Document:

Exhibit 10.1

 

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

 

This Second Amendment to Employment Agreement  (“Amendment”) is made as of March 24,
2005 by and between Curative Health Services, Inc., a Minnesota corporation (“Company”),
and Paul F. McConnell, an individual resident of the Commonwealth of
Massachussetts (“Executive”).

 

WHEREAS, the Company
and Executive entered into an Employment Agreement dated April 23, 2004 (as
such agreement was amended as of November 15, 2004, and as may be amended from
time to time, the “Employment Agreement”), and a Restricted Stock Unit Award
Agreement dated as of April 23, 2004 (“RSU Agreement”); and

 

WHEREAS, the Company
and Executive desire to make certain changes to the Employment Agreement
relating to the lock-up restrictions applicable to the Designated Shares (as
defined in the Employment Agreement), and to the conditions for payment of the
stay bonus provided for in the Employment Agreement, and also to make certain
changes to the vesting terms for the restricted stock units provided for in the
RSU Agreement (as provided for in an Amendment to RSU Agreement between the
parties dated the date hereof);

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual terms and conditions set forth
herein, the Company and Executive agree as follows:

 

1.               Amendments.   The following provisions of the Employment
Agreement are hereby amended as follows:

 

(a)          Section
3.1(c).  The last sentence of Section
3.1(c) shall be replaced in its entirety with the following:

 

“Except as otherwise
provided in the Restricted Stock Unit Agreement, the Restricted Stock Units
granted to Executive will vest at the rate of one third on the first
anniversary of the Closing Date, and the balance of the Restricted Stock Units
shall vest in equal monthly installments on the last date of each of the eight
(8) successive three-month periods following the first anniversary of the
Closing Date, and not before, provided that Executive remains employed by the
Company continuously from the Closing Date through the respective vesting date.”

 

In addition, the reference to the Restricted
Stock Unit Agreement in this Section shall mean the form of RSU Agreement, as
amended.

 

(b)         Section
3.1(d).  Section 3.1(d) shall be
replaced in its entirety with the following:

 

 

“The Company shall pay and Executive shall receive a cash payment in
the amount of $1.5 million on the third anniversary of the Closing Date,
provided that Executive remains employed by the Company continuously from the
Closing Date through the third anniversary of the Closing Date; except that if
prior to such third anniversary a person or entity which is not then
controlling, controlled by or under common control with the Company acquires
(i) all or substantially all of the assets of the Company, or (ii) common stock
of the Company (other than from the Company), with the effect that after such
acquisition of stock such person or entity holds an aggregate amount of common
stock of the Company greater than 50% of the then outstanding Company common stock,
then in either of these events, such stay bonus shall become due and payable
within 5 business days of such event.  “All
or substantially all” shall be deemed to mean 80% or more of the Company’s
assets on a consolidated basis, in one transaction or a series of related
transactions.

 

Notwithstanding the foregoing, (x) no such accelerated payment shall be
due or paid in the event of any termination of Executive’s employment by the
Company for Cause, and (y) no accelerated payment shall be due or paid in connection
with any issuance of any security by the Company, whether in the form of common
stock of the Company or any other security convertible into common stock of the
Company (including any equity or debt security), except that in the event that
(A) prior to such third anniversary a person or entity which is not then
controlling, controlled by or under common control with the Company acquires
common stock of the Company (even if directly from the Company), with the
effect that after such acquisition of stock such person or entity holds an
aggregate amount of common stock of the Company greater than 50% of the then
outstanding Company common stock, and (B) during the twelve month period
immediately following such change of control Executive’s employment with the
Company is terminated (or not renewed) by the Company without Cause, or by
Executive for Good Reason as defined in subsection (i) or (ii) of Section 4.1
(d) of the Employment Agreement, then such stay bonus shall become due and
payable within 5 business days of such termination of employment.”

