Document:

Unassociated Document

    Exhibit
10.2

    

    

    EXECUTIVE
EMPLOYMENT AGREEMENT

     

    BETWEEN:

    

    GRAN TIERRA ENERGY INC., an
Alberta corporation (“GTEI”) and Gran
Tierra Energy Inc., a Nevada corporation (“Gran Tierra”)

     

    (GTEI and
Gran Tierra are collectively referred to herein as, the “Company”)

     

    - and
-

     

    SHANE P. O’LEARY, an
individual ordinarily resident in the City of Calgary in the Province of
Alberta

     

    (the
“Executive”)

     

    (collectively
referred to as the “Parties”)

     

    RECITALS:

     

    
      
        
          	
                  A.

                	
                  The
      Executive has specialized knowledge and valuable skills and experience
      which are critical to the management and success of the
      business.

                

        

      

    

     

    
      	
              B.

            	
              The
      Company wishes to secure the services of the Executive in the role of
      Chief Operating Officer of the
business.

            

    

    
    

    

    THEREFORE, the Parties agree
as follows:

     

    ARTICLE
1

    DUTIES
AND RESPONSIBILITIES

     

    1.1 Position

     

    The
Company confirms the appointment of the Executive to the position of Chief
Operating Officer. The Executive will undertake those duties and
responsibilities set out in Schedule “A” to this Agreement as well as those
duties reasonably assigned to the Executive by the Board of Directors of the
Company (the “Board”).
The Executive will report to the President and Chief Executive Officer. The
parties agree that the relationship between the Company and the Executive
created by this Agreement is that of employer and employee.

     

    1.2 Other Engagements

     

    The
Executive shall not engage in any other business, profession or occupation which
would conflict with the performance of his duties and responsibilities under
this Agreement, either directly or indirectly, including accepting appointments
to the boards of other companies without the prior written consent of the
Board.

    

    1.3 Reassignment

     

    The
Company shall not reassign the Executive to another position within the Company
itself, or to a position within a subsidiary, affiliated or related corporate
entity (“Member Company”
or “Member Companies”)
or alter the duties, responsibilities, title, or reporting lines of the
Executive or change the location of the Executive’s employment unless the
Executive agrees to such reassignment or alteration.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.4 Travel

     

    The
Executive shall be employed at the Company’s location in Calgary, Alberta. The
Executive shall be available for such business related travel as may be required
for the purposes of carrying out the Executive’s duties and responsibilities.
The Executive shall be entitled to business class tickets for domestic or
international flights with a duration of more than 1 hour. The Executive will be
entitled to choose suitable accommodations when traveling on Company
business.

     

    ARTICLE
2

    TERM
OF EMPLOYMENT

     

    The
Executive’s employment with the Company is for no specified duration and
constitutes at-will employment.  The Executive’s employment may be
terminated at any time by either of the Parties, subject to the provisions of
Article 9.

     

    ARTICLE
3

    BASE
SALARY

     

    The
Executive will be paid an annual salary in an amount determined by the Board,
subject to applicable statutory deductions (the “Base Salary”). The Executive’s
Base Salary will be payable in accordance with Company practices and procedures
as they may exist from time to time. Base Salary will be reviewed and may be
increased on an annual basis by the Board, with input from the
Executive.

     

    ARTICLE
4

    BONUS

     

    4.1 Bonus Eligibility

     

    The
Executive shall be eligible to receive an annual bonus payment in addition to
Base Salary and other compensation for each year of the Executive’s employment
(the “Bonus”) as
determined by the Board from time to time.

     

    4.2 Bonus Payment

     

    The Bonus
shall be payable within sixty (60) days of the end of the fiscal year, and will
be based upon the Executive’s performance during the preceding
year.

     

    ARTICLE
5

    BENEFITS

     

    The
Executive shall be entitled to participate in and to receive all rights and
benefits under any life insurance, disability, medical, dental, health and
accident plans maintained by the Company for its employees and for its executive
officers specifically. The Company will continue to pay the Executive’s Base
Salary in the event the Executive becomes disabled until such time as the
Executive begins to receive long-term disability insurance
benefits.

     

    ARTICLE
6

    VACATION

     

    The
Executive will be entitled to five weeks vacation per year. Payment of all
vacation pay will be at Base Salary. The Executive will arrange vacation time to
suit the essential business needs of the Company. Unused vacation entitlement
will be carried over into the following calendar year to a maximum entitlement
of eight weeks in any one year. On leaving the employment of the Company for
whatever reason, the Company will compensate the Executive for any accrued but
unused vacation entitlement based upon the Executive’s then current Base
Salary.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    ARTICLE
7

    STOCK
OPTIONS

     

    The
Company will provide the Executive with the right to participate in stock option
plans and/or incentive award plans approved by the Board.

