Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.11    
  

EMPLOYMENT AGREEMENT  

        This EMPLOYMENT AGREEMENT is made this 9th day of April, 2002, (the "Agreement") between HealthTronics Surgical Services Inc., a Georgia corporation (the
"Company"), and Ted S. Biderman (the "Executive"). 

PRELIMINARY STATEMENTS  

        A.    The
Company desires to secure the services of the Executive and the Executive desires to be employed by the Company, on the terms and subject to the conditions set forth
in this Agreement. 

        B.    The
Executive is a key employee of the Company and his services and knowledge with respect to the Company and its business strategies and operations are critical to
maintaining the Company's position in its industry against its competitors. 

        C.    The
Compensation Committee ("Compensation Committee") of the Board of Directors of the Company (the "Board") has approved the execution and delivery by the Company of
this Agreement. 

AGREEMENT  

        NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, the parties agree as follows: 

        1.    Employment.
The Company hereby agrees to employ the Executive and the Executive hereby agrees to serve the Company, on the terms and conditions set forth in this
Agreement. 

        2.    Term
of Agreement. This Agreement shall be deemed to commence on April 15, 2002, and unless it is terminated earlier in the manner provided in this Agreement,
shall continue for a term of one (1) year and upon each anniversary date of this Agreement shall be deemed to automatically renew for a new one year term from such anniversary date (the
"Term"). Not later than sixty (60) days prior to each anniversary date of this Agreement, either party shall have the right to provide written notice of his or its intention to have the
Agreement expire at the end of the then pending one-year term period without automatic renewal. 

        3.    Position
and Duties. The Executive shall serve as the Senior Vice President and General Counsel of the Company and shall coordinate all legal affairs of the Company. The
Executive shall report to the Chief Executive Officer, and shall have such other powers and duties as may from time to time be delegated to him by the Chief Executive Officer or, following a Change in
Control (as defined below), the senior executive, board or committee established pursuant to the terms of the Change of Control that is responsible for the unit, division or subsidiary of which the
Company has become a part; provided that such duties are generally consistent with his present duties and with the Executive's position. The Executive shall devote substantially all of his working
time and efforts during normal business hours to the business and affairs of the; provided, that it shall not be a violation of this Agreement for the Executive to (i) serve on corporate, civic
or charitable boards or committees, and (ii) deliver lectures or fulfill speaking engagements, so long as such activities are approved by the executive or body to which the Executive reports
and do not interfere with the performance of the Executive's responsibilities as an employee of the Company in accordance with this Agreement. 

        4.    Place
of Performance. In connection with his employment by the Company, the Executive shall be based at the Company's principal executive offices in Atlanta, Georgia,
except for required travel on the Company's business. 

        5.    Compensation
and Related Matters. 

        (a)  Base
Salary. The Executive shall receive a base salary, payable in substantially equal twice monthly installments, at the annual rate of at least $170,000 during each
fiscal year during the 

 

Term, or such greater amount as shall be determined by the Chief Executive Officer (the "Base Salary"). The Base Salary shall be reviewed at least annually for merit increases and may, by action and
in the discretion of the Chief Executive Officer, be increased at any time or from time to time. Any increase in the Base Salary or other compensation granted by the Chief Executive Officer shall in
no way limit or reduce any other obligation of the Company under this Agreement and, unless otherwise specified by the Chief Executive Officer, once established at an increased specified rate, the
Base Salary shall not thereafter be reduced. 

        (b)  Incentive
Compensation. In addition to the Base Salary, during the Term the Executive shall be entitled to receive an annual bonus (the "Annual Bonus") payable in the
form of either cash or Company stock at the sole discretion of the Company. The Annual Bonus will be determined based upon the Company achieving its budgeted earnings per share ("EPS") target (the
"Target") for each fiscal year. The Target for each fiscal year shall be approved by the Compensation Committee not later than 90 days after the beginning of each fiscal year. For purposes of
this Section, the term "EPS" means the Company's earnings after interest, taxes, depreciation and amortization divided by the number of outstanding registered shares of the Company's stock, as
determined in accordance with generally accepted accounting principles, consistently applied with the Company's past practices, and as reflected in the Company's audited financial statements for the
relevant fiscal year. If the Company does not achieve the Target for any fiscal year, any bonus will be made at the sole discretion of the Chief Executive Officer. The Annual Bonus payable with
respect to any fiscal year (net of any tax or other amount properly withheld therefrom) shall be paid by the Company to the Executive within sixty (60) days after the end of the fiscal year;
provided, that (i) the amount of Annual Bonus payable for any fiscal year during which the Term expires or this Agreement is terminated shall be prorated and payable only with respect to the
portion of the fiscal year during which the Executive was employed by the Company and (ii) no Annual Bonus shall be payable with respect to any fiscal year during which the Executive's
employment is terminated by the Company for Cause, or by the Executive for other than Good Reason. In addition to the Annual Bonus, the Executive shall be entitled to receive such other bonuses or
incentive compensation as the Chief Executive Officer may determine in its sole discretion, taking into consideration such criteria as it shall deem relevant. 

