Document:

EX-10.01

CHANGE IN CONTROL AGREEMENT

This Change In Control Agreement is effective as of the 13th day of April
2012 (“Effective Date”) between Wright Express Corporation (“WEX”), a Delaware corporation
headquartered in South Portland, Maine and Steven Elder (the “Executive”).

WHEREAS, WEX employs the Executive as its Chief Financial Officer and desires to retain the
Executive who is amongst its key personnel and to eliminate any distraction or concerns of the
Executive in the event of a Change in Control.

NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

SECTION I

TERMINATION OF EMPLOYMENT IN 

THE EVENT OF A CHANGE IN CONTROL

A. If the Executive’s employment terminates due to either a Without Cause Termination or a
Constructive Discharge, in either case within the time period beginning 90 days before a Change in
Control (as defined herein) and ending 365 days after a Change in Control, then WEX will pay the
Executive (or his surviving spouse, estate or personal representative, as applicable) (i) a cash
payment equal to the sum of the Executive’s then current Base Salary plus his then current target
Incentive Compensation Award, multiplied by 200%, payable, at the Company’s option (but subject to
Section II hereof), in either one lump sum, equal installments not less frequently than once per
month over a twelve month period, or a combination of lump sum and equal installments not less
frequently than once per month over a twelve month period, and (ii) any and all Base Salary and
Incentive Compensation Awards earned but unpaid through the date of such termination and any
legitimate unreimbursed business expenses. In addition, upon such termination, those of the
Executive’s outstanding and unvested WEX stock options and unvested WEX restricted stock units held
by the Executive as of the date of termination will immediately become vested. In addition, WEX
shall pay to the Executive in a lump sum an amount equal to the present value of WEX’s share of the
cost of medical and dental insurance premiums for a twenty-four (24) month period, which amount
shall be paid in the next regularly scheduled payroll period immediately following the
effectiveness of the release required by Section I(C) hereof. Nothing contained herein is intended
to limit any of the Executive’s vested benefits under any WEX benefit plan or program, including
but not limited to rights with respect to stock options, restricted stock units or long term
incentive awards.

B. For purposes of this Agreement, the following terms have the following meanings:

(i) “Termination for Cause” means termination because of (i) the Executive’s willful failure
to substantially perform his duties as an employee of WEX or any subsidiary thereof (other than any
such failure resulting from incapacity due to physical or mental illness), (ii) any act of fraud,
embezzlement, gross misconduct, dishonesty or similar conduct, in each case against WEX or any
subsidiary thereof, (iii) the Executive’s conviction of or indictment for a felony or any crime
involving moral turpitude, (iv) the Executive’s gross negligence in the performance of his duties,
(v) the Executive’s knowing or negligent making of a false certification to WEX pertaining to its
financial statements, or (vi) the Executive’s knowing or grossly negligent violation of any
provision of Section III of this Agreement or any knowing violation of WEX’s Code of Business
Conduct and Ethics. WEX will provide the Executive a written notice that describes the
circumstances being relied on for the termination with respect to this paragraph. In the event that
WEX terminates the Executive’s employment without Cause but the Company later discovers evidence
not known at the time of termination that would have justified a Termination for Cause under this
paragraph, the Company may terminate the payment of all amounts to the Executive pursuant to
Section I, excluding any and all Base Salary and Incentive Compensation Awards earned but unpaid
through the date of such termination and any legitimate unreimbursed business expenses.

(ii) “Constructive Discharge” means the Executive resigns in response to: (i) any material
failure of WEX to fulfill its obligations under this Agreement (including without limitation any
material reduction of the Base Salary, as the same may be increased during the Period of
Employment), (ii) a material and adverse change to the Executive’s positions, duties and
responsibilities with or to WEX, (iii) the relocation of the Executive’s primary business office to
a location more than 50 miles from Portland, Maine or (iv) WEX’s failure to cause this Agreement to
be assumed by any successor to the business of WEX. The Executive will provide WEX a written notice
that describes the circumstances being relied on for the termination with respect to this paragraph
within sixty (60) days after the event giving rise to the notice. WEX will have sixty (60) days
after receipt of such notice to remedy the situation prior to the termination for Constructive
Discharge.

(iii) “Without Cause Termination” or “Terminated Without Cause” means termination of the
Executive’s employment by WEX other than due to death, disability, or Termination for Cause.

(iv) “Change in Control” means the happening of any of the following events:

(a) An acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (any of which,
a “Person”) resulting in such Person having beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 50% or more of either (i) the then-outstanding shares of
common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting
power of the then-outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); excluding, however, the
following: (A) Any acquisition directly from the Company, other than an acquisition by virtue of
the exercise of a conversion privilege unless the security being so converted was itself acquired
directly from the Company, (B) Any acquisition by the Company, (C) Any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by
the Company, or (D) Any acquisition pursuant to a transaction which complies with clauses (i), (ii)
and (iii) of Section I(B)(iv)(c);or

(b) A change in the composition of the board of directors of the Company (the “Board”) such
that the individuals who, as of the Effective Date, constitute the Board (such Board shall be
hereinafter referred to as the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board; provided, however, for purposes of this definition, that any individual who
becomes a member of the Board subsequent to the Effective Date, whose election, or nomination for
election by the Company’s stockholders, was approved by a vote of at least a majority of those
individuals who are members of the Board and who were also members of the Incumbent Board (or
deemed to be such, pursuant to this proviso) shall be considered as though such individual were a
member of the Incumbent Board; but, provided further, that any such individual whose initial
assumption of office occurs as a result of either an actual or threatened election contest (i.e., a
solicitation of the type that was, or would have been, subject to Rule 14a-12(c) of Regulation 14A
promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board shall not be so considered as a member of
the Incumbent Board; or

(c) Consummation of a reorganization, merger or consolidation or sale or other disposition of
all or substantially all of the assets of the Company or the acquisition of shares or assets of
another company (“Corporate Transaction”); excluding, however, such a Corporate Transaction
pursuant to which (i) all or substantially all of the individuals and entities who are the
beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company
Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly
or indirectly, more than 50% of, respectively, the outstanding shares of common stock (or equity
interests), and the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors (or equivalent governing body, if applicable), as the
case may be, of the entity resulting from such Corporate Transaction (including an entity which as
a result of such transaction owns the Company or all or substantially all of the Company’s assets
either directly or through one or more subsidiaries) in substantially the same proportions as their
ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common Stock
and Outstanding Company Voting Securities, as the case may be, (ii) no Person (other than the
Company, any employee benefit plan (or related trust) of the Company or such entity resulting from
such Corporate Transaction) will beneficially own, directly or indirectly, 50% or more of,
respectively, the outstanding shares of common stock (or equity interests) of the entity resulting
from such Corporate Transaction or the combined voting power of the outstanding voting securities
of such corporation entitled to vote generally in the election of directors (or equivalent
governing body, if applicable) except to the extent that such ownership existed prior to the
Corporate Transaction, and (iii) individuals who were members of the Incumbent Board will
constitute at least a majority of the members of the board of directors (or equivalent governing
body, if applicable) of the entity resulting from such Corporate Transaction; or

(d) The approval by the stockholders of the Company of a complete liquidation or dissolution
of the Company.

C. Conditions to Payment. All payments due to the Executive under this Section I
shall be made as soon as practicable in accordance with Section I; provided, however, that such
payments, shall be subject to, and contingent upon, the execution by the Executive (or his
beneficiary or estate) of a release of any and all claims against WEX and its affiliates in such
reasonable form and substance adopted by WEX. Such release shall not waive, release or limit (A)
any rights the Executive has, or may have, to indemnification and/or advancement of expenses (1)
under the Articles or Certificate of Incorporation, Bylaws, or other corporate governance documents
of WEX, to the extent arising out of (x) claims asserted other than by WEX or its affiliates or (y)
claims raised derivatively by a shareholder on behalf of WEX or its affiliates, or (2) under
applicable law, or (B) any coverage or rights to coverage the Executive may have under insurance
maintained by WEX relating to the Executive’s actions on behalf of WEX within the scope of and
during the course of his employment with WEX. The Company will provide Executive with a copy of
such release not later than 21 days (45 days if Executive’s termination is part of an exit
incentive or other employment termination program offered to a group or class of employees) before
Executive’s termination of employment. Executive shall deliver the executed release to the Company
not later than eight days following his date of termination. The payments due to the Executive
under this Section I shall be in lieu of any other severance benefits otherwise payable to the
Executive under any severance plan of WEX or its affiliates and/or any other agreement or
arrangement. Nothing herein shall be construed as limiting the Executive’s entitlement to any other
vested accrued benefits to which he (or his estate if applicable) is then entitled under WEX’s
applicable employee benefit plans, including without limitation any disability or life insurance
plan benefits which may become payable.

SECTION II

OTHER TERMS RELATING TO TERMINATION OF EMPLOYMENT 

PAYMENTS; REIMBURSEMENTS; SECTION 409A EXEMPTIONS: 

DELAYED PAYMENTS UNDER SECTION 409A

A. Time of Payment. Amounts payable under Section I following Executive’s termination
of employment, other than those expressly payable on a deferred basis that are subject to Section
409A of the Internal Revenue Code (“409A”), will be paid (i) to the maximum extent possible under
the Separation Pay Plan Exemption (as defined in Section II(D) hereof), with the amounts subject to
such Exemption being paid no later than the last day of Executive’s second taxable year following
Executive’s taxable year in which the termination occur and (ii) otherwise pursuant to and in
compliance with the Short-Term Deferral Exemption (as defined in Section II(C) hereof), with the
amounts subject to such Exemption being paid no later than March 15 of the calendar year following
the year of termination.

