Document:

Amendment No. 3 to software license agreement for Palm OS Software

 Exhibit 10.20 
  

			
	

	  	AMENDMENT NO. 3 TO SOFTWARE LICENSE AGREEMENT

  
 This Amendment No. 3
(this “Amendment 3”) is an amendment to that Software License Agreement dated June 29, 2001 (the “Initial Agreement”) by and among PalmSource, Inc., (“PalmSource”), Palm Ireland Investment and AlphaSmart, Inc., as the
Initial Agreement was amended by Amendment 1 effective June 14, 2002 (“Amendment 1”), and further amended by Amendment No. 2 effective November l5, 2002 (“Amendment No. 2”). The Initial Agreement as amended by Amendment 1 and
Amendment 2 is hereinafter referred to as the Amended Agreement. This Amendment 3 is made effective as of February 27, 2004 (the “Amendment 3 Effective Date”), by and among PalmSource, PalmSource Overseas Limited (the successor in interest
to Palm Platform Overseas Limited, and together with PalmSource referred to as “PSI”), and AlphaSmart, Inc. (“Licensee”). The provisions of this Amendment 3 are hereby incorporated into the Amended Agreement and shall control
over contradicting terms therein. All capitalized terms used herein and not defined shall have the meanings set forth in the Amended Agreement. The term “Agreement” when used herein shall mean the Initial Agreement as amended by Amendment
1, Amendment 2 and this Amendment 3. 
  
 [*] 
  
 [*] 
  
 NOW, THEREFORE, in consideration of the mutual premises contained herein and for other good and valuable consideration, the
parties hereby amend the Amended Agreement as of the Amendment 3 Effective Date as follows: 
  

	 	1.	All references to Palm Platform Overseas Limited or Palm Ireland Investment shall be deemed henceforth to mean PalmSource Overseas Limited. All references to Palm Trademarks shall
be deemed henceforth to mean PSI Trademarks. 

  

	 	2.	The Term of the Agreement shall be extended for an additional two and one-half (2.5) years such that it shall expire at midnight on December 31, 2008. 

  

	 	3.	Section 3 of Exhibit D of the Amended Agreement shall be amended and restated as follows: 

	[*]	This provision is the subject of a Confidential Treatment Request. 

  

	    	Confidential treatment has been requested with respect to the omitted portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 

			
	

	  	AMENDMENT NO. 3 TO SOFTWARE LICENSE AGREEMENT

  
 “ROYALTIES

  

	 	a.	Notwithstanding anything to the contrary in the Agreement, including without limitation Section 4.2 thereof, the Royalties due and payable for the [*] shipped under the Agreement
(the “Initial Units Shipped”) including without limitation the [*] shipped by Licensee and paid for prior to [*], shall be [*]. 

  

	 	b.	[*] Payments for the portion of the Initial Units Shipped that is comprised of the [*] of Licensee Product shipped or otherwise distributed under the Agreement [*], shall be due and
payable in accordance with [*]. The actual amount to be paid (the “Actual Royalty Payment”) on any particular Due Date set forth in the schedule below shall be an amount equal to the greater of (a) [*], or (b) [*]. Together, the Actual
Royalty Payments and the [*] shall be referred to as the “Scheduled Royalty Payments.” Each Scheduled Royalty Payment shall be made on or before the applicable scheduled date and is [*], regardless of the actual number of units shipped or
otherwise distributed. All Actual Royalty Payments shall be due and payable on the dates set forth below, until [*] or the Agreement has expired or terminated in accordance with its terms. [*]. 

  
 [*] 
  
 In the event of [*] set forth herein and in the Agreement, [*] shall be [*] upon the effective date of termination;
provided that, for any units covered by any of the [*] that are [*] by such termination and are or would have been (but for such early termination) due and payable after August 24, 2005, [*]. The Royalties due and payable for any units shipped or
otherwise distributed in excess of the [*] and the Royalties due on any units shipped or otherwise distributed in excess of the full number of the Initial Units Shipped shall be charged at the rates set forth in Section 3(a) above. 
  

	 	c.	In the event that, during any particular Shipment Period, Licensee ships or otherwise distributes one or more units of Licensee Product on which a Royalty payment is due hereunder
in excess of the Scheduled Units (the “Unit Overage”), [*]. 

  
 [*]   This provision is the subject of a Confidential Treatment Request. 
  

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	  	AMENDMENT NO. 3 TO SOFTWARE LICENSE AGREEMENT

  

	 	4.	Commencing on the Amendment 3 Effective Date, the terms and conditions concerning Minimum Annual Shipments shall not apply to the Initial Units Shipped, and all terms in the
Agreement and its Exhibits with respect thereto shall be deemed void and without effect, including without limitation the portion of Section 4.2(d) commencing with the 3rd sentence. 

  

