Document:

EXHIBIT 10.36

 

INTERLINE BRANDS, INC.

 

Annual Election Notice 

 

To:          Interline Brands, Inc. (“Interline”)

 

The undersigned, being a duly elected non-employee
member of the Board of Directors of Interline, hereby irrevocably elects,
acknowledges and directs that:

 

1.     The portion of
the Annual Retainer payable to me for the period of April 1, 2006 to December
31, 2006 (i.e. $30,000), be paid to me, as follows:

 

a.             $                     
in cash;

 

b.             $
                     
in whole shares of the common stock, par value $0.01 of Interline (“Common
Stock”) (with any fractional shares paid in cash);

 

c.             $                     
in whole Deferred Stock Units (with any fractional Deferred Stock Units paid in
cash) subject to the terms of the Deferred Stock Unit Award Agreement attached
hereto as Exhibit A  (the “DSU
Agreement”).

 

2.     If applicable,
the Committee Chairmanship Fees payable to me for the period of April 1, 2006
to December 31, 2006 be paid to me, as follows:

 

a.             $                     
in cash;

 

b.             $
                     
in whole shares of Common Stock (with any fractional shares paid in cash);

 

c.             $                     
in whole Deferred Stock Units (with any fractional Deferred Stock Units paid in
cash) subject to the terms of the DSU Agreement.

 

I acknowledge that (i) the number of shares of Common Stock and/or
Deferred Stock Units I will receive for 2006 will be determined by first
dividing each dollar amount I elected for such shares of Common Stock and/or
Deferred Stock Units by three (3) and then by further dividing (x) the first
one third (1/3) by the Fair Market Value (as defined in Interline’s 2004 Equity
Incentive Plan) of a share of Common Stock on June 30, (b) the second one third
(1/3) by the Fair Market Value of a share of Common Stock on September 30, and
(z) the remaining one third (1/3) by the Fair Market Value of a share

 

 

of Common Stock on December 31, (ii) I must execute and return a copy
of the DSU Agreement with my Election Form in order to validly elect to receive
Deferred Stock Units, (iii) any Deferred Stock Units that I elect to receive
will be paid to me solely in accordance with the terms of the DSU Agreement,
and (iv) I may not make an election to receive Deferred Stock Units with
respect to any portion of the Annual Retainer or Committee Chairmanship Fees
that was earned by me prior to the date on which Interline receives this
completed Election Form (and that such portion shall be automatically allocated
ratably among my elections to receive cash or shares of Common Stock).

 

TO BE VALID, AN ELECTION TO RECEIVE DEFERRED STOCK
UNITS MUST BE RECEIVED BY INTERLINE NO LATER THAN APRIL 7, 2006.
If the Election Form is received later than such date, your election to receive
Deferred Stock Units will be deemed to be an election to receive shares of
Common Stock.

 

THIS ELECTION FORM WILL REMAIN IN EFFECT FOR 2006
ONLY.  INTERLINE WILL PROVIDE YOU WITH A
NEW ELECTION FORM FOR 2007 LATER THIS YEAR. 
TO BE VALID, THIS NEW 2007 ELECTION FORM MUST BE COMPLETED AND RECEIVED
BY INTERLINE BY NO LATER THAN DECEMBER 31, 2006.

 

 

Dated effective as of the
                
day of March, 2006.

 

 

	
   

  	
   

  	
   

  
	
  Name

  

 

 

Exhibit A

 

INTERLINE BRANDS, INC.

2004 EQUITY INCENTIVE PLAN

 

NON-EMPLOYEE DIRECTOR 

DEFERRED STOCK UNIT AWARD AGREEMENT

 

This
DEFERRED STOCK UNIT AWARD AGREEMENT (the “Agreement”), dated as of                   ,
2006, is made by and between Interline Brands, Inc. (the “Company”), and
                    
(the “Participant”).

 

R  E  C
I  T  A  L  S:

 

WHEREAS, the Company has adopted
the Interline Brands, Inc. 2004 Equity Incentive Plan (the “Plan”),
pursuant to Section 10 of which the Committee (or the Board acting as the
Committee) may grant Stock Bonus Awards denominated in Common Stock having such
terms and conditions as the Committee (or the Board acting as the Committee)
shall determine; and

 

WHEREAS, the Board has
determined that it is in the best interests of the Company and its stockholders
to grant to the Participant a Stock Bonus Award consisting of deferred stock
units (“Deferred Stock Units”) representing a right to the delivery of
Common Stock on a future date and/or event as described in this Agreement.

 

NOW, THEREFORE, for and in
consideration of the premises and the covenants of the parties contained in
this Agreement, and for other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties hereto, for themselves, their
successors and assigns, hereby agree as follows:

 

Grant of Deferred Stock Units.  The Company hereby grants to the Participant
on each of the grant dates set forth on Schedule 1 attached hereto  (as amended or supplemented by the Company
from time to time) the number of Deferred Stock Units set forth next to such
grant date, in each case on the terms and conditions hereinafter set
forth.  Each Deferred Stock Unit
represents the unfunded, unsecured right of the Participant to receive a
share of Common Stock (each a “Share”), on the date and/or event specified
herein.

 

Incorporation by Reference, Etc.  The provisions of the Plan are hereby
incorporated herein by reference.  Except
as otherwise expressly set forth herein, this Agreement shall be construed in
accordance with the provisions of the Plan and any capitalized terms not
otherwise defined in this Agreement shall have the definitions set forth in the
Plan.  The Board shall have final
authority to interpret and construe the Plan and this Agreement and to make any
and all determinations under them, and its decision shall be binding and
conclusive upon the Participant and his legal representative in respect of any
questions arising under the Plan or this Agreement.  By accepting the award of Deferred Stock
Units, the Participant agrees and acknowledges that the Participant has
received and read a copy of the Plan.

 

 

Payment of Shares.

 

The
Company shall, subject to the remainder of this Agreement, transfer to the
Participant a number of Shares equal to the number of Deferred Stock Units
granted to the Participant under this Agreement as soon as reasonably
practicable after the date on which the Participant ceases to serve as a member
of the Board or, if later, the date on which the Participant experiences a
“separation from service” with the Company within the meaning of Section 409A
of the Code (the “Payment Date”), in whole Shares only with the Participant
receiving a cash payment equal to the Fair Market Value of any fractional Share
on or about the transfer date.

 

In
the event of a Change in Control prior to the Payment Date, the Company shall
transfer to the Participant Shares a number of Shares equal to the number of
Deferred Stock Units granted to the Participant immediately prior to the Change
in Control; provided that the Board may determine that, in lieu of
Shares and/or fractional Shares, the Participant shall receive a cash payment
equal to the Fair Market Value of such Shares (or fractional Shares, as the
case may be) on such date.

 

Upon
each transfer of Shares in accordance with Sections 3(a) or 2(b) of this
Agreement, the Deferred Stock Units with respect to which such Shares have been
transferred hereunder shall be extinguished.