B. Reimbursements. Any reimbursements made or in-kind benefits provided under this
Agreement shall be subject to the following conditions:

(i) the amount of expenses eligible for reimbursement or in-kind benefits provided in any one
taxable year of Executive shall not affect the amount of expenses eligible for reimbursement or
in-kind benefits provided in any other taxable year of Executive;

(ii) the reimbursement of any expense shall be made no later than the last day of Executive’s
taxable year following Executive’s taxable year in which the expense was incurred (unless this
Agreement specifically provides for reimbursement by an earlier date);

(iii) the right to reimbursement of an expense or payment of an in-kind benefit shall not be
subject to liquidation or exchange for another benefit.

C. Short-Term Deferral Exemption. It is intended that payments made under this
Agreement due to Executive’s termination of employment that are not otherwise subject to 409A which
are paid on or before the 15th day of the third month following the end of Executive’s taxable year
in which his termination of employment occurs shall be exempt from compliance with 409A pursuant to
the exemption for short-term deferrals set forth in Section 1.409A-l(b)(4) of the Treasury
Regulations (“Regulations”).

D. Separation Pay Exemption. It is intended that payments made under this Agreement
due to Executive’s Without Cause Termination or Constructive Discharge that are not otherwise
subject to 409A which do not exceed two times the lesser of (a) the Executive’s annualized
compensation (determined in accordance with the Regulations) or (b) the maximum amount that may be
taken into account under Section 401(a)(17) of the Code ($245,000 for 2011) shall be exempt from
compliance with 409A pursuant to the exemption for separation pay set forth in Section
1.409A-l(b)(9) of the Regulations.

E. Six-Month Delay for Specified Employees. Anything in this Agreement to the contrary
notwithstanding, payments to be made under this Agreement upon termination of Executive’s
employment which are subject to 409A (“409A Payments”) shall be delayed for six months following
such termination of employment if Executive is a Specified Employee as defined below on the date of
termination of employment. Any 409A Payment due within such six-month period shall be delayed to
the end of such six-month period.

(i) The Company will adjust the 409A Payment to reflect the deferred payment date by
multiplying the payment or reimbursement by the product of the six-month CMT Treasury Bill
annualized yield rate as published by the U.S. Treasury for the date on which such payment or
reimbursement would have been made but for the delay multiplied by a fraction, the numerator of
which is the number of days by which such payment or reimbursement was delayed and the denominator
of which is 365.

(ii) The Company will make the adjusted 409A Payment at the beginning of the seventh month
following Executive’s termination of employment. Notwithstanding the foregoing, if calculation of
the amounts payable by any payment date specified in this Subsection E is not administratively
practicable due to events beyond the control of Executive (or Executive’s beneficiary or estate)
and for reasons that are commercially reasonable, payment will be made as soon as administratively
practicable in compliance with 409A and the Regulations thereunder. In the event of Executive’s
death during such six-month period, payment will be made in the payroll period next following the
payroll period in which Executive’s death occurs.

(iii) “Specified Employee”. For purposes of this Agreement, a “Specified Employee” shall mean
an employee of the Company who satisfies the requirements for being designated a “key employee”
under Section 416(i)(l)(A)(i), (ii) or (iii) of the Code without regard to Section 416(i)(5) of the
Code at any time during a calendar year, in which case such, employee shall be considered a
Specified Employee for the twelve-month period beginning on the first day of the fourth month
immediately following the end of such calendar year. Notwithstanding the foregoing, all employees
who are nonresident aliens during an entire calendar year are excluded for purposes of determining
which employees meet the requirements of Section 416(i)(l)(A)(i), (ii) or (iii) of the Code without
regard to Section 416(i)(5) of the Code for such calendar year. The term “nonresident alien” as
used herein shall have the meaning set forth in Regulations Section 1.409A- l(j). In the event of
any corporate spinoff or merger, the determination of which employees meet the requirements of
Section 416(i)(l)(A)(i), (ii) or (iii) of the Code without regard to Section 416(i)(5) of the Code
for any calendar year shall be determined in accordance with Regulations Section 1.409A-l(i)(6).

SECTION III

OTHER DUTIES OF THE EXECUTIVE 

DURING AND AFTER THE PERIOD OF EMPLOYMENT

A. Cooperation with Legal Claims. The Executive will, with reasonable notice during or
after the Period of Employment, furnish information as may be in his possession and reasonably
cooperate with WEX and its affiliates as may reasonably be requested in connection with any claims
or legal action in which WEX or any of its affiliates is or may become a party. The foregoing shall
not unreasonably interfere with the Executive’s duties to any successor employer and the Company
shall reimburse the Executive for any reasonable expenses incurred for providing such assistance.

B. Protection of Confidential Information.

(i) Acknowledgement. The Company and the Executive acknowledge that the services to be
performed by the Executive under this Agreement are unique and extraordinary and that, as a result
of the Executive’s employment, the Executive will be in a relationship of confidence and trust with
the Company and will come into possession of Confidential Information (as defined below) that is
(1) owned or controlled by the Company, (2) in the possession of the Company and belonging to third
parties or (3) conceived, originated, discovered or developed, in whole or in part, by the
Executive. “Confidential Information” means trade secrets and other confidential or proprietary
business, technical, personnel or financial information, whether or not the Executive’s work
product, in written, graphic, oral, electronic or other tangible or intangible forms, including
specifications, samples, records, data, computer programs, drawings, diagrams, models, customer
names, business or mailing addresses, ID’s or e-mail addresses, business or marketing plans,
studies, analyses, projections and reports, communications by or to attorneys (including
attorney-client privileged communications), memos and other materials prepared by attorneys or
under their direction (including attorney work product), and software systems and processes. Any
Confidential Information that is not readily available to the public shall be considered to be a
trade secret and confidential and proprietary, even if it is not specifically marked as such,
unless the Company advises the Executive otherwise in writing.

(ii) Nondisclosure. The Executive agrees that the Executive will keep the Confidential
Information in strictest confidence and trust, and will not, without the prior written consent of
the Company, directly or indirectly, use or disclose Confidential Information to any person, during
or after the Executive’s employment, except as may be necessary in the ordinary course of
performing the Executive’s duties under this Agreement. This Section III(B) shall apply
indefinitely, both during and after the Executive’s employment.

(iii) Surrender Upon Termination. The Executive agrees that, in the event of the
termination of the Executive’s employment for any reason, at any time, the Executive will
immediately deliver to the Company all property belonging to the Company, including documents and
materials of any nature pertaining to the Executive’s work with the Company, and will not take with
the Executive any documents or materials of any description, or any reproduction thereof of any
description, containing or pertaining to any Confidential Information. It is understood that the
Executive is free to use information that is in the public domain, but not as a result of a breach
of this Agreement.

C. Restrictions.

(i) During the Executive’s employment and for the Post Termination Period thereafter
(collectively, the “Restricted Period”), the Executive will not knowingly use his status with WEX
or any of its affiliates to obtain loans, goods or services from another organization on terms that
would not be available to him in the absence of his relationship to WEX or any of its affiliates.
The Post Termination Period means a period of two (2) years following the Executive’s termination
of employment, if, in connection with such termination, the Executive receives a severance under
Section I of this Agreement..

(ii) During the Restricted Period, the Executive will not make any statements or perform any
acts intended or reasonably calculated to advance the interest of any existing or prospective
Competing Enterprise or in any way to injure the interests of or disparage WEX or any of its
affiliates.

(iii) During the Restricted Period, the Executive, without prior express written approval by
the Chief Executive Officer of WEX, will not become employed by, render services to or directly or
indirectly (whether for compensation or otherwise) own or hold a proprietary interest in, manage,
operate, or control, or join or participate in the ownership, management, operation or control of,
or furnish any capital to or be connected in any manner with, any Competing Enterprise.

(iv) For purposes of this Section III, a “Competing Enterprise” means any entity, organization
or person engaged, or planning to become engaged, in substantially the same or similar business to
that being conducted or actively and specifically planned to be conducted within the Restricted
Period by WEX or its subsidiaries, owned or controlled. It includes, without limitation: (i) the
business of developing, managing, operating, marketing, processing, financing, or otherwise being
involved in providing any products or services for the benefit of or use by commercial vehicle or
aviation fleets through charge cards, credit cards, procurement cards or any other form of payment
services or electronic commerce; (ii) the sale, distribution or publication of petroleum product
pricing or management information or other products or services currently sold or contemplated to
be sold by WEX or any of its owned or controlled subsidiaries, and (iii) the business of
developing, managing, operating, marketing, processing, financing, or otherwise being involved in
providing commercial travel, entertainment, purchasing or payroll credit cards or payment services.
The restrictions in this Section shall not be construed to prevent the Executive from working for a
business entity that does not compete with WEX or its subsidiaries simply because the entity is
affiliated with a Competing Enterprise, so long as the entity is operationally separate and
distinct from the Competing Enterprise and the Executive’s job responsibilities at that entity are
unrelated to the Competing Enterprise. The Executive acknowledges that WEX’s and its subsidiaries’
businesses are conducted nationally and agrees that the provisions in this paragraph, shall operate
throughout the United States.

(v) During the Restricted Period, the Executive, without express prior written approval from
the Chief Executive Officer, will not solicit any then-current clients, customers or private label,
co-brand or similar strategic partners of WEX or any of its affiliates. In addition, during the
Restricted Period, the Executive, without express prior written approval from the Chief Executive
Officer, will not discuss with any employee of WEX or any of its affiliates information related to
the operation or potential operation of any Competing Enterprise.