     

    ARTICLE
8

    PERQUISITES
AND EXPENSES

     

    The
Company recognizes that the Executive will incur expenses in the performance of
the Executive’s duties. The Company shall reimburse the Executive for any
reasonable out of pocket expenses incurred in the course of
employment.

     

    ARTICLE
9

    TERMINATION
OF EMPLOYMENT

     

    9.1 Termination Without
Notice

     

    This
Agreement and the Executive’s employment with the Company may be terminated,
without the Company being obligated to provide the Executive with advance notice
of termination or pay in lieu of such notice, whether under contract, statute,
common law or otherwise, in the following circumstances:

     

    
      	
            	
              (a) 

            	
              Voluntary
      Resignation

            

    

     

    In the
event the Executive voluntarily resigns, except where the Executive resigns for
Good Reason as provided for in this Agreement, the Executive will give a minimum
of ninety (90) days’ advance written notice to the Company. The Executive will
not be entitled to receive any further compensation or benefits whatsoever other
than those which have accrued up to the Executive’s last day of active service
with the Company. The Company may, at its discretion, waive in whole or in part
such notice with payment in lieu to the Executive;

      

    
      	
            	
              (b) 

            	
              Cause

            

    

     

    "Cause"
is defined as any of the following:

    

    
      	
            	
              (a)

            	
              conviction
      of, or plea of nolo contendere to, a
felony;

            

    

    

    
      	
            	
              (b)

            	
              participation
      in a fraud against the Company;

            

    

    

    
      	
            	
              (c)

            	
              participation
      in an act of dishonesty against the Company intended to result in your
      personal enrichment;

            

    

    

    
      	
            	
              (d)

            	
              willful
      material breach of the Company's written
  policies;

            

    

    

    
      	
            	
              (e)

            	
              intentional
      significant damage to the Company's property by
  you;

            

    

    

    
      	
            	
              (f)

            	
              material
      breach of this Agreement; or

            

    

    

    
      	
            	
              (g)

            	
              conduct
      by you that, in the good faith and reasonable determination of the Board,
      demonstrates gross unfitness to serve provided that in such event, the
      Company shall provide notice to you describing the nature of the gross
      unfitness and you shall thereafter have ten (10) days to cure such gross
      unfitness if such gross unfitness is capable of being
    cured.

            

    

    

    The
Company may not terminate your employment for Cause unless and until you receive
a copy of a resolution duly adopted by the affirmative vote of at least a
majority of the Board of Directors of the Company ("Board") finding that in the
good faith opinion of the Board, that "Cause" exists and specifying the
particulars thereof in reasonable detail.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
      9.2 Termination by the Company without
Cause

    

     

    The
Company may terminate the Executive’s employment without Cause at any time by
providing the Executive with a separation package (the “Separation Package ”) equal to
one and one-half years’ Total Cash Compensation.

    

    “Total
Cash Compensation” is defined as the annualized amount of Base Salary plus Bonus
Payment for the prior 18-month period.

     

    The
Separation Package shall be payable in a lump sum within thirty (30) days of
termination.

     

    9.3 Termination by the Executive for Good
Reason.

    

    Should
the Executive terminate his employment for Good Reason, as hereinafter defined,
he shall receive the Separation Package set out in section
9.2.  Failure of the Executive to terminate his employment on the
occurrence of any event which would constitute Good Reason shall not constitute
waiver of his right under this section 9.3.  Notwithstanding the
foregoing, the Executive may terminate his employment for Good Reason so long as
the Executive tenders his resignation to the Company within thirty (30) days
after the occurrence of the event that forms the basis for the resignation for
Good Reason; provided, however, that the Executive must provide written notice
to the Company describing the nature of the event that the Executive believes
forms the basis for the resignation for Good Reason, and the Company shall
thereafter have ten (10) days to cure such event.

