Document:

INDEMNIFICATION AGREEMENT

  
 EXHIBIT 10.1 – INDEMNIFICATION AGREEMENT BETWEEN THE COMPANY AND PAUL W. CHISHOLM

  
 INDEMNIFICATION AGREEMENT 
  
 This Agreement is made as of the 15th day of October 2002, by and between Sycamore Networks, Inc., a Delaware corporation (the “Corporation), and Paul Chisholm (“Indemnitee”), a director
or officer of the Corporation. 
  
 WHEREAS, it is essential to the Corporation to retain and attract as directors and
officers the most capable persons available, and 
  
 WHEREAS, the substantial increase in corporate litigation
subjects directors and officers to expensive litigation risks at the same time that the availability of directors’ and officers’ liability insurance has been severely limited, and 
  
 WHEREAS, it is now and has always been the express policy of the Corporation to indemnify its directors and officers so as to provide them with the maximum possible
protection permitted by law, and 
  
 WHEREAS, Indemnitee does not regard the protection available under the
Corporation’s Amended and Restated Certificate of Incorporation and insurance as adequate in the present circumstances, and may not be willing to serve as a director or officer without adequate protection, and 
  
 WHEREAS, the Corporation desires Indemnitee to serve as a director or officer of the Corporation. 
  
 NOW THEREFORE, the Corporation and Indemnitee do hereby agree as follows: 
  
 1. Agreement to Serve. Indemnitee agrees to serve or continue to serve as a director or officer of the Corporation for so long as he is duly elected or appointed or
until such time as he tenders his resignation in writing 
  
 2. Definitions. As used in this Agreement:

  
 (a) The term “Proceeding” shall include any threatened, pending or completed action, suit, or
proceeding, whether brought by or in the right of the Corporation or otherwise and whether of a civil, criminal, administrative or investigative nature, and any appeal therefrom. 
  
 (b) The term “Corporate Status” shall mean the status of a person who is or was a director or officer of the Corporation, or is or was serving, or has agreed to
serve, at the request of the Corporation, as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise. 
  
 (c) The term “Expenses” shall include, without limitation, attorneys’ fees, retainers, court costs, transcript costs, fees of experts, travel expenses,
duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and other disbursements or expenses of the types customarily incurred in connection with investigations, judicial or administrative proceedings or
appeals, but shall not include the amount of judgments, fines or penalties against Indemnitee or amounts paid in settlement in connection with such matters. 
  
 (d) References to “other enterprise” shall include employee benefit plans; references to “fines” shall include any excise tax assessed with respect to any employee benefit plan;
references to “serving at the request of the Corporation” shall include any service as a director, officer, employee or agent of the Corporation which imposes duties on, or involves services by, such director, officer, employee, or agent
with respect to an employee benefit plan, its participants, or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the interests of the participants and beneficiaries of an employee benefit plan shall
be 

 
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deemed to have acted in a manner “not opposed to the best interests of the Corporation” as referred to in this Agreement. 
  
 3. Indemnification in Third-Party Proceedings. The Corporation shall indemnify Indemnitee in accordance with the provisions of this Paragraph 3 if Indemnitee was or
is a party to or threatened to be made a party to or otherwise involved in any Proceeding including without limitation any Proceeding currently pending against the Corporation and/or any of its directors (other than a Proceeding by or in the right
of the Corporation to procure a judgment in its favor) by reason of his Corporate Status or by reason of any action alleged to have been taken or omitted in connection therewith, against all Expenses, judgments, fines, penalties and amounts paid in
settlement actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding, if Indemnitee acted in good faith and in a manner which he reasonably believed to be in, or not opposed to, the best interests of the
Corporation and, with respect to of any criminal Proceeding, had no reasonable cause to believe that his conduct was unlawful. The termination of any Proceeding by judgment, order, settlement, conviction or upon a plea of nolo
contendere, or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in, or not opposed to, the best interests of the Corporation, and, with
respect to any criminal Proceeding, had reasonable cause to believe that his conduct was unlawful. 
  
