Document:

exv10w5

 

Exhibit 10.5

CONFIDENTIAL SEPARATION AGREEMENT AND RELEASE

          THIS AGREEMENT is made and entered into between Marc R. Sportsman (“Employee”) and ATS
MEDICAL, INC. (“the Company”).

          WHEREAS, the Employee was employed by the Company; and

          WHEREAS, the Employee signed an Employment Agreement dated April 15, 2003, and

          WHEREAS, the Employee’s employment is being terminated, and

          WHEREAS, the purpose of this Separation Agreement is to set forth the terms and conditions
under which the Employee and the Company will sever their employment relationship.

          NOW, THEREFORE, in consideration of the recitals stated above and the mutual agreements,
covenants, and provisions contained in this Separation Agreement, the parties agree as follows:

     Termination. The Employee and the Company agree that the effective date of the
Employee’s termination is February 2, 2007. Employee will, however, be paid through February 16,
2007.

     Payments.

As consideration for the terms contained in this Agreement, including the Employee’s
release of claims, his agreement to maintain the confidentiality of the Agreement,
and his promise to abide by the restrictive covenants in his Employment Agreement,
the Employee will receive 26 biweekly payments of nine thousand five hundred forty
and 64/100 dollars ($9,540.86). The total amount of such payments will be two
hundred forty eight thousand sixty two and 36/100 dollars ($248,062.36), less
applicable withholdings for taxes.

The Company will also pay health insurance premiums for the Employee through
February 2008, consistent with Employee’s current compensation program.

Employee shall have no right to any compensation, benefits, salary or bonus beyond
that referenced in the preceding subparagraphs of this Section 2. These sums will
only be paid, however, provided the rescission period referred to in Section 7 has
expired without rescission of this Agreement by the Employee.

The Company will pay the Employee and the Employee will accept from the Company, in
full and final settlement, the above-referenced consideration.

     Employee agrees that he is solely responsible for any and all liability created under the
federal and state tax laws and agrees to indemnify the Company and hold it harmless for all such
liability or obligations, if any. Further, the Company makes no warranty concerning the

 

treatment of any sums paid hereunder under said laws and employee has not relied upon any such
warranty.

     The Employee understands that no additional money is to be paid or other consideration given
to him on account of his employment or termination of employment with the Company other than the
consideration referenced in this Agreement.

     Full Compensation. The payments that will be made on Employee’s behalf to the
Employee for his benefit pursuant to this Separation Agreement will compensate him for and
extinguish any and all of his claims arising out of his employment with the Company or his
employment termination, including but not limited to claims for attorneys’ fees and costs, and any
and all claims for any type of legal or equitable relief.

     Benefits. The Employee is a participant in various employee benefit plans sponsored
by the Company. The payment of benefits, including the amounts and the timing thereof, will be
governed by the terms of the employee benefit plans, except to the extent those rights have been
explicitly extended in this Agreement. The Company will answer any reasonable questions that the
Employee may have from time to time and will offer him the same assistance given other participants
in employee benefit plans so long as he is entitled to benefits thereunder.

     Records, Documents and Property. Employee will return to the Company all its
property, including any keys, cell phones, computers, and any documents or property of the Company.
The Employee will also confirm that he has no duplicates of any documents or items returned.

     General Release. In consideration of the payments and other undertakings stated
herein, the Employee will sign a separate Release in the form attached hereto as Exhibit A at the
time he signs this Separation Agreement. This Separation Agreement shall not be interpreted or
construed to limit the General Release in any manner, or vice versa.

     Rescission. Employee will have up to 21 days to consider this Separation Agreement
before signing it. Once this Agreement is executed, Employee may rescind this Separation Agreement
within seven (7) calendar days to reinstate federal Age Discrimination in Employment Act claims and
within fifteen (15) calendar days to reinstate Minnesota Human Rights Act claims under state law.
To be effective, any rescission within the relevant time periods must be in writing and delivered
to the Employer, in care of Ms. Barb Searle, ATS Medical, Inc., 3905 Annapolis Lane, Suite 105,
Minneapolis, Minnesota, 55447, either by hand or by mail within the 15-day period. If sent by
mail, the rescission must be (1) postmarked within the 15-day period; (2) properly addressed to the
Employer; and (3) sent by certified mail, return receipt requested.