	 	5.	Section 2.3 (d) shall be amended and restated in its entirety as follows: 

  
 “Licensee acknowledges that PSI and Palm Trademark Holding Company, LLC own the exclusive rights in the PSI Trademarks. Licensee will not use nor
authorize any of its third party agents, customers, licensees or sublicensees to use PALM or PALMSOURCE or any other PSI Trademarks as part of any of its or their product, service, domain or company names and will not take nor authorize, and shall
take commercially reasonable efforts to require that its third party agents, customers, licensees or sublicensees will not take or authorize, any action inconsistent with PSI’s trademark rights during the Term of this Agreement or thereafter.
PSI reserves the right to change the PSI Trademarks licensed hereunder upon written notice to Licensee, and Licensee agrees that it shall, and shall use reasonable efforts to ensure that each of its Approved Contractors shall, promptly upon such
notice revise the Licensee Products accordingly and use only the then current PSI Trademarks applicable to the particular version of Palm OS licensed and distributed by Licensee under this Agreement. Nothing in this Agreement grants Licensee or its
third party agents, customers, licensees or sublicensees (including with out limitation any Approved Contractor) ownership or any rights in or to use the Palm PSI Trademarks, except for the right of Licensee to use the PSI Trademarks in accordance
with the license set forth in Section 2.3(c) hereof. PSI, or its Affiliates, assignees or successors in interest, will have the exclusive right to own, use, hold, apply for registration for, and register the PSI Trademarks during the Term of, and
after the expiration or termination of, this Agreement in any country or jurisdiction worldwide. Licensee acknowledges and agrees that during the Term of this Agreement and thereafter, neither it nor any of its third party agents, customers,
licensees or sublicensees (including with out limitation any Approved Contractor) has the right to nor will it attempt or authorize any third party to attempt to register any mark, or any domain name that includes the letter string “palm”
or any formatives, translations, 
  

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	  	AMENDMENT NO. 3 TO SOFTWARE LICENSE AGREEMENT

  
 transliterations,
homonyms, symbolic representations and derivatives of “PALM.” All use of the PSI Trademarks by Licensee or its third party agents, customers, licensees or sublicensees (including with out limitation any Approved Contractor) shall inure to
the benefit of, and be on behalf of, PSI or its Affiliates, or their assignees or successors in interest. Except as specifically set forth in this Agreement, no other licenses are granted by PSI to Licensee, whether by implication, estoppel or
otherwise. Unless otherwise authorized by PalmSource in writing or as otherwise stated in the then current PSI Trademark Policy Guidelines, Licensee shall use, and shall use commercially reasonable efforts to require its third party agents,
distributors and resellers to use, a legend substantially similar to the following on its website and all printed materials and products bearing the PSI Trademarks: “[Licensee’s name] uses the [insert the PSI Trademark(s) used] under
express license from PalmSource, Inc.” Further, all use by Licensee, its Approved Contractors and each member of its Reseller Channel of the PSI Trademarks must be strictly in accordance with the PSI Trademark Policy Guidelines and the PSI
Compatibility Trademark Program Guidelines.” 
  

	 	6.	Section 4 of Exhibit B is hereby amended such that, commencing on April 1, 2004, Licensee shall pay to PSI an annual maintenance and support fee equal to [*], which fee is due and
payable [*]. [*] of the annual fee shall cover Maintenance Services under the Agreement for the version of Palm OS licensed thereunder as of the Amendment 3 Effective Date. The remaining [*] shall cover the [*], which together provides up to [*]
defined under Exhibit E hereto (“Support Services”), which services shall be provided as set forth in Section 7 of the Agreement. The term “Maintenance Services” means the maintenance services described in Section 6 of the
Agreement. 

  

	 	7.	All other terms and conditions remain the same, in full force and effect. 

  
 This Amendment may be executed in two (2) or more counterparts, each of which shall be deemed an original, but both of which together shall constitute one
and the same instrument. If this Amendment is executed in counterparts, no signatory hereto shall be bound until both the parties named below have duly executed or caused to be duly executed a counterpart of this Amendment. 
  
 [*]   This provision is the subject of a Confidential Treatment Request.

  

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	  	AMENDMENT NO. 3 TO SOFTWARE LICENSE AGREEMENT

  

							
	 PalmSource, Inc.
	 	 AlphaSmart, Inc.

				
	 By:
	 	 /s/ Al Wood

	 	 By:
	 	 /s/ James M. Walker

	 Name:
	 	 Al Wood
	 	 Name:
	 	 James M. Walker

	 Title:
	 	 CFO
	 	 Title:
	 	 COO/CFO

	 Date:
	 	 2/27/04
	 	 Date:
	 	 2/27/04

  

			
	 PalmSource Overseas Limited

		
	 By:
	 	 /s/ Al Wood

	 Name:
	 	 Al Wood

	 Title:
	 	 CFO

	 Date:
	 	 2/27/04

  

 5Employment Agreement with Jack Brucker

 Exhibit 10.16(l) 
  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (“Agreement”) is made and entered into by and between JACK BRUCKER (“Executive”) and RURAL/METRO
CORPORATION, its subsidiaries, affiliates, joint ventures and partnerships (“Rural/Metro”). The Effective Date of this Agreement is January 1, 2004. 
  

R E C I T A L S 
  
 A. The Board of Directors of Rural/Metro believes it is in the best interests of Rural/Metro to employ Executive as the President and Chief Executive
Officer of Rural/Metro. The Board of Directors believes that Executive has been, is and is expected to continue to be, a key contributor to the success of Rural/Metro. Due to Executive’s experience as the Chief Executive Officer, President and
the former Chief Operating Officer of Rural/Metro, Executive has particular skills and knowledge that the Board of Directors believes is imperative to retain for the benefit of Rural/Metro, its customers and all of its financial stakeholders.

  
 B. Rural/Metro has decided to offer Executive an amended and
restated employment agreement, the terms and provisions of which are set forth below. Rural/Metro and Executive each desire to enter into this Agreement and, by doing so, mutually establish and maintain a meaningful long-term commitment to each
other based upon the terms and provisions herein. 
  
 NOW,
THEREFORE, IT IS HEREBY MUTUALLY AGREED AS FOLLOWS: 
  

	 	1.	POSITION AND DUTIES. 

  
 Executive will be employed as the President and Chief Executive Officer of Rural/Metro and shall report only to the Board of Directors of Rural/Metro (the
“Board”). Executive shall perform the duties of his position, as determined by the Board, in accordance with the policies, practices and bylaws of Rural/Metro. Executive shall serve Rural/Metro faithfully, loyally, honestly and to the best
of his ability. Executive will devote his best efforts to the performance of his duties for, and in the business and affairs of, Rural/Metro. Rural/Metro reserves the right, in its sole discretion, to change or modify Executive’s position,
title and duties during the term of this Agreement, subject to Executive’s rights under Section 6. 
  