 

Dividends.  If
on any date while Deferred Stock Units are outstanding hereunder the Company
shall pay any dividend on the Shares (other than a dividend payable in Shares),
the number of Deferred Stock Units granted to the Participant shall, as of such
dividend payment date, be increased by a number of Deferred Stock Units equal
to: (a) the product of (x) the number of Deferred Stock Units held by the
Participant as of the related dividend record date, multiplied by (y) the per
Share amount of any cash dividend (or, in the case of any dividend payable in
whole or in part other than in cash, the per Share value of such dividend, as
determined in good faith by the Board), divided by (b) the Fair Market Value of
a Share on the payment date of such dividend. 
In the case of any dividend declared on Shares that is payable in the
form of Shares, the number of Deferred Stock Units granted to the Participant
shall be increased by a number equal to the product of (I) the aggregate number
of Deferred Stock Units that have been held by the Participant through the
related dividend record date, multiplied by (II) the number of Shares
(including any fraction thereof) payable as a dividend on a Share.  Shares shall be transferred with respect to
all additional Deferred Stock Units granted pursuant to this Section 4 at the
same time as Shares are transferred with respect to the Deferred Stock Units to
which such additional Deferred Stock Units were attributable.

 

Adjustments Upon Certain Events. 
In the event of any change in the outstanding Shares by reason of any
stock split, reorganization, recapitalization, merger, consolidation,
amalgamation, spin-off or combination transaction or exchange of Shares or
other corporate exchange, or any distribution to shareholders of Shares (other
than any dividends covered by Section 4 above) or any transaction similar to
the foregoing

 

 

(collectively, an “Adjustment Event”), the Board may, in its sole
discretion and without liability to any person, adjust any Shares or Deferred
Stock Units subject to this Agreement to reflect such Adjustment Event;
provided that such adjustment shall be consistent with the requirements of
Section 409A of the Code and any applicable guidance thereunder.

 

No Right to Continued Service as a Director.  Neither the Plan nor this Agreement shall be
construed as giving the Participant the right to continue to serve as a
director of the Company.  Further, the
Company may at any time cease to nominate the Participant for reelection to the
Board, free from any liability or any claim under the Plan or this Agreement,
except as otherwise expressly provided herein.

 

No Acquired Rights. 
In participating in the Plan, the Participant acknowledges and accepts
that the Board has the power to amend or terminate the Plan at any time and
that the opportunity given to the Participant to participate in the Plan is
entirely at the discretion of the Board and does not obligate the Company or
any of its Affiliates to offer such participation in the future (whether on the
same or different terms).

 

No Funding; No
Rights of a Shareholder.  All Deferred
Stock Units granted pursuant to this Agreement shall continue for all purposes
to be a part of the general assets of the Company.  The Participant’s interest in the Deferred
Stock Units shall make the Participant only a general, unsecured creditor of
the Company.  The Participant shall not
have any rights as a shareholder of the Company until the Shares in question
have been registered in the Company’s register of shareholders.

 

Legend on Certificates.  Any Shares issued or transferred to the
Participant pursuant to Section 3 of this Agreement shall be subject to such
stop transfer orders and other restrictions as the Board may deem advisable under
the Plan or the rules, regulations, and other requirements of the Securities
and Exchange Commission, any stock exchange upon which such Shares are listed,
and any applicable Federal or state laws or relevant securities laws of the
jurisdiction of the domicile of the Participant, and the Committee may cause a
legend or legends to be put on any certificates representing such Shares to
make appropriate reference to such restrictions.

 

Transferability. 
Deferred Stock Units may not be assigned, alienated, pledged, attached,
sold or otherwise transferred or encumbered by the Participant otherwise than
by will or by the laws of descent and distribution, and any purported
assignment, alienation, pledge, attachment, sale, transfer or encumbrance not
permitted by this Section 10 shall be void and unenforceable against the
Company or any Affiliate.

 

Governing Law.  This Agreement shall be construed
and interpreted in accordance with the laws of New York without regard to
principles of conflicts of law thereof, or principals of conflicts of laws of
any other jurisdiction which could cause the application of the laws of any
jurisdiction other than the state of New York.

 

 

Headings.  The
headings of the Sections hereof are provided for convenience only and are not
to serve as a basis for interpretation or construction, and shall not
constitute a part, of this Agreement.

 

Section 409A. 
Notwithstanding anything in this Agreement to the contrary, any payments
hereunder that would be subject to an additional or accelerated income tax
under Section 409A of the Code shall be deferred until the earliest date that
such payments may be made without the imposition of such tax.

 

Successors.  The
terms of this Agreement shall be binding upon and inure to the benefit of the
Company and its successors and assigns, and of the Participant and the
beneficiaries, executors, administrators, heirs and successors of the
Participant.

 

Notices.  Any
notice hereunder to any party shall be effective upon receipt (or refusal of
receipt) and shall be in writing and delivered personally or sent by telecopy,
or certified or registered mail, postage prepaid, as follows:

 

If
to the Company:

 

Interline Brands, Inc. 

801 West Bay Street

Jacksonville, FL 32204

Attention:  General Counsel

 

If to the Participant, to the address set forth on the
signature page hereto or at any other address as any party shall have specified
by notice in writing to the other party.

 

Severability. 
The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement, and each other provision of this Agreement shall be severable and
enforceable to the extent permitted by law.

 

 

Signature in Counterparts.  This Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

 

IN WITNESS WHEREOF, the parties
hereto have executed this Agreement as of the day first written above.

 

	
   

  	
  INTERLINE
  BRANDS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael J. Grebe

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Participant

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
							

 

 

SCHEDULE 1

 

	
  Grant Date

  	
   

  	
  Dollar Amount Elected

  	
   

  	
  Number of Deferred Stock 

  Units Granted Based on 

  Grant Date Fair Market 

  Value

  	
   

  
	
  June 30, 2006

  	
   

  	
  $

  	
      

  	
   

  	
   

  	
   

  
	
  September 30,
  2006

  	
   

  	
  $

  	
     

  	
   

  	
   

  	
   

  
	
  December 31,
  2006

  	
   

  	
  $

  	
     

  	
   

  	
   

  	
   

  

 

Note:  This Schedule 1 will be updated by the
Company promptly following each of the above-described Grant Dates.Exhibit 10.1

 

ALLOS THERAPEUTICS, INC.

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT is
made and entered into as of this 9th day of March, 2006, by and among Allos
Therapeutics, Inc., a Delaware corporation (the “Company”), and Paul L. Berns
(“Employee”).

W I T N E S S E T H :

WHEREAS, the Company desires
to employ Employee and to enter into an agreement embodying the terms of such
employment (this “Agreement”) and Employee desires to enter into this
Agreement and to accept such employment, subject to the terms and provisions of
this Agreement.

NOW, THEREFORE, in
consideration of the promises and mutual covenants contained herein and for
other good and valuable consideration, the receipt and sufficiency of which are
mutually acknowledged, the Company and Employee hereby agree as follows:

Section 1.               Definitions.

(a)           “Accrued
Obligations” shall mean (i) any Base Salary and Annual Bonus earned but
unpaid prior to the date of a termination of Employee’s employment with the
Company pursuant to Section 8 below, (ii) all accrued but unused personal time,
(iii) any unreimbursed business expenses pursuant to Section 7 below and (iv)
other employee benefits to which Employee is entitled upon termination of
employment in accordance with the terms of the plans and programs of the
Company.

