Document:

Exhibit 10.20

 

VIASYS Healthcare INC.

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT, is made and entered into as of October
1, 2003, by and among Viasys Healthcare Inc., a Delaware corporation (together
with its successors and assigns permitted under this Agreement, the “Company”)
and Giulio Perillo (the “Executive”).

 

W I T N E S S E T H :

 

WHEREAS, the Company and the Executive desire to enter
into an employment agreement as set forth herein to embody the terms and
provisions of the Executive’s employment (the “Agreement”);

 

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

 

1.                                       DEFINITIONS.

 

(a)           “Affiliate” means
a  person or other entity that directly
or indirectly controls, is controlled by, or is under common control with the
person or other entity specified.

 

(b)           “Base Salary” means the
salary provided for in Section 4 or any increased salary granted to the
Executive pursuant thereto.

 

(c)           “Board” means the Board
of Directors of the Company.

 

(d)           “Cause” means the
occurrence of any one or more of the following events:

 

(i)            the Executive’s
repeated failure to comply with the reasonable directives of the relevant
senior officers;

 

(ii)           the Executive’s
conviction of committing a felony which is materially and demonstrably
injurious to the Company; or

 

(iii)          the Executive’s
continued gross neglect of his duties with the Company (other than any such
occurrence resulting from incapacity due to physical or mental illness).

 

(e)           “Change in Control”
means an event or occurrence set forth in any one or more of subsections (i)
through (vi) below (including an event or occurrence that constitutes a Change
in Control under one of such subsections but is specifically exempted from
another such subsection):

 

 

(i)            the acquisition by an
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”)) (a
“Person”) of beneficial ownership of any capital stock of the Company if, after
such acquisition, such Person beneficially owns (within the meaning of Rule
13d-3 promulgated under the Exchange Act) 40% 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 securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); provided,
however, that for purposes of this subsection (i), the following acquisitions
shall not constitute a Change in Control:

 

(A)                              any
acquisition by the Company,

 

(B)                                any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company, or

 

(C)                                any
acquisition by any corporation pursuant to a transaction that complies with
clauses (A) and (B) of subsection (V) of this Section,

 

(ii)           the Continuing
Directors (as defined below) do not constitute a majority of the Board (or, if
applicable, the Board of Directors of a successor corporation to the Company),
where the term “Continuing Director” means at any date a member of the Board
(A) who was a member of the Board on the date of the execution of this
Agreement or (B) who was nominated or elected subsequent to such date by at
least a majority of the directors who were Continuing Directors at the time of
such nomination or election or whose election to the Board was recommended or
endorsed by at least a majority of the directors who were Continuing Directors
at the time of such nomination or election; provided, however, that there shall
be excluded from this clause (B) any individual whose initial assumption of
office occurred as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents, by or on behalf of a person other than the
Board;

 

(iii)          the consummation of a
merger, consolidation, reorganization, recapitalization or statutory share
exchange involving the Company or a sale or other disposition of all or
substantially all of the assets of the Company in one or a series of
transactions (a “Business Combination”), unless, immediately following such
Business Combination the beneficial owners of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 50% of
the then-outstanding shares of common stock and the combined voting power of
the then-outstanding securities entitled to vote generally in the election of
directors, respectively, of the resulting or acquiring corporation in such
Business Combination (which shall include, without limitation, a corporation
which as a result of such transaction owns the Company or substantially all of
the Company’s assets either directly or through one or

 

2

 

more subsidiaries) (such
resulting or acquiring corporation is referred to herein as the “Acquiring
Corporation”); or

 

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

 

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

 

(g)           “Disability” or
“disabled” means a disability which results in the Executive’s entitlement to
long-term disability benefits under the Company’s applicable long-term disability
plan

 

(h)           “Effective Date” means
October 1, 2003.

 

(i)             “Notice of
Termination” means a written notice from one party to the other party hereto
given in accordance with Section 24, terminating the Executive’s employment
hereunder.  Any Notice of Termination
shall (i) indicate the specific termination provision hereunder relied on by
the party giving such notice and (ii) to the extent applicable, set forth in
reasonable detail the facts and circumstances providing a basis for termination
of the Executive’s employment under the provision so indicated.  The failure by the Company to set forth any
fact or circumstance that contributes to a showing of Cause shall not waive any
right of the Company hereunder or preclude the Company from asserting any such
fact or circumstance in enforcing its rights hereunder.

 

(j)            “Stock” means the
common stock, $0.01 par value per share, of the Company.

 

(k)           “Termination Date”
means, with respect to any termination of the Executive’s employment hereunder,
the effective date of such termination pursuant to Section 10.

 

2.                                       TERM
OF EMPLOYMENT.

 

This Agreement, and all rights and obligations of the
parties hereunder, shall take effect upon the Effective Date and shall continue
until the date that is two years from the Effective Date (the “Term”).  If the Company elects not to extend the Term
of the Agreement on terms and conditions substantially similar to those set
forth in this Agreement, the Company shall provide the Executive with written
notice at least six months prior to the end of the then current term.

 

3.             POSITION,
DUTIES AND RESPONSIBILITIES.

 

(a)           Commencing
on the Effective Date, the Executive was employed as Group President, VIASYS
Operations & Corporate Quality of the Company and the Executive has been
assigned and shall be assigned such duties and responsibilities as are
reasonably consistent with such positions and such other duties and
responsibilities as the CEO or the Executive’s direct supervisor from time to
time deem appropriate.

 

(b)           During the Term of Employment,
the Executive shall devote his entire business time, attention and energies to
the business and interest of the Company in performing his duties

 

3

 

and responsibilities under this Agreement, and to that end, the
Executive shall not serve on the board of directors of other corporations or
entities without the prior approval of the Board.

 

(c)           Notwithstanding
anything contained in Section 3(b) to the contrary, nothing herein shall
preclude the Executive from (i) serving on the boards of directors of a
reasonable number of trade associations and/or charitable organizations, (ii)
engaging in charitable activities and community affairs, and (iii) managing his
personal investments and affairs, provided, that such activities do not
materially interfere with the proper performance of his duties and
responsibilities as set forth in this Section 3.

 

4.                                       BASE
SALARY.

 

The Executive shall be paid an annualized base salary,
payable in accordance with the regular payroll practices of the Company, of
$225,000, which amount may be increased from time to time in the discretion of
the Board.

