Document:

Exhibit 10.2

 

RESTRICTED STOCK AWARD AGREEMENT

 

THIS AGREEMENT,
dated as of November 10, 2004, is between CURATIVE HEALTH SERVICES, INC., a
Minnesota corporation (together with any of its subsidiaries, the “Company”),
and Joseph L. Feshbach, an individual resident of the State of California
(“Executive”).

 

RECITALS

 

A.            The Company wishes to grant to
Executive, effective as of the date of this Agreement, an award of restricted
shares of the Company’s common stock, par value $.01 per share (the “Common
Stock”), on the terms and subject to the conditions set forth in this Agreement
and the Company’s 2001 Broad-Based Stock Incentive Plan.

 

B.            Executive desires to accept such
grant.

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants herein contained, the
parties hereto hereby agree as follows:

 

1.             Definitions.  As used in this Agreement, the following
terms have the meanings set forth below:

 

“Award” has the
meaning ascribed to such term in Section 2 hereof.

 

“Board” means the
Board of Directors of the Company.

 

“Cause” has the
meaning ascribed to such term in the Transition Agreement.

 

“Change In
Control” has the meaning ascribed to such term in the Transition Agreement.

 

“Code” means the
Internal Revenue Code of 1986, as amended.

 

“Common Stock” has
the meaning specified in Recital A hereof.

 

“Person” means an
individual, a partnership, a corporation, a limited liability company, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political
subdivision thereof.

 

“Plan” means the
Company’s 2001 Broad-Based Stock Incentive Plan, as amended from time to time.

 

“Shares” means,
collectively, the shares of Common Stock subject to the Award, whether or not
such shares are Vested Shares.

 

“Special Advisor
Term” has the meaning ascribed to such term in the Transition Agreement.

 

 

“Transition
Agreement” means the Transition Agreement, made effective as of October 1,
2004, between the Company and Executive.

 

“Vested Shares”
means the Shares with respect to which the Award has vested at any particular
time.

 

2.             Award.

 

(a)           The Company, effective as of the date
of this Agreement, hereby grants to Executive a restricted stock award of
100,000 shares of Common Stock (the “Award”), subject to the terms and
conditions set forth herein and in the Plan.

 

(b)           The parties agree that for all
purposes hereunder the value of the Shares shall be equal to the closing price
of the Common Stock (as reported on the Nasdaq National Market) on November 9,
2004.

 

3.             Vesting.

 

(a)           Subject to the terms and conditions
of this Agreement, 8,334 of the Shares shall vest on the date of grant and
thereafter on the first day of each month commencing with December 2004 and
ending with the vesting of the remaining balance of the Shares (i.e., 8,326
Shares) on October 1, 2005.

 

(b)           Notwithstanding the vesting
provisions contained in Section 3(a) above, but subject to the other terms and
conditions set forth herein, if during the Special Advisor Term a Change in
Control of the Company occurs, or the Transition Agreement is terminated by the
Company without Cause, then all of the Shares shall immediately vest on the
date of such Change In Control or termination of the Transition Agreement, as
the case may be.

 

(c)           Except as provided in Section 3(b),
if Executive ceases to be an employee for any reason prior to the vesting of
any Shares, such Shares remaining unvested as of the date of termination shall
be immediately and irrevocably forfeited and the Executive will retain no
rights with respect to the forfeited Shares.

 

4.             Restriction on Transfer of
Shares.  The Shares cannot be sold,
assigned, transferred, gifted, pledged, hypothecated, or in any manner
encumbered or disposed of at any time prior to vesting pursuant to Section 3
above.

 

5.             Issuance of Shares and Custody
of Certificates.  The Company shall
cause a stock certificate or certificates evidencing the Shares to be issued in
the name of the Executive, which certificate or certificates shall be held by
the Secretary of the Company or the stock transfer agent or brokerage service
selected by the Secretary of the Company to provide such services for the
Plan.  The Shares shall be restricted
from transfer and the certificate or certificates may bear an appropriate
legend referring to the restrictions applicable to the Shares.  Executive hereby agrees to the retention by
the Company of the Shares and to execute and deliver to the Company a blank
stock power with respect to the Shares as a condition to the receipt of this
Award.  After any Shares vest pursuant to
Section 3 hereof, and following payment of any applicable withholding taxes
pursuant to section 7 of this Agreement, the Company shall, upon request of 

 

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the Executive, cause to be issued a certificate or certificates,
registered in the name of Executive or in the name of Executive’s legal
representatives, beneficiaries or heirs, as the case may be, evidencing such
Vested Shares and shall cause such certificate or certificates to be delivered
to Executive or Executive’s legal representatives, beneficiaries or heirs, as
the case may be, free of the legend referenced above.