(b)           “Affiliate”
shall mean, as to any Person, any other Person that controls, is controlled by,
or is under common control with, such Person.

(c)           “Annual
Bonus” shall have the meaning set forth in Section 4(b) below.

(d)           “Base
Salary” shall mean the salary, and any increase thereof, provided for in
Section 4(a) below.

(e)           “Board”
shall mean the Board of Directors of the Company.

(f)            “Cause”
shall mean the occurrence of one or more of the following: (i) Employee’s
conviction of a felony involving moral turpitude or dishonesty; (ii) Employee’s
knowing and active participation in a fraud or significant act of dishonesty
against the Company; (iii) Employee’s intentional and material damage to the
Company’s property or (iv) Employee’s material breach of this Agreement, the
Company’s written policies, or the Proprietary Information Agreement that is
demonstrably willful and deliberate on Employee’s part is committed in bad
faith or without reasonable belief that such breach is in the best interest of
the Company, and is not remedied by Employee within thirty (30) days of written
notice of such breach from the Board, which written notice, to be effective,
must be provided to Employee within sixty (60) days after the date on which the
Company first becomes aware of the 

occurrence
of such event.  Notwithstanding anything
herein to the contrary, Employee’s physical or mental Disability or death shall
not constitute Cause.

(g)           “Change
in Control” means

(i)              a sale, lease, exchange or other
transfer in one transaction or a series of related transactions of all or
substantially all of the assets of the Company (other than the transfer of the
Company’s assets to a majority-owned subsidiary corporation);

(ii)             a merger or consolidation in which
the Company is not the surviving corporation (unless the holders of the Company’s
outstanding voting stock immediately prior to such transaction own, immediately
after such transaction, securities representing at least fifty percent (50%) of
the voting power of the corporation or other entity surviving such
transaction);

(iii)            a reverse merger in which the
Company is the surviving corporation but the shares of the Company’s common
stock outstanding immediately preceding the merger are converted by virtue of
the merger into other property, whether in the form of securities, cash or
otherwise (unless the holders of the Company’s outstanding voting stock
immediately prior to such transaction own, immediately after such transaction,
securities representing at least fifty percent (50%) of the voting power of the
Company);

(iv)            the acquisition by any individual,
entity or group (a “Person”), including any “person” within the meaning of
Section 13(d) (3) or 14(d) (2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), of beneficial ownership within the meaning of
Rule 13d-3 promulgated under the Exchange Act, of 50% or more of either (1) the
then outstanding shares of common stock of the Company (the “Outstanding Common
Stock”) or (2) the combined voting power of the then outstanding securities of
the Company entitled to vote generally in the election of directors (the “Outstanding
Voting Securities”); excluding, however, the following: (A) any acquisition
directly from the Company (excluding any acquisition resulting from the
exercise of an exercise, conversion or exchange privilege unless the security
being so exercised, converted or exchanged was acquired directly from the
Company), (B) any acquisition by the Company, (C) any acquisition by an
employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company or (D) any acquisition by any
corporation if the holders of the Company’s outstanding voting stock
immediately prior to such transaction own, immediately after such transaction,
securities representing at least fifty percent (50%) of the voting power of the
corporation or other entity surviving such transaction; provided further that,
for purposes of clause (B), if any Person (other than the Company or any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company) shall become the beneficial owner
of 50% or more of the Outstanding Common Stock or 50% or more of the
Outstanding Voting Securities by reason of an acquisition by the Company and
such Person shall, after such acquisition by the Company, become the beneficial
owner of any additional shares of the Outstanding Common Stock or any
additional Outstanding Voting Securities and such beneficial 

 

2

 

ownership is publicly
announced, such additional beneficial ownership shall constitute a Change in
Control; or

(v)             individuals who, as of the date
hereof, constitute the Board (the “Incumbent Board”) cease for any reason to
constitute at least a majority of such Board; provided, that any individual who
becomes a director of the Company subsequent to the date hereof whose election,
or nomination for election by the Company’s stockholders, was approved by the
vote of at least a majority of the directors then comprising the Incumbent
Board shall be deemed to have been a member of the Incumbent Board; and
provided further, that any individual who was initially elected as a director
of the Company as a result of an actual or threatened solicitation by a Person
other than the Company for the purpose of opposing a solicitation by any other
Person with respect to the election or removal of directors, or any other
actual or threatened solicitation of proxies or consents by or on behalf of any
Person other than the Board shall not be deemed a member of the Incumbent Board.

(h)           “Code”
shall mean the Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder.

(i)            “Commencement
Date” shall mean 5:00 p.m. Mountain Standard Time on  March 9, 2006.

(j)            “Company”
except as otherwise expressly set forth herein, shall have the meaning set
forth in the preamble hereto.

(k)           “Competitive
Activities” shall mean the research, development, marketing or sale of drug
and nondrug products which are competitive with (i) those products being
marketed by the Company at the time of Employee’s termination of employment
with the Company or (ii) those products that Employee was aware were under
development by the Company and consuming material resources of the Company.

(l)            “Confidential
Information” shall mean confidential or proprietary trade secrets, client
lists, client identities and information, information regarding service
providers, investment methodologies, marketing data or plans, sales plans,
management organization information, operating policies or manuals, business
plans or operations or techniques, financial records or data, or other
financial, commercial, business or technical information (i) relating to the
Company or any of its subsidiaries, or (ii) that the Company or any of its
subsidiaries may receive belonging to suppliers, customers or others who do
business with the Company, but shall exclude any information that is in the
public domain or hereafter enters the public domain, in each case without the
breach by Employee of Section 10(a) below.

(m)          “Disability”
shall mean any physical or mental disability or infirmity that prevents the
performance of Employee’s duties for a period of (i) ninety (90) consecutive
days or (ii) one hundred twenty (120) non-consecutive days during any twelve
(12) month period and which entitles Employee to benefits under the long-term
disability plan maintained by the Company for its senior executives.  Any question as to the existence, extent or
potentiality of Employee’s Disability upon which Employee and the Company
cannot agree shall be determined 

3

 

by a
qualified, independent physician selected by the Company and approved by
Employee (which approval shall not be unreasonably withheld).  The determination of any such physician shall
be final and conclusive for all purposes of this Agreement.

(n)           “Employee”
shall have the meaning set forth in the preamble hereto.

(o)           “Good
Reason” shall mean any one of the following events which occurs on or after
the commencement of Employee’s employment without Employee’s written consent:
(i) any reduction of Employee’s then existing Base Salary or Target Bonus; (ii)
any request by the Company (or any surviving or acquiring corporation) that the
Employee relocate to a work site that would increase Employee’s one-way commute
distance by more than thirty-five (35) miles from his then principal residence,
(iii) any of a diminution in Employee’s duties or responsibilities with the
Company, a change in Employee’s titles or offices with the Company or any
removal or involuntary termination of Employee from the Company otherwise than
as expressly permitted by this Agreement, (iv) the failure of the Company to
obtain the assumption agreement from any successor as contemplated in Section 17(a)
or (v) a material breach of this Agreement.