        (c)  Stock
Options. Upon execution of this Agreement, Company shall grant stock options to Executive to purchase 65,000 shares of Company Common Stock pursuant to the terms
and conditions of the stock option agreement attached hereto. During the Term, the Executive shall also be entitled to receive stock option grants at the sole discretion of the Compensation Committee.
The number of stock options and the terms and conditions of stock options granted to the Executive shall be determined by the Compensation Committee in its sole discretion. 

        (d)  Expenses.
During the Term, the Company, in accordance with its expense reimbursement policies and procedures in effect for senior management employees from time to time,
shall reimburse the
Executive for all reasonable expenses actually paid or incurred by the Executive in the course of and pursuant to the business of the Company. 

        (e)  Other
Benefits. The Executive shall be entitled to participate in or receive benefits under any employee benefit plan or arrangement made available generally by the
Company to its executives, subject to and on a basis consistent with the terms, conditions and overall administration of such plan or arrangement. The Company shall also provide the Executive such
coverage under any directors and officers liability policies it maintains as is provided to its other senior management employees. Nothing paid or provided to the Executive under any plan or
arrangement presently in effect or made available in the future shall be deemed to be in lieu of the Base Salary or any other obligation payable to the Executive pursuant to this Agreement. 

2

 

        (f)    Vacation.
The Executive shall be entitled to the greater of (i) four (4) weeks of paid vacation per year, or (ii) the number of paid vacation days
in each calendar year determined by the Company from time to time for its senior executive officers. The Executive shall also be entitled to all paid holidays given by the Company to its senior
executive officers. 

        (g)  Perquisites
and Fringe Benefits. The Executive shall be entitled to continue to receive all perquisites and fringe benefits provided or available to senior executive
officers of the Company in accordance with present practice and as may be changed from time to time with respect to all senior executive officers of the Company. 

        (h)  Working
Facilities. The Company shall furnish the Executive with an office, a secretary and such other facilities and services suitable to his position and adequate for
the performance of his duties hereunder. 

        6.    Other
Offices. The Executive agrees to serve without additional compensation as an officer and/or director of any of the Company's present or future subsidiaries;
provided, that the Executive shall be indemnified for serving in any and all such capacities on a basis no less favorable than may be from time to time provided to other senior executives of the
Company. 

        7.    Restrictive
Covenants. 

        (a)  Noncompetition.
The Executive agrees that he will not, either during the Term and for a period of one (1) year following any termination of this Agreement,
directly or indirectly, engage in, operate, have any investment or interest or otherwise participate in any manner (whether as an employee, officer, director, partner, agent, security holder,
creditor, consultant or otherwise) in any sole proprietorship, partnership, corporation or business or any other person or entity that engages, directly or indirectly, in a Competing Business;
provided, that the Executive may continue to hold Company securities and/or acquire, solely as an investment, shares of capital stock or other equity securities of any company which are publicly
traded, so long as the Executive does not control, acquire a controlling interest in, or become a member of a group which exercises direct or indirect control of, more than five percent (5%) of any
class of capital stock of such corporation. For purposes of this Agreement, the term "Competing Business" means any business providing any of the following services within a 50 mile radius of any
office or treatment location of the Company or any subsidiary of the Company: (a) Lithotripsy services, (b) any business providing treatment of orthopedic or podiatric conditions using
extracorporeal shock wave treatments or shock wave treatments, or (c) any business involving the service, maintenance or upkeep of machines providing such services. 

        (b)  Unauthorized
Disclosure. During the Term and for a period of one year following any termination of this Agreement, the Executive shall not, without the written consent
of the Board or a person authorized thereby, disclose to any person, other than an employee of the Company (or its subsidiaries) or a person to whom disclosure is reasonably necessary or appropriate
in connection with the performance by the Executive of his duties as an executive of the Company, any confidential information obtained by him while in the employ of the Company with respect to any of
the Company's customers, suppliers, creditors, lenders, investment bankers, methods of distribution or methods of marketing; provided, however, that confidential information shall not include any
information known generally to the public (other than as a result of unauthorized disclosure by the Executive). Notwithstanding the foregoing, nothing herein shall be deemed to restrict the Executive
from disclosing Confidential Information to the extent required by law. 

        (c)  Nonsolicitation
of Employees. During the Term and for a period of six (6) months following any termination of this Agreement, the Executive shall not directly or
indirectly, for himself or for any other person, firm, corporation, partnership, association or other entity, attempt to employ or enter into any contractual arrangement with any employee or former
employee of the 

3

 

Company, unless such employee or former employee has not been employed by the Company for a period in excess of three months. 