 

6.             Rights as Shareholder.  Executive shall be entitled at all times on
and after the date of issuance of the Shares to exercise the rights of a
shareholder of Common Stock with respect to the Shares, including the right to
vote the Shares and the right to receive dividends on the Shares.

 

7.             Distributions and Adjustments.  In accordance with Section 4(c) of the Plan,
the Award shall be subject to adjustment in the event that any distribution,
recapitalization, reorganization, merger or other event covered by Section 4(c)
of the Plan shall occur.

 

8.             Taxes.  In order to provide the Company with the
opportunity to claim the benefit of any income tax deduction which may be
available to it in connection with this restricted stock award, and in order to
comply with all applicable federal or state tax laws or regulations, the Company
may take such action as it deems appropriate to insure that, if necessary, all
applicable federal or state income and social security taxes are withheld or
collected from Executive.  Within 30 days
after the date hereof, Executive may, at Executive’s option, make and file with
the Company and the Internal Revenue Service an election relating to the Shares
pursuant to Section 83(b) of the Code.

 

9.             Executive’s Employment.  Nothing in this Agreement shall confer upon
Executive any right to continue in the employ of the Company or any of its
subsidiaries or interfere with the right of the Company or its subsidiaries, as
the case may be, to terminate Executive’s employment or to increase or decrease
Executive’s compensation at any time.

 

10.           Notices.  All notices, claims, certificates, requests,
demands, and other communications hereunder shall be in writing and shall be
deemed to have been duly given and delivered if personally delivered or if sent
by nationally recognized overnight courier, by facsimile or by registered or
certified mail, return receipt requested and postage prepaid, addressed as
follows:

 

(a)           If
to the Company, to it at:

 

Curative Health Services, Inc.

150 Motor Parkway

Hauppauge, NY 
11788

Attention: 
Nancy F. Lanis, Esq.. Executive Vice President, General 

Counsel and Corporate
Secretary

 

(b)           If
to Executive, to him at:

 

Joseph L. Feshbach

110 Atherton

Atherton, California 94027,

 

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or

 

(c)           to such other address as the party to
whom notice is to be given may have furnished to the other party in writing in
accordance herewith.

 

Any such notice or
communication shall be deemed to have been received (i) in the case of personal
delivery, on the date of such delivery (or if such date is not a business day,
on the next business day), (ii) in the case of nationally-recognized overnight
courier, on the next business day after the date sent, (iii) in the case of
facsimile transmission, when received (or if not sent on a business day, on the
next business day after the date sent), and (iv) in the case of mailing, on the
third business day following the date on which the piece of mail containing
such communication is posted.

 

11.           Waiver of Breach. The waiver
by either party of a breach of any provision of this Agreement must be in
writing and shall not operate or be construed as a waiver of any other or
subsequent breach.

 

12.           Undertaking.  Both parties hereby agree to take whatever
additional actions and execute whatever additional documents either party may
in their reasonable judgment deem necessary or advisable in order to carry out
or effect one or more of the obligations or restrictions imposed on the other
party under the provisions of this Agreement.

 

13.           Plan Provisions Control.  In the event that any provision of the
Agreement conflicts with or is inconsistent in any respect with the terms of
the Plan, the terms of the Plan shall control.

 

14.           Securities Matters.  The Company shall not be required to deliver
Shares until the requirements of any federal or state securities or other laws,
rules or regulations (including the rules of any securities exchange) as may be
determined by the Company to be applicable are satisfied.