    

    “Good
Reason” is defined as the occurrence of any of the following without the
Executive’s express written consent:

    

    
      	
               
      

            	
              (a)

            	
              an
      adverse change in the Executive’s position, titles, duties or
      responsibilities (including new, additional or changed formal or informal
      reporting responsibilities) or any failure to re-elect or re-appoint him
      to any such positions, titles, duties or offices, except in connection
      with the termination of his employment for
  Cause;

            

    

    

    
      	
               
      

            	
              (b)

            	
              a
      reduction by the Company of the Executive’s Base Salary except to the
      extent that the annual base salaries of all other executive officers of
      the Company are similarly reduced or any change in the basis upon which
      the Executive’s annual compensation is determined or paid if the change is
      or will be adverse to the Executive except that an award of annual
      performance bonuses by the Company’s Compensation Committee (and approved
      by the Board of Directors) are discretionary and in no instance shall be
      considered adverse to Executive if such performance bonus is reduced from
      a prior year or if an annual performance bonus is not
  paid;

            

    

    

    
      	
               
      

            	
              (c)

            	
              a
      Change in Control (as defined below) of the Company occurs;
    or

            

    

    

    
      	
               
      

            	
              (d)

            	
              any
      breach by the Company of any material provision of this
      Agreement.

            

    

    

    A “Change
in Control” is defined as:

    

    
      	
            	
              (a)

            	
              a
      dissolution, liquidation or sale of all or substantially all of the assets
      of the Company;

            

    

    

    
      
        	
              	
                (b)

              	
                a
      merger or consolidation in which the Company is not the surviving
      corporation;

              

      

    

    

    
      	
            	
              (c)

            	
              a
      reverse merger in which the Company is the surviving corporation but the
      shares of the Company’s common stock outstanding immediately preceding the
      merger are converted by virtue of the merger into other property, whether
      in the form of securities, cash or otherwise;
or

            

    

    

    
      	
            	
              (d)

            	
              the
      acquisition by any person, entity or group within the meaning of Section
      13(d) or 14(d) of the Exchange Act, or any comparable successor provisions
      (excluding any employee benefit plan, or related trust, sponsored or
      maintained by the Company or any affiliate of the Company) of the
      beneficial ownership (within the meaning of Rule 13d-3 promulgated under
      the Exchange Act, or comparable successor rule) of securities of the
      Company representing at least fifty percent (50%) of the combined voting
      power entitled to vote in the election of
  directors.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    ARTICLE
10

    DIRECTORS/OFFICERS
LIABILITY

     

    10.1 Indemnity

    

    Gran
Tierra shall provide to the Executive indemnification in accordance with the
Indemnification Agreement entered into between Gran Tierra and the
Executive.

     

    10.2 Insurance

    

    
      
        	
              	
                (a)

              	
                Gran
      Tierra shall purchase and maintain, throughout the period during which the
      Executive acts as a director or officer of Gran Tierra or a Member Company
      and for a period of two years after the date that the Executive ceases to
      act as a director or officer of Gran Tierra or a Member Company,
      directors’ and officers’ liability insurance for the benefit of the
      Executive and the Executive’s heirs, executors, administrators and other
      legal representatives, such that the Executive’s insurance coverage is, at
      all times, at least equal to or better than any insurance coverage Gran
      Tierra purchases and maintains for the benefit of its then current
      directors and officers, from time to
time.

              

      

    

    

    
      
        	
              	
                (b)

              	
                If
      for any reason whatsoever, any directors’ and officers’ liability insurer
      asserts that the Executive or the Executive’s heirs, executors,
      administrators or other legal representatives are subject to a deductible
      under any existing or future directors’ and officers’ liability insurance
      purchased and maintained by Gran Tierra for the benefit of the Executive
      and the Executive’s heirs, executors, administrators and other legal
      representatives, Gran Tierra shall pay the deductible for and on behalf of
      the Executive or the Executive’s heirs, executors, administrators or other
      legal representatives, as the case may
be.

              

      

    

     

    10.3 Survival

     

    The
provisions of sections 10.1 and 10.2 of this Agreement shall survive the
termination of this Agreement or the employment of the Executive with Gran
Tierra and such provisions shall continue in full force and effect in accordance
with such Indemnification Agreement and the provisions of this Agreement for the
benefit of the Executive.

     

    ARTICLE
11

    NON-COMPETITION
AND CONFIDENTIALITY

     

    11.1 Non-Competition

     

    The
Executive recognizes and understands that in performing the duties and
responsibilities of his employment as outlined in this Agreement, he will be a
key employee of the Company and will occupy a position of high fiduciary trust
and confidence, pursuant to which he has developed and will develop and acquire
wide experience and knowledge with respect to all aspects of the services and
businesses carried on by Gran Tierra and its Member Companies and the manner in
which such businesses are conducted. It is the expressed intent and agreement of
the Executive and of the Company that such knowledge and experience shall be
used solely and exclusively in the furtherance of the business interests of Gran
Tierra and its Member Companies and not in any manner detrimental to them. The
Executive therefore agrees that so long as he is employed by the Company
pursuant to this Agreement he shall not engage in any practice or business in
competition with the business of Gran Tierra or any of its Member
Companies.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    11.2 Confidentiality

