Document:

Employment Agreement

 

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EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement”) made as of February 3, 2006, by and between
NationsHealth, Inc., a Delaware corporation (the “Company”), and Robert E. Tremain (the
“Executive”), and effective as of the Executive’s first day of work for the Company (the “Effective
Date”).

W I T N E S S E T H:

     WHEREAS, the Company wishes to employ the Executive as Chief Operating Officer on the terms
and conditions set forth in this Agreement; and

     WHEREAS, the Executive is willing to accept such employment on such terms and conditions;

     NOW, THEREFORE, in consideration of the premises and of the mutual promises, representations
and covenants herein contained, the parties hereto agree as follows:

1. SCOPE OF EMPLOYMENT

     (a) The Company hereby agrees to employ the Executive upon the terms and conditions herein set
forth and to perform such executive duties as may be determined and assigned to him by the Chief
Executive Officer (the “CEO”) or the Board of Directors of the Company (the “Board”). The
Executive hereby accepts such employment, subject to the terms and conditions herein set forth.
The Executive shall have the title of Chief Operating Officer. While serving as Chief Operating
Officer, the Executive shall have the customary duties and authority of such position. The
Executive shall not be employed by any other organization during the term of this Agreement.

     (b) By executing this Agreement, each party represents to the other that it is authorized to
enter into this Agreement and that it is not under any legal restriction or other impediment that
would prevent it from fully discharging its responsibilities and obligations under this Agreement.
Without limiting the representation in the preceding sentence, the Executive acknowledges that the
Company contracts with agencies of the federal government and of certain state governments, and the
Executive confirms that, to the best of his knowledge, his prior conduct and previous employment
will not prevent him from providing the services contemplated by this Agreement or impair the
Company’s ability to comply with or enter into such government contracts.

2. TERM

     (a) The term of the Executive’s employment under this Agreement shall be from the Effective
Date until February 3, 2008 (the “Term”). The Term shall automatically renew thereafter for
successive one-year periods beginning on each February 3 (each renewal period also a “Term” for
purposes of this Agreement) unless (i) the Company provides written notice of non-renewal to the
Executive at least twelve (12) months before the next renewal date, or (ii) the Executive provides
written notice of non-renewal to the Company at least ninety (90) days before the next renewal
date.

 

 

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     (b) The Agreement may be terminated before the end of the current Term as follows:

     (i) by the Company for Cause (as hereinafter defined);

     (ii) by the Company without Cause. For purposes hereof, the Executive shall be
deemed terminated by the Company without Cause if he terminates employment for Good
Reason (as hereinafter defined);

     (iii) in the event of the Company’s dissolution or liquidation;

     (iv) by the Executive for any reason;

     (v) in the event of the death of the Executive; or

     (vi) in the event of the Disability of the Executive (as hereinafter defined).

     (c) For purposes hereof, “Cause” shall mean, and shall be limited to, any of the following
that is reasonably determined by the Board to be materially detrimental to the business or
reputation of the Company, and that occurs or comes to light after the Effective Date: (i) the
Executive’s willful commission of acts of dishonesty in connection with his position; (ii) the
Executive’s willful failure or refusal to perform the essential duties of his position or to adhere
to any written Company policy approved by the Board of Directors; (iii) the Executive’s conviction
of, or plea of guilty or nolo contendere to, (x) a felony, or (y) a misdemeanor involving fraud,
dishonesty, embezzlement, or theft; or (iv) the Executive’s breach of the representation in Section
1(b) or of any of the provisions contained in Section 6 of the Agreement. The Company shall
provide the Executive with written notice describing any event or condition that gives the Company
Cause for termination. If, with the agreement of the Board or the CEO (which shall not be
unreasonably withheld), the Executive cures an event described in clause (ii) or (iv) within thirty
(30) days after receiving such notice, there shall be no termination for Cause.

     (d) For purposes hereof, the term “Good Reason” shall mean any one or more of the following
events unless the Executive specifically agrees in writing that such event shall not be Good
Reason:

     (i) the assignment to the Executive by the Board of Directors or other officers
or representatives of the Company of duties materially inconsistent with the duties
associated with the position described in Section 1(a);

     (ii) a material change in the nature or scope of the Executive’s authority from
those applicable to him as Chief Operating Officer;

     (iii) material acts or conduct on the part of the Company or its officers and
representatives which have as their purpose forcing the resignation of the Executive
or preventing him from performing his duties and responsibilities pursuant to this
Agreement;

 

 

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     (iv) a material breach by the Company of any material provision of this
Agreement (including, but not limited to, failure of the Company to pay any amount,
or to provide any benefit, pursuant to the provision of Articles 3 and 4 hereof);

     (v) the Executive’s involuntary termination without Cause or voluntary
termination for any reason on or after a Change in Control.

     The Executive shall provide the Company with written notice describing any event or condition
that gives the Executive Good Reason for termination. If the Company cures the same within thirty
(30) days after receiving such notice, there shall be no termination for Good Reason.

     (e) For purposes hereof, the term “Disability” shall mean the inability of the Executive, due
to illness, accident, or any other physical or mental incapacity, to perform his duties in a normal
manner for (i) a period of four (4) consecutive months or (ii) six (6) months (with each month
being composed of 31 consecutive days) during any twelve (12) consecutive month period. The
Disability of the Executive shall be determined by a medical doctor approved by the Company. The
Executive shall submit to a reasonable number of examinations by the medical doctor making the
determination of Disability, and the Executive hereby authorizes the disclosure and release to the
medical doctor of all supporting medical records.

     (f) In the event of a termination of the Agreement for a reason other than death or
Disability, the Executive agrees to cooperate with the Company in order to ensure an orderly
transfer of the Executive’s duties and responsibilities.

3. COMPENSATION

     (a) Hiring Benefits. The Company agrees to provide the Executive the following
payments and awards in connection with commencement of his employment with the Company under this
Agreement:

     (i) upon the Effective Date of this Agreement, a $100,000 signing bonus;

     (ii) a temporary housing allowance of up to $5,000 per month for a period of
six months following the Effective Date of this Agreement or until such time as the
Executive obtains permanent housing, whichever is earlier;

     (iii) reimbursement for reasonable moving expenses, storage costs,
house-hunting trips, and similar expenses actually incurred in connection with the
relocation of the Executive and his family to Florida;

     (iv) on February 3, 2006, a nonqualified stock option to purchase 200,000
shares of the common stock of the Company, vesting 25% on February 3, 2007, and an
additional 12.5% each six months thereafter, provided that the Executive is still
employed by the Company on each vesting date; and

 

 

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     (v) on February 3, 2006, 25,000 shares of the restricted stock of the Company,
vesting 25% on February 3, 2007, and an additional 12.5% each six months thereafter,
provided that the Executive is still employed by the Company on each vesting date.