(vi) During the Restricted Period, the Executive will not interfere with the employees or
affairs of WEX or any of its affiliates or solicit or induce any person who is an employee of WEX
or any of its affiliates to terminate any relationship such person may have with WEX or any of its
affiliates. In addition, neither the Executive nor any entity he controls or person he employs
shall, during such period, directly or indirectly engage, employ or compensate any employee of WEX
or any of its affiliates. The Executive hereby represents and warrants that the Executive has not
entered into any agreement, understanding or arrangement with any employee of WEX or any of its
affiliates pertaining to any business in which the Executive has participated or plans to
participate, or to the employment, engagement or compensation of any such employee.

(vii) For the purposes of this Agreement, “proprietary interest” means legal or equitable
ownership, whether through stock holding or otherwise, of an equity interest in a business, firm or
entity or ownership of more than 1% of any class of equity interest in a publicly-held company and
the term “affiliate” when used with respect to WEX will include without limitation all subsidiaries
of WEX.

D. The Executive hereby acknowledges that damages at law may be an insufficient remedy to WEX
if the Executive violates the terms of this Agreement and that WEX will be entitled, upon making
the requisite showing, to preliminary and/or permanent injunctive relief in any court of competent
jurisdiction to restrain the breach of or otherwise to specifically enforce any of the covenants
contained in this Section IX without the necessity of showing any actual damage or that monetary
damages would not provide an adequate remedy. Such right to an injunction will be in addition to,
and not in limitation of, any other rights or remedies WEX may have. Without limiting the
generality of the foregoing, neither party will oppose any motion the other party may make for any
expedited discovery or hearing in connection with any alleged breach of this Section III.

E. The Executive agrees that the restrictions contained in this Section III are an essential
element of the compensation the Executive is granted hereunder and but for the Executive’s
agreement to comply with such restrictions, WEX would not have entered into this Agreement.

F. This Section III will continue in full force in accordance with its terms notwithstanding
any termination of Executive’s employment.

SECTION IV

MITIGATION

The Executive will not be required to mitigate the amount of any payment provided for
hereunder by seeking other employment or otherwise, nor will the amount of any such payment be
reduced by any compensation earned by the Executive as the result of employment by another employer
after the date the Executive’s employment hereunder terminates or by offset against any amount
claimed to be owed by the Executive to WEX, or otherwise. The parties’ respective obligations
hereunder shall be absolute and unconditional and shall not be affected by any circumstances,
including without limitation any setoff, counterclaim, recoupment, defense or other right which the
other party hereto may have.

SECTION V

TAXATION

The Executive acknowledges and agrees that WEX may directly or indirectly withhold from any
payments under this Agreement all federal, state, city or other taxes that will be required
pursuant to any law or governmental regulation. Anything in this Agreement to the contrary
notwithstanding, the terms of this Agreement shall be interpreted and applied in a manner
consistent with the requirements of Section 409A of the Code and the Regulations so as not to
subject Executive to the payment of any tax or interest which may be imposed under such section,
and the Company shall have no right to accelerate or make any payment under this Agreement to the
extent such action would subject Executive to the payment of any tax or interest under such
section. If all or a portion of the benefits and payments provided under this Agreement constitute
taxable income to Executive for any taxable year that is prior to the taxable year in which such
payments and/or benefits are to be paid to Executive, as a result of the Agreement’s failure to
comply with the requirements of Section 409A of the Code and the Regulations, the applicable
payment or benefit shall be paid immediately to Executive to the extent such payment or benefit is
required to be included in income.

SECTION VI

EFFECT OF PRIOR AGREEMENTS

This Agreement will supersede any prior agreement between the Executive on the one hand, and
WEX (or any of its affiliates or parents) on the other hand concerning the subject matter hereof
and any such prior agreement will be deemed terminated without any remaining obligations of either
party thereunder.

SECTION VII

CONSOLIDATION, MERGER OR SALE OF ASSETS

Nothing in this Agreement will preclude WEX from consolidating or merging into or with, or
transferring all or substantially all of its assets to, another corporation that assumes this
Agreement and all obligations and undertakings of WEX hereunder. Upon such a consolidation, merger
or sale of assets the term “WEX” will mean the other corporation and this Agreement will continue
in full force and effect.

SECTION VIII

MODIFICATION, WAIVER, TERMINATION AND SURVIVAL

This Agreement may not be modified or amended except in writing signed by the parties. No term
or condition of this Agreement will be deemed to have been waived except when waived in writing by
the party charged with waiver. A waiver will operate only as to the specific term or condition
waived and will not constitute a waiver for the future or have any impact on anything other than
that which is specifically waived. Notwithstanding the above, the Company may unilaterally
terminate this Agreement by providing at least 12 months prior written notice to the Executive of
such termination and in which case this Agreement shall have no further effect from and after the
effective date of termination specified in such notice; provided, however, that the provisions of
Section III A, B, D, E and F (“Other Duties of the Executive During and After the Period of
Employment”), Section VII (“Consolidation, Merger or Sale of Assets”), Section VIII (“Modification,
Waiver, Termination and Survival”), Section IX (“Governing Law”), Section XI (“Not An Employment
Contract”) and Section XII (“Separability”) shall continue in full force in accordance with their
terms notwithstanding such termination of the Agreement.

SECTION IX

GOVERNING LAW

This Agreement has been executed and delivered in the State of Maine and its validity,
interpretation, performance and enforcement will be governed by the internal laws of that state.

SECTION X

ARBITRATION

A. Any controversy, dispute or claim arising out of or relating to this Agreement or the
breach hereof which cannot be settled by mutual agreement (other than with respect to the matters
covered by Section III for which WEX may, but will not be required to, seek injunctive relief) will
be finally settled by binding arbitration in accordance with the Federal Arbitration Act (or if not
applicable, the applicable state arbitration law) as follows: Any party who is aggrieved will
deliver a written notice to the other party setting forth the specific points in dispute. Any
points remaining in dispute twenty (20) days after the giving of such written notice may be
submitted by either party, upon ten (10) days prior written notice to the other party, to
arbitration in Portland, Maine, to the American Arbitration Association, before a single arbitrator
appointed in accordance with the arbitration rules of the American Arbitration Association,
National Rules for the Resolution of Employment Disputes, modified only as herein expressly
provided. The arbitrator may enter a default decision against any party who fails to participate in
the arbitration proceedings.

B. The decision of the arbitrator on the points in dispute will be final, and binding, and
judgment on the award may be entered in any court having jurisdiction thereof.

C. Except as otherwise provided in this Agreement, the arbitrator will be authorized to
apportion his/her fees and expenses as the arbitrator deems appropriate. In the absence of any such
apportionment, the fees and expenses of the arbitrator will be borne equally by each party, and
each party will bear the fees and expenses of its or his own attorney.

D. The parties agree that this Section X has been included to rapidly and inexpensively
resolve any disputes between them, with respect to this Agreement, and that this Section X will be
grounds for dismissal of any court action commenced by either party with respect to this Agreement,
other than post-arbitration actions seeking to enforce an arbitration award, or matters covered by
Section III. In the event that any court determines that this arbitration procedure is not binding,
or otherwise allows any litigation regarding a dispute, claim, or controversy covered by this
Agreement to proceed, the parties hereto hereby waive any and all right to a trial by jury in or
with respect to such litigation and do hereby consent to the jurisdiction of the appropriate court
within the State of Maine.

E. The parties will keep confidential, and will not disclose to any person, except as may be
required by law, the existence of any controversy hereunder. the referral of any such controversy
to arbitration or the status or resolution thereof.

SECTION XI

NOT AN EMPLOYMENT CONTRACT

The Executive acknowledges that this Agreement does not constitute a contract of employment
and does not imply that the Company will continue the Executive’s employment for any period of
time.

SECTION XII

SEPARABILITY

All provisions of this Agreement are intended to be severable. In the event any provision or
restriction contained herein is held to be invalid or unenforceable in any respect, in whole or in
part, such finding will in no way affect the validity or enforceability of any other provision of
this Agreement. The parties hereto further agree that any such invalid or unenforceable provision
will be deemed modified so that it will be enforced to the greatest extent permissible under law,
and to the extent that any court of competent jurisdiction determines any restriction herein to be
unreasonable in any respect, such court may limit this Agreement to render it reasonable in the
light or the circumstances in which it was entered into and specifically enforce this Agreement as
limited.

IN WITNESS WHEREOF, the undersigned have executed this Agreement this 13th day of April, 2012
and effective as of the date first above written.

WRIGHT EXPRESS CORPORATION

/s/ Michael E. Dubyak

By: MICHAEL E. DUBYAK

Title: Chief Executive Officer

/s/ Steven Elder

	 	 	STEVEN ELDERex10-1.htm

 

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into this 13th day of April 2012 (the “Effective Date”), by and between Delcath Systems, Inc., a Delaware corporation (the “Company”), and Peter J. Graham (the “Executive”).

 

RECITALS

 

THE PARTIES ENTER THIS AGREEMENT on the basis of the following facts, understandings and intentions:

 

A.           The Company and Executive previously entered into an Employment Agreement dated April 16, 2010 (the “Original Agreement”).

 

B.           As of the Effective Date, the Original Agreement shall be deemed terminated and shall be of no further force and effect, and the parties intend that this Agreement shall govern the relationship of the parties going forward.

 

C.           The Company desires to continue to employ the Executive as its Executive Vice President and General Counsel and Global Human Resources on the terms and conditions set forth in this Agreement.

