Document:

EXHIBIT
10.1

 

SEPARATION
AGREEMENT

 

This Agreement dated as of January 31, 2008 is by
and between Force Protection, Inc. a Nevada (the “Company” or “Force
Protection”), and Gordon McGilton (the “Executive”).

 

IT IS HEREBY AGREED AS FOLLOWS:

 

1.                                       The Executive and the Company agree that the
Executive’s last day of employment with the Company will be on January 31,
2008 (the “Retirement Date”).

 

2.                                       The Company will pay the Executive a lump sum
cash payment of sixty thousand dollars ($60,000), on the first business day
following the expiration of the Revocation Period (as defined in Section 16),
reduced by the amount of any applicable tax withholdings (“Severance Benefits”).

 

3.                                       The Executive shall receive separate written
notice of his right to elect continued benefit plan coverage pursuant to COBRA.

 

4.                                       The Company and the Executive agree that as
of the Retirement Date there are no other amounts or benefits due to the
Executive through such date or thereafter from or under any other plan,
program, policy or agreement of the Company, as well as no other individual
employment agreement with the Executive.

 

5.                                       Effective as of the Retirement Date, the
Executive hereby resigns as a member of the board of directors of the Company
and of all other subsidiaries or affiliates of the Company as well as any other
positions held with such subsidiaries or affiliates effective as of the Retirement
Date and agrees to execute such other documents as may be requested by the
Company to implement such resignations.

 

6.                                       The Company shall indemnify the Executive to
the extent provided pursuant to Article VI of the Company’s Bylaws (12/09/04)
and Resolution dated February 28, 2005, as in effect on the Retirement Date,
and the Executive shall not be entitled to any other rights to indemnification
by the Company other than as set forth therein.

 

7.                                       In consideration of the Severance Benefits,
the Executive agrees to the following covenants:

 

a.               Non-Compete.  For a 12
month period after the Retirement Date, the Executive shall not directly or
indirectly (without the prior written consent of the Company):

 

i.                                          hold
a 5% or greater equity (including stock options whether or not exercisable),
voting or profit participation interest in a Competitive Enterprise, or

 

ii.                                       associate
(including as an officer, employee, partner, consultant, agent or advisor) with
a Competitive Enterprise and in connection with the Executive’s
association engage, or directly or indirectly manage or supervise personnel
engaged, in any activity:

 

(A)                              that
is substantially related to any activity that the Executive was engaged in with
the Company or its affiliates during the 12 months prior to the Retirement
Date (excluding as a director),

 

(B)                                that
is substantially related to any activity for which the Executive had direct or
indirect managerial or supervisory responsibility with the Company or its
affiliates during the 12 months prior to the Retirement Date, or

 

(C)                                that
calls for the application of specialized knowledge or skills substantially
related to those used by the Executive in his activities with the Company or
its affiliates during the 12 months prior to the Retirement Date.

 

 

For purposes of this
Agreement, “Competitive Enterprise” means any
business enterprise anywhere in the United States or world-wide that either (A) engages
in the manufacture blast- and ballistic-protected wheeled vehicles for the U.S.
and foreign markets or (B) holds a 5% or greater equity, voting or profit
participation interest in any enterprise that engages in such a competitive
activity.

 

b.                                      Non-Solicit.  The Executive hereby acknowledges
and confirms the obligations of “non-solication” as defined in that Employee
Non-Disclosure & Assignment of Inventions Agreement dated February 23,
2006, attached hereto (“2006 Agreement”).

 

c.                                       Confidential Information.  The Executive hereby acknowledges and
confirms the obligations of protecting “Confidential Information” as defined in
that 2006 Agreement, which are incorporated herein by reference.

 

d.                                      Survival.  Any
termination of this Agreement (or breach of this Agreement by the Executive or
the Company) shall have no effect on the continuing operation of this Section 7.

 

e.                                       Validity.  The terms
and provisions of this Section 8 are intended to be separate and divisible
provisions and if, for any reason, any one or more of them is held to be
invalid or unenforceable, neither the validity nor the enforceability of any
other provision of this Agreement shall thereby be affected.  The parties hereto acknowledge that the
potential restrictions on the Executive’s future employment imposed by this Section 7
are reasonable in both duration and geographic scope and in all other
respects.  If for any reason any court of
competent jurisdiction shall find any provisions of this Section 7
unreasonable in duration or geographic scope or otherwise, the Executive and
the Company agree that the restrictions and prohibitions contained herein shall
be effective to the fullest extent allowed under applicable law in such
jurisdiction.

 

f.                                         Consideration.  The
parties acknowledge that this Agreement would not have been entered into and
the benefits described above would not have been promised in the absence of the
Executive’s promises under this Section 7.

 

8.                                       This Agreement constitutes the entire
agreement between the parties and supersedes any and all prior contemporaneous,
oral or written agreements or understandings between the parties.  No representation, promise, inducement or
statement of intention has been made by the Released Parties that is not
embodied in this Agreement.  No party
shall be bound by or liable for any alleged representation, promise,
inducement, or statement of intention not contained in this Agreement.  This Agreement cannot be amended, modified,
or supplemented in any respect except by subsequent written agreement signed by
all parties hereto.