	 	2.	COMPENSATION. 

  
 As of the Effective Date, Executive’s annual compensation will be $1,200,000 (“Base Salary”). The Base Salary shall be adjusted annually
for increases (but not decreases) in the 12-month percent change in the Consumer Price Index maintained by the US Department of Labor’s Bureau of 

  

					
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Labor Statistics (“BLS”) for the following Consumer Price Index (“CPI”): population coverage is “CPI-U”; area coverage is
“Unadjusted US City Average”; series title is “All Items”; and base period index is “1982-1984=100” (or such other more recent base period index that is maintained by the BLS and that will permit a fair and reasonable
analysis of the 12-month percent change). Such adjustment to Executive’s Base Salary shall be made effective January 1 of each year based upon the most recent CPI then available for a 12-month comparison. Executive’s Base Salary will be
paid in substantially equal periodic installments as determined by Rural/Metro. Except as provided in the second sentence of this Section, it is the specific intention of the parties that the Base Salary shall not be increased during the term of
this Agreement. Further, Executive shall not be eligible to participate in the Rural/Metro Management Incentive Program (“MIP”) or any similar or successor plan. 
  

	 	3.	RETENTION BONUS. 

  
 On the Effective Date, Rural/Metro shall pay Executive a sum (the “Retention Bonus”) equal to $1,000,000 plus an additional amount in cash equal
to the sum of all taxes including, without limitation, any federal, state and local income taxes, payable by Executive as a result of the receipt of the Retention Bonus. The purpose of the Retention Bonus is to provide additional encouragement for
Executive to maintain the employment relationship during the entire term of this Agreement. If, nevertheless, Executive terminates the employment relationship without Good Reason (as defined in Section 6A), or Rural/Metro terminates the employment
relationship for Cause (as defined in Section 5A), Executive shall pay Rural/Metro an amount equal to the Retention Bonus. If Executive terminates the employment relationship with Good Reason, or Rural/Metro terminates the employment relationship
without Cause or due to Disability (as defined in Section 7), Executive shall pay Rural/Metro that fraction of the Retention Bonus having a numerator equal to the number of days between the termination date and December 31, 2010, and a denominator
of 2,555. Any payment required from Executive pursuant to this Section 3 shall be made in a lump sum, in the full amount, not later than thirty (30) days after the effective date of termination. Amounts payable under this Section 3 that are
delinquent shall bear interest at the prime lending rate of Citibank, N.A., as published in the Wall Street Journal on the close of business on the last business day prior to the date payment was due hereunder (“Interest Rate”).
Executive’s receipt of the Retention Bonus shall be taken into account in evaluating the level of Executive’s participation and award, if any, in any future equity incentive programs established by Rural/Metro. 
  

	 	4.	TERM AND TERMINATION. 

  
 This Agreement will continue in full force and effect until it is terminated by the parties. This Agreement may be terminated in any of the following
ways: (a) it may be renegotiated and replaced 

  

					
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by a written agreement signed by both parties; (b) Rural/Metro may elect to terminate this Agreement with or without “Cause”, as defined below; (c)
Executive may elect to terminate this Agreement with or without “Good Reason”, as defined below; (d) either party may serve notice on the other of its desire to terminate this Agreement at the end of the “Initial Term” or any
“Renewal Term”, or (e) this Agreement may terminate automatically upon Executive’s death or Disability pursuant to Section 7. 
  
 The “Initial Term” of this Agreement shall expire by its terms on December 31, 2010, unless sooner terminated in accordance with the provisions
of this Agreement. This Agreement will be renewed at the end of the Initial Term for additional one-year periods (a “Renewal Term”), unless either party serves notice of its desire not to renew this Agreement on the other, in which case
Executive shall receive no Severance Benefits. Such notice must be given at least one hundred eighty (180) days before the end of the Initial Term or the applicable Renewal Term. 
  

	 	5.	TERMINATION BY RURAL/METRO 

  

	 	A.	Termination For Cause. 

  
 Rural/Metro may terminate this Agreement and Executive’s employment for Cause at any time upon written notice. This means that Rural/Metro has the
right to terminate the employment relationship for Cause at any time should there be Cause to do so. 
  
 For purposes of this Agreement, “Cause” shall be limited to discharge resulting from a determination by an affirmative vote of 75% of the
members of the Board of Directors then in office that Executive: (a) has been convicted of (or has pleaded guilty or no contest to) a felony involving dishonesty, fraud, theft or embezzlement; (b) has repeatedly failed or refused, in a material
respect to follow reasonable policies or directives established by Rural/Metro, if the failure or refusal has not been cured within sixty (60) days after Rural/Metro has provided written notice to Executive of the specific conduct constituting such
failure or refusal; (c) has willfully and persistently failed or refused to attend to material duties or obligations imposed upon him under this Agreement, if the failure or refusal has not been cured within sixty (60) days after Rural/Metro has
provided written notice to Executive of the specific conduct constituting such failure or refusal; or (d) has misrepresented or concealed a material fact for purposes of securing employment with Rural/Metro or this Employment Agreement. The
existence of “Cause” shall be determined by Rural/Metro’s Board of Directors acting in good faith after prior notice to Executive and after providing Executive with an opportunity to be heard in a meeting with the Board of Directors.