 

D.           The Executive desires to continue to be employed by the Company on the terms and conditions set forth in this Agreement.

 

E.           This Agreement shall govern the employment relationship between the Executive and the Company from and after the Effective Date, and, as of the Effective Date, supersedes and negates any previous agreements or understandings with respect to such relationship.

 

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the above recitals incorporated herein and the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the parties agree as follows:

 

1.         Term and Duties.

 

1.1       Term.  The Company does hereby agree to continue to employ the Executive beginning on the “Effective Date” and concluding on the last day of the Period of Employment (as such term is defined in Section 2) on the terms and conditions expressly set forth in this Agreement.  The Executive does hereby accept and agree to such continued employment, on the terms and conditions expressly set forth in this Agreement.

 

1.2       Duties.  During the Period of Employment, the Executive shall continue to serve the Company as its Executive Vice President and General Counsel and Global Human Resources

 

  

  

  

and shall have the powers, authorities, duties, and obligations of management usually vested in the office of the General Counsel of a company of a similar size and similar nature as the Company, and such other powers, authorities, duties, and obligations commensurate with such position as the Company’s Chief Executive Officer (“CEO”) or Board of Directors (the “Board”) may assign from time to time, all subject to the lawful directives of the Board and the corporate policies of the Company as they are in effect from time to time throughout the Period of Employment (including, without limitation, the Company’s business conduct and ethics policies, as in effect from time to time).  During the Period of Employment, the Executive shall report to the Chief Executive Officer.

 

1.3       No Other Employment; Minimum Time Commitment.  During the Period of Employment, the Executive shall (i) devote substantially all of the Executive’s business time, energy and skill to the performance of the Executive’s duties for the Company, (ii) perform such duties in a faithful, effective, and efficient manner to the best of his abilities, and (iii) hold no other employment.  The Company shall have the right to require the Executive to resign from any board or similar body (including, without limitation, any association, corporate, civic or charitable board or similar body) on which he may then serve, if the Board reasonably determines that the Executive’s service in such capacity interferes with the effective discharge of the Executive’s duties and responsibilities to the Company or that any business related to such service is then in competition with any business of the Company or any of its Affiliates (as such term is defined in Section 5.5), successors or assigns.  The Executive’s service on the boards of directors (or similar body) of other business entities is subject to the Board’s approval.

 

1.4       No Breach of Contract.  The Executive represents to the Company that: (i) the Executive is not bound by any employment, consulting, non-compete, confidentiality, trade secret, or similar agreement or any judgment, order, or decree that would prevent, or be violated by, the Executive entering into this Agreement or carrying out his duties hereunder; and (ii) the Executive understands the Company will rely upon the accuracy and truth of the representations and warranties of the Executive set forth herein and the Executive consents to such reliance.

 

1.5       Location.  The Executive’s principal place of employment shall be the Company’s principal corporate office as it may be located from time to time.  The Executive agrees that he will be regularly present at that office.  The Executive acknowledges that he may be required to travel from time to time in the course of performing his duties for the Company.  As of the Effective Date, the Company’s principal corporate office is located at 810 Seventh Avenue, FL 35, New York, NY  10019 and any relocation shall require the approval of the Board.

 

2.         Period of Employment.  The “Period of Employment” shall be a period of one year commencing on the Effective Date and ending at the close of business on the first anniversary of the Effective Date.  Notwithstanding the foregoing, the Period of Employment is subject to earlier termination as provided below in this Agreement.

 

3.         Compensation.

 

3.1       Base Salary.  During the Period of Employment, the Company shall pay the Executive a base salary (the “Base Salary”), which shall be paid in accordance with the

 

  

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Company’s regular payroll practices in effect from time to time, but not less frequently than monthly.  The Executive’s Base Salary shall be at an annualized rate of Three Hundred Thirty Thousand, One Hundred Fifty Four and 35/100 Dollars ($330,154.35) and shall be subject to an annual review by the Compensation Committee (as defined in Section 3.2) or the Chief Executive Officer, as the case may be.

 

3.2       Incentive Bonus.  The Executive shall be eligible to receive an incentive bonus which shall be determined by the Compensation and Stock Option Committee of the Board (the “Compensation Committee”) in accordance with the Annual Incentive Plan adopted by the Compensation Committee on December 15, 2010, as such plan may be amended from time to time (the “Annual Incentive Plan”).

 

3.3       Stock Option Grant and/or Restricted Stock Grant.  Executive shall be eligible to receive stock option grants and/or grants of restricted stock, as may be determined by the Compensation Committee in accordance with the Long Term Incentive Plan adopted by the Compensation Committee on December 15, 2010, as such plan may be amended from time to time.

 

4.         Benefits.

 

4.1       Retirement, Welfare and Fringe Benefits.  During the Period of Employment, the Executive shall be entitled to participate in all retirement and welfare benefit plans and programs, and fringe benefit plans and programs, made available by the Company to the Company’s executive officers generally, in accordance with the eligibility and participation provisions of such plans and as such plans or programs may be in effect from time to time.

 

4.2       Vacation.  During the Period of Employment, Executive shall be entitled to the greater of a) four (4) weeks of paid vacation per calendar year; or b) the amount of paid vacation Executive would be entitled to according to Company policy.

 

4.3       Reimbursement of Business Expenses.  The Executive is authorized to incur reasonable expenses in carrying out the Executive’s duties for the Company under this Agreement and shall be entitled to reimbursement for all reasonable business expenses that the Executive incurs during the Period of Employment in connection with carrying out the Executive’s duties for the Company, subject to the Company’s expense reimbursement policies and any pre-approval policies in effect from time to time.  Manner of travel shall be according to  Company policy.  Reasonable expenses shall be deemed to include without limitation continuing legal education expenses, maintenance of state attorney licensing fees, and reasonable (as determined by the CEO) professional society dues and fees.

 

5.         Termination.

 

5.1       Termination by the Company.  The Executive’s employment by the Company, and the Period of Employment, may be terminated at any time by the Company: (i) with Cause (as such term is defined in Section 5.5), or (ii) without Cause, or (iii) in the event of the Executive’s death, or (iv) in the event that the Board determines in good faith that the Executive has a Disability (as such term is defined in Section 5.5).

 

  

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5.2       Termination by the Executive.  The Executive’s employment by the Company, and the Period of Employment, may be terminated by the Executive with no less than ninety (90) days’ advance written notice to the Company (such notice to be delivered in accordance with Section 17); provided, however, that in the case of a termination with Good Reason, the Executive may provide immediate written notice of termination once the applicable cure period (as contemplated by the definition of Good Reason) has lapsed if the Company has not reasonably cured the circumstances that gave rise to the basis for the termination with Good Reason.

 

5.3       Benefits Upon Termination.  If the Executive’s employment by the Company is terminated during the Period of Employment for any reason by the Company or by the Executive, or upon or following the expiration of the Period of Employment (in any case, the date that the Executive’s employment by the Company terminates is referred to as the “Severance Date”), the Company shall have no further obligation to make or provide to the Executive, and the Executive shall have no further right to receive or obtain from the Company, any payments or benefits except as follows:

 

(a)        The Company shall pay the Executive (or, in the event of his death, the Executive’s estate) any Accrued Obligations (as such term is defined in Section 5.5);

 

(b)        If, during the Period of Employment, the Executive’s employment with the Company terminates as a result of an Involuntary Termination (as such term is defined in Section 5.5), the Company shall pay the Executive (in addition to the Accrued Obligations), subject to tax withholding and other authorized deductions, Base Salary for 12 months (the period described as the “Severance Period”).  Such amount is referred to hereinafter as the “Severance Benefit.”  Subject to Section 5.8(a), the Company shall pay the Severance Benefit to the Executive in substantially equal installments in accordance with the Company’s standard payroll practices over a period of 12 months, with the first installment payable in the month following the month in which the Executive’s employment with the Company terminates.

 

(c)        Notwithstanding the foregoing provisions of this Section 5.3, if the Executive breaches his obligations under Section 6 or any material obligation under any other agreement signed by the Executive and the Company or any of its Affiliates that imposes restrictions with respect to the Executive’s activities at any time, from and after the date of such breach and not in any way in limitation of any right or remedy otherwise available to the Company, the Executive will no longer be entitled to, and the Company will no longer be obligated to pay, any remaining unpaid portion of the Severance Benefit; provided that, if the Executive provides the release contemplated by Section 5.4, in no event shall the Executive be entitled to a Severance Benefit payment of less than $5,000, which amount the parties agree is good and adequate consideration, standing alone, for the Executive’s release contemplated by Section 5.4.

 

(d)        The foregoing provisions of this Section 5.3 shall not affect: (i) the Executive’s receipt of any benefits otherwise due terminated employees under group insurance coverage consistent with the terms of an applicable Company welfare benefit plan; (ii) the Executive’s rights to continued health coverage under COBRA; (iii) the Executive’s receipt of benefits otherwise due in accordance with the terms of the Company’s 401(k) plan (if any); and

 

  

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(iv) the Executive’s receipt of any incentive benefit which has accrued but which has not yet been paid on the Severance Date.

 

5.4       Release; Exclusive Remedy.

 

(a)        This Section 5.4 shall apply notwithstanding anything else contained in this Agreement or any stock option or other equity-based award agreement to the contrary.  As a condition precedent to payment of the Severance Benefit or any obligation to accelerate vesting of any equity based award on an Involuntary Termination or a Change of Control, the Executive shall, upon or promptly following his last day of employment with the Company, provide the Company with a valid, executed general release agreement in a form acceptable to the Company substantially in the form attached as Exhibit A, and such release agreement shall have not been revoked by the Executive pursuant to any revocation rights afforded by applicable law.