     

    The
Executive further recognizes and understands that in the performance of his
employment duties and responsibilities as outlined in this Agreement, he will be
a key employee of the Company and will become knowledgeable, aware and possessed
of all confidential and proprietary information, know-how, data, strategic
studies, techniques, knowledge and other confidential information of every kind
or character relating to or connected with the business or corporate affairs and
operations of Gran Tierra and its Member Companies and includes, without
limitation, geophysical studies and data, market data, engineering information,
shareholder data, client lists, compensation rates and methods and personnel
information (collectively “Confidential Information”)
concerning the business of Gran Tierra and its Member Companies. The Executive
therefore agrees that, except with the consent of the Board, he will not
disclose such Confidential Information to any unauthorized persons so long as he
is employed by the Company pursuant to this Agreement and for a period of 24
months thereafter; provided that the foregoing shall not apply to any
Confidential Information which is or becomes known to the public or to the
competitors of Gran Tierra or its Member Companies other than by a breach of
this Agreement.

     

    11.3 Following Termination of
Agreement

     

    Subject
to this provision and without otherwise restricting the fiduciary obligations
imposed upon, or otherwise applicable to the Executive as a result of the
Executive having been a senior officer and key employee of the Company, the
Executive shall not be prohibited from obtaining employment with or otherwise
forming or participating in a business competitive to the business of the
Company after termination of this Agreement and the Executive’s employment with
the Company.

     

    ARTICLE
12

    CHANGES
TO AGREEMENT

     

    Any
modifications or amendments to this Agreement must be in writing and signed by
all Parties or else they shall have no force and
effect.  Notwithstanding the foregoing, the Company may assign this
agreement to a Member Company, without the consent of the
Executive.

     

    ARTICLE
13

    ENUREMENT

     

    This
Agreement shall enure to the benefit of and be binding upon the Parties and
their respective successors and assigns, including without limitation, the
Executive’s heirs, executors, administrators and personal
representatives.

      

    ARTICLE
14

    GOVERNING
LAW

     

    This
Agreement shall be construed in accordance with the laws of the Province of
Alberta and the laws of Canada applicable therein.

     

    ARTICLE
15

    NOTICES

     

    15.1 Notice to
Executive

     

    Any
notice required or permitted to be given to the Executive shall be deemed to
have been received if delivered personally to the Executive or sent by courier
to the Executive’s home address last known to the Company.

     

    15.2 Notice to Company

     

    Any
notice required or permitted to be given to the Company shall be deemed to have
been received if delivered personally to, sent by courier, or sent by facsimile
to:

     

    Gran
Tierra Energy Inc.

    300,
611-10th Avenue
S.W.

    Calgary,
Alberta, Canada, T2R 0B2

    Fax:
(403) 265-3242

    Attn:  Chief
Executive Officer

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    ARTICLE
16

    WITHHOLDING

     

    All
payments made by the Company to the Executive or for the benefit of the
Executive shall be less applicable withholdings and deductions.

     

    ARTICLE
17

    INDEPENDENT
LEGAL ADVICE

     

    The
Executive acknowledges that the Executive has been advised to obtain independent
legal advice with respect to entering into this Agreement, that he has obtained
such independent legal advice or has expressly deemed not to seek such advice,
and that the Executive is entering into this Agreement with full knowledge of
the contents hereof, of the Executive’s own free will and with full capacity and
authority to do so.

    

     

    

    (remainder
of page intentionally left blank)

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    IN WITNESS OF WHICH the
Parties have duly executed this Agreement as of the date set forth below, with
an effective date as of January 26, 2009.

     

    
      	GRAN TIERRA ENERGY INC., an
      Alberta corporation	 	GRAN
      TIERRA ENERGY INC., a Nevada corporation
	 	 	 
	 	 
      	 	 	 
      
	By:	
              /s/Dana Coffield                                              

            	 	By:	
              /s/Dana Coffield                                                            

            
	 	
                     Name:
      Dana Coffield

            	 	 	
                    
      Name: Dana Coffield

            
	 	
                     Title:  
      President and CEO

            	 	 	
                    
      Title:   President and CEO

            
	Date:	
              January 26, 2009                                       

            	 	Date:	
              January 26, 2009                                    

            
	 	 
      	 	 	 
      
	 	 
      	 	

              EXECUTIVE

            
	 	 
      	 	 	 
      
	 	 
      	 	 	 
      
	 	 
      	 	By:	
               /s/
      Shane P. O’Leary                                      

            
	 	 
      	 	 	
                    
      Shane P. O’Leary

            
	 	 	 	 	 
	 	 
      	 	Date: 	
              January 26, 2009                                                       

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	

              SIGNED,
      SEALED & DELIVERED

              In
      the presence of:

            	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
               Witness

            	 	 	 

    

     

    
      
        
        

      

      
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    SCHEDULE
A

     

    Duties
& Responsibilities

     

    ·     Execute
the goals, policies and objectives established by the Chief Executive Officer
and the Board of Directors.  Assist in developing and coordinating all
major activities involved in achieving business objectives, including business
development.

