Document:

Exhibit 10.21

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement (the “Agreement”) is made and entered into
effective as of October 21, 2004 by and between Bill N. Alexander, Jr., (the
“Employee”) and Cymer, Inc., a Nevada corporation (the “Company”).

 

RECITALS

 

A.            The Company may from time to time need to
address the possibility of an acquisition transaction or change of control
event.  The Board of Directors of the
Company (the “Board”) recognizes that such events can be a distraction to the
Employee and can cause the Employee to consider alternative employment
opportunities.  The Board has determined
that it is in the best interests of the Company and its stockholders to assure
that the Company will have the continued dedication and objectivity of the
Employee, notwithstanding the possibility, threat or occurrence of a Change of
Control (as defined below) of the Company, although no such Change of Control
is now contemplated.

 

B.            The Board believes that it is in the best
interests of the Company and its stockholders to provide the Employee with an
incentive to continue his employment and to motivate the Employee to maximize
the value of the Company upon a Change of Control for the benefit of its
stockholders.

 

C.            The Board believes that it is imperative to
provide the Employee with certain benefits upon a Change of Control and, under
certain circumstances, upon termination of the Employee’s employment in
connection with a Change of Control, which benefits are intended to provide the
Employee with financial security and provide sufficient incentive and
encouragement to the Employee to remain with the Company notwithstanding the
possibility of a Change of Control.

 

D.            To accomplish the foregoing objectives, the
Board has directed the Company, upon execution of this Agreement by the
Employee, to agree to the terms provided herein.

 

E.             Certain capitalized terms used in this
Agreement are defined in Section 7 below.

 

AGREEMENT

 

In consideration of the mutual covenants herein contained, and in
consideration of the continuing employment of the Employee by the Company, the
parties agree as follows:

 

1.             Duties and Scope of Employment.  The
Company shall employ the Employee in the position of Senior Executive Vice
President as such position has been defined in terms of

 

1

 

responsibilities and compensation as of the
effective date of this Agreement; provided, however, that the Board shall have
the right, at any time prior to the occurrence of a Change of Control, to
revise such responsibilities and compensation as the Board in its discretion
may deem necessary or appropriate.  The
Employee shall comply with and be bound by the Company’s operating policies,
procedures and practices from time to time in effect during his employment.  During the term of the Employee’s employment
with the Company, the Employee shall continue to devote his full time, skill
and attention to his duties and responsibilities, and shall perform them
faithfully, diligently and competently, and the Employee shall use his best
efforts to further the business of the Company and its affiliated entities.

 

2.             Base Compensation.  The Company shall pay the
Employee as compensation for his services a base salary at the annualized rate
of $240,000.00 (“Base Compensation”). 
Such salary shall be paid periodically in accordance with normal Company
payroll practices.  The Board or the
Compensation Committee of the Board shall review the base salary of the
Employee according to normal Company practice, but no less frequently than
annually, and may in its discretion increase but not decrease the base salary
below the amount specified in this agreement.

 

3.             Annual Incentive.  Beginning with the Company’s
current fiscal year and for each fiscal year thereafter during the term of this
Agreement, the Employee shall be eligible to receive an annual bonus under the
Company’s annual incentive plan (the “Annual Incentive”) based upon performance
targets approved by the Compensation Committee of the Board (the “Target
Incentive”) in its sole discretion.  The
Annual Incentive payable hereunder shall be payable in accordance with the
Company’s normal practices and policies.

 

4.             Employee Benefits.  The Employee shall be eligible
to participate in the employee benefit plans and executive compensa­tion
programs maintained by the Company applicable to other key executives of the
Company, including (without limitation) retirement plans, savings or
profit-sharing plans, stock option, incentive or other bonus plans, life,
disability, health, accident and other insurance programs, paid vacations, and
similar plans or programs, subject in each case to the generally applicable
terms and conditions of the applicable plan or program in question and to the
sole determination of the Board or any committee administering such plan or
program.