 

9.                                       This Agreement shall be interpreted and
enforced in accordance with the laws of the State of South Carolina.  Executive consents to the exclusive
jurisdiction of courts located in South Carolina, agreeing to waive any
argument of lack of personal jurisdiction or forum non-conveniens with respect
to any claim or controversy arising out of or relating to this Agreement, Executives
employment with the Company, Executive’s separation from that employment, and
any other contact or communication involving Executive and the Company.

 

10.                                 Unless the context otherwise requires, when
used in this Agreement, the singular shall include the plural, the plural shall
include the singular, and all nouns, pronouns and any variations thereof shall
be deemed to refer to the masculine, feminine or neuter, as the identity of the
person or persons may require.

 

IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand
and the Company has caused this Agreement to be executed in its name and on its
behalf, all as of the date first written above.

 

	
  EXECUTIVE

  	
  Force
  Protection, Inc.

  
	
   

  	
   

  
	
      /s/
  Gordon McGilton

  	
   

  	
  By:   

  	
        /s/
  Roger G. Thompson, Jr.

  	
   

  
	
  Gordon McGilton

  	
  Name: General
  Roger G. Thompson, Jr.

  
	
   

  	
  Title: Director

  
					

 

2Exhibit 10.1

 

Summary of Plan Terms for 2008 Executive
Short-Term Incentive Plan

 

The Advent Software 2008
Executive Short-Term Incentive Plan (the “Plan”) is designed to motivate and
reward the Executive Team for short-term achievement of annual contract value,
revenue and income from operations milestones during the 2008 fiscal year.  A summary of the terms follows:

 

·                  The Plan is applicable to the President
and CEO and executive-level members of Advent’s Executive Management Team (the “Executives”)

 

·                  The individual plans establish various
target amounts, performance measures and goals of the cash bonuses awarded under
the Plan for each Executive.

 

·                  Current target amounts range from a total
per individual of $90,000 to $275,000.

 

·                  Plan targets are based on annual contract
value, recognized revenue, income from operations (excluding stock-based
compensation, amortization and restructuring expenses) and individual executive
performance relative to goals.

 

·                  The Plan is an annual plan and is
effective for fiscal year 2008. Any bonuses earned will be paid in the first
quarter of 2009.

 

·                  The Plan may be renewed at the election
of the Company for future periods.Exhibit
10.1

 

CONFIDENTIAL

Execution Copy

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

This Executive Employment
Agreement is entered into as of this             
 (the “Effective Date”) by and between
Acusphere, Inc. (the “Company”), and                           
(the “Employee”).

 

WHEREAS, the Company considers it consistent with the best interests of
the Company’s stockholders to foster the continuous at-will employment of key
management personnel in order to prevent the departure or distraction of
management personnel to the detriment of the Company and its stockholders.

 

WHEREAS, the Company
desires to provide members of the Company’s management, including the Employee,
with an incentive to continue their respective at-will employment and to
maximize the value of the Company for the benefit of the Company’s
stockholders.

 

NOW THEREFORE, in consideration of the mutual covenants and agreements
set forth herein and for other good and valuable consideration, the Employee
and the Company agree as follows:

 

1.             Definitions.  As used in
this Agreement, the following terms shall have meanings set forth herein:

 

(a)           A termination for “Cause” means a termination
of the Employee’s employment by the Company or any successor company for one or
more of the following reasons:

 

(i)            the substantial and continuing failure or refusal of
the Employee, after written notice thereof, to reasonably attempt to perform
his or her job duties and responsibilities (other than failure or refusal
resulting from incapacity due to physical disability or mental illness) which
failure or refusal is committed in bad faith and is not in the best interest of
the Company;

 

(ii)           gross negligence, willful misconduct or material breach
of fiduciary duty to the Company;

 

(iii)          the willful commission of an act of embezzlement,
misappropriation or fraud;

 

(iv)          deliberate and willful disregard of the written rules or
policies of the Company which results in a material and substantial loss,
damage or injury to the Company;

 

(v)           the unauthorized, deliberate and willful disclosure of
any material confidential, proprietary and/or trade secret information of the
Company or its customers which disclosure is committed in bad faith and is not
in the best interest of the Company;

 

1

 

(vi)          the willful and deliberate commission of an act which
induces any customer, supplier, employee or consultant to adversely and
substantially amend or terminate their relationship with the Company which act
is committed in bad faith and is not in the best interest of the Company; or

 

(vii)         the conviction of, or plea of nolo
contendere by the Employee, to a crime involving a felony of moral turpitude.

 

(b)           “Good Reason” means:

 

(i)            a reduction in the Employee’s
then-current annual base salary or bonus opportunity or benefits (other than in
connection with a salary adjustment generally applicable to similarly situated
employees); or

 

(ii)           any failure to offer the Employee the
same level of benefits offered to similarly situated employees; or

 

(iii)          the failure to pay the Employee any
portion of his or her current base salary, bonus or benefits within twenty (20)
days of the date such compensation is due, based upon the payment terms
currently in effect; or

 

(iv)          the material breach by the Company of
this Agreement or of the Offer Letter after receipt of written notice from the
Employee and the failure of Company to cure the breach within (30) days of such
notice.