 

5.                                       ANNUAL
CASH INCENTIVE AWARD.

 

During the Employment Term, the
Executive shall participate in (a) the Viasys Healthcare Inc. Management
Incentive Plan with a target bonus of fifty percent (50%), or such other amount
as may be determined by Board or the appropriate committee or individual and
(b) any other incentive programs established by the Company for its senior
level executives generally.

 

6.                                       EMPLOYEE
BENEFIT PROGRAMS.

 

During the Employment Term, the Executive shall be
entitled to participate in all employee pension and welfare benefit plans and
programs made available to the Company’s senior level executives.

 

7.                                       PERQUISITES.

 

During the Term of Employment, the Executive shall be
entitled to participate in all of the Company’s executive perquisites in
accordance with the terms and conditions of such arrangements as are in effect
from time to time for the Company’s senior-level executives.

 

8.             REIMBURSEMENT
OF BUSINESS AND OTHER EXPENSES.

 

The Executive is authorized to incur reasonable
expenses in carrying out his duties and responsibilities under this Agreement
and the Company shall promptly reimburse him for such expenses, subject to
documentation in accordance with the Company’s policy.

 

9.                                       TERMINATION
OF EMPLOYMENT.

 

The Executive’s employment hereunder shall terminate
effective immediately upon the earlier to occur of the following events:

 

(a)           death of the Executive;

 

4

 

(b)           receipt by either party
of a Notice of Termination for Disability from the other party, but in any
event not until the Executive is determined to be disabled in accordance with
Section 1(g);

 

(c)           the day the Executive
receives a Notice of Termination for Cause from the Company.

 

(d)           the 30th day
following  receipt by the Executive of a
Notice of Termination Without Cause from the Company; and

 

(e)           the 31st day following
receipt by the Company of a Notice of Termination of Employment from the
Executive.

 

10.                                 RIGHTS
AND REMEDIES UPON TERMINATION OF EMPLOYMENT.

 

(a)           TERMINATION DUE TO
DEATH.  In the event that the
Executive’s employment is terminated due to his death, his estate or his
beneficiaries, as the case may be, shall be entitled to the following benefits:

 

(i)            The Executive’s then
current Base Salary through the Termination Date, which shall be payable in a
lump sum within thirty (30) days of the Termination Date;

 

(ii)           An annual cash
incentive bonus award for the year in which the termination occurs, pro-rated
through the Termination Date, determined in accordance with the provisions of
Section 5 (the “Pro-Rated Annual Bonus”), which shall be payable when incentive
awards are normally paid to comparable executives; and

 

(iii)          Each outstanding option
granted under an equity compensation plan maintained by the Company to purchase
shares of stock of the Company shall become immediately exercisable, and
thereafter, shall remain exercisable until the first anniversary of Termination
Date.

 

(b)           TERMINATION DUE TO
DISABILITY.  In the event that the
Executive’s employment is terminated by either party due to his Disability, he
shall be entitled to the following benefits:

 

(i)            Disability benefits in
accordance with the long-term disability (“LTD”) program then in effect for
comparable executives of the Company;

 

(ii)           The Executive’s then
current Base Salary through the end of the LTD elimination period, which shall
be payable in a lump sum within thirty (30) days of the Termination Date;

 

(iii)          The Pro-Rated Annual
Bonus, payable when incentive awards are normally paid to comparable
executives; and

 

(iv)          Each outstanding option
granted under an equity compensation plan maintained by the Company to purchase
shares of stock of the Company shall become

 

5

 

immediately exercisable,
and thereafter, shall remain exercisable until the first anniversary of
Termination Date.

 

(c)           TERMINATION BY THE
COMPANY FOR CAUSE.  In the event that
the Company terminates the Executive’s employment for Cause:

 

(i)            The Executive shall be
entitled to receive his current Base Salary through the Termination Date, which
shall be payable in a lump sum within thirty (30) days of the Termination Date;

 

(ii)           The Executive shall not
be entitled to any benefits, severance or other compensation; and

 

(iii)          Any portion of an
outstanding option granted under an equity compensation plan maintained by the
Company to purchase shares of stock of the Company that has previously become
exercisable shall remain exercisable for a period of 90 days after the
Termination Date.  Any portion of an
outstanding option granted under an equity compensation plan maintained by the
Company that is not exercisable as of the Termination Date shall immediately
terminate.

 

(d)           TERMINATION BY THE
EXECUTIVE.  In the event of a
termination of employment by the Executive on his own initiative, other than
due to (A) death, (B) Disability, (C) the expiration of the then current Term
of Employment, or (D) a notice from one party to the other of its intent not to
extend the Employment Term

 

(i)            The Executive shall be
entitled to receive his current Base Salary through the Termination Date, which
shall be payable in a lump sum within thirty (30) days of the Termination Date;

 

(ii)           The Executive shall not
be entitled to any benefits, severance or other compensation; and

 

(iii)          Any portion of an
outstanding option granted under an equity compensation plan maintained by the
Company to purchase shares of stock of the Company that has previously become
exercisable shall remain exercisable for a period of 90 days after the
Termination Date.  Any portion of an
outstanding option granted under an equity compensation plan maintained by the
Company that is not exercisable as of the Termination Date shall immediately
terminate.

 

(e)           TERMINATION WITHOUT
CAUSE.  In the event of a termination of
the Executive’s employment by the Company, other than due to (A) death, (B)
Disability, (C) Cause, (D) a notice from one party to the other of its intent
not to extend the Employment Term, the Executive shall be entitled to the
following benefits:

 

(i)            The Executive’s then
current Base Salary through the Termination Date, which shall be payable in a
lump sum within thirty (30) days of the Termination Date;

 

6

 

(ii)           The Pro-Rated Annual
Bonus, payable when incentive awards are normally paid to comparable
executives;

 

(iii)          An amount equal to the
sum of (A) the Executive’s then current Base Salary and (B) the most recent
cash incentive paid or the target bonus available under the VIASYS Management
Incentive Plan then in existence, whichever is higher, payable in a lump sum
within ninety (90) days of the Termination Date; and

 

(iv)          Any portion of an
outstanding option granted under an equity compensation plan maintained by the
Company to purchase shares of stock of the Company that has previously become
exercisable shall remain exercisable for a period of 90 days after the Termination
Date. Any portion of an outstanding option granted under an equity compensation
plan maintained by the Company that is not exercisable as of the Termination
Date shall immediately terminate.

