Document:

Exhibit
10.6

 

EMPLOYMENT
AGREEMENT

(Alex
Bourdon)

 

                This
Employment Agreement dated as of October 29, 2006 (this “Agreement”) is
made by and between Power Medical Interventions, Inc., a Delaware corporation
(the “Company”), and Alex Bourdon (“Executive”).

 

BACKGROUND

 

                The
Company desires to employ Executive, and employee desires to be employed by the
Company in accordance with the terms and conditions set forth in this
Agreement.

 

                NOW,
THEREFORE, in consideration of the premises, the respective covenants and
commitments of the parties hereto set forth in this Agreement and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.             Employment. 
The Company offers and Executive accepts employment and agrees to
perform services for the Company, for the period and upon the other terms and
subject to the conditions set forth in this Agreement.

2.             Employment Term. 
Executive’s employment pursuant to this Agreement shall be from November
13, 2006 (the “Effective Date”), through December 31, 2009, unless earlier terminated pursuant to the
provisions of Section 9 below.  If
Executive’s employment continues beyond December 31, 2009, such employment
shall be at will, unless and to the extent this Agreement is extended or
renewed by a written agreement between the parties.

3.             Title and Duties; Representations and Warranties.

3.1.          Service
With Company.  Company hereby employs Executive to perform
those executive duties and services as the Company shall from time to time set
forth, and Executive accepts employment with the Company, upon the terms and
conditions hereinafter set forth. 
Executive shall serve as the Chief Operations Officer of the Company and
shall report to the Chief Executive Officer of the Company.  Executive may also serve as an officer or
director of one or more subsidiaries of the Company; provided, however,
that Executive shall not be entitled to any additional compensation for serving
in such additional capacities.

3.2.          Performance of Duties.  Executive agrees to serve the Company
faithfully and to the best of his ability and to devote his full time,
attention and best efforts to the business and affairs of the Company after the
Effective Date and during the term of this Agreement.  Except to the extent the restrictions
contained in Section 5 may apply, nothing in this Agreement shall prohibit
Executive from (a) making and managing passive investments, and (b) engaging in
religious, academic, charitable or other community or non-profit activities, in
a manner, and to an extent, that will not interfere with his duties to the
Company.

3.3.          Compliance
with Company Policies.  Executive agrees that in the rendering of all
services to the Company and in all aspects of employment hereunder, he shall 

 

comply in all
material respects with all directives, policies, standards and regulations from
time to time established by the Company, including without limitation Section
104 of Company’s Employment Policies and Procedures Manual, to the extent they
are not in conflict with this Agreement.

3.4.          Other Obligations.

(a)           Between Executive and Third
Parties.  Executive hereby
represents, warrants and agrees: (i) that Executive has the full right to enter
into this Agreement and perform the services required of him hereunder, without
any restriction whatsoever; (ii) that in the course of performing services
hereunder, Executive will not violate the terms or conditions of any agreement
between him and any third party or infringe or wrongfully appropriate any
patents, copyrights, trade secrets or other intellectual property rights of any
Person anywhere in the world; (iii) that Executive has not and will not
disclose or use during his employment  by the
Company any confidential information that he acquired as a result of any
previous employment or consulting arrangement or under a previous obligation of
confidentiality; and (iv) that Executive has disclosed to the Company in
writing any and all continuing obligations to previous employers or others
that require him not to disclose any information to the Company.

(b)           Between
Company and Third Parties.  Executive acknowledges that the Company from
time to time may have agreements with other Persons, including the government
of the United States or other countries and agencies thereof, which impose
obligations or restrictions on Company regarding inventions made during the
course of work thereunder or regarding the confidential nature of such
work.  Executive agrees to be bound by
all such obligations and restrictions and to take all action necessary to
discharge the obligations of the Company thereunder.

3.5.          Location.  Executive initially shall be based at the
Company’s principal executive offices in Langhorne, Pennsylvania and shall
maintain a residence within 75
miles of Longhorne.