(p)           “Interfering
Activities” shall mean (i) encouraging, soliciting, or inducing, or in any manner
attempting to encourage, solicit, or induce, any Person employed by the Company
or any subsidiary thereof to terminate such Person’s employment with the
Company or such subsidiary; (ii) hiring any Person who was employed by
the Company or any subsidiary thereof within the six (6) month period prior to
the date of such hiring; or (iii) encouraging, soliciting or inducing, or in any manner attempting to
encourage, solicit or induce any client, account, customer, licensee or other
business relation of the Company or any subsidiary thereof to cease doing
business with or reduce the amount of business conducted with (including by
providing similar services or products to any such Person) the Company or such
subsidiary, or in any way interfere with the relationship between any such
client, account, customer, licensee or business relation and the Company or
such subsidiary.

(q)           “Options”
shall have the meaning set forth in Section 4(d) below.

(r)            “Person”
shall mean any individual, corporation, partnership, limited liability company,
joint venture, association, joint-stock company, trust (charitable or
non-charitable), unincorporated organization or other form of business entity.

(s)           “Plan”
shall mean the Company’s 2000 Stock Incentive Compensation Plan.

(t)            “Proprietary
Information Agreement” shall mean the Proprietary Information, Inventions,
Non-Competition, and Non-Solicitation Agreement attached hereto as Exhibit A.

(u)           “Restricted
Area” means, during Employee’s employment hereunder, any State of the United
States of America or any other jurisdiction in which the Company or its
subsidiaries engage (or have committed plans to engage) in business or, following
termination of Employee’s employment, any jurisdiction in which the Company or
its subsidiaries were 

4

 

engaged in
business at the time of such termination or in which they have committed at the
time of such termination to be actively engaged within four years of such
termination.

(v)           “Restricted
Period” shall mean the period commencing on the Commencement Date and
ending on the twelve (12) month anniversary of Employee’s termination of
employment hereunder for any reason.

(w)          “Restricted
Stock” shall have the meaning set forth in Section 4(e) below.

(x)            “Target Bonus” shall have the
meaning set forth in Section 4(b) below.

Section 2.               Acceptance and Term of Employment.

The Company agrees to employ
Employee and Employee agrees to serve the Company on the terms and conditions
set forth herein.  It is understood and
agreed by the Company and Employee that this Agreement does not contain any
promise or representation concerning the duration of Employee’s employment with
the Company.  Employee specifically
acknowledges that his employment with the Company is “at-will” and may be
terminated by Employee or the Company at any time pursuant to Section 8 below.

Section 3.               Position, Duties and Responsibilities;
Place of Performance.

(a)           Employee
shall be employed and serve as the President and Chief Executive Officer of the
Company (together with such other position or positions consistent with
Employee’s title as the Board shall specify from time to time) and shall have
such duties typically associated with such title.  Subject to the foregoing, Employee also
agrees to serve as an officer and/or director of the Company or any parent or
subsidiary of the Company, as specified by the Board, in each case without
additional compensation.  Employee shall
report directly and exclusively to the Board.  In addition, the Company shall
promptly appoint Employee to the Board and thereafter nominate Employee as a
nominee for election to the Board and solicit proxies for his election for so
long as he continues to serve as President and Chief Executive Officer.

(b)           Subject
to the terms and conditions set forth in this Agreement, Employee shall devote
his full business time, attention, and efforts to the
performance of his duties under this Agreement and shall not engage in any
other business or occupation during his employment with the Company pursuant to
this Agreement, including, without limitation, any activity that (x) conflicts
with the interests of the Company or its subsidiaries, (y) interferes with the
proper and efficient performance of his duties for the Company, or (z) interferes
with the exercise of his judgment in the Company’s best interests.  Notwithstanding the foregoing, nothing herein
shall preclude Employee from (i) serving, with the prior written consent of the
Board, as a member of the board of directors or advisory boards (or their
equivalents in the case of a non-corporate entity) of non-competing businesses
and charitable organizations, (ii) engaging in charitable activities and
community affairs, and (iii) subject to the terms and conditions set forth in
Section 10 hereof, managing his personal investments and affairs; provided,
however, that the activities set out in clauses (i), (ii) and (iii)
shall be limited by Employee so as not to materially interfere, individually or
in the aggregate, with the performance of his duties and responsibilities
hereunder.

 

5

 

Section 4.               Compensation.  Employee shall be entitled to the following
compensation:

(a)           Base
Salary.  Employee shall be paid an
annualized Base Salary, payable in accordance with the regular payroll
practices of the Company, of not less than $450,000.  Such Base Salary shall be reviewed annually,
and shall be subject to such annual increases, if any, as shall be determined
by the Board.

(b)           Annual
Bonus.  Employee shall be eligible
for an annual incentive bonus award determined by the Board in respect of each
fiscal year during which Employee remains employed by the Company pursuant to
this Agreement (the “Annual Bonus”). 
The target Annual Bonus for each fiscal year shall be not less than 50%
of Base Salary (the “Target Bonus”). 
Employee’s Annual Bonus for 2006 shall be $225,000, prorated based on
the number of days worked in that year. 
The Annual Bonus shall be paid to Employee at the same time as annual
bonuses are generally payable to other senior executives of the Company, but in
no event later than the date which is two and one-half (2 1⁄2) months following
the end of the fiscal year to which such Annual Bonus relates.

(c)           Relocation.  Subject to the submission of properly
documented receipts and the terms of the Company’s relocation program, the
Company shall reimburse Employee for (i) customary closing costs incurred by
Employee in connection with the sale of his residence in Wisconsin (including
brokerage commissions) and his purchase of a new residence in Colorado, in each
case including reasonable attorneys’ fees, (ii) customary and reasonable costs
of moving Employee and his family, including their personal effects, to their
new residence in Colorado, and (iii) customary and reasonable commuting and
temporary living expenses for Employee and his family for up to six (6) months
following the Commencement Date.  Also,
to the extent that any payments or reimbursements described in clauses (i),
(ii) or (iii) of this Section 4(c) cause Employee to incur additional taxes (“Additional
Taxes”), upon substantiation of the amount of such Additional Taxes, the
Company shall pay Employee an additional “gross-up” payment in an amount such
that, after reduction by all taxes imposed on such gross-up payment, Employee
retains an amount equal to the Additional Taxes.

(d)           Options.  As of the Commencement Date, the Company
shall grant Employee options to purchase 700,000 shares of Common Stock of the
Company, at an exercise price equal to the Fair Market Value (as such term is
defined in the Plan) on the Commencement Date (the “Options”).  Provided that Employee is employed by the
Company on the applicable vesting date, the Options shall vest as to 25% on the
first anniversary and the remainder shall vest ratably over the thirty-six
month period thereafter, and shall otherwise be subject to the terms and
conditions of the Plan and a stock option agreement entered into between the
parties hereto, containing customary terms for similarly situated employees of
the Company.

(e)           Restricted Stock.  As of the Commencement Date, the Company
shall grant Employee 300,000 shares of restricted stock of the Company (the “Restricted
Stock”).  75,000 shares of Restricted
Stock shall vest on each of the first four anniversaries of the Commencement
Date, subject to Employee’s continuous employment through such vesting
dates.  The Restricted Stock shall be
subject to the terms and conditions of the Plan and a 

 

6

 

restricted stock agreement entered into between the
parties hereto, containing customary terms for similarly situated employees of
the Company.