 

(b)        The Executive agrees that the payments and benefits contemplated by Section 5.3 (and any applicable acceleration of any equity based award or bonus on an Involuntary Termination or Change of Control) shall constitute the exclusive and sole remedy for any termination of his employment and the Executive covenants not to assert or pursue any other remedies, at law or in equity, with respect to any termination of employment.  The Executive agrees to resign, on the Severance Date, as an officer of the Company and any Affiliate of the Company, and as a fiduciary of any benefit plan of the Company or any Affiliate of the Company, and to promptly execute and provide to the Company any further documentation, as requested by the Company, to confirm such resignation.

 

5.5       Certain Defined Terms.

 

(a)        As used herein, “Accrued Obligations” means:

 

(i)         any Base Salary that had accrued but had not been paid on or before the Severance Date; and

 

(ii)        any reimbursement due to the Executive pursuant to Section 4.2 for expenses reasonably incurred by the Executive on or before the Severance Date and documented and pre-approved, to the extent applicable, in accordance with the Company’s expense reimbursement policies in effect at the applicable time.

 

(b)        As used herein, “Affiliate” of the Company means a Person that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Company.  As used in this definition, the term “control,” including the correlative terms “controlling,” “controlled by” and “under common control with,” means the possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise) of a Person.

 

  

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(c)        As used herein, “Cause” shall mean, as reasonably determined by the Board based on the information then known to it, that one or more of the following has occurred: (1) the Executive has committed a felony under the laws of the United States or any relevant state, or a similar crime or offense under the applicable laws of any relevant foreign jurisdiction; (2) the Executive has engaged in acts of fraud, dishonesty, gross negligence, or gross misconduct, including abuse of controlled substances, that is injurious to the Company, its Affiliates or any of their customers, clients or employees; (3) the Executive willfully fails to perform or uphold his duties under this Agreement and/or fails to comply with reasonable and lawful directives of the Board; (4) the Executive is no longer admitted to practice law in New York State or is no longer in good standing with the New York State Bar; or (5) any breach by the Executive of any provision of Sections 1 or 6, any material breach by the Executive of any other contract he is a party to with the Company or any of its Affiliates, including a violation of the Code of Ethics or another material written policy.

 

(d)        As used herein, “Good Reason” shall mean a termination of the Executive’s employment by means of resignation by the Executive after the occurrence (without the Executive’s consent) of any one or more of the following conditions: (a) a material diminution in the Executive’s rate of Base Salary; (b) a material diminution in the Executive’s authority, duties, or responsibilities; (c) a material change in the geographic location of the Executive’s principal office with the Company (for this purpose, in no event shall a relocation of such office to a new location that is not more than fifty (50) miles from the current location of the Company’s Executive offices constitute a “material change”); or (d) a material breach by the Company of this Agreement; provided, however, that any such condition or conditions, as applicable, shall not constitute grounds for a termination with Good Reason unless (x) the Executive provides written notice to the Company of the condition claimed to constitute grounds for a termination with Good Reason within ninety (90) days after the initial existence of such condition(s) (such notice to be delivered in accordance with Section 17), and (y) the Company fails to remedy such condition(s) within thirty (30) days of receiving such written notice thereof; and (z) the termination of the Executive’s employment with the Company shall not constitute a termination with Good Reason unless such termination occurs not more than one hundred and twenty (120) days following the initial existence of the condition claimed to constitute grounds for a termination with Good Reason.

 

(e)        As used herein, “Disability” shall mean a physical or mental impairment which, as reasonably determined by the Board, renders the Executive unable to perform the essential functions of his employment with the Company, even with reasonable accommodation that does not impose an undue hardship on the Company, for more than 90 days in any 180-day period, unless a longer period is required by federal or state law, in which case such longer period shall apply.

 

(f)         As used herein, “Involuntary Termination” shall mean (i) a termination of the Executive’s employment by the Company without Cause (and other than due to Executive’s death or in connection with a good faith determination by the Board that the Executive has a Disability), or (ii) a termination with Good Reason.

 

(g)        As used herein, the term “Person” shall be construed broadly and shall include, without limitation, an individual, a partnership, a limited liability company, a

 

  

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corporation, 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

 

(h)        As used herein, a “Separation from Service” occurs when the Executive dies, retires, or otherwise has a termination of employment with the Company that constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1).

 

5.6       Notice of Termination.  Any termination of the Executive’s employment under this Agreement shall be communicated by written notice of termination from the terminating party to the other party.  This notice of termination must be delivered in accordance with Section 17 and must indicate the specific provision(s) of this Agreement relied upon in effecting the termination.

 

5.7       Limitation on Benefits.

 

(a)        To the extent that, prior to a Change of Control that occurs at a time that no stock of the Company is readily tradable on an established securities market, any payment, benefit or distribution of any type to or for the benefit of the Executive by the Company or any of its affiliates, whether paid or payable, provided or to be provided, or distributed or distributable pursuant to the terms of this Agreement or otherwise (including, without limitation, any accelerated vesting of stock options or other equity based awards or incentives) (collectively, the “Total Payments”) would be subject to the excise tax imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), then the Company shall submit for the vote of the stockholders of the Company (the “Stockholders”) the payments to the Executive in a manner that complies with the requirements of Section 280G(b)(5)(B) of the Code and the Treasury Regulations promulgated thereunder.  It shall be a prerequisite to the Company’s obligations under this Section 5.7(a) that the Executive shall have executed a valid waiver in a form reasonably satisfactory to the Company and sufficient to enable the Stockholders’ approval to have the effect that no payments to the Executive would be subject to the excise tax under Section 4999 of the Code.  If the exemption described in Section 280G(b)(5)(B) of the Code and the Treasury Regulations promulgated thereunder does not apply, then the procedures set forth in Section 5.7(b) and Section 5.7(c) hereof shall apply.

 

(b)        Notwithstanding anything contained in this Agreement to the contrary, to the extent that the Total Payments would be subject to Section 4999 of the Code, then the Total Payments shall be reduced (but not below zero) so that the maximum amount of the Total Payments (after reduction) shall be one dollar ($1.00) less than the amount which would cause the Total Payments to be subject to the excise tax imposed by Section 4999 of the Code.  Unless the Executive shall have given prior written notice to the Company to effectuate a reduction in the Total Payments that complies with the requirements of Section 409A of the Code to avoid the imputation of any tax, penalty or interest thereunder, the Company shall reduce or eliminate the Total Payments by first reducing or eliminating any cash severance benefits (with the payments to be made furthest in the future being reduced first), then by reducing or eliminating any accelerated vesting of stock options or similar awards, then by reducing or eliminating any other remaining Total Payments.  The preceding provisions of this Section 5.7(b) shall take precedence

 

  

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over the provisions of any other plan, arrangement or agreement governing the Executive’s rights and entitlements to any benefits or compensation.

 

(c)        Any determination that Total Payments to the Executive must be reduced or eliminated in accordance with Section 5.7(b) and the assumptions to be utilized in arriving at such determination, shall be made by the Board in the exercise of its reasonable, good faith discretion based upon the advice of such professional advisors it may deem appropriate in the circumstances.  As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Board hereunder, it is possible that Total Payments to the Executive which will not have been made by the Company should have been made (“Underpayment”).  If an Underpayment has occurred, the amount of any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive.  In the event that any Total Payment made to the Executive shall be determined to otherwise result in the imposition of any tax under Section 4999 of the Code, then the Executive shall promptly repay to the Company the amount of any such Underpayment together with interest on such amount (at the same rate as is applied to determine the present value of payments under Section 280G of the Code or any successor thereto), from the date the reimbursable payment was received by the Executive to the date the same is repaid to the Company.

 

5.8       Section 409A and Sarbanes-Oxley.

 

(a)        If the Executive is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of the Executive’s Separation from Service, the Executive shall not be entitled to any portion of the Severance Benefit that constitutes deferred compensation under Section 409A of the Code until the earlier of (i) the date which is six (6) months after his Separation from Service for any reason other than death, or (ii) the date of the Executive’s death.  The provisions of this paragraph shall apply only if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Section 409A of the Code.  Any amounts otherwise payable to the Executive upon or in the six (6) month period following the Executive’s Separation from Service that are not so paid by reason of this Section 5.8(a) shall be paid (without interest) as soon as practicable (and in all events within thirty (30) days) after the date that is six (6) months after the Executive's Separation from Service (or, if earlier, as soon as practicable, and in all events within thirty (30) days, after the date of the Executive’s death).

 

(b)        It is intended that any amounts payable under this Agreement and the Company’s and the Executive’s exercise of authority or discretion hereunder shall comply with and avoid the imputation of any tax, penalty or interest under Section 409A of the Code.  This Agreement shall be construed and interpreted consistent with that intent.  Nothing contained herein is intended to provide a guarantee of tax treatment to the Executive.

 

(c)        To the extent required under Section 304 of the Sarbanes-Oxley Act of 2002, as amended, or other applicable law or rule, if the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, the Executive shall reimburse the issuer to the extent required by such authority, including for (i) any bonus or other incentive-based or equity-based compensation received by the Executive from the

 

  

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Company during the 12-month period following the first public issuance or filing with the Securities and Exchange Commission (whichever first occurs) of the financial document embodying such financial reporting requirement; and (ii) any profits realized from the sale of securities of the issuer during that 12-month period.