    

    ·     Formulate
operating strategies between and within Business Units to align with the overall
strategic direction of Gran Tierra Energy.  Responsible for developing
operating policies and implementing business strategies.  Oversee the
planning, direction and coordination of all activities related to operations
including exploration, development, production, processing and
transportation.

     

    
      
        
        

      

      
        9EMPLOYMENT
AGREEMENT

     

     

    THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is entered into this first day of
January 2009, by and between MedaSorb Technologies Corporation and its wholly
owned subsidiary,  CytoSorbents Inc., (collectively, the “Company”),
and David Lamadrid (“Employee”).

    

    The
Company wishes to employ Employee as Chief Financial Officer upon the terms and
conditions set forth in this Agreement and Employee is willing to accept
employment subject to the terms and conditions set forth
below.  Accordingly, the parties, intending to be legally bound, agree
as follows:

    

    1.           Employment and
Term

    

    1.1           Employment. 
Subject to the terms and conditions hereof, the Company hereby employs Employee
during the term of employment set forth in Section 1.2 to serve as Chief
Financial Officer of the Company and perform such services and duties as are
normally and customarily associated with such position as well as such other
associated duties as the Chief Executive Officer (“CEO”) shall reasonably
determine.  Employee hereby accepts such employment and agrees to
devote sufficient time, attention and energies during regular business hours to
effectively perform his duties and obligations hereunder, devoting five full
business days each week to the Company’s business, with four days at the
Company’s office, and the remaining one day at his discretion, provided he
remains available by telephone, email or other form of
communication.

    

    1.2           Term.  The term
of employment of Employee under this Agreement shall commence January 1, 2009
and expiring on December 31, 2009 (the “Term”) subject to the provisions for
early termination set forth herein and subject to renewal based on approval by
the Board of Directors (“BOD”).

    

    2.           Compensation.  In
consideration of the services to be rendered hereunder, the Company
hereby agrees to pay Employee an initial annual base compensation of $175,000
payable in equal semi-monthly installments in accordance with the usual practice
of the Company which base compensation shall be subject to semi-annual
review  by the Compensation Committee.  Employee stock
options will be adjusted on the same basis as all other shareholders to account
for any stock split, stock dividend, combination or
recapitalization.

    

    3.           Benefits.

    

    3.1           Participation in
Plans.  During the term hereof, Employee shall be entitled to
participate on the same terms as afforded other executive officers in any group
insurance, hospitalization, medical, dental, health and accident, disability or
similar plan or program of the Company now existing or established hereafter to
the extent that he is eligible under the general provisions thereof; provided
that in no case shall the benefits be reduced or less than that granted, awarded
or provided to Employee on the date hereof.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.2           Reasonable Business
Expenses.  Employee shall be allowed reimbursement for
reasonable business expenses in connection with the performance of his duties
hereunder upon presentation by Employee of the details of, vouchers for, such
expenses, including tourist class commercial air travel, and Employee shall be
furnished reasonable office space, assistance and facilities.

    

    3.3           Vacation.  Employee
shall be entitled to a vacation (without deduction of salary or other
compensation) for the period as is in conformity with the Company’s policy
regarding vacations for management employees (but in no event less than three
weeks per year).

    

    3.4           Bonuses.  Employee
may receive such discretionary bonuses as the BOD, in its sole discretion and
from time to time, deems appropriate.

    

    3.5           Travel
Expenses.  Employee shall be allowed reimbursement for mileage
and toll expenses incurred while commuting to and from New York/ New Jersey and
MedaSorb facilities, not to exceed $18,000 per year.