Section 5.               Employee Benefits.

During Employee’s employment
with the Company, Employee shall be entitled to participate in health,
insurance, retirement and other perquisites and benefits generally provided to
other senior executives of the Company that are made available from time to
time.  Employee shall also be entitled to
the same number of holidays and sick days as are generally allowed to senior
executives of the Company and to the maximum amount of vacation allowed to
executive officers of the Company, in accordance with Company policies in
effect from time to time.  Employee shall
also be eligible to receive disability insurance at the expense of the Company.

Section 6.               “Key-Man” Insurance.

At any time during Employee’s
employment with the Company, the Company shall have the right to insure the
life of Employee for the sole benefit of the Company, in such amounts, and with
such terms, as it may determine.  All
premiums payable thereon shall be the obligation of the Company.  Employee shall have no interest in any such policy,
but agrees to reasonably cooperate with the Company in taking out such insurance
by submitting to reasonable physical examinations, supplying all information
reasonably required by the insurance company, and executing all necessary
documents, provided that no financial obligation or liability is imposed on
Employee by any such documents.

Section 7.               Reimbursement of Business Expenses.

Employee is authorized to incur reasonable business
expenses in carrying out his duties and responsibilities under this Agreement
and the Company shall promptly reimburse him for all such reasonable business
expenses incurred in connection with carrying out the business of the Company,
subject to documentation in accordance with the Company’s policy, as in effect
from time to time.

Section 8.               Termination of Employment.

(a)           General.  Employee’s employment with the Company shall
terminate upon the earliest to occur of (i) Employee’s death, (ii) a
termination by reason of a Disability, (iii) a termination by the Company with
or without Cause, or (iv) a termination by Employee with or without Good Reason.  Upon any termination of Employee’s employment
for any reason, except as may otherwise be requested by the Company in writing
and agreed upon in writing by Employee, Employee shall resign from any and all
directorships, committee memberships or any other positions Employee holds with
the Company or any of its subsidiaries or Affiliates.

(b)           Termination due to Death or
Disability.  Employee’s employment
shall terminate automatically upon his death. 
The Company may terminate Employee’s employment immediately upon the
occurrence of a Disability, such termination to be effective upon Employee’s
receipt of written notice of such termination. 
In the event Employee’s employment is terminated due to his death or
Disability, Employee or his estate or his beneficiaries, as the case may be,
shall be entitled to the Accrued Obligations, which shall be paid within thirty
(30) 

 

7

 

days after the date of such termination.  Except as set forth in this Section 8(b),
following Employee’s termination by reason of his death or Disability, Employee
shall have no further rights to any compensation or any other benefits under
this Agreement; provided, that the Options and Restricted Stock shall
remain subject to the terms and conditions of the Plan and the applicable stock
option agreement or restricted stock agreement.

(c)           Termination by the Company for
Cause.  In the event the Company
terminates Employee’s employment for Cause, he shall be entitled only to the
Accrued Obligations, which shall be paid within thirty (30) days after the date
of such termination.  Following such
termination of Employee’s employment for Cause, except as set forth in this
Section 8(c), Employee shall have no further rights to any compensation or any
other benefits under this Agreement; provided, that the Options and
Restricted Stock shall remain subject to the terms and conditions of the Plan
and the applicable stock option agreement or restricted stock agreement.

(d)           Termination
by the Company without Cause.  The
Company may terminate Employee’s employment at any time without Cause,
effective upon Employee’s receipt of written notice of such termination.  In the event Employee’s employment is
terminated by the Company without Cause (other than due to death or
Disability), Employee shall be entitled to:

(i)              the Accrued Obligations, which
shall be paid within thirty (30) days after the date of Employee’s termination
of employment;

(ii)             Employee’s Target Bonus for the
year in which Employee’s employment terminates, prorated through the date on
which Employee’s employment terminates;

(iii)            an amount equal to 1.5 times Employee’s
annual Base Salary then in effect, which, subject to Section 16, shall be
payable in monthly installments over the 18-month period following the date of
Employee’s termination of employment;

(iv)            an amount equal to 1,5 times Employee’s
Annual Bonus, including any portion of such bonus deferred, for the year
preceding the year in which the termination of Employee’s employment occurs (unless
such termination occurs in 2006, in which case the Annual Bonus used for such
payment purposes will be equal to the Annual Bonus payable for 2006), which
shall be payable in a lump sum within thirty (30) days after the date of
Employee’s termination of employment (or such later time as shall be required
under Section 16);

(v)             all vested Options and Restricted
Stock shall be treated in accordance with the terms of the Plan and the
applicable stock option agreement or restricted stock agreement;

(vi)            the Company shall pay the premiums
for Employee and his dependents of Employee’s group health insurance COBRA
continuation coverage for twelve months following the date of Employee’s
termination of employment, or, if earlier, until the date on which Employee becomes
eligible to receive comparable benefits from another employer; and

 

8

 

(vii)           for a period of twelve months
commencing on the date of termination of Employee’s employment, Employee shall
receive outplacement assistance services from an outplacement agency selected
by Employee and the Company shall pay all costs of such services; provided
that such costs shall not exceed $15,000 in the aggregate.

Notwithstanding the
foregoing, the payments and benefits described in subsections (ii) through (vii)
above shall immediately cease, and the Company shall have no further
obligations to Employee with respect thereto, in the event that Employee
breaches any provision of Section 10 or the Proprietary Information Agreement.

Following such termination
of Employee’s employment by the Company without Cause, except as set forth in
this Section 8(d), Employee shall have no further rights to any compensation or
any other benefits under this Agreement.

(e)           Termination by Employee with Good
Reason.  Employee may terminate his
employment with Good Reason by providing the Company thirty (30) days’ written
notice setting forth with reasonable specificity the event that constitutes
Good Reason, which written notice, to be effective, must be provided to the
Company within sixty (60) days after the date on which Employee first becomes
aware of the occurrence of such event. 
During such thirty (30) day notice period, the Company shall have a cure
right (if curable), and if not cured within such period, Employee’s termination
will be effective upon the date immediately following the expiration of the
thirty (30) day notice period, and Employee shall be entitled to the same
payments and benefits as provided in Section 8(d) above for a termination
without Cause, it being agreed that Employee’s right to any such payments and
benefits shall be subject to the same terms and conditions as described in
Section 8(d) above.  Following such
termination of Employee’s employment by Employee with Good Reason, except as
set forth in this Section 8(e), Employee shall have no further rights to any
compensation or any other benefits under this Agreement.

(f)            Termination by Employee without
Good Reason.  Employee may terminate
his employment without Good Reason by providing the Company thirty (30) days’
written notice of such termination.  In
the event of a termination of employment by Employee under this Section 8(f),
Employee shall be entitled only to the Accrued Obligations; provided,
that the Options and Restricted Stock shall remain subject to the terms and
conditions of the Plan and the applicable stock option agreement or restricted
stock agreement.  In the event of
termination of Employee’s employment under this Section 8(f), the Company may,
in its sole and absolute discretion, by written notice accelerate such date of
termination and still have it treated as a termination without Good
Reason.  Following such termination of
Employee’s employment by Employee without Good Reason, except as set forth in
this Section 8(f), Employee shall have no further rights to any compensation or
any other benefits under this Agreement.