     If the Employee gives notice of rescission within the 15-day time period, he shall no longer
be entitled to the payments or benefits referred to in Section 2, and his original involuntary
termination shall remain as stated above.

     Confidentiality of Terms. The terms of this Separation Agreement and Release will be
treated as confidential by the Employee and he shall not disclose its terms to anyone except the
Employee may disclose the terms of this Agreement to his legal counsel,

 

professional accountant, tax or professional financial advisor, spouse or as may be required
by law or court order.

     Restrictions of Employment Agreement. The restrictions on the use of inventions,
confidential information, competitive activities, and the provisions dealing with the enforcement
of those restrictions contained in the Employment Agreement dated April 15, 2003, specifically
sections 5, 6 and 7, will continue in full force and effect even though employment under that
Employment Agreement is terminated. Employee confirms his commitments to those restrictions and
recognizes that the payments in Section 2 above as further consideration for his promise to abide
by those restrictions. Any failure to abide by those restrictions will result in forfeiture of all
payments, whether paid or unpaid, and unvested stock, described in Section 2.

     Non-Disparagement. The Employee agrees that he shall not disparage or defame the
Company or its agents or employees in any respect or make any comments concerning their employment
relationship. Employee agrees not to make any negative statements concerning his relationship with
the Company, either in the employment or personal context.

     Non-Admission. Nothing in this Separation Agreement is intended to be, nor will be
deemed to be, an admission of liability by the Company that it has violated any state or federal
statute, local ordinance or principle of common law, or that it has engaged in any wrongdoing.

     Non-Assignment. The parties agree that this Separation Agreement and the Release will
not be assignable by Employee unless the Company agrees in writing.

     Injunctive Relief. Employee agrees that the Company will suffer irreparable injury if
Employee breaches any portion of this Agreement. Therefore, Employee agrees that in addition to
any legal action for money damages, an action for injunctive relief will be appropriate upon such a
breach, and further agrees to reimburse the Company for its reasonable attorneys’ fees, costs, and
expenses incurred in enforcing Employee’s obligations hereunder and further agrees to waive any
requirement that the Company post a bond as a condition of injunctive relief.

     Merger/Entire Agreement. This Separation Agreement and the Release attached as
Exhibit A, and the Employment Agreement dated April 15, 2003 constitute the entire agreements
between the parties with respect to the employment, association and the termination of the
Employee’s employment relationship with the Company, and the parties agree that there were no
inducements or representations leading to the execution of this Separation Agreement or the
Release, except as herein contained. Employee agrees that any and all claims which he might have
had against the Company are fully released and discharged by this Separation Agreement and the
Release, and that the only claims which he may hereafter assert against the Company will be derived
only from an alleged breach of the terms of this Separation Agreement.

     Invalidity. In case any one or more of the provisions of this Separation Agreement
shall be invalid, illegal, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions contained in this Separation Agreement will not in any
way be affected or impaired thereby.

 

     Voluntary and Knowing Action. The Employee acknowledges that he has been advised of
his right to be represented by his own attorney, that he has read and understands the terms of this
Separation Agreement, and that he is voluntarily entering into the Separation Agreement to resolve
any disputes with the Company, and that he has not relied upon any statements made by the Company,
its agents or attorneys.

     Governing Law and Jurisdiction. This Separation Agreement will be construed and
enforced in accordance with the laws of the State of Minnesota. Jurisdiction and venue shall only
be appropriate in Hennepin County, Minnesota.

     Counterparts. This Separation Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which shall constitute one and
the same instrument.

     IN WITNESS WHEREOF, the parties hereto have executed this Separation Agreement on the dates
indicated at their respective signatures.

	 	 	 	 	 	 	 
	Dated: February 23, 2007	 	/s/ Marc R. Sportsman	 	 
	 	 	 	 	 
	 	 	Marc Sportsman, Employee	 	 
	 
	 	 	 	 	 	 
	 	 	ATS MEDICAL, INC.	 	 
	 