4.             Compensation and Benefits.

4.1.          Salary.  Company
shall pay Executive a base salary (“Salary”), payable in equal
installments in accordance with Company’s standard schedule for salary payments
to its executive employees, at an initial annual rate equal to $250,000.  Executive’s
Salary shall be reviewed annually by the Chief Executive Officer and may be
increased at the beginning of each calendar year.

4.2.          Bonus.  Executive will be eligible to participate in
Company’s Incentive Compensation Plan for Senior Managers (the “Bonus Plan”).  Any bonus awarded under the Bonus Plan for a
given year (“Plan Bonus”) will be subject to the terms and conditions of
the Bonus Plan and based on (i) Company’s performance during such year measured
against one or more Company goals set by the Chief Executive Officer at the
beginning of such year, and (ii) Executive’s performance during such year
measured against one or more job-specific goals determined by the Chief
Executive Officer and Executive at the beginning of such year.  

 

 

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Executive’s
Plan Bonus for a given year will be targeted at between 35 to 100% of Salary for such year, subject to approval by the
Compensation Committee of the Board of Directors.

4.3.          Stock Options.  Promptly after the Effective Date, the
Company shall grant to Executive a nonqualified stock option (the “Option”)
to purchase 2,410,000 shares of the Company’s Common Stock, $0.001 par value
per share.  The Option shall have an
exercise price of $0.64
per share and shall be substantially in the form of Exhibit 4.3.   The Option shall vest as to 25% of the
shares issuable thereunder on the first anniversary of the Effective Date, and
the remainder shall vest in equal monthly portions over the following 36
months, for a total four-year vesting period, all as set forth in greater
detail in the Option.  Notwithstanding
the vesting schedule set forth above, upon a Change of Control (as defined
below), vesting of the Option shall accelerate such that if a Change of Control
occurs on or before the first anniversary of the date of grant of the Option,
then the 50% of the shares issuable pursuant to the Option shall be immediately
vested and if a Change of Control occurs after the first anniversary of the
date of grant of the Option, then all unvested shares issuable pursuant to the
Option shall immediately become vested.

                For purposes of the Option, a “Change
of Control” shall mean the sale of all or substantially all of assets or
issued and outstanding capital stock of the Company in one or more related
transactions, or a merger or consolidation involving the Company in which
stockholders of the Company immediately before such merger or consolidation do
not own immediately after such merger or consolidation capital stock or other
equity interests of the surviving corporation or entity representing more than
fifty percent in voting power of capital stock or other equity interests of
such surviving corporation or entity outstanding immediately after such merger
or consolidation.

 

4.4.          Other Benefits.    Executive shall have the right to
participate in all benefit plans which may be in effect for the Company’s
executive employees from time to time, including, without limitation, group
health and dental insurance, group life insurance, disability insurance, and
401(K) plans, in accordance with the terms and conditions thereof.

4.5.          Expenses.  During the term of this Agreement, the
Company shall pay or reimburse Executive for all reasonable and necessary
out-of-pocket expenses incurred by Executive in the performance of his duties
under this Agreement, subject to the presentment by Executive of appropriate
reports and receipts in accordance with the Company’s normal policies for expense
verification.

4.6.          Vacation.  Executive shall be entitled to four weeks
vacation each calendar year.  Any
vacation taken by Executive shall be taken at such time as is reasonably
convenient in relationship to the needs of the business of the Company.  Vacation time shall not accrue beyond the
year in question; provided, however, that any vacation time not taken
during any year due to constraints imposed by the Company’s business
requirements shall accrue beyond the year in question.

 

 

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5.             Restrictive Covenants.

5.1.          Certain
Definitions.  The following terms
shall have the following meanings:

                                “Competitive
Activity” means the development, manufacture, distribution, sale or
marketing of products or services which compete with the Company’s products or
services, including without limitation computer-mediated wound closure devices,
imaging devices and vascular devices, whether as a proprietor, partner,
shareholder, owner, employer, employee, independent contractor, venturer or
otherwise.