    

    

    Early Termination of
Employment

    

    4.1           Termination for Justifiable
Cause.  In addition to termination pursuant to Section 1.2, the
Company, by written notice to Employee authorized by the BOD may terminate
Employee’s employment for “justifiable cause”, which shall mean any of the
following events: (a) adjudication by a court of competent jurisdiction that
Employee has committed an act of fraud or dishonesty resulting or intended to
result, directly or indirectly, in personal enrichment at the expense of the
Company; (b) a conviction of a felony (other than a motor vehicle related
matter) involving moral turpitude; (c) repeated failure or refusal by Employee
to follow written policies and directions reasonably established by the BOD that
go uncorrected for a period of thirty (30) consecutive days after written notice
has been provided to Employee; or (d) persistent willful failure by Employee to
fulfill his duties hereunder that goes uncorrected for a period of thirty (30)
consecutive days after written notice has been provided Employee. In the event
of 4.1 (c) and 4.1 (d), Employee will receive 15 calendar days of notice, after
which his employment will be terminated.

    

    4.2           In
the event that the BOD reasonably determines that the Employee has committed a
felony (other than a motor vehicle related matter), a material act of fraud or
other willful tort against the Company, it shall have the right to suspend
Employee from his position and duties hereunder without compensation until such
time as either the action is dropped or no longer pursued or a final
adjudication of Employee’s actions is made by a court (whether civil or criminal
as appropriate) of competent jurisdiction.  Should said adjudication
find Employee innocent (or not at fault) or the action is dropped or no longer
pursued, the Company shall promptly pay him all unpaid back salary together with
interest on said amount (at the average consumer loan rate published by
Citibank, N.A., during the suspension period) and, if said final adjudication is
rendered or action dropped or no longer pursued within 12 months of Employee’s
suspension, he may, at his option, be reinstated to his position and this
Agreement continued as if never interrupted.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    4.3          
Permanent Disability
of Employee.  The Company shall have the right to terminate
Employee’s employment hereunder if the BOD shall in good faith and on the basis
of reasonable medical evidence determine that Employee, by reason of physical or
mental disability, has been unable to perform the services required of him
hereunder for more than 120 consecutive days or an aggregate of 180 calendar
days, during any 12-month period.  Such termination shall be effective
as of the last day of the month following the month in which the Company shall
have given notice to Employee of its intention to terminate pursuant to this
paragraph.  Company paid Disability Benefits will be activated 90 days
after termination.

    

    4.4           Compensation Upon Early
Termination.

    

    (a)           In
the event of termination of this Agreement for “justifiable cause” as described
in Section 4.1, or pursuant to Section 1.2 hereof, Employee shall be entitled to
the compensation earned by him before the effective date of termination, as
provided for in this Agreement, computed pro rata up to and including that date,
in lieu of salary and other benefits under this Agreement.

    

    (b)           If
prior to the expiration of the term of this Agreement Employee dies, the Company
shall continue Employee’s compensation and coverage of Employee’s direct
dependents (if any and if they are eligible) under all plans or programs of the
types listed in Section 3.1 for a period of 120 days, provided that no such
benefits shall continue past the end of the term of this Agreement.

    

    (c)           Upon
a Change of Control or upon Employee’s termination for “Good Reason” as defined
below, Employee shall then be entitled to receive, in lieu of salary and other
benefits under this Agreement, (i) an amount equal to two weeks of his
then-current base salary for every year Employee was employed by the Company,
payable in equal semi-monthly installments over the next three (3) months
following termination in arrears without interest, (ii) continued coverage under
all plans or programs of the types listed in Section 3.1 until the sooner of 1
year or one (1) month after Employee becomes otherwise employed and eligible for
other comparable coverage, and (iii) all other benefits provided to Employee
under this Agreement for a period of thirty (30) days.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    4.5           In
the event Employee is terminated for any reason other than for “justifiable
cause” as defined in Section 4.1 hereof, death, disability or voluntary
termination (unless the Company and Employee mutually agree to such voluntary
termination), then all unexercised options granted to Employee under the
Company’s option plan shall be deemed fully vested and exercisable immediately
upon Employee’s termination.  The foregoing benefit shall be in
addition to, and not in lieu of, any similar benefit that may be contained in
any other agreement between the Company and Employee.

    

    4.6           (a)
Upon the occurrence of a Change of Control of the Company or Employee terminates
for Good Reason pursuant to Section 4.6(d), all options granted to Employee
under the Company option plan shall be automatically fully vested and
exercisable immediately upon a Change of Control.