 

6.         Protective Covenants.

 

6.1       Confidential Information; Inventions.

 

(a)        The Executive shall not disclose or use at any time, either during the Period of Employment or thereafter, any Confidential Information (as defined below) of which the Executive is or becomes aware, whether or not such information is developed by him, except to the extent that such disclosure or use is directly related to and required by the Executive’s performance in good faith of duties for the Company.  The Executive will take all reasonably appropriate steps to safeguard Confidential Information in his possession and to protect it against disclosure, misuse, espionage, loss, and theft.  The Executive shall deliver to the Company at the termination of the Period of Employment, or at any time the Company may request, all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data (and copies thereof) relating to the Confidential Information or the Work Product (as hereinafter defined) of the business of the Company or any of its Affiliates which the Executive may then possess or have under his control.  Notwithstanding the foregoing, the Executive may truthfully respond to a lawful and valid subpoena or other legal process, but shall give the Company the earliest possible notice thereof, shall make available to the Company and its counsel the documents and other information sought with as much in advance of the return date as possible, and shall assist the Company and such counsel in responding to such process.

 

(b)             As used in this Agreement, the term “Confidential Information” means information that is not generally known to the public and that is used, developed or obtained by the Company in connection with its business, including, but not limited to, information, observations and data obtained by the Executive while employed by the Company or any predecessors thereof (including those obtained prior to the Effective Date) concerning (i) the business or affairs of the Company (or such predecessors), (ii) products or services, (iii) fees, costs, compensation and pricing structures, (iv) designs, (v) analyses, (vi) drawings, photographs and reports, (vii) computer software, including operating systems, applications and program listings, (viii) flow charts, manuals and documentation, (ix) data bases, (x) accounting and business methods, (xi) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice, (xii) customers and clients and customer or client lists, (xiii) other copyrightable works, (xiv) all production methods, processes, technology and trade secrets, and (xv) all similar and related information in whatever form.  Confidential Information will not include any information that has been published (other than a disclosure by the Executive in breach of this Agreement) in a form generally available to the public prior to the date the Executive proposes to disclose or use such information.  Confidential Information will not be deemed to have been published merely because individual portions of the information have been separately published, but only if all material features comprising such information have been published in combination.

 

  

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(c)        As used in this Agreement, the term “Work Product” means all inventions, innovations, improvements, technical information, systems, software developments, methods, designs, analyses, drawings, reports, service marks, trademarks, trade names, logos, and all similar or related information (whether patentable or unpatentable, copyrightable, registerable as a trademark, reduced to writing, or otherwise) that relates to the Company’s or any of its Affiliates’ actual or anticipated business, research and development or existing or future products or services and which are conceived, developed or made by the Executive (whether or not during usual business hours, whether or not by the use of the facilities of the Company or any of its Affiliates, and whether or not alone or in conjunction with any other person) while employed by the Company (including those conceived, developed or made prior to the Effective Date) together with all patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing.  All Work Product that the Executive may have discovered, invented, or originated during his employment by the Company or any of its Affiliates prior to the Effective Date, that he may discover, invent or originate during the Period of Employment or at any time in the period of twelve (12) months after the Severance Date, shall be the exclusive property of the Company and its Affiliates, as applicable, and Executive hereby assigns all of Executive’s right, title and interest in and to such Work Product to the Company or its applicable Affiliate, including all intellectual property rights therein.  Executive shall promptly disclose all Work Product to the Company, shall execute at the request of the Company any assignments or other documents the Company may deem necessary to protect or perfect its (or any of its Affiliates’, as applicable) rights therein, and shall assist the Company, at the Company’s expense, in obtaining, defending and enforcing the Company’s (or any of its Affiliates’, as applicable) rights therein.  The Executive hereby appoints the Company as his  attorney-in-fact to execute on his behalf any assignments or other documents deemed necessary by the Company to protect or perfect the Company, the Company’s (and any of its Affiliates’, as applicable) rights to any Work Product.

 

6.2        Restriction on Competition.  The Executive agrees that if the Executive were to become employed by, or substantially involved in, the business of a competitor of the Company or any of its Affiliates during the Severance Period, it would be very difficult for the Executive not to rely on or use the Company’s and its Affiliates’ trade secrets and confidential information.  Thus, to avoid the inevitable disclosure of the Company’s and its Affiliates’ trade secrets and confidential information, and to protect such trade secrets and confidential information and the Company’s and its Affiliates’ relationships and goodwill with customers, during the Period of Employment and for a period of time after the Severance Date equal to the Severance Period, the Executive will not directly or indirectly through any other Person engage in, enter the employ of, render any services to, have any ownership interest in, nor participate in the financing, operation, management or control of, any Competing Business.  For purposes of this Agreement, the phrase “directly or indirectly through any other Person engage in” shall include, without limitation, any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner, stockholder, member, partner, joint venturer or otherwise, and shall include any direct or indirect participation in such enterprise as an employee, executive, consultant, director, officer, licensor of technology or otherwise.  For purposes of this Agreement, “Competing Business” means a Person anywhere in the continental United States or elsewhere in the world where the Company or any of its Affiliates engage in business, or reasonably and demonstrably anticipate engaging in business, on the Severance Date (the “Restricted Area”) that at any time during the

 

  

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Period of Employment has competed, or at any time during the Severance Period competes, with the Company or any of its Affiliates in any of its or their material businesses, including, without limitation, the research, development, identification or marketing of targeted regional cancer or infectious disease drug delivery systems.  Nothing herein shall prohibit the Executive from being a passive owner of not more than 2% of the outstanding stock of any class of a corporation that is publicly traded, so long as the Executive has no active participation in the business of such corporation.

 

6.3       Non-Solicitation of Employees and Consultants.  During the Period of Employment and for a period of twenty-four (24) months after the Severance Date, the Executive will not directly or indirectly through any other Person (i) induce or attempt to induce any employee or independent contractor of the Company or any Affiliate of the Company to leave the employ or service, as applicable, of the Company or such Affiliate, or in any way interfere with the relationship between the Company or any such Affiliate, on the one hand, and any employee or independent contractor thereof, on the other hand, or (ii) hire any person who was an employee of the Company or any Affiliate of the Company until twelve (12) months after such individual’s employment relationship with the Company or such Affiliate has been terminated.

 

6.4       Non-Disruption of Other Business Relationships.  During the Period of Employment and for a period of twenty-four (24) months after the Severance Date, the Executive will not directly or indirectly through any other Person influence or attempt to influence customers, vendors, suppliers, licensors, lessors, joint venturers, associates, consultants, agents, or partners of the Company or any Affiliate of the Company to divert their business away from the Company or such Affiliate, and the Executive will not otherwise interfere with, disrupt or attempt to disrupt the business or professional relationships, contractual or otherwise, between the Company or any Affiliate of the Company, on the one hand, and any of its or their customers, suppliers, vendors, lessors, licensors, joint venturers, government regulators, associates, officers, employees, consultants, managers, partners, members or investors, on the other hand.

 

6.5       Non-Disparagement.  At all times following the date hereof, the Executive shall not, whether in writing or orally, disparage or denigrate the Company or any Affiliate, or any of their respective current or former affiliates, directors, officers, employees, members, partners, agents, or representatives.  At all times following the date hereof, the directors, officers, and communications and human resources personnel of the Company shall not, whether in writing or orally, disparage or denigrate the Executive.

 

6.6       Understanding of Covenants.  The Executive acknowledges that, in the course of his employment with the Company and/or its Affiliates and their predecessors, he has become familiar, or will become familiar, with the Company’s and its Affiliates’ and their predecessors’ trade secrets and with other confidential and proprietary information concerning the Company, its Affiliates and their respective predecessors and that his services have been and will be of special, unique and extraordinary value to the Company and its Affiliates.  The Executive agrees that the foregoing covenants set forth in this Section 6 (together, the “Restrictive Covenants”) are reasonable and necessary to protect the Company’s and its Affiliates’ trade secrets and other confidential and proprietary information, good will, stable workforce, and customer relations.

 

  

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Without limiting the generality of the Executive’s agreement in the preceding paragraph, the Executive (i) represents that he is familiar with and has carefully considered the Restrictive Covenants, (ii) represents that he is fully aware of his obligations hereunder, (iii) agrees to the reasonableness of the length of time, scope and geographic coverage, as applicable, of the Restrictive Covenants, (iv) agrees that the Company and its Affiliates currently conducts business throughout the Restricted Area, and (v) agrees that the Restrictive Covenants will continue in effect for the applicable periods set forth above in this Section 6 regardless of whether the Executive is then entitled to receive severance pay or benefits from the Company.  The Executive understands that the Restrictive Covenants may limit his ability to earn a livelihood in a business similar to the business of the Company and any of its Affiliates, but he nevertheless believes that he has received and will receive sufficient consideration and other benefits as an employee of the Company and as otherwise provided hereunder or as described in the recitals hereto to clearly justify such restrictions which, in any event (given his education, skills and ability), the Executive does not believe would prevent him from otherwise earning a living.  The Executive agrees that the Restrictive Covenants do not confer a benefit upon the Company disproportionate to the detriment of the Executive.