     The Company may require the Executive to furnish appropriate documentation for the
reimbursement of any temporary housing expense or moving expense in accordance with the Company’s
practices and procedures.

     (b) Annual Salary. The Company agrees to pay the Executive, and the Executive agrees
to accept, in payment for services to be rendered by the Executive hereunder, a base salary of
$400,000 per annum (the “Annual Salary”). The Annual Salary shall be payable in equal periodic
installments, not less frequently than monthly, less such sums as may be required to be deducted or
withheld under the provisions of federal, state or local law. The Company agrees to review the
Annual Salary on or around January 1st of each calendar year (or such other time as the Company and
the Executive mutually agree), for adjustment based on the Executive’s performance;
provided, however, that (i) failure on the part of the Company to make such annual
review shall not constitute breach of this Agreement, and (ii) no such adjustment shall be
effective to reduce the Annual Salary below $400,000 per annum. For all purposes under this
Agreement, the term “Annual Salary” shall refer to the Executive’s base salary as in effect from
time to time.

     (c) Annual Bonus. In addition to the Executive’s salary, the Executive shall be
eligible to receive an annual bonus if performance goals established by the Company are satisfied.
The Executive’s target bonus shall be between 50% and 75% of the Executive’s Annual Salary; but any
bonus actually paid to the Executive shall depend on the level of achievement of the performance
goals. If the Company has established an annual incentive compensation plan for its senior
management, the Executive’s annual bonus opportunity may be provided under the terms of the annual
incentive compensation plan. Any bonus program in which the Executive participates may be
established and administered on behalf of the Company by the independent directors who are members
of the compensation committee of the Board (the “Compensation
Committee”).

     (d) Equity Compensation Plan. The Executive shall be considered for annual equity
compensation awards as determined by the Compensation Committee or its delegate.

4. FRINGE BENEFITS, REIMBURSEMENT OF EXPENSES, ETC.

     (a) The Executive shall be entitled to paid vacation, holidays, and sick leave benefits in
accordance with the Company’s policies for executive employees.

     (b) The Executive and/or his family shall be entitled to medical insurance and the Executive
shall be entitled to disability insurance from the Company in accordance with the Company’s
policies. Such coverage shall be paid for by the Company.

     (c) The Company agrees to pay up to $10,000 per year toward premiums or to reimburse the
Executive for premiums for life or disability insurance, as directed by the Executive.

 

 

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     (d) Except as provided in Section 14, the Company agrees to pay, or promptly reimburse the
Executive for, any reasonable and necessary expense incurred by the Executive in performing his
duties for the Company during the Term of this Agreement; provided, however, that the Executive
furnishes appropriate documentation for such expenses in accordance with the Company’s practices
and procedures.

     (e) The Executive shall be entitled to participate in such retirement plans, if any, both
defined contribution and defined benefit, qualified and non-qualified, as are then currently
available to the Company’s executive employees at the same location.

5. TERMINATION BENEFITS 

     In addition to the benefits described under the Agreement that survive the termination of the
Agreement, the following benefits will be paid on account of the termination of the Agreement for
the following reasons:

     (a) Upon termination of the Executive’s employment with the Company for Cause pursuant to
Section 2(b)(i); by the Executive for other than Good Reason; upon the Executive’s death; or by
either party through non-renewal at the end of the current Term, the Company shall pay to the
Executive or his beneficiaries, as the case may be, immediately after the date of termination, an
amount equal to the sum of the Executive’s accrued base salary and any bonus that has been awarded
and approved for payment to the Executive, but only to the extent that such base salary and bonus
(i) have been fully earned but not yet paid, and (ii) are not subject to a deferral election or
deferral requirement that has become irrevocable (the “Accrued Compensation”);

     (b) Upon termination of the Executive’s employment with the Company before the end of the
current Term (x) by the Company without Cause or (y) by the Executive for Good Reason or
Disability, the Executive shall be entitled to his Accrued Compensation as provided in Section
5(a). In exchange for execution of a general release agreement in a form acceptable to the
Company, the Executive shall also be entitled to the following benefits:

     (i) the Company shall make severance payments equal to twelve months’ Annual
Salary, as follows:

	 	(A)	 	on the first
regular pay date following the six-month anniversary of
the date of termination, the Company shall provide to
the Executive a lump-sum payment in an amount equal to
six months’ Annual Salary; and
	 
	 	(B)	 	in accordance
with the Company’s standard payroll practices, the
Company shall provide the Executive with continuation of
his Annual Salary for six months, starting on the first
regular pay date following the six-month anniversary of
the date of termination;

 

 

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     (ii) the Company shall continue the medical coverage of the Executive and his
family described in Section 4(b), above, at the expense of the Company, during the
period that the Executive and his family are eligible to receive coverage under
COBRA; provided, however, that such Company-paid medical coverage shall immediately
terminate if the Executive becomes covered (either before or after the date of the
Executive’s termination from the Company) by another employer group health plan or
by Medicare. When the Company-paid medical coverage described in the preceding
sentence terminates, the Executive and any qualified beneficiary may continue group
health coverage for the remainder, if any, of the period during which the Executive
or the Executive’s beneficiaries are eligible to receive coverage under COBRA,
provided that the Executive or qualified beneficiary pays the applicable COBRA
premium for such coverage; and

     (iii) the Company shall fully vest any outstanding stock options or restricted
stock previously granted to the Executive.

     (c) If the Executive is still employed by the Company upon a Change in Control, at the time of
the Change in Control, the Company shall fully vest any outstanding stock options or restricted
stock previously granted to the Executive, regardless of whether the Executive’s employment with
the Company terminates after the Change in Control. For purposes of this Agreement, a “Change in
Control” means any of the following events:

     (i) any person or group (within the meaning of Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended (“Exchange Act”)), other than RGGPLS, a
subsidiary of the Company or any employee benefit plan (or any related trust) of the
Company or a subsidiary of the Company, becomes, after August 30, 2004, the
beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange
Act) of 75% or more of the common stock of the Company;

     (ii) approval by a majority of the stockholders of the Company of either of the
following and consummation of same:

	 	(A)	 	a merger,
reorganization, consolidation, business combination or
similar transaction (any of the foregoing, a “Merger”)
as a result of which the persons who were the respective
beneficial owners of the outstanding common stock of the
Company immediately before such Merger are not expected
to beneficially own, immediately after such Merger,
directly or indirectly, more than 50% of the common
stock and the combined voting power of the then
outstanding voting securities of the corporation or
other entity resulting from such Merger in substantially
the same proportions as immediately before such Merger,
or

 

 

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	 	(B)	 	a plan or
agreement for the sale or other disposition of all or
substantially all of the assets of the Company.