 

(f)             OTHER TERMINATION
BENEFITS.  In the case of any of the
foregoing terminations, to the extent not previously paid or provided or
otherwise contrary to the terms and conditions of this Agreement, the Executive
or his estate or beneficiaries, as the case may be, shall also be entitled to
the balance of any incentive awards due the Executive but not yet paid
(including awards due for performance periods that have been completed, but
have not yet been paid), any expense reimbursements due the Executive, and
other benefits, if any, in accordance with applicable plans or programs of or
contracts or agreements of the Executive with the Company.  In addition, unless indicated otherwise in
this Agreement, the treatment of any options granted to the Executive in the
case of any of the foregoing terminations, shall be governed by the terms of
the VIASYS Equity Incentive Plan or other relevant equity compensation plan or
any associated stock option agreement.

 

(g)           TERMINATION FOLLOWING A
CHANGE IN CONTROL.  Notwithstanding
anything to the contrary in this Agreement, in the event the Executive’s
employment with the Company is terminated within twelve (12) months following a
Change in Control, the Executive shall be entitled to benefits equal to (i) the
benefits due and payable to him under the change of control plan sponsored by
the Company, if any, (the “Change of Control Plan”), or (ii) the benefits due
and payable to him under Section 10 of this Employment Agreement as a result of
such termination.  In furtherance
thereof, it is the parties’ understanding that in the event of a termination
under such circumstances, the Executive shall only be entitled to receive
benefits payable under either the Change of Control Plan or this Employment
Agreement (but not both).

 

(h)           NATURE OF
PAYMENTS.  Any amounts due under this
Section 11 are in the nature of severance payments considered to be reasonable
by the Company and are not in the nature of a penalty.

 

(i)            NO MITIGATION; NO
OFFSET.  The Executive shall not be
required to mitigate the amount of any payment or benefit provided in this
Section 10 by seeking other employment or otherwise.  Further, except as provided in Section 10, the amount of any
payment or benefits provided for in this Section 10 shall not be reduced by any
compensation earned by the Executive as a result of employment by another
employer.

 

7

 

11.           CONFIDENTIALITY
& ASSIGNMENT OF INVENTIONS.

 

(a)           The Executive shall
execute and deliver to the Company on the Effective Date the Company’s standard
employee Confidentiality and Assignment of Inventions Agreement, substantially
in the form attached hereto as EXHIBIT A.

 

(b)           Upon the termination of
the Executive’s employment, the Executive (or in the event of his death, the
Executive’s personal representative) shall promptly surrender to the Company
the original and all copies of any materials containing confidential
information of the Company which are then in the Executive’s possession or
control; provided, however, that the Executive shall not be required to
surrender his rolodexes, personal diaries and other items of a personal nature.

 

12.                                 NON-COMPETITION;
NON-SOLICITATION.

 

(a)           The Executive
acknowledges (i) that in the course of his employment with the Company he will
become familiar with trade secrets and customer lists of, and  other confidential information concerning,
the Company and its Affiliates, customers, and clients and (ii) that his
services will be of special, unique and extraordinary value to the Company.

 

(b)           The Executive agrees
that during the Term of Employment and for a period of one year following his
termination of employment for any reason he shall not in any manner, directly
or indirectly, through any person, firm, corporation or enterprise, alone or as
a member of a partnership or as an officer, director, stockholder, investor or
employee of or advisor or consultant to any person, firm, corporation or
enterprise or otherwise, engage or be engaged, or assist any other person,
firm, corporation or enterprise in engaging or being engaged (collectively, the
“Restricted Activity”), in any Competitive Activity (as defined below).  For the purposes of this Section 12, a
“Competitive Activity” shall mean, unless otherwise determined by the Board, a
business that (i) is being conducted by the Company or any Affiliate at the
time in question and (ii) was being conducted, or was under active
consideration to be conducted, by the Company or any Affiliate, at the date of
the termination of the Executive’s employment. 
It is agreed and understood that the prohibitions provided for in this
Section 12(b) shall not restrict the Executive from engaging in Restricted
Activity for any subsidiary, division or Affiliate or unit of a company
(collectively a “Related Entity”) if that Related Entity is not engaged in a
Competitive Activity, irrespective of whether some other Related Entity of that
company engages in what would otherwise be considered to be a Competitive
Activity (as long as Executive does not engage in Restricted Activity for such
other Related Entity).

 

(c)           The Executive further
agrees that during the Non-Competition Period he shall not (i) in any manner,
directly or indirectly, hire or cause to be hired any employee of or advisor or
consultant to the Company or any of its Affiliates for any purpose or in any capacity
whatsoever, or (ii) in connection with any business to which Section 12(b)
applies, call on, service, solicit or otherwise do business with any customer
of the Company or any of its Affiliates; provided, however, that the
restriction contained in clause (i) of this Section 12(c) shall not apply to,
or interfere with, the proper performance by the Executive of his duties and
responsibilities under Section 3 of this Agreement.

 

8

 

(d)           Nothing in this Section
12 shall prohibit the Executive from being a passive owner of not more than two
percent (2%) of the outstanding common stock, capital stock and equity of any
firm, corporation or enterprise so long as the Executive has no active
participation in the management or business of such firm, corporation or
enterprise.

 

(e)           If the restrictions
stated herein are found by a court to be unreasonable, the parties hereto agree
that the maximum period, scope or geographical area reasonable under such
circumstances shall be substituted for the stated period, scope or area and
that the court shall revise the restrictions contained herein to cover the
maximum period, scope and area permitted by law.

 

13.                                 REMEDIES.

 

Each of the parties to this Agreement shall be entitled
to enforce its rights under this Agreement specifically, to recover damages and
costs (including reasonable attorney’s fees) caused by 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 would not be an adequate remedy for any breach
of the provisions of this Agreement and that any party may in its sole
discretion apply to any court of law or equity of competent jurisdiction
(without posting any bond or deposit) for specific performance and/or other
injunctive relief in order to enforce or prevent any violations of the
provisions of this Agreement.  Nothing
in this Section 13 is intended to prevent the parties from raising any and all
defenses with respect to the necessity for, and scope of, such injunctive or
equitable relief.