 

(c)           “Good Reason Following A Change Of Control” means and
includes the actions by the Company set out in Section 1 (b) (i)-(iv) above
as well as the following additional actions, one or more of which takes place
within one year after a Change of Control (as defined below) or within the
period which begins six months prior to the first public comment by the Company
regarding such Change of Control and ends upon a Change of Control:

 

(i) a significant diminution in the Employee’s duties, title,
office, staff or responsibilities; or

 

(ii) the relocation of the Employee’s primary business location to
a location that increases the Employee’s commute by more than thirty miles
compared to the commute of the Employee to the Employee’s then-current primary
business location.

 

(d)           “Permanent Disability” means that (i) the
Employee has been incapacitated by mental or physical injury or illness so as
to be prevented thereby from engaging in the performance of the Employee’s
duties, (ii) such incapacity has continued for a period of six (6) consecutive
months, and (iii) such incapacity will, in the opinion of a qualified 

 

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physician, selected by Company and approved by
Employee, be permanent and continuous during the remainder of the Employee’s
life.

 

(e)           “Change of Control” means (i) a sale by the Company of all or substantially all of its
business or assets or (ii) a reorganization, merger or consolidation of
the Company whereby the stockholders of the outstanding voting stock of the
Company immediately prior to the transaction hold less than a majority of votes
of the outstanding stock of the entity surviving such transaction, or (iii) the
transfer, in a single transaction or series of transactions, of a majority of
the outstanding voting stock of the Company to a single purchaser or group of
related purchasers, or (iv) individuals who, as of the date of this
Agreement, constitute the Board of Directors (the “Board”) of the Company (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board,
provided that any individual becoming a director subsequent to the date of this
Agreement whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for the
purpose, any such individual whose initial assumption of office is in
connection with either an actual or threatened election contest (as such terms
are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange
Act) or other actual or threatened solicitation of proxies or consents by or on
behalf of a person other than the Board; or (v) the Board determines that
a Change of Control has occurred.

 

(f)            “Monthly Base Salary” means the
amount calculated by multiplying the employee’s then semi-monthly current gross
salary by two (2), or if paid more or less frequently than two times per month,
the amount of such current gross salary multiplied by the number of payroll
periods in a year divided by twelve (12). For purposes of this calculation, the
Employee’s current gross salary shall be the highest amount of such gross
salary paid to the Employee during the twelve month period prior to termination
of employment.

 

(g)           “Target Bonus”: means the greater
of the potential bonus amount defined in the Company’s management incentive
compensation plan at the time of a Change of Control Termination (as defined in
Section 2 below) or the potential bonus amount or other financial incentive
amount defined in any such management incentive compensation plan applicable to
the Employee during the twelve month period preceding a Change of Control.  For employees who earn sales commissions, Target
Bonus shall be deemed to equal the average annualized (for any fiscal year
consisting of less than twelve months or with respect to which the Employee has
been employed by the Company for less than twelve full months) commission paid
or payable to the employee by the Company in respect to the lesser of the three
fiscal years immediately preceding the Change of Control, or the number of
fiscal years in which the Company has instituted a commission plan or the
number of full fiscal years for which the Employee has been employed by the
Company immediately preceding the fiscal year in which the Change of Control
Termination occurs.

 

3

 

2.             Benefits Upon Termination after Change of Control. 
If at any time within twelve (12) months after a Change of Control of
the Company has occurred or within the period which begins six (6) months
prior to the first public comment by the Company regarding the Change of
Control and ends upon a Change of Control, the Employee’s employment is
terminated either (i) by the Company or any successor company for any
reason other than for Cause or the Employee’s Permanent Disability or death or (ii) by
the Employee for Good Reason Following A Change of Control,  (such events of termination referred to herein
as a “Change of Control Termination”),  and subject to the Employee executing a
release in substantially the form attached hereto as Exhibit 1 and
the expiration of the applicable revocation period, the Company shall pay or
provide the Employee with the following:

 

(i)            all base salary and accrued but unused
vacation up to and through the date of Change of Control Termination shall be
paid in accordance with the Company’s normal payroll payment practices as
currently in effect;

 

(ii)           payments by the Company of an aggregate amount equal
to the product of the Employee’s then-current Monthly Base Salary
multiplied by six (6), which amount shall be paid in a lump sum within 30 days
immediately following the date of the Employee’s Change of Control Termination;
provided that if in the opinion of the Company, based on advice of counsel or
its tax advisors, such payments would be subject to the payment of excise tax
under Section 409 A of the Internal Revenue Code of 1986, as amended (the “Code”),
such payment shall be made six months and one day after the date of the
Employee’s Change of Control Termination, together with interest on the amount
so deferred calculated at the prime rate of interest as reported in the Wall
Street Journal at the time of such payment (the “Prime Rate”);

 

(iii)          payments by the Company of an aggregate amount equal
to the product of the Employee’s then-current Monthly Base Salary
multiplied by the greater of (i) the number of full years (twelve month
periods) during which the Employee had been employed by the Company prior to
the Change of Control Termination or (ii) six, which amount shall be paid
in a lump sum within 30 days following the date of the Employee’s Change of
Control Termination;

 

