Document:

CNS, Inc. Exhibit 10.19 to Form 10-K dated March 31, 2005

Exhibit 10.19 

CNS, Inc.
7615 Smetana Lane

Eden Prairie, Minnesota 55344 

January 31, 2005 

Nicole C. Strait
[address]
[address] 

Dear Nicole: 

I am pleased to confirm my offer of
employment to you as Vice President of Human Resources reporting to me. If you accept this
offer, your start date will be as mutually agreed between us, but not later than March 7,
2005. 

Your compensation package will
include the following components: 

	Your base salary will be $130,000
annualized, paid over our regular semi-monthly pay periods. 

 
	
You will be eligible for annual revenue and profit based incentive bonus of up to 60% (15%
at threshold, 30% at plan and 60% maximum) of your base salary. The parameters of the
incentive bonus plan for senior management are presented by management for approval by the
Board of Directors each year. 

 
	
Subject to approval of the CNS, Inc. Board of Directors, we will grant you an option to
purchase 12,000 shares of CNS common stock. These shares will vest in equal amounts over a
five year period beginning on the first anniversary of the grant date (date of Board
approval). The exercise price will be determined based on the Fair Market Value at the
market close on the date of grant. 

 
	
Periodically, at the discretion of the Compensation Committee, you will be eligible to
receive stock option grants that will vest over a three-year period. 

Nicole C. Strait Offer
Letter
Page Two 

	You will be eligible for a one time
hiring bonus of $30,000 to be paid with your first pay check. 

 
	
You will be eligible to participate in CNS, Inc.’s benefit plans. A packet of benefit
information will be sent to you under separate cover following your acceptance of this
offer. CNS’ benefit plan includes 25 days of Paid Time Off (PTO) during the first
year of employment. Eight of the 25 days will be added to your PTO bank immediately upon
date of hire. The remaining 17 days accrue at a rate of 5.67 hours per pay period over the
first twelve months. 

 
	
In the event your employment is terminated by CNS without Cause (as defined on Exhibit A)
prior to a change in control of CNS, in exchange for a written release of all claims by
you, CNS will pay you severance equal to your annual base salary payable over a period of
twelve months from your termination date, subject to required withholding salary plus pay
your COBRA premium over the same period. In the event your employment is terminated by CNS
without Cause or you resign your employment with CNS for Good Reason (as defined on
Exhibit A) within 24 months after a change in control of CNS, in exchange for a written
release of all claims by you, CNS will pay you severance equal to two times your annual
base salary payable over a period of twenty-four months from your termination date,
subject to required withholding plus your COBRA premium payable over a period of 18 months
from your termination date.

We will schedule pre-employment drug
and alcohol screen tests for you at the Airport Clinic. This employment offer is
contingent upon successfully completing these tests. As a condition of your employment and
as consideration for the compensation and benefits to be provided, you will, prior to your
first day of employment, execute the Employment Agreement attached as Exhibit B,
containing confidentiality, invention assignment and noncompetition provisions required of
all new employees. 

Nicole, we are very excited about the
prospect of you joining CNS and ask that you confirm your acceptance of this offer by
signing the enclosed copy of this letter and returning it to me at your earliest
convenience. If you have any questions at all about the terms of the offer, please call me
or Michelle Beuning so that we can discuss and resolve them as soon as possible. I know
that you will find this position a challenging and rewarding opportunity and that you will
be an important part of delivering the CNS vision! 

	Sincerely,	Accepted and agreed to this offer on the
	 
	 
	/s/  Marti Morfitt	7th day of February, 2005.
	 
	 
	Marti Morfitt	/s/ Nicole C. Strait
                         
	President & CEO  	Nicole C. Strait

EXHIBIT
A

“Cause” shall mean one or
more of the following: (i) your willful failure or refusal to perform your expected
services to CNS consistent with your position; (ii) your commission of an
intentional breach of fiduciary duty against CNS or a substantial act of fraud against or
affecting CNS or any customer, supplier, client, agent, or executive thereof; (iii) your
commission of any other willful or reckless act which is deemed by CNS’s Board to
have a material adverse effect on CNS (it being understood that mere negligence in
performance of duties is not Cause under this Agreement); (iv) your willful breach
of any provision of this Agreement or any policy or directive of the Board or the CEO,
including the CNS Code of Conduct; or (v) your commission of any act involving moral
turpitude which is deemed by CNS’s Board to have a material adverse effect on CNS or
your position with CNS; or (vi) your unsatisfactory performance after specific
notice of performance deficiencies, description of expectations and opportunity to cure.  