 

5.             Employment Relationship.  The
Company and the Employee acknowledge that the Employee’s employment is and
shall continue to be at-will, as defined under applicable law.  If the Employee’s employment terminates for
any reason, the Employee shall not be entitled to any payments, benefits,
damages, awards or compensation other than as provided by this Agreement, or as
may otherwise be available in accordance with any Company plan or policy
approved by the Board.

 

6.             Termination Benefits.

 

(a)           Subject
to Sections 8 and 9 below, in the event the Employee’s employment terminates as
a result of an Involuntary Termination other than for Cause upon or within
eighteen (18) months after a Change of Control, then the Employee shall be
entitled to receive severance and other benefits as follows:

 

2

 

(i)            Pay Continuation. 
The Employee shall be
entitled to monthly payments equal to the Employee’s monthly Base Compensation
as in effect immediately prior to the Change of Control plus one-twelfth (1/12)
of the average of the annual bonus amount paid to the Employee with respect to
the three previous calendar years.  Such
monthly amounts shall be paid according to the normal payroll practice of the
Company for 12 months following the date of termination (the “Termination
Period”).

 

(ii)           Annual Incentive.  The Employee shall be entitled
to receive a percentage of the Employee’s Target Incentive for the calendar
year in which such termination occurs. Such percentage shall equal a fraction,
the numerator of which shall be the number of days in such calendar year up to
and including the date of such termination and the denominator of which shall
be the number of days in such calendar year. 
Such amount shall be payable according to the normal practice of the
Company with respect to the payment of bonuses.

 

(iii)         Options.  The unvested portion of any stock option(s)
held by the Employee under the Company’s stock option plans shall vest and
become exercisable in full upon the date of such termination. Employee shall
have one year from the date of such termination to exercise any vested options.

 

(iv)          Medical Benefits. The Company shall reimburse the Employee for the cost of the
Employee’s group health, vision and dental plan coverage in effect until the
end of the Termination Period.  The
Employee may use this payment, as well as any other payment made under this
Section 6, for such continuation coverage or for any other purpose.  To the extent the Employee pays the cost of
such coverage, and the cost of such coverage is not deductible as a medical
expense by the Employee, the Company shall “gross-up” the amount of such
reimbursement for all taxes payable by the Employee on the amount of such reimbursement
and the amount of such gross-up.

 

(b)           In
the event the Employee voluntarily resigns his employment with the Company
within the 30-day period beginning one year after a Change of Control, the
Employee shall receive the severance and other benefits set forth in Sections
6(a)(i)-(iv) above.

 

7.             Definition of Terms.  The following terms referred to
in this Agreement shall have the following meanings:

 

(a)           Cause.  “Cause” shall mean any of the following: (i)
any act of personal dishonesty taken by the Employee in connection with his
responsibilities as an employee and intended to result in substantial personal
enrichment of the Employee, (ii) conviction of a felony that is injurious to
the Company, (iii) a willful act by the Employee which constitutes gross
misconduct and which is injurious to the Company, or (iv) continued violations
by the Employee of the Employee’s obligations under Section 1 of this Agreement
after there has been delivered to the Employee a written demand for performance
from the Company which describes the basis for the Company’s belief that the
Employee has not substantially performed his duties.

 

(b)           Change of Control.  “Change of Control” shall mean the occurrence
of any of the following events:

 

3

 

(i)            The
acquisition by any “person” (as such term is used in Sections 13(d) and 14(d)
of the Exchange Act) (other than the Company or a person that directly or
indirectly controls, is controlled by, or is under common control with, the
Company) of the “beneficial ownership” (as defined in Rule 13d-3 under said
Act), directly or indirectly, of securities of the Company representing fifty
percent (50%) or more of the total voting power represented by the Company’s
then outstand­ing voting securities; or

 

(ii)           A
change in the composition of the Board of Directors of the Company occurring
within a two-year period, as a result of which fewer than a majority of the
directors are Incumbent Directors. 
“Incumbent Directors” shall mean directors who either (A) are directors
of the Company as of the date hereof, or (B) are elected, or nominated for
election, to the Board of Directors of the Company with the affirmative votes
of at least a majority of the Incumbent Directors at the time of such election or
nomination (but shall not include an individual not otherwise an Incumbent
Director whose election or nomination is in connection with an actual or
threatened proxy contest relating to the election of directors to the Company);
or

 

(iii)         A
merger or consolidation of the Company with any other corporation, other than a
merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the
surviving entity) at least fifty percent (50%) of the total voting power
represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation.