(iv)          payment by the Company of an amount equal
to one times the Employee’s Target Bonus for the year in which the Change of
Control occurs, pro rated to cover the portion of the year that elapsed from
the start of the calendar year through the date of the Change of Control
Termination plus such pro rated amount to cover six (6) months plus the
greater of  (i) one month for each
full year (twelve month period) during which the Employee has been employed by
the Company prior to the Change of Control Termination or (ii) six months,
which amount shall be paid in a lump sum within 30 days immediately following
the date of the Employee’s Change of Control Termination together with payment
of all earned but unpaid bonuses from prior years, if any;

 

(v)           payment by the Company of the portion of
the Employee’s monthly health and dental insurance premium payments customarily
paid by the Company for its employees for a period of eighteen (18) months from
the date of the 

 

4

 

Employee’s
termination, provided the Employee elects to
continue such health and dental insurance in accordance with the applicable
provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”),
has not accepted employment elsewhere from which he or she is eligible to
receive similar employer-sponsored insurance and provided that if continuation
is not available under the terms and conditions of the Company’s plans, the
Company will substitute similar coverage;

 

(vi)           continuation of coverage under the
Company’s life and disability insurance plans, if any, to the extent permitted
by applicable law, for a period of eighteen (18) months from the date of the
Employee’s termination; provided, however,
that in the event such continuation of coverage is not so permitted by
applicable law, the Employee acknowledges and agrees that he or she shall not
be entitled to any payments in lieu thereof and provided that if continuation
is not available under the terms and conditions of the Company’s plans, the
Company will substitute similar coverage;

 

(vii)          the amount of any Company contribution, premium
payment or other consideration paid by the Company to, or for, any other
welfare plan, retirement plan or profit sharing plan supported by the Company
on behalf of its employees in an amount equal to the amount that the
Employee would have been eligible to receive or which the Company would have
paid on behalf of the Employee had the Employee remained in the employ of the
Company for twelve months after the Change of Control;

 

(viii)         outplacement services from a
service provider of Employee’s choice to the Employee at the Company’s expense,
up to a maximum expense of $15,000; and

 

(ix)           the amount of federal, state and local income tax to
which the Employee is subject as a result of the Company paying for any
insurance premium, outplacement service or retirement benefit hereunder in a form which is
judged to be taxable as income to the Employee but would likely not have been
subject to taxation had the Employee been in the continued employ of the
Company such that the Employee remains “whole” on such payments (including the
payments per this paragraph).

 

In addition to the
foregoing, upon any Change of Control Termination, unless at that time Employee
elects to forego all or a part of the following described amendments to his/her
stock option agreements, all unvested options for Company common stock or
unvested restricted stock held by the Employee pursuant to any stock plan or
arrangement with the Company shall become immediately vested, and any options
held by the Employee under any such plan or arrangement shall be deemed amended
so that they are exercisable at any time after the Change of Control
Termination and prior to termination of the option agreement in accordance with
its terms.

 

5

 

The Employee shall not be
required to mitigate the amount of any payment to be paid or provided in this Section 2
by seeking other employment or otherwise, nor shall the amount of any payment
or benefit provided by this Section 2 be reduced by any compensation
earned by the Employee as a result of employment by another employer, by
retirement benefits, by offset against any amount claimed to be owed by the
Employee to the Company, or otherwise.

 

Notwithstanding the
foregoing, if in the opinion of the Company, based on advice of
counsel or its tax advisors, any payments owed to the Employee under this Section 2
would be subject to the payment of excise tax under Section 409 A of the
Code if paid at the times set forth herein, such payments shall be made six
months and one day after the date of the Employee’s termination hereunder,
provided that any payments so deferred shall earn interest calculated at the
Prime Rate.

 

3.            Benefits Upon Not For Cause Termination or For Termination With Good Reason.  If at any time the Employee’s employment is
terminated by the Company  or any
successor company for any reason other than for Cause or the Employee’s
Permanent Disability or death or by Employee for Good Reason, and such
termination does not constitute a Change of Control Termination under Section 2
above or a Management Buy-Out, (such events of termination referred to herein
as a “Not For Cause Termination”), , and subject to the Employee executing a
release in substantially the form attached hereto as Exhibit 1 and
the expiration of the applicable revocation period, the Company shall pay or
provide the Employee with the following:

 

(i)            all base salary and accrued but unused
vacation up to and through the date of Not For Cause Termination shall be paid
in accordance with the Company’s normal payroll payment practices as currently
in effect;

 

(ii)           payments by the Company of an aggregate
amount equal to the product of the Employee’s then-current Monthly Base
Salary, multiplied by six, which amount shall be paid in equal monthly
installments on a monthly basis for the six months immediately following the
date of the Employee’s Not For Cause Termination; provided that in any event
such amount shall be fully paid no later than two and one-half months following
the calendar year in which the Employee’s Not For Cause Termination occurs;

 

(iii)          payments by the Company of an amount
equal to the product of the Employee’s then-current Monthly Base Salary,
multiplied by the number of full years (twelve month periods) during which the
Employee had been employed by the Company prior to the Not For Cause
Termination, which amount shall be paid on a monthly basis for the six months
immediately following the date of the Employee’s Not For Cause Termination;
provided that in any event such amount shall be fully paid no later than thirty
(30) days following Employee’s Not For Cause Termination;

 

(iv)          payment by the Company earned but unpaid
bonuses, including commissions, up to the date of Not For Cause Termination;

 

6

 