 

14.                                 RESOLUTION
OF DISPUTES.

 

Subject to the provisions of Section 13 regarding
specific performance and/or injunctive relief, any disputes arising under or in
connection with this Agreement shall be resolved by binding arbitration, to be
held in Philadelphia, Pennsylvania, in each case in accordance with the rules
and procedures of the American Arbitration Association.  Judgment upon the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof.

 

15.                                 EXPENSES.

 

(a)           Subject to the
provisions of Sections 13 and 14, in the event any party hereto (for the
purposes of this Section 15, the “Aggrieved Party”) seeks a judicial
adjudication of, or an award in arbitration to enforce, the Aggrieved Party’s
rights under, or to recover damages for the breach of, this Agreement, the
Aggrieved Party shall be entitled to recover from the other party or parties,
as the case may be, and shall be indemnified by the other party or parties, as
the case may be, against, any and all costs actually and reasonably incurred by
the Aggrieved Party in such judicial adjudication or arbitration, including,
without limitation, reasonable attorney’s fees, but only if the Aggrieved Party
prevails in such proceeding.

 

16.           ASSIGNABILITY;
BINDING NATURE.

 

This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors, heirs (in the case of
the Executive) and assigns.  Rights or
obligations of the Company under this Agreement may be assigned or transferred
by the Company pursuant to

 

9

 

a merger or consolidation in which the Company is not the continuing
entity, or the sale or liquidation of all or substantially all of the assets of
the Company, provided that the assignee or transferee is the successor to all
or substantially all of the assets of the Company and such assignee or
transferee assumes the liabilities, obligations and duties of the Company, as
contained in this Agreement, either contractually or as a matter of law.  The Company further agrees that, in the
event of a sale of assets or liquidation as described in the preceding
sentence, it shall take whatever action it reasonably can in order to cause
such assignee or transferee to expressly assume the liabilities, obligations
and duties of the Company hereunder.  No
rights or obligations of the Executive under this Agreement may be assigned or
transferred by the Executive other than his rights to compensation and
benefits, which may be transferred only by will or operation of law.

 

17.                                 REPRESENTATIONS
AND WARRANTIES.

 

(a)           The Company represents
and warrants that it has all requisite corporate power and authority to enter
into this Agreement and that the performance by the Company of its obligations
under this Agreement will not violate any agreement to which it is a party.

 

(b)           The Executive
represents that the execution of this Agreement by the Executive and the
performance by him of his obligations hereunder will not violate any agreement
to which he is a party.

 

(c)           The Executive hereby
represent and warrants that he is not bound by the terms of any agreement with
any previous employer or other party to refrain from competing, directly or
indirectly, with the business of such previous employer or any other
party.  The Executive further represents
and warrants that Executive’s performance of all the terms of this Agreement
and as an employee of the Company does not and will not breach any agreement to
keep in confidence proprietary information, knowledge or data acquired by the
Executive in confidence or in trust prior to Executive’s employment with the
Company.  The Executive will not disclose
to the Company or induce the Company to use any confidential or proprietary
information or material belonging to any previous employer or others.  The Executive will not hereafter grant
anyone any rights inconsistent with the terms of this Agreement.

 

18.           ENTIRE
AGREEMENT.

 

This Agreement and the Exhibit attached hereto and
incorporated herein by reference contain the entire understanding and agreement
between the parties concerning the subject matter hereof and thereof and
supersede all prior agreements, understandings, discussions, negotiations and
undertakings, whether written or oral, between the parties with respect
thereto.  This is an integrated
document.

 

19.                                 AMENDMENT
OR WAIVER.

 

No provision in this Agreement may be amended unless
such amendment is agreed to in writing and signed by the Executive and an
authorized officer of the Company, other than the Executive.  No waiver by either party of any breach by
the other party of any condition or provision contained in this Agreement to be
performed by such other party shall be deemed a waiver of a similar or
dissimilar condition or provision at the same or any prior or subsequent

 

10

 

time.  Any such waiver must be
in writing and signed by the Executive or an authorized officer of the Company,
other than the Executive, as the case may be.

 

20.                                 SEVERABILITY.

 

In the event that any provision or portion of this
Agreement shall be determined to be invalid or unenforceable for any reason, in
whole or in part, the remaining provisions of this Agreement shall be
unaffected thereby and shall remain in full force and effect to the fullest
extent permitted by law so as to achieve the purposes of this Agreement.

 

21.                                 SURVIVORSHIP.

 

Except as otherwise expressly set forth in this
Agreement, the respective rights and obligations of the parties hereunder shall
survive any termination of the Executive’s employment.  This Agreement itself (as distinguished from
the Executive’s employment) may not be terminated by either party without the
written consent of the other party.

 

22.                                 REFERENCES.

 

In the event of the Executive’s death or a judicial
determination of his incompetence, reference in this Agreement to the Executive
shall be deemed, where appropriate, to refer to his beneficiary, estate or
other legal representative.

 

23.                                 GOVERNING
LAW/JURISDICTION.

 

This Agreement shall be governed in accordance with
the laws of the State of Delaware without reference to principles of conflict
of laws.

 

24.                                 NOTICES.

 

All notices and other communications required or
permitted hereunder shall be in writing and shall be deemed given when (a)
delivered personally, (b) sent by certified or registered mail, postage
prepaid, return receipt requested or (c) delivered by overnight courier
(provided that a written acknowledgment of receipt is obtained by the overnight
courier) to the party concerned at the address indicated below or to such
changed address as such party may subsequently give such notice of:

 

	
  If to the Company:

  	
   

  	
  Viasys Healthcare Inc.

  227 Washington Street, Suite 200

  Conshohocken, PA 19428

  
	
   

  	
   

  	
   

  
	
  Copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to Executive:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

11

 

25.           HEADINGS.

 

The headings of the sections contained in this
Agreement are for convenience only and shall not be deemed to control or affect
the meaning or construction of any provision of this Agreement.

 

26.           COUNTERPARTS.

 

This Agreement may be executed in counterparts.

 

 

[Remainder of Page
Intentionally Left Blank]

 

12

 

IN WITNESS WHEREOF, the undersigned have executed this
Agreement as of the restatement set forth above.

 

	
   

  	
  VIASYS HEALTHCARE INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:  Randy
  Thurman

  
	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Giulio Perillo

  

 

13

 

EXHIBIT A

 

Confidentiality and
Assignment of Inventions Agreement

 

14Exhibit 10.21

 

VIASYS Healthcare INC.