(g)           Change in Control.  Notwithstanding anything herein to the
contrary, if the Company terminates Employee’s employment without Cause or
Employee resigns for Good Reason within one (1) month prior to or two (2) years
following a Change in Control, in lieu of 

 

9

 

any payments that Employee would have been entitled to
receive pursuant to Section 8(d) or Section 8(e) herein, Employee shall be
entitled to receive:

(i)            the Accrued Obligations, which shall
be paid within thirty (30) days after the date of Employee’s termination of
employment;

(ii)             Employee’s Target Bonus for the
year in which Employee’s employment terminates, prorated through the date on
which Employee’s employment terminates;

(iii)            a lump-sum cash payment in an amount
equal to (A) two (2) times Employee’s highest annual Base Salary in effect
during the 12-month period prior to the date of termination, plus (B) two (2)
times Employee’s highest annualized (for any fiscal year consisting of less
than 12 full months or with respect to which Employee has been employed by the
Company for less than 12 full months) Annual Bonus, paid or payable, including
by reason of any deferral, to Employee in respect of the five fiscal years of
the Company (or such portion thereof during which Employee performed services
for the Company if Employee shall have been employed by the Company for less than
such five fiscal year period) immediately preceding the fiscal year in which
the Change in Control occurs;

(iv)          immediate vesting of all outstanding
Options and Restricted Stock, and the extension of the option exercise period
for twenty-four (24) months;

(v)           for a period of eighteen (18) months,
commencing on the date of Employee’s termination of employment, the Company
shall continue to keep in full force and effect all policies of medical,
accident, disability and life insurance with respect to Employee and his
dependents with the same level of coverage, upon the same terms and otherwise
to the same extent as such policies shall have been in effect immediately prior
to the date of such termination and the Company shall pay all costs of the
continuation of such insurance coverage; and

(vi)            for a period of twelve months
commencing on the date of termination of Employee’s employment, Employee shall
receive outplacement assistance services from an outplacement agency selected
by Employee and the Company shall pay all costs of such services; provided
that such costs shall not exceed $15,000 in the aggregate.

Following such termination
of Employee’s employment by the Company without Cause or by Employee for Good
Reason within one (1) month prior to or two years following a Change in
Control, except as set forth in this Section 8(g), Employee shall have no
further rights to any compensation or any other benefits under this Agreement.

(h)           Release.  Notwithstanding any provision herein to the
contrary, the Company may require that, prior to payment of any amount or
provision of any benefit pursuant to subsections (d), (e) or (g) of this
Section 8 (other than the Accrued Obligations), Employee shall have executed a
general release in favor of the Company and its subsidiaries and related 

 

10

 

parties in the form attached hereto as Exhibit B, and
any waiting periods contained in such release shall have expired.

Section 9.               Certain Additional Payments by the Company.

(a)           Anything in this Agreement to the
contrary notwithstanding, in the event it shall be determined that any payment
or distribution by the Company to or for the benefit of Employee (whether paid
or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a “Payment”) would be subject
to the excise tax imposed by Section 4999 of the Code, or any interest or
penalties are incurred by Employee with respect to such excise tax (such excise
tax, together with any such interest and penalties, are hereinafter
collectively referred to as the “Excise Tax”), then Employee shall be
entitled to receive an additional payment (a “Gross-Up Payment”) in an amount
such that after payment by Employee of all taxes (including any interest or
penalties imposed with respect to such taxes), including, without limitation,
any income taxes (and any interest and penalties imposed with respect thereto)
and Excise Tax imposed upon the Gross-Up Payment, Employee retains an amount of
the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.  Notwithstanding the foregoing provisions of
this Section 9(a), if it shall be determined that Employee is entitled to a
Gross-Up Payment, but that Employee, after taking into account the Payments and
the Gross-Up Payment, would not receive a net after-tax benefit (taking into
account both income taxes and any Excise Tax) which is at least ten percent
(10%) greater than the net after-tax proceeds to Employee resulting from an
elimination of the Gross-Up Payment and a reduction of the Payments, in the
aggregate, to an amount (the “Reduced Amount”) that is one dollar less
than the smallest amount that would give rise to any Excise Tax, then no
Gross-Up Payment shall be made to Employee and the Payments, in the aggregate,
shall be reduced to the Reduced Amount.

(b)           Subject
to the provisions of Section 9(c), all determinations required to be made under
this Section 9, including whether and when a Gross-Up Payment is required and
the amount of such Gross-Up Payment and the assumptions to be utilized in
arriving at such determination, shall be made by the Company’s public
accounting firm (the “Accounting Firm”) which shall provide detailed
supporting calculations both to the Company and Employee within 15 business
days of the receipt of notice from Employee that there has been a Payment, or
such earlier time as is requested by the Company.  In the event that the Accounting Firm is serving
as accountant or auditor for the individual, entity or group effecting the
Change in Control, the Company and Employee shall jointly appoint another
nationally recognized public accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to as the
Accounting Firm hereunder).  All fees and
expenses of the Accounting Firm shall be borne solely by the Company.  Any Gross-Up Payment, as determined pursuant
to this Section 9, shall be paid by the Company to Employee within five days of
the receipt of the Accounting Firm’s determination.  If the Accounting Firm determines that no
Excise Tax is payable by Employee, it shall furnish Employee with a written
opinion that failure to report the Excise Tax on Employee’s applicable federal
income tax return would not result in the imposition of a negligence or similar
penalty.  Any determination by the
Accounting Firm shall be binding upon the Company and Employee.  As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the 

 

11

 

Company should have been made (“Underpayment”),
consistent with the calculations required to be made hereunder.  In the event that the Company exhausts its
remedies pursuant to Section 9(c) and Employee thereafter is required to make a
payment of any Excise Tax, the Accounting Firm shall determine the amount of
the Underpayment that has occurred and any such Underpayment shall be promptly
paid by the Company to or for the benefit of Employee.

(c)           Employee
shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of the
Gross-Up Payment.  Such notification
shall be given as soon as practicable but no later than 10 business days after Employee
is informed in writing of such claim and shall apprise the Company of the
nature of such claim and the date on which such claim is requested to be
paid.  Employee shall not pay such claim
prior to the expiration of the 30-day period following the date on which Employee
gives such notice to the Company (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due).  If the Company notifies Employee in writing
prior to the expiration of such period that it desires to contest such claim, Employee
shall:

(i)            give the Company any information
reasonably requested by the Company relating to such claim,

(ii)           take such action in connection with
contesting such claim as the Company shall reasonably request in writing from
time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

(iii)          cooperate with the Company in good
faith in order effectively to contest such claim, and