(v)            payment by the Company of the portion of
the Employee’s monthly health and dental insurance premium payments customarily
paid by the Company for its employees for a period of eighteen (18) months from
the date of the Employee’s termination, provided the
Employee elects to continue such health and dental insurance in accordance with
the applicable provisions of the Consolidated Omnibus Budget Reconciliation Act
of 1985 (“COBRA”), has not accepted employment elsewhere from which he or she
is eligible to receive similar employer-sponsored insurance, and otherwise
remains eligible for such coverage;

 

(vi)           continuation of coverage under the
Company’s life and disability insurance plans, if any, to the extent permitted
by applicable law, for a period of eighteen (18) months from the date of the
Employee’s termination; provided, however,
that in the event such continuation of coverage is not so permitted by
applicable law, the Employee acknowledges and agrees that he or she shall not
be entitled to any payments in lieu thereof and provided that if such
continuation is not available under to terms and conditions of the Company’s
plans that the Company will substitute similar coverage from other plan
providers for this continuation coverage period;

 

(vii)          the
amount of any Company contribution, premium payment or other consideration paid
by the Company to, or for, any other welfare plan, retirement plan or profit
sharing plan supported by the Company on behalf of its employees in an amount
equal to the amount that the Employee would have been eligible to receive or
which that Company would have paid on behalf of the Employee had the Employee
remained in the employ of the Company for twelve months after the Change of
Control;

 

(viii)         outplacement
services from a service provider of Employee’s choice to the Employee at the Company’s expense, up to a
maximum expense of $15,000; and

 

(ix)           the amount of federal, state and local
income tax to which the Employee is subject as a result of the Company paying
for any insurance premium, outplacement service or retirement benefit hereunder
in a form which is judged to be taxable as current income to the Employee but
would likely not have been subject to current taxation had the Employee been in
the continued employ of the Company such that the Employee remains “whole” on
such payments (including the payments per this paragraph).

 

The Employee shall not be
required to mitigate the amount of any payment to be paid or provided in this Section 3
by seeking other employment or otherwise, nor shall the amount of any payment
or benefit provided by this Section 3 be reduced by any compensation
earned by the Employee as a result of employment by another employer, by
retirement benefits, by offset against any amount claimed to be owed by the
Employee to the Company, or otherwise. 
Notwithstanding the foregoing, if in the opinion of the
Company, based on advice of counsel or its tax advisors, any payments owed to
the Employee under this Section 3 would be subject to the 

 

7

 

payment
of excise tax under Section 409 A of the Code if paid at the times set
forth herein, such payments shall be made six months and one day after the date
of the Employee’s termination hereunder, provided that any payments so deferred
shall earn interest calculated at the Prime Rate.

 

4.             Benefits Upon Termination For Death or Disability. 
If the Employee’s employment is terminated as a result of the Employee’s
death or Permanent Disability:

 

(i)            the Company shall pay the Employee or the
Employee’s estate all base salary and accrued but unused vacation up to and
through the date of death or disability shall be paid in accordance with the
Company’s normal payroll payment practices as currently in effect;

 

(ii)           the Company shall pay the Employee or the
Employee’s estate the amount of any commissions earned through the date of Employee’s
death or Permanent Disability and the pro rata portion of any other bonus that
would have been payable to the Employee for the year in which such termination
occurred, no later than two and one-half months following the end of the
calendar year in which the Employee’s termination of employment occurs; and

 

(iii)          unless at that
time the Employee or the Employee’s estate elects to forego all or a part of
the following described amendments to his/her stock option agreements, all
unvested options for Company common stock or unvested restricted stock held by
the Employee pursuant
to any stock plan or arrangement with the Company shall become immediately
vested, and, subject to the terms of the Company’s stock plan, any options held
by the Employee under any such plan or arrangement shall be deemed amended so
that they are exercisable prior to termination of the option agreements in
accordance with their terms.

 

5.             At-Will Employment.  The Employee
acknowledges and agrees that this Agreement does not in any way modify or limit
the at-will nature of the Employee’s employment with the Company.  Nothing in this Agreement should be taken as
a limit on payments that may be made to the Employee, as a guarantee of
continued employmentor a specific term of employment and,subject to the terms
contained herein,  either the Employee or
the Company may at all times terminate the Employee’s employment with the
Company at any time, for any or no reason, and with or without prior notice.

 

6.             Withholding; Taxes.  All payments
made by the Company under this Agreement shall be subject to and reduced by any
federal, state and/or local taxes or other amounts required to be withheld by
the Company under any applicable law.

 

7.             Tax Gross-Up.  If any payment or benefit received or to be received by the Employee
pursuant to this Agreement or any other plan, arrangement or agreement
including, but not limited to, the acceleration of vesting of options (the “Total
Payments”) would constitute (in whole or in part) an “excess parachute payment”
within the meaning of Section 280G(b) of the Internal Revenue Code of
1986, as amended (the “Code”), or any payment or benefit made under this
Agreement which is deemed to be subject to excise tax imposed by Section 409A
of 

 

8

 

the Code or pursuant to similar provisions of state or
local tax codes (which tax cannot be avoided by deferral of such payments for
six months and one day as provided in Sections 2 and 3  of this Agreement), then the amount of the
payments hereunder shall be grossed-up to the Employee in an amount such that,
after payment by the Employee of all payments and taxes (including any interest
and penalties imposed with respect to such taxes), including, without
limitation, any income and excise taxes (and any interest and payments imposed
with respect thereto) and payment by the Employee of all taxes imposed upon the
gross-up payment, the Employee retains the amount of the gross-up payment equal
to the incremental amount to be paid by the Employee in tax resulting, if any,
from the excess parachute payment and taxes. 
All determinations required to be made under this Section 8,
including whether and when a gross-up payment is required and the amount of
such gross-up payment and the assumptions to be utilized in arriving at such
determination, shall be made, at the Company’s expense, by Deloitte &
Touche (or its successors)(the “Accounting Firm”).