 

                                “Competitor”
means (i) Ethicon Endo-Surgery, (ii) United Stated Surgical Corporation, (iii)
any other Person (other than Company) that engages in any Competitive Activity
during the Restriction Period, and (iv) any affiliate or successor of any of
the foregoing entities.

 

                                “Confidential
Information” means all confidential, secret or proprietary information of
or relating to the Company, its business or practice, which is not generally
known or available to the public (whether or not in written or tangible form)
including, without limitation, designs, technology, customer lists, supplier
lists, processes, know-how, trade secrets, pricing policies and other
confidential business information.

 

                                “Confidential
Materials” means any and all documents, records, reports, lists, notes,
plans, materials, programs, software, disks, diskettes, recordings, manuals,
correspondence, memoranda, magnetic media or any other tangible media
(including, without limitation, copies or reproductions of any of the
foregoing) in which any Confidential Information may be contained.

 

                                “Customers”
means any and all past, present and future customers of the Company.

 

                                “Company”
means the Company and its subsidiaries, whether now or in the future.

 

                                “Non-Competition
Period” means the period of time, commencing on the date hereof and
expiring 12 months after the termination of Executive’s employment with the
Company pursuant to, this Agreement, voluntarily or involuntarily, for any
reason whatsoever, subject to extension pursuant to Section 5.6 below.

 

                                “Person”
means an individual, proprietorship, partnership, joint venture, corporation,
limited liability company, association, trust, estate, unincorporated
organization, a government or any branch, subdivision, department or agency
thereof, or any entity.

 

                                “Personnel”
means any and all employees, contractors, agents, vendors, consultants or other
Persons rendering services or providing goods to the Company for compensation
in any form, whether employed by or independent of the Company.

 

 

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                                “Restricted
Area” means  world-wide.

 

                                “Restriction
Period” means the period of time, commencing on the date hereof and
expiring 12 months after the termination of Executive’s employment with the
Company pursuant to, this Agreement, voluntarily or involuntarily, for any
reason whatsoever, subject to extension pursuant to Section 5.4 below.

 

5.2.          Confidentiality.

(a)           Confidential Information.  Subject to Section 5.2(c):

(i)            Duty to Maintain Confidentiality.  Executive shall maintain in strict confidence
and duly safeguard to the best of his ability any and all Confidential
Information.

(ii)           Covenant Not to Disclose, Use or Exploit.  Executive shall not, directly or indirectly,
disclose, divulge or otherwise communicate to anyone or use or otherwise
exploit for the benefit of anyone, other than the Company, any Confidential
Information.

(iii)          Confidential Materials.  All Confidential Information and Confidential
Materials are and shall remain the exclusive property of the Company and no
such materials or information may be copied or otherwise reproduced, removed
from the premises of the Company or entrusted to any Person (other than Company
itself or authorized Personnel) without prior written permission from the
Company.

(b)           Survival of Covenants.  Notwithstanding anything herein to the
contrary, the covenants set forth in this Section 5.2 shall survive the
termination of this Agreement and any other agreement among the parties hereto
(regardless of the reason for such termination), unless terminated by a written
instrument that expressly terminates by specific reference the covenants set
forth in this Section 5.2.

(c)           Permitted Activities.  If Executive receives a request or demand for
Confidential Information (whether pursuant to a discovery request, subpoena or
otherwise), Executive shall immediately give the Company written notice thereof
and shall at the Company’s expense (provided the Company approves any and all
such expenses) exert his best efforts to resist disclosure, including, without
limitation, by fully cooperating and assisting the Company in whatever efforts
it may make to resist or limit disclosure or to obtain a protective order or
other appropriate remedy to limit or prohibit further disclosure or use of such
Confidential Information.  If Executive
complies with the preceding sentence but nonetheless becomes legally compelled
to disclose Confidential Information, Executive shall disclose only that
portion of the Confidential Information that he is legally compelled to
disclose.