“Good Reason” shall mean:
(i) CNS has materially breached any of the terms of this Agreement; (ii) you are assigned
duties which are materially inconsistent with your position, duties, responsibilities and
status as Vice President of Human Resources; (iii) your base salary or bonus opportunity,
is reduced; or (iv) as a result of the relocation of CNS’ principal offices, you
would be required to relocate your principal residence outside reasonable commuting
distance of the Twin Cities Metropolitan area.CNS, Inc. Exhibit 10.20 to Form 10-K dated March 31, 2005

Exhibit 10.20 

MEMORANDUM 

	DATE:  	  	June
1, 2005  

	TO:  	  	Sue
Horvath  

	FROM:  	  	Marti
Morfitt  

This is intended to confirm your
recent promotion to Vice President & Team Leader, International reporting to me and
effective April 1, 2005. Your new base salary is $145,000 annualized, paid over regular
semi-monthly pay periods. 

In the event your employment is
terminated by CNS without Cause (as defined on Exhibit A) prior to a change in control of
CNS, in exchange for a written release of all claims by you, CNS will pay you severance
equal to your annual base salary payable over a period of twelve months from your
termination date, subject to required withholding salary plus pay your COBRA premium over
the same period. In the event your employment is terminated by CNS without Cause or you
resign your employment with CNS for Good Reason (as defined on Exhibit A) within 24 months
after a change in control of CNS, in exchange for a written release of all claims by you,
CNS will pay you severance equal to two times your annual base salary payable over a
period of twenty-four months from your termination date, subject to required withholding
plus your COBRA premium payable over a period of 18 months from your termination date. 

Sue, we are excited to have you take
on these new responsibilities. If you have any questions about the terms of this new
position, please see me or Nicole Strait. I know that this will be a challenging and
rewarding opportunity for you and that you will be an important part of delivering the CNS
vision! 

Regards, 

Marti Morfitt 

EXHIBIT A 

“Cause” shall mean one or
more of the following: (i) your willful failure or refusal to perform your expected
services to CNS consistent with your position; (ii) your commission of an
intentional breach of fiduciary duty against CNS or a substantial act of fraud against or
affecting CNS or any customer, supplier, client, agent, or executive thereof; (iii) your
commission of any other willful or reckless act which is deemed by CNS’s Board to
have a material adverse effect on CNS (it being understood that mere negligence in
performance of duties is not Cause under this Agreement); (iv) your willful breach
of any provision of this Agreement or any policy or directive of the Board or the CEO,
including the CNS Code of Conduct; or (v) your commission of any act involving moral
turpitude which is deemed by CNS’s Board to have a material adverse effect on CNS or
your position with CNS; or (vi) your unsatisfactory performance after specific
notice of performance deficiencies, description of expectations and opportunity to cure.  

“Good Reason” shall mean:
(i) CNS has materially breached any of the terms of this Agreement; (ii) you are assigned
duties which are materially inconsistent with your position, duties, responsibilities and
status as Vice President of Human Resources; (iii) your base salary or bonus opportunity,
is reduced; or (iv) as a result of the relocation of CNS’ principal offices, you
would be required to relocate your principal residence outside reasonable commuting
distance of the Twin Cities Metropolitan area.CNS, Inc. Exhibit 10.21 to Form 10-K dated March 31, 2005

Exhibit 10.21 

AMENDED AND RESTATED
EXECUTIVE EMPLOYMENT
AGREEMENT 

       This
Amended and Restated Executive Employment Agreement (the “Agreement”) is made as
of June 7, 2005 (the “Effective Date”) between CNS, Inc., a Delaware
corporation (“CNS”), and Dan Cohen (“Employee”) and amends and
restates the Executive Employment Agreement dated February 12, 1999, as amended June
29, 2001, June 29, 2003 and June 30, 2004 between CNS and Employee. 