     (iii) Notwithstanding the foregoing, there shall not be a Change in Control if,
in advance of such event, the Executive agrees in writing that such event shall not
constitute a Change in Control.

     (d) The Company’s obligations under this Section 5 shall survive termination of this
Agreement.

6. NONDISCLOSURE, INTELLECTUAL PROPERTY PROTECTION, NON-SOLICITATION AND NON-COMPETE OBLIGATION

     (a) Definitions of Protectible Information

     (i) “Intellectual Property” means all rights, title, and interests of
every kind and nature whatsoever, whether now known or unknown, in and to any
intellectual property, including without limitation any ideas, inventions (whether
or not patentable), designs, improvements, discoveries, innovations, patents,
trademarks, service marks, trade dress, trade names, trade secrets, works of
authorship, copyrights, films, audio and video tapes, other audio and visual works
of any kind, scripts, sketches, models, formulas, tests, analyses, software,
firmware, computer processes, computer and other applications, creations,
properties, and any documentation or other memorialization containing or relating to
the foregoing, in each case discovered, invented, created, written, developed,
taped, filmed, furnished, produced, or disclosed by or to the Executive in the
course of rendering services to the Company shall, as between the parties hereto, be
and remain the sole and exclusive property of the Company for any and all purposes
and uses whatsoever, and the Executive and his successors and assigns shall have no
right, title or interest of any kind or nature therein or thereto, or in or to any
results and proceeds therefrom. The Company shall have all rights, title and
interest in such Intellectual Property, whether such Intellectual Property is
conceived by the Executive alone or with others and whether conceived during regular
working hours or other hours.

     (ii) “Confidential Information” means any and all knowledge and
information relating to the business and affairs of the Company, its products,
processes and/or services and its customers, prospects, suppliers, creditors,
shareholders, contractors, agents, consultants and employees (“Related Persons”),
that is or is intended by any of them to be of a confidential nature, including, but
not limited to, any and all knowledge and information relating to products,
research, development, inventions, manufacture, purchasing, accounting, finances,
costs, profit margins, marketing, merchandising, selling, customer lists, customer
requirements, salary and personnel, pricing, pricing methods, computer programs and
software, databases and data processing and any and all other such knowledge,
information and materials conceived, designed, created, used or

 

 

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developed by or relating to the Company or any Related Person. However,
Confidential Information does not include any information that may be in the public
domain or come into the public domain not as a result of a breach by the Executive
of any of the terms or provisions of this Agreement.

     (b) Executive Acknowledgements.

     (i) The Executive acknowledges that: (a) during the Term and as a part of the
Executive’s employment, the Executive shall be afforded access to Confidential
Information and Intellectual Property (as defined herein); (b) public disclosure or
utilization of such Confidential Information or Intellectual Property could have an
adverse effect on the Company and its business; and (c) the non-disclosure
provisions of this Agreement are reasonable and necessary to prevent the improper
use or disclosure of Confidential Information or Intellectual Property.

     (ii) The Executive acknowledges that: (a) the Company’s business is national
in scope and its products are marketed throughout the United States; (b) the Company
competes with other businesses that are or could be located in any part of the
United States; (c) the Company provides resources and training to the Executive on
its products and processes that is available only to employees and cannot be
acquired outside of the Company; and (d) the non-compete and non-solicitation
provisions of this Agreement are reasonable and necessary to protect the Company’s
goodwill with its customer base, its investment in its employees and its interests
in its Intellectual Property and Confidential Information.

     (c) Obligations Regarding Intellectual Property.

     (i) The Executive acknowledges and agrees that all copyrightable works included
in the definition of Intellectual Property shall be “works made for hire” within the
meaning of the Copyright Act of 1976, as amended (17 U.S.C. §101) (the “Act”), and
that the Company is to be the “author” within the meaning of the Act. The Executive
acknowledges and agrees that all Intellectual Property is the sole and exclusive
property of the Company. In the event that title to any or all of the Company’s
Intellectual Property does not or may not, by operation of law, vest in Company, the
Executive hereby assigns to Company, all of the Executive’s rights, title and
interests in all Intellecutal Property and all copies relating to such Intellectual
Property, in whatever medium fixed or embodied, and in all writings relating thereto
in the Executive’s possession or control. The Executive expressly waives any rights
in any Intellectual Property or any such work made for hire.

     (ii) The Executive agrees not to file any patent, copyright or trademark
applications relating to any Intellecutal Property. The Executive agrees to assist
the Company whether before or after the termination of employment, in perfecting,
registering, maintaining, and enforcing, in any jurisdiction, the

 

 

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Company’s rights in its Intellecutal Property by performing promptly all acts
and executing all documents deemed necessary or convenient by the Company.

     (iii) If the Company is unable, after duly reasonable effort, to secure the
Executive’s signature on any such documents, the Executive hereby irrevocably
designates and appoints the Company and its duly authorized officers and agents as
the Executive’s agent and attorney-in-fact, to do all lawfully permitted acts
(including but not limited to the execution, verification and filing of applicable
documents) with the same legal force and effect as if performed by the Executive.

     (d) Obligations Regarding Confidential Information.

     (i) During the Term and thereafter, the Executive agrees that he will not: (a)
use or permit the use of any Confidential Information, however acquired, except as
necessary within the scope of employment with the Company to perform his duties; (b)
duplicate or replicate or cause or permit others to duplicate or replicate any
document or other material in any medium embodying any Confidential Information,
except as necessary in connection with the Executive’s employment with the Company;
or (c) disclose or permit the disclosure of any Confidential Information to any
person outside the Company, without the prior written consent of the President or
CEO of the Company.

     (ii) The Executive acknowledges that the Company owns all rights, title and
interest in and to the Confidential Information. The Executive acquires hereunder
no rights, title or interest in any Confidential Information.

     (iii) The Executive agrees that he shall not remove from the Company’s premises
(except to the extent such removal is for purposes of the performance of his duties
at home or while traveling, or except as otherwise specifically authorized by the
Company), any Confidential Information or Company property (e.g., computers, cell
phones, memoranda, office supplies, software, etc). Upon termination of this
Agreement by either party, or upon the request of the Company during the Term, the
Executive shall return to the Company all of the Confidential Information and
Company property in his possession or subject to his control, and the Executive
shall not retain any copies of such items. Upon request, the Executive will execute
a sworn statement attesting that he has complied with all of the terms of this
provision.