	 	 	 	 	 	 
	Dated: March 6, 2007

	 	By:
	 	/s/Michael Kramer	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Its: Acting Chief Financial Officer
	 	 

 

EXHIBIT A

RELEASE

Definitions. I intend all words used in this Release to have their plain meanings in
ordinary English. Technical legal words are not needed to describe what I mean. Specific terms I
use in this Release have the following meanings:

	 	A.	 	I, me, and my include both me and anyone who has or
obtains any legal rights or claims through me.
	 
	 	B.	 	Company, as used herein, shall at all times mean ATS Medical, Inc., its
parents, subsidiaries, successors and assigns, their affiliated and predecessor
companies, their successors and assigns, their affiliated and predecessor companies and
the present or former officers, directors, employees and agents of any of them, whether
in their individual or official capacities, and the current and former trustees or
administrators of any pension or other benefit plan applicable to the employees or
former employees of the Company, in their official and individual capacities.
	 
	 	C.	 	My Claims mean all of the rights I have now to any relief of any kind
from the Company, whether or not I now know about those rights, arising out of my
employment with the Company, and my employment termination, including but not limited
to, claims for breach of contract; fraud or misrepresentation; violation of the
Minnesota Human Rights Act, the Age Discrimination in Employment Act, or other federal,
state, or local civil rights laws based on age or other protected class status;
defamation; intentional or negligent infliction of emotional distress; breach of the
covenant of good faith and fair dealing; promissory estoppel; negligence; wrongful
termination of employment; and any other claims for unlawful employment practices.
However, this release shall not affect any claims which could be made under any welfare
benefit plan or any pension or retirement plan through the Company.

Agreement to Release My Claims. I am receiving a substantial amount of money paid by the
Company. I agree to give up all My Claims against the Company in exchange for those payments
specified in the attached Confidential Separation Agreement. I will not bring any lawsuits, file
any charges, complaints, or notices, or make any other demands against the Company based on My
Claims. The money I am receiving is a full and fair payment for the release of all My Claims. The
Company does not owe me anything in addition to what I will be receiving.

I understand and agree that, notwithstanding anything to the contrary in this Release, nothing in
this Release is intended to or shall: (a) impose any condition, penalty, or other limitation
affecting my right to challenge this Release; (b) constitute an unlawful release or waiver of any
of my rights under any laws; or (c) prevent, impede, or interfere with my ability or right to: (i)
provide truthful testimony if under subpoena to do so; (ii) file any charge or complaint (including
a challenge to the validity of this Release) with, or participate in an investigation or proceeding
conducted by, the EEOC, the MDHR, or any other governmental entity; or (iii) respond as otherwise
required and/or provided for by law. Notwithstanding anything to the contrary in this

 

Release, nothing in this Release is intended to be or shall be construed to be a violation of any
law.

     Additional Agreements and Understandings. Even though the Company is paying me to release
My Claims, the Company does not admit that it may be responsible or legally obligated to me. In
fact, the Company denies that it is responsible or legally obligated for My Claims or that it has
engaged in any wrongdoing.

     I understand that I may rescind (that is, cancel) this Release within seven (7) calendar days
of signing it to reinstate federal claims and within fifteen (15) calendar days of signing it to
reinstate state claims. To be effective, my rescission must be in writing and delivered to the
Company in care of Ms. Barb Searle, ATS Medical, Inc., 3905 Annapolis Lane, Suite 105, Minneapolis,
Minnesota, 55447, either by hand or by mail within the 15-day period. If sent by mail, the
rescission must be:

1. Postmarked within the 15-day period;

2. Properly addressed to the Company; and

3. Sent by certified mail, return receipt requested.

     I have read this Release carefully and understand all its terms. I have had an opportunity to
discuss this Release with my own attorney. In agreeing to sign this Release, I have not relied on
any statements or explanations made by the Company or its attorneys.