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT, is made and entered into as of July 1,
2003, by and among VIASYS Healthcare Inc., a Delaware corporation (together
with its successors and assigns permitted under this Agreement, the “Company”)
and Edward Pulwer (the “Executive”).

 

W I T N E S S E T H :

 

WHEREAS, the Company and the Executive desire to enter
into an employment agreement as set forth herein to embody the terms and
provisions of the Executive’s employment (the “Agreement”);

 

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

 

1.                                       DEFINITIONS.

 

(a)           “Affiliate” means a
person or other entity that directly or indirectly controls, is controlled by,
or is under common control with the person or other entity specified.

 

(b)           “Base Salary” means the
salary provided for in Section 4 or any increased salary granted to the
Executive pursuant thereto.

 

(c)           “Board” means the Board
of Directors of the Company.

 

(d)           “Cause” means the
occurrence of any one or more of the following events:

 

(i)            the Executive’s
repeated failure to comply with the reasonable directives of the relevant
senior officers;

 

(ii)           the Executive’s
conviction of committing a felony which is materially and demonstrably
injurious to the Company; or

 

(iii)          the Executive’s
continued gross neglect of his duties with the Company (other than any such
occurrence resulting from incapacity due to physical or mental illness).

 

(e)           “Change in Control”
means an event or occurrence set forth in any one or more of subsections (i)
through (vi) below (including an event or occurrence that constitutes a Change
in Control under one of such subsections but is specifically exempted from
another such subsection):

 

 

(i)            the acquisition by an
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”)) (a
“Person”) of beneficial ownership of any capital stock of the Company if, after
such acquisition, such Person beneficially owns (within the meaning of Rule
13d-3 promulgated under the Exchange Act) 40% 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 securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); provided,
however, that for purposes of this subsection (i), the following acquisitions
shall not constitute a Change in Control:

 

(A)                              any
acquisition by the Company,

 

(B)                                any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company, or

 

(C)                                any
acquisition by any corporation pursuant to a transaction that complies with
clauses (A) and (B) of subsection (V) of this Section,

 

(ii)           the Continuing
Directors (as defined below) do not constitute a majority of the Board (or, if
applicable, the Board of Directors of a successor corporation to the Company),
where the term “Continuing Director” means at any date a member of the Board
(A) who was a member of the Board on the date of the execution of this
Agreement or (B) who was nominated or elected subsequent to such date by at
least a majority of the directors who were Continuing Directors at the time of
such nomination or election or whose election to the Board was recommended or
endorsed by at least a majority of the directors who were Continuing Directors
at the time of such nomination or election; provided, however, that there shall
be excluded from this clause (B) any individual whose initial assumption of
office occurred as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents, by or on behalf of a person other than the
Board;

 

(iii)          the consummation of a
merger, consolidation, reorganization, recapitalization or statutory share
exchange involving the Company or a sale or other disposition of all or
substantially all of the assets of the Company in one or a series of
transactions (a “Business Combination”), unless, immediately following such
Business Combination the beneficial owners of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 50% of
the then-outstanding shares of common stock and the combined voting power of
the then-outstanding securities entitled to vote generally in the election of
directors, respectively, of the resulting or acquiring corporation in such
Business Combination (which shall include, without limitation, a corporation
which as a result of such transaction owns the Company or substantially all of
the Company’s assets either directly or through one or

 

2

 

more subsidiaries) (such
resulting or acquiring corporation is referred to herein as the “Acquiring
Corporation”); or

 

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

 

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

 

(g)           “Disability” or
“disabled” means a disability which results in the Executive’s entitlement to
long-term disability benefits under the Company’s applicable long-term disability
plan

 

(h)           “Effective Date” means
July 1, 2003.

 

(i)             “Notice of
Termination” means a written notice from one party to the other party hereto
given in accordance with Section 24, terminating the Executive’s employment
hereunder.  Any Notice of Termination
shall (i) indicate the specific termination provision hereunder relied on by
the party giving such notice and (ii) to the extent applicable, set forth in
reasonable detail the facts and circumstances providing a basis for termination
of the Executive’s employment under the provision so indicated.  The failure by the Company to set forth any
fact or circumstance that contributes to a showing of Cause shall not waive any
right of the Company hereunder or preclude the Company from asserting any such
fact or circumstance in enforcing its rights hereunder.

 

(j)            “Stock” means the
common stock, $0.01 par value per share, of the Company.

 

(k)           “Termination Date”
means, with respect to any termination of the Executive’s employment hereunder,
the effective date of such termination pursuant to Section 10.

 

2.                                       TERM
OF EMPLOYMENT.

 

This Agreement, and all rights and obligations of the
parties hereunder, shall take effect upon the Effective Date and shall continue
until the date that is two years from the Effective Date (the “Term”).  If the Company elects not to extend the Term
of the Agreement on terms and conditions substantially similar to those set
forth in this Agreement, the Company shall provide the Executive with written notice
at least six months prior to the end of the then current term.

 

3.             POSITION,
DUTIES AND RESPONSIBILITIES.

 

(a)           Commencing
on the Effective Date, the Executive was employed as Group President, Critical
Care of the Company and the Executive has been assigned and shall be assigned
such duties and responsibilities as are reasonably consistent with such
positions and such other duties and responsibilities as the CEO or the
Executive’s direct supervisor from time to time deem appropriate.

 

(b)           During the Term of
Employment, the Executive shall devote his entire business time, attention and
energies to the business and interest of the Company in performing his duties

 

3

 

and responsibilities under this Agreement, and to that
end, the Executive shall not serve on the board of directors of other
corporations or entities without the prior approval of the Board.

 

(c)           Notwithstanding
anything contained in Section 3(b) to the contrary, nothing herein shall
preclude the Executive from (i) serving on the boards of directors of a
reasonable number of trade associations and/or charitable organizations, (ii)
engaging in charitable activities and community affairs, and (iii) managing his
personal investments and affairs, provided, that such activities do not materially
interfere with the proper performance of his duties and responsibilities as set
forth in this Section 3.

 

4.                                       BASE
SALARY.

 

The Executive shall be paid an annualized base salary,
payable in accordance with the regular payroll practices of the Company, of $
205,000, which amount may be increased from time to time in the discretion of
the Board.