 

(c)           Disability.  “Disability” shall mean that the Employee has
been unable to substantially perform his duties under this Agreement as the
result of his incapacity due to physical or mental illness, and such inability,
at least 26 weeks after its commencement, is determined to be total and
permanent by a physician selected by the Company or its insurers and acceptable
to the Employee or the Employee’s legal representative (such agreement as to
acceptability not to be unreasonably withheld).

 

(d)           Exchange Act.  “Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended.

 

(e)           Involuntary Termination. 
“Involuntary
Termination” shall mean (i) without the Employee’s express written consent, the
significant reduction of the Employee’s duties or responsibilities relative to
the Employee’s duties or responsibilities in effect immediately prior to such
reduction; provided, however, that a reduction in duties or responsibilities
solely by virtue of the Company being acquired and made part of a larger entity
(as, for example, when the Chief Financial Officer of Company remains as such
following a Change of Control and is not made the Chief Financial Officer of
the acquiring corporation) shall not constitute an “Involuntary Termination”;
(ii) without the Employee’s express written consent, a substantial reduction,
without good business reasons, of the facilities and perquisites (including
office space and location) available to the Employee immediately prior to such
reduction; (iii) without the Employee’s express written consent, a material
reduction by the Company in the Base Compensation or Target Incentive of the
Employee as in effect immediately prior to such reduction, or the ineligibility
of the Employee to continue to participate in any long-term incentive plan of
the Company; (iv) a material reduction by the Company in the kind or level of

 

4

 

employee benefits to which the
Employee is entitled immediately prior to such reduction with the result that
the Employee’s overall benefits package is significantly reduced; (v) the
relocation of the Employee to a facility or a location more than 50 miles from
the Employee’s then present location, without the Employee’s express written
consent; (vi) any purported termination of the Employee by the Company which is
not effected for death or Disability or for Cause; or (vii) the failure of the
Company to obtain the assumption of this agreement by any successors
contemplated in Section 10 below.

 

8.             Limitation on Payments.

 

(a)           In
the event that the severance and other benefits provided for in this Agreement
or otherwise payable to the Employee (i) constitute “parachute payments” within
the meaning of Section 280G of the Internal Revenue Code of 1986, as amended
(the “Code”) and (ii) but for this Section 8 would be subject to the excise tax
imposed by Section 4999 of the Code, then the Employee’s severance benefits
under Section 6 shall be payable either (i) in full, or (ii) as to such lesser
amount which would result in no portion of such severance benefits being
subject to excise tax under Section 4999 of the Code, whichever of the
foregoing amounts, taking into account the applicable federal, state and local
income taxes and the excise tax imposed by Section 4999, results in the receipt
by the Employee on an after-tax basis, of the greatest amount of severance
benefits under this Agreement, notwithstanding that all or some portion of such
severance benefits may be taxable under Section 4999 of the Code.

 

(b)           If
a reduction in the payments and benefits that would otherwise be paid or
provided to the Employee under the terms of this Agreement is necessary to
comply with the provisions of Section 8(a), the Employee shall be entitled to
select which payments or benefits will be reduced and the manner and method of
any such reduction of such payments or benefits (including but not limited to
the number of options that would vest under Section 6(b) subject to reasonable
limitations (including, for example, express provisions under the Company’s
benefit plans) (so long as the requirements of Section 8(a) are met).  Within thirty (30) days after the amount of
any required reduction in payments and benefits is finally determined in
accordance with the provisions of Section 8(c), the Employee shall notify the
Company in writing regarding which payments or benefits are to be reduced.  If no notification is given by the Employee,
the Company will determine which amounts to reduce.  If, as a result of any reduction required by
Section 8(a), amounts previously paid to the Employee exceed the amount to
which the Employee is entitled, the Employee will promptly return the excess
amount to the Company.