        8.    Termination.
The Executive's employment under this Agreement may be terminated without any breach of this Agreement only on the following circumstances: 

        (a)  Death.
The Executive's employment under this Agreement shall terminate automatically upon his death. 

        (b)  Disability.
If, as a result of the Executive's incapacity due to physical or mental illness, the Executive is absent from the performance of his duties under this
Agreement for a period of four (4) months during any twelve-month period, and within 10 days after written notice of termination is given, the Executive does not return to the
performance of his duties under this Agreement, the Company may terminate the Executive's employment under this Agreement for "Disability." 

        (c)  Cause.
The Company may at any time terminate the Executive's employment under this Agreement for Cause. For purposes of this Agreement, "Cause" means: (i) the
willful and continued failure by the Executive to substantially perform his duties under this Agreement (other than any such failure resulting from the Executive's incapacity due to physical or mental
illness or from the termination of this Agreement by the Executive for Good Reason), after a demand for substantial performance is delivered to the Executive by the Company specifically identifying
the manner in which the Company believes the Executive has not substantially performed his duties, and the Executive shall have failed to resume substantial performance of such duties within thirty
(30) days of receiving such demand, (ii) the willful engaging by the Executive in criminal conduct (including embezzlement and criminal fraud) which is demonstrably and materially
injurious to the Company, monetarily or otherwise, or (iii) the conviction of the Executive of a felony (other than a traffic violation). For purposes of this paragraph, no act, or failure to
act, on the Executive's part shall be considered "willful" unless done, or omitted to be done, by him not in good faith and without reasonable belief that his action or omission was in the best
interest of the Company. Notwithstanding anything herein to the contrary, the Executive shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to the
Executive a copy of a resolution, duly adopted by the affirmative vote of not less than a majority of the members of the Board then in office (other than the Executive) at a meeting of the Board
called and held for such purpose (after reasonable notice to the Executive and an opportunity for him, together with his counsel, to be heard before the Board), finding that in the good faith opinion
of the Board the Executive was guilty of conduct set forth in clause (i), (ii) or (iii), above, and specifying the particulars thereon in detail. 

        (d)  Termination
by the Executive. The Executive may terminate his employment under this Agreement (i) for Good Reason, or (ii) if his health should become
impaired to any extent that makes the continued performance of his duties under this Agreement hazardous to his physical or mental health or his life, provided that the Executive shall have furnished
the Company with a written statement from a qualified doctor to such effect and provided, further, that at the Company's request and expense the Executive shall submit to an examination by a doctor
selected by the Company and such doctor shall have concurred in the conclusion of the Executive's doctor. 

        For
purposes of this Agreement, "Good Reason" means, without the Executive's prior written consent, the occurrence of any one or more of the following: (A) any action by the
Company which results in a material diminution in the nature or status of the Executive's position, authority, duties or responsibilities; (B) a failure by the Company to pay any amounts of
Base Salary, Annual Bonus or other amounts payable hereunder, or to comply with its other obligations and agreements contained herein; (C) a failure of the Company to obtain an agreement from
any successor to the Company to assume and agree to perform this Agreement, as contemplated in 

4

 

Section 10(c) hereof; (D) Executive no longer reports directly to the person(s) specified in Section 3 hereof, or (E) any purported termination by the Company of the
Executive's employment that is not effected pursuant to a Expiration Notice or a Notice of Termination satisfying the requirements of Section 2 or subsection 8(e), respectively, and otherwise
in accordance with the terms of this Agreement, and for purposes of this Agreement, no such termination shall be effective. 

        The
Executive's right to terminate his employment for Good Reason shall not be affected by his incapacity due to physical or mental illness, nor shall the Executive's continued
employment constitute consent to, or a waiver of his rights with respect to, any circumstances constituting Good Reason. With respect to the matters set forth in clauses (A), (B), (C) and (D),
above, the Executive shall give the Board fifteen (15) days prior written notice of his intent to terminate this Agreement, and the Company shall have the right to cure any such breach or
alleged breach within such fifteen (15) day period. 

        (e)  Notice
of Termination. Any termination of the Executive's employment by the Company or by the Executive (other than termination pursuant to Section 8(a), above)
shall be communicated by written Notice of Termination to the other party hereto given in accordance with Section 12. For purposes of this Agreement, a "Notice of Termination" shall mean a
written notice which indicates the specific termination provision in this Agreement relied upon and sets forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision so indicated. The failure by the Executive to set forth in any Notice of Termination any fact or circumstance which contributes to a
showing of Good Reason shall not waive any right of the Executive hereunder or preclude the Executive from asserting such fact or circumstance in enforcing his rights hereunder. 