(iv)          permit the Company to participate in
any proceedings relating to such claim;

provided, however,
that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and
shall indemnify and hold Employee harmless, on an after-tax basis, for any
Excise Tax or income tax (including interest and penalties with respect
thereto) imposed as a result of such representation and payment of costs and
expenses.  Without limitation on the
foregoing provisions of this Section 9(c), the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct Employee to pay the tax claimed and sue for a refund
or contest the claim in any permissible manner, and Employee agrees to
prosecute such contest to a determination before any administrative tribunal,
in a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided  further, that if the Company
directs Employee to pay such claim and sue for a refund, the Company shall
advance the amount of such payment to Employee on an interest-free basis and shall
indemnify and hold Employee harmless, on an after-tax basis, from any Excise
Tax or income tax (including interest or penalties with respect thereto)
imposed with respect to such advance or with respect to any 

 

12

 

imputed income with respect to such advance; and provided
further, that any extension of the statute of limitations relating to
payment of taxes for the taxable year of Employee with respect to which such
contested amount is claimed to be due is limited solely to such contested
amount.  Furthermore, the Company’s
control of the contest shall be limited to issues with respect to which a
Gross-Up Payment would be payable hereunder and Employee shall be entitled to
settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

(d)           If, after the receipt by Employee of
an amount advanced by the Company pursuant to Section 9(c), Employee becomes
entitled to receive, and receives, any refund with respect to such claim, Employee
shall (subject to the Company’s complying with the requirements of Section 9(c))
promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto).  If, after the receipt by Employee of an
amount advanced by the Company pursuant to Section 9(c), a determination is
made that Employee shall not be entitled to any refund with respect to such
claim and the Company does not notify Employee in writing of its intent to
contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

(e)           If the Excise Tax is ultimately
determined by the Internal Revenue Service or the Accounting Firm to be less
than the amount taken into account in determining the Gross-Up
Payment paid pursuant to Section 9(a), Employee
shall repay to the Company, within thirty
(30) days after the time that the amount of the reduction in Excise Tax
is so determined, the portion of the
Gross-Up Payment attributable to such reduction.

Section 10.             Restrictive
Covenants.  Employee acknowledges and agrees
that (A) the agreements and covenants contained in this Section 10 are (i)
reasonable and valid in geographical and temporal scope and in all other
respects, and (ii) essential to protect the value of the Company’s business and
assets, and (B) by his employment with the Company, Employee will obtain
knowledge, contacts, know-how, training and experience and there is a
substantial probability that such knowledge, know-how, contacts, training and
experience could be used to the substantial advantage of a competitor of the
Company and to the Company’s substantial detriment.  For purposes of this Section 10, references
to the Company shall be deemed to include its subsidiaries.

(a)           Confidential Information.  At any time during and after the end of
Employee’s employment with the Company, without the prior written consent of
the Board, except to the extent required by an order of a court having
jurisdiction or under subpoena from an appropriate government agency, in which
event, Employee shall, to the extent legally permitted, consult with the Board
prior to responding to any such order or subpoena, and except as he in good
faith believes necessary or desirable in the performance of his duties
hereunder, Employee shall not disclose to or use for the benefit of any third
party any Confidential Information.

(b)           Non-Competition.  Employee
covenants and agrees that during the Restricted Period, Employee shall not,
directly or indirectly, individually or jointly, own any 

 

13

 

interest in, operate, join, control or participate as
a partner, director, principal, officer, or agent of, enter into the employment
of, act as a consultant to, or perform any services for any Person (other than
the Company), that engages in any Competitive Activities within the Restricted
Area.  Notwithstanding anything herein to
the contrary, this Section 10(b) shall not prevent Employee from acquiring as
an investment securities representing not more than three percent (3%) of the
outstanding voting securities of any publicly-held corporation or from being a
passive investor in any mutual fund, hedge fund, private equity fund or similar
pooled account so long as Employee’s interest therein is less than three
percent (3%) and he has no role in selecting or managing investments thereof.

(c)           Non-Interference.  During the Restricted Period, Employee shall
not, directly or indirectly, for his own account or for the account of any
other Person, engage in Interfering Activities.

(d)           Return of Documents.  In the event of the termination of Employee’s
employment for any reason, Employee shall deliver to the Company all of (i) the
property of the Company, and (ii) the documents and data of any nature and in
whatever medium of the Company, and he shall not take with him any such
property, documents or data or any reproduction thereof, or any documents
containing or pertaining to any Confidential Information.

(e)           Proprietary Information Agreement.
Immediately following the execution of this Agreement, Employee shall execute
the Proprietary Information Agreement.

(f)            Blue Pencil.  If any court of competent jurisdiction shall
at any time deem the duration or the geographic scope of any of the provisions
of this Section 10 unenforceable, the other provisions of this Section 10 shall
nevertheless stand and the duration and/or geographic scope set forth herein
shall be deemed to be the longest period and/or greatest size permissible by
law under the circumstances, and the parties hereto agree that such court shall
reduce the time period and/or geographic scope to permissible duration or size.

(g)           Termination of Non-Competition
Covenant.  Section 10(b) of this
Agreement shall terminate upon a Change in Control.

Section 11.             Breach of Restrictive Covenants.

Without limiting the remedies available to the
Company, Employee acknowledges that a breach of any of the covenants contained
in Section 10 hereof may result in material irreparable injury to the Company
or its subsidiaries for which there is no adequate remedy at law, that it will
not be possible to measure damages for such injuries precisely and that, in the
event of such a breach or threat thereof, the Company (or any subsidiary
thereof, as applicable) shall be entitled to obtain a temporary restraining
order and/or a preliminary or permanent injunction, without the necessity of
proving irreparable harm or injury as a result of such breach or threatened
breach of Section 10 hereof, restraining Employee from engaging in activities
prohibited by Section 10 hereof or such other relief as may be required
specifically to enforce any of the covenants in Section 10 hereof.  Notwithstanding any other provision to the
contrary, the Restricted Period shall be tolled during any period of violation
of any of the covenants in Section 10(b) or 10(c) hereof and during any other
period required for litigation during which the 

 

14

 

Company seeks to enforce such covenants against
Employee or another Person with whom Employee is affiliated if it is ultimately
determined that Employee was in breach of such covenants.

Section 12.             Representations and Warranties of
Employee.

Employee represents and
warrants to the Company that:

(a)           Employee’s
employment will not conflict with or result in his breach of any agreement to
which he is a party or otherwise may be bound;

(b)           Employee
has not violated, and in connection with his employment with the Company will
not violate, any non-solicitation, non-competition or other similar covenant or
agreement of a prior employer by which he is or may be bound; and

(c)           In
connection with Employee’s employment with the Company, he will not use any
confidential or proprietary information that he may have obtained in connection
with employment with any prior employer.

Section 13.             Taxes.

The Company may withhold
from any payments made under this Agreement all applicable taxes, including but
not limited to income, employment and social insurance taxes, as shall be
required by law.  Employee acknowledges
and represents that the Company has not provided any tax advice to him in
connection with this Agreement and that he has been advised by the Company to
seek tax advice from his own tax advisors regarding this Agreement and
payments that may be made to him pursuant to this Agreement,
including specifically, the application of the provisions of Section 409A of
the Code to such payments.

Section 14.             Indemnification.

The Company covenants and
agrees that, to the fullest extent permitted by Delaware law, or the Company’s
Certificate of Incorporation or By-laws, it will indemnify and hold Employee
harmless from any and all liability, loss, damage, cost and expense (including
reasonable attorneys’ fees) which Employee may incur, suffer or be required to
pay.