  

					
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 Because Executive is in a position which involves great responsibilities, Rural/Metro is not required to
utilize its progressive discipline policy. In addition, no generally applicable grievance policy shall apply to grievances by Executive regarding his employment relationship with Rural/Metro. 
  
 If this Agreement and Executive’s employment is terminated for Cause,
Executive shall receive no Severance Benefits. 
  

	 	B.	Termination Without Cause. 

  
 Rural/Metro also may terminate this Agreement and Executive’s employment without Cause at any time after providing Executive with sixty (60) days
advance written notice. In the event this Agreement and Executive’s employment are terminated by Rural/Metro without Cause, Executive shall receive the Severance Benefits pursuant to Section 8. Rural/Metro may place Executive on a paid
administrative leave, and bar or restrict Executive’s access to Rural/Metro facilities, contemporaneously with or at any time following the delivery of the written notice to Executive. For the avoidance of doubt, any action by Rural/Metro
pursuant to the foregoing sentence shall not constitute Good Reason or otherwise constitute a breach of this Agreement by Rural/Metro, and the foregoing sentence or any action by Rural/Metro pursuant thereto shall in no way limit or reduce the
rights of Rural/Metro as provided elsewhere herein. 
  

	 	6.	TERMINATION BY EXECUTIVE. 

  
 Executive may terminate this Agreement and his employment with or without “Good Reason” in accordance with the provisions of this Section 6.

  

	 	A.	Termination For Good Reason. 

  
 Executive may terminate this Agreement and his employment for “Good Reason” by giving written notice to Rural/Metro within sixty (60) days, or
such longer period as may be agreed to in writing by Rural/Metro, of Executive’s receipt of notice of the occurrence of any event constituting “Good Reason”, as described below. 
  
 Executive shall have “Good Reason” to terminate this Agreement and
his employment upon the occurrence of any of the following events: (a) Executive is assigned duties inconsistent with the positions, duties, responsibility and status of the President and Chief Executive Officer of Rural/Metro; (b) Executive is
required to relocate to an employment location that is more than fifty (50) miles from his current employment location (which the parties agree is Rural/Metro’s present Scottsdale headquarters); or (c) Executive’s Base Salary rate is
reduced to a level that is at least ten percent (10%) less than the salary paid to Executive during any prior calendar year, unless Executive has agreed to said reduction. 
  

					
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 Notwithstanding the above provisions, Executive shall not have “Good Reason” to terminate this
Agreement and his employment if, within thirty (30) days of the written notice of Good Reason provided to Rural/Metro by Executive, Rural/Metro corrects, remedies or reverses any event which resulted in Good Reason. 
  
 If Executive terminates this Agreement and his employment for Good Reason,
Executive shall be entitled to receive Severance Benefits pursuant to Section 8. 
  

	 	B.	Termination Without Good Reason. 

  
 Executive also may terminate this Agreement and his employment without Good Reason at any time by giving sixty (60) days notice to Rural/Metro. If
Executive terminates this Agreement and his employment without Good Reason, Executive shall not receive Severance Benefits pursuant to Section 8. 
  

	 	C.	Administrative Leave. 

  
 Rural/Metro may place Executive on a paid administrative leave, and bar or restrict Executive’s access to Rural/Metro facilities, contemporaneously
with or at any time following the delivery of the written notice of termination by Executive pursuant to Section 6A or 6B. For the avoidance of doubt, any action by Rural/Metro pursuant to the foregoing sentence shall not constitute Good Reason or
otherwise constitute a breach of this Agreement by Rural/Metro, and the foregoing sentence or any action by Rural/Metro pursuant thereto shall in no way limit or reduce the rights of Rural/Metro as provided elsewhere herein. 
  

	 	7.	DEATH OR DISABILITY. 

  
 This Agreement will terminate automatically on Executive’s death. Any compensation or other amounts due to Executive for services rendered prior to
his death shall be paid to Executive’s surviving spouse, or if Executive does not leave a surviving spouse, to Executive’s estate. If Executive is receiving Severance Benefits at the time of his death, the monetary portion of
Executive’s Severance Benefits shall be paid to Executive’s surviving spouse, or if Executive does not leave a surviving spouse, to Executive’s estate, for the balance of the Benefit Period (as defined in Section 8) remaining at the
time of Executive’s death. In addition, if, at the time of his death, Executive is receiving Severance Benefits that include the continuation of health, medical, dental, vision or pharmaceutical insurance benefits (as described in Section 8),
and Executive’s surviving spouse is covered by such health, medical, dental, vision or pharmaceutical insurance benefits through Rural/Metro at the time of Executive’s death, then such coverage of Executive’s surviving spouse shall
continue throughout the balance of the Benefit 

  

					
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Period. No other benefits shall be payable to Executive’s heirs pursuant to this Agreement, but amounts may be payable pursuant to any life insurance or
other benefit plans maintained by Rural/Metro. 
  
 In the event
Executive becomes “Disabled,” Executive’s employment hereunder and Rural/Metro’s obligation to pay Executive’s Base Salary (less any amounts payable to Executive pursuant to any long-term disability insurance policy paid for
by Rural/Metro) shall continue for a period of six (6) months from the date as of which Executive is determined to have become Disabled, at which point, Executive’s employment hereunder shall automatically cease and terminate. Executive shall
be considered “Disabled” or to be suffering from a “Disability” for purposes of this Section 7 if Executive is unable, after any reasonable accommodations required by the Americans with Disabilities Act or other applicable law,
to perform the essential functions of his position because of a physical or mental impairment. In the absence of agreement between Rural/Metro and Executive as to whether Executive is Disabled or suffering from a Disability (and the date as of which
Executive became Disabled), such determinations shall be made by a licensed physician selected by Rural/Metro. If a licensed physician selected by Executive disagrees with the determination of the physician selected by Rural/Metro, the two
physicians shall select a third physician. The decision of the third physician concerning whether Executive is Disabled or suffering from a Disability (and the date as of which Executive became Disabled) shall be binding and conclusive on all
interested parties. 
  