        (f)    Date
of Termination. "Date of Termination" shall mean (i) if the Executive's employment is terminated by his death, the date of his death, (ii) if the
Executive's employment is terminated for Disability, thirty (30) days after Notice of Termination is given (provided that the Executive shall not have returned to the performance of his duties
during such thirty (30) day period), (iii) if the Executive's employment is terminated by the Company for Cause, the date specified in the Notice of Termination after the expiration of
any cure periods, and (iv) if the Executive's employment is terminated for any other reason, the date on which a Notice of Termination is given after the expiration of any cure periods;
provided, that if within thirty (30) days after any Notice of Termination one party notifies the other party that a dispute exists concerning the termination, the Date of Termination shall be
the date finally determined to be the Date of Termination, either by mutual written agreement of the parties or by a binding and final arbitration award or an adjudication by a court of competent
jurisdiction (and in such event the Company shall continue to perform its obligations hereunder until the date so determined). 

        9.    Compensation
Upon Termination or During Disability. 

        (a)  Death.
If the Executive's employment is terminated by reason of his death, the Company shall pay to such person as the Executive shall have designated in a notice filed
with the Company, or, if no such person has been designated, to his estate, any unpaid amounts of his Base Salary or Annual Bonus accrued prior to the date of his death; and upon making such payments,
the Company shall have no further liability hereunder (other than for reimbursement for reasonable business expenses incurred prior to the date of the Executive's death pursuant to
Section 5(e)); provided, that the Executive's spouse, beneficiaries or estate shall also be entitled to receive any amounts or other benefits payable pursuant to any pension or employee benefit
plan, life insurance policy or other plan, program or policy then maintained or provided by the Company in accordance with the terms thereof. In addition, all unvested Options (as defined in the
Company's Stock Option Plan—2001 or any other plan under which stock options are granted), including, but 

5

 

not limited to, stock options held by the Executive on the Date of Termination shall continue to vest in accordance with the vesting schedule for such Options then in effect, and upon vesting shall
become exercisable. Moreover, each such stock option that vests pursuant to the preceding sentence, together with any previously vested and unexercised stock options, shall be exercisable in
accordance with their respective terms for a period of one (1) year following the date on which it becomes vested (or, in the case of any previously vested and unexercised options, one
(1) year following the Date of Termination) or, if earlier, until the then scheduled expiration date(s) of such options. 

        (b)  Disability.
During any period that the Executive fails to perform his duties hereunder as a result of incapacity due to physical or mental illness, the Executive shall
continue to receive his Base Salary and any Annual Bonus until the Executive's employment is terminated pursuant to Section 8(b) hereof, or until the Executive terminates his employment
pursuant to Section 8(d)(ii) hereof, whichever first occurs. If the Executive's employment is terminated by reason of his Disability, the Company shall pay to the Executive any unpaid
amounts of his Base Salary or Annual Bonus accrued prior to the date of such termination; and upon making such payments, the Company shall have no further liability hereunder (other than for
reimbursement for reasonable business expenses incurred prior to the date of such termination pursuant to Section 5(e)); provided, that the Executive shall also be entitled to receive any
amounts or other benefits payable pursuant to any pension or employee benefit plan, life insurance policy or other plan, program or policy then maintained or provided by the Company in accordance with
the terms thereof. In addition, all unvested Options held by the Executive on the Date of Termination shall continue to vest in accordance with the vesting schedule for such Options then in effect,
and upon vesting shall become exercisable. Moreover, each such stock option that vests pursuant to the preceding sentence, together with any previously vested and unexercised stock options, shall be
exercisable in accordance with their respective terms for a period of one (1) year following the date on which it becomes vested (or, in the case of any previously vested and unexercised
options, one (1) year following the Date of Termination) or, if earlier, until the then scheduled expiration date(s) of such options. Notwithstanding anything in this section to the contrary,
all such vesting of Options shall discontinue immediately, and any unexercised options shall terminate and be cancelled immediately upon a breach by the Executive of the provisions of Section 7
hereof or the Executive's acceptance of employment with another entity. 

        (c)  Cause;
Other than for Good Reason. If the Executive's employment is terminated by the Company for Cause, or by the Executive for other than Good Reason, the Company
shall pay the Executive his Base Salary and accrued vacation pay through the Date of Termination at the rate in effect at the time Notice of Termination is given (or on the Date of Termination if no
Notice of Termination is required
hereunder) plus all other amounts to which the Executive is entitled under any plan, program, policy or practice of the Company or otherwise at the time such payments are due and such payments shall,
assuming the Company is in compliance with the provisions of this Agreement, fully discharge the Company's obligations hereunder. In addition, all unvested Options shall terminate. 