 

(c)           Unless
the Company and the Employee otherwise agree in writing, any determination
required under this Section 8 shall be made in writing by the Company’s
independent public accountants (the “Accountants”), whose determination shall
be conclusive and binding upon the Employee and the Company for all
purposes.  For purposes of making the
calculations required by this Section 8, the Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of Sections
280G and 4999 of the Code. The Company and the Employee shall furnish to the
Accountants such information and documents as the Accountants may reasonably
request in order to make a determination under this Section.  The Company shall bear all costs the
Accountants may reasonably incur in connection with any calculations
contemplated by this Section 8.

 

5

 

9.             Certain Business Combinations.  In the event it is determined by the Board, upon receipt of a written
opinion of the Company’s independent public accountants, that the enforcement
of any Section or subsection of this Agreement, including, but not limited to,
Section 6(b) hereof, which allows for the acceleration of vesting of options to
purchase shares of the Company’s common stock upon a termination in connection
with a Change of Control, would preclude accounting for any proposed business
combination of the Company involving a Change of Control as a pooling of
interests, and the Board otherwise desires to approve such a proposed business transaction
which requires as a condition to the closing of such transaction that it be
accounted for as a pooling of interests, then any such Section of this
Agreement shall be null and void, but only if the absence of enforcement of
such Section would preserve the pooling treatment.  For purposes of this Section 9, the Board’s
determination shall require the unanimous approval of the disinterested Board
members.

 

10.          Successors.

 

(a)           Company’s Successors.  Any successor to the Company (whether direct
or indirect and whether by purchase, lease, merger, consolidation, liquidation
or otherwise) to all or substantially all of the Company’s business and assets
shall assume the obligations under this Agreement and agree expressly to
perform the obligations under this Agreement in the same manner and to the same
extent as the Company would be required to perform such obligations in the
absence of a succession.  For all
purposes under this Agreement, the term “Company” shall include any successor
to the Company’s business and assets which executes and delivers the assumption
agreement described in this Section 10(a) or which becomes bound by the terms
of this Agreement by operation of law.

 

(b)           Employee’s Successors. 
The terms of this
Agreement and all rights of the Employee hereunder shall inure to the benefit
of, and be enforceable by, the Employee’s personal or legal representatives,
executors, administrators, successors, heirs, devisees and legatees.

 

11.          Notice.  Notices and all other communications
contemplated by this Agreement shall be in writing and shall be deemed to have
been duly given when personally delivered or when mailed by U.S. registered or
certified mail, return receipt requested and postage prepaid.  In the case of the Employee, mailed notices
shall be addressed to him at the home address which he most recently
communicated to the Company in writing. 
In the case of the Company, mailed notices shall be addressed to its
corporate headquarters, and all notices shall be directed to the attention of
its Secretary.

 

12.          Miscellaneous Provisions.

 

(a)           Waiver.  No provision of this Agreement shall be
modified, waived or discharged unless the modification, waiver or discharge is
agreed to in writing and signed by the Employee and by an authorized officer of
the Company (other than the Employee). 
No waiver by either party of any breach of, or of compliance with, any
condition or provision of this Agreement by the other party shall be considered
a waiver of any other condition or provision or of the same condition or
provision at another time.

 

6

 

(b)           Whole Agreement.  No agreements, representations or
understandings (whether oral or written and whether express or implied) which
are not expressly set forth in this Agreement have been made or entered into by
either party with respect to the subject matter hereof.

 

(c)           Choice of Law.  The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the State of California.

 

(d)           Severability.  The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision hereof, which shall remain in full force
and effect.