 

(c)   Section 3.5.   The second, third and fourth sentences
of Section 3.5 shall be replaced in their entirety with the following:

 

“Executive
agrees that the Designated Shares will be subject to the following lockup
agreement:  Executive will be prohibited
from selling, transferring or otherwise disposing of half of the Designated
Shares until the date that is 30 days after the first anniversary of the
Closing Date, and he will be prohibited from selling, transferring or otherwise
disposing of the other half of the Designated Shares until the date that is 30
days after the second anniversary of the Closing Date (each such period, as
applicable, the “Lockup Period”).  Notwithstanding the foregoing, Executive may
sell or otherwise transfer the Designated Shares, in whole or in part, during
the Lock-up Period (a) to the Executive’s Immediate Family (as defined below)
or to any trust or other entity for the direct or indirect benefit of the
Executive and/or his Immediate Family, provided
that in all such cases, the transferee agrees in writing that the transferee is
receiving and will hold

 

 

the
transferred Designated Shares subject to the lockup provisions of this Section
3.5 and there will be no further transfer of such Designated Shares except in
accordance with such provisions and/or (b) upon the occurrence of a Change of
Control (as defined below) and/or (c) upon the Company terminating this
Agreement without Cause (as defined below) and/or (d) upon Executive terminating
this Agreement for Good Reason (as defined below) and/or (e) upon termination
of Executive’s employment for any other reason (except for termination by the
Company for Cause).  For purposes hereof,
“Immediate Family” means any relationship by blood, marriage or adoption not
more remote than first cousin.”

 

2.     Headings.  The headings of the articles and sections of
this Amendment are inserted for convenience only and shall not be deemed a part
of or affect the construction or interpretation of any provision of this
Amendment.

 

3.     Modifications.  Except as modified hereby, the Employment
Agreement is in all other respects hereby ratified and confirmed.

 

4.     Force and Effect.  This Amendment shall be effective from the
date hereof.

 

IN
WITNESS HEREOF, the parties have executed this
Amendment effective as of the date first set forth above.

 

 

	
  PAUL F.
  MCCONNELL

  	
  CURATIVE
  HEALTH SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Paul F. McConnell

  	
   

  	
  By

  	
      /s/
  Thomas Axmacher

  	
   

  
	
  Executive

  	
  Its

  	
    Chief
  Financial OfficerExhibit 10.2

 

AMENDMENT TO RESTRICTED STOCK UNIT AWARD
AGREEMENT

 

This Amendment to Restricted Stock Award Agreement  (“Amendment”) is made as of March 24,
2005 by and between Curative Health Services, Inc., a Minnesota corporation (“Company”),
and Paul F. McConnell, an individual resident of the Commonwealth of
Massachussetts (“Executive”).

 

WHEREAS, the Company
and Executive entered into an Employment Agreement dated April 23, 2004 (as
such agreement was amended as of November 15, 2004, and as may be amended from
time to time, the “Employment Agreement”), and a Restricted Stock Unit Award
Agreement dated as of April 23, 2004 (“RSU Agreement”); and

 

WHEREAS, the Company
and Executive desire to make certain changes to the vesting terms for the
restricted stock units provided for in the RSU Agreement and to the provisions
of the Employment Agreement relating to such vesting, and to certain other
provisions of the Employment Agreement (as provided for in a Second Amendment
to Employment Agreement between the parties dated the date hereof);

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual terms and conditions set forth
herein, the Company and Executive agree as follows:

 

1.     Amendments.   The following provisions of the RSU
Agreement are hereby amended as follows:

 

(a)   Section 3(a).   Section 3(a) shall be replaced in its
entirety with the following:

 

“Subject to
the terms and conditions of this Agreement, one third of the Restricted Stock
Units awarded hereunder to Employee shall vest and become the right to receive
Common Stock on the first anniversary of this Agreement, and the balance of the
Restricted Stock Units shall vest in equal monthly installments on the last
date of each of the eight (8) successive three-month periods following the first
anniversary of this Agreement;  in each
case if Employee remains continuously employed by the Company until such
respective date. If the Employee is terminated, whether voluntarily or
involuntarily, prior to vesting of any Restricted Stock Units, any units
remaining unvested as of the date of termination will be forfeited and the
Employee will retain no rights with respect to the forfeited units.”

 

2.     Headings.  The headings of the articles and sections of
this Acknowledgment are inserted for convenience only and shall not be deemed a
part of or affect the construction or interpretation of any provision of this
Amendment.

 

3.     Modifications.  Except as modified hereby, the Employment
Agreement is in all other respects hereby ratified and confirmed.

 

 

4.     Force and Effect.  This Amendment shall be effective from the
date hereof.

 

IN
WITNESS HEREOF, the parties have executed this
Amendment effective as of the date first set forth above.

 

 

	
  PAUL F.
  MCCONNELL

  	
  CURATIVE
  HEALTH SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Paul F. McConnell

  	
   

  	
  By

  	
     /s/
  Thomas Axmacher

  	
   

  
	
  Executive

  	
  Its

  	
    Chief
  Financial Officer

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