	 	8.	SEVERANCE BENEFITS. 

  
 If during the Initial Term or any Renewal Term, this Agreement and Executive’s employment are terminated without Cause by Rural/Metro as set forth in
Section 5B prior to the last day of the Initial Term or any Renewal Term, or if Executive elects to terminate this Agreement for Good Reason as set forth in Section 6A, Executive shall receive the “Severance Benefits” provided by this
Section. In addition, Executive also shall receive the Severance Benefits if his employment is terminated due to Disability as set forth in Section 7. 
  
 The Severance Benefits shall begin immediately following the effective date of termination of employment and, except as otherwise provided herein, will
continue to be payable for a period (the “Benefit Period”) equal to (a) five (5) years, if employment is terminated on or before December 31, 2005, or (b) the greater of (i) two (2) years or (ii) five (5) years minus the number of days
from January 1, 2006 through and including the effective date of termination of employment, if employment is terminated on or after January 1, 2006. 
  
 The Executive’s Severance Benefits shall consist of the monthly sum of $66,667 for the Benefit Period, less lawfully required withholdings, and shall
be paid in accordance with Rural/Metro’s 

  

					
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generally-applicable payroll practices. Such Severance Benefits shall be paid in lieu of any accrued vacation time. Delinquent amounts shall bear interest at
the Interest Rate. The Severance Benefits also shall consist of the continuation of any health, medical, dental, vision or pharmaceutical coverage that Executive was participating in as of the last day of active employment. These coverages shall be
continued under COBRA beginning the first day of the month following the effective termination date and shall continue for the duration of the Benefit Period provided that Executive satisfactorily complies with all COBRA election requirements.
During the Benefit Period, Executive shall continue to pay the same premiums paid as of the last day of active employment. Executive’s life insurance coverage may be converted to an individual policy within 30 days of the effective termination
date. Upon conversion, the cost of maintaining an individual policy resides with Executive. If a particular insurance benefit may not be continued for any reason, Rural/Metro shall pay a “Benefit Allowance” to the Executive. The
“Benefit Allowance” will equal 145% of the cost to Rural/Metro of providing the unavailable insurance benefit to a similarly situated employee. The Benefit Allowance shall be paid on a monthly basis or in a single lump sum. The cost of
providing the unavailable benefit to a similarly situated employee and whether the Benefit Allowance will be paid in monthly installments or in a lump sum will be determined by Rural/Metro in the exercise of its discretion. 
  
 In addition, the vesting of any stock options or any other equity based
compensation or incentive award that vests over time (collectively, “Equity”), which were issued by Rural/Metro to Executive and are held by Executive at the effective date of termination of employment, shall be accelerated such that the
Equity shall be fully vested on the effective date of the termination of employment, and such Equity shall remain fully vested and exercisable until two years after the effective date of the termination of employment; provided, however, that if the
exercise period relating to an incentive stock option granted in compliance with Section 422 of the Internal Revenue Code would be exceeded by application of the foregoing, then the incentive stock option shall be considered to be a non-qualified
stock option. 
  
 If Executive voluntarily terminates this
Agreement and his employment without Good Reason prior to the end of the Initial Term or any Renewal Term, or if Rural/Metro terminates the Agreement and Executive’s employment for Cause, no Severance Benefits shall be paid to Executive. No
Severance Benefits are payable in the event of Executive’s death, except as set forth in Section 7. 
  
 Severance Benefits will cease if Executive elects to forgo future Severance Benefits pursuant to Section 11G in order to avoid any further restrictions on
his ability to engage in a competing business or to solicit employees or clients. If Executive makes an election pursuant to Section 11G, the Severance Benefits will cease as of the effective date of the election. As a general rule, notwithstanding

  

					
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any contrary provision in any Stock Option Agreement or this Section 8, Executive will not be allowed to exercise any stock options following the effective
date of an election made pursuant to Section 11G. 
  
 Severance
Benefits and Executive’s right to exercise any stock options also shall immediately cease if Executive commits a material violation of any of the terms of this Agreement relating to confidentiality and non-disclosure, as set forth in Section
10, or the Covenant-Not-To-Compete, as set forth in Section 11. Only material violations will result in the loss of Severance Benefits and the ability to exercise stock options. In addition, if a violation, even if material, is one that may be
cured, the violation will not be considered to be material unless Executive fails to cure said violation within sixty (60) days after receiving written notice of said violation from Rural/Metro or unless Executive repeats said violation at any time
after receiving said notice. 
  
 The payment of Severance Benefits
shall not be affected by whether Executive seeks or obtains other employment. Executive shall have no obligation to seek or obtain other employment and Executive’s Severance Benefits shall not be impacted by Executive’s failure to
“mitigate.” 
  
 Notwithstanding anything in this
Agreement to the contrary, as a condition precedent to Executive’s right to receive the Severance Benefits, Executive must (i) execute any release reasonably requested by Rural/Metro, which shall include without limitation a mutual release of
the parties and their respective heirs, officers, directors, employees, successors and assigns, of all claims, costs, losses and liabilities whatsoever, arising on or prior to the effective date of termination, that each party may have in connection
with Executive’s employment or the cessation of his employment with Rural/Metro, and a mutual agreement of non-disparagement; and (ii) have completed full repayment of the Retention Bonus to the extent required in Section 3 of this Agreement.