     I understand and agree that this Release, the Separation Agreement to which it is attached,
and the Employment Agreement dated April 15, 2003 contain all the agreements between the Company
and me. We have no other written or oral agreements.

	 	 	 	 	 
	Dated: February 23, 2007

	 	/s/ Marc R. Sportsman
	 	 
	 

	 	 	 	 
	 

	 	    Marc Sportsman, Employeeexv10w1

 

EXHIBIT 10.1

FOURTH AMENDMENT TO CREDIT AGREEMENT

     THIS FOURTH AMENDMENT TO CREDIT AGREEMENT dated as of March 9, 2007 (this “Amendment”), is
entered into among WINTRUST FINANCIAL CORPORATION (the “Borrower”) and LASALLE BANK
NATIONAL ASSOCIATION (in its individual capacity, “Lender”).

RECITALS

     A. The Borrower and the Bank entered into that certain Credit Agreement dated as of November
1, 2005, as amended by that certain First Amendment to Credit Agreement dated as of June 1, 2006,
as amended by that certain Second Amendment to Credit Agreement dated as of July 27, 2006 and as
amended by that certain Third Amendment to Credit Agreement dated as of January 1, 2007
(collectively, with all amendments thereto, the “Agreement”);

     B. The parties hereto have agreed to increase the aggregate amount of the Term A Loans from
$50,000,000 to $100,000,000.

     NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the receipt and adequacy of which me hereby acknowledged, the parties hereto agree as follows:

     1. DEFINITIONS. All capitalized terms used herein without definition shall have the
respective meanings set forth in the Agreement.

     2. AMENDMENTS TO THE AGREEMENT.

     2.1 Amendment to Section 1(a) of the Agreement. Section 1(a) of the
Agreement is hereby deleted in its entirety and in lieu thereof is inserted the following:

     (a) Each Lender agrees to make a loan (each a “Term A Loan” and
collectively the “Term A Loans”) to the Borrower in the principal
amount of the amount set forth opposite their names on the signature page.
The aggregate amounts of the Term A Loans shall not exceed ONE HUNDRED
MILLION DOLLARS ($100,000,000).

     3. WARRANTIES. To induce Lender to enter into this Amendment, the Borrower warrants that:

          3.1 Authorization. The Borrower is duly authorized to execute and deliver this
Amendment and is and will continue to be duly authorized to borrow monies under the Agreement, as
amended hereby, and to perform its obligations under the Agreement, as amended hereby.

          3.2 No. Conflicts. The execution and delivery of this Amendment and the performance
by the Borrower of its obligations under the Agreement as amended hereby, do not

 

 

and will not conflict with any provision of law or of the charter or by-laws of the Borrower
or of any agreement binding upon the Borrower.

          3.3 Validity and Binding Effect. The Agreement, as amended hereby, is a legal, valid
and binding obligation of the Borrower, enforceable against the Borrower in accordance with its
terms, except as enforceability may be limited by bankruptcy, insolvency or other similar laws of
general application affecting the enforcement of creditors’ rights or by general principles of
equity limiting the availability of equitable remedies.

          3.4 No Default. As of the date hereof, no Event of Default under Section 9 of
the Agreement, as amended by this Amendment or event or condition which, with the giving of notice
or the passage of time, shall constitute an Event of Default, has occurred or is continuing.

          3.5 Warranties. As of the date hereof, the representations and warranties in
Section 5 of the Agreement are true and correct as though made on such date, except for
such changes as are specifically permitted under the Agreement,

     4. CONDITIONS PRECEDENT. This Amendment shall become effective as of the date above first
written after receipt by the Administrative Agent of the following documents:

	 	(a)	 	This Amendment duly executed by the Borrower;

	 
	 	(b)	 	The execution of a Term A Revolving Note in
favor of LaSalle Bank National Association in the amount of
$100,000,000; and

	 
	 	(c)	 	Such other documents and instruments as the
Bank reasonably requests.