 4.
Indemnification in Proceedings by or in the Right of the Corporation. The Corporation shall indemnify Indemnitee in accordance with the provisions of this Paragraph 4 if Indemnitee is a party to or threatened to be made a party to or
otherwise involved in any Proceeding by or in the right of the Corporation to procure a judgment in its favor by reason of his Corporate Status or by reason of any action alleged to have been taken or omitted in connection therewith, against all
Expenses and, to the extent permitted by law, amounts paid in settlement actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding, if he acted in good faith and in a manner which he reasonably believed to be
in, or not opposed to, the best interests of the Corporation, except that no indemnification shall be made under this Paragraph 4 in respect of any claim, issue, or matter as to which Indemnitee shall have been adjudged to be liable to the
Corporation, unless and only to the extent that the Court of Chancery of Delaware shall determine upon application that, despite the adjudication of such liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably
entitled to indemnity for such Expenses as the Court of Chancery shall deem proper. 
  
 5. Exceptions to Right of
Indemnification. Notwithstanding anything to the contrary in this Agreement, except as set forth in Paragraph 10, the Corporation shall not indemnify the Indemnitee in connection with a Proceeding (or part thereof) initiated by the Indemnitee
unless the initiation thereof was approved by the Board of Directors of the Corporation. Notwithstanding anything to the contrary in this Agreement, the Corporation shall not indemnify the Indemnitee to the extent the Indemnitee is reimbursed from
the proceeds of insurance, and in the event the Corporation makes any indemnification payments to the Indemnitee and the Indemnitee is subsequently reimbursed from the proceeds of insurance, the Indemnitee shall promptly refund such indemnification
payments to the Corporation to the extent of such insurance reimbursement. 
  
 6. Indemnification of Expenses of
Successful Party. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful, on the merits or otherwise, in defense of any Proceeding or in defense of any claim, issue or matter therein, Indemnitee
shall be indemnified against all Expenses incurred by him or on his behalf in connection therewith. Without limiting the foregoing, if any Proceeding or any claim, issue or matter therein is disposed of, on the merits or otherwise (including a
disposition without prejudice), without (i) the disposition being adverse to the Indemnitee, (ii) an adjudication that the Indemnitee was liable to the Corporation, (iii) a plea of guilty or nolo contendere by the Indemnitee, (iv) an adjudication
that the Indemnitee did not act in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Corporation, and (v) with respect to any criminal proceeding, an adjudication that the Indemnitee had
reasonable cause to believe his conduct was unlawful, the Indemnitee shall be considered for the purposes hereof to have been wholly successful with respect thereto. 
  
 7. Notification and Defense of Claim. As a condition precedent to his right to be indemnified, the Indemnitee must notify the Corporation in writing as soon as
practicable of any Proceeding for which indemnity will 

 
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or could be sought by him and provide the Corporation with a copy of any summons, citation, subpoena, complaint, indictment, information or other document relating to such Proceeding with which
he is served. With respect to any Proceeding of which the Corporation is so notified, the Corporation will be entitled to participate therein at its own expense and/or to assume the defense thereof at its own expense, with legal counsel reasonably
acceptable to the Indemnitee. After notice from the Corporation to the Indemnitee of its election so to assume such defense, the Corporation shall not be liable to the Indemnitee for any legal or other expenses subsequently incurred by the
Indemnitee in connection with such claim, other than as provided below in this Paragraph 7. The Indemnitee shall have the right to employ his own counsel in connection with such claim, but the fees and expenses of such counsel incurred after notice
from the Corporation of its assumption of the defense thereof shall be at the expense of the Indemnitee unless (i) the employment of counsel by the Indemnitee has been authorized by the Corporation, (ii) counsel to the Indemnitee shall have
reasonably concluded that there may be a conflict of interest or position on any significant issue between the Corporation and the Indemnitee in the conduct of the defense of such action or (iii) the Corporation shall not in fact have employed
counsel to assume the defense of such action, in each of which cases the fees and expenses of counsel for the Indemnitee shall be at the expense of the Corporation, except as otherwise expressly provided by this Agreement. The Corporation shall not
be entitled, without the consent of the Indemnitee, to assume the defense of any claim brought by or in the right of the Corporation or as to which counsel for the Indemnitee shall have reasonably made the conclusion provided for in clause (ii)
above. 
  
 8. Advancement of Expenses. Subject to the provisions of Paragraph 9 below, in the event that the
Corporation does not assume the defense pursuant to Paragraph 7 of this Agreement of any Proceeding to which Indemnitee was or is a party or is threatened to be made a party by reason of his Corporate Status or by reason of any action alleged to
have been taken or omitted in connection therewith and of which the Corporation receives notice under this Agreement, any Expenses incurred by the Indemnitee in defending such Proceeding shall be paid by the Corporation in advance of the final
disposition of such matter; provided, however, that the payment of such Expenses incurred by the Indemnitee in advance of the final disposition of such matter shall be made only upon receipt of an undertaking by or on behalf of the Indemnitee to
repay all amounts so advanced in the event that it shall ultimately be determined that the Indemnitee is not entitled to be indemnified by the Corporation as authorized in this Agreement. Such undertaking shall be accepted without reference to the
financial ability of the Indemnitee to make repayment. 
  