 

5.                                       ANNUAL
CASH INCENTIVE AWARD.

 

During the Employment Term, the
Executive shall participate in (a) the VIASYS Healthcare Inc. Management
Incentive Plan with a target bonus of 50%, or such other amount as may
be determined by Board or the appropriate committee or individual and (b) any
other incentive programs established by the Company for its senior level
executives generally.

 

6.                                       EMPLOYEE
BENEFIT PROGRAMS.

 

During the Employment Term, the Executive shall be
entitled to participate in all employee pension and welfare benefit plans and
programs made available to the Company’s senior level executives.

 

7.                                       PERQUISITES.

 

During the Term of Employment, the Executive shall be
entitled to participate in all of the Company’s executive perquisites in
accordance with the terms and conditions of such arrangements as are in effect
from time to time for the Company’s senior-level executives.

 

8.             REIMBURSEMENT
OF BUSINESS AND OTHER EXPENSES.

 

The Executive is authorized to incur reasonable
expenses in carrying out his duties and responsibilities under this Agreement
and the Company shall promptly reimburse him for such expenses, subject to
documentation in accordance with the Company’s policy.

 

9.                                       TERMINATION
OF EMPLOYMENT.

 

The Executive’s employment hereunder shall terminate
effective immediately upon the earlier to occur of the following events:

 

(a)           death of the Executive;

 

4

 

(b)           receipt by either party
of a Notice of Termination for Disability from the other party, but in any
event not until the Executive is determined to be disabled in accordance with
Section 1(g);

 

(c)           the day the Executive
receives a Notice of Termination for Cause from the Company.

 

(d)           the 30th day
following  receipt by the Executive of a
Notice of Termination Without Cause from the Company; and

 

(e)           the 31st day following
receipt by the Company of a Notice of Termination of Employment from the
Executive.

 

10.                                 RIGHTS
AND REMEDIES UPON TERMINATION OF EMPLOYMENT.

 

(a)           TERMINATION DUE TO
DEATH.  In the event that the
Executive’s employment is terminated due to his death, his estate or his
beneficiaries, as the case may be, shall be entitled to the following benefits:

 

(i)            The Executive’s then
current Base Salary through the Termination Date, which shall be payable in a
lump sum within thirty (30) days of the Termination Date;

 

(ii)           An annual cash
incentive bonus award for the year in which the termination occurs, pro-rated
through the Termination Date, determined in accordance with the provisions of
Section 5 (the “Pro-Rated Annual Bonus”), which shall be payable when incentive
awards are normally paid to comparable executives; and

 

(iii)          Each outstanding option
granted under an equity compensation plan maintained by the Company to purchase
shares of stock of the Company shall become immediately exercisable, and
thereafter, shall remain exercisable until the first anniversary of Termination
Date.

 

(b)           TERMINATION DUE TO
DISABILITY.  In the event that the
Executive’s employment is terminated by either party due to his Disability, he
shall be entitled to the following benefits:

 

(i)            Disability benefits in
accordance with the long-term disability (“LTD”) program then in effect for
comparable executives of the Company;

 

(ii)           The Executive’s then
current Base Salary through the end of the LTD elimination period, which shall
be payable in a lump sum within thirty (30) days of the Termination Date;

 

(iii)          The Pro-Rated Annual
Bonus, payable when incentive awards are normally paid to comparable
executives; and

 

(iv)          Each outstanding option
granted under an equity compensation plan maintained by the Company to purchase
shares of stock of the Company shall become

 

5

 

immediately exercisable,
and thereafter, shall remain exercisable until the first anniversary of
Termination Date.

 

(c)           TERMINATION BY THE
COMPANY FOR CAUSE.  In the event that
the Company terminates the Executive’s employment for Cause:

 

(i)            The Executive shall be
entitled to receive his current Base Salary through the Termination Date, which
shall be payable in a lump sum within thirty (30) days of the Termination Date;

 

(ii)           The Executive shall not
be entitled to any benefits, severance or other compensation; and

 

(iii)          Any portion of an
outstanding option granted under an equity compensation plan maintained by the
Company to purchase shares of stock of the Company that has previously become
exercisable shall remain exercisable for a period of 90 days after the
Termination Date.  Any portion of an
outstanding option granted under an equity compensation plan maintained by the
Company that is not exercisable as of the Termination Date shall immediately
terminate.

 

(d)           TERMINATION BY THE
EXECUTIVE.  In the event of a
termination of employment by the Executive on his own initiative, other than
due to (A) death, (B) Disability, (C) the expiration of the then current Term
of Employment, or (D) a notice from one party to the other of its intent not to
extend the Employment Term

 

(i)            The Executive shall be
entitled to receive his current Base Salary through the Termination Date, which
shall be payable in a lump sum within thirty (30) days of the Termination Date;

 

(ii)           The Executive shall not
be entitled to any benefits, severance or other compensation; and

 

(iii)          Any portion of an
outstanding option granted under an equity compensation plan maintained by the
Company to purchase shares of stock of the Company that has previously become
exercisable shall remain exercisable for a period of 90 days after the
Termination Date.  Any portion of an
outstanding option granted under an equity compensation plan maintained by the
Company that is not exercisable as of the Termination Date shall immediately
terminate.

 

(e)           TERMINATION WITHOUT
CAUSE.  In the event of a termination of
the Executive’s employment by the Company, other than due to (A) death, (B)
Disability, (C) Cause, (D) a notice from one party to the other of its intent not
to extend the Employment Term, the Executive shall be entitled to the following
benefits:

 

(i)            The Executive’s then
current Base Salary through the Termination Date, which shall be payable in a
lump sum within thirty (30) days of the Termination Date;

 

6

 

(ii)           The Pro-Rated Annual
Bonus, payable when incentive awards are normally paid to comparable
executives;

 

(iii)          An amount equal to the
sum of (A) the Executive’s then current Base Salary and (B) the most recent
cash incentive paid or the target bonus available under the VIASYS Management
Incentive Plan then in existence, whichever is higher, payable in a lump sum
within ninety (90) days of the Termination Date; and

 

(iv)          Any portion of an
outstanding option granted under an equity compensation plan maintained by the
Company to purchase shares of stock of the Company that has previously become
exercisable shall remain exercisable for a period of 90 days after the
Termination Date. Any portion of an outstanding option granted under an equity
compensation plan maintained by the Company that is not exercisable as of the
Termination Date shall immediately terminate.