5.3.          Covenant not to Compete.  During the Non-Competition Period, Executive
shall not, directly, indirectly, whether as a sole practitioner, owner,
partner, shareholder, investor, employee, Company, venturer, independent
contractor, consultant or other participant, (i) own, manage, invest in or
acquire any economic stake or interest in any Person involved in a 

 

 

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Competitive
Activity, (ii) derive economic benefit from or with respect to any Competitive
Activity, or (iii) otherwise engage or participate in any manner whatsoever in
any Competitive Activity; provided, however, this Section 5.3 shall not
restrict Executive from owning less than 1% of the publicly traded debt or
equity securities issued by a corporation or other entity or from having any
other passive investment that creates no conflict of loyalty or interest with
any duty owed to the Company.  Executive
shall be deemed to have derived economic benefit in violation of this Section 5.3
if, among other things, any of his compensation or income is in any way related
to any Competitive Activity conducted by any Person.  Further, during the Non-Competition Period
Executive shall not, directly or indirectly, advance, cooperate in or help or
aid any Competitor in the conduct of any Competitive Activity, or accept any
employment with or otherwise be involved, directly or indirectly, in (or with
any Person involved in) any Competitive Activity which by its nature could
reasonably be expected to involve the use or disclosure of any Confidential
Information.

5.4.          Covenants not to Interfere.

(a)           Customers.  During the Restriction Period, Executive
shall not, directly or indirectly, induce or influence, or attempt to induce or
influence, any Customer to terminate a relationship which has been formed or is
being formed, or otherwise divert from the Company, any Customer, or solicit,
induce or influence any Customer to discontinue, reduce the extent of,
discourage the development of or otherwise harm its relationship with the
Company, including, without limitation, to commence or increase its
relationship with any Competitor.

(b)           Personnel.  During the Restriction Period, Executive
shall not, directly or indirectly, recruit, solicit or otherwise induce or
influence any Personnel of the Company to discontinue, reduce the extent of,
discourage the development of or otherwise harm its relationship or commitment
to the Company.  Conduct prohibited under
this Section 5.4(b) shall include, without limitation, employing, seeking to
employ or causing, aiding, inducing or influencing a Competitor to employ or
seek to employ any Personnel of the Company.

5.5.          Equitable Relief.  Each of the parties acknowledges that the
provisions and restrictions of this Section 5 are reasonable and necessary for
the protection of the legitimate interests of Company.  Each of the parties further acknowledges that
the provisions and restrictions of this Section 5 are unique and that any
breach or threatened breach of any such provisions or restrictions will provide
Company with no adequate remedy at law, and the result will be irreparable harm
to Company.  Therefore, the parties
hereto agree that upon a breach or threatened breach of the provisions or
restrictions of this Section 5, Company shall be entitled, in addition to any
other rights and remedies which may be available to it, to institute and
maintain proceedings at law or in equity, to recover damages, to obtain an
equitable accounting of all earnings, profits or other benefits resulting from
such breach or threatened breach and to obtain specific performance or a
temporary and permanent injunction.

5.6.          Full Restriction Period.  If Executive violates any restrictive
covenant contained herein and Company institutes action for equitable relief,
Company, as a result of the time involved in obtaining such relief, shall not
be deprived of the benefit of the full Non-Competition Period or Restriction
Period, as the case may be.  Accordingly,
the Non-Competition Period and the Restriction Period shall be deemed to have
the respective durations 

 

 

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specified in
Section 5.1, computed from and commencing on the date on which relief is granted
by a final order from which there is no appeal, but reduced, if applicable, by
the length of time between the date such period commenced and the date of the
first violation of any restrictive covenant by Executive.

5.7.          Equitable Accounting.  Company shall have the right to demand and
receive equitable accounting with respect to any consideration received by
Executive in connection with activities in breach of the restrictive covenants
herein, and Company shall be entitled to payment from Executive of such
consideration on demand.