 

8.             Assignment and Expiration of Agreement.

 

(a)           The Employee acknowledges and agrees that this
Agreement is personal to the Employee and the Employee may not assign any
rights or delegate any obligations or duties hereunder; provided that this
Agreement shall inure to the benefit of and be enforceable by the Employee and
his or her personal or legal representatives, executors, administrators, heirs,
distributees, devisees and legatees.

 

(b)           This Agreement, and the rights and obligations of the
Company hereunder, shall inure to the benefit of, and shall be binding upon,
any successor or assign of the Company or all or substantially all of the
business and/or assets of the Company (whether direct or indirect, by merger,
purchase, consolidation, operation of law or otherwise) and may be assigned by
the Company to any entity that shall succeed to the business and assets of the
Company.  As used in this Agreement, “Company”
shall mean the Company as defined herein and any successor to the Company or
its business and/or assets as aforesaid.

 

9.             Governing Law.  The Employee
and the Company agree that this Agreement shall be interpreted in accordance
with and governed by the laws of the Commonwealth of Massachusetts, without regard
to any conflicts or choice of law rule or principle that might otherwise
refer construction or interpretation to the substantive law of another
jurisdiction.

 

10.           Entire Agreement.  Except for
the provisions of any indemnification agreement between the Company and
Employee and the terms of any deferred compensation agreement between the
Company and Employee, this Agreement shall supersede all prior, concurrent
and/or contemporaneous arrangements, whether written or oral, regarding the
subject matter of this Agreement; provided, however,
that except as specifically set forth herein this Agreement is not intended to
and shall not affect, limit or terminate the Employee’s rights under the
Company’s stock incentive plans or arrangements and any option grants or other
awards made pursuant thereto, entered into by and between the Employee and the
Company.

 

9

 

11.           Acknowledgements.  The Employee
acknowledges that he or she is not relying and has not relied on any promise,
representation or statement made by or on behalf of the Company which is not
set forth in this Agreement.

 

12.           Severability.  If any one or
more of the provisions (or any part thereof) of this Agreement shall be
declared invalid, illegal or unenforceable to any extent by a court of
competent jurisdiction, then the application of such provision in such
circumstances shall be modified to permit its enforcement to the maximum extent
permitted by law, and both the application of such portion or provision in
circumstances other than those as to which it is so declared invalid, illegal
or unenforceable and the remainder of this Agreement shall not be affected
thereby, and each of the remaining provisions (or any part thereof) shall be
valid and enforceable to the fullest extent permitted by law.

 

13.           Waiver; Modification; Amendment. 
No waiver of any provision of this Agreement shall be effective unless
made in writing and signed by the party against whom enforcement of the waiver
is sought.  Any written waiver shall
operate only as to specific term or condition in the specific instance
waived.  This Agreement may be modified
or amended only by a written instrument signed by the Employee and the Company.

 

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

 

15.           Notices.  All notices
hereunder shall be in writing and shall be deemed given when sent by certified
or registered mail, postage prepaid, return receipt requested, if to the
Employee, to the address shown on the records of the Company, and if to the
Company, to the Company’s principal executive offices, attention of the
President and/or Chief Executive Officer.

 

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

 

	
  COMPANY:

  
	
   

  
	
  ACUSPHERE, INC.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name: Sherri C. Oberg

  
	
  Title:
  President & Chief Executive Officer

  
	
   

  
	
  EMPLOYEE:

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  
					

 

10

Exhibit 1

 

[Insert
Name and Address of Employee]

 

                Re: Executive Employment
Agreement and Release

 

Dear
                :

 

Reference
is made to the Executive Employment Agreement, dated                    , (the “Employment Agreement”)
between you and Acusphere, Inc. (the “Company”).  The Employment Agreement provides for certain
benefits to be paid to you by the Company under the circumstances set forth
therein.  As a condition to obtaining
such benefits, and in consideration therefore, you have agreed to execute this
letter agreement (this “Agreement”). 
With these understandings and in exchange for the promises of you and
the Company as set forth below, you and the Company agree as follows.

 

1.             Employment
Status and Final Payments:

 

(a)           Your termination from
employment with the Company will be effective as of             ,
              
(the “Termination Date”).  As of the
Termination Date, your salary will cease, and any entitlement you have or might
have under a Company-provided benefit plan, program, contract or practice will
terminate, except as required by federal or state law, or as otherwise
described in the Employment Agreement.

 

(b)           You hereby acknowledge that
as of the Termination Date, you have been paid, or provision has been made to
promptly pay you within the normal payroll cycle of the Company, all wages
earned and such other amounts as are provided for in the Employment Agreement
including payment for all vacation time accrued but unused as of the
Termination Date.