 

(f)             OTHER TERMINATION
BENEFITS.  In the case of any of the
foregoing terminations, to the extent not previously paid or provided or
otherwise contrary to the terms and conditions of this Agreement, the Executive
or his estate or beneficiaries, as the case may be, shall also be entitled to
the balance of any incentive awards due the Executive but not yet paid
(including awards due for performance periods that have been completed, but
have not yet been paid), any expense reimbursements due the Executive, and
other benefits, if any, in accordance with applicable plans or programs of or
contracts or agreements of the Executive with the Company.  In addition, unless indicated otherwise in
this Agreement, the treatment of any options granted to the Executive in the
case of any of the foregoing terminations, shall be governed by the terms of
the VIASYS Equity Incentive Plan or other relevant equity compensation plan or
any associated stock option agreement.

 

(g)           TERMINATION FOLLOWING A
CHANGE IN CONTROL.  Notwithstanding
anything to the contrary in this Agreement, in the event the Executive’s
employment with the Company is terminated within twelve (12) months following a
Change in Control, the Executive shall be entitled to benefits equal to (i) the
benefits due and payable to him under the change of control plan sponsored by
the Company, if any, (the “Change of Control Plan”), or (ii) the benefits due
and payable to him under Section 10 of this Employment Agreement as a result of
such termination.  In furtherance
thereof, it is the parties’ understanding that in the event of a termination
under such circumstances, the Executive shall only be entitled to receive
benefits payable under either the Change of Control Plan or this Employment
Agreement (but not both).

 

(h)           NATURE OF
PAYMENTS.  Any amounts due under this
Section 11 are in the nature of severance payments considered to be reasonable
by the Company and are not in the nature of a penalty.

 

(i)            NO MITIGATION; NO
OFFSET.  The Executive shall not be
required to mitigate the amount of any payment or benefit provided in this
Section 10 by seeking other employment or otherwise.  Further, except as provided in Section 10, the amount of any
payment or benefits provided for in this Section 10 shall not be reduced by any
compensation earned by the Executive as a result of employment by another
employer.

 

7

 

11.           CONFIDENTIALITY
& ASSIGNMENT OF INVENTIONS.

 

(a)           The Executive shall
execute and deliver to the Company on the Effective Date the Company’s standard
employee Confidentiality and Assignment of Inventions Agreement, substantially
in the form attached hereto as EXHIBIT A.

 

(b)           Upon the termination of
the Executive’s employment, the Executive (or in the event of his death, the
Executive’s personal representative) shall promptly surrender to the Company
the original and all copies of any materials containing confidential
information of the Company which are then in the Executive’s possession or
control; provided, however, that the Executive shall not be required to
surrender his rolodexes, personal diaries and other items of a personal nature.

 

12.                                 NON-COMPETITION;
NON-SOLICITATION.

 

(a)           The Executive
acknowledges (i) that in the course of his employment with the Company he will
become familiar with trade secrets and customer lists of, and  other confidential information concerning,
the Company and its Affiliates, customers, and clients and (ii) that his
services will be of special, unique and extraordinary value to the Company.

 

(b)           The Executive agrees
that during the Term of Employment and for a period of one year following his
termination of employment for any reason he shall not in any manner, directly
or indirectly, through any person, firm, corporation or enterprise, alone or as
a member of a partnership or as an officer, director, stockholder, investor or
employee of or advisor or consultant to any person, firm, corporation or
enterprise or otherwise, engage or be engaged, or assist any other person,
firm, corporation or enterprise in engaging or being engaged (collectively, the
“Restricted Activity”), in any Competitive Activity (as defined below).  For the purposes of this Section 12, a
“Competitive Activity” shall mean, unless otherwise determined by the Board, a
business that (i) is being conducted by the Company or any Affiliate at the
time in question and (ii) was being conducted, or was under active
consideration to be conducted, by the Company or any Affiliate, at the date of
the termination of the Executive’s employment. 
It is agreed and understood that the prohibitions provided for in this
Section 12(b) shall not restrict the Executive from engaging in Restricted
Activity for any subsidiary, division or Affiliate or unit of a company
(collectively a “Related Entity”) if that Related Entity is not engaged in a
Competitive Activity, irrespective of whether some other Related Entity of that
company engages in what would otherwise be considered to be a Competitive
Activity (as long as Executive does not engage in Restricted Activity for such
other Related Entity).

 

(c)           The Executive further
agrees that during the Non-Competition Period he shall not (i) in any manner,
directly or indirectly, hire or cause to be hired any employee of or advisor or
consultant to the Company or any of its Affiliates for any purpose or in any
capacity whatsoever, or (ii) in connection with any business to which Section
12(b) applies, call on, service, solicit or otherwise do business with any
customer of the Company or any of its Affiliates; provided, however, that the
restriction contained in clause (i) of this Section 12(c) shall not apply to,
or interfere with, the proper performance by the Executive of his duties and
responsibilities under Section 3 of this Agreement.

 

8

 

(d)           Nothing in this Section
12 shall prohibit the Executive from being a passive owner of not more than two
percent (2%) of the outstanding common stock, capital stock and equity of any
firm, corporation or enterprise so long as the Executive has no active
participation in the management or business of such firm, corporation or
enterprise.

 

(e)           If the restrictions
stated herein are found by a court to be unreasonable, the parties hereto agree
that the maximum period, scope or geographical area reasonable under such
circumstances shall be substituted for the stated period, scope or area and
that the court shall revise the restrictions contained herein to cover the
maximum period, scope and area permitted by law.

 

13.                                 REMEDIES.

 

Each of the parties to this Agreement shall be
entitled to enforce its rights under this Agreement specifically, to recover
damages and costs (including reasonable attorney’s fees) caused by 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 would not be an adequate remedy for any breach
of the provisions of this Agreement and that any party may in its sole
discretion apply to any court of law or equity of competent jurisdiction
(without posting any bond or deposit) for specific performance and/or other
injunctive relief in order to enforce or prevent any violations of the
provisions of this Agreement.  Nothing
in this Section 13 is intended to prevent the parties from raising any and all
defenses with respect to the necessity for, and scope of, such injunctive or
equitable relief.