 9. Procedure for Indemnification. In order to
obtain indemnification or advancement of Expenses pursuant to Paragraphs 3, 4, 6 or 8 of this Agreement, Indemnitee shall submit to the Corporation a written request, including in such request such documentation and information as is reasonably
available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification or advancement of Expenses. Any such indemnification or advancement of Expenses shall be made promptly, and in any
event within 60 days after receipt by the Corporation of the written request of the Indemnitee, unless with respect to requests under Paragraphs 3, 4 or 8 the Corporation determines within such 60-day period that such Indemnitee did not meet the
applicable standard of conduct set forth in Paragraph 3 or 4, as the case may be. Such determination shall be made in each instance by (a) a majority vote of the directors of the Corporation consisting of persons who are not at that time parties to
the Proceeding (“disinterested directors”), whether or not a quorum, (b) a majority vote of a quorum of the outstanding shares of stock of all classes entitled to vote for directors, voting as a single class, which quorum shall consist of
stockholders who are not at that time parties to the Proceeding, (c) independent legal counsel (who may, to the extent permitted by applicable law, be regular legal counsel to the Corporation), or (d) a court of competent jurisdiction. 

 
 10. Remedies. The right to indemnification or advancement of Expenses as provided by this Agreement shall be enforceable
by the Indemnitee in any court of competent jurisdiction if the Corporation denies such request, in whole or in part, or if no disposition thereof is made within the 60-day period referred to above in Paragraph 9. Unless otherwise required by law,
the burden of proving that indemnification is not appropriate shall be on the Corporation. Neither the failure of the Corporation to have made a determination prior to the commencement of such action that indemnification is proper in the
circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Corporation pursuant to Paragraph 9 that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or
create a presumption that Indemnitee has not met the applicable standard of conduct. Indemnitee’s expenses (of the type described in the 

 
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definition of “Expenses” in Paragraph 2(c)) reasonably incurred in connection with successfully establishing his right to indemnification, in whole or in part, in any such Proceeding
shall also be indemnified by the Corporation. 
  
 11. Partial Indemnification. If Indemnitee is entitled under
any provision of this Agreement to indemnification by the Corporation for some or a portion of the Expenses, judgments, fines, penalties or amounts paid in settlement actually and reasonably incurred by him or on his behalf in connection with any
Proceeding but not, however, for the total amount thereof, the Corporation shall nevertheless indemnify Indemnitee for the portion of such Expenses, judgments, fines, penalties or amounts paid in settlement to which Indemnitee is entitled.

  
 12. Subrogation. In the event of any payment under this Agreement, the Corporation shall be subrogated to
the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Corporation to
bring suit to enforce such rights. 
  
 13. Term of Agreement. This Agreement shall continue until and
terminate upon the later of (a) six years after the date that Indemnitee shall have ceased to serve as a director or officer of the Corporation or, at the request of the Corporation, as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise or (b) the final termination of all Proceedings pending on the date set forth in clause (a) in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses
hereunder and of any proceeding commenced by Indemnitee pursuant to Paragraph 10 of this Agreement relating thereto. 
  
 14. Indemnification Hereunder Not Exclusive. The indemnification and advancement of Expenses provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may be entitled under the
Certification of Incorporation, the By-Laws, any agreement, any vote of stockholders or disinterested directors, the General Corporation Law of Delaware, any other law (common or statutory), or otherwise, both as to action in his official capacity
and as to action in another capacity while holding office for the Corporation. Nothing contained in this Agreement shall be deemed to prohibit the Corporation from purchasing and maintaining insurance, at its expense, to protect itself or the
Indemnitee against any expense, liability or loss incurred by it or him in any such capacity, or arising out of his status as such, whether or not the Indemnitee would be indemnified against such expense, liability or loss under this Agreement;
provided that the Corporation shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy,
contract, agreement or otherwise. 
  
 15. No Special Rights. Nothing herein shall confer upon Indemnitee any
right to continue to serve as an officer or director of the Corporation for any period of time or at any particular rate of compensation. 
  