 

(c)           The Termination Date shall
be the date of the “qualifying event” under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”) and the Company will present you with
information on COBRA under separate cover.

 

2.             Consideration:  The Company will make payments to you and
provide you with such other benefits as are set forth in the Employment
Agreement [IF APPLICABLE: and in the deferred compensation agreement set forth
in writing between you and the Company dated                    (“Deferred
Compensation Agreement”)].

 

11

 

3.             Release:  In exchange for the amounts described in the
Employment Agreement and other good and valuable consideration, the sufficiency
of which is hereby acknowledged, you and your representatives, agents, estate,
heirs, successors and assigns, absolutely and unconditionally hereby release,
remise, discharge, indemnify and hold harmless the Company Releasees (defined
to include the Company and/or any of its parents, subsidiaries or affiliates,
predecessors, successors or assigns, and its and their respective current
and/or former partners, directors, shareholders/stockholders, officers,
employees, attorneys and/or agents, all both individually and in their official
capacities), from any and all actions or causes of action, suits, claims,
complaints, contracts, liabilities, agreements, promises, contracts, torts,
debts, damages, controversies, judgments, rights and demands, whether existing
or contingent, known or unknown, suspected or unsuspected, which arise out of
your employment with, change in employment status with, and/or separation of
employment from, the Company.  This
release is intended by you to be all encompassing and to act as a full and
total release of any claims, whether specifically enumerated herein or not,
that you may have or have had against the Company Releasees arising from
conduct occurring up to and through the date of this Agreement, including, but
not limited to, any claims arising from any federal, state or local law,
regulation or constitution dealing with either employment, employment benefits
or employment discrimination such as those laws or regulations concerning
discrimination on the basis of race, color, creed, religion, age, sex, sex
harassment, sexual orientation, national origin, ancestry, genetic carrier
status, handicap or disability, veteran status, any military service or
application for military service, or any other category protected under federal
or state law or any contract, whether oral or written, express or implied; any
tort; any claim for equity or other benefits; or any other statutory and/or
common law claim.

 

4.             Accord
and Satisfaction:  The amounts set forth in the Employment
Agreement and in any deferred compensation agreement that is set forth in
writing between you and the Company shall be complete and unconditional
payment, settlement, accord and/or satisfaction with respect to all obligations
and liabilities of the Company Releasees to you, including, without limitation,
all claims for back wages, salary, vacation pay, draws, incentive pay, bonuses,
stock and stock options, commissions, severance pay, reimbursement of expenses,
any and all other forms of compensation or benefits, attorney’s fees, or other
costs or sums.

 

5.             [NOTE:  INCLUDE IF EMPLOYEE IS 40 OR OLDER]

Waiver of Rights and Claims Under the Age Discrimination in Employment Act
of 1967:

 

Since you are 40 years of
age or older, you are being informed that you have or may have specific rights and/or
claims under the Age Discrimination in Employment Act of 1967 (ADEA) and you
agree that:

 

(a)           in
consideration for the amounts described in Section 2 of this Agreement,
which you are not otherwise entitled to receive, you specifically and
voluntarily waive such rights and/or claims under the ADEA you might have
against the Company Releases to the extent such rights and/or claims arose
prior to the date this Agreement was executed;

 

(b)           you understand
that rights or claims under the ADEA which may arise after the date this
Agreement is executed are not waived by you;

 

12

 

(c)           you are advised
that you have at least 21 days within which to consider the terms of this
Agreement and to consult with or seek advice from an attorney of your choice or
any other person of your choosing prior to executing this Agreement;

 

(d)           you have carefully read and
fully understand all of the provisions of this Agreement, and you knowingly and
voluntarily agree to all of the terms set forth in this Agreement; and

 

(e)           in entering into this
Agreement you are not relying on any representation, promise or inducement made
by the Company or its attorneys with the exception of those promises described
in this document.

 

6.             Period
for Review and Consideration of Agreement:

 

(a)            You acknowledge that you
were informed and understand that you have twenty-one (21) days to review this
Agreement and consider its terms before signing it.

 

(b)           The 21-day
review period will not be affected or extended by any revisions, whether
material or immaterial, that might be made to this Agreement.

 

7.             Company
Files, Documents and Other Property:  You agree that on or before the Termination
Date you will return to the Company all Company property and materials,
including but not limited to, (if applicable) personal computers, laptops, fax
machines, scanners, copiers, cellular phones, Company credit cards and
telephone charge cards, manuals, building keys and passes, courtesy parking
passes, diskettes, intangible information stored on diskettes, software
programs and data compiled with the use of those programs, software passwords
or codes, tangible copies of trade secrets and confidential information, sales
forecasts, names and addresses of Company customers and potential customers,
customer lists, customer contacts, sales information, sales forecasts,
memoranda, sales brochures, business or marketing plans, reports, projections,
and any and all other information or property previously or currently held or
used by you that is or was related to your employment with the Company (“Company
Property”).  You agree that in the event
that you discover any other Company Property in your possession after the
Termination Date of this Agreement you will immediately return such materials
to the Company.