        (d)  Good
Reason; Other than Cause or Disability. If the Company terminates the Executive's employment other than for Cause or Disability, or the Executive terminates his
employment for Good Reason, then: 

          (i)  within
thirty (30) days after the Date of Termination, the Company shall pay the Executive an amount equal to the sum of: (i) his accrued but unpaid Base
Salary through the Date of Termination at the rate in effect at the time Notice of Termination is given (or the Date of Termination where no Notice of Termination is required hereunder) and
(ii) a pro rata portion of the most recent Annual Bonus paid to the Executive (taking into consideration any accrued but unpaid Annual Bonus which is paid pursuant to this
Section 9(d)(i)) based on 

6

 

the number of days elapsed in the current fiscal year prior to the Date of Termination, together with any accrued incentive compensation and other amounts to which the Executive is then entitled
under any plan, policy, practice or program of the Company at the time such payments are due; and 

        (ii)  in
lieu of any further salary, incentive compensation or other payments for periods subsequent to the Date of Termination, and as a severance benefit to the Executive,
the Company will pay to the Executive in a prompt lump-sum payment, payable in cash, no later than thirty (30) days following the date of termination an amount equal to the sum of
three (3) times the Executive's annual Base Salary in effect at the time Notice of Termination is given (or the Date of Termination where no Notice of Termination is required hereunder), plus
(B) an amount equal to three (3) times the greater of (x) the average Annual Bonus paid to the Executive for the prior three years or (y) the amount of the most recent
Annual Bonus paid to the Executive. 

        (e)  Acceleration
of Vesting; Sale of Shares. Unless the Company terminates the Executive's employment for Cause, the Executive terminates his employment for other than Good
Reason or the Executive's employment is terminated due to his death or Disability, upon (i) termination of the Executive's employment or (ii) a Change of Control, all unvested Options
held by the Executive on the Date of Termination shall immediately vest and upon vesting shall become exercisable. Moreover, each such stock option that is deemed vested pursuant to the preceding
sentence, together with any previously vested and unexercised stock options, shall be exercisable by the Executive in accordance with their respective terms for a period of one (1) year
following the Date of Termination or the date of the Change in Control, as the case may be, or, if earlier, until the then scheduled expiration date(s) of such options. The Company shall provide the
Executive such cooperation and assistance as may reasonably be necessary to effect cashless exercises of such stock options beneficially owned by the Executive at the Date of Termination. For the
purposes of this Agreement, the "Fair Market Value" of the Company's common stock as of any given date shall be (i) the closing sale price per share reported on a
consolidated basis for the common stock as listed on the Nasdaq National Market or the principal stock exchange or market on which the common stock is traded on the date as of which such value is
being determined or, if there is no sale on that date, then on the last previous day on which a sale was reported or (ii) if the common stock is not listed on an exchange or market, the fair
market value of the common stock as determined by the Board. 

        For
purposes of this Agreement, a "Change in Control" means and shall be deemed to have occurred if: (i) any person, entity or "group", within the meaning of Sections 13(d)(3) and
14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), other than (A) the Company, its subsidiaries or any employee benefit plan established and maintained by the
Company or its subsidiaries, or (B) the Executive or any of the Executive's affiliates, becomes the "beneficial owner" (within the meaning of Rule 13d-3 promulgated under the
Exchange Act), directly or indirectly, of securities of the Company representing forty percent (40%) or more of the combined voting power of the Company's then outstanding securities entitled to vote
generally in the election of directors; (ii) the individuals who, as of the date hereof constitute the Company's Board of Directors (as of the date hereof, the "Incumbent Board") cease for any
reason to constitute a majority of the Board of Directors, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Company's
stockholders was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than the election or nomination of an individual whose initial assumption of
office is in connection with an actual or threatened election contest relating to the election of the directors of the Company, as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act) shall be, for purposes of this Agreement, considered as 

7

 

though such person were a member of the Incumbent Board; or (iii) the shareholders of the Company approve (A) a reorganization, merger or consolidation with respect to which persons who
were the shareholders of the Company immediately prior to such reorganization, merger or consolidation do not, immediately thereafter, own more than 50% of the combined voting power entitled to vote
generally in the election of directors of the reorganized, merged or consolidated company's then outstanding voting securities, (B) a liquidation or dissolution of the Company, or
(C) the sale of all or substantially all of the assets of the Company, unless the approved reorganization, merger, consolidation, liquidation, dissolution or sale is subsequently abandoned. 

        (f)    Maintenance
of Benefit. Unless the Executive is terminated for Cause, the Company shall maintain in full force and effect, for the continued benefit of the Executive
and/or his family for one (1) year after termination for any reason, all employee medical, health and hospitalization plans and programs in which the Executive and/or his family was entitled to
participate in immediately prior to the Date of Termination provided that the continued participation of the Executive and/or his family is possible under the general terms and provisions of such
plans and programs. In the event that the participation of the Executive and/or his family in any such plan or program is barred, the Company shall arrange to provide the Executive and/or his family
with benefits substantially similar to those which the Executive and/or his family would otherwise have been entitled to receive under such plans and programs from which his or their continued
participation is barred. 