     (e) No Outstanding Obligations. The Executive hereby represents and warrants that:
(a) the Executive’s performance of the terms of this Agreement and as an employee of the Company
will not breach any confidentiality or other agreement that the Executive entered into with former
employers or other entities, and (b) the Executive is not bound by any agreement, either oral or
written, that conflicts with this Agreement.

     (f) Covenant Not to Compete. The Executive hereby agrees that, during the Term of
this Agreement and for a period of one (1) year following the termination of his employment

 

 

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with the Company (the “Post-Employment Restricted Period”), the Executive shall not engage or
invest in, own, manage, operate, finance, control or participate in the ownership, management,
operation, financing or control of, be employed by, lend his name to, lend his credit to or render
services or advice to any business that competes with the business then being conducted by the
Company or that had been conducted by the Company within the prior twelve (12) months,
provided, however, that the Executive may purchase or otherwise acquire up to three
percent of any class of securities of any enterprise if such securities are listed on any national
or regional securities exchange or have been registered under Section 12(g) of the Securities
Exchange Act of 1934, as amended.

     (g) Non-Solicitation. The Executive agrees that, during the Term and for the
Post-Employment Restricted Period, he shall not, directly or indirectly, solicit business of the
same or similar type being carried on by the Company during his employment with the Company from
any person or entity that was a customer of the Company during his employment with the Company,
where the Executive either had personal contact with such person or entity during and by reason of
the Executive’s employment with the Company or supervised the individual(s) who had responsibility
for maintaining the customer’s relationship with Company.

     (h) No Raiding. The Executive agrees that, during the Term and for the
Post-Employment Restricted Period, he shall not, directly or indirectly, solicit, recruit, employ
or otherwise engage as an employee, independent contractor or advisor or attempt to solicit,
recruit, employ or otherwise engage as an employee, independent contractor or adviser, any person
who is or was an employee or independent contractor of the Company at any time during the
Executive’s last twenty-four (24) months of employment with the Company, or in any manner induce or
attempt to induce any person who is or was an employee or independent contractor of the Company
during the Executive’s last twenty-four (24) months of employment with the Company to terminate
that person’s relationship with the Company.

     (i) Non-Disparagement. The Executive hereby agrees that he will not directly or
indirectly disparage the Company or disseminate, or cause or permit others to disseminate, negative
statements regarding the Company or any other employee, officer, director or agent of the Company.
Notwithstanding the foregoing, the Executive is not hereby barred or restricted from exercising any
right of speech or expression protected by applicable federal, state or local law from restriction
by the Company.

     (j) Employment Relationship. Nothing in this Agreement shall be construed to prevent
the Executive from seeking or holding employment or a consulting relationship after his term of
employment, with any person, firm, corporation, or other entity, which is not in competition with
the business of the Company as defined in this Section 6 of the Agreement.

7. ENFORCEMENT AND REMEDIES

     (a) Enforcement. It is the desire and intent of the parties hereto that the
provisions of this Agreement shall be enforced to the fullest extent permissible under the laws and
public policies applied in each jurisdiction in which enforcement is sought. Accordingly, although
the Executive and the Company consider the restrictions contained in this Agreement to be
reasonable for the purpose of preserving the Company’s goodwill and proprietary rights, if any

 

 

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particular provision of this Agreement shall be adjudicated to be invalid or unenforceable,
such provision shall be deemed amended to delete the portion thus adjudicated to be invalid or
unenforceable, such deletion to apply only with respect to the operation of such provision in the
particular jurisdiction in which such adjudication is made. It is expressly understood and agreed
that although the Company and the Executive consider the restrictions contained in Section 6 to be
reasonable, if a final determination is made by a court of competent jurisdiction that the time or
territory or any other restriction contained in this Agreement is unenforceable against the
Executive, the provisions of this Agreement shall be deemed amended to apply as to such maximum
time and territory and to such maximum extent as such court may judicially determine or indicate to
be enforceable.

     (b) Remedies; Survival. The parties acknowledge that the Company’s damages at law
would be an inadequate remedy for the breach by the Executive of any provision of Section 6, and
agree in the event of such breach that the Company may obtain temporary and permanent injunctive
relief restraining the Executive from such breach, and, to the extent permissible under the
applicable statutes and rules of procedure, a temporary injunction may be granted immediately upon
the commencement of any such suit. Nothing contained herein shall be construed as prohibiting the
Company from pursuing any other remedies available at law or equity for such breach or threatened
breach of Section 6, or for any breach or threatened breach of any other provision of this
Agreement. The obligations contained in Section 6 shall survive the termination or expiration of
the Executive’s employment with the Company and, as applicable, shall be fully enforceable
thereafter in accordance with the terms of this Agreement.

     (c) Arbitration. The parties agree that any claim, controversy, or dispute between
Executive and the Company (including without limitation Company’s affiliates, officers, employees,
representatives, or agents) arising out of or relating to this Agreement, other than a dispute
concerning the breach or threatened breach of Section 6 of this Agreement, shall be submitted to
and settled by arbitration before a single arbitrator in a forum of the American Arbitration
Association (“AAA”) located in Broward County in the State of Florida and conducted in accordance
with the National Rules for the Resolution of Employment Disputes. In such arbitration: (a) the
arbitrator shall agree to treat as confidential evidence and other information presented by the
parties to the same extent as Confidential Information under this Agreement must be held
confidential by the Executive, (b) the arbitrator shall have no authority to amend or modify any of
the terms of this Agreement, and (c) the arbitrator shall have ten business days from the closing
statements or submission of post-hearing briefs by the parties to render their decision. All
AAA-imposed costs of said arbitration, including the arbitrator’s fees, if any, shall be borne by
Company. All legal fees incurred by the parties in connection with such arbitration shall be borne
by the party who incurs them, unless applicable statutory authority provides for the award of
attorneys’ fees to the prevailing party and the arbitrator’s decision and award provides for the
award of such fees. Any arbitration award shall be final and binding upon the parties, and any
court having jurisdiction may enter a judgment on the award. The foregoing requirement to
arbitrate claims, controversies, and disputes applies to all claims or demands by Executive,
including without limitation any rights or claims the Executive may have under the Age
Discrimination in Employment Act of 1967, Title VII of the Civil Rights Act of 1964, the Americans
with Disabilities Act of 1991, the Equal Pay Act, the Family and Medical Leave Act, or any other
federal, state or local laws or regulations pertaining to Executive’s employment or the termination
of Executive’s employment.

 

 

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8. WITHHOLDING

     The Company shall withhold such amounts from any compensation or other benefits payable to the
Executive under this Agreement on account of payroll and other taxes as may be required by
applicable law or regulation of any governmental authority.