       WHEREAS,
CNS considers the establishment and maintenance of a sound and vital management to be
essential to protecting and enhancing the best interests of CNS and its shareholders; and 

       WHEREAS,
Employee has made and is expected to continue to make, due to his experience and
knowledge, a significant contribution to the profitability, growth and financial strength
of CNS; and 

       WHEREAS,
it is in the best interests of CNS to receive certain assurances from Employee regarding
CNS’s confidentiality, competition and other proprietary business concerns; 

       THEREFORE,
in consideration of the foregoing and of this Agreement, continued employment and other
benefits hereunder, as well as other mutual covenants and obligations hereinafter set
forth, CNS and Employee agree as follows: 

	  	1.  	  	Employment.
 Employee’s sole duties and responsibilities will be that of Chairman of the
Board of Directors of CNS, Inc., a part-time, regular position with the Company. As such,
Employee will perform the duties of Board Chairman and director, which shall include
chairing Board meetings and interacting with the Chief Executive Officer as appropriate.
Employee agrees to make himself available to assist the CEO and CFO, as requested, in
reviewing new products and negotiating licensing contracts with inventors. Employee will
also provide other expertise and assistance, as requested by the CEO or other members of
the Management Team. The Company will provide Employee home office support and will make
an office available to Employee at CNS.  

	  	2.  	  	Term.
 The Company agrees to retain Employee as an employee of the Company under the terms
of this Agreement until June 30, 2006, at which time, unless the Agreement is
extended by mutual agreement of the parties, the Agreement shall terminate, except with
respect to the provisions of Sections 6, 7, 8, 9, 10 and 11 of the Agreement, which
shall survive. Effective June 30, 2006, Employee will cease to be an employee of the
Company, and Employee’s salary, perquisites and any other welfare and fringe
benefits provided to him as an employee shall thereupon cease. Employee shall not be
entitled to any salary continuation, severance or similar payment from the Company under
the Agreement or any policy or practice of the Company because of such termination on June 30,
2006.  

	  	3. 	  	Compensation.
 As full compensation during the term of employment for services as Chairman, the
Company will pay Employee a base salary at a rate of One Hundred Thousand Dollars
($100,000) per annum, payable in semi-monthly installments, subject to tax withholding to
the extent required by law. Employee will not accrue paid time off during the term of
employment, but shall be entitled to take time off as required without any change in base
salary.  

	  	4. 	  	Benefits.
 Employee shall be entitled to such insurance, 401(k) program and other benefits
available to all part-time salaried employees of CNS, subject to any limitations on such
benefits to officers, directors or highly paid employees in order that such benefit
programs qualify under federal or state law for favored tax or other treatment. Such
benefit programs may be changed from time to time by the Company. Employee shall also be
entitled to reimbursement of his reasonable and necessary expenses incurred in connection
with the performance of his duties hereunder. The Company shall also pay or reimburse
Employee for the reasonable and necessary costs associated with a home office maintained
by the Employee, provided that the Employee provides reasonable proof of such expenses in
accordance with general Company policies.  

	  	5. 	  	Termination
by Employee.  Employee may resign his employment with CNS effective upon 30 days’ advance
written notice to the Chief Executive Officer. If Employee resigns under this paragraph,
the Chief Executive Officer retains the right to terminate his employment, effective upon
written notice to Employee, at any time during the 30-day notice period; provided,
however, that base salary and the employer portion of his health insurance premiums will
continue to be paid by CNS for the duration of the 30-day notice period.  

	  	6. 	  	Confidential
 Information.  All knowledge and information not already available to the
public which Employee may acquire or has acquired with respect to product development,
improvements, modifications, discoveries, designs, methods, systems, computer software,
programs, codes and documentation, research, designs, formulas, instructions, methods,
inventions, trade secrets, services or other private or confidential matters of CNS (such
as those concerning sales, costs, profits, organizations, customer lists, pricing
methods, etc.), or of any third party which CNS is obligated to keep confidential, shall
be regarded by Employee as strictly confidential and shall not be used by Employee
directly or indirectly or disclosed to any persons, corporations or firms. All of the
foregoing knowledge and information are collectively termed “Confidential Information” herein.
Employee’s obligations under this paragraph will not apply to any information which
(a) is or becomes known to the general public under circumstances involving no breach by
Employee of the terms of this paragraph; (b) is generally disclosed to third parties by
CNS as a continuing practice without restriction on such third parties; (c) is approved
for release by written authorization of CNS’s Board; or (d) Employee is obligated by
law to disclose.  

	  	7.  	  	Disclosure
and Transfer of Product Developments, etc. 

	  	  	a.  	  	Employee
will make full and prompt disclosure to CNS of all product developments, improvements,
modifications, discoveries, computer software, programs, codes and documentation,
research, designs, formulas, configurations,  

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	  	  	  	  	instructions, methods
and inventions (all of which are collectively termed “Developments” herein),
whether patentable or not, made, discovered, conceived or first reduced to practice by
Employee or under his direction during his employment, alone or with others, whether or
not made or conceived during normal working hours or on the premises of CNS which relate
in any material way to the business or to research or development work of CNS. Employee
confirms by his acceptance of this Agreement that CNS owns and shall own all of the
Developments.  

	  	  	b.  	  	Employee
also agrees on behalf of himself and his heirs and legal representatives that he will promptly communicate, disclose and transfer
to CNS, free of encumbrances and restrictions, all of his right, title and interest in the Developments covered by subparagraph
7.a. and any patents or patent applications covering such Developments and to execute and deliver such assignments, patents and
applications, and any other documents as CNS may direct, and to cooperate fully with CNS to enable it to secure any patents or
otherwise protect such Developments in any and all countries. Employee shall assign to CNS any and all copyrights and reproduction
rights to all material prepared by Employee in connection with his employment. 

	  	  	c.  	  	Notwithstanding
subparagraphs 7.a. and b., however, this paragraph 7 shall not apply to Developments for which no equipment, supplies, facility or
trade secret information of CNS was used and which was developed entirely on the Employee’s own time, and (1) which do not
relate (a) directly to the business of CNS, or (b) to CNS’s actual or demonstrably anticipated research or development; or
(2) which does not result from any work performed by Employee for CNS. 

       This
will confirm that Employee’s obligations to CNS under paragraphs 6, 7 and 8 will
continue after the termination of Employee’s employment.  

	  	8. 	  	Non-Competition.
 During the term of Employee’s employment by CNS and for twelve (12) months
thereafter, Employee shall not directly or indirectly engage in, enter into or
participate in the business of CNS or in any business or commercial activity which does
or is reasonably likely to compete with or adversely affect the Business or products of
CNS, either as an individual for Employee’s own account, as a partner or a joint
venturer, or as an officer, director, consultant or holder of more than five percent (5%)
of the entity interest in, any other person, firm, partnership or corporation, or an
employee, agent or salesman for any person. In addition, during such period Employee
shall not: avail himself of any advantages or acquaintances he has made with any person
who has, within the twelve (12) month period ended on the date of termination of his
employment, been a customer of CNS or its affiliates, and which would, directly or
indirectly, materially divert business from or materially and adversely affect the
Business of CNS; interfere with the contractual relations between CNS and any of its
employees; or employ or cause to be employed in any capacity or retain or cause to be
retained as a consultant any person who was employed in any capacity by CNS during the
twelve (12) month period ended on the date of termination of Employee’s employment.  

3  

       For
purposes of this Agreement, the “Business of CNS” or “Business” means
and includes the business of the manufacture, production, sale, marketing and distribution
of the Breathe Right strip and any other products currently offered or currently under
development by CNS or offered or currently under development by CNS during one (1) year
prior to the date of termination of Employee’s employment. 

       Inasmuch
as the activities of CNS are conducted on an international basis, the restrictions of this
paragraph 8 shall apply throughout the United States, Canada, Japan, Europe and Mexico. 

	  	9. 	  	Non-Solicitation.
 During the term of Employee’s employment by CNS and for twelve (12) months
thereafter, Employee shall not directly or indirectly solicit any current or prospective
CNS customer, broker, vendor or distributor for the purpose of providing products or
services for or on behalf of said customer, broker, vendor or distributor which are
competitive with the products or services being provided by CNS, which are in the
development stages of being competitive with the products or services being provided by
CNS, or which would in any way cause said customer, broker, vendor or distributor to
discontinue or reduce its business relationship with CNS. Current CNS customers, brokers,
vendors or distributors include those customer, brokers, vendors or distributors with
whom CNS has had a business relationship at any time within one year immediately
preceding Employee’s termination date. Prospective CNS customers, brokers, vendors
and distributors include those with whom (a) a CNS representative has been in direct
personal contact; and (b) CNS has a reasonable opportunity of entering into a business
relationship within six months following Employee’s termination date. Employee also
agrees that during his employment in the one-year period following his employment, he
will not directly or indirectly solicit any CNS employees to terminate his or her
employment with CNS. This Employee non-solicitation obligation applies to Employees of
CNS during Employee’s employment and as of his termination date.  

	  	10. 	  	Remedies.
 Employee acknowledges that the restrictions set forth in paragraphs 6, 7, 8
and 9 hereof are reasonably necessary to protect legitimate business interests of CNS. It
is understood that if Employee violates his obligations under any of these paragraphs,
CNS would suffer irreparable harm for which a recovery of money damages would be an
incomplete and inadequate remedy. It is therefore agreed that CNS, in addition to any
remedies at law, shall be entitled, as a matter of right, in any court of competent
jurisdiction, to a mandatory injunction restraining Employee pending litigation, as well
as upon final determination thereof, from violating this Agreement. In addition, CNS will
discontinue payment to Employee of any salary, benefits or bonus which he may be entitled
to receive or is receiving under paragraph 5 hereunder, or otherwise in the event of
his violation of any of his obligations under this Agreement.  

	  	11. 	  	Severability.
 The parties intend that the covenants and agreements contained herein shall be
deemed to be a series of separate covenants and agreements, one for each and every state
of the United States and political subdivision outside the United States where the
business described is conducted. If, in any judicial proceeding, a court shall refuse to
enforce any of the separate covenants deemed included in such action, then such
unenforceable covenants  

4  

shall be deemed eliminated from the
provisions of this Agreement for the purpose of such proceeding to the extent necessary
to permit the remaining covenants to be enforced in such proceeding. Further, in the
event that any provision is held to be overbroad as written, such provision shall be
deemed amended to narrow its application to the extent necessary to make the provision
enforceable according to applicable law and enforced as amended.  

	  	12. 	  	Binding
Effect.  

	  	  	a.	  	CNS
will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all of the business and/or assets of CNS to expressly assume and agree to perform this Agreement in the same manner and to the
same extent that CNS would be required to perform it if no such succession had taken place, in which case, the term
“CNS” as used in this Agreement shall instead refer to CNS’ successor. Failure of CNS to obtain such assumption and
agreement prior to the effectiveness of any such succession shall be a breach of this Agreement. 

	  	  	b.	  	This
Agreement shall inure to the benefit of and be enforceable by Employee’s personal or legal representatives, successors,
heirs, and designated beneficiaries. If Employee should die while any amount would still be payable to Employee hereunder if
Employee had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of
this Agreement to Employee’s designated beneficiaries, or, if there is no such designated beneficiary, to Employee’s
estate. 

	  	13. 	  	Entire
Agreement.  From and after the date of this Agreement the terms and provisions
of this Agreement constitute the entire agreement between the parties and this Agreement
supersedes any previous oral or written communications, representations or agreements
with respect to any subject, including the subject matter of compensation, bonus,
participation and profit sharing and termination compensation.  

	  	14. 	  	Waiver
and Interpretation.  The waiver by either party of a breach of any provision of
this Agreement by the other party shall not operate or be construed as a waiver of any
subsequent breach by the breaching party. No waiver shall be valid unless in writing and
signed by the party providing such waiver. If any provision of this Agreement is held by
any court to be unenforceable, then such provision shall be deemed to be eliminated from
the Agreement to permit enforceability of the remaining provisions. If any provision is
held to be overbroad, such provision shall be amended to narrow its application to the
extent necessary for enforceability.  

	  	15. 	  	Applicable
Law.  All questions pertaining to the validity, construction, execution and
performance of this Agreement shall be construed and governed in accordance with the laws
of the State of Minnesota. The parties consent to the personal jurisdiction of the State
of Minnesota, waive any argument that such a forum is not convenient, and agree that any
litigation relating to this Agreement shall be venued in Minneapolis, Minnesota.  

5  

	  	16. 	  	Tax
Withholding.  CNS may withhold from any payment of benefits under this Agreement
(and forward to the appropriate taxing authority) any taxes required to be withheld under
applicable law.  

	  	17. 	  	Notice.
 Any notice required or desired to be given under this Agreement shall be deemed
given if in writing sent by certified mail to his residence in the case of Employee, or
to its principal office in the case of CNS.  

       IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first set
forth above. 

		CNS, INC.
	 
	 
		 By /s/   Marti Morfitt

		Its President and Chief Executive Officer 
	 
		EMPLOYEE
	 
		/s/   Dan Cohen

		Dan Cohen

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