5.8.          Prior Breaches.  Neither the expiration of the Restriction
Period nor the termination of the status of any Customer or Personnel as such
(whether or not due to a breach hereof by Executive) shall preclude, limit or
otherwise affect the rights and remedies of Company against Executive based
upon any breach hereof during the Restriction Period or before such status of
Customer or Personnel terminated.

5.9.          Noncircumvention of Covenants.  Executive acknowledges and agrees that, for
purposes of this Agreement, an action shall be considered to have been taken by
Executive “indirectly” if taken by or through (a) any member of his family
(whether a close or distant relation by blood, marriage or adoption), (b) any
Person owned or controlled, solely or with others, directly or “indirectly” by
Executive or a member of his family, (c) any Person of which he is an owner,
partner, Company, employee, trustee, independent contractor or agent, (d) any
employees, partners owners or independent contractors of any such Person or (e)
any other one or more representatives or intermediaries, it being the intention
of the parties that Executive shall not directly or indirectly circumvent any
restrictive covenant contained herein or the intent thereof.

5.10.        Notice of Restrictions.  During the Restriction Period, Employee shall
notify each prospective Company, partner or co-venturer of the restrictions
contained in this Agreement.  Company is
hereby authorized to contact any of such Persons for the purpose of providing
notice of such restrictions.

5.11.        Reduction of Restrictions by Court
Action.  Each of the provisions
hereof, including, without limitation, the periods of time, geographic areas
and types and scopes of duties of, and restrictions on the activities of, the
parties hereto specified herein are and are intended to be divisible, and if
any portion thereof (including any sentence, clause or word) shall be held
contrary to law or invalid or unenforceable in any respect in any jurisdiction,
or as to one or more periods of time, areas or business activities or any part
thereof, the remaining provisions shall not be affected but shall remain in
full force and effect, and any such invalid or unenforceable provision shall be
deemed, without further action on the part of any party hereto or other Person,
modified and amended to the minimum extent on the part of any party hereto or
other Person, modified and amended to the minimum extent necessary to render
the same valid and enforceable in such jurisdiction.

5.12.        Fairness of Restrictions.  Executive acknowledges and agrees that (a)
compliance with the restrictive covenants set forth herein would not prevent
him from earning a living that involves his training and skills without
relocating, but only engaging in unfair 

 

 

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competition
with, misappropriating a corporate opportunity of, or otherwise unfairly
harming Company and (b) the restrictive covenants set forth herein are intended
to provide a minimum level of protection necessary to protect the legitimate
interests on Company.  In addition, the
parties acknowledge that nothing herein is intended to or shall limit, replace
or otherwise affect any other rights or remedies at law or in equity for
protection against unfair competition with, misappropriation of corporate
opportunities of, disclosure of confidential and proprietary information of, or
defamation of Company, or for protection of any other rights or interest of
Company.

6.             Ownership and Assignment of Inventions.  Executive agrees that if, during his
employment with Company, Executive shall (either alone or with others) make,
conceive, discover or reduce to practice any invention, modification,
discovery, design, development, improvement, process, formula, data, technique,
know-how, secret or intellectual property right whatsoever or any interest
therein (whether or not patentable or registrable under copyright or similar
statutes or subject to analogous protection) (collectively, “Inventions”)
that relates to any of the products or services being developed, manufactured
or sold by Company or which may conveniently be used in relation therewith or
which may be used in place of any such product or service, or results from
tasks assigned to Executive by Company or results, in whole or in part, from
the use of property or premises owned, leased or contracted for by Company,
such Inventions and the benefits thereof shall immediately become the sole and
absolute property of Company and its assigns. 
Executive agrees that all Inventions that consist of works of authorship
capable of protection under copyright laws shall constitute works made for
hire.  Executive hereby agrees to assign,
and to the extent he may lawfully do so, hereby assigns to Company, any rights
Executive may have or acquire in the Inventions and benefits and/or rights
resulting therefrom to Company and its assigns without compensation.