 

8.             Future
Conduct:

 

(a)           Nondisparagement:  You agree not to make disparaging, critical
or otherwise detrimental comments to any person or entity concerning the
Company, its officers, directors or employees; the products, services or
programs provided or to be provided by the Company; the business affairs,
operation, management or the financial condition of the Company; or the
circumstances surrounding your employment and/or separation of employment from
the Company.  The Company agrees not to
make disparaging, critical or otherwise detrimental comments to any person or
entity concerning your performance at the Company or the circumstances
surrounding your employment and/or separation of employment from the Company.

 

(b)           Confidentiality
of this Agreement:  You agree
that you shall not disclose, divulge or publish, directly or indirectly, any
information regarding the substance, terms or existence of this 

 

13

 

Agreement
and/or any discussion or negotiations relating to this Agreement, to any person
or organization other than your immediate family and accountants or attorneys
when such disclosure is necessary for the accountants or attorneys to render
professional services.  Prior to any such
disclosure that you may make, you shall secure from your attorney or accountant
their agreement to maintain the confidentiality of such matters.

 

(c)           Disclosures:  Nothing
herein shall prohibit or bar you from providing truthful testimony in any legal
proceeding or in communicating with any governmental agency or representative
or from making any truthful disclosure required, authorized or permitted under
law; provided, however, that in providing such testimony or making such
disclosures or communications, you will use your best efforts to ensure that
this Section is complied with to the maximum extent possible.  Notwithstanding the foregoing, nothing in
this Agreement shall bar or prohibit you from contacting, seeking assistance
from or participating in any proceeding before any federal or state
administrative agency to the extent permitted by applicable federal, state
and/or local law.  However, you
nevertheless will be prohibited to the fullest extent authorized by law from
obtaining monetary damages in any agency proceeding in which you do so
participate.

 

9.             Representations
and Governing Law:

 

(a)           This Agreement sets forth
the complete and sole agreement between the parties and supersedes any and all
other agreements or understandings, whether oral or written, except the
Nondisclosure and Developments Agreement between you and the Company, the
Employment Agreement, the Indemnification Agreement between you and the Company
[IF APPLICABLE: the terms of the Deferred Compensation Agreement] and the Incentive
Stock Option Agreement each of which shall remain in full force and effect in
accordance with their respective terms. 
This Agreement may not be changed, amended, modified, altered or
rescinded except upon the express written consent of both the President of the
Company  and you.

 

(b)           If any provision of this
Agreement, or part thereof, is held invalid, void or voidable as against public
policy or otherwise, the invalidity shall not affect other provisions, or parts
thereof, which may be given effect without the invalid provision or part.  To this extent, the provisions and parts
thereof of this Agreement are declared to be severable.  Any waiver of any provision of this Agreement
shall not constitute a waiver of any other provision of this Agreement unless
expressly so indicated otherwise.  The
language of all parts of this Agreement shall in all cases be construed
according to its fair meaning and not strictly for or against either of the
parties.

 

(c)           This Agreement and any
claims arising out of this Agreement (or any other claims arising out of the
relationship between the parties) shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts and shall in all
respects be interpreted, enforced and governed under the internal and domestic
laws of Massachusetts, without giving effect to the principles of conflicts of
laws of such state.  Any claims or legal
actions by one party against the other shall be commenced and maintained in
state or federal court located in Massachusetts, and you hereby submit to the
jurisdiction and venue of any such court.

 

14

 

(d)           You may not assign any of
your rights or delegate any of your duties under this Agreement.  The rights and obligations of the Company
shall inure to the benefit of the Company’s successors and assigns.

 

10.          Effective
Date:  After
signing this letter, you may revoke this Agreement for a period of seven (7) days
following said execution. The Agreement shall not become effective or
enforceable and no payments will be made until this revocation period has
expired (“Effective Date”).

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

15

 

If
this letter correctly states the agreement and understanding we have reached,
please indicate your acceptance by countersigning the enclosed copy and
returning it to me.

 

	
   

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Acusphere, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  [Insert name of Company Representative]

  
					

 

I
REPRESENT THAT I HAVE READ THE FOREGOING AGREEMENT, THAT I FULLY UNDERSTAND THE
TERMS AND CONDITIONS OF SUCH AGREEMENT AND THAT I AM KNOWINGLY AND VOLUNTARILY
EXECUTING THE SAME.  IN ENTERING INTO
THIS AGREEMENT, I DO NOT RELY ON ANY REPRESENTATION, PROMISE OR INDUCEMENT MADE
BY THE COMPANY OR ITS REPRESENTATIVES WITH THE EXCEPTION OF THE CONSIDERATION
DESCRIBED IN THIS DOCUMENT.

 

 

	
  Accepted and Agreed to:

  
	
   

  
	
   

  	
   

  
	
  [Insert name of Employee]

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

16

 

IF YOU DO NOT WISH TO USE THE 21-DAY PERIOD,

PLEASE CAREFULLY REVIEW AND SIGN THIS DOCUMENT

 

I,                                               ,
acknowledge that I was informed and understand that I have 21 days within
which to consider the attached Severance Agreement and Release, have been
advised of my right to consult with an attorney regarding such Agreement and
have considered carefully every provision of the Agreement, and that after
having engaged in those actions, I prefer to and have requested that I enter
into the Agreement prior to the expiration of the 21 day period.

 

 

	
  Dated:

  	
   

  	
   

  	
  :

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Witness:

  	
   

  
	
   

  	
   

  	
   

  
						

 

17

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