    

    (b) For purposes of this Agreement,
“Change of Control” shall be deemed to have occurred if, during the term of this
agreement:

    

    (i)           the
beneficial ownership of at least 50% of the Company’s voting securities or all
or substantially all of the assets of the Company shall have been acquired,
directly or indirectly by a single person or a group of affiliated persons,
other than the Employee or a group in which the Employee is a member, in any
transaction or series of transactions or

    

    (ii)           as
the result of or in connection with any cash tender offer, exchange offer, sale
of assets, merger, consolidation or other business combination of the Company
with another corporation or entity the new Board of Directors is comprised of a
majority of Directors chosen or elected by the shareholders of the new/combined
entity who were not shareholders of the Company before such cash tender offer,
exchange offer, sale of assets, merger, consolidation or other business
combination of the Company with another corporation or entity

    

    (c)           For
purposes of this Agreement, the date of Change of Control shall mean the earlier
to occur of:

    

    (i)           the
first date on which a single person or group of affiliated persons acquires the
beneficial ownership of 50% or more of the Company’s voting securities or all or
substantially all of the Company’s assets in any transaction or series of
transactions; or

    

    (ii)           the
date on which a cash tender offer, exchange offer, sale of assets, merger,
consolidation other business combination resulting in the change in the Board of
Directors contemplated by Section 4.6 hereof is consummated.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (d) For purposes of this
Agreement, the term “Good Reason” shall mean the assignment to Employee of any
duties that are not in the same corporate capacity or area of operations or are
not of the same general nature as Employee’s duties with Company without the
Employee’s express written consent.

    

    4.7           In
the event that Employee is terminated prior to the end of this Agreement, and
such early termination is not due to Section 4.1(a) and 4.1(b) above, employee
will receive a severance of (2) two weeks salary for each year employed at
Company upon termination of employment.

    

    

    5.           Confidentiality and
Non-Competition.

    

    5.1           (i)
Confidentiality.  During
the term of employment under this Agreement, Employee will have access to and
become acquainted with various confidential information including without
limitation, trade secrets, customer relationships, formulas, devices,
inventions, processes, know-how, financial information and other compilations of
information, records, and specifications, which are owned by the
Company.  Employee shall not disclose any of the Company’s
confidential information, directly or indirectly, or use them in any way, either
during the term of this Agreement or at any time thereafter, except as required
in the course of his employment for the Company.  All files, records,
documents, drawings, specifications, equipment and similar items relating to the
business of the Company, whether prepared by Employee or otherwise coming into
his possession, shall remain the exclusive property of the Company and shall not
be removed from the premises of the Company under any circumstances whatsoever
without the prior written consent of the Company, and if removed shall be
immediately returned to the Company upon any termination of his employment and
no copies thereof shall be kept by Employee, provided, however, that Employee
shall be entitled to retain documents reasonably related to his interest as a
shareholder.

    

    (ii)  Inventions and Shop
Right. Every invention, discovery or improvement made or conceived by
Employee related to the business of the Company during his employment by the
Company whenever and wherever made or conceived, and whether or not during
business hours, of any product, article, appliance, tool, device, formula,
process, machinery or pattern similar to, or which constitutes an improvement,
on those heretofore, now or at any time during this employment, manufactured or
used by the Company in connection with the manufacture or process of any product
heretofore or now or hereafter manufactured by the Company, or of any product
which shall or could reasonably be manufactured in the reasonable expansion of
the Company’s business, shall be and continue remain the Company’s exclusive
property, without any added compensation or any reimbursement for expenses to
Employee, and upon the conception of any and every such invention, discovery or
improvement and without waiting to perfect or complete it, Employee promises and
agrees that he will immediately disclose it to the Company and to no one else
and thenceforth will treat it as the property and secret of the
Company.  Employee will also execute any instruments requested from
time to time by the Company to vest in it complete title and ownership to such
invention, discovery or improvement and will, at the request of the Company, do
such acts and execute such instruments as the Company may require but at the
Company’s expense to obtain Letters Patent in the United States and foreign
countries, for such invention, discovery or improvement and for the purpose of
vesting title thereto in the Company, all without any reimbursement for
expenses  or otherwise and without any additional compensation of any
kind to Employee.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    5.2           Non-Competition.  In
the event of a termination of this Agreement for any reason, Employee shall be
prohibited for a period of one (1) year from the effective date of this
separation from engaging in any business in competition with that of the Company
in those states within the United States and those countries outside the United
States in which the Company at the time of Employee’s separation has conducted
business or where Company has written a reasonable plan to conduct business in
the next 12 months or directly or indirectly advising or consulting to or
otherwise performing services for or providing assistance to any person, firm,
corporation, or other entity engaged in such competitive business, provided,
however, nothing herein contained shall be construed as (a) preventing Employee
from investing his personal assets in any businesses which do not compete
directly or indirectly with the Company, provided such investment or investments
do not require any services on his part in the operation of the affairs of the
entity in which such investment is made and in which his participation is solely
that of an investor, (b) preventing Employee from purchasing securities in any
corporation whose securities in any corporation whose securities are regularly
traded, if such purchases shall not result in his owning beneficially at any
time 3% or more of equity securities of any corporation engaged in a business
which is competitive, directly or indirectly, to that of the Company, (c)
preventing Employee from engaging in any activities, if he receives the prior
authorization of the Directors.  Notwithstanding anything herein to
the contrary this Section 5.2 shall not be effective in the event Employee has
been discharged for any reason other than “justifiable cause” or voluntarily
leaves the employment of the Company with the mutual agreement of the
Company.