 

(e)           Arbitration.  Any dispute or controversy arising out of,
relating to or in connection with this Agreement shall be settled exclusively
by binding arbitration in San Diego, California, in accordance with the
National Rules for the Resolution of Employment Disputes of the American
Arbitration Association then in effect. 
Judgment may be entered on the arbitrator’s award in any court having
jurisdiction.  The arbitrator shall: a)
have the authority to compel adequate discovery for the resolution of the
dispute and to award such relief as would otherwise be permitted by law; and
(b) issue a written arbitration decision including the arbitrator’s essential
findings and conclusions and a statement of the award.  Both the Employee and the Company shall be
entitled to all rights and remedies they would have in a court of law.  The Company shall pay all fees in excess of
those which will be required if the dispute were decided in a court of law.

 

(f)            No Assignment of Benefits.  The rights of any person to payments or benefits under this Agreement
shall not be made subject to option or assignment, either by voluntary or
involuntary assignment or by operation of law, including (without limitation)
bankruptcy, garnishment, attachment or other creditor’s process, and any action
in violation of this Section 12(g) shall be void.

 

(g)           Assignment by Company. 
The Company may
assign its rights under this Agreement to an affiliate, and an affiliate may
assign its rights under this Agreement to another affiliate of the Company or
to the Company; provided, however, that no assignment shall be made if the net
worth of the assignee is less than the net worth of the Company at the time of
assignment.  In the case of any such
assignment, the term “Company” when used in a section of this Agreement shall
mean the corporation that actually employs the Employee.

 

(h)           Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument.

 

7

 

IN WITNESS WHEREOF, each of the
parties has executed this Agreement, in the case of the Company by its duly
authorized officer, as of the day and year first above written.

 

 

	
  COMPANY:

  	
  CYMER, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  /s/ Jennifer Lab-Elsner

  
	
   

  	
   

  
	
   

  	
  Title:  VP, Human Resources

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  EMPLOYEE:

  	
  /s/ Bill N. Alexander

  	
   

  

 

8EXHIBIT 10.1

 

AMENDMENT NO. 2 TO DISTRIBUTOR AGREEMENT

 

THIS
AMENDMENT NO. 2 TO DISTRIBUTOR AGREEMENT (the “Second
Amendment”) is made effective as of the 9th day of March 2006 by and between ETHICON ENDO-SURGERY, INC., an Ohio
corporation (“EES”), and FISCHER IMAGING
CORPORATION, a Delaware corporation (“Fischer”).

 

WHEREAS, the
parties hereto are parties to a Distributor Agreement dated December 9, 1998,
as amended by Amendment No. 1 dated December 9, 2000 and an Annex dated
effective October 11, 2004 (as amended, the “Agreement”);

 

WHEREAS, the
Agreement terminates on October 10, 2006; and

 

WHEREAS,
Fischer has expressed its desire to EES to only manufacture a fixed number of
FT240 Mammotest tables between the date hereof and the termination of the
Agreement;

 

WHEREAS, EES
is agreeable to ordering a fixed number of tables if Fischer provides EES
adequate assurances that Fischer will supply the tables in a timely fashion at
an agreed upon price; and

 

WHEREAS,
Fischer and EES have agreed to amend the Agreement as set forth herein to
reflect both parties’ understanding and agreement with respect to the terms of
purchase and sale of such tables.

 

NOW,
THEREFORE, in consideration of the mutual promises and covenants contained
herein, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

 

1.             Amendment
to Agreement; Ratification. This Second Amendment amends and supersedes
only those provisions of the Agreement that are inconsistent with or contradict
the terms of this Second Amendment. All provisions of the Agreement not amended
and superseded shall remain in full force and effect. Capitalized terms that
are not otherwise defined herein shall have the meaning ascribed to such terms
in the Agreement.

 

2.             Order
of Tables; Delivery.

 

(a)           Upon
execution of this Second Amendment, EES will through their European
organization place a binding order with Fischer for 20 FT240 Mammotest tables
(collectively, the “Tables” and each a “Table”).