9. ENTIRE AGREEMENT

     This Agreement contains the entire understanding between the parties hereto and supersedes all
other oral and written agreements or understandings between them. All previous oral or written
agreements between the parties hereto shall be deemed to have been completely fulfilled by both
parties and shall be superseded by this Agreement. No modification or addition hereto or waiver or
cancellation of any provision shall be valid except by a writing signed by the party to be charged
therewith.

10. SUCCESSORS AND ASSIGNS

     This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto
and their heirs, successors, assigns and personal representatives. As used herein, the successors
of the Company shall include, but not be limited to, any successor by way of merger, consolidation,
sale of all or substantially all of its assets, or similar reorganization. In no event may
Executive assign any duties or obligations under this Agreement. It is expressly agreed for
purposes of this Agreement that the spouse and children of Executive shall be third-party
beneficiaries of Executive under this Agreement and shall be entitled to enforce the rights of
Executive hereunder in the event of Executive’s death or Disability.

11. CONTROLLING LAW

     The validity and construction of this Agreement or of any of its provisions shall be
determined under the laws of Florida, without giving effect to any choice of law or conflict of law
provision or rule that would cause the application of the laws of any jurisdiction other than
Florida. The invalidity or unenforceability of any provision of this Agreement shall not affect or
limit the validity and enforceability of the other provisions hereof.

12. COUNTERPARTS

     This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original and all of which together shall constitute one and the same instrument.

13. HEADINGS

     The headings herein are inserted only as a matter of convenience and reference, and in no way
define, limit or describe the scope of this Agreement or the intent of any provisions thereof.

14. INDEMNIFICATION

     The Company shall indemnify and hold the Executive harmless from and against all claims,
investigations, actions, awards, and judgments, including costs and attorneys’ fees,

 

 

Page 13 of 13

incurred by the Executive in connection with acts or decisions made by the Executive in good
faith in his capacity as an executive of the Company, so long as the Executive reasonably believed
that the acts or decisions were in the best interests of the Company and (with respect to any
criminal action) the Executive had no reason to believe the Executive’s conduct was unlawful. The
Company further agrees to pay the reasonable expenses of private counsel or investigators incurred
in representing the Executive in any audit, inquiry, regulatory review, or similar action or
proceeding covered by this indemnification. The Company shall not settle any claim or action or
pay any award or judgment against Executive without his prior written consent, which shall not be
unreasonably withheld. The Company may obtain coverage for the Executive under an insurance policy
covering the directors and officers of the Company against claims set forth herein if such coverage
is possible at a reasonable cost, provided, however, it is understood and agreed that the Company’s
obligation to indemnify the Executive as set forth in this Section 14 shall not be affected by the
Company’s ability or inability to obtain insurance coverage.

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

	 	 	 
	WITNESS:	 	
NATIONSHEALTH INC.
	/s/
 
	 	
By: /s/ Glenn M. Parker
 

Name: Glenn M. Parker, M.D.

Title: Chief Executive Officer
	WITNESS:	 	 
	/s/ Joan C. Tremain
 
	 	
By: /s/ Robert E. Tremain
 

Name: Robert E. Tremain<PAGE>
                                                                    EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT by and between CENTRAL PARKING CORPORATION, a
Tennessee corporation (the "Company"), and EMANUEL J. EADS, an individual
residing in Brentwood, Tennessee (the "Executive"), is effective as of August 2,
2005.

     IN CONSIDERATION of the mutual covenants contained in this Agreement, the
parties hereby agree as follows:

                                    SECTION I
                                   EMPLOYMENT

     Executive is currently employed by the Company. The Company desires to
continue to employ the Executive, and the Executive agrees to continue to be
employed by the Company upon the terms and conditions provided in the Agreement.

                                   SECTION II
                          POSITION AND RESPONSIBILITIES

     During the Period of Employment (as such term is defined herein below), the
Executive agrees to serve as President and Chief Executive Officer of the
Company, and to be responsible for the typical management responsibilities
expected of an officer holding such position(s) and such other responsibilities
as may be assigned to Executive from time to time by the Board of Directors of
the Company (in each case consistent with past practice).

                                   SECTION III
                                TERMS AND DUTIES

     A. Period of Employment.

     The period of Executive's employment under this Agreement will commence as
of the date of this Agreement and shall continue through August 1, 2006
("Initial Term"), subject to extension or termination as provided in this
Agreement ("Period of Employment"). On each anniversary of the commencement of
the Period of Employment, the period of Executive's employment shall be
automatically extended for additional one (1) year periods, unless either party
gives notice thirty (30) days in advance of such anniversary date of such
party's intent not to extend the Period of Employment.

     B. Duties.

     During the Period of Employment, the Executive shall devote substantially
all of his business time, attention and skill to the business and affairs of the
Company. The Executive will perform faithfully the duties which may be assigned
to him from time to time by the Board of Directors of the Company, consistent
with Section II above.

<PAGE>

                                   SECTION IV
                             COMPENSATION; BENEFITS

     For all services rendered by the Executive in any capacity during the
Period of Employment, the Executive shall be compensated as follows:

     A. Base Salary. The Company shall pay the Executive an annual base salary
("Base Salary") in the amount Five Hundred Fifty Thousand Dollars ($550,000).
The Base Salary shall be payable according to the customary payroll practices of
the Company, but in no event less frequently than once each month. The Base
Salary shall be reviewed each fiscal year and shall be subject to increase
according to the policies and practices adopted by the Company from time to
time. For the purposes of this Agreement, "Base Salary" shall mean the amount
set above and, to the extent it is subsequently increased, such increased
amount.

     B. Annual Incentive Award. The Company will pay an annual incentive
compensation award or bonus ("Annual Incentive Award") to the Executive in
accordance with the Company's bonus plan or program providing benefits
substantially similar to bonus plans as may be adopted from time to time by the
Company.

     C. Additional Benefits. The Executive will be entitled to participate in
all employee benefit plans or programs and receive all benefits and perquisites
for which senior executives of the Company are eligible under any existing or
future plan or program established by the Company for senior executives. The
Executive will participate to the extent permissible under the terms and
provisions of such plans or programs in accordance with program provisions.
These may include, among others, group hospitalization, health, dental care,
vision, life or other insurance plans, auto allowance, profit sharing plans,
401(k) plans or other retirement plans, sick leave plans, travel or accident
insurance, disability insurance, stock purchase programs and stock option or
other long-term incentive plans. Nothing in this Agreement will preclude the
Company from amending or terminating any of the plans or programs applicable to
salaried or senior executives as long as such amendment or termination is
applicable to all salaried employees or senior executives. The Executive will be
entitled to annual paid vacation as established by the Company and consistent
with past practices.