 

14.                                 RESOLUTION
OF DISPUTES.

 

Subject to the provisions of Section 13 regarding
specific performance and/or injunctive relief, any disputes arising under or in
connection with this Agreement shall be resolved by binding arbitration, to be
held in Philadelphia, Pennsylvania, in each case in accordance with the rules
and procedures of the American Arbitration Association.  Judgment upon the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof.

 

15.                                 EXPENSES.

 

(a)           Subject to the
provisions of Sections 13 and 14, in the event any party hereto (for the
purposes of this Section 15, the “Aggrieved Party”) seeks a judicial
adjudication of, or an award in arbitration to enforce, the Aggrieved Party’s
rights under, or to recover damages for the breach of, this Agreement, the
Aggrieved Party shall be entitled to recover from the other party or parties,
as the case may be, and shall be indemnified by the other party or parties, as
the case may be, against, any and all costs actually and reasonably incurred by
the Aggrieved Party in such judicial adjudication or arbitration, including,
without limitation, reasonable attorney’s fees, but only if the Aggrieved Party
prevails in such proceeding.

 

16.           ASSIGNABILITY;
BINDING NATURE.

 

This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors, heirs (in the case of
the Executive) and assigns.  Rights or
obligations of the Company under this Agreement may be assigned or transferred
by the Company pursuant to

 

9

 

a merger or consolidation in which the Company is not the continuing
entity, or the sale or liquidation of all or substantially all of the assets of
the Company, provided that the assignee or transferee is the successor to all
or substantially all of the assets of the Company and such assignee or
transferee assumes the liabilities, obligations and duties of the Company, as
contained in this Agreement, either contractually or as a matter of law.  The Company further agrees that, in the
event of a sale of assets or liquidation as described in the preceding
sentence, it shall take whatever action it reasonably can in order to cause
such assignee or transferee to expressly assume the liabilities, obligations
and duties of the Company hereunder.  No
rights or obligations of the Executive under this Agreement may be assigned or
transferred by the Executive other than his rights to compensation and
benefits, which may be transferred only by will or operation of law.

 

17.                                 REPRESENTATIONS
AND WARRANTIES.

 

(a)           The Company represents
and warrants that it has all requisite corporate power and authority to enter
into this Agreement and that the performance by the Company of its obligations
under this Agreement will not violate any agreement to which it is a party.

 

(b)           The Executive
represents that the execution of this Agreement by the Executive and the
performance by him of his obligations hereunder will not violate any agreement
to which he is a party.

 

(c)           The Executive hereby
represent and warrants that he is not bound by the terms of any agreement with
any previous employer or other party to refrain from competing, directly or
indirectly, with the business of such previous employer or any other
party.  The Executive further represents
and warrants that Executive’s performance of all the terms of this Agreement
and as an employee of the Company does not and will not breach any agreement to
keep in confidence proprietary information, knowledge or data acquired by the
Executive in confidence or in trust prior to Executive’s employment with the
Company.  The Executive will not
disclose to the Company or induce the Company to use any confidential or
proprietary information or material belonging to any previous employer or
others.  The Executive will not
hereafter grant anyone any rights inconsistent with the terms of this
Agreement.

 

18.           ENTIRE
AGREEMENT.

 

This Agreement and the Exhibit attached hereto and
incorporated herein by reference contain the entire understanding and agreement
between the parties concerning the subject matter hereof and thereof and
supersede all prior agreements, understandings, discussions, negotiations and
undertakings, whether written or oral, between the parties with respect
thereto.  This is an integrated
document.

 

19.                                 AMENDMENT
OR WAIVER.

 

No provision in this Agreement may be amended unless
such amendment is agreed to in writing and signed by the Executive and an
authorized officer of the Company, other than the Executive.  No waiver by either party of any breach by
the other party of any condition or provision contained in this Agreement to be
performed by such other party shall be deemed a waiver of a similar or
dissimilar condition or provision at the same or any prior or subsequent

 

10

 

time.  Any such waiver must be
in writing and signed by the Executive or an authorized officer of the Company,
other than the Executive, as the case may be.

 

20.                                 SEVERABILITY.

 

In the event that any provision or portion of this
Agreement shall be determined to be invalid or unenforceable for any reason, in
whole or in part, the remaining provisions of this Agreement shall be
unaffected thereby and shall remain in full force and effect to the fullest
extent permitted by law so as to achieve the purposes of this Agreement.

 

21.                                 SURVIVORSHIP.

 

Except as otherwise expressly set forth in this
Agreement, the respective rights and obligations of the parties hereunder shall
survive any termination of the Executive’s employment.  This Agreement itself (as distinguished from
the Executive’s employment) may not be terminated by either party without the
written consent of the other party.

 

22.                                 REFERENCES.

 

In the event of the Executive’s death or a judicial
determination of his incompetence, reference in this Agreement to the Executive
shall be deemed, where appropriate, to refer to his beneficiary, estate or
other legal representative.

 

23.                                 GOVERNING
LAW/JURISDICTION.

 

This Agreement shall be governed in accordance with
the laws of the State of Delaware without reference to principles of conflict
of laws.

 

24.                                 NOTICES.

 

All notices and other communications required or
permitted hereunder shall be in writing and shall be deemed given when (a)
delivered personally, (b) sent by certified or registered mail, postage
prepaid, return receipt requested or (c) delivered by overnight courier
(provided that a written acknowledgment of receipt is obtained by the overnight
courier) to the party concerned at the address indicated below or to such
changed address as such party may subsequently give such notice of:

 

	
  If to the Company:

  	
   

  	
  VIASYS Healthcare Inc.

  227 Washington Street, Suite 200

  Conshohocken, PA 19428

  
	
   

  	
   

  	
   

  
	
  Copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to Executive:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

11

 

25.           HEADINGS.

 

The headings of the sections contained in this
Agreement are for convenience only and shall not be deemed to control or affect
the meaning or construction of any provision of this Agreement.

 

26.           COUNTERPARTS.

 

This Agreement may be executed in counterparts.

 

 

[Remainder of Page
Intentionally Left Blank]

 

12

 

IN WITNESS WHEREOF, the undersigned have executed this
Agreement as of the restatement set forth above.

 

	
   

  	
  VIASYS HEALTHCARE INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:  Randy
  Thurman

  
	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Executive]

  

 

13

 

EXHIBIT A

 

Confidentiality and Assignment
of Inventions Agreement

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]