 16. Savings Clause. If this Agreement or any portion thereof shall be invalidated on any ground by any court of competent jurisdiction, then the Corporation shall nevertheless indemnify Indemnitee as to Expenses,
judgments, fines, penalties and amounts paid in settlement with respect to any Proceeding to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated and to the fullest extent permitted by applicable
law. 
  
 17. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall
constitute the original. 
  
 18. Successors and Assigns. This Agreement shall be binding upon the Corporation
and its successors and assigns and shall inure to the benefit of the estate, heirs, executors, administrators and personal representatives of Indemnitee. 
  
 19. Headings. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction
thereof. 

 
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 20. Modification and Waiver. This Agreement may be amended from time to
time to reflect changes in Delaware law or for other reasons. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provision hereof nor shall any such waiver constitute a continuing waiver. 
  
 21. Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been given (i) when delivered by hand or (ii) if mailed by certified or registered mail
with postage prepaid, on the third day after the date on which it is so mailed: 
  
 (a) if to the Indemnitee, to:

  
 (b) if to the Corporation, to: 
  
  Sycamore Networks, Inc. 
  220 Mill
Road 
  Chelmsford, MA 01824 
  Attn: General Counsel 
  
 or to such other address as may have been furnished to Indemnitee by the Corporation or to
the Corporation by Indemnitee, as the case may be. 
  
 22. Applicable Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware. 

 
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the day and year first above written. 
  
 
	  	 	  	 	 SYCAMORE NETWORKS, INC.
  
 
	  	 	  	 	  
	 Attest:
 	 	  	 	 By:
 	 	 /s/  Daniel E. Smith        
 

	 
	 By:
 	 	 /s/  Melanie L. Wickens        
 
	 	  	 	 Name:
 	 	 Daniel E. Smith
 
	  	 	  	 	  	 	 Title:
 	 	 President and CEO
 
	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	  	 	  	 	  
 INDEMNITEE:
 
	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	  	 	  	 	 /s/  Paul Chisholm        
 

	  	 	  	 	  	 	 Paul Chisholm
 

 

 
 -6-Amended & Restated Employment Agreement

  
 EXHIBIT 10.9(w) 
  
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
  
 This AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated November 7, 2002 by and between Pediatric Services of America, Inc., a Delaware Corporation (the “Company”), and Joseph D. Sansone (the “Executive”)
amends and restates the Employment Agreement dated August 1, 2001 between the Company and the Executive and is effective commencing on October 1, 2001 (the “Commencement Date”). 
  

W I T N E S S E T H: 
  
 WHEREAS, the parties wish to provide for the Executive’s employment by the Company on the terms and conditions herein set forth; 
  
 NOW, THEREFORE, it is agreed that: 
  
 1.    Employment Term.  Subject to the terms and conditions hereof, the Company shall employ the Executive, and the Executive shall serve the Company, as President and Chief Executive Officer of
the Company for a period beginning on the date hereof and terminating on the second anniversary of the Commencement Date (the “Initial Term”). During the Initial Term, the Company shall also take all steps within the Company’s control
to cause the Executive to be a member of the Board of Directors of the Company. After the Initial Term, the Executive shall continue to serve the Company on the terms provided for herein for successive one (1) year periods commencing on each
anniversary of the Commencement Date from and after the anniversary thereof occurring in 2003 (each, an “Additional Term”), unless and until either party hereto gives the other not less than ninety (90) days prior written notice of such
party’s intent to terminate the Agreement at the end of the Initial Term or the Additional Term, if any, then in effect, whereupon the Executive’s employment shall terminate on the date specified in such notice. The term of the
Executive’s employment hereunder, as it may be extended from time to time, is herein referred to as the “Term”. 
  
 2.    Duties.  During the term, the Executive shall serve as President and Chief Executive Officer of the Company, with such responsibilities as shall be specified from time to time by the Board
of Directors of the Company, and subject at all times to the by-laws of the Company and the right of the Board of Directors and stockholders of the Company to determine the officers and directors of the Company, respectively. The Executive shall,
during the Term, serve the Company on a full-time basis, faithfully, diligently, and competently and to the best of his ability, and will hold, in addition to the offices set forth above, such other offices in the Company and its subsidiaries and
affiliates, if any, to which he may be elected, appointed or assigned by the Board of Directors from time to time, and will discharge such duties in connection therewith as may from time to time be assigned to him. 
  
 3.    Compensation. 
  
 (a)  During the Initial Term, the Company shall pay the Executive for the services rendered to the Company a salary (“Salary”) of Three Hundred sixty Thousand Dollars ($360,000.00)
per annum for each year during the Initial Term, payable in installments (net of applicable withholding) not less frequently than bi-weekly in accordance with the Company’s regular policies. 
  