        10.  Successors.

        (a)  This
Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive other than by will or the laws
of descent and distribution. This Agreement and all rights of the Executive hereunder shall inure to the benefit of and be enforceable by the Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devises and legatees. If the Executive dies while any amounts would still be payable to him hereunder, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to the Executive's personal or legal representatives or, if there be no such persons, the Executive's estate. 

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

        (c)  The
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company, by agreement in form and substance satisfactory to the Executive, to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such assumption and agreement prior to the effectiveness of any such succession shall be
a breach of this Agreement and shall entitle the Executive to compensation from the Company in the same amount and on the same terms as he would be entitled to hereunder if he terminated his
employment for Good Reason, except for purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed the Date of Termination. As used in this
Agreement, the term "Company" means the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which executes and delivers an assumption and agreement provided
for in this Section 10(c) or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law, or otherwise. 

        11.  Non-exclusivity
of Rights. Nothing in this Agreement shall prevent or limit the Executive's continuing future participation in any benefit, bonus, incentive
or other plans, programs, policies or practices provided by the Company or any of its subsidiaries and for which the Executive may qualify, nor shall anything herein limit or otherwise affect such
rights as the Executive may have under any 

8

 

stock option or other agreements with the Company or any of its subsidiaries. Except as herein specifically provided, amounts which are vested benefits or which the Executive is otherwise entitled to
receive under any plan, policy, practice or program of the Company or any of its subsidiaries at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy,
practice or program. 

        12.  Notice.
All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail,
return receipt requested, postage prepaid, addressed as follows: 

        If
to the Executive: 

Ted
S. Biderman

1016 Garnett Ave

Chattanooga, Tennessee 37405 

        If
to the Company: 

HealthTronics
Surgical Services, Inc.

1841 West Oak Parkway

Marietta, Georgia 30062

Attn: Chief Executive Officer 

or
to such other address as either party shall have furnished to the other in writing in accordance herewith. Notices and communications shall be effective when actually received by the addressee. 

        13.  Miscellaneous.

        (a)  This
Agreement has been approved by the Compensation Committee. No provisions of this Agreement may be modified, waived or discharged unless such modification, waiver or
discharge is agreed to in a writing signed by the Executive and such officer as may be specifically designed by the Compensation Committee or the Board. 

        (b)  The
failure by either party hereto to insist upon compliance with any condition or provision of this Agreement shall not be deemed a waiver of such condition or
provision or any other provision hereof. 

        (c)  No
agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth
expressly in this Agreement and
this Agreement supersedes any other agreement or understanding between the Company and the Executive relating to the Executive's employment and any compensation or benefits in respect thereof
(including, without limitation, the Prior Employment Agreement). 

        (d)  The
Company may withhold from any accounts payable under this Agreement all Federal, state or other taxes as legally shall be required. 

        (e)  The
validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Georgia, without reference to principles of
conflicts of laws. 

        (f)    The
invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect. 

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

9

 

        IN
WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date and year first above written. 

	 	 	By
	

 	
 	

HealthTronics Surgical Services, Inc.
	

 	
 	

/s/  ARGIL J. WHEELOCK      
 Argil J. Wheelock, Chief Executive Officer
	

 	
 	

Executive:
	

 	
 	

/s/  TED S. BIDERMAN      
 Ted S. Biderman

10

QuickLinks

Exhibit 10.11QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.14    
  

FIRST AMENDMENT TO LEASE AGREEMENT
  (Expansion) 

        This
First Amendment to Lease Agreement (this "Amendment") is dated to be effective as of the 30th day of December, 2002, by
and between LIT PC, L.P. a Delaware limited partnership as successor in interest to PRUCROW INDUSTRIAL PROPERTIES, L.P., a Delaware limited partnership
("Landlord"), and HEALTHTRONICS, INC., a Georgia corporation ("Tenant"). 

R E C I T A L S  

        A.    Landlord
and Tenant entered into that certain Lease Agreement dated January 27, 2000 (the "Lease"), whereby
Landlord leases to Tenant certain premises containing approximately 27,475 rentable square feet (the "Premises") in that certain Building (the
"Building") of West Oak Center (the "Project") in Marietta, Georgia, as more particularly described in
the Lease. 

        B.    Landlord
and Tenant now desire to amend the Lease to provide for, among other things, an expansion to the size of the Premises, and an increase in the monthly Base Rent. 