                                    SECTION V
                                    BUSINESS

     The Company will reimburse the Executive for all reasonable travel,
accommodations and other expenses incurred by the Executive in connection with
the performance of his duties and obligations under this Agreement.

                                   SECTION VI
                                   DISABILITY

     A. In the event the Executive becomes disabled during the Period of
Employment to an extent which entitles him to benefits under the Company's
long-term disability benefit plan

                                        2

<PAGE>

applicable to senior executive officers generally as in effect from time to
time, Executive's employment shall terminate automatically and Executive shall
be entitled to receive amounts payable pursuant to the terms of a long-term
disability insurance policy or similar arrangement which the Company maintains
during the Period of Employment. In this case, normal compensation will cease
except for (i) earned but unpaid Base Salary, (ii) the greater of (a) the target
Annual Incentive Award, or (b) the Annual Incentive Award actually earned, and
(iii) any other earned but unpaid incentive plan awards, all payable on a
prorated basis for the year in which the disability occurred.

     B. During the period the Executive is receiving payments of either regular
compensation or disability insurance described in this Agreement and as long as
he is physically and mentally able to do so, the Executive will furnish
information and assistance to the Company and from time to time will make
himself available to the Company to undertake assignments consistent with his
prior position with the Company and his physical and mental health. If the
Company fails to make a payment or provide a benefit required as part of the
Agreement, the Executive's obligation to fulfill information and assistance will
end.

     C. The term "disability" will have the same meaning as under any long-term
disability insurance provided pursuant to this Agreement or otherwise.

                                   SECTION VII
                                      DEATH

     In the event of the death of the Executive during the Period of Employment,
the Company's obligation to make Base Salary and bonus payments under this
Agreement shall cease as of the date of death, except for: (i) earned but unpaid
Base Salary, (ii) the greater of (a) the target Annual Incentive Award, or (b)
the Annual Incentive Award actually earned, and (iii) any other earned but
unpaid incentive plan awards, all payable on a prorated basis for the year in
which the Executive's death occurred.

                                  SECTION VIII
               TERMINATION AND EFFECT OF TERMINATION OF EMPLOYMENT

     A. If the Executive's employment terminates due to a Without Cause
Termination (as such term is defined later in this Agreement), the Company shall
continue to pay to the Executive upon such termination for twenty-four (24)
months, on the first day of each month, the sum of (i) his monthly Base Salary,
plus (ii) an amount equal to one-twelfth (1/12) of the lesser of (a) the three
year average of Annual Incentive Awards that Executive received during the
Company's immediately preceding three fiscal years, or (b) the target Annual
Incentive Award for the fiscal year in which the termination occurs, though in
no case shall the total Base Salary and Annual Incentive Award paid to Executive
equal less than one hundred twenty-five per cent (125%) of Executive's Base
Salary. Earned but unpaid Base Salary and unreimbursed expenses and unpaid
Annual Incentive Award through the date of termination will also be paid in a
lump sum within thirty (30) days of such the termination. In addition, the
Company shall continue to provide for a period of twenty-four (24) months all
welfare benefits customarily provided to Company executives, including group
hospitalization, healthcare insurance, dental care, vision, life insurance and
disability insurance ("Welfare Benefits") and shall provide outplacement
assistance of up to $25,000. [In addition, if Executive's employment terminates
due to a Without Cause Termination, all unvested

                                        3

<PAGE>

options held by Executive on the date of termination shall vest as of such date
and Executive shall have the right to exercise all vested options during the
one-year period following termination.]

     B. If the Executive's employment terminates due to a Termination for Cause
any earned but unpaid Base Salary and unreimbursed expenses through the date of
termination will be paid in a lump sum to Executive. No other payments will be
made by the Company.

     C. If the Executive's employment terminates due to a voluntary termination
by Executive (but not Constructive Discharge) any earned but unpaid Base Salary
and unreimbursed expenses through the date of termination, earned but unpaid
Annual Incentive Award through the date of termination, and any other incentive
plan awards earned will all be paid in a lump sum to Executive and shall be paid
within thirty days of the termination. No other payments will be made by the
Company.

     D. Upon termination of the Executive's employment, the Period of Employment
will cease as of the date of the termination and all benefits other than as
specifically provided herein or in other agreements between the Executive and
the Company, shall terminate on such date.

     E. The Company may terminate the Executive by complying with either the
"Termination for Cause" or "Without Cause Termination" as defined below.
Executive may terminate this Agreement at any time by providing thirty (30) days
prior written notice to the Company of a voluntary termination, a termination in
accordance with Section XI herein, or a "Constructive Discharge" as defined
below:

        1. A "Termination for Cause" means termination of the Executive's
employment by the Company, acting in good faith, by written notice to the
Executive specifying the events relied upon, as a result of (a) Executive's
embezzlement, intentional mishandling of Company funds, or theft or fraud with
respect to the business or affairs of the Company, (b) Executive's conviction of
a felony or other crime involving moral turpitude which adversely affects the
Executive's job-related responsibilities, (c) a violation by Executive of the
covenants set forth in Section IX of this Agreement, or (d) following written
notice by the Company, the Executive's deliberate and willful continuing refusal
to substantially perform the duties and obligations of his position. The Company
must provide such notice thirty (30) days prior to termination. For purposes of
this definition, no act, or failure to act, on the Executive's part will be
considered "willful" unless it is done, or omitted to be done, by the Executive
in bad faith and without reasonable belief that the Executive's action or
omission was in the best interest of the Company.

          2. A "Without Cause Termination" means (i) a termination of the
Executive's employment by the Company other than a Termination for Cause or
other than a termination due to death or disability; (ii) a Constructive
Discharge; or (iii) the failure of the Company to renew this Agreement under
Section IIIA.

          3. A "Constructive Discharge" means termination of the Executive's
employment by the Executive due to a failure of the Company to fulfill its
obligations under this Agreement in any material respect, including without
limitation (i) any reduction of the Executive's Base Salary or any reduction in
Executive's Annual Incentive Award target or any other Company incentive plan
target (except that the target may be reduced up to twenty-five per cent if it
is reduced

                                        4

<PAGE>

by the same percentage for all other similarly situated executive officers),
(ii) a substantial reduction of benefits (other than a reduction in benefits
applicable to all employees), or (iii) the reduction in the title, authority,
and/or duties of the Executive other than isolated, insubstantial or inadvertent
action that is remedied by the Company following written notice by the
Executive. The Executive will provide the Company a written notice which
describes the circumstances being relied on for the termination with respect to
the Agreement within thirty (30) days after the event giving rise to the notice.
The Company will have thirty (30) days to remedy the situation prior to the
termination for Constructive Discharge.