  
 Notwithstanding anything in this Agreement to the contrary,
and without limiting Rural/Metro’s other rights or remedies, Rural/Metro in its sole discretion may elect to offset amounts otherwise payable to Executive under this Section 8 against amounts payable to Rural/Metro under Section 3. 

 

	 	9.	BENEFITS. 

  

	 	A.	Benefit Plans, Insurance, Options, etc. 

  
 Subject to the last sentence of Section 2 and the last sentence of Section 3, Executive will be entitled to participate in any benefit plans, including,
but not limited to, retirement plans, stock option plans, equity compensation or incentive plans, disability plans, life insurance plans and health, medical, dental, vision and pharmaceutical plans available to other Rural/Metro executive employees,
subject to any restrictions (including waiting periods) specified in said plans. 
  

					
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	 	B.	Vacation. 

  
 Executive is entitled to four (4) weeks of paid vacation per calendar year, with such vacation to be scheduled and taken in accordance with
Rural/Metro’s standard vacation policies. If Executive does not take the full vacation available in any year, the unused vacation may not be carried over to the next calendar year, and Executive will not be compensated for it. 
  

	 	10.	CONFIDENTIALITY; NON-DISCLOSURE; OWNERSHIP OF WORK. 

  

	 	A.	Confidentiality; Non-Disclosure. 

  
 During the course of his employment, Executive will become exposed to a substantial amount of confidential and proprietary information, including, but not
limited to, financial information, annual reports, audited and unaudited financial reports, operational budgets and strategies, methods of operation, customer lists, strategic plans, business plans, marketing plans and strategies, new business
strategies, merger and acquisition strategies, management systems programs, computer systems, personnel and compensation information and payroll data, and other such reports, documents or information (collectively the “Confidential and
Proprietary Information”). In the event his employment is terminated by either party for any reason, Executive promises that he will not, retain, take with him or make any copies of such Confidential and Proprietary Information in any form,
format, or manner whatsoever (including computer print-outs, computer tapes, floppy disks, CD-ROMs, etc.) nor will he disclose the same in whole or in part to any person or entity, in any manner either directly or indirectly. Excluded from this
Agreement is information that (i) is or becomes publicly known through no violation of this Agreement, (ii) is lawfully received by the Executive from any third party without restriction on disclosure or use, (iii) is required to be disclosed by
law, or (iv) is expressly approved in writing by Rural/Metro for release or other use by the Executive. The provisions of this paragraph shall survive the termination of this Agreement. 
  

	 	B.	Ownership of Work, Materials and Documents. 

  
 All records, reports, notes, compilations, software, programs, designs and/or other recorded or created matters, copies thereof or reproductions, in
whatever media form, relating to Rural/Metro’s trade secrets, operations, activities, or business, made or received by Executive during any past, present or future employment with Executive are and shall be works made for hire and are, or shall
become the exclusive property of Rural/Metro. Failure to return Rural/Metro’s property, whether during the term of this Agreement or after its termination, shall be a breach of this Agreement. The provisions of this paragraph shall survive the
termination of this Agreement. 
  

					
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	 	11.	COVENANT-NOT-TO-COMPETE. 

  

	 	A.	Interests to be Protected. 

  
 The parties acknowledge that during the term of his employment, Executive will perform essential services for Rural/Metro, its employees and shareholders,
and for clients of Rural/Metro. Therefore, Executive will be given an opportunity to meet, work with and develop close working relationships with Rural/Metro’s clients on a first-hand basis and will gain valuable insight as to the clients’
operations, personnel and need for services. In addition, Executive will be exposed to, have access to, and be required to work with, a considerable amount of Rural/Metro’s Confidential and Proprietary Information. 
  
 The parties also expressly recognize and acknowledge that the personnel of
Rural/Metro have been trained by, and are valuable to Rural/Metro, and that if Rural/Metro must hire new personnel or retrain existing personnel to fill vacancies it will incur substantial expense in recruiting and training such personnel. The
parties expressly recognize that should Executive compete with Rural/Metro in any manner whatsoever, it could seriously impair the goodwill and diminish the value of Rural/Metro’s business. 
  
 The parties acknowledge that this covenant has an extended duration; however,
they agree that this covenant is reasonable and it is necessary for the protection of Rural/Metro. 
  
 For these and other reasons, and the fact that there are many other employment opportunities available to Executive if he should terminate, the parties
are in full and complete agreement that the following restrictive covenants (which together are referred to as the “Covenant-Not-To-Compete”) are fair and reasonable and are freely, voluntarily and knowingly entered into. Further, each
party has been given the opportunity to consult with independent legal counsel before entering into this Agreement. 
  

	 	B.	Devotion to Employment. 

  
 Executive shall devote substantially all his business time and efforts to the performance of his duties on behalf of Rural/Metro. During his term of
employment, Executive shall not at any time or place or to any extent whatsoever, either directly or indirectly, without the express written consent of Rural/Metro, engage in any outside employment, or in any activity competitive with or adverse to
Rural/Metro’s business, practice or affairs, whether alone or as partner, officer, director, employee, shareholder of any corporation or as a trustee, fiduciary, consultant or other representative. This is not intended to prohibit Executive
from engaging in nonprofessional activities such as personal investments or conducting to a reasonable extent private business affairs which may include other boards of directors’ 

  

					
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activity, as long as they do not conflict with Rural/Metro. Participation to a reasonable extent in civic, social or community activities is encouraged.
Notwithstanding anything herein to the contrary, any non-Rural/Metro activities shall be conducted in compliance with Rural/Metro’s corporate governance policies and other policies and procedures as in effect from time to time. 
  