(b)  At any time during the first year of the Initial Term, the Salary shall be subject to review by the Board of Directors and may, if the Executive’s
performance is satisfactory to the Board of Directors and in the Board’s sole discretion, be increased by an amount determined by the Board. 
  
 (c)  During each Additional Term, if any, the Company shall pay the Executive a Salary equal to the Salary being paid to the Executive on the last day of the Initial Term or Additional Term
immediately prior to such Additional Term, unless otherwise agreed by the Company and the Executive. 
  
 (d)  In addition to the Salary payable to the Executive, the Executive shall be entitled to participate in a bonus plan, the terms of which shall be determined and approved by the Board of Directors. Such bonus, if any,
shall be payable upon determination of the amount due, but in no event later than thirty (30) days after the end of each fiscal year for the prior fiscal year of the Company. 

 

  
 4.    Benefits and Perquisites. 

 
 (a)  During the Term, the Company shall reimburse the Executive for all reasonable travel and other business expenses
reasonably incurred by him in connection with the rendering of services hereunder against submission of appropriate vouchers and receipts in accordance with the Company’s policies from time to time in effect. 
  
 (b)  The Executive shall be entitled during the Term to participate in employee benefit plans and programs of the Company,
including individual and family medical coverage and retirement plans, to the extent that his position, tenure, salary, age, health and other qualifications make him eligible so to participate. Subject to the foregoing, the Executive shall be
covered by life insurance in the amount of five hundred thousand dollars ($500,000) payable to the beneficiary of his choice and a long-term disability benefit plan pursuant to which he shall be eligible to receive sixty percent (60%) of his annual
compensation up to a monthly maximum of twelve thousand dollars ($12,000.00) for documented medical disability which continues beyond a ninety (90) day waiting period. Except as set forth above, the Company does not guarantee the adoption or
continuance of any particular employee benefit plan or program during the Term, and the Executive’s participation in any such plan or program shall be subject to the provisions, rules and regulations and laws applicable thereto. 

 
 (c)  During the Term, the Company shall provide for the Executive’s use a Company automobile of a value not to
exceed eighty thousand dollars ($80,000.00) and shall pay reasonable and appropriate maintenance, insurance and operating expenses related thereto. To the extent the Company is able to do so, it shall provide the Executive the option to purchase
such automobile at any time during the Term for a purchase price equal to the greater of the book value thereof or one hundred dollars ($100.00). If the Company and the Executive so agree, the Executive may elect not to use a Company automobile as
set forth above, and in such event the Company shall pay to the Executive during the Term an allowance in the amount of seven hundred fifty dollars ($750.00) per month, together with reimbursement of the reasonable expenses incurred by the Executive
for fuel, oil, tires and routine maintenance in connection with the use of the Executive’s own automobile. 
  
 (d)  The Executive shall be entitled to four (4) weeks paid vacation during each year of the Term. Such vacation must be taken with each year during the Term and may not be accumulated. Vacation will accrue during each
calendar year on a pro rata basis. 
  
 (e)  The Company shall provide the Executive with basic annual
physicals and subsequent follow up physicals. 
  
 (f)  The Company shall provide the Executive with legal
and accounting services for matters relating to the Executive’s estate and tax planning activities. 
  
 (g)  The Company shall reimburse the Executive for reasonable business and social activities including but not limited to approved memberships in professional organizations and a sporting or country club. 

 
 5.    Disclosure of Information; Inventions and Discoveries.  The Executive shall promptly
disclose to the Company all inventions, improvements, discoveries, data, processes, know-how, trademarks and other financial, scientific, marketing, operational and other information related to the business of the Company and its subsidiaries and
affiliates (collectively, “Developments”) conceived, developed, learned or acquired by the Executive along or with others or of which the Executive obtains knowledge during the Term, whether or not during regular working hours or through
the use of materials or facilities of the Company. All Developments shall be the sole and exclusive property of the Company, and upon requests the Executive shall deliver to the Company all data, drawings, sketches, models and other records relating
thereto. In the event any such development shall be deemed by the Company to be patentable or otherwise protectable, the Executive shall, at the expense of the Company, assist the Company in obtaining in its name patents, trademarks and copyrights,
as appropriate, in respect of such Development and shall execute all documents and do all other things necessary or proper to vest in the Company full title thereto. 