 

6.7       Enforcement.  Without limiting the generality of Section 16, the Executive agrees that a breach by the Executive of any of the covenants in this Section 6 would cause immediate and irreparable harm to the Company that would be difficult or impossible to measure, and that damages to the Company for any such injury would therefore be an inadequate remedy for any such breach.  Therefore, the Executive agrees that in the event of any breach or threatened breach of any provision of this Section 6 or any similar provision, the Company shall be entitled, in addition to and without limitation upon all other remedies the Company may have under this Agreement, at law or otherwise, to obtain specific performance, injunctive relief and/or other appropriate relief (without posting any bond or deposit) in order to enforce or prevent any violations of the provisions of this Section 6 or any similar provision, as the case may be, or require the Executive to account for and pay over to the Company all compensation, profits, moneys, accruals, increments or other benefits derived from or received as a result of any transactions constituting a breach of this Section 6 or any similar provision, as the case may be, if and when final judgment of a court of competent jurisdiction or arbitrator is so entered against the Executive.  The Executive further agrees that the applicable period of time any Restrictive Covenant is in effect following the Severance Date, as determined pursuant to the foregoing provisions of this Section 6, such period of time shall be extended by the same amount of time that Executive is in breach of any Restrictive Covenant.

 

6.8       Additional Documentation.  The Executive agrees to execute any additional documentation as may reasonably be requested by the Company in furtherance of the enforcement of any Restrictive Covenant.

 

7.         Withholding Taxes.  Notwithstanding anything else herein to the contrary, the Company may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such federal, state and local income, employment, or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

 

  

12

  

8.         Successors and Assigns.  This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives.  This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.  As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any assignee or successor to all or substantially all of the Company’s assets, as applicable, which assumes this Agreement by operation of law or otherwise.

 

9.         Rules of Construction.  Where the context requires, the singular shall include the plural, the plural shall include the singular, and any gender shall include all other genders.  Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit, or restrict in any manner the construction of the general statement to which it relates.  Unless otherwise expressly provided herein, all determinations to be made by the Compensation Committee, the Board, or the CEO under this Agreement shall be made in their sole discretion.

 

10.       Section Headings.  The section headings of, and titles of paragraphs and subparagraphs contained in, this Agreement are for the purpose of convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation thereof.

 

11.       Governing Law; Arbitration; Waiver of Jury Trial.

 

11.1     THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED.  IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION’S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

 

11.2     Except for the limited purpose provided in Section 16, any legal dispute related to this Agreement and/or any claim related to this Agreement, or breach thereof, shall, in lieu of being submitted to a court of law, be submitted to arbitration, in accordance with the applicable dispute resolution procedures of the American Arbitration Association. The award of the arbitrator shall be final and binding upon the parties.  The parties hereto agree that (i) one arbitrator shall be selected pursuant to the rules and procedures of the American Arbitration Association, (ii) the arbitrator shall have the power to award injunctive relief or to direct specific performance, (iii) each of the parties, unless otherwise required by applicable law, shall bear its own attorneys’ fees, costs and expenses and an equal share of the arbitrator’s and administrative fees of arbitration, and (iv) the arbitrator shall award to the prevailing party a sum equal to that party’s share of the arbitrator’s and administrative fees of arbitration.  Nothing in this Section 11 shall be construed as providing the Executive a cause of action, remedy or procedure that the Executive would not otherwise have under this Agreement or the law.

 

  

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11.3     EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

12.       Severability.  The parties desire that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, if any particular provision of this Agreement is found to be invalid, prohibited, or unenforceable under any present or future law, and if the rights and obligations of any party under this Agreement will not be materially and adversely affected thereby, such provision shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.  To this end, the provisions of this Agreement are declared to be severable.  Notwithstanding the foregoing, if such provision could be more narrowly drawn (as to geographic scope, period of duration or otherwise) so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

13.       Entire Agreement.  This Agreement embodies the entire agreement of the parties hereto respecting the matters within its scope.  This Agreement supersedes all prior and contemporaneous agreements of the parties hereto that directly or indirectly bears upon the subject matter hereof, including, without limitation, any term sheet or offer letter prepared in connection herewith.  Notwithstanding the foregoing, the parties acknowledge and agree that any Non-Statutory Stock Option Grant Letters and Restricted Stock Agreements executed prior to the Effective Date are not superseded by this Agreement.  Any prior negotiations, correspondence, agreements, proposals, or understandings relating to the subject matter hereof shall be deemed to have been merged into this Agreement, and to the extent inconsistent herewith, such negotiations, correspondence, agreements, proposals, or understandings shall be deemed to be of no force or effect.  There are no representations, warranties, or agreements, whether express or implied, or oral or written, with respect to the subject matter hereof, except as expressly set forth herein.  Notwithstanding the foregoing integration provisions, the Executive acknowledges having received and read the Company’s Code of Business Conduct and Ethics and agrees to conduct himself in accordance therewith as in effect from time to time.

 

14.       Modifications.  This Agreement may not be amended, modified, or changed (in whole or in part), except by a formal, definitive written agreement expressly referring to this Agreement, which agreement is executed by both of the parties hereto.

 

15.       Waiver.  No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.  Failure or delay on the part of a party to exercise fully any right, remedy, power or privilege under this Agreement shall not operate as a waiver thereof.  Any single or partial exercise of any right, remedy, power, or privilege shall not preclude any other or further exercise of the same or of any right, remedy, power or privilege.  Waiver of any right, remedy, power or privilege with respect to any occurrence shall not be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.

 

  

14

  

16.       Remedies.  Each of the parties to this Agreement and any such person or entity granted rights hereunder whether or not such person or entity is a signatory hereto shall be entitled to enforce its rights under this Agreement specifically to recover damages and costs for any breach of any provision of this Agreement and to exercise all other rights existing in its favor.  The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that each party may in its sole discretion apply to any court of law or equity of competent jurisdiction for specific performance, injunctive relief and/or other appropriate equitable relief (without posting any bond or deposit) in order to enforce or prevent any violations of the provisions of this Agreement.  Each party shall be responsible for paying its own attorneys’ fees, costs, and other expenses pertaining to any such legal proceeding and enforcement regardless of whether an award or finding or any judgment or verdict thereon is entered against either party.

 

17.       Notices.  Any notice provided for in this Agreement must be in writing and must be either personally delivered, transmitted via telecopier, mailed by first class mail (postage prepaid and return receipt requested), or sent by reputable overnight courier service (charges prepaid) to the recipient at the address below indicated or at such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party.  Notices will be deemed to have been given hereunder and received when delivered personally, when received if transmitted via telecopier, five days after deposit in the U.S. mail, and one day after deposit on a weekday with a reputable overnight courier service.

 

if to the Company:

 

Delcath Systems, Inc.

810 Seventh Avenue, FL 35

New York, NY  10019

Facsimile: (212) 489-2102

Attn:  Chief Executive Officer

with a copy to:

 

Gregory J. Champion, Esq.

Bond, Schoeneck & King, PLLC

111 Washington Ave., 5th Floor

Albany, NY 12210

Facsimile: (518) 533-3299

if to the Executive, to the address most recently on file in the payroll records of the Company.

 

18.       Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument.  This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.  Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.  Transmission of a

 

  

15

  

signature page via PDF or facsimile transmission shall have the same effect as transmission of an original signature.

 

19.       Legal Counsel.  Each party recognizes that this is a legally binding contract and acknowledges and agrees that they have had the opportunity to consult with legal counsel of their choice.  In any construction to be made of this Agreement, the parties agree the Agreement shall not be construed against either party on the basis of that party being the drafter of such language.  The Executive agrees and acknowledges that he has read and understands this Agreement, is entering into it freely and voluntarily, and has been advised to seek counsel prior to entering into this Agreement and has had ample opportunity to do so.

 

20.       Employed Lawyers’ Liability Insurance.  During the term of this Agreement, the Company shall maintain an Employed Lawyers’ Liability Insurance policy from a nationally recognized carrier with a rating of at least A- or better covering the Executive.  Such policy shall have a minimum of no less than $5,000,000 in coverage.

 

IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of April 13, 2012.

 

	  	
“COMPANY”

	  	  
	  	
Delcath Systems, Inc.

	  	  
	  	
By:

	
/s/ Eamonn P. Hobbs

	  	
Name:   

	
Eamonn P. Hobbs

	  	
Title:

	
Chief Executive Officer, President

	  	  	  
	  	
“EXECUTIVE”

	  	
Peter J. Graham

	  	  
	  	
/s/ Peter J. Graham

	  	
Executive Vice President and General Counsel

  

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Exhibit “A” to Employment Agreement

 

FORM OF RELEASE AGREEMENT

 

This Release Agreement (this “Release Agreement”) is entered into this ___ day of _________ 20__, by and between Peter J. Graham, an individual (“Executive”), and Delcath Systems, Inc., a Delaware corporation (the “Company”).

 

WHEREAS, Executive has been employed by the Company; and

 

WHEREAS, Executive’s employment by the Company has terminated and, in connection with the Executive’s Employment Agreement with the Company, dated as of [______________] (the “Employment Agreement”), the Company and Executive desire to enter into this Release Agreement upon the terms set forth herein;

 

NOW, THEREFORE, in consideration of the covenants undertaken and the releases contained in this Release Agreement, and in consideration of the obligations of the Company to pay severance and other benefits (conditioned upon this Release Agreement) under and pursuant to the Employment Agreement, Executive and the Company agree as follows:

 

1.           Termination of Employment.  Executive’s employment with the Company terminated on [______________, _____].  Executive waives any right or claim to reinstatement as an employee of the Company and each of its affiliates.  Executive hereby confirms that Executive does not hold any position as an officer or employee with the Company and each of its affiliates.  Executive acknowledges and agrees that Executive has received all amounts owed for his regular and usual salary (including, but not limited to, any overtime, bonus, accrued vacation, commissions, or other wages), reimbursement of expenses, and usual benefits.  Executive understands and agrees that he will not receive the payments specified in Section 5.3 of the Employment Agreement unless he executes this Release Agreement and does not revoke this Release Agreement within the time period permitted hereafter and that such amounts shall be forfeited if he breaches this Release Agreement or Section 6 of the Employment Agreement.