     5. GENERAL.

          5.1 Law. This Amendment shall be construed in accordance with and governed by the
laws of the State of Illinois.

          5.2 Successors. This Amendment shall be binding upon the Borrower and Lender and
their respective successors and assigns, and shall inure to the benefit of the Borrower and Lender
and the successors and assigns of Lender. No other Person shall be a direct or indirect legal
beneficiary of, or have any direct or indirect cause of action or claim in connection with, this
Amendment or any of the other Loan Documents. The Borrower may not assign or transfer any of its
rights or Obligations under this Amendment without the prior written consent of Lender.

          5.3
Counterparts. This Amendment may be executed in any number of counterparts and by
the different parties hereto on separate counterparts and each such counterpart shall be deemed to
be an original, but all such counterparts shall together constitute but one and the same agreement.
Receipt of an executed signature page to this Amendment by facsimile or other electronic
transmission shall constitute effective delivery thereof. Electronic records of executed Loan
Documents maintained by the Lenders shall deemed to be originals.

 

 

          5.3 Confirmation of the Agreement. Except as amended hereby, the Agreement shall
remain in full force and effect and is hereby ratified and confirmed in all respects.

(remainder of page left intentionally blank; signature page follows)

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date
first above written.

	 	 	 	 	 	 	 	 	 	 	 
	WINTRUST FINANCIAL CORPORATION	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Its:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	727 North Bank Lane	 	 	 	 	 	 	 	 
	Lake Forest, Illinois 60645	 	 	 	 	 	 	 	 
	Attention: Edward J. Wehmer	 	 	 	 	 	 	 	 
	Facsimile: (847) 615-4091	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	LASALLE BANK NATIONAL ASSOCIATION	 	 
	TERM LOAN A: $100,000,000.00	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	PRO RATA SHARE: 100%	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	TERM LOAN B: $1,000,000.00	 	 	 	135 South LaSalle Street	 	 
	PRO RATA SHARE: 100%	 	 	 	Chicago, Illinois 60674	 	 
	 	 	 	 	 	 	Attention: Jeffery J. Bowden	 	 
	 	 	 	 	 	 	Facsimile: (312) 904-6352	 	 

 

 

TERM A NOTE

 

			
	$100,000,000
	 	Dated as of March 9, 2007

     FOR VALUE RECEIVED, WINTRUST FINANCIAL CORPORATION, an Illinois corporation (the
“Maker”) promises to pay to the order of LASALLE BANK NATIONAL ASSOCIATION, a national
banking association (the “Bank”) the lesser of the principal sum of ONE HUNDRED MILLION
DOLLARS ($100,000,000), or the aggregate unpaid principal amount outstanding under the Credit
Agreement dated as of November 1, 2005 (as amended from time to time, the “Credit
Agreement”) between the Maker, as Borrower, and LaSalle Bank National Association, as Lender,
at the maturity or maturities and in the amount or amounts as stated on the records of the Bank
together with interest (computed on actual days elapsed on the basis of a 360 day year) on any and
all principal amounts outstanding hereunder from time to time from the date hereof until maturity.
Interest shall be payable at the rates of interest and the times set forth in the Credit Agreement.
All unpaid principal, and accrued interest, if not paid sooner, shall be due and payable in full
on June 1, 2007.

     This Note shall be available for direct advances.

     Principal and interest shall be paid to the Bank at its office at 135 South LaSalle Street,
Chicago, Illinois 60603, or at such other place as the holder of this Note may designate in writing
to the Maker. This Note may be prepaid in whole or in part as provided for in the Credit Agreement.

     This Note evidences indebtedness incurred under the Credit Agreement dated as of November 1,
2005, as amended from time to time, between the Maker, as Borrower and LaSalle Bank National
Association, to which reference is hereby made for a statement of the terms and conditions under
which the due date of the Note or any payment thereon may be accelerated. The holder of this Note
is entitled to all of the benefits provided for in the Credit Agreement.

     The Maker agrees that in action or proceeding instituted to collect or enforce collection of
this Note, the amount on the Bank’s records shall be conclusive and binding evidence, absent
demonstrable error, of the unpaid principal balance of this Note.

	 	 	 	 	 	 	 
	 	 	WINTRUST FINANCIAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:

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