7.             Executive’s Obligation to Keep Records.  Executive shall make and maintain adequate
and current written records of all Inventions, including notebooks and
invention disclosures, which records shall be available to and remain the
property of Company at all times. 
Executive shall promptly disclose all Inventions to Company, fully, in
writing and without publishing the same, immediately upon production or
development of the same and at any time upon request.

 

 

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8.             Executive’s Obligation to Cooperate.  Executive will, at any time during his
employment, or after it terminates, upon request of Company, execute all
documents and perform all lawful acts which Company considers necessary or
advisable to secure its rights under Section 6 of this Agreement and to carry
out the intent of this Agreement. 
Without limiting the generality of the foregoing, Executive will assist
Company in any reasonable manner to obtain for its own benefit patents or
copyrights in any and all countries with respect to all Inventions assigned
pursuant to Section 6, and Executive will execute, when requested, patent and
other applications and assignments thereof to Company, or Persons designated by
it, and any other lawful documents deemed necessary by Company to carry out the
purposes of this Agreement, and Executive will further assist Company in every
way to enforce any patents and copyrights obtained, including testifying in any
suit or proceeding involving any of said patents or copyrights or executing any
documents deemed necessary by Company, all without further consideration than
provided for herein.  It is understood
that reasonable out-of-pocket expenses of Executive’s assistance incurred at
the request of Company under this Section will be reimbursed by Company.

9.             Termination.

9.1.          Bases for Termination.  Notwithstanding any other provision of this
Agreement, the employment relationship created under this Agreement between
Company and Executive shall terminate immediately upon the occurrence of any
one of the following events:

(a)           The death of Executive;

(b)           Executive shall become Permanently
Disabled (as defined in Section 9.4);

(c)           Immediately upon delivery to
Executive by Company of written notice of termination for Cause (as defined in
Section 9.4);

(d)           Immediately upon delivery to
Executive by Company of written notice of termination without Cause; or.

(e)           Thirty (30) days after delivery to
Company by Executive of written notice of Executive’s voluntary and unilateral
termination of this Agreement.

Notwithstanding
any termination of employment, Executive, in consideration of his employment
hereunder to the date of such termination and the payment by Company of the
compensation payable hereunder, agrees that Executive’s covenants and
obligations set forth in Sections 5 through 10 shall remain in effect and be
fully enforceable in accordance with the provisions thereunder.

9.2.          Effect of Termination.

(a)           If Executive’s employment is
terminated  pursuant  to clauses (a), (b), (c) or (e) of Section 9.1
hereof, Executive shall be entitled to receive his Salary pro-rated through the
effective date of such termination (which shall be the date of death or the
date Executive becomes Permanently Disabled), which pro-rated Salary shall be
paid to Executive 

 

 

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within 15
days of such effective date.  Executive
shall also be entitled to reimbursement for all Expenses incurred by Executive
prior to such effective date, to the extent that such expenses have not been
previously reimbursed by Company, which Expenses shall be paid to Executive
within 15 days after Executive submits to Company appropriate documentation as
required hereunder.

(b)           If Executive’s employment is
terminated pursuant to clause (d) of Section 9.1 hereof, Company shall (i)
continue to pay to Executive his Salary in effect as of the date immediately
prior to the effective date of such termination, until the six-month
anniversary of such effective date, and (ii) reimburse Executive for all
Expenses incurred prior to such effective date, to the extent that such
Expenses have not been previously reimbursed by Company, which Expenses shall
be paid to Executive within 15 days after Executive submits to Company
appropriate documentation as required hereunder.