     F. Executive shall not be required to offset against amounts due from the
Company under this Section for any salary, bonus or other benefits (other than
the Welfare Benefits) received by Executive from a third-party, and Executive
shall be under no duty to mitigate by seeking or accepting another position.

                                   SECTION IX
                      OTHER DUTIES OF THE EXECUTIVE DURING
                       AND AFTER THE PERIOD OF EMPLOYMENT

     A. The Executive will, with reasonable notice during or after the Period of
Employment, furnish information as is in his possession and cooperate with the
Company as may reasonably be requested in connection with any claims or legal
actions in which the Company is or may become a party.

     B. The Executive recognizes and acknowledges that all proprietary
information pertaining to the affairs, business, clients, customers or other
relationships of the Company, as hereinafter defined, is confidential and is a
unique and valuable asset of the Company. Access to and knowledge of this
proprietary information are essential to the performance of the Executive's
duties under this Agreement. The Executive will not during the Period of
Employment or after except to the extent reasonably necessary in performance of
the duties under this Agreement, give to any person, firm, association,
corporation or governmental agency any information concerning the affairs,
business, clients, customers or other relationships of the Company except as
required by law. The Executive will not make use of this type of information for
his own purposes or for the benefit of any person or organization other than the
Company. The Executive will also use his reasonable best efforts to prevent the
disclosure of this information by others. All records, memoranda, and documents
of any kind relating to the business of the Company whether made by the
Executive or otherwise coming into his possession in the course of his
employment are confidential and will remain the property of the Company.

     C. During the Period of Employment and for a twelve (12) month period
thereafter, the Executive will not use his status with the Company to obtain
loans, goods or services from another organization on terms that would not be
available to him in the absence of his relationship to the Company. During the
Period of Employment and, in the case of (i) through (iii) below, for a twelve
(12) month period, and in the case of (iv) through (vi) below, for a twenty four
(24) month period, following termination of employment, the Executive will not,
directly or indirectly, either as an individual for his own account or as a
consultant, partner, joint venturer, employee, agent, officer, director,
shareholder or member: (i) make any statements or perform any acts intended to
advance the interest of any existing or prospective competitors of the Company;
(ii) own or hold any

                                        5

<PAGE>

proprietary interest in or be employed by, consult with or receive compensation
from, any party engaged in the same or any similar business as the Company as of
the date of termination, in the United States and other areas where the Company
conducts its business; (iii) solicit any members of the then current clients,
customers or landlords of the Company as of the date of termination or discuss
with any employee or consultant of the Company as of the date of termination
information or operation of any business intended to compete with the Company;
(iv) solicit or attempt to solicit any clients, customers or landlords of the
Company existing on the date of termination with the intent or purpose to
perform services for such clients, customers or landlords which are the same or
similar to those provided by the Company or its affiliates, or encourage or
attempt to encourage any such clients, customers or landlords to not continue or
otherwise modify adversely its business relationship with the Company; (v) enter
into any lease, sublease, license agreement, service agreement, option
agreement, management or operating agreement relating to, or otherwise acquire
any rights with respect to, any of the parking facilities managed or operated by
the Company or its affiliates on the date of Executive's termination; or (vi)
engage, hire, solicit or attempt to solicit for the purpose of hiring or
engaging, as an employee, agent, consultant, independent contractor, or in any
other capacity, any of the Company's or its affiliates employees or consultants.
For purposes of this Section IX, "Company" shall include any of the Company's
subsidiaries, joint ventures, partnerships or affiliates, to the extent that the
Company has an interest of 50% or greater in such entities. For the purposes of
the Agreement, proprietary interest means legal or equitable ownership, whether
through stock holdings or otherwise, of a debt or equity interest (including
options, warrants, rights and convertible interests) in a business firm or
entity, or ownership of more than 5% of any class of equity interest in a
publicly-held company. The Executive acknowledges that the covenants contained
herein are reasonable as to geographic and temporal scope and the sufficiency of
the consideration for such covenants.

     D. The Executive acknowledges that his breach or threatened or attempted
breach of any provision of Section IX would cause irreparable harm to the
Company not compensable in monetary damages and that the Company shall be
entitled, in addition to all other applicable remedies, to a temporary and
permanent injunction and a decree for specific performance of the terms of
Section IX without being required to prove damages or furnish any bond or other
security. If any provision of this Section IX or any other section of this
Agreement is held to be invalid by a court of competent jurisdiction, then such
provision shall be severed from this Agreement, and such invalidity shall not
affect any other provision of this Agreement, the balance of which shall remain
in full force and effect. In the event that any provision of this Section IX
shall ever be deemed to exceed the time or geographical limits permitted by
applicable law, then such provisions shall be reformed to the maximum time and
geographical limits permitted by applicable law. In the event of the material
breach by Executive of a provision of this Section IX, which remains uncured
after thirty days' notice to Executive, the Company shall be entitled to cease
all payments of severance and the provision of benefits to Executive.

                                    SECTION X
                                 INDEMNIFICATION

     The Company will indemnify the Executive to the fullest extent permitted by
the laws of the state of Tennessee in effect at that time, or charter and bylaws
of the Company whichever affords the greater protection to the Executive.

                                        6

<PAGE>

                                   SECTION XI
                                CHANGE IN CONTROL

     A. In the event there is a Change in Control (as such term is defined
below) and within the twenty four (24) month period following such event
Executive terminates his employment for "Good Reason," as defined below, or is
terminated due to a Without Cause Termination, the Company shall in a lump sum
pay on the date of termination to the Executive the sum of (i) three times his
Base Salary, plus (ii) an amount equal to three times the Executive's target
Annual Incentive Award that Executive was to receive during the Company's fiscal
year in which the Change in Control took place, plus (iii) a continuation of
Welfare Benefits and other perquisites of employment (including payment on the
date of termination of the Company portion of 401k contributions that would have
been made over the subsequent three years based on the Executive's compensation
and Company contribution rate in effect prior to the Change in Control) for a
period of three years following the termination, plus (iv) up to $25,000 in
outplacement assistance, plus (v) an amount equal to the greater of (i) the
target Annual Incentive Award, or (ii) actual earned Annual Incentive Award,
calculated on a pro-rated basis for the period commencing on the Change in
Control for a termination in the same fiscal year in which the Change in Control
occurs and commencing with the beginning of the fiscal year in which the
termination occurs for a termination following a fiscal year in which there is a
Change in Control and ending on the date of termination. Further, in the event
of a Change in Control followed by a termination as described above, the Company
shall pay to Executive in a lump sum upon the Change in Control an amount equal
to the greater of (i) the target Annual Incentive Award calculated on a
pro-rated basis for the fiscal year in which the Change in Control occurs and
ending on the date of the Change in Control, or (ii) the actual earned Annual
Incentive Award calculated for the fiscal year in which the Change in Control
occurs and ending on the date of the Change in Control. In addition, in the
event there is a Change in Control, (i) all unvested deferred stock units, (ii)
all unvested stock options other than Special Options, as is hereafter defined,
(iii) all vested but currently unexercisable special options granted on February
6, 2002 (the "Special Options"), (iv) all unvested Special Options with an
accelerated vesting target price or exercise price equal to or less than the
price per share established for the Company stock in the Change in Control
transaction, shall immediately vest and become exercisable upon the Change in
Control.