        C.    All
capitalized terms used herein and not defined herein shall have the meanings assigned thereto in the Lease. 

        Now
therefore, in consideration of the covenants and obligations contained herein, Landlord and Tenant agree as follows: 

A G R E E M E N T S  

        1.    Expansion.    Commencing on the date on which Profiit Recovery Group
("PRG") vacates the space that will become the Expanded Premises (defined below), pursuant to that certain Termination Agreement between Landlord and
PRG, dated December 16, 2002 (the "Expansion Date"), the Premises shall be expanded to include the additional 15,112 square feet adjacent to the
Premises, as depicted on Exhibit A attached hereto (the "Expanded Premises") for a total of
42,587 square feet. From and after the Expansion Date, all references in the Lease to the "Premises" shall be deemed to include, and shall apply equally to, the Expanded Premises. 

        2.    Base Rent.    Commencing on the Expansion Date and continuing until the expiration of the Lease Term, the
monthly Base Rent shall be as follows and shall be payable in accordance with all terms and conditions of the Lease: 

	Months (following Expansion Date)
 
	 	Monthly Base Rent

	Expansion Date through Month 3	 	$	26,085
	Months 4-12	 	$	26,867
	Months 13-24	 	$	27,673
	Months 25-36	 	$	28,503
	Months 37-48	 	$	29,358
	Months 49-Expiration Date	 	$	30,239

        3.    Operating Expenses.    Commencing on the Expansion Date, Tenant's Proportionate Share for purposes of
determining Operating Expenses and other expenses reimbursable to Landlord pursuant to the terms of the Lease shall be increased to 70.97% of the Building and 19.31% of the Project, subject to further
adjustment as provided in the Lease. 

        4.    Expansion Improvements.    

        (a)  Subject
to Landlord's receipt of all required governmental permits, licenses and approvals, Landlord agrees to furnish or perform or cause to be performed those items of 

 

construction and those improvements generally set forth below ("Expansion Improvements"), which Expansion Improvements shall be more particularly
determined in the Plans and Specs: 

	•
	Paint
and carpet as shown on Plans and Specs

	•
	Three
offices as shown on Plans and Specs

	•
	Two
hallways between Premises and Expanded Premises as shown on Plans and Specs

	•
	The
Expansion Improvements shall specifically exclude installation of telephone, computer, and security systems, and installation of any fire alarm system
and/or fire extinguishers. 

        (b)  Landlord
shall pay for the Expansion Improvements up to a maximum amount of $80,000 (the "Expansion Allowance"). In the
event the cost of the Expansion Improvements exceeds the Expansion Allowance, such overage shall be borne exclusively by Tenant and Tenant shall, within five (5) days after written demand
therefor, reimburse Landlord for any and all costs and expenses exceeding the Expansion Allowance. Landlord makes no representation or warranty whatsoever as to the total cost of the Expansion
Improvements and Tenant acknowledges that the cost of the Expansion Improvements may exceed the Expansion Allowance. The cost of the Expansion Improvements shall include all construction,
architectural, space planning, design and engineering fees, costs of ADA compliance and any and all licensing or permit fees, and a construction management fee equal to 5% of the approved contractor's
bid. Failure of Tenant to pay to Landlord any amount in excess of the Expansion Allowance when due shall be deemed an Event of Default under the Lease. 

        (c)  Landlord
shall involve Tenant in the process of developing final plans and specifications (the "Plans and Specs") for the
Expansion Improvements, such Plans and Specs not to require any construction
beyond the general scope of the Expansion Improvements described herein. Final Plans and Specs shall be submitted to Tenant for its approval, such approval not to be unreasonably withheld or delayed.
If Tenant does not advise Landlord in writing of its disapproval of the Plans and Specs, and a detailed explanation of the reasons therefor, within ten (10) days after Landlord's delivery of
the Plans and Specs, the same shall be deemed approved by Tenant in all respects. If Tenant shall desire any changes, Tenant shall so advise Landlord in writing and Landlord shall determine whether
such changes can be made in a reasonable and feasible manner. If Landlord agrees to make such reasonable changes, Landlord shall revise the Plans and Specs and resubmit the same to Tenant for its
reasonable approval. If Tenant does not advise Landlord in writing of its disapproval of the revised Plans and Specs, and a detailed explanation of the reasons therefor, within five (5) days
after Landlord's delivery of the revised Plans and Specs, the same shall be deemed approved by Tenant in all respects. Any and all costs of reviewing any requested changes, and any and all costs of
making any changes to the Expansion Improvements which Tenant may request and which Landlord may agree to shall be at Tenant's sole cost and expense and if Landlord so requests, shall be paid to
Landlord upon demand and before execution of the change order. 

        (d)  Upon
receipt of all required permits, approvals and licenses, Landlord shall proceed with and complete the construction of the Expansion Improvements. After completion
of the Expansion Improvements, Tenant shall, upon demand, execute and deliver to Landlord a letter of acceptance of delivery of the Expanded Premises. 