 

  
 6.    Confidentiality.  The Executive shall
not at any time after the date of the Agreement divulge, furnish or make accessible to anyone (otherwise than in the regular course of business of the Company) any knowledge or information with respect to confidential or secret processes,
inventions, discoveries, improvements, formulae, plans, material, devices, ideas, know-how or data, whether patentable or not, with respect to any operations, financial, scientific, engineering, development or research work or with respect to any
other confidential or secret aspects of the Company’s business (including, without limitation, financial and marketing data, customer and supplier lists, personnel information and other data and pricing arrangements with customers and
suppliers, in each case relating to the Company). The covenant herein contained shall not extend for more than two years after termination of employment with respect to matters that are confidential to the business of the Company but do not
constitute “trade secrets” as defined in O.C.G.A. 19-1-760. 
  
 7.    Non-Competition.  The Company and the Executive agree that the services rendered by the Executive hereunder are unique and irreplaceable and that the Executive’s services to the Company
will bring him into close contact with confidential information concerning the Company, its employees, independent contractors, suppliers, customers and others with whom it does business. Accordingly, the Executive hereby agrees that during the Term
and for a period of two years thereafter, the Executive shall not (a) within a 25 mile radius of any office where the Company or any subsidiary or affiliate thereof conducts business during the Term, engage or participate in, directly or indirectly
(whether as an officer, director, employee, partner, agent, independent contractor, consultant, holder of an equity or debt investment, lender or in any other manner or capacity), or lend the Executive’s name (or any part or variant thereof) to
any business which is or as a result of the Executive’s engagement or participation would become competitive with any aspect of the Business of the Company or any such subsidiary or affiliate, (b) deal, directly or indirectly, in a competitive
manner with any employee, independent contractor or supplier doing business with the Company or any subsidiary or affiliate thereof during the Term, (c) solicit any officer, director, employee, independent contractor or agent of the Company or any
subsidiary or affiliate thereof to become an officer, director, employee, independent contractor or agent of the Executive, any entity with which the Executive is affiliated or anyone else, or (d) engage in or participate in, directly or indirectly,
any business conducted under any name that shall be the same as or similar to the name of the Company or any subsidiary or affiliate thereof or any trade name used by them. For purposes of this Agreement, “Business” shall mean providing
pediatric home health services. Notwithstanding the foregoing, and subject to the Executive’s compliance with Section 6 hereof, subsequent to the Term (i) the Executive may serve as an employee of a corporation or other entity in which the
Executive does not have an equity, debt or other investment or ownership interest (except that if the Executive is employed by a corporation or other entity described in clause (ii) below, the Executive may receive employee stock options and stock
issuable upon exercise thereof constituting not more than one percent of the total outstanding securities of such corporation or other entity), provided such employment is otherwise in compliance with this Section 7, and (ii) except in the instances
contemplated by clause (i) above, the ownership, in the aggregate, of less than two percent (2%) of the outstanding shares of any class of capital stock of any corporation with one or more classes of its capital stock listed on a national securities
exchange or publicly traded in the over-the-counter market shall not constitute a violation of the foregoing provision. 
  
 8.    Remedies.  The Executive acknowledges that irreparable damage would result to the Company if the provisions of Sections 5, 6 and 7 of this Agreement were not specifically enforced, and
agrees that the Company shall be entitled to all appropriate legal, equitable and other remedies, including injunctive relief, in respect of any failure to comply with the provisions of such sections. 
  
 9.    Termination of Employment.  
  
 (a)  This Agreement shall terminate upon the death of the Executive. This Agreement may be terminated by the Board of Directors if the Executive shall be rendered
incapable, by physical or mental illness or any other disability determined by a physician designated by the Company, from complying with the terms, conditions and provisions hereof on the Executive’s part to be kept, observed and performed
(“Disability”). If this Agreement is terminated by reason of the Executive’s Disability, the Company shall give written notice to that effect to the Executive in the manner provided herein. In addition to and not in substitution for
any other benefits which may be payable by the Company in respect of the death or Disability of the Executive, in the event of such death or Disability of the Executive, the Salary payable 

 

 hereunder shall continue to be paid at the then current rate for three (3) months after termination of the Executive’s employment as a
result of Disability or until the end of the month in which death occurs. In the event of the death of the Executive during the Term, the sums payable hereunder shall be paid to the Executive’s personal representative. 
  
 (b)  The Executive’s employment with the company may be terminated by the Board of Directors, with or without cause, in
accordance with the provisions hereof. Cause for termination shall include (i) the Executive’s conviction for, or plea of nolo contendere with respect to a charge of, a felony or a crime involving moral turpitude, (ii) the
Executive’s commission of a material act of personal dishonesty or material breach of fiduciary duty involving personal profit in connection with the Executive’s employment by the Company, (iii) habitual absenteeism, chronic alcoholism or
any other form of addiction to illegal substances on the part of the Executive, (iv) the Executive’s material breach of Sections 5, 6, or 7 of this Agreement or (v) the Executive’s material failure to perform his duties under this
Agreement as determined in good faith by the Board of Directors of the Company, which failure continues for, or is not remedied within, a period of thirty (30) days after the Executive has received written notice thereof (it being understood that in
the event of such a determination by the Board of Directors the Executive will be afforded the opportunity to be heard by the Board of Directors prior to such determination becoming final). In the event of termination by the Company under this
Section 9(b) without cause, or pursuant to a constructive discharge, or by employee for Good Reason (as defined in 8(d) below), or failure to extend the Initial Term or the Additional Term as outlined in Section 1, the Company shall (a) pay the
Executive the full base salary provided herein for the term of this Agreement and a period of eighteen (18) months thereafter, (b) receive one hundred fifty percent (150%) of the greater of the annual bonus received for performance during the
Company’s immediately preceding fiscal year, (c) continue to provide the insurance and other benefits provided herein for the period the salary is paid, (d) cause all grants of outstanding options, restricted stock, bonus stock and any other
incentive stock award to become fully vested and remain exercisable for the remainder of their stated term, and (e) cause all deferred compensation, supplemental retirement programs and similar programs to become fully funded. In the event of
termination by the Company under this Section 9(b) with cause, or in the event the Executive shall voluntarily terminate his employment without Good Reason, in addition to any other rights it may have the Company shall not be obligated to pay any
additional salary or other benefits to the Executive. Notwithstanding any termination of this Agreement pursuant to this Section, the Executive, in consideration of his employment hereunder to the date of such termination, shall remain bound by the
provisions of Sections 5, 6, and 7 hereunder. 
  
 (c)  Upon termination of the Term, whether pursuant to
Section 1 or this Section 9, the Executive or his personal representative shall promptly, and in any event within ten (10) days after such termination, deliver to the Company all books, memoranda, plans, records and written and other data of every
kind relating to the business and affairs of the Company which are then in the Executive’s possession. 
  
 (d)  Termination by the Employee. The Employee may terminate his employment hereunder for Good Reason. For purposes of this Agreement, “Good Reason” shall mean (i) a decrease in the total amount of the
Employee’s base salary below its level in effect on the date hereof, or a decrease in the bonus percentage to which the Employee is entitled, without the Employee’s written consent, provided, however, nothing herein shall be construed to
guarantee the Employee’s bonus award if performance is below target; (ii) the assignment to the Employee, without Employee’s written consent, of any duties inconsistent with the Employee’s position (including status, offices, titles
and reporting requirements), authority, duties or responsibilities as contemplated by Section 2, or any other action by the Company which results in a diminution in such position, authority, duties or responsibilities, excluding for this purpose an
isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company within ten (10) days after receipt of notice thereof given by the Employee; (iii) a geographical relocation of the Employee of more than 25
miles without Employee’s written consent, (iv) a failure by the Company to comply with any material provision of this Agreement which has not been cured within ten (10) days after notice of such noncompliance has been given by the Employee or
(v) any purported or threatened termination by the Company of the Employee’s employment otherwise than for cause, Employee’s death or Disability. For purposes of this Section 9(d), any good faith determination of “Good Reason”
made by the Employee shall be conclusive unless the Company has previously or simultaneously exercised its right to terminate. Anything in this Agreement to the contrary notwithstanding, 

 

 a termination by the Employee for any reason at least ninety (90) but not more than one hundred twenty (120) days following a consummation of a
change in control or during the thirty (30) day period immediately following the first anniversary of a change in control shall be deemed to be a termination for Good Reason for all purposes of this Agreement. 
  
 A change in control shall be deemed to have occurred when (i) the Company is merged or consolidated with another corporation and
immediately after giving effect to the merger or consolidation less than fifty percent (50%) of the outstanding Voting Securities of the surviving or resulting entity are then beneficially owned in the aggregate by (x) the shareholders of the
Company immediately prior to such merger or consolidation, or (y) if a record date has been set to determine the shareholders of the Company entitled to vote on such merger or consolidation, the shareholders of the Company as of such record date;
(ii) any “person,” including a “syndication” or “group” as those terms are used in Section 13(d)(3) of the Securities Exchange Act of 1934, is or becomes the beneficial owner, directly or indirectly, of securities of
the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding “Voting Securities,” which is any security which ordinarily possesses the power to vote in the election of the Board
of Directors of a corporation without the happening of any precondition or contingency; (iii) if at any time the following do not constitute a majority of the Board of Directors of the Company: individuals who, prior to their election as a director
of the Company were nominated, recommended or endorsed by a formal resolution of the Board; or (iv) the Company transfers substantially all of its assets to another corporation which is a less than fifty percent (50%) owned subsidiary of the
Company. 
  
 (e)  Mutual Consent. By mutual written agreement of the Company and Employee. 

 
 10.    Insurance.  The Company shall have the right at its own cost and expense to apply
for and to secure in its own name or otherwise life, health and/or accident insurance covering the Executive. The Executive agrees to submit to usual and customary medical examinations and otherwise cooperate with the Company in connection with the
procurement of any such insurance and the assertion of any claims thereunder. 
  
 11.    Certain Representations.  The Executive hereby represents and warrants to the Company that neither the execution and delivery of the Agreement nor the performance by him of his obligations
hereunder violates or constitutes a breach of any agreement or undertaking to which the Executive is a party or by which he is bound. 
  
 12.    Severability.  To the extent any provision of this Agreement shall be invalid or unenforceable, it shall be considered deleted here from and the remainder of such provision and
this Agreement shall be unaffected and shall continue in full force and effect. In furtherance and not in limitation of the foregoing, should the duration or geographical extent of or business activities covered by any provision of this Agreement be
in excess of that which is valid and enforceable under applicable law, then such provision shall be construed to cover only that duration, extent or activities which may be validly and enforceably covered. 
  
 13.    Notices.  All notices, requests and other communications pursuant to this Agreement shall be
in writing and shall be deemed to have been duly given if delivered in person or by courier, telegraphed, telexed, transmitted by facsimile or mailed by registered or certified mail, postage prepaid, addressed as follows: 
 If to the Executive: 
 Joseph D. Sansone 
 945 Tiverton Lane 
 Alpharetta, GA 30022

 If to the Company: 
 Pediatric Services of America, Inc.

 310 Technology Parkway 
 Norcross, Georgia 30092 
  
 Either party may, by written notice to the other, change the address to which notices to such
party are to be delivered or mailed. 

 

  
 14.    General.  Any waiver of any breach of
this Agreement shall not be construed to be a continuing waiver or consent to any subsequent breach on the part of either party hereto. Neither party hereto may assign such party’s rights or delegate such party’s duties under this
Agreement without the prior written consent of the other party; provided, however, that this Agreement may be assigned and the Company’s duties delegated by, and this Agreement shall inure to the benefit of and be binding upon the
successors and assigns of, the Company upon any sale of all or substantially all of the Company’s assets or upon any merger or consolidation of the Company with or into any other corporation, all as though such successors and assigns of the
Company and their respective successors and assigns were the Company. The terms of this Agreement shall be governed by the laws of the State of Georgia, and shall constitute the entire Agreement by the Company and the Executive with respect to the
subject matter hereof, and shall supersede any and all prior agreement or understandings between the Executive and the Company, whether written or oral. This Agreement may be amended or modified only by a written instrument executed by the Executive
and the Company. 
  
 IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first
above written. 
  
 
	  	  	 PEDIATRIC SERVICES OF AMERICA, INC.
 
	 
	  	  	  
	 
	 Date:    November 7, 2002
 	  	 By     /S/    ROBERT
PINKAS                                      
      
 
	  	  	 Robert Pinkas
 
	  	  	 Compensation Committee Director
 
	  	  	 Member, Board of Directors
 
	 
	 Witness:
 	  	 By     /S/    MICHAEL
FINN                                      
        
 
	  	  	 Michael Finn
 
	  	  	 Member, Board of Directors
 
	 
	  	  	 EXECUTIVE
 
	 
	 Date:    November 7, 2002                
 	  	 /S/    JOSEPH D.
SANSONE                                      
        
 
	  	  	 Joseph D. Sansone
 
	  	  	 President and Chief Executive Officer
 
	 
	 Date:    November 7, 2002                
 	  	 NOTARY PUBLIC
 
	 
	  	  	 /S/    CHARLOTTE J.
MITCHELL                                     
 
 
	  	  	 Commission Expires: February 23, 2004

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