Section 15.             Mitigation; Set Off.  

The Company’s obligation to
pay Employee the amounts provided and to make the arrangements provided
hereunder shall not be subject to set-off, counterclaim or recoupment of
amounts owed by Employee to the Company or its Affiliates.  Employee shall not be required to mitigate
the amount of any payment provided for pursuant to this Agreement by seeking
other employment or otherwise and the amount of any payment provided for
pursuant to this Agreement shall not be reduced by any compensation earned as a
result of Employee’s other employment or otherwise.

 

15

 

Section 16.             Delay in Payment.

Notwithstanding any
provision in this Agreement to the contrary, any payment otherwise required to
be made hereunder to Employee at any date as a result of the termination of
Employee’s employment shall be delayed for such period of time as may be
necessary to meet the requirements of Section 409A(a)(2)(B)(i) of the
Code.  On the earliest date on which such
payments can be made without violating the requirements of Section
409A(a)(2)(B)(i) of the Code, there shall be paid to Employee, in a single cash
lump sum, an amount equal to the aggregate amount of all payments delayed
pursuant to the preceding sentence.

Section 17.             Successors and Assigns; No Third-Party
Beneficiaries.

(a)           The
Company. This Agreement shall inure to the benefit of and be enforceable
by, and may be assigned by the Company to, any purchaser of all or
substantially all of the Company’s business or assets or any successor to the
Company (whether direct or indirect, by purchase, merger, consolidation or
otherwise).  The Company will require in
a writing delivered to Employee any such purchaser, successor or assignee to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
purchase, succession or assignment had taken place.  The Company may make no other assignment of
this Agreement or its obligations hereunder.

(b)           Employee.  Employee’s rights and obligations under this
Agreement shall not be transferable by Employee by assignment or otherwise,
without the prior written consent of the Company; provided, however,
that if Employee shall die, all amounts then payable to Employee hereunder
shall be paid in accordance with the terms of this Agreement to Employee’s
devisee, legatee or other designee or, if there be no such designee, to
Employee’s estate.

(c)           No
Third-Party Beneficiaries.  Except as otherwise set forth in Section 8(b)
or Section 17(b) hereof, nothing expressed or referred to in this Agreement
will be construed to give any Person other than the Company and Employee any
legal or equitable right, remedy or claim under or with respect to this
Agreement or any provision of this Agreement.

Section 18.             Waiver and Amendments.

Any waiver, alteration,
amendment or modification of any of the terms of this Agreement shall be valid
only if made in writing and signed by each of the parties hereto; provided,
however, that any such waiver, alteration, amendment or modification is
consented to on the Company’s behalf by the Board.  No waiver by either of the parties hereto of
their rights hereunder shall be deemed to constitute a waiver with respect to
any subsequent occurrences or transactions hereunder unless such waiver
specifically states that it is to be construed as a continuing waiver.

Section 19.             Severability.

If any covenants or other
provisions of this Agreement are found to be invalid or unenforceable by a
final determination of a court of competent jurisdiction: (a) the remaining
terms and provisions hereof shall be unimpaired, and (b) the invalid or
unenforceable term or provision hereof shall be deemed replaced by a term or
provision that is valid and enforceable 

 

16

 

and that comes closest to expressing the intention of
the invalid or unenforceable term or provision hereof.

Section 20.             Governing Law, Personal Jurisdiction and
Venue

THIS AGREEMENT AND ALL
DISPUTES RELATING TO THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS BY THE
LAWS OF THE STATE OF COLORADO AS SUCH LAWS ARE APPLIED TO AGREEMENTS BETWEEN
COLORADO RESIDENTS ENTERED INTO AND PERFORMED ENTIRELY IN COLORADO.  THE COMPANY AND EMPLOYEE AGREE THAT THIS
AGREEMENT CONSTITUTES THE MINIMUM CONTACTS TO ESTABLISH PERSONAL JURISDICTION
IN COLORADO AND AGREE TO COLORADO COURT’S EXERCISE OF PERSONAL
JURISDICTION.  THE COMPANY AND EMPLOYEE
FURTHER AGREE THAT ANY DISPUTES RELATING TO THIS AGREEMENT SHALL BE BROUGHT IN
THE COURTS LOCATED IN THE STATE OF COLORADO.

Section 21.             Legal Fees.  The Company shall pay all
reasonable legal fees incurred by Employee in connection with the negotiation
of the terms of this Agreement in an amount up to a maximum of $20,000.

Section 22.             Costs of Enforcement.  If any contest or dispute shall arise under
this Agreement, each party hereto shall bear its own legal fees and expenses, provided,
however, that in the event the Employee prevails with respect to a substantial
aspect  of such contest or dispute, the
Company shall be required to reimburse the Employee for reasonable legal fees
and expenses incurred by him in connection therewith.

Section 23.             Notices.

(a)           Every
notice or other communication relating to this Agreement shall be in writing,
and shall be mailed to or delivered to the party for whom it is intended at
such address as may from time to time be designated by it in a notice mailed or
delivered to the other party as herein provided, provided that, unless and
until some other address be so designated, all notices or communications by
Employee to the Company shall be mailed or delivered to the Company at its
principal executive office, and all notices or communications by the Company to
Employee may be given to Employee personally or may be mailed to Employee at
Employee’s last known address, as reflected in the Company’s records.

(b)           Any
notice so addressed shall be deemed to be given:  (i) if delivered by hand, on the date of such
delivery; (ii) if mailed by courier or by overnight mail, on the first business
day following the date of such mailing; and (iii) if mailed by registered or
certified mail, on the third business day after the date of such mailing.

Section 24.             Section Headings.

The headings of the sections
and subsections of this Agreement are inserted for convenience only and shall
not be deemed to constitute a part thereof, affect the meaning or
interpretation of this Agreement or of any term or provision hereof.

 

17

 

Section 25.             Entire Agreement.

This Agreement constitutes
the entire understanding and agreement of the parties hereto regarding the
employment of Employee.  This Agreement
supersedes all prior negotiations, discussions, correspondence, communications,
understandings and agreements between the parties relating to the subject
matter of this Agreement.

Section 26.             Survival of Operative Sections.

Upon any termination of
Employee’s employment, the provisions of Section 8 through Section 27 of this
Agreement (together with any related definitions set forth in Section 1 hereof)
shall survive to the extent necessary to give effect to the provisions thereof.

Section 27.             Counterparts.

This Agreement may be
executed in two or more counterparts, each of which shall be deemed to be an
original but all of which together shall constitute one and the same
instrument.  The execution of this
Agreement may be by actual or facsimile signature.

*              *              *

[Signatures to appear on the following page.]

 

18

 

IN WITNESS WHEREOF, the
undersigned have executed this Agreement as of the date first above written.

 

	
   

  	
  ALLOS THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
  /s/ Stephen J. Hoffman

  
	
   

  	
  By: Stephen J. Hoffman

  
	
   

  	
  Title: Chairman of the Board

  
	
   

  	
   

  
	
   

  	
  PAUL L. BERNS

  
	
   

  	
   

  
	
   

  	
  /s/ Paul L. Berns

  

 

Signature
Page to

Employment Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]