9.3.          Surrender of Records and Property.  Upon termination of his employment with Company,
Executive shall promptly deliver to Company all records, manuals, books, blank
forms, documents, letters, memoranda, notes, notebooks, reports, data, tables,
calculations and copies thereof, which are the property of ­Company or which
relate in any way to the business, products, practices or techniques of
Company, and all other property, trade secrets and confidential information of
Company, including, without limitation, all documents which in whole or in part
contain any trade secrets or confidential information of Company, which in any
of these cases are in his possession or under his control.

9.4.          Certain Definitions.  For the purposes of this Section 9, the
following terms shall have the following meanings:

                                “Cause” shall mean (i)
Executive’s willful misconduct which materially and adversely reflects upon the
business, affairs, operations, or reputation of Company or upon Executive’s
ability to perform his duties for Company; (ii) Executive’s failure to perform
his duties and responsibilities other than as a result of disability for
Company, which failure continues for more than ten days after Company gives
written notice to Executive which sets forth in reasonable detail the nature of
such failure; (iii) Executive’s negligent performance of his duties, which
negligent performance continues for more than ten days after Company gives
written notice to Executive which sets forth in reasonable detail the nature of
such negligence; or (iv) Executive’s breach of any one or more of the material
provisions of this Agreement (including without limitation Section 3.3 and the
policies referenced therein), which breach continues for more than ten days
after Company gives written notice to Executive which sets forth in reasonable
detail the nature of such breach.

                                “Permanently
Disabled” means Executive is unable to continue his normal duties of
employment, by reason of a medically determined physical or mental impairment,
for a continuous period of nineteen (19) consecutive weeks or for any
twenty-six (26) weeks within a fifty-two (52) week period.

 

10.           Miscellaneous Provisions.

 

 

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10.1.        Governing
Law and Jurisdiction.  This Agreement shall be deemed to be a
contract made under the laws of the Commonwealth of Pennsylvania and for all
purposes shall be construed in accordance with the laws of said state
applicable to contracts made and to be performed within said state.  The parties consent to the exclusive
jurisdiction of the Courts of Common Pleas located in Bucks County,
Pennsylvania in all actions arising out of this Agreement.

10.2.        Entire Agreement.  This Agreement (together with the exhibit
attached hereto, which hereby is incorporated by reference) contains the entire
agreement of the parties hereto relating to the employment of Executive by
Company and the other matters discussed herein and supersedes all prior
agreements and understandings with respect to such subject matter, and the
parties hereto have made no agreements, representations or warranties relating
to the subject matter of this Agreement which are not set forth herein.

10.3.        Withholding
Taxes.  Company may withhold from any compensation or
other benefits payable under this Agreement all federal, state, city or other
taxes as shall be required pursuant to any law or governmental regulation or
ruling.

10.4.        Supplements
and Amendments.  This Agreement may be supplemented or amended
only upon the written consent of each of the parties hereto.

10.5.        Assignment.  Except as expressly
provided below, this Agreement shall not be assignable, in whole or in part, by
either party without the prior written consent of the other party.  Company may, without the prior written
consent of Executive, assign its rights and obligations under this Agreement to
any other corporation, firm or other business entity with or into which Company
may merge or consolidate, or to which Company may sell or transfer all or
substantially all of its assets, or of which 50% or more of the equity
investment and of the voting control is owned, directly or indirectly, by, or
is under common ownership with, Company. 
This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns.

10.6.        No
Waiver.  No term or condition of this Agreement shall
be deemed to have been waived, nor shall there be any estoppel to enforce any
provisions of this Agreement, except by a statement in writing signed by the
party against whom enforcement of the waiver or estoppel is sought.  Any written waiver shall not be deemed a
continuing waiver unless specifically stated, shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such
term or condition for the future or as to any act other than that specifically
waived.

10.7.        Severability.   The provisions of
this Agreement are severable, and if any one or more provisions may be
determined to be judicially unenforceable and/or invalid by a court of
competent jurisdiction, in whole or in part, the remaining provisions shall
nevertheless be binding, enforceable and in full force and effect.