    

    5.3           Subsequent
to the termination of this Agreement, Employee will not for a period of one (1)
year materially interfere with or disrupt the Company’s business relationship
with its customers or suppliers or employ any person who was employed with the
Company at any time during the 6 months prior to Employee’s termination, or for
a period of three (3) years, directly or indirectly solicit any of the employees
to leave the employ of the Company.

    

    6.           Notices.  All
notices under this Agreement shall be in writing and shall be deemed effective
when delivered in person (in the Company’s case, to its CEO or Secretary) or
forty eight (48) hours after deposit thereof in the U.S. mail, postage prepaid,
addressed to Employee, at last known address as carried in the records of the
Company, or to the Company, at the corporate headquarters, to the attention of
the Secretary, or to such other address as the party to be notified may specify
by notice to the other party.

    

    7.           Assigns and
Successors.  The rights and obligations of the Company under
this Agreement shall inure to the benefit of and shall be binding upon the
successors and assigns of the Company and the rights and obligations of Employee
shall move to the benefit of and shall be binding on Employee and his legal
representatives or heirs.  This agreement constitutes a personal
service agreement and Employee’s obligations hereunder may not be transferred or
assigned by Employee.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    8.           Amendment Waiver.
This Agreement may be amended, and any right or claim hereunder waived, only by
a written instrument signed by both Employee and the Company, following
authorization by the BOD.  Nothing in this Agreement, express or
implied, is intended to confer upon any third person any rights or remedies
under or by reason of this Agreement.  No amendment or waiver of this
Agreement requires the consent of any individual, partnership, corporation or
other entity not a party of this Agreement.

    

    9.           Injunction.

    

    (a)  Should Employee at any
time violate or threaten to violate any of the provisions of this Agreement, the
Company shall be entitled to an injunction restraining Employee from doing or
continuing to do or performing any such acts and Employee hereby consents to the
issuance of such an injunction.

    

    (b)  In the event that a
proceeding is bought in equity to enforce the provisions of this paragraph,
Employee shall not urge as a defense that there is an adequate remedy at law,
nor shall the Company be prevented from seeking any other remedies which may be
available.

    

    (c)  The existence of a claim
or cause of action by the Company against Employee, or by Employee against the
Company, whether predicated upon this Agreement or otherwise, shall not
constitute a defense to the endorsement by the Company of the foregoing
restrictive covenants but shall be litigated separately.

    

    (d)  The provisions of this
Section 9 shall survive termination of this Agreement.

    

    10.           Governing Law and
Jurisdiction.  This Agreement in its interpretation and
application and enforcement shall be governed by the law of the State of New
Jersey without application of its conflict of laws provisions, and any legal
action commenced by either party seeking interpretation, application and/or
enforcement of this Agreement shall be brought only in the State of New Jersey
of federal court sitting in Princeton, NJ.

    

    11.           Prior
Agreements.  This Agreement supercedes and replaces any and all
prior agreements between the parties as to its subject matter.

    

    12.           Construction.  Paragraph
headings are for convenience only and shall not be considered a part of the
terms and provisions of this Agreement.

     

    13.           Effective
Date.  The effective date of this Agreement shall be January 1,
2009.

    

    
      
        
        

      

      
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    IN WITNESS WHEREOF, the parties have
executed this Agreement.

    

    
      
        
          
            
              
                
                  
                    
                      
                        	MedaSorb
      Technologies Corporation and	 
      	 
	 CytoSorbents
      Inc.	 	
                                EMPLOYEE

                              	 
	 
      	 
      	 	 
      	 
	
                                By:

                              	
                                    
      

                              	 	
                                   
      

                              	 
	 
      	
                                Phillip
      P. Chan, CEO

                              	 	 
      	 
	 
      	
                                MedaSorb
      Technologies Corporation

                              	 
      	 
	 
      	
                                And
      CytoSorbents, Inc.

                              	 	 
      	 

                      

                    

                  

                

              

            

          

        

      

    

    

    

    

    

    
      
        
        

      

      
        8

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