	 	C.	Non-Solicitation of Clients. 

  
 During the term of Executive’s employment with Rural/Metro and for a period, after the termination of employment with Rural/Metro, equal to (a) five
(5) years, if employment is terminated on or before December 31, 2005, or (b) the greater of (i) two (2) years or (ii) five (5) years minus the number of days from January 1, 2006 through and including the effective date of termination of
employment, if employment is terminated on or after January 1, 2006 (the “Non-Compete Period”), regardless of who initiates the termination and for whatever reason, Executive shall not directly or indirectly, for himself, or on behalf of,
or in conjunction with, any other person(s), company, partnership, corporation, or governmental entity, in any manner whatsoever, call upon, contact, encourage, handle or solicit client(s) of Rural/Metro with whom he has worked as an employee of
Rural/Metro at any time prior to termination, or at the time of termination, for the purpose of soliciting or selling such customer the same, similar, or related services that he provided on behalf of Rural/Metro. 
  

	 	D.	Non-Solicitation of Employees. 

  
 During the term of Executive’s employment with Rural/Metro and for the Non-Compete Period, regardless of who initiates the termination and for any
reason, Executive shall not knowingly, directly or indirectly, for himself, or on behalf of, or in conjunction with, any other person(s), company, partnership, corporation, or governmental entity, seek to hire, and/or hire any of Rural/Metro’s
personnel or employees for the purpose of having such employee engage in services that are the same, similar or related to the services that such employee provided for Rural/Metro. 
  

	 	E.	Competing Business. 

  
 During the term of this Agreement and for the Non-Compete Period, regardless of who initiates the termination and for any reason, Executive shall not,
directly or indirectly, for himself, or on behalf of, or in conjunction with, any other person(s), company, partnership, corporation, or governmental entity, in any manner whatsoever, engage in the same or similar business as Rural/Metro, which
would be in direct competition with any Rural/Metro line of business, in any geographical service area where Rural/Metro is engaged in business, or was considering engaging in business at any time prior to the termination or at the time of the
termination. For the purposes of this provision, the term “competition” 

  

					
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shall mean directly or indirectly engaging in or having a substantial interest in a business or operation which is, or will be, performing the same services
provided by Rural/Metro. 
  

	 	F.	Extension of Period. 

  
 Executive agrees that the Non-Compete Period referred to in subsections C, D and E shall be extended for a period of time equal to the duration of any
breach of this Agreement by Executive, but in no event longer than six (6) months. 
  

	 	G.	Election to Shorten Period. 

  
 Executive may elect to shorten the Non-Compete Period referred to in subsections C, D and E to any period of at least twelve (12) months, provided that
Executive is not in breach of such subsections at the time of such election. In order to make this election, Executive must have completed full repayment of the Retention Bonus to the extent required in Section 3 of this Agreement, and must provide
Rural/Metro with written notice at least sixty (60) days prior to the expiration of the shortened period. As provided in Section 8, if Executive makes this election, any Severance Benefits provided by Section 8 will be discontinued as of the
effective date of the election. 
  

	 	H.	Automatic Reduction of Period. 

  
 If Executive has completed full repayment of the Retention Bonus to the extent required in Section 3 of this Agreement, the Non-Compete Period referred to
in subsections C, D and E shall be shortened to twelve (12) months if Executive is not entitled to receive Severance Benefits pursuant to Section 8 at the time of his termination of employment. 
  

	 	I.	Judicial Amendment. 

  
 If the scope of any provision of this Agreement is found by the Court to be too broad to permit enforcement to its full extent, then such provision shall
be enforced to the maximum extent permitted by law. The parties agree that the scope of any provision of this Agreement may be modified by a judge in any proceeding to enforce this Agreement, so that such provision can be enforced to the maximum
extent permitted by law. If any provision of this Agreement is found to be invalid or unenforceable for any reason, it shall not affect the validity of the remaining provisions of this Agreement. 
  

	 	J.	Injunctive Relief, Damages and Forfeiture. 

  
 Due to the nature of Executive’s position with Rural/Metro, and with full realization that a violation of Sections 10 and 11 will cause immediate and
irreparable injury and damage, which is not readily measurable, and to protect Rural/Metro’s interests, Executive understands and agrees that in 

  

					
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addition to instituting legal proceedings to recover damages resulting from a breach of this Agreement, Rural/Metro may seek to enforce this Agreement with
an action for injunctive relief, to cease or prevent any actual or threatened violation of this Agreement on the part of Executive. Likewise, Executive can seek injunctive relief for any action Executive may elect to bring relating to Sections 10
and 11. 
  

	 	K.	Survival. 

  
 The provisions of this Section 11 shall survive the termination of this Agreement. 
  

	 	12.	BUSINESS EXPENSES. 

  
 Rural/Metro will reimburse Executive for any and all necessary, customary, and usual expenses, properly receipted in accordance with Rural/Metro’s
policies, incurred by Executive on behalf of Rural/Metro. 
  

	 	13.	AMENDMENTS. 

  
 This Agreement, the Executive’s Indemnity Agreement, Stock Option Agreements and the Executive’s Change of Control Agreement constitute the
entire agreement between the parties as to the subject matter hereof, and all prior Employment Agreements are being terminated as of the Effective Date. Accordingly, there are no side agreements or verbal agreements other than those which are stated
above. Any amendment, modification or change in this Agreement must be done so in writing and signed by both parties. Nothing in this Agreement is intended to alter or modify Executive’s Indemnity Agreement or Stock Option Agreements, which
shall continue in full force and effect following the execution of this Agreement. 
  

	 	14.	SEVERABILITY. 

  
 In the event a court or arbitrator declares that any provision of this Agreement is invalid or unenforceable, it shall not affect or invalidate any of the
remaining provisions. Further, the court shall have the authority to re-write that portion of the Agreement it deems unenforceable, to make it enforceable. 
  