        (e)  The
failure of Tenant to take possession of or to occupy the Expanded Premises shall not serve to relieve Tenant of obligations arising on the Expansion Date or delay
the payment of rent by Tenant. Subject to applicable ordinances and building codes governing Tenant's right to occupy or perform work in the Expanded Premises and Landlord's prior written approval,
Landlord may allow Tenant to install its machinery, equipment, fixtures, or other personal property on the Expanded Premises during the final stages of completion of construction provided that Tenant
does 

2

 

not thereby interfere with the completion of construction or cause any labor dispute as a result of such installations. In the event of Tenant's entry and/or work in or about the Expanded Premises
during the final stages of completion of construction, Tenant does hereby agree to assume all risk of loss or damage to its machinery, equipment, fixtures, and other personal property and to
indemnify, defend, and hold Landlord harmless from any loss or damage to such property, and all liability, loss, or damage arising from any injury to the Project or the property of Landlord, its
contractors, subcontractors, or materialmen, and any death or personal injury to any person or persons arising out of Tenant's installations, whether or not any such loss, damage, liability, death, or
personal injury was caused by Landlord's negligence. Delay in putting Tenant in possession of the Expanded Premises shall not serve to extend the term of this Lease or to make Landlord liable for any
damages arising therefrom. Notwithstanding the foregoing, Landlord shall use commercially reasonably efforts to minimize interference with Tenant's operation of its business in the Premises during the
construction of the Expanded Premises. 

        (f)    Except
for completion of the Expansion Improvements and incomplete punch list items, upon the Expansion Date, Tenant shall have and hold the Expanded Premises as the
same shall then be without any liability or obligation on the part of Landlord for making any further alterations or improvements of any kind in or about the Premises or Expanded Premises. 

        (g)  Tenant
acknowledges that it shall be solely responsible for moving its personal property and operations located within the Premises to an adequate distance away from the
area of Landlord's construction of the Expansion Improvements in order to protect such property and operations. 

        5.    Brokers.    

        (a)  Tenant
represents and warrants that it has dealt with no broker, agent or other person in connection with this transaction and that no broker, agent or other person
brought about this transaction other than Advantis GVA, and Tenant agrees to indemnify and hold Landlord harmless from and against any claims by any other broker, agent or other person claiming a
commission or other form of compensation by virtue of having dealt with Tenant with regard to this leasing transaction. 

        (b)  All
parties hereto acknowledge that Advantis GVA has acted on behalf of Tenant and that Trammell Crow Company has acted on behalf of Landlord with respect to this
Amendment. Following mutual execution and delivery of this Amendment, Landlord will pay a commission to Advantis GVA and Trammell Crow Company pursuant to separate commission agreements. 

        6.    HVAC.    Notwithstanding anything to the contrary contained in the Lease or this Amendment, if any of the HVAC
units in the Expanded Premises require repair, maintenance or replacement, Tenant shall be pay up to a maximum of $600.00 per unit, per each occurrence of repair, maintenance or replacement for such
unit ("HVAC Cap"); provided, however, if the repair, maintenance or replacement is due to Tenant's negligence or willful misconduct, such HVAC Cap shall
not apply and Tenant shall be responsible for all of the costs incurred in connection with such repair, maintenance or replacement. In the event the cost to repair, maintain or replace any HVAC unit
exceeds the HVAC Cap (and Tenant is not responsible for any amounts above the HVAC Cap, as provided above), such overage shall be borne exclusively by Landlord. 

        7.    No Other Changes.    Except as modified herein, all terms and conditions of the Lease shall remain unchanged and
in full force and effect. 

        [SIGNATURES
ON FOLLOWING PAGE] 

3

 

        THIS
FIRST AMENDMENT TO LEASE AMENDMENT is dated to be effective as of the date first written above. 

	 	 	TENANT:
	

 	
 	
HEALTHTRONICS, INC., a Georgia corporation
	

 	
 	

By:	
 	

/s/  VICTORIA W. BECK      

	 	 	Name:	 	Victoria W. Beck

	 	 	Title:	 	Executive Vice President

	

 	
 	
LANDLORD:
	

 	
 	

LIT PC, L.P., a Delaware limited partnership
	

 	
 	

By:	
 	

LIT PC REALTY, L.L.C., a Delaware limited liability company, its general partner

	

 	
 	

By:	
 	

Lion Industrial Properties, L.P., a Delaware limited partnership, its sole member

	

 	
 	

By:	
 	

Lion GP Sub, LLC, a Delaware limited liability company, its sole general partner

	

 	
 	

By:	
 	

Lion Industrial Trust, a Maryland real estate investment trust, its manager

	

 	
 	

By:	
 	

/s/  ANDY SITZER      

	 	 	Name:	 	Andy Sitzer

	 	 	Title:	 	Vice President

4

 
Exhibit A  

 Expanded Premises  

5

QuickLinks

Exhibit 10.14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}]]