 

15.           Remedies.  Both parties shall be entitled to enforce
their rights under this Agreement specifically, to recover damages and costs by
reason of any breach of any provision of this Agreement and to exercise all
other rights existing in its favor. The parties agree and acknowledge that
money damages would not be an adequate remedy for certain breaches of the
provisions of this Agreement and that the either party may, in its sole
discretion, and without affecting any other rights it may have at law, apply to
any court of competent jurisdiction for specific performance and/or injunctive
relief (without posting a bond or other security) in order to enforce or
prevent any violation of the provisions of this Agreement.

 

16.           Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York (without giving
effect to principles of conflicts of laws).

 

17.           Counterparts.  This Agreement may be executed in one or more
counterparts, and each such counterpart shall be deemed to be an original, but
all such counterparts together shall constitute but one agreement.

 

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18.           Entire Agreement.  This Agreement (and the other writings
incorporated by reference herein, including the Transition Agreement)
constitutes the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior or contemporaneous written or
oral negotiations, commitments, representations, and agreements with respect
thereto.

 

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

 

 

	
   

  	
  CURATIVE HEALTH
  SERVICES, INC,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas Axmacher

  
	
   

  	
   

  	
  Name:

  	
  Thomas Axmacher

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Joseph L. Feshbach – 11/10/04

  
	
   

  	
   

  	
  Joseph
  L. Feshbach

  

 

5Exhibit 10.3

 

AMENDMENT TO EMPLOYMENT AGREEMENT

 

This Amendment
to Employment Agreement (“Amendment”) is made as of November 15, 2004 by and
between Curative Health Services, Inc., a Minnesota corporation (“Company”) and
Paul F. McConnell, an individual resident of the Commonwealth of Massachusetts
(“Executive”).

 

WHEREAS, the Company
and Executive entered into an Employment Agreement dated April 23, 2004 (as
such agreement may be amended from time to time, the “Employment Agreement”),
pursuant to which agreement it was contemplated that Executive could be
appointed as Chief Executive Officer of the Company upon approval by the
Company’s Board of Directors; and

 

WHEREAS, the Company’s
Board of Directors has approved of the appointment of Mr. McConnell as the
Company’s Chief Executive Officer, effective November 15, 2004, and in
connection therewith the Company and Executive desire to make certain technical
changes to the Employment Agreement to assure it fully reflects the intent of
the parties under these circumstances;

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual terms and conditions set forth
herein, the Company and Executive agree as follows:

 

1.             Amendments.   The following provisions of the Employment
Agreement are hereby amended as follows:

 

(a)           At the end of the first sentence in
Section 4.5(a), clause (ii) shall read “(ii) if the Executive’s Date of
Termination is after the first anniversary of the Closing Date but prior to the
third anniversary of the Closing Date, the bonus payment to Executive shall be
the arithmetic average of the annual bonus payments made to Executive for the
fiscal year(s) in which Executive was employed by the Company.”, and the words “as
President and Chief Operating Officer” shall be deleted from such clause.

 

(b)           At
the end of the first sentence in Section 4.5(b), clause (ii) shall read “(ii)
if the Executive’s Date of Termination is after the first anniversary of the
Closing Date but prior to the third anniversary of the Closing Date, the bonus
payment to Executive in connection with the severance payment shall be the
arithmetic average of the annual bonus payments made to Executive for the
fiscal year(s) in which Executive was employed by the Company.”, and the words “as
President and Chief Operating Officer” shall be deleted from such clause.

 

2.             Headings.  The headings of the articles and sections of
this Acknowledgment are inserted for convenience only and shall not be deemed a
part of or affect the construction or interpretation of any provision of this
Amendment.

 

 

3.             Modifications.  Except as modified hereby, the Employment
Agreement is in all other respects hereby ratified and confirmed.

 

4.             Force and Effect.  This Amendment shall be effective from the
date hereof.

 

IN WITNESS HEREOF,
the parties have executed this Amendment effective as of the date first set
forth above.

 

 

	
  PAUL F. MCCONNELL

  	
   

  	
  CURATIVE HEALTH SERVICES,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Paul F.
  McConnell

  	
   

  	
   

  	
  By

  	
  /s/ Thomas
  Axmacher 

  
	
  Executive

  	
   

  	
   

  	
  Its

  	
  Chief Financial Officer

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