	 	15.	GOVERNING LAW. 

  
 The law of the State of Arizona shall govern the interpretation and application of all of the provisions of this Agreement. 
  

					
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	 	16.	DISPUTE RESOLUTION. 

  

	 	A.	Mediation. 

  
 Any and all disputes arising under, pertaining to or touching upon this Agreement or the statutory rights or obligations of either party hereto, shall, if
not settled by negotiation, be subject to non-binding mediation before an independent mediator selected by the parties pursuant to Section 16D. Notwithstanding the foregoing, both Executive and Rural/Metro may seek preliminary judicial relief if
such action is necessary to avoid irreparable damage during the pendency of the proceedings described in this Section 16. Any demand for mediation shall be made in writing and served upon the other party to the dispute, by certified mail, return
receipt requested, at the business address of Rural/Metro, or at the last known residence address of Executive, respectively. The demand shall set forth with reasonable specificity the basis of the dispute and the relief sought. The mediation
hearing will occur at a time and place convenient to the parties in Maricopa County, Arizona, within thirty (30) days of the date of selection or appointment of the mediator. 
  

	 	B.	Arbitration. 

  
 In the event that the dispute is not settled through mediation, the parties shall then proceed to binding arbitration before a single independent
arbitrator selected pursuant to Section 18D. The mediator shall not serve as arbitrator. TO THE EXTENT ALLOWABLE UNDER APPLICABLE LAW, ALL DISPUTES INVOLVING ALLEGED UNLAWFUL EMPLOYMENT DISCRIMINATION, BREACH OF CONTRACT, OR EMPLOYMENT TORT
COMMITTED BY RURAL/METRO OR A REPRESENTATIVE OF RURAL/METRO, INCLUDING CLAIMS OF VIOLATIONS OF FEDERAL OR STATE DISCRIMINATION STATUTES OR PUBLIC POLICY, SHALL BE RESOLVED PURSUANT TO THIS AGREEMENT AND THERE SHALL BE NO RECOURSE TO COURT, WITH OR
WITHOUT A JURY TRIAL. The arbitration hearing shall occur at a time and place convenient to the parties in Maricopa County, Arizona, within thirty (30) days of selection or appointment of the arbitrator. If Rural/Metro has adopted a policy that is
applicable to arbitrations with executives, the arbitration shall be conducted in accordance with said policy to the extent that the policy is consistent with this Agreement and the Federal Arbitration Act, 9 U.S.C. §§ 1-16. If no such
policy has been adopted, the arbitration shall be governed by the National Rules for the Resolution of Employment Disputes of the American Arbitration Association (“AAA”) in effect on the date of the first notice of demand for arbitration.
The arbitrator shall issue written findings of fact and conclusions of law, and an award, within thirty (30) days of the date of the hearing unless the parties otherwise agree. 
  

					
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	 	C.	Damages. 

  
 In cases of breach of contract, damages shall be limited to contract damages. In cases of discrimination claims prohibited by statute, the arbitrator may
direct payment consistent with the applicable statute. In cases of employment tort, the arbitrator may award punitive damages if proved by clear and convincing evidence. The arbitrator may award fees to the prevailing party and assess costs of the
arbitration to the non-prevailing party. Issues of procedure, arbitrability, or confirmation of award shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16, except that Court review of the arbitrator’s award shall be that
of an appellate court reviewing a decision of a trial judge sitting without a jury. 
  

	 	D.	Selection of Mediators or Arbitrators. 

  
 The parties shall select the mediator or arbitrator from a panel list made available by the AAA. If the parties are unable to agree to a mediator or
arbitrator within thirty (30) days of receipt of a demand for mediation or arbitration, the mediator or arbitrator will be chosen by alternatively striking from a list of five (5) mediators or arbitrators obtained by Rural/Metro from AAA. Executive
shall have the first strike. 
  

	 	17.	MISCELLANEOUS. 

  

	 	A.	Non-Waiver. 

  
 The failure in any one or more instances of a party to insist upon performance of any of the terms, covenants or conditions of this Agreement, to exercise
any right or privilege conferred in this Agreement, or the waiver by said party of any breach of any of the terms, covenants or conditions of this Agreement, shall not be construed as a subsequent waiver of any such terms, covenants, conditions,
rights or privileges, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving
party. 
  

	 	B.	Construction; Counterparts. 

  
 This Agreement shall be construed fairly as to both parties and not in favor of or against either party, regardless of which party prepared the Agreement.
This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, and all such counterparts shall constitute but one instrument. 
  

					
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	 	C.	Notices. 

  
 All notices required or permitted to be given hereunder shall be deemed given when delivered in person, or three (3) business days after being placed in
the hands of a courier service (e.g., DHL or Federal Express) prepaid or faxed provided that a confirming copy is delivered forthwith as herein provided, addressed, when to Executive, at the last known mailing address in Rural/Metro’s human
resources files, and, when to Rural/Metro, at the mailing address of the corporate headquarters and to the attention of Rural/Metro’s General Counsel, and/or to such other respective addresses and/or addressees as may be designated by notice
given in accordance with the provisions of this Section. 
  
 [Signature Page Immediately Follows] 
  

					
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 IN WITNESS WHEREOF, Rural/Metro and Executive have executed this Agreement. 
  

									
	 EXECUTIVE
	 	 	 	 RURAL/METRO CORPORATION

				
	/s/    JACK BRUCKER        	 	 	 	By:	 	/s/    MARY ANNE CARPENTER        
	
	 	 	 	 	 	

	Jack Brucker	 	 	 	 	 	 Mary Anne Carpenter
 Chairman, Compensation Committee

  

					
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