10.8.        Titles
and Headings.  The titles and headings of  the various Sections of this Agreement are
intended solely for convenience of reference and not intended for any 

 

 

11

purpose
whatsoever to explain, modify or place any construction upon any of the
provisions hereof.

10.9.        Remedies.  Executive recognizes that money damages alone
may not adequately compensate Company in the event of breach by Executive of
this Agreement, and Executive therefore agrees that, in addition to all other
remedies available to Company at law, in equity or otherwise, Company may be
entitled to injunctive relief for the enforcement hereof.  (For purposes of clarification, Executive’s
consent to injunctive relief is subject to Company first proving a material
breach of this Agreement.)  All rights
and remedies hereunder are cumulative and are in addition to and not exclusive
of any other rights and remedies available at law, in equity, by agreement or
otherwise.

10.10.      Validity.  In the event that any provision of this
Agreement shall be determined to be unenforceable by reason of its extension
for too great a period of time or over too large a geographic area or over too
great a range of activities, it shall be interpreted to extend only over the
maximum period of time, geographic area or range of activities as to which it
may be enforceable.  If, after application
of the preceding sentence, any provision of this Agreement shall be determined
to be invalid, illegal or otherwise unenforceable by a court of competent
jurisdiction, the validity, legality and enforceability of the other provisions
of this Agreement shall not be affected thereby.  Except as otherwise provided in this Section 10,
any invalid, illegal or unenforceable provision of this Agreement shall be
severable, and after any such severance, all other provisions hereof shall
remain in full force and effect.

10.11.      Notices.  For the purpose of this Agreement, notices
and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when hand delivered (which shall
include personal delivery and delivery by courier, messenger or overnight
delivery service) or mailed by certified mail, return receipt requested,
postage prepaid, addressed as follows:

If
to Executive:      At his home address in
accordance with the Company’s

records.

 

If to Company:      2021
Cabot Boulevard West

Langhorne, PA  19047

 

or to such other address of which either
party gives notice to the other party in accordance herewith, except that
notices of change of address shall be effective only upon receipt.

 

10.12.      Counterparts.  This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

 

 

12

IN
WITNESS WHEREOF, the parties hereto have executed this Employment Agreement on
the day and year first written above.

 

	
   

  	
  POWER MEDICAL
  INTERVENTIONS, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ MICHAEL WHITMAN

  
	
   

  	
   

  	
  Name:

  	
  Michael Whitman

  
	
   

  	
   

  	
  Title:

  	
  President & CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ ALEX BOURDON

  
	
   

  	
  Alex Bourdon

  

 

 

13Exhibit 10.1  

Erwin
J. Goede

Vice President and President—Chemicals Europe, Asia and Australia 

April 23,
2007                

Dear
Erwin: 

        This
letter is being presented to you in acknowledgement of your on-going contribution and efforts in helping implement PQ's strategic ownership alternatives and your
continued positive cooperation during this process. 

        The
PQ Board of Directors has approved my request to make you eligible for a one time special payment in the amount of $200,000 as follows. 

	(a)
	In
the event of a Change of Control, the payment will be in cash (subject to normal withholding).

	(b)
	In
the event of an IPO, the payment will be a combination of cash and restricted stock (at the Company's discretion) equal to the same amount.

	(c)
	Such
payment will be made on the 90th calendar day following the date of a Change of Control or IPO. 

        This
special payment does not change any other conditions of your employment with PQ, as it is considered an extraordinary event tied solely to a Change of Control or an IPO actually
taking place. As such, it will not be treated as normal compensation for purposes of calculating compensation driven benefits (i.e. Pensionable Earnings, 401k match etc.). 

        Should
you decide to leave PQ voluntarily prior to the date of payment, you will not receive this special payment. 

        On
behalf of the PQ Board and me personally, thank you for your past efforts. I look forward to your continued positive contributions towards the future success of PQ. 

Sincerely,

	/s/  MICHAEL R. BOYCE      
 Michael R. Boyce
 Chairman and
CEO

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