     B. For purposes of this Agreement, "Change in Control" shall mean the first
to occur of the following events: (i) the consummation of a plan of liquidation
with respect to the Company; (ii) the sale or other divestiture of all or
substantially all of the assets (excluding the sale of assets in the ordinary
course of business or sale and lease back and other transactions that are
primarily a financing transaction for the Company or related to an acquisition
by an employee benefit plan of the Company) of the Company, including the sale
of its direct or indirect majority-owned subsidiaries; (iii) the acquisition by
any person or affiliated group of persons as defined in Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended (the "1934 Act") of thirty per cent
(30%) or more of the outstanding voting power of the Company so that such person
or affiliated group shall become the beneficial owner, as defined in Rule 13d-3
of the 1934 Act, directly or indirectly, of such voting power of the Company
other than acquisitions by the Company, a subsidiary of the Company, an employee
benefit plan of the Company, or Monroe J. Carell, Jr. or his family members or
any entity owned directly or indirectly by Mr. Carell or his family members or
his or their estates; (iv) the consummation of a consolidation or merger of the
Company with another entity, or the

                                        7

<PAGE>

reorganization of the Company, unless (a) the consummation of such
consolidation, merger, or reorganization would result in the stockholders of the
Company immediately before such consolidation or merger owning, in the
aggregate, more than seventy percent (70%) of the outstanding voting power of
the surviving entity immediately after such consolidation, merger or
reorganization; (b) the individuals who, as of the date hereof, constitute the
Board of the Company (the "Incumbent Board") continue to constitute at least a
majority of the Board; provided, however, that any individual becoming a
director subsequent to the date hereof whose election, or nomination for
election by the Company's shareholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a person or group other
than the Board; and (c) following the consummation of a consolidation or merger
or reorganization, no person or affiliated group of persons as defined in 1934
Act owns thirty percent (30%) or more (other than Mr. Carell or his family
members or any entity owned directly or indirectly by Mr. Carell or his family
members or his or their estates) of the outstanding voting power of the Company;
or (v) the members of the Incumbent Board cease for any reason to constitute at
least a majority of the Board; provided, however, that any individual becoming a
director subsequent to the date hereof whose election, or nomination for
election by the Company's shareholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a person or group other
than the Board.

     C. Notwithstanding anything to the contrary herein, Executive shall not be
entitled to receive benefits under both Sections VIII and XI.

     D. Any dispute related to the benefits to be paid under this Section shall
be governed by the arbitration provisions of Section XVI.

     E. "Good Reason" means the occurrence after a Change in Control of any of
the events or conditions described in clauses (1) through (7) hereof:

          1. any (i) change in the Executive's status, title, position or
responsibilities which, in the Executive's reasonable judgment, represents an
adverse change from the Executive's status, title, position or responsibilities
as in effect at any time within 180 days preceding the date of the Change in
Control or at any time thereafter, (ii) assignment to the Executive of duties or
responsibilities which, in the Executive's reasonable judgment, are inconsistent
with the Executive's status, title, position or responsibilities as in effect at
any time within 180 days preceding the date of the Change in Control or at any
time thereafter, or (iii) removal of the Executive from or failure to reappoint
or reelect the Executive to any of such offices or positions, in each case
except in connection with the termination by the Company of the Executive's
employment for death, disability, or Termination for Cause;

                                        8

<PAGE>

          2. a reduction in the Executive's Base Salary or Annual Incentive
Award opportunity (a reduction in Executive's target Annual Incentive Award);
the actual payment of less than 75% of the greater of (i) Executive's target
Annual Incentive Award; or (ii) the average of the three prior Annual Incentive
Awards earned by Executive (or, to the extent Executive has not been employed
for three full fiscal years, the average of the actually completed fiscal
years); or a reduction in target awards under any other incentive plan(s)); or
any failure to pay the Executive any compensation or benefits to which the
Executive is entitled within ten (10) days after the date when due;

          3. the imposition of a requirement that the Executive be based at any
place outside a 50-mile radius of the Company's current principal office, except
for reasonably required travel on Company business which is not materially
greater in frequency or duration than prior to the Change in Control;

          4. the failure by the Company to (i) continue in effect (without
reduction in benefit level or reward opportunities) any material compensation or
employee benefit plan in which the Executive was participating at any time
within 180 days preceding the date of the Change in Control or at any time
thereafter, unless such plan is replaced with a plan that provides substantially
equivalent compensation or benefits to the Executive or (ii) provide the
Executive with compensation and benefits, in the aggregate, at least equal (in
terms of benefit levels and reward opportunities) to those provided for under
each other employee benefit plan, program and practice in which the Executive
was participating at any time within 180 days preceding the date of the Change
in Control or at any time thereafter;

          5. the insolvency or the filing (by any party, including the Company)
of a petition for bankruptcy with respect to the Company, which petition is not
dismissed within sixty (60) days;

          6. any material breach by the Company of any provision of this
Agreement; or

          7. any purported Termination for Cause of the Executive's employment
by the Company which does not comply with the terms of this Agreement.

     Any event or condition described in clauses (1) through (7), or a Without
Cause Termination, that occurs prior to a Change in Control but which the
Executive reasonably demonstrates (a) was at the request or direction of a
person (or group) who indicated the intention to, or took takes steps reasonably
calculated to, effect a Change in Control and who subsequently effects a Change
in Control, or (b) otherwise arose in connection with, or in anticipation of, a
Change in Control which subsequently occurs, will constitute Good Reason for
purposes of this Agreement notwithstanding that it occurred prior to the Change
in Control.

     F. Notwithstanding anything herein to the contrary, in the event a Without
Cause Termination occurs following a Change in Control or a termination for Good
Reason occurs, Executive shