Document:

exv10w1

 

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”), by and between Arcadia Resources, Inc.,
a Nevada corporation (“Arcadia” or “Employer”), and Matthew R. Middendorf, a
resident of the State of Florida (the “Executive”), is entered into on this 4th
day of January, 2008, to be effective as of February 1, 2008 (the “Effective Date”).

     WHEREAS, Employer desires to employ Executive in the position described herein; and

     WHEREAS, Executive desires to serve in that capacity.

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1. Employment. Employer shall employ the Executive, and the Executive shall
serve Employer and its subsidiaries on the terms and conditions set forth in this Agreement, for
the period beginning on the Effective Date and continuing until terminated as provided below in
Section 4 (the “Employment Period”).

     2. Position and Duties.

          (a) As of the Effective Date, and during the Employment Period, the Executive will
be employed as Chief Financial Officer (Principal Financial and Accounting Officer) and Treasurer
of Arcadia and such of its subsidiaries as may be determined by Arcadia’s President and Chief
Executive Officer (“CEO”), performing such duties as may be designated by the
President/CEO from time to time (which shall be consistent with the general nature of the duties
and authority of such officer in similarly situated companies) and in compliance with Employer’s
policies and procedures applicable to similarly situated employees in effect from time to time.
Executive shall report to Arcadia’s President/CEO or to such other person designated by the
President/CEO with Executive’s written consent which shall not be unreasonably withheld.

          (b) During the Employment Period, excluding any periods of vacation and absence due
to intermittent illness to which the Executive is entitled, and any services or activities on
behalf of civic or charitable institutions that do not significantly interfere with the performance
of his responsibilities to Employer or violate the provisions of Section 9, the Executive
shall devote his full time and attention to the business and affairs of Employer and its
subsidiaries. During the Employment Period, Executive shall have no other employment or business
interests; provided, however, that the Executive shall be able to invest his personal assets in
investments and entities as long as such investments do not violate Section 9 and do not
require a material amount of the Executive’s time. The Executive shall use reasonable efforts to
faithfully and efficiently carry out all duties and responsibilities assigned to him.

     3. Compensation.

          (a) Base Salary. During the Employment Period, the Executive shall receive
an annual base salary of $250,000 payable in accordance with the regular payroll practices of
Employer. The Executive’s base salary shall be reviewed annually by Employer, in accordance with
Employer’s standard practices for executives generally, and may be increased, but not decreased, as
determined by the Board of Directors, in its sole discretion, or by any Committee of the Board of
Directors to which such authority has been delegated.

 

 

          (b) Equity Awards. Throughout the Employment Period, Executive shall be
eligible to receive awards of Employer’s equity securities as may be awarded in the discretion of
the Board of Directors or by any Committee of the Board of Directors to which such authority has
been delegated.

          (c) Annual Bonus and Incentive Plans; Other Benefits. Throughout the
Employment Period, the Executive shall be eligible to participate in any bonus or incentive plans
that are available to the senior executives of Arcadia.

          (d) Other Benefits. To at least the same extent as other senior executives
of Arcadia, except as required by law or applicable government regulations, the Executive shall be
entitled to participate in: (i) any short-term and long-term incentive, savings, and retirement
plans; (ii) all practices, policies and programs including vacation policies established by
Employer; and (iii) the Executive and/or the Executive’s family, as the case may be, shall be
eligible for participation in, and shall receive all benefits under, all welfare benefit plans,
practices, policies and programs provided by Employer.

          (e) Expenses. During the Employment Period, the Executive shall be entitled
to receive prompt reimbursement for all reasonable expenses incurred by the Executive in carrying
out the Executive’s duties under this Agreement, provided that the Executive complies with the
generally applicable policies, practices and procedures of Employer for submission of expense
reports, receipts, or similar documentation of such expenses.

          (f) Automobile Allowance. Employer will provide Executive with an
automobile allowance of $500 per month throughout the term of this Agreement.

          (g) Vacation. Executive shall be entitled to four (4) weeks of paid
vacation leave annually or such greater period of vacation leave as Employer may prescribe.

          (h) Relocation Allowance. On the date which the Executive receives his
first paycheck in accordance with the regular payroll practices of the Employer, the Employer will
pay the Executive a relocation allowance of $7,500 for use in defraying Executive’s moving costs
including, but not limited to, trips to search for housing, temporary lodging expenses, packing,
moving, and unpacking of personal goods, insurance and travel for Executive and his family to
Executive’s new residence in Indianapolis, Indiana (the “Relocation Allowance”). Executive
acknowledges that the Relocation Allowance will be subject to income and employment taxes. If
Executive resigns for any reason other than Good Reason or if Executive is terminated for Cause
prior to the first anniversary of the Effective Date, then the Executive shall repay the Relocation
Allowance, in full, either by set off or in cash within thirty (30) days following the termination
date.

          (i) Temporary Living Expenses. Executive agrees to use his reasonable best
efforts to obtain a permanent residence in Indianapolis, Indiana as soon as reasonably practicable
following the Effective Date. For the period beginning on the Effective Date and ending on the
date upon which Executive and his family are moved into a permanent residence in Indianapolis,
Indiana, but in no event later than August 1, 2008 (the “Temporary Living Period”), the
Company will provide temporary living arrangements reasonably acceptable to Executive for Executive
and his family. If Executive precedes his family to the temporary living location in Indianapolis,
Indiana, transportation to and from the Indianapolis, Indiana will be reimbursed during the
temporary living period. Such reimbursements will be limited to intervals of two (2) weeks during
the Temporary Living Period. Executive acknowledges that the Company’s provision of temporary
living arrangements will be subject to income and employment taxes.

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     4. Termination of Employment.

          (a) Death or Disability. The Executive’s employment and the Employment
Period shall terminate automatically upon the Executive’s death or Disability during the Employment
Period. “Disability” means Executive’s inability, because of mental or physical illness or
incapacity, whether total or partial, to perform one or more primary duties of the Executive’s
employment with reasonable accommodation, and which continues for a period of one hundred eighty
(180) days within any twelve (12) period. If any question shall arise during the Executive’s
employment hereunder regarding the Executive’s inability, because of mental or physical illness or
incapacity, whether total or partial, to perform one or more primary duties of the Executive’s
employment with reasonable accommodation, Executive, at the request of Employer, shall submit to a
medical examination by a physician selected by Employer (the “Employer Physician”) to
determine whether the Executive is so disabled. In the event that the Executive disagrees with the
findings of the Employer Physician, Executive shall have the right to submit to a second medical
examination by a physician selected by the Executive (the “Executive Physician”). If the
Employer Physician’s and the Executive Physician’s findings agree with respect to Executive’s
disability status, such determination shall be binding on Employer and the Executive. If the
Employer Physician’s and the Executive Physician’s findings do not agree with respect to
Executive’s disability status, the Employer Physician and the Executive Physician shall together
designate a third physician to make the determination with respect to Executive’s disability status
and such determination shall be binding on the Employer and the Executive. The date of the
Executive’s Disability shall be the date on which a Physician (whether Employer, Executive or third
Physician) makes a final, binding determination of Executive’s disability.

          (b) By Employer . Employer may terminate the Executive’s employment under
this Agreement during the Employment Period for Cause or without Cause. “Cause” means:

                    (i) The Executive’s fraud, knowing violation of law, theft or embezzlement committed
with respect to Employer, its Affiliates or customers;

                    (ii) the continued failure by the Executive to perform his duties as contemplated by
this Agreement (other than any such failure resulting from his Disability or any such actual or
anticipated failure after the issuance by the Executive of a Notice of Termination for Good Reason)
over a period of not less than thirty (30) days; provided, however, that Employer may terminate the
Executive’s employment for “Cause” under this subdivision only if Employer has provided notice to
the Executive of his performance failures and such failures have not been cured by the Executive
within thirty (30) days of the receipt of notice by the Executive;

                    (iii) the willful or negligent misconduct of the Executive that is materially
injurious to Employer (including, without limitation, any breach by the Executive of Section
9 of this Agreement), and, in the case of negligent misconduct, such misconduct is not cured by
Executive within thirty (30) days of the receipt of notice by the Executive from Employer;

                    (iv) the Executive’s conviction of a misdemeanor which directly causes material harm
to Employer, which harm is not cured by the Executive within thirty (30) days of the receipt of
notice by the Executive from the Employer of such harm;

                    (v) the Executive’s conviction of a felony (including a felony constituting a crime
of moral turpitude);

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                    (vi) Executive’s material breach of this Agreement causing material harm to Employer
that is not cured within thirty (30) days of receipt of notice thereof (any breach by the Executive
of Section 11 of this Agreement shall be deemed a material breach); provided, that no
“cure” shall be deemed to have been effected unless both the breach and the harm have been cured;

                    (vii) the Executive’s breach of a fiduciary duty owed to Employer or its Affiliates;
or

                    (viii) the Executive’s willful failure to carry out any material directive of
Employer which does not require unlawful action nor breach this Agreement.

                    (ix) Provided, however, that the Executive shall be limited to one (1) cure during
any twelve (12) month period for all descriptions of cause and only for those causes where a cure
period is permitted.

          (c) A termination of Executive’s employment for Cause shall be effectuated by giving
the Executive written notice (“Notice of Termination for Cause”) of the termination,
setting forth in reasonable detail the specific conduct that constitutes Cause and the specific
provision(s) of this Agreement on which Employer relies. The Executive shall have thirty (30) days
to remedy the conduct set forth in the Notice of Termination for Cause. A termination of
Executive’s employment for Cause shall be effective on the thirtieth (30th) day
following the date when the Notice of Termination for Cause is given, unless the conduct set forth
in the notice is remedied by the Executive within the thirty (30) day period; provided, however,
that the Executive shall be able to cure such conduct only once within a twelve (12) month period.
A termination of Executive’s employment without Cause shall be effectuated by giving the Executive
written notice of the termination, which termination shall be effective on the thirtieth
(30th) day following the date when the Notice of Termination without Cause is given.

          (d) By the Executive. The Executive may terminate employment under this
Agreement for Good Reason or without Good Reason. “Good Reason” means:

                    (i) any reduction in the Executive’s base salary;

                    (ii) removal of the Executive from his position specified herein, except for “Cause”
as defined in paragraph (b) above;

                    (iii) any change in Executive’s reporting assignment such that he is no longer
reporting to Arcadia’s President/CEO, except such a change that is made by mutual agreement between
the Executive and Employer provided that Executive shall not unreasonably withhold his consent;

                    (iv) a material failure by Employer to comply with any provision of Sections
2 and 3 of this Agreement, other than (i) a purely monetary failure with respect to an
amount less than $5,000, (ii) a failure within Executive’s control or (iii) an isolated,
insubstantial or inadvertent failure that is not taken in bad faith and is remedied by Employer
within thirty (30) days after receipt of written notice thereof from the Executive;

                    (v) any action by Employer, except as required by law or applicable government
regulations, which is specific to the Executive that would or does adversely affect Executive’s
participation in bonus or incentive plans or the Other Benefits as described in Sections
3(b) and/or 3(c); and

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                    (vi) any failure by Employer to obtain from any successor in interest thereto assent
to the terms of this Agreement.

          (e) A termination of employment by the Executive for Good Reason shall be
effectuated by giving Employer written notice (“Notice of Termination for Good Reason”) of
the termination, setting forth in reasonable detail the specific conduct that constitutes Good
Reason and the specific provision(s) of this Agreement on which the Executive relies, must be given
within thirty (30) days of the date of the act or omission on which it is based or the date on
which Executive first knows or reasonably should have known of such act or omission, whichever is
later. Employer shall have thirty (30) days to remedy the conduct set forth in the Notice of
Termination for Good Reason. A termination of employment by the Executive for Good Reason shall be
effective on the thirtieth (30th) day following the date when the Notice of Termination
for Good Reason is given, unless the conduct set forth in the notice is remedied by Employer within
the thirty (30) day period; provided, however, that Employer shall be able to cure such conduct
only once within a twelve (12) month period.

          (f) A termination of the Executive’s employment by the Executive without Good Reason
shall be effected by giving Employer at least thirty (30) days’ advance written notice of the
termination.

          (g) Date of Termination. The “Date of Termination” means the date
of the Executive’s death, the date of the Executive’s Disability, the date the termination of the
Executive’s employment under this Agreement by Employer for Cause or without Cause or by the
Executive for Good Reason or without Good Reason, as the case may be, is effective. The Employment
Period shall end on the Date of Termination.

          (h) “Affiliate” of Employer means any person or entity directly or
indirectly controlling, controlled by, or under common control with, Arcadia. For purposes of this
definition, the terms “Control,” “Controlling,” and “Controlled” mean the right to elect a majority
of the members or the board of directors or other comparable body responsible for management and
direction of a person or entity by contract, by virtue of share ownership or otherwise.

     5. Obligations of Employer upon Termination.

          (a) [intentionally omitted and left blank]

          (b) Termination. If Employer terminates the Executive’s employment under
this Agreement (other than for Cause) or the Executive terminates employment under this Agreement
for Good Reason (any such termination of employment being a “Section 5(b) Termination”) and
provided the Executive continues to abide by the provisions of Section 9 of this Agreement:

                    (i) the Executive shall be entitled to a continued payment for six (6) months
following the Date of Termination (the “Severance Period”) of the Executive’s current base
salary (as in effect on the Date of Termination), payable in regular intervals, in accordance with
the regular payroll practices of Employer;

                    (ii) the Executive shall receive a pro rata portion of any bonus or incentive plan
amount for that portion of the year prior to the Date of Termination but only to the extent the
Executive’s performance measures are achieved at the end of the fiscal year. Pro rata bonuses
shall be paid within sixty (60) days of the end of the fiscal year. 

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                    (iii) if after the Date of Termination the Executive elects to receive continuation
coverage under Employer’s group health plans pursuant to the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”), the Executive shall be entitled to reimbursement from
the Employer for the COBRA premium costs of medical, prescription, dental and vision coverage, if
any, under Employer’s group health plans (as in effect from time to time) for the Executive and,
to the extent permitted under COBRA, the Executive’s spouse and eligible dependents, such
reimbursement not to exceed the COBRA rates for such coverage and, unless terminated sooner as
described below, such reimbursement to continue for six (6) months after the Date of Termination;
provided, however, that the Executive shall be required to submit to Employer reasonable evidence
of payment by the Executive of any such COBRA premiums in order to obtain reimbursement from
Employer and that the Executive may not submit any requests for reimbursement of such payments more
than once per calendar month; provided, further, that Employer, in its sole discretion, may elect
for the first two (2) calendar months (or portions thereof) of the Severance Period, as applicable,
to remit any such payments directly on behalf of the Executive rather than requiring the Executive
to remit such payments and seek reimbursement therefore from Employer; provided, further, that the
obligations of Employer to reimburse any such payments shall terminate on the date of occurrence
of the first to occur of any of the following, if any of the following should occur prior to the
end of the Severance Period: (i) the date of commencement of eligibility of the Executive under the
group health plan of any other employer or (ii) the date of commencement of eligibility of the
Executive for Medicare benefits under Title XVIII of the Social Security Act (“Medicare
Benefits”); and provided, further, that the Executive nevertheless shall be entitled to elect
COBRA continuation coverage without reimbursement under Employer’s group health plans at the
applicable COBRA premium rates through the date that is eighteen (18) months after the Date of
Termination or, if earlier, the date that the Executive becomes covered under the group health plan
of another employer or becomes eligible for Medicare Benefits, if the obligations of Employer to
reimburse the Executive for COBRA premiums for continuation coverage under Employer’s group health
plans should terminate prior to such date. Notwithstanding anything to the contrary set forth
above, Employer, in its sole discretion, may discontinue any coverage contemplated hereunder in the
event that such continuation is not permitted under or would adversely affect the tax status of the
plan or plans of Employer pursuant to which the coverage is provided, in which case Employer
shall make supplemental severance payments to the Executive in monthly amounts equal to the amounts
to which the Executive otherwise would have been entitled to reimbursement hereunder in respect of
such coverage for the remainder of the period that Employer otherwise would have been obligated to
make reimbursements hereunder to the Executive. Any amounts that are reimbursed to the Executive
by Employer or paid directly to the Executive as supplemental severance payments will be considered
taxable income to the Executive and any taxes on such amounts will be the Executive’s
responsibility and subject to applicable tax withholding.

                    (iv) Employer shall also pay, or cause to be paid, to the Executive, in a lump sum
in cash within thirty (30) days after the Date of Termination certain of Executive’s accrued but
unpaid cash compensation (the “Accrued Obligations”), which shall include but not be
limited to the Executive’s base salary through the Date of Termination that has not yet been paid,
any accrued but unpaid vacation pay, and similar unpaid items that have accrued and as to which the
Executive has become entitled as of the Date of Termination, including declared but unpaid bonuses
and unreimbursed employee business expenses.

          (c) Death or Disability. If the Executive’s employment is terminated by
reason of the Executive’s death or Disability during the Employment Period, Employer shall pay the
Accrued Obligations to the Executive or the Executive’s estate or legal representative, as
applicable, in a lump sum in cash within thirty (30) days after the Date of Termination. In
addition, Employer shall pay a pro-rata portion of the Executive’s bonus to Executive or his estate
or legal representative, determined and paid in the manner set forth in subparagraph
5(b)(ii) above. Pro rata bonuses shall be paid within sixty (60) days

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of the end of the fiscal year for that portion of the year prior to the Date of Termination
but only to the extent the Executive’s performance measures are achieved at the end of the fiscal
year. In such event, except as may be required by law, Employer shall have no further obligations
under this Agreement or otherwise to or with respect to the Executive other than for any
entitlements under the terms of any other plans or programs of Employer in which the Executive
participated and under which the Executive has become entitled to a benefit.

          (d) By Employer for Cause; By the Executive Other than for Good Reason. If
the Executive’s employment is terminated by Employer for Cause or the Executive voluntarily
terminates his employment other than for Good Reason, Employer shall pay the Executive, or shall
cause the Executive to be paid, the Executive’s base salary through the Date of Termination that
has not been paid and the amount of any declared but unpaid bonuses, accrued but unpaid vacation
pay, and unreimbursed employee business expenses, and Employer shall have no further obligations
under this Agreement or otherwise to or with respect to the Executive other than for any
entitlements under the terms of any other plans or programs of Employer in which the Executive
participated and under which the Executive has become entitled to a benefit or as otherwise
required by law.

     6. Tax Treatment. It is the intention of the parties that payments to be
made to the Executive whether under the terms of this Agreement or otherwise shall not constitute
“excess parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986
(as amended from time to time) (the “Code) and any regulations thereunder. If the
independent accountants serving as auditors for Employer on the date of this Agreement (or any
other independent certified public accounting firm designated by Employer ) determine that any
payment or distribution by Employer to or for the benefit of the Executive (whether paid or
payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) would
be nondeductible by Employer under Section 280G of the Code (or any successor provision), then the
amounts payable or distributable under this Agreement will be reduced to the maximum amount which
may be paid or distributed without causing such payments or distributions to be nondeductible. The
determination shall take into account (a) whether the payments or distributions are “parachute
payments” under Section 280G, (b) the amount of payments and distributions under this Agreement
that constitute reasonable compensation, and (c) the present value of such payments and
distributions determined in accordance with Treasury Regulations in effect from time to time. The
Executive shall have the right to designate which payments or distributions will be reduced.

     7. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or
limit the Executive’s continuing or future participation in any plan, program, policy or practice
provided by Employer for which the Executive may qualify. Vested benefits and other amounts that
the Executive is otherwise entitled to receive on or after the Date of Termination under any plan,
policy, practice or program of, or any contract or agreement with, Employer shall be payable in
accordance with such plan, policy, practice, program, contract or agreement, as the case may be,
except as explicitly modified by this Agreement.

     8. Mitigation. In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable to the Executive
under any of the provisions of this Agreement. Notwithstanding this Section 8, the
Executive shall continue to be subject to all of the restrictions provided for in Section 9
of this Agreement during the Severance Period.

     9. Confidential Information; Non-solicitation; Non-competition; Conflict of
Interest.

          (a) The Executive agrees and acknowledges that by reason of his employment by and
service to Employer, he will have access to, become exposed to and/or become knowledgeable about
confidential information of Employer and its Affiliates (the “Confidential Information”)
from time to

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time during the Employment Period, including, without limitation, proposals, plans,
inventions, practices, systems, programs, processes, methods, techniques, research, records,
supplier sources, customer lists and other forms of business information that are not known to
Employer’s competitors, are not recognized as being encompassed within standard business or
management practices and/or are kept secret and confidential by Employer or its Affiliates.
Executive agrees that at no time during or after the Employment Period will he disclose or use the
Confidential Information except as may be required in the prudent course of business for the
benefit of Employer or its Affiliates, or as may be required by law or in a legal proceeding.

          (b) The Executive acknowledges that Employer’s business plan is to engage in
business throughout the United States. During the Executive’s employment by Employer and for the
duration of the Restricted Period (defined below), the Executive agrees that he will not, unless
acting with the prior written consent of Employer, directly or indirectly, own, manage, control, or
participate in the ownership, management or control of, be financially interested in, or be
employed or engaged by, or otherwise affiliated or associated with, as an officer, director,
employee, consultant, independent contractor or otherwise, any other corporation, partnership,
proprietorship, firm, association or other business entity, which is engaged in the management,
ownership or operation of any business that, as of the Date of Termination, is engaged in by
Employer or its Affiliates in the United States, has been reviewed by or with Arcadia’s senior
management or the Board of Directors of Arcadia for development to be owned or managed by Employer
or its Affiliates, within nine (9) months of the Date of Termination, and/or has been divested by
Employer or its Affiliates but as to which Employer or its Affiliates have an obligation to refrain
from involvement for so long as such restriction applies to Employer; provided, however, that the
ownership of not more than 5% of the equity of a publicly traded entity shall not be deemed to be a
violation of this paragraph.

          (c) The Executive also agrees that he will not, directly or indirectly, during the
Restricted Period induce any person who is an employee, officer, director, or agent of Employer or
its Affiliates, to terminate such relationship, or employ, assist in employing or otherwise be
associated in business with any present or former employee or officer of Employer or its
Affiliates, including without limitation those who commence such positions with Employer or its
Affiliates after the Date of Termination.

          (d) During the Restricted Period, the Executive shall not attempt in any manner to
contact or solicit any individual, firm, corporation or other entity (i) that is or has been, a
customer, supplier or vendor of Employer or its Affiliates at any time during the Restricted
Period, (ii) to which a proposal has been made by Employer or its Affiliates during the Restricted
Period or (iii) to which Employer or its Affiliates has made a proposal during the nine (9) months
preceding the Date of Termination, for the purpose of implementing or providing services or
products similar to the services and products provided by Employer or its Affiliates at the Date of
Termination. In addition, during the Restricted Period, the Executive shall not persuade or attempt
to persuade any customer, supplier, vendor, licensor or other entity or individual doing business
with Employer or its Affiliates to discontinue or reduce its business with Employer or its
Affiliates or otherwise interfere in any way with the business relationships and activities of
Employer.

          (e) The Executive acknowledges and agrees that the restrictions contained in this
Section 9 are reasonable and necessary to protect and preserve the legitimate interests,
properties, goodwill and business of Employer and its Affiliates, that Employer would not have
entered into this Agreement in the absence of such restrictions and that irreparable injury will be
suffered by Employer and its Affiliates should the Executive breach the provisions of this Section.
The Executive represents and acknowledges that (i) the Executive has been advised by Employer to
consult the Executive’s own legal counsel in respect of this Agreement, (ii) the Executive has
consulted with and been advised by his own

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counsel in respect of this Agreement, and (iii) the Executive has had full opportunity, prior
to execution of this Agreement, to review thoroughly this Agreement with the Executive’s counsel.

          (f) The Executive further acknowledges and agrees that a breach of the restrictions
in this Section 9 may not be adequately compensated by monetary damages. The Executive
agrees that actual damage may be difficult to ascertain and that, in the event of any such breach,
Employer may be entitled to injunctive relief in addition to such other legal or equitable
remedies as may be available to Employer. In the event that the provisions of this Section
9 should ever be adjudicated to exceed the limitations permitted by applicable law in any
jurisdiction, it is the intention of the parties that the provision shall be amended such that
those provisions are made consistent with the maximum limitations permitted by applicable law, that
such amendment shall apply only within the jurisdiction of the court that made such adjudication
and that those provisions otherwise be enforced to the maximum extent permitted by law.

          (g) [intentionally omitted and left blank]

          (h) For purposes of this Section 9, the term “Restricted Period”
following the Date of Termination means a period of one (1) year following the Date of Termination,
irrespective of whether Employer terminates the Executive’s employment with or without Cause, or if
the Executive resigns or terminates his employment with Good Reason, or if employment terminates
due to death or disability.

          (i) All Confidential Information; all innovations, inventions and discoveries of
Employer; and all correspondence, files, documents, advertising, sales, manufacturers’ and other
materials or articles or other information of any kind, in any media, form or format, whether or
not deemed confidential, shall be and remain the sole property of Employer (“Employer
Property”). Upon termination or at Employer’s request, whichever is earlier, Executive shall
immediately deliver to Employer all such Employer Property.

          (j) If, contrary to the effort and intent of the parties, any covenant or other
obligation contained in this Section 9 shall be found not to be reasonably necessary for
the protection of, to be unreasonable as to duration, scope or nature of restrictions, or to impose
an undue hardship on Executive, then it is the desire of the parties that such covenant or
obligation not be rendered invalid thereby, but rather that the duration, scope or nature of the
restrictions be deemed reduced or modified, with retroactive effect, to render such covenant or
obligation reasonable, valid and enforceable. The parties further agree that in the event a court,
despite the efforts and intent of the parties, declares any portion of the covenants or obligations
in this Section 9 invalid, the remaining provisions of this Section 9 shall
nonetheless remain valid and enforceable.

     10. Governing Law and Arbitration. This Agreement and all disputes arising
out of Executive’s employment hereunder shall be governed by and construed in accordance with the
laws of the State of Indiana without reference to principles of conflict of laws, notwithstanding
that Employer and Executive are or may hereafter become domiciled or located in a different state.
Any dispute, controversy or claim arising out of or relating to this Agreement or Executive’s
employment, whether arising in contract, tort or otherwise, including all claims assertable under
any federal or state law prohibiting discrimination in employment, shall be resolved at arbitration
in accordance with the rules of the American Arbitration Association, except for any equitable or
injunctive relief sought by Employer under this Agreement. The arbitration shall be held at a
location within Marion County, Indiana. The parties hereto agree that any arbitration award
rendered on any claim submitted to arbitration shall be final and binding upon the parties, and
that judgment may be entered upon any arbitration award by any court of competent jurisdiction.
The parties hereto agree that the expenses of any arbitration shall be borne equally by the parties
to the proceeding, except that the party determined to have prevailed in any

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arbitration or civil action shall be awarded its reasonable attorneys fees and costs of its
own experts, evidence and the like. The parties hereto acknowledge and agree that by making this
agreement to submit all claims to binding arbitration, they are waiving the right to litigate in a
court of law, and to trial by jury if applicable, all claims, including all claims assertable under
any federal or state law prohibiting discrimination in employment.

     11. Successors.

          (a) This Agreement is personal to the Executive and, without the prior written
consent of Employer, shall not be assignable by the Executive otherwise than by will or the laws of
descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the
Executive’s legal representatives.

          (b) This Agreement shall inure to the benefit of and be binding upon the Employer
and its successors and assigns.

          (c) The Employer shall 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 the Employer expressly to assume and agree to perform this Agreement in the same manner
and to the same extent that the Employer would have been required to perform it if no such
succession had taken place. As used in this Agreement, “Employer” shall mean both Arcadia as
defined above and any such successor that assumes and agrees to perform this Agreement, by
operation of law or otherwise.

     12. Miscellaneous.

          (a) The captions of this Agreement are not part of the provisions hereof and shall
have no force or effect. This Agreement may not be amended or modified except by a written
agreement executed by the parties hereto or their respective successors and legal representatives.
This Agreement supersedes all prior agreements between Employer and Executive with respect to its
subject matter and constitutes (along with any documents referred to in this Agreement) a complete
and exclusive statement of the terms of the Agreement between Employer and Executive with respect
to its subject matter.

          (b) All notices and other communications under this Agreement shall be in writing
and shall be given by hand to the other party or by registered or certified mail, return receipt
requested, postage prepaid, or by facsimile or overnight courier, addressed as follows:

If to the Executive:

Matthew R. Middendorf

1702 Dormont Lane

Orlando, FL 32804

If to the Employer: 

Arcadia Resources, Inc.

9229 Delegates Row, Suite 260

Indianapolis, IN 46240

Attn: President and CEO

Page 10 of 12

 

or to such other address as either party furnishes to the other in writing in accordance with this
paragraph (b) of this Section. Notices and communications shall be effective when given in
the manner described above.

          (c) The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement. If any provision
of this Agreement shall be held invalid or unenforceable in part, the remaining portion of such
provision, together with all other provisions of this Agreement, shall remain valid and enforceable
and continue in full force and effect to the fullest extent consistent with law.

          (d) Notwithstanding any other provision of this Agreement, Employer may withhold
from amounts payable under this Agreement all federal, state, local and foreign taxes that are
required to be withheld by applicable laws or regulations.

          (e) The Executive’s or Employer’s failure to insist upon strict compliance with any
provision of, or to assert any right under, this Agreement (including, without limitation, the
right of the Executive to terminate employment for Good Reason pursuant to paragraph (c) of
Section 5 of this Agreement) shall not be deemed to be a waiver of such provision or right
or of any other provision of or right under this Agreement.

          (f) This Agreement may be executed in several counterparts, each of which shall be
deemed an original, and said counterparts shall constitute but one and the same instrument.

     13. The respective rights and obligations of the parties hereunder shall survive any
termination of the Executive’s employment to the extent necessary to the intended preservation of
such rights and obligations, including, but not by way of limitation, those rights and obligations
set forth in Sections 3, 5, 6, 8 and 9.

[Signature Page Follows]

Page 11 of 12

 

     IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization of the Board of Directors, Employer has caused this Agreement to be executed in its
name and on its behalf, all as of the day and year first above written.

ARCADIA RESOURCES, INC.

By: /s/ Marvin R. Richardson

Name: Marvin Richardson

Title: President and Chief Executive Officer

EXECUTIVE

/s/ Matthew R. Middendorf

Matthew R. Middendorf

Page 12 of 12exv10w1

 

Exhibit 10.1

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT dated as of February 8, 2008
(the “Amendment”) is entered into among Teledyne Technologies Incorporated, a Delaware
corporation (the “Borrower”), the Guarantors, the Lenders party hereto and Bank of America,
N.A., as Administrative Agent, L/C Issuer and Swing Line Lender. All capitalized terms used herein
and not otherwise defined herein shall have the meanings given to such terms in the Credit
Agreement (as defined below).

RECITALS

     WHEREAS, the Borrower, the Guarantors, the Lenders and the Administrative Agent entered into
that certain Amended and Restated Credit Agreement dated as of July 14, 2006 (the “Credit
Agreement”); and

     WHEREAS, the Borrower has requested that the Lenders amend the Credit Agreement as set forth
below;

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

     1. Amendments. The Credit Agreement is hereby amended as follows:

     (a) The following definition is hereby added to Section 1.01 of the Credit
Agreement in the appropriate alphabetical order to read as follows:

“First Amendment Effective Date” means February 8, 2008.

     (b) The definition of “Administrative Agent Fee Letter” in Section 1.01
of the Credit Agreement is hereby amended to read as follows:

“Administrative Agent Fee Letter” means the letter agreement dated June
9, 2006 among the Borrower, the Administrative Agent and BAS, as amended or modified
in writing from time to time.

     (c) The definition of “Aggregate Revolving Commitments” in Section 1.01
of the Credit Agreement is hereby amended to read as follows:

“Aggregate Revolving Commitments” means the Revolving Commitments of
all the Lenders. The amount of the Aggregate Revolving Commitments in effect on the
First Amendment Effective Date is FIVE HUNDRED NINETY MILLION DOLLARS
($590,000,000).

     (d) The language following the grid and preceding the proviso in the definition of
“Applicable Rate” in Section 1.01 of the Credit Agreement is hereby amended
to read as follows:

Any increase or decrease in the Applicable Rate resulting from a change in the
Consolidated Leverage Ratio shall become effective as of the earlier to occur of (a)
the first Business Day immediately following the delivery of a Compliance
Certificate

 

 

pursuant to Section 7.02(a) and (b) the first Business Day immediately
following the date a Compliance Certificate is required to be delivered pursuant to
Section 7.02(a);

     (e) The language preceding the proviso in Section 2.02(f) of the Credit
Agreement is hereby amended to read as follows:

     (f) The Borrower may at any time and from time to time, upon prior written
notice by the Borrower to the Administrative Agent, increase the Aggregate Revolving
Commitments by up to ONE HUNDRED MILLION DOLLARS ($100,000,000) with additional
Revolving Commitments from any existing Lender or new Revolving Commitments from any
other Person selected by the Borrower and approved by the Administrative Agent (not
to be unreasonably withheld);

     (f) Schedule 2.01 of the Credit Agreement is hereby amended to read as provided on
Schedule 2.01 attached hereto.

     2. Conditions Precedent. This Amendment shall be effective upon satisfaction of the
following conditions precedent:

     (a) Receipt by the Administrative Agent of counterparts of this Amendment duly executed
by the Borrower, the Guarantors, the Required Lenders, any Lender increasing its Revolving
Commitment as of the First Amendment Effective Date and Bank of America, N.A., as
Administrative Agent, L/C Issuer and Swing Line Lender;

     (b) Receipt by the Administrative Agent of a certificate of a Responsible Officer of
each Loan Party, in form and substance reasonably satisfactory to the Administrative Agent,
(i) certifying that the Organizational Documents of each Loan Party have not been amended,
supplemented or otherwise modified since the date such Organizational Documents were first
delivered to the Administrative Agent pursuant to the terms of the Credit Agreement, and
remain in full force and effect as of the First Amendment Effective Date and (ii) attaching
resolutions of each Loan Party approving and adopting this Amendment and authorizing the
execution and delivery of this Amendment and any documents, agreements or certificates
related thereto and certifying that such resolutions have not been amended, supplemented or
otherwise modified and remain in full force and effect as of the First Amendment Effective
Date;

     (c) Receipt by the Administrative Agent of favorable opinions of in-house legal counsel
of the Borrower, addressed to the Administrative Agent and each Lender, dated as of the
First Amendment Effective Date, in form and substance satisfactory to the Administrative
Agent; and

     (d) Receipt by the Administrative Agent of any fees and expenses payable in connection
with this Amendment; including on behalf of each Lender that is increasing its Revolving
Commitment as of the First Amendment Effective Date, a fee of 0.15% on the amount of such
increase in the Revolving Commitment of each such Lender.

     3. Miscellaneous.

     (a) The Credit Agreement, and the obligations of the Loan Parties thereunder and under
the other Loan Documents, are hereby ratified and confirmed and shall remain in full force
and effect according to their terms.

2

 

     (b) Each Guarantor (a) acknowledges and consents to all of the terms and conditions of
this Amendment, (b) affirms all of its obligations under the Loan Documents and (c) agrees
that this Amendment and all documents executed in connection herewith do not operate to
reduce or discharge its obligations under the Credit Agreement or the Loan Documents.

     (c) Each Loan Party hereby represents and warrants as follows:

     (i) Each Loan Party has taken all necessary corporate or limited liability
company action to authorize the execution, delivery and performance of this
Amendment.

     (ii) This Amendment has been duly executed and delivered by the Loan Parties
and constitutes each of the Loan Parties’ legal, valid and binding obligations,
enforceable in accordance with its terms, except as such enforceability may be
limited by Debtor Relief Laws and general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

     (iii) No consent, approval, authorization or order of, or filing, registration
or qualification with, any Governmental Authority or any other Person with respect
to any Contractual Obligation is required in connection with the execution, delivery
or performance by any Loan Party of this Amendment other than those that have
already been obtained and are in full force and effect or the failure of which to
have obtained would not reasonably be expected to have a Material Adverse Effect.

     (d) The Loan Parties represent and warrant to the Lenders that (i) the representations
and warranties of the Loan Parties set forth in Article VI of the Credit Agreement and in
each other Loan Document are true and correct in all material respects as of the date
hereof, except to the extent such representations and warranties specifically refer to an
earlier date, in which case they shall be true and correct in all material respects as of
such earlier date and (ii) no event has occurred and is continuing which constitutes a
Default or an Event of Default.

     (e) This Amendment may be executed in any number of counterparts, each of which when so
executed and delivered shall be an original, but all of which shall constitute one and the
same instrument. Delivery of an executed counterpart of this Amendment by telecopy shall be
effective as an original and shall constitute a representation that an executed original
shall be delivered.

     (f) From and after the First Amendment Effective Date, by execution of this Amendment,
each Person identified as a “Lender” on the signature pages hereto that is not already a
Lender under the Credit Agreement hereby acknowledges, agrees and confirms that, by its
execution of this Amendment, such Person will be deemed to be a party to the Credit
Agreement as amended hereby and a “Lender” for all purposes of the Credit Agreement as
amended hereby, and shall have all of the obligations of a Lender thereunder as if it had
executed the Credit Agreement, as amended hereby. Such Person hereby ratifies, as of the
date hereof, and agrees to be bound by, all of the terms, provisions and conditions
applicable to the Lenders contained in the Credit Agreement, as amended hereby.

     (g) THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK.

3

 

[remainder of page intentionally left blank]

4

 

     Each of the parties hereto has caused a counterpart of this Amendment to be duly executed and
delivered as of the date first above written.

	 	 	 	 	 
	BORROWER:  	TELEDYNE TECHNOLOGIES INCORPORATED,

a Delaware corporation

 	 
	 	By:  	/s/ Dale A. Schnittjer
 	 
	 	 	Name:  	Dale A. Schnittjer 	 
	 	 	Title:  	Senior Vice President and Chief Financial Officer 	 
	 
	GUARANTORS:  	TELEDYNE BROWN ENGINEERING, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Melanie S. Cibik
 	 
	 	 	Name:  	Melanie S. Cibik 	 
	 	 	Title:  	Vice President and Secretary 	 
	 
	 	TELEDYNE CONTINENTAL MOTORS, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Dale A. Schnittjer
 	 
	 	 	Name:  	Dale A. Schnittjer 	 
	 	 	Title:  	Senior Vice President and Chief Financial Officer 	 
	 
	 	TELEDYNE INSTRUMENTS, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Dale A. Schnittjer
 	 
	 	 	Name:  	Dale A. Schnittjer 	 
	 	 	Title:  	Senior Vice President and Chief Financial Officer 	 
	 
	 	TELEDYNE ISCO, INC.,

a Nebraska corporation

 	 
	 	By:  	/s/ Melanie S. Cibik
 	 
	 	 	Name:  	Melanie S. Cibik 	 
	 	 	Title:  	Vice President and Assistant Secretary 	 
	 
	 	TELEDYNE WIRELESS, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Dale A. Schnittjer
 	 
	 	 	Name:  	Dale A. Schnittjer 	 
	 	 	Title:  	Senior Vice President and Chief Financial Officer 	 
	 
	 	TELEDYNE SCIENTIFIC & IMAGING, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Melanie S. Cibik
 	 
	 	 	Name:  	Melanie S. Cibik 	 
	 	 	Title:  	Vice President and Assistant Secretary 	 

 
FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

TELEDYNE TECHNOLOGIES INCORPORATED

 

 

	 	 	 	 	 
	ADMINISTRATIVE AGENT: 	
 BANK OF AMERICA, N.A.,

as Administrative Agent

 	 
	 	By:  	/s/ Tiffany Shin
 	 
	 	 	Name:  	Tiffany Shin 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	LENDERS: 	 BANK OF AMERICA, N.A.,

as a Lender, L/C Issuer and Swing Line Lender

 	 
	 	By:  	/s/ Robert W. Troutman
 	 
	 	 	Name:  	Robert W. Troutman 	 
	 	 	Title:  	Managing Director 	 
	 
	 	THE BANK OF NEW YORK,

 	 
	 	By:  	/s/ Kim A Daffinger
 	 
	 	 	Name:  	Kim A Daffinger 	 
	 	 	Title:  	Vice President
 	 
	 
	 	THE BANK OF TOKYO-MITSUBISHI

UFJ, LTD.,

 	 
	 	By:  	/s/ Victor Pierzchalski
 	 
	 	 	Name:  	Victor Pierzchalski 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	SUNTRUST BANK,

 	 
	 	By:  	
/s/ Baerbel Freudenthal	 
	 	 	Name:  	Baerbel Freudenthal	 
	 	 	Title:  	Vice President	 
	 
	 	JPMORGAN CHASE BANK, N.A.,

 	 
	 	By:  	/s/ Camille Farnsworth
 	 
	 	 	Name:  	Camille Farnsworth 	 
	 	 	Title:  	Vice President 	 
	 
	 	MELLON BANK, N.A.,

 	 
	 	By:  	/s/ Kim A. Daffinger
 	 
	 	 	Name:  	Kim A. Daffinger 	 
	 	 	Title:  	First Vice President 	 

 
FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

TELEDYNE TECHNOLOGIES INCORPORATED

 

 

	 	 	 	 	 
	 	COMERICA WEST INCORPORATED,

 	 
	 	By:  	/s/ Elise M. Walker
 	 
	 	 	Name:  	Elise M. Walker 	 
	 	 	Title:  	Vice President 	 
	 
	 	COMMERZBANK AG, NEW YORK

AND GRAND CAYMAN BRANCHES,

 	 
	 	By:  	/s/ Christian Jagenberg
 	 
	 	 	Name:  	Christian Jagenberg 	 
	 	 	Title:  	SVP & Manager 	 
	 
	 	 	 
	 	By:  	                            /s/s Mathew Havens
 	 
	 	 	Name:  	Mathew Havens 	 
	 	 	Title:  	Assistant Treasurer 	 
	 
	 	WELLS FARGO BANK, N.A.,

 	 
	 	By:  	/s/ Ling Li
 	 
	 	 	Name:  	Ling Li 	 
	 	 	Title:  	Vice President 	 
	 
	 	BANK OF THE WEST,

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION,

 	 
	 	By:  	/s/ Brandon R. Zabrocki
 	 
	 	 	Name  Brandon R. Zabrocki: 	 
	 	 	Title:  	Vice President 	 
	 
	 	THE NORTHERN TRUST COMPANY,

 	 
	 	By:  	/s/ Christopher Mata
 	 
	 	 	Name:  	Christopher Mata 	 
	 	 	Title:  	Officer 	 
	 
	 	KEYBANK NATIONAL ASSOCIATION,

 	 
	 	By:  	/s/  Thomas J. Purcell
 	 
	 	 	Name:  	Thomas J. Purcell 	 
	 	 	Title:  	Senior Vice President 	 

 
FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

TELEDYNE TECHNOLOGIES INCORPORATED

 

 

	 	 	 	 	 
	 	SOCIÉTÉ GÉNÉRALE,

 	 
	 	By:  	/s/ R.D. Boyd Harman
 	 
	 	 	Name:  	R.D. Boyd Harman 	 
	 	 	Title:  	Vice President 	 
	 

 
FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

TELEDYNE TECHNOLOGIES INCORPORATED

 

 

SCHEDULE 2.01

COMMITMENTS AND APPLICABLE PERCENTAGES

	 	 	 	 	 	 	 	 	 
	Lender	 	Revolving
 Commitment	 	 	Applicable
 Percentage	 
	Bank of America, N.A.
	 	$	80,000,000	 	 	 	13.559322034	%
	JP Morgan Chase Bank, N.A.
	 	$	75,000,000	 	 	 	12.711864407	%
	The Bank of Tokyo-Mitsubishi
UFJ, Ltd.
	 	$	75,000,000	 	 	 	12.711864407	%
	Bank of New York
	 	$	45,000,000	 	 	 	7.627118644	%
	Mellon Bank, N.A.
	 	$	45,000,000	 	 	 	7.627118644	%
	SunTrust Bank
	 	$	45,000,000	 	 	 	7.627118644	%
	Comerica West Incorporated
	 	$	35,000,000	 	 	 	5.932203390	%
	Commerzbank AG,
New York and Grand Cayman Branches
	 	$	35,000,000	 	 	 	5.932203390	%
	U.S. Bank National Association
	 	$	35,000,000	 	 	 	5.932203390	%
	Wells Fargo Bank, N.A.
	 	$	30,000,000	 	 	 	5.084745763	%
	Societe Generale
	 	$	30,000,000	 	 	 	5.084745763	%
	Bank of the West
	 	$	25,000,000	 	 	 	4.237288136	%
	KeyBank National Association
	 	$	20,000,000	 	 	 	3.389830508	%
	The Northern Trust Company
	 	$	15,000,000	 	 	 	2.542372881	%
	 
	 	 	 	 	 	 
	 
	Total
	 	$	590,000,000	 	 	 	100.000000000	%

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