 

(b)           Fischer
will deliver the Tables to EES FOB Fischer’s manufacturing facility in Denver,
Colorado. Upon Fischer’s receipt of EES’s order,

 

 

Fischer will provide EES with a delivery
schedule for the Tables. Fischer shall use its best efforts to deliver all of
the Tables no later than May 31, 2006.

 

(c)           EES
may at any time notify Fischer of its desire to bulk ship any number of the
Tables, in which case delivery will be deemed to occur when all of the Tables
in such bulk shipment are completed and ready for shipment.

 

3.             Pricing;
Invoicing. The price for each Table will be US $107,000.00, subject to
adjustment as set forth in Paragraph 5 below. Fischer will invoice EES European
organization (Invoicing details will be specified on the order) for the first
five (5) Tables (US $535,000.00) upon delivery of all of the first five Tables,
with such invoice to be payable in full upon the delivery of all 20 Tables. If
Fischer fails to supply all 20 Tables, Fischer shall deliver a revised invoice
as provided in Paragraph 5, which shall be payable in full upon receipt. Fischer
will invoice EES for each of the remaining 15 Tables upon delivery of each
Table and all such invoices will be payable in full upon receipt.

 

4.             Training;
Warranty Support. The price of each Table includes not less than 4 full
days of on-site application training per Table. Fischer will provide such
training either itself or through a qualified third party until December 31,
2006. After December 31, 2006, Fischer will use its reasonable efforts to
ensure that EES has access to application specialists on an as-needed basis. The
price of each Table also includes 12-month full warranty support (labor and
parts). The 12-month warranty support for each Table will commence on the
earlier to occur of the date application training is completed for such Table
or December 31, 2006. Fischer will provide the full warranty service either
itself or through a qualified third party.

 

5.             Failure
to Supply; Price Adjustment. Fischer will immediately notify EES in writing
if Fischer will fail to supply all 20 Tables prior to termination of the
Agreement. If Fischer fails to supply all 20 Tables, the total price for the
delivered Tables will be determined using the following equation:

 

Total
price  = 
($142,000 x total number of Tables delivered) - $700,000

 

If, using the
above equation, the total price is less than zero (i.e., Fischer delivers 4 or
fewer Tables), Fischer will pay EES the balance within 45 days of Fisher’s
notification to EES of a failure to supply. If the total price is greater than
zero, Fisher will invoice EES for the adjusted total price upon delivery of the
last Table. If EES has paid Fischer for any Tables, Fischer shall deduct the
amount paid by EES from the amount otherwise due to Fischer under this
Paragraph 5.

 

6.             Termination.
Both parties agree that the Agreement and this Second Amendment will terminate
upon Fischer’s delivery of all of the Tables or settlement under Paragraph 5
for delivery of less than all of the Tables; provided, however, that the
obligations set forth in Paragraph 4 above will survive termination of the
Agreement.

 

 

7.             Entire
Agreement. This Second Amendment and the Agreement constitute the entire
agreement between the parties with respect to their subject matter and replace
and supersede all previous written or oral negotiations, discussions or
commitments.

 

8.             Counterparts.
This Second Amendment may be executed in counterparts with the same effect as
if the parties had signed the same document. All such counterparts shall be
deemed an original and shall constitute one and the same instrument.

 

IN WITNESS
WHEREOF, the parties hereto set their hands as of the date first written above.

 

	
  FISCHER IMAGING

  CORPORATION 

  	
  ETHICON ENDO-SURGERY, 

  INC.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/
  Steven L. Durnil

  	
   

  	
  By:

  	
    /s/ Bonnic Rib

  	
   

  	
   

  
	
  Print Name:

  	
   Steven L. Durnil

  	
   

  	
  Print Name:

  	
   Bonnic Rib

  	
   

  	
   

  
	
  Title: 

  	
  President
  & CEO

  	
   

  	
  Title: 

  	
  Vice
  President, Sales &

  	
   

  	
   

  
	
   

  	
   

  	
   Marketing Breastcare

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