1998 Letter Agreement; (c) the
August 28, 1998 Letter Agreement; (d) the December 12, 2000 Letter Agreement; and (e) the December
18, 2003 Letter). This Termination Agreement therefore supercedes any prior written or oral
representations, promises, agreements and understandings regarding any of the matters discussed
above.

	 	 	 	 	 
	 	Sincerely,

	 
	 	 	 
	 	John C Hodgman	 
	 	Chairman, CEO, and President	 
	 

 

 

Craig Carlson

Page 5

     By signing this letter, I acknowledge that I have carefully reviewed and considered this
Termination Agreement; that I fully understand all of its terms; and that I voluntarily agree to
them.

     Date: ____________

	 	 	 	 	 
	 	 	 
	 	Craig Carlson	 
	 	 	 
	 	 	 
	 	 	 
	 

 

 

Craig Carlson

Page 6

Exhibit

	 	 	 	 	 	 	 	 	 
	 	 	 
	 	Job Title	 	 	ages of # selected	 	 	ages of # not selected	 
	 	 	 	 	 	 	 	 	 
	 	Officers

	 	 	61, 57
	 	 	50, 50	 
	 	 	 	 	 	 	 	 	 
	 	Technical

	 	 	36, 44, 46, 50,

51, 56, 56, 62
	 	 	none	 
	 	 	 	 	 	 	 	 	 
	 	Administrative

	 	 	34, 34, 35, 41,

47, 53, 53, 60
	 	 	noneexv10w8

 

Exhibit 10.8

John C Hodgman

Chairman of the Board

Cygnus, Inc.

400 Penobscot Drive

Redwood City, CA 94063

Dear John,

In light of the Company’s anticipated sale of its assets to Animas and adoption of a plan of
dissolution, I hereby tender my resignation as a director of the Cygnus Board, effective March 31,
2005.

Sincerely,

Richard G. Rogers

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