 

2.           Release.  Executive, on behalf of himself, his descendants, dependents, heirs, executors, administrators, assigns, and successors, and each of them, hereby covenants not to sue and fully releases and discharges the Company and each of its parents, subsidiaries and affiliates, past and present, as well as its and their trustees, directors, officers, members, managers, partners, agents, attorneys, insurers, employees, stockholders, representatives, assigns, and successors, past and present, and each of them, hereinafter together and collectively referred to as the “Releasees,” with respect to and from any and all claims, wages, demands, rights, liens, agreements or contracts (written or oral), covenants, actions, suits, causes of action, obligations, debts, costs, expenses, attorneys’ fees, damages, judgments, orders and liabilities of whatever kind or nature in law, equity or otherwise arising out of or in connection with Executive’s service as an officer, director, employee, member or manager of any Releasee or Executive’s separation from his position as an officer, director, employee, manager and/or member, as applicable, of any Releasee, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden (each, a “Claim”), which he now owns or holds or he has at any time heretofore owned or held or may in the future own or hold as against any of said Releasees (including, any Claim arising out of or in any way connected, in whole or in part, with Executive’s service as an officer, director, employee, member or manager of any Releasee, Executive’s separation from his position as an officer, director, employee, manager and/or member, as applicable, of any Releasee, or any other transactions, occurrences, acts or omissions or any loss, damage or injury in connection with Executive’s service as an officer, director, employee, member or manager of any Releasee or Executive’s separation

 

  

17

  

from his position as an officer, director, employee, manager and/or member, as applicable, of any Releasee), whether known or unknown, suspected or unsuspected, resulting from any act or omission by or on the part of said Releasees, or any of them, committed or omitted prior to the date of this Release Agreement including, without limiting the generality of the foregoing, any Claim under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act, the Family and Medical Leave Act of 1993, or any other federal, state or local law, regulation, or ordinance, or any Claim for severance pay, equity compensation, bonus, sick leave, holiday pay, vacation pay, life insurance, health or medical insurance or any other fringe benefit, workers’ compensation or disability (the “Release”); provided, however, that the foregoing Release does not apply to any obligation of the Company to Executive pursuant to any rights to the severance and other benefits payable under Section 5.3 of the Employment Agreement in accordance with the terms of the Employment Agreement.  In addition, this Release does not cover any Claim that cannot be so released as a matter of applicable law.  Executive acknowledges and agrees that he has received any and all leave and other benefits that he has been and is entitled to pursuant to the Family and Medical Leave Act of 1993.

 

3.         ADEA Waiver.  Executive expressly acknowledges and agrees that by entering into this Release Agreement, Executive is waiving any and all rights or Claims that he may have arising under the Age Discrimination in Employment Act of 1967, as amended (the “ADEA”), which have arisen on or before the date of execution of this Release Agreement.  Executive further expressly acknowledges and agrees that:

 

A.         In return for this Release Agreement, the Executive will receive consideration beyond that which the Executive was already entitled to receive before entering into this Release Agreement;

 

B.         Executive is hereby advised in writing by this Release Agreement to consult with an attorney before signing this Release Agreement;

 

C.         Executive has voluntarily chosen to enter into this Release Agreement and has not been forced or pressured in any way to sign it;

 

D.         Executive was given a copy of this Release Agreement on [_________________, 20__] and informed that he had [twenty one (21)/forty five (45)] days within which to consider this Release Agreement and that if he wished to execute this Release Agreement prior to expiration of such [21-day/45-day] period, he should execute the Endorsement attached hereto;

 

E.         Executive was informed that he had seven (7) days following the date of execution of this Release Agreement in which to revoke this Release Agreement, and this Release Agreement will become null and void if Executive elects revocation during that time.  Any revocation must be in writing and must be received by the Company during the seven-day revocation period.  In the event that Executive exercises his right of revocation, neither the Company nor Executive will have any obligations under this Release Agreement.

 

4.         Proceedings.  Executive acknowledges that he has not filed any complaint, charge, claim or proceeding, if any, against any of the Releasees before any local, state or federal agency, court or other body (each individually a “Proceeding”).  Executive (i) acknowledges that he will not initiate or cause to be initiated on his behalf any Proceeding and will not participate in any Proceeding, in each case, except as required by law and (ii) waives any right he may have to benefit in any manner from any relief (whether monetary or otherwise) arising out of any Proceeding, including any Proceeding conducted by the Equal Employment Opportunity Commission (the “EEOC”).  Further, Executive understands that, by executing this Release, he will be limiting the availability of certain remedies that he

 

  

18

  

may have against the Company and limiting also his ability to pursue certain claims against the Releasees.  Notwithstanding the above, nothing in Section 2 of this Release shall prevent Executive from (i) initiating or causing to be initiated on his behalf any complaint, charge, claim or proceeding against the Company before any local, state or federal agency, court or other body challenging the validity of the waiver of his claims under the ADEA contained in this Release or (ii) initiating or participating in an investigation or proceeding conducted by the EEOC, but Executive acknowledges, and Executive intends, that this Release Agreement  precludes him from receiving any consideration, payment, or relief as a result of any such Proceeding or Claim.

 

5.         No Transferred Claims.  Executive warrants and represents that the Executive has not heretofore assigned or transferred to any person not a party to this Release Agreement any released matter or any part or portion thereof and he shall defend, indemnify and hold the Company and each of its affiliates harmless from and against any claim (including the payment of attorneys’ fees and costs actually incurred whether or not litigation is commenced) based on or in connection with or arising out of any such assignment or transfer made, purported or claimed.

 

5.         Severability.  It is the desire and intent of the parties hereto that the provisions of this Release Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, if any particular provision of this Release Agreement shall be adjudicated by an arbitrator or court of competent jurisdiction to be invalid, prohibited or unenforceable under any present or future law, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Release Agreement or affecting the validity or enforceability of such provision in any other jurisdiction; furthermore, in lieu of such invalid or unenforceable provision there will be added automatically as a part of this Release Agreement, a legal, valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible.  Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Release Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

6.         Counterparts.  This Release Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

 

7.         Successors.  This Release Agreement is personal to Executive and shall not, without the prior written consent of the Company, be assignable by Executive.  This Release Agreement shall inure to the benefit of and be binding upon the Company and its respective successors and assigns and any such successor or assignee shall be deemed substituted for the Company under the terms of this Release Agreement for all purposes.  As used herein, “successor” and “assignee” shall include any person, firm, corporation or other business entity which at any time, whether by purchase, merger, acquisition of assets, or otherwise, directly or indirectly acquires the ownership of the Company, acquires all or substantially all of the Company’s assets, or to which the Company assigns this Release Agreement by operation of law or otherwise.

 

8.         Governing Law; Forum; Waiver of Jury Trial.  This Release Agreement shall be governed by and construed in accordance with the laws of the State of Delaware (without regard to any conflicts of laws principles thereof that would give effect to the laws of another jurisdiction), and the parties submit to arbitration provisions set forth in Section 11 of the Employment Agreement as if such Section were incorporated by reference and reprinted herein (with appropriate references to this Release Agreement as the context requires).  TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, THE EXECUTIVE HEREBY WAIVES, AND COVENANTS THAT

 

  

19

  

HE WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS RELEASE AGREEMENT OR ANY MATTERS CONTEMPLATED HEREBY.

 

9.         Amendment and Waiver.  The provisions of this Release Agreement may be amended and waived only with the prior written consent of the Company and Executive, and no course of conduct or failure or delay in enforcing the provisions of this Release Agreement shall be construed as a waiver of such provisions or affect the validity, binding effect or enforceability of this Release Agreement or any provision hereof.

 

10.        Descriptive Headings.  The descriptive headings of this Release Agreement are inserted for convenience only and do not constitute a part of this Release Agreement.

 

11.        Construction.  Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates.  The language used in this Release Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party.

 

12.        Nouns and Pronouns.  Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice-versa.

 

13.        Legal Counsel.  Each party recognizes that this is a legally binding contract and acknowledges and agrees that they have had the opportunity to consult with legal counsel of their choice.  Executive acknowledges and agrees that he has read and understands this Release Agreement completely, is entering into it freely and voluntarily, and has been advised to seek counsel prior to entering into this Release Agreement and he has had ample opportunity to do so.

 

[The Remainder of this Page is Intentionally Left Blank]

 

 

 

  

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The undersigned have read and understand the consequences of this Release Agreement and voluntarily sign it.  The undersigned declare under penalty of perjury under the laws of the State of [                 ] that the foregoing is true and correct.

 

EXECUTED this ________ day of ________ 20__, at_________________

 

	  	
“Executive”

	  	  
	 	 
	  	  	  
	  	
 

	 	 
Print Name: Peter J. Graham

	  	  
	 	 
	  	
DELCATH SYSTEMS, INC., a Delaware corporation

	  	  
	  	
By:

	  
	  	
Name:   

	  
	  	
Title:

	  

 

  

  

  

ENDORSEMENT

 

I, Peter Graham, hereby acknowledge that I was given [21/45] days to consider the foregoing Release Agreement and voluntarily chose to sign the Release Agreement prior to the expiration of the [21-day/45-day] period.

I declare under penalty of perjury under the laws of the United States and the State of [            ] that the foregoing is true and correct.

EXECUTED this  [____] day of [_____________ 20____].

 

	  	  
	  	  
	  	
Print Name: Peter J. Graham

 

 

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