Document:

Employment Agreement

 Exhibit 10.260 
 Portions of this exhibit marked [*] are requested to be treated confidentially. 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (the “Agreement”), is made and entered into on this 14th day
of April, 2008, to be effective on the 28th day of July, 2008 (the “Effective Date”), by and between PPD Development, LP, a Texas limited
partnership (the “Company”), with a mailing address for notice purposes of 929 North Front Street, Wilmington, North Carolina 28401, Attention: Fred N. Eshelman, and Christine A. Dingivan, MD (“Employee”), an individual whose
mailing address for notice purposes is 854 Still Creek Lane, Gaithersburg, Maryland 20878. 
 RECITALS 
 A. The Company, together with its subsidiaries, affiliates and parent companies, is a clinical research organization engaged in the business of providing
drug discovery and development services to pharmaceutical, biotechnology, medical device, government and academic organizations throughout the world (the “Business”). 
 B. The Company desires to employ Employee and Employee desires to be employed by the Company, all upon the terms and conditions set forth herein.

 NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants of the parties hereinafter set forth and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 ARTICLE
1 
 EMPLOYMENT AND DUTIES 
 1.1 Employment of Employee. On the Effective Date, the Company agrees to employ Employee and Employee accepts such employment pursuant and subject to the terms and conditions of this Agreement. 
 1.2. Duties and Powers. During the Employment Period (as defined herein), Employee shall serve as the Executive Vice President and Chief Medical
Officer of the Company and will have such responsibilities, duties and authority, and will render such services for and in connection with the Company and its subsidiaries, affiliates and parent companies as are customary in such position and as the
Board of Directors (the “Board”) and the Chief Executive Officer of Pharmaceutical Product Development, Inc. (“PPD”) shall from time to time reasonably direct. Employee shall devote Employee’s full business time and
attention exclusively to the Business of the Company and shall use 

 
best efforts to faithfully carry out Employee’s duties and responsibilities hereunder. Employee shall comply with all personnel policies and procedures
of the Company and PPD as the same now exist or may be hereafter implemented from time to time, including those policies contained in PPD’s employee manual or handbook which sets forth policies and procedures generally for employees of PPD and
its subsidiaries and affiliates (the “Handbook”) to the extent not inconsistent with this Agreement. 
 ARTICLE 2 
 TERM OF EMPLOYMENT 
 Unless sooner
terminated as provided elsewhere in this Agreement, Employee’s employment under this Agreement shall begin on the Effective Date and end at 11:59 p.m. Eastern Time on July 27, 2009 (“Initial Employment Period”). This Agreement
shall automatically renew for successive one-year periods, unless either the Company or Employee provides written notice to the other at least sixty (60) days prior to the termination of the Initial Employment Period or any renewal period
stating said party’s desire to terminate this Agreement. The Initial Employment Period and any extension or renewal thereof shall be referred to herein together as the “Employment Period”. Notwithstanding anything to the contrary
contained herein, the Employment Period is subject to termination pursuant to Article 4 hereof. 
 ARTICLE 3 
 COMPENSATION AND BENEFITS 
 3.1 Base
Salary. The Company will pay Employee an annual base salary at a rate of $355,000 per annum (the “Base Salary”), payable in accordance with the Company’s regular payroll policy for salaried employees. The Base Salary of Employee
may be subject to increase annually during the Employment Period by the Company. If the Employment Period is terminated pursuant to Article 4 hereof or is otherwise shorter than a full contract year, then the Base Salary for any partial year will be
prorated based on the number of days elapsed in such year during which services were actually performed by Employee. 
 3.2 Sign-On
Bonus. The Company will pay Employee a one-time bonus of $75,000 in cash within thirty (30) days of the Effective Date in accordance with the terms of a separate sign-on bonus agreement to be entered into simultaneously with this Agreement.

 3.3 Benefits. 
 a.
During the Employment Period, Employee shall be eligible to participate in and/or receive benefits under the health insurance, group term life/AD&D, short and long-term disability, retirement, paid-time off and other plans maintained from time
to time by the Company, subject in each instance to Employee meeting all eligibility and qualification requirements of such plans. During the Employment Period, Employee shall be entitled to twenty-seven (27) days of paid-time-off, subject to
the provisions of the Handbook. 
  

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 b. Except as provided below, in addition to the benefits provided in (a) above, during the
Employment Period Employee shall be entitled to participate in (i) the employee incentive compensation plan maintained for employees of the Company, as the same may be amended from time to time (the “Incentive Compensation Plan”), or
any successor plan, and (ii) the 1995 Equity Compensation Plan maintained by PPD, as the same has been and may be amended from time to time, or any successor plan (the “ECP”), subject in each instance to Employee meeting all
eligibility and qualification requirements of such plans. For the Initial Employment Period, in lieu of participating in the Incentive Compensation Plan, the Company shall pay Employee a fixed cash bonus equal to $177,500 (the “Initial
Employment Period Bonus”) on or about July 27, 2009, provided that this Agreement has been renewed pursuant to Article II hereof for a one-year renewal period, unless the Company has elected to terminate this Agreement pursuant to Article
II, in which case the Company shall continue to be obligated to pay the Initial Employment Period Bonus. For the calendar year 2009 and thereafter during the term of this Agreement, Employee shall participate in the Incentive Compensation Plan as
provided in (i) above. 
 3.4 Initial Stock Option Grant. The Company shall grant to Employee as of the Effective Date
non-qualified options to purchase 90,000 shares of PPD’s common stock. Said stock options shall be granted pursuant and subject to the ECP and PPD’s standard terms and conditions for nonqualified stock option grants as of the Effective
Date. In addition, said nonqualified stock options (i) will be subject to a three-year linear vesting schedule under which one-third of the options will vest on the first, second and third anniversaries of the option grant and (ii) will be
priced based on the Nasdaq closing price of PPD’s common stock on the Effective Date. 
 3.5 Expenses. The Company will reimburse
Employee, in accordance with and subject to Employee’s compliance with the Company’s policy, for Employee’s necessary and reasonable out-of-pocket expenses incurred in the course of performance of Employee’s duties hereunder. All
reimbursement of expenses to Employee hereunder shall be conditioned upon presentation of sufficient documentation evidencing such expenses. 
 3.6 Working Facilities. Employee’s primary work location shall be the Company’s principal office in Wilmington, North Carolina. From the Effective Date until such date as the parties mutually agree (the “Transition
Period”), Employee shall be permitted to work from her residence in Maryland for at least 25% but no more than 50% of the working days in each month during the Transition Period, unless the Chief Executive Officer of PPD otherwise approves in
writing. During the Transition Period, the Company shall reimburse Employee for travel, lodging and ground transportation expenses incurred by Employee for up to two (2) round trips per month between North Carolina and Maryland. Both during and
after the Transition Period, the Company shall 

  

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furnish Employee with such office space, equipment, technical, secretarial and clerical assistance and such other facilities, services and supplies as shall
be reasonably necessary to enable Employee to perform the duties required of Employee hereunder in an efficient and professional manner. 
 3.7 Use of Aircraft. Employee shall be entitled to use the Company’s aircraft for personal use up to a maximum of 5,000 miles per year, subject to the terms and conditions of the Company’s aircraft policy as the same may be
amended from time to time. 
 ARTICLE 4 
 TERMINATION OF EMPLOYMENT 
 4.1 Basis for Termination. Notwithstanding any other provision in this Agreement to the
contrary, the Employment Period and Employee’s employment hereunder shall terminate effective on the date indicated upon the happening of any of the following events: 
 a. Upon the death of Employee, effective immediately on the date of death without any notice; 
 b. Upon a determination by the Chief Executive Officer of PPD, acting in good faith and not in an arbitrary or capricious manner, but made in his sole
discretion, that Employee has become physically or mentally incapacitated, as determined under the Company’s short-term disability policy, and is unable to perform her duties under this Agreement as a result of such disability, which inability
continues for a period of sixty (60) days during any twelve-month period hereunder, effective upon the date said determination is communicated to Employee or such later date as specified by the Chief Executive Officer of PPD; or 
 c. Upon Employee: (i) failing to substantially perform her duties under or otherwise breaching any of the material terms of this Agreement;
(ii) demonstrating negligence or willful misconduct in the execution of her duties; or (iii) being convicted of a felony. In the case of (i) or (ii) above, the Company shall provide written notice thereof to Employee, and the
Employment Period and Employee’s employment hereunder will automatically terminate if Employee fails to cure such default within 30 days of Employee’s receipt of such written notice without any further action or notice by the Company. In
the case of (iii) above, the Employment Period and Employee’s employment hereunder will terminate immediately upon her conviction of a felony without any further action or notice by the Company. 
 4.2 Compensation After Termination During Employment Period. If the Company terminates Employee’s employment during the Employment Period
pursuant to Section 4.1 hereof or if either party terminates this Agreement pursuant to Article 2 hereof, then the Company shall have no further obligations hereunder or 

  

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otherwise with respect to Employee’s employment from and after the termination or expiration date, except that the Company shall pay Employee’s
Base Salary accrued through the date of termination or expiration and shall provide such benefits as are required by applicable law. From and after such termination or expiration date, the Company shall continue to have all other rights available
hereunder, including without limitation all rights under Article 5 hereof, the Proprietary Agreement, and at law or in equity. 
 ARTICLE 5

 PROPRIETARY INFORMATION 
 Prior to or coincident with the commencement date of this Agreement, Employee shall execute and deliver to the Company its standard Proprietary Information and Inventions Agreement (the “Proprietary Agreement”), a copy of which is
attached hereto as Annex A. 
 ARTICLE 6 
 NON-COMPETITION COVENANT 
 6.1 Non-Competition Covenant. Beginning on the Effective Date and
continuing for a period of [*] following the effective date of the termination (the “Termination Date”) of Employee’s employment with the Company for any reason, including, without limitation, termination pursuant to Article 2 hereof
(the “Non-Competition Period”), Employee will not (other than for the direct and sole benefit of the Company pursuant to this Agreement), directly or indirectly, either as an individual, as an officer, director, employee, shareholder,
consultant, contractor, partner, joint venturer, agent, or equity owner of any person, firm, corporation, partnership, limited liability company, trust or other business entity, or in any other capacity whatsoever, engage in any activity that is in
competition with the Business of the Company in any location in the world. Notwithstanding the foregoing, the Company agrees that (i) this Section 6.1 shall not prohibit Employee from working for a pharmaceutical, biotechnology or medical
device organization that is not a clinical research organization or otherwise competing with the Business by providing drug discovery or development services to third parties on a fee for service basis and (ii) that Employee may own up to two
percent (2%) of the outstanding voting securities of any publicly-traded company that is engaged in a business activity prohibited by this Section 6.1 so long as the Employee does not otherwise participate in such business in any way
prohibited by this Section 6.1. For purposes of this Article 6, the term Company shall include the Company as defined herein and its subsidiaries, affiliates and parent companies. 
 6.2 Reasonableness of Restrictions; Reformation. Employee acknowledges and agrees that the Company conducts the Business and services clients of
the Business throughout the world, and that its ability to do so is not based on its geographic location. In addition, Employee acknowledges and agrees that the geographic scope of the non-competition covenants in Section 6.1 above are
reasonable and no 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

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broader than necessary to protect the legitimate business interests of the Company. Employee further acknowledges and agrees that the scope of the prohibited
activities and time duration in this Article 6 are reasonable in nature, are no broader than necessary to protect the legitimate business interests of the Company, and that irreparable injury will result to the Company if the Employee breaches the
provisions of this Article 6. Therefore, if Employee breaches any of the provisions of this Article 6, notwithstanding any other provision of this Agreement to the contrary, the Company shall be entitled to immediate temporary injunctive and other
equitable relief, without bond and without the necessity of showing actual monetary damages, subject to hearing as soon thereafter as possible. Nothing contained herein shall be construed as prohibiting the Company from pursuing any other remedies
available to it for such breach by Employee, including the recovery of any damages which it is able to prove. If a court of competent jurisdiction determines that any portion of this Article 6 is invalid or unenforceable, the remainder of this
Article 6 shall not thereby be affected and shall be given full effect without regard to the invalid provisions. If any court of competent jurisdiction construes any of the provisions of this Article 6, or any part thereof, to be unreasonable
because of the duration or scope of such provision, such court shall have the power to reduce the duration or scope of such provision and to enforce such provision as so reduced. 
 6.3 Jurisdiction and Venue. The parties agree that the United States District Court for the Eastern District of North Carolina (sitting in
Wilmington, North Carolina) shall have exclusive jurisdiction to enforce the covenants under this Article 6 and to otherwise resolve any disputes or controversies under this Article 6. If such court lacks jurisdiction over any such proceeding, the
parties agree that the North Carolina District Court in New Hanover County, North Carolina shall have exclusive jurisdiction to enforce the covenants under this Article 6 and to otherwise resolve any disputes or controversies under this Article 6.
The parties agree that venue in either of such courts is proper and waive any claims and/or defenses based on improper venue. 
 ARTICLE 7

 MISCELLANEOUS 
 7.1
Withholding Taxes. All amounts payable under this Agreement, whether such payment is to be made in cash or other property, shall be subject to applicable withholding requirements for Federal, state and local income taxes, employment and
payroll taxes, and other legally required withholding taxes and contributions to the extent appropriate in the determination of the Company, and Employee shall report all such amounts as ordinary income on Employee’s personal income returns and
for all other purposes. 
 7.2 Assignment. No party hereto may assign or delegate any of its rights or obligations hereunder without
the prior written consent of the other party hereto; provided, however, that the Company shall have the right to assign all or any part of its rights and obligations under this Agreement (i) to any member, subsidiary or affiliate of the Company
or any surviving entity following any merger or consolidation of any of those entities with any entity other than the Company, or (ii) in connection with the sale of the Business by the Company. 
  

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 7.3 Binding Effect. All covenants and agreements contained in this Agreement by or on behalf of
any of the parties hereto shall be binding upon and inure to the benefit of the respective legal representatives, heirs, successors and permitted assigns of the parties hereto. 
 7.4 Entire Agreement. This Agreement sets forth the entire understanding of the parties and supersedes and preempts all prior oral or written
understandings and agreements with respect to the subject matter hereof. 
 7.5 Severability. Whenever possible, each provision of
this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of this Agreement. 
 7.6 Amendment; Modification. No
amendment or modification of this Agreement and no waiver by any party of the breach of any covenant contained herein shall be binding unless executed in writing by the party against whom enforcement of such amendment, modification or waiver is
sought. No waiver shall be deemed a continuing waiver or a waiver in respect of any subsequent breach or default, either of a similar or different nature, unless expressly so stated in writing. 
 7.7 Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of North Carolina,
without giving effect to provisions thereof regarding conflict of laws. 
 7.8 Arbitration. Except for disputes, controversies or
claims under Article 6 and the Proprietary Agreement, any dispute, controversy or claim arising out of or relating to this Agreement, including but not limited to its existence, validity, interpretation, performance or non-performance or breach,
shall be decided by a single neutral arbitrator agreed upon by the parties hereto in Wilmington, North Carolina in binding arbitration pursuant to the commercial arbitration rules of the American Arbitration Association then in effect. The parties
to any such arbitration shall be limited to the parties to this Agreement or any successor thereof. The written decision of the arbitrator shall be final and binding and may be entered and enforced in any court of competent jurisdiction. Each party
waives any right to a jury trial in any such forum. Each party to the arbitration shall pay its fees and expenses, unless otherwise determined by the arbitrator. 
 7.9 Notices. All notices, demands or other communications to be given or delivered hereunder or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been properly served
if (a) delivered personally, (b)

  

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delivered by a recognized overnight courier service, (c) sent by certified mail, return receipt requested and first class postage prepaid, or
(d) sent by facsimile transmission followed by a confirmation copy delivered by a recognized overnight courier service the next day. Such notices, demands and other communications shall be sent to the address first set forth above, or to such
other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party. Date of service of such notice shall be (i) the date such notice is personally delivered or sent by
facsimile transmission (with issuance by the transmitting machine of a confirmation of successful transmission), (ii) the date of receipt if sent by certified mail, or (iii) the date of receipt if sent by overnight courier. 
 7.10 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken
together shall constitute one and the same agreement. 
 7.11 Descriptive Heading; Interpretation. The descriptive headings in this
Agreement are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Agreement. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. 
  

							
	 COMPANY:
	 		 	PPD DEVELOPMENT, LP
				
		 		 	 By:
	 	PPD GP, LLC
		 		 	 Its: General Partner

				
		 		 	 By:
	 	 /s/ Frederic N. Eshelman

		 		 	 Name:
	 	Fredric N. Eshelman
		 		 	 Title:
	 	Chief Executive Officer
			
	 EMPLOYEE:
	 		 	 /s/ Christine A. Dingivan, MD

		 		 	 Christine A. Dingivan, MD

  

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 ANNEX A 
 PROPRIETARY INFORMATION 
 AND INVENTIONS AGREEMENT 
 In consideration and as a condition of my employment by PPD Development, LP, a Texas limited partnership, or any parent, affiliate, subsidiary, successor
or assigns, as the case may be (collectively referred to herein as the “Company”), I hereby agree as follows: 
 1.
“Proprietary Information” is information that was or is developed by, became or becomes known by, or was or is assigned or otherwise conveyed to the Company, and which has commercial value in the Company’s business. Proprietary
Information includes, without limitation, trade secrets, financial information, product plans, customer lists, marketing plans and strategies, systems, manuals, forecasts and other business information, improvements, inventions, business strategies,
business methods and practices, formulas, product ideas, biological material and techniques for their handling and use, chemical and/or information analysis and related products and data, computer programs and software, software designs and
documentation, source codes, algorithms, techniques, schematics, know-how and data, and any other confidential or proprietary information of the Company or its customers or clients which I have been, or may be exposed to, or have learned or may
learn of from time to time in connection with or as a result of my capacity as an employee of or consultant to the Company, including during the term of this Agreement. Proprietary Information shall not include information that is, through no
improper action or inaction by me, generally available to the public. I understand that my employment creates a relationship of confidence and trust between me and the Company with respect to Proprietary Information of the Company or its customers
which may be learned by me during the period of my employment. 
 2. In consideration of my employment by the Company and the compensation
received by me from the Company from time to time, I hereby agree as follows: 
 (a) All Proprietary Information and all patents, copyrights,
trade secret rights and other rights (including throughout, without limitation, any extensions, renewals, continuations or divisions of any of the foregoing) in connection therewith shall be the sole property of the Company. I hereby assign to the
Company any rights I may have or acquire in such Proprietary Information. At all times, both during my employment by the Company and after its termination, I will keep in confidence and trust and will not use or disclose any Proprietary Information
or anything relating to it without the written consent of the Company, except as may be necessary in the ordinary course of performing my duties to the Company. 
 (b) In the event of the termination of my employment by me or by the Company for any reason, I shall return all documents, records, apparatus, equipment and other physical property, or any reproduction of such
property, whether or not pertaining to Proprietary Information, furnished to me by the Company or produced by myself or others in connection with my employment, to the Company immediately as and when requested by the Company. 
  

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 (c) I will promptly disclose to the Company, or any persons designated by it, all “Inventions”,
which includes all improvements, inventions, formulas, ideas, works of authorship, processes, computer programs and software, software designs and documentation, algorithms, techniques, schematics, know-how data, whether or not patentable, made or
conceived or reduced to practice or developed by me, either alone or jointly with others, during the term of my employment and for six (6) months thereafter. To the extent the Company does not have rights therein hereunder, such disclosure
shall be received by the Company in confidence and does not extend the assignment made in Section (e) below. 
 (d) During the term of
my employment and for [*] thereafter, I will not, directly or indirectly, in any manner, (i) solicit, hire or offer to hire any employee or contractor of the Company while that person is employed or engaged by the Company and for [*] months
after termination of that person’s employment or engagement, or (ii) otherwise encourage or induce any such employee or contractor to discontinue his or her relationship with the Company, provided that the foregoing shall not affect any
responsibility I may have as an employee of the Company with respect to the bona fide hiring and firing of Company personnel. 
 (e) During
the term of my employment and for [*] thereafter, I will not, directly or indirectly, in any manner, (i) solicit, in competition with the Business, the business of any person, firm, corporation, partnership, limited liability company, trust or
other business entity which is a customer of the Company or which was a customer of the Company at any time during Employee’s employment with the Company, (ii) in any other manner persuade or attempt to persuade any such person, firm,
corporation, partnership, limited liability company, trust or other business entity to discontinue or alter its business relationship with the Company, or (iii) otherwise solicit for a competitive purpose or interfere with the Company’s
relationship with any such person, firm, corporation, partnership, limited liability company, trust or other business entity. 
 (f) I agree
that all Inventions which I make, conceive, reduce to practice or develop (in whole or in part, either alone or jointly with others) during my employment shall be the sole property of the Company to the maximum extent permitted by law, and, to the
extent permitted by law, shall be “works made for hire”. The Company shall be the sole owner of all patents, copyrights, trade secret rights, and other intellectual property or other rights in connection therewith. I hereby assign to the
Company any rights I may have or acquire in such Inventions. I agree to perform, during and after my employment, all acts deemed necessary or desirable by the Company to permit and assist it, at the Company’s expense, in obtaining and enforcing
patents, copyrights, trade secret rights or other rights on such Inventions and/or any other Inventions I have or may at any time assign to the Company in any and all countries. Such acts may include, but are not limited to, execution of documents
and assistance or cooperation in legal proceedings. With respect to any and all matters arising out of or relating to my employment or consultancy with the Company, I hereby irrevocably designate and appoint the Company and its duly authorized
officers and agents, as my 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

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agents and attorneys-in-fact to act for and in my behalf and instead of me, to execute and file any applications or related filings and do all other lawfully
permitted acts to further the prosecution and issuance of patents, copyrights, trade secret rights or other rights thereon with the same legal force and effect as if executed by me. 
 (g) I attach hereto a complete list of all Inventions or improvements to which I claim ownership and/or that I desire to remove from the operation of
this Agreement, and I covenant that such list is complete. If no such list is attached to this Agreement I represent that I have no such Inventions and improvements at the time of signing this Agreement. I understand that any such list shall not
contain information that breaches an obligation of confidentiality with a former employer. 
 (h) I represent that my performance of all the
terms of this Agreement will not breach any agreement or obligation to keep in confidence proprietary information acquired by me in confidence or in trust prior to my employment by the Company. I have not entered into, and I agree I will not enter
into, any agreement either written or oral in conflict herewith or in conflict with my employment with the Company. 
 3. The Company agrees
that it will not request as part of my employment that I divulge or make use of proprietary information of any of my former employers that has commercial value to the former employer who developed such information. 
 4. I acknowledge that in the event of my breach or threatened breach of the terms of this Agreement, the Company shall not have an adequate remedy at law
and shall, in addition to any other available rights and remedies, have the right to obtain injunctive relief, including without limitation specific performance. 
 5. This Agreement shall be effective as of the first day of my employment by the Company, and shall be binding upon me, my heirs, executors, assigns, and administrators, and shall inure to the benefit of the Company
and any current and future affiliates, subsidiaries, successors and assigns. This Agreement supersedes any agreement which may have been previously made or executed by me relating to this matter. This Agreement shall be governed by the laws of the
State of North Carolina (exclusive of conflicts of law provisions), which shall be the venue for resolution of any dispute related to this Agreement. This Agreement or any part thereof shall not be modified, amended, or waived except by the written
consent of a duly authorized officer or agent of the Company. 
  

			
	 Dated: 14 April, 2008

	
	 /s/ Christine A. Dingivan, MD

	 Name:
	 	Christine A. Dingivan
	
	 Accepted and Agreed to:

	
	 Company

		
	 By:
	 	 /s/ B. Judd Hartman

	 Name:
	 	B. Judd Hartman
	 Title:
	 	GC

  

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 Exclusions 
 The following are excluded from the operation of this Agreement: 
 All Inventions that Christine A. Dingivan conceived, in whole or in part, prior
to the date hereof in connection with her employment with Medimmune, Inc. and which are the subject of issued or pending patent applications. 
  

 4Employment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 This EMPLOYMENT AGREEMENT (“Agreement”) is entered into as of
July 21, 2008, by and between Lucinda M. Baier (“Executive”) and Movie Gallery, Inc., a Delaware corporation (the “Company”). 
 1. Duties and Scope of Employment. 
 (a) Position and Duties. For the term of
her employment under this Agreement, the Company agrees to employ Executive in the position of Executive Vice President and Chief Financial Officer, with such customary duties, responsibility and authority of such role. The Executive shall have
ultimate responsibility and authority for all financial operations of the company. Executive shall report to the Company’s President and Chief Executive Officer. 
 (b) Obligations to the Company. During the term of her employment with the Company, Executive shall devote her best efforts,
talents and skills, and substantially all of her working time and attention to furthering the Company’s success, and follow and abide by all Company policies, rules, and procedures. Unless she obtains prior consent from the Board of Directors
of the Company (the “Board”), Executive shall not serve as an employee, officer, or director of, or as a consultant or advisor to, any other for-profit or not-for-profit entity, or in any other similar capacity. Notwithstanding the
foregoing, the parties agree that during the term of her employment, Executive may serve on the Board of Directors for The Bon-Ton Stores, Inc. or its successor. 
 (c) No Conflicting Obligations. Executive represents and warrants to the Company that she is under no obligations or commitments,
whether contractual or otherwise, that are inconsistent with her obligations under this Agreement. Executive represents and warrants that she will not use or disclose, in connection with her employment by the Company, any trade secrets or other
proprietary information or intellectual property in which Executive or any other person has any right, title or interest and that her employment by the Company as contemplated by this Agreement will not infringe or violate the rights of any other
person or entity. Executive represents and warrants to the Company that she has returned all property and confidential information belonging to any prior employers. 
 (d) Commencement Date. The effective date of this Agreement shall be July 28, 2008 (“Commencement Date”).

 2. Term of Employment. 
 (a) At-Will Employment. The term of Executive’s employment with the Company shall be from the Commencement Date until the date when Executive’s employment terminates pursuant to Section 2(b)
below. Executive’s employment with the Company shall be “at will”, which means that either Executive or the Company may terminate Executive’s employment at any time, for any or no reason. 
  

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 (b) Termination. The Company may terminate Executive’s employment at any time
and for any or no reason, by giving Executive thirty (30) days advance notice of termination in writing (unless the termination is for Cause in which case Executive’s termination of employment may be effected by the Company immediately
pursuant to Section 9(d)). Executive may terminate her employment at any time, for any or no reason, by giving the Company sixty (60) days advance notice in writing. Executive’s employment shall terminate automatically in the event of
her death or Permanent Disability as defined in Section 9(a) herein. 
 (c) Termination of Agreement. This
Agreement shall terminate when all obligations of the parties hereunder have been satisfied. The termination of this Agreement shall not limit or otherwise affect any of Executive’s obligations under Sections 10 and 11. 
 3. Compensation. 
 (a)
Salary. The Company shall pay Executive as compensation for her services an annual base salary in the amount of Four Hundred Thousand and No/100 Dollars ($400,000.00), less applicable taxes and withholdings (“Base Salary”), subject
to such increases (but not decreases) as the Company deems appropriate in accordance with the Company’s customary procedures regarding the salaries of its senior officers, and payable in accordance with the Company’s standard payroll
practices and procedures. 
 (b) Signing Bonus. Within thirty (30) days from the Commencement Date, Executive will
be paid a signing bonus of One Hundred Thousand and No/100 Dollars ($100,000) (“Signing Bonus”), less applicable taxes and withholdings. If prior to one year from the Commencement Date (“First Anniversary Date”), Executive’s
employment is terminated for Cause or she resigns from her employment with the Company (other than for Good Cause as defined in Section 9(e) below), she shall repay a prorated portion of the Signing Bonus to the Company in an amount equal to
$100,000 multiplied by a fraction, the numerator of which is the number of days from Executive’s employment termination date through the First Anniversary Date and the denominator of which is the number of days from the Commencement Date
through the First Anniversary Date. 
 (c) Annual Bonus. For
each calendar year in which Executive achieves her target performance goals as set by the Board, Executive shall earn and be paid a bonus (the “Annual Bonus”) equal to 100% of Base Salary. The amount of the Annual Bonus shall be determined
based on the achievement of performance goals established by the Board. The Annual Bonus may be adjusted down from 100% for objectives not achieved. The performance goals shall be determined by the Board no later than ninety (90) calendar days
after the first day of each calendar year. The performance goals will be established with the expectation that the Annual Bonus will equal 100%. Notwithstanding the foregoing, for the 2008 calendar year, the Annual Bonus will be set at $200,000. The
Annual Bonus for the 2008 calendar year may be adjusted down from $200,000 for objectives not achieved. The Annual Bonus for each calendar year shall be paid no later than March 15th following the calendar year to which the Annual Bonus applies. 
  

 2 

 4. Equity. 
 (a) Stock Option Grant. The Company shall grant Executive an option (the “Option”) to purchase shares of
the Company’s common stock equal to three-fourths of one percent (0.75%) of 23,366,498 (the common stock of the Company outstanding on May 21, 2008), under the Company’s 2008 Omnibus Equity Incentive Plan, as it may be amended from
time to time (the “Plan”). The date on which any Option or Additional Option (defined below) is granted shall be the “Grant Date”. The Grant Date of the Option shall be as soon as practical after the
Commencement Date (the “Option Grant Date”). The per share exercise price of the Option will be the Fair Market Value of a share of common stock on the Option Grant Date. “Fair Market Value” shall have
the meaning given to it under the Plan. The Executive shall vest in the Option over three (3) years in equal installments of one-third (1/3) of the Option on each of the first three anniversaries of the Commencement Date. The Option shall
be subject to the terms of the Plan and the option agreement pursuant to which the Option shall be granted to Executive, and execution and delivery of such option agreement shall be a condition of the grant of the Option. 
 Executive shall be entitled to receive an additional option (the “Additional Option”) to purchase shares of common stock in the
Company at an exercise price per share at the greater of (i) the Fair Market Value on the Option Grant Date, or (ii) the Fair Market Value on the Grant Date of any such Additional Option, if the Company exceeds its 2009 business plan in
effect as of the date of this Agreement (the “2009 Business Plan”) as follows: 
 More than $75 million and up to $100
million over 2009 Business Plan EBITDA: An Additional Option to purchase one-fifth of one percent (0.20%) of 23,366,498 (the common stock of the Company outstanding on May 21, 2008). 
 More than $100 million and up to $125 million over 2009 Business Plan EBITDA: An Additional Option to purchase one-third of one percent (0.33%) of
23,366,498 (the common stock of the Company outstanding on May 21, 2008). 
 More than $125 million and up to $150 million over 2009
Business Plan EBITDA: An Additional Option to purchase two-thirds of one percent (0.67%) of 23,366,498 (the common stock of the Company outstanding on May 21, 2008). 
  

 3 

 More than $150 million over 2009 Business Plan EBITDA: An Additional Option to purchase one percent
(1.0%) of 23,366,498 (the common stock of the Company outstanding on May 21, 2008). 
 The Grant Date of any Additional Option shall be as soon as
practical after the achievement of performance criteria related to the 2009 Business Plan EBITDA described above are determined by the Board. The Executive shall vest in the Additional Option over three (3) years in equal installments of
one-third (1/3) of the Additional Option on each of the first three anniversaries of the Grant Date of the Additional Option. The Additional Option shall be subject to the terms of the Plan and the option agreement pursuant to which the
Additional Option shall be granted to Executive, and execution and delivery of such option agreement shall be a condition of the grant of the Additional Option. If there is a Change of Control in 2009 or soon thereafter prior to the Grant Date of
the Additional Option, and the Executive is employed by the Company, and the Company is on target to achieve the performance goals in the 2009 Business Plan (as determined by the Board by looking at the twelve (12) months immediately preceding
the date of the Change of Control), then the Executive shall vest in the proportion of the applicable percentage of the Additional Option based on achievement of performance goals in accordance with the following schedule: 
  

			
	 Change of Control Date
	  	Proportion of Percentage Vested in
Additional Option (0.20%,
0.33%,
0.67%, or 1.0% Based on Achievement
of Performance Goals)
	 January 1, 2009 through March 31, 2009
	  	  25%
	 April 1, 2009 through June 30, 2009
	  	  50%
	 July 1, 2009 through September 30, 2009
	  	  75%
	 October 1, 2009 and thereafter
	  	100%

 (b) Change of Control. In the event of a Change of Control during
Executive’s employment, Executive shall immediately and fully vest in her Option and in any Additional Option granted to her. “Change of Control” means the consummation and completion of any fundamental transaction by
which a change in control of the Company occurs as follows: (i) consummation and completion of a sale of all the equity securities of the Company to an unrelated entity, (ii) consummation and completion of a sale of substantially all the
assets of the Company to an unrelated entity, or (iii) consummation and completion of a merger, consolidation or reorganization with an unrelated business organization where less than forty percent (40%) of the voting power and economic
interest of the Company or the surviving entity or the parent of either, are retained by the shareholders of the Company immediately prior to such merger, consolidation or reorganization. 
  

 4 

 5. Benefits. During the term of this Agreement, Executive shall be entitled to participate in or
receive benefits under all employee benefit plans or arrangements and perquisites of employment, including, without limitation, plans or arrangements providing for health and disability insurance coverage, life insurance for the benefit of
Executive’s beneficiaries, and retirement and pension benefits, subject to the same terms and conditions as apply to other officers of the Company at Executive’s level of employment. During the term of Executive’s employment, the
Company shall provide financial planning assistance to Executive on an annual basis in accordance with the terms of its policies as in effect from time to time. During her employment, Executive shall accrue vacation at the rate of no less than four
(4) weeks for each year of employment with the Company, subject to and in accordance with the Company vacation policy as in effect from time to time. 
 6. Business Expenses. During the term of her employment, the Company shall reimburse Executive reasonable and necessary business expenses incurred by Executive in the performance of her duties subject to all
applicable Company policies regarding business expense reimbursement, including all reasonable and necessary expenses incurred as a result of the Travel Requirement (as defined in Section 7(a) below). Notwithstanding the foregoing, Executive
shall be reimbursed for reasonable and necessary business expenses relating to any commuting costs to and from her current principal residence to any destination more than 50 miles from her current principal residence, including, but not limited to,
travel expenses and housing costs. 
 7. Travel Requirement. 
 (a) Executive agrees that in order to perform her duties under this Agreement, during the first 24 months following the Commencement Date,
she will be required to travel from her principal residence on a regular basis as the Company may reasonably require in its sole discretion (“Travel Requirement”). The Travel Requirement shall expire at the end of said 24 months
(“Travel Requirement Expiration Date”). The Company will not require Executive to relocate from or change her current principal residence without her consent (the “Non-Relocation Requirement”). The parties agree that (i) the
Travel Requirement; (ii) the Travel Requirement Expiration Date; and (iii) the Non-Relocation Requirement are material terms of this Agreement. 
 (b) The parties further agree that, if at any time following the Commencement Date, the circumstances reflect with no uncertainty that the Travel Requirement must extend beyond the Travel Requirement Expiration Date
in order for Executive to continue to fulfill her duties and responsibilities under this Agreement, said circumstances shall constitute a material breach of this Agreement. 
 8. Taxes and Applicable Withholdings. All payments made under this Agreement shall be subject to reduction to reflect taxes and other amounts
required to be withheld by law, except that Executive will receive tax protection in the amount of a full-round gross-up (tax on tax) for any business expense reimbursement determined to be taxable. 
  

 5 

 9. Termination Benefits. 
 (a) Termination by Reason of Death or Permanent Disability. Executive’s employment hereunder shall automatically terminate in
the event of Executive’s death or Permanent Disability (as defined in this Section 9(a)). Within thirty (30) calendar days after the Executive’s death or Permanent Disability, Executive or Executive’s estate (as applicable)
shall receive (i) Executive’s accrued Base Salary earned through the date of Executive’s death or Permanent Disability, (ii) the sum of any earned and accrued but unpaid Annual Bonus for the fiscal year prior to the fiscal year
during which termination occurs, (iii) any expenses owed to the Executive, and (iv) any amounts accrued and owing from Executive’s participation in, or benefits plans under Section 5, which amounts shall be payable in accordance
with the terms and conditions of such employee benefit plans, programs or arrangements and such other or additional benefits as may be, or become, due to her under the applicable plans, programs, agreements, corporate governance documents or other
arrangements of the Company. “Permanent Disability” means a mental or physical condition that renders Executive unable to carry out her duties, which condition has existed for at least three (3) months, and which, in the opinion of a
physician selected by the Board, is permanent or expected to last for an indefinite duration. Executive, or Executive’s estate, as the case may be, shall have the right to exercise the vested portion of any Option or Additional Option in
accordance with the terms of the Plan and applicable option agreement(s). 
 (b) Resignation by Executive. Executive
may resign her employment by giving the Company sixty (60) calendar days’ advance written notice of the effective date of her resignation (the “Resignation Date”). Within thirty (30) calendar days after the Resignation Date,
Executive shall receive (i) her accrued Base Salary earned through the Resignation Date, (ii) the sum of any earned and accrued but unpaid Annual Bonus for the fiscal year prior to the fiscal year during which termination occurs,
(iii) any expenses owed to the Executive, and (iv) any amounts accrued and owing from Executive’s participation in, or benefits plans under Section 5, which amounts shall be payable in accordance with the terms and conditions of
such employee benefit plans, programs or arrangements and such other or additional benefits as may be, or become, due to her under the applicable plans, programs, agreements, corporate governance documents or other arrangements of the Company. Upon
receiving notice of Executive’s intent to resign, the Company may require that Executive cease performing all services for the Company at any time before the end of such 60-day notice period, so long as the Company continues Executive’s
compensation and benefits through the Resignation Date in accordance with this Section 9(b), provided that the Company does not have Cause (as defined in Section 9(d) below) to terminate Executive. Executive shall have the right to
exercise the vested portion of any Option or Additional Option in accordance with the terms of the Plan and applicable option agreement(s). 
 (c) Termination Benefits. In the event of a Termination by the Company Without Cause (as defined in Section 9(d) below) or a Termination by the Executive for Good Reason (as defined in Section 9(e)
below), the Company shall pay Executive a severance amount equal to two (2) times Executive’s Base Salary in equal 

  

 6 

 
monthly installments over a period of two (2) years from her termination date (the “Severance”), except that, solely in the event of a
Termination by the Executive for Good Reason triggered by the Company’s breach of Section 7(b), the Severance shall be equal to one (1) times Executive’s Base Salary, and payable in equal monthly installments over a period of one
(1) year from her termination date. Additionally, within thirty (30) calendar days after her termination date, Executive shall receive (i) her accrued Base Salary earned through the termination date, (ii) the sum of any earned
and accrued but unpaid Annual Bonus for the fiscal year prior to the fiscal year during which termination occurs, (iii) any expenses owed to the Executive, and (iv) any amounts accrued and owing from Executive’s participation in, or
benefits plans under Section 5, which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs or arrangements and such other or additional benefits as may be, or become, due to her under the
applicable plans, programs, agreements, corporate governance documents or other arrangements of the Company. The Severance shall not be paid or payable to Executive unless and until Executive timely executes an agreement releasing the Company and
its affiliates from any and all known and unknown claims related to Executive’s employment or termination of employment in a form requested by the Company, and such agreement becomes effective and not revocable. Executive shall have the right
to exercise the vested portion of any Option or Additional Option in accordance with the terms of the Plan and applicable option agreement(s). 
 If Executive is a “specified employee” of the Company or its successor (as determined by the Company’s “specified employee” policy, or if no such policy has been established, as determined in
accordance with the default provisions of Treasury Regulation Section 1.409A-1(i)), then Executive shall not receive payments during the six (6) month period immediately following her termination date in excess of the lesser of
(x) the amounts payable in accordance with the Severance described in Section 9(c) or (y) two times the compensation limit in effect under Code Section 401(a)(17) for the calendar year in which Executive’s date of
termination occurs (with any amounts that otherwise would have been payable under this Section 9(c) during such six (6) month period being paid on the first regular payroll date following the lapse of six (6) months from the date of
termination, and any remaining installments payable thereafter in accordance with this Section 9(c)). 
 (d)
Termination by Company for Cause. The Company may terminate Executive’s employment for Cause (as defined in this Section 9(d)), immediately upon written notice. Within thirty (30) calendar days after such termination for Cause,
Executive shall receive (i) her accrued Base Salary earned through such termination date (ii) any expenses owed to the Executive, and (iii) any amounts accrued and owing from Executive’s participation in, or benefits plans under
Section 5, which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs or arrangements and such other or additional benefits as may be, or become, due to her under the applicable plans,
programs, agreements, corporate governance documents or other arrangements of the Company. As used herein, “Cause” means (i) Executive’s breach of this Agreement, or (ii) Executive’s repeated neglect of, or refusal to
fulfill, or willful misconduct in connection with, any of Executive’s duties or 

  

 7 

 
obligations under this Agreement, or (iii) Executive’s violation of any Company policy or any material policy of a subsidiary of the Company, or
(iv) Executive’s commission of a felony or any crime which involves fraud, dishonesty, or moral turpitude, or (v) any misconduct by Executive that results in financial detriment to, or damage to the reputation of, the Company. Upon a
termination of Executive’s employment for Cause, any Option or Additional Option, even if vested, shall be forfeited. 
 (e) Termination by Executive for Good Reason. For purposes of this Agreement, “Good Reason” means any action or inaction that constitutes a material breach by the Company of this Agreement. To terminate her employment for
Good Reason, Executive must give the Company written notice detailing why she believes a Good Reason event has occurred (“Termination Notice”). The Termination Notice must be provided to the Company within sixty (60) days of the
initial occurrence of such alleged Good Reason event. The Company shall have thirty (30) days after receipt of the Termination Notice to cure the alleged Good Reason event. Good Reason will not have formally occurred with respect to the alleged
Good Reason event unless and until the cure period has expired and the alleged Good Reason event remains uncured. At the expiration of the cure period, if the Company has not cured the basis for the Good Reason termination, Executive’s
obligation to serve the Company, and the Company’s obligation to employ Executive under the terms of this Agreement, shall terminate simultaneously. 
 (f) Benefits After Termination. After any termination of employment described in this Section 9, Executive’s transfer, rollover, or continuation of any benefit in which Executive was participating at
the time of termination of employment shall be governed by the terms of those programs (including any elections Executive may have thereunder) and any applicable laws. 
 10. Restrictive Covenants. 
 (a) Executive’s Acknowledgments. Executive
acknowledges and agrees that during her employment with the Company, prior to and subsequent to the execution of this Agreement, she has had and will continue to have access to certain confidential and proprietary information of the Company, and its
subsidiaries and affiliated entities (collectively, the “Affiliates”), including (i) information which derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means
by, other persons who can obtain economic value from its disclosure or use, and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy (“Trade Secrets” or “Trade Secret”), and
(ii) information which does not rise to the level of a Trade Secret, but is valuable to the Company and its Affiliates and is provided in confidence to Executive (“Confidential Information”). 
 (b) Confidential Information. Executive further acknowledges and agrees with respect to Trade Secrets and Confidential Information
provided to or obtained by Executive (collectively, the “Proprietary Information”): (i) that the Proprietary Information is and shall remain the exclusive property of the Company and its Affiliates; 

  

 8 

 
(ii) to use the Proprietary Information exclusively for the purpose of fulfilling her obligations to the Company under this Agreement; (iii) to return
the Proprietary Information, and any copies thereof, in her possession or under her control, to the Company upon request of the Company, the expiration or termination of this Agreement, or the termination of her employment for any reason; and
(iv) to hold the Proprietary Information in confidence and not to copy, publish, or disclose to others or allow any other party to copy, publish, or disclose in any form, any Proprietary Information without the prior written approval of an
authorized representative of the Company. 
 (c) Non-Competition; Non-Solicitation. Executive hereby acknowledges and
agrees that the Company and its Affiliates are engaged in the Home Entertainment Business (as defined below) in the United States and Canada (“Area”). In consideration of Executive’s continued employment with the Company and other
good and valuable consideration, Executive hereby agrees that during the term hereof, and for a period of two (2) years from the date of expiration or termination of this Agreement for any reason, and within the Area, Executive will not:

 (i) compete with the Company or its Affiliates in the Home Entertainment Business, or engage in or carry on the Home
Entertainment Business, directly or indirectly, through any person or entity, or in any capacity, including, without limitation, agent, lender, investor, trustee, consultant, shareholder, director, officer, employee, or partner; 
 (ii) be employed by, or perform any services as employee, consultant, or otherwise for, any person, firm, partnership, joint venture,
corporation or other entity that competes with the Company or its Affiliates in the Home Entertainment Business, or that is engaged in the Home Entertainment Business within the Area; 
 (iii) employ, solicit for employment, or advise or recommend to any other person or entity that such person or entity employ, or solicit
for employment, any employee of the Company or its Affiliates; or 
 (iv) own or have any interest in, invest in (other than
as a stockholder of less than two percent (2%) of the issued and outstanding stock of a publicly traded corporation having assets in excess of $100,000,000.00), lend money to, guarantee loans of, make gifts to, advise, or by any other means
assist any other person or entity that competes with the Company or its Affiliates, or that is engaged in the Home Entertainment Business within the Area. 
 For purposes of this Agreement, “Home Entertainment Business” means the business of retail sale and/or rental of new or used movies and/or games or game-related equipment, except that any restriction on
Executive’s rendering services to companies engaged in such business activities is limited to employment in or services provided to departments and/or divisions within such companies that are engaged in the retail sale or rental of new or used
movies and/or games or game-related equipment. 

  

 9 

 
Notwithstanding the foregoing, a Business that receives less than five percent (5%) of its Revenues from the “Home Entertainment Business”
will neither be considered to be a competitor nor engaged in the “Home Entertainment Business”. During the requisite period and within the Area, Executive is expressly restricted from employment with or services provided to Blockbuster,
Inc., GameStop, Inc., Netflix, Inc., or their related entities, among other employers. 
 (d) Non-Disparagement.
Executive shall maintain a professional manner, and shall avoid and refrain from: (i) making any disparaging or derogatory remarks or comments about the Company, its Affiliates, or any of their employees, officers, directors, stockholders,
members, representatives or agents; or (ii) engaging in any other conduct which is likely to disparage the Company, its Affiliates, or any of their employees, officers, directors, stockholders, members, representatives or agents, or jeopardize
or be prejudicial to any business, professional or personal relationship, interests or reputation of the Company, its Affiliates, or any of their employees, officers, directors, stockholders, members, representatives or agents. 
 (e) Continuing Obligations. The obligations and restrictions set forth in this Section 10 shall survive the expiration or
termination of this Agreement for any reason and shall remain in full force and effect. 
 (f) Remedies. Executive
acknowledges and agrees that the provisions in this Section 10 (the “Restrictive Covenants”) are reasonable and necessary for the protection of the Company’s business interests, that irreparable injury will result to the Company
if Executive breaches any of the terms of said Restrictive Covenants, and that in the event of Executive’s actual or threatened breach of any of the Restrictive Covenants, the Company shall be entitled to temporary injunctive and other
equitable relief from a court of competent jurisdiction, without the necessity of showing actual monetary damages, subject to hearing as soon thereafter as possible, and notwithstanding the arbitration provisions in Section 13(g). In the event
of a breach of any of these Restrictive Covenants, the Company shall have the right to withhold payment of, or recapture, any Severance and/or any proceeds from the Option and/or the Additional Option. Nothing contained herein shall be construed as
prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach, including the recovery of any damages which it is able to prove. Nothing herein shall be construed as a liquidated damages provision.

 11. Post-Termination Obligations. 
 (a) Return of Company Materials. No later than three (3) business days following the termination of Executive’s employment, Executive shall return to the Company all property of the Company and its
Affiliates that is then in Executive’s possession, custody or control, including, without limitation, all keys, access cards, credit cards, computers, mobile phones, computer hardware and software, documents, records, policies, marketing
information, design information, specifications and plans, database information and lists, and other property or information that Executive has or had relating to the Company or its Affiliates (whether those materials are in paper or computer-stored
form), and including but not limited to, any documents containing, summarizing, or describing any Confidential Information. 
  

 10 

 Nothing in this Agreement shall prohibit Executive from (i) disclosing information and documents
when required by law, subpoena or court order, (ii) disclosing information and documents to her attorney or tax adviser for the purpose of securing legal or tax advice, (iii) disclosing the post-employment restrictions in this Agreement to
any potential new employer, (iv) retaining at any time, her personal correspondence, her personal Rolodex or outlook contacts and documents relating to her own personal benefits, entitlements and obligations, or (v) disclosing or retaining
information that is already generally available to the public or otherwise part of the public domain at the time of disclosure. 
 (b) Executive Assistance. For a period of three (3) years after the termination of Executive’s employment with the Company for any reason, Executive shall, upon reasonable notice, furnish the Company with such information
as may be in Executive’s possession or control, and cooperate with the Company, as the Company may reasonably request (with due consideration to Executive’s business activities and obligations after the term of her employment with the
Company), in connection with any litigation, claim, or other dispute in which the Company or its Affiliates is or may become a party. 
 12.
Indemnification/D&O Insurance. Executive shall be entitled to indemnification by the Company to the maximum extent permitted under Delaware law and coverage under any applicable directors and officers (“D&O”) insurance
policy maintained by the Company. The Company shall provide the Executive with evidence of the D&O insurance policy and scope of indemnification upon request. 
 13. Miscellaneous Provisions. 
 (a) Notice. Notices and all other
communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by overnight courier, U.S. registered or certified mail, return receipt requested and postage
prepaid. In the case of Executive, mailed notices shall be addressed to her at the home address which she most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate
headquarters, and all notices shall be directed to the attention of its Secretary and General Counsel. 
 (b) Modifications
and Waivers. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by Executive and by an authorized representative of the Company (other than
Executive). No waiver by either party of any breach of any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.

  

 11 

 (c) Entire Agreement. This Agreement contains the entire agreement between the
parties hereto with respect to the subject matter hereof, and expressly supersedes all prior agreements, discussions, negotiations, understandings and proposals by or between the parties with respect to the subject matter hereof, whether written or
oral. The terms of this Agreement cannot be changed except in a later document signed by Executive and an authorized representative of the Company (other than Executive). 
 (d) Governing Law. This Agreement shall be governed by and construed under the laws of the State of Delaware (except provisions
governing its choice of law). 
 (e) Severability. The parties acknowledge and agree that if any provision of this
Agreement is found, held or deemed by a court of competent jurisdiction to be void, unlawful or unenforceable under any applicable statute or controlling law, such unlawfulness or unenforceability shall not serve to invalidate any portion of this
Agreement not declared to be unlawful or unenforceable. Any provision so declared to be unlawful or unenforceable shall be construed in a manner which will give effect to the terms of such provision to the fullest extent possible while remaining
lawful and enforceable. 
 (f) Assignment. This Agreement and all rights and obligations of Executive hereunder are
personal to Executive and may not be transferred or assigned by Executive at any time. The Company may assign this Agreement to any successor, whether direct or indirect, by purchase, merger, consolidation or otherwise to all or substantially all of
the business or assets of the Company. 
 (g) Arbitration. Except as provided in Section 10(f) above, all disputes
between the parties hereto arising out of, or relating to, this Agreement shall be settled and determined to final resolution by arbitration. Any such arbitration shall be held in the city and state in which the primary corporate offices of the
Company are located and shall be conducted in accordance with the Company Employee Issue Resolution Program, the terms of which have been provided to Executive, except that any dispute arising under Section 10 shall be resolved in court or
through arbitration at the Company’s election. 
 (h) Headings. The headings of the section contained in this
Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of any provision of this Agreement. 
 (j) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 (k) Code Section 409A. It is intended that any amounts payable under this Agreement shall comply with Section 409A of the
Internal Revenue Code (the “Code”) (including the Treasury regulations and other published guidance relating thereto) so as not to subject Executive to the payment of any interest or additional tax imposed under Section 409A of the
Code, and the terms of this Agreement shall be construed accordingly. 
  

 12 

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

			
	EXECUTIVE
		
		 	/s/ Lucinda M. Baier
		 	Lucinda M. Baier

  

			
	COMPANY:
		
		 	Movie Gallery, Inc.
		
		 	/s/ S. Page Todd
		 	 S. Page Todd
 Executive Vice President, General
Counsel, Secretary and Chief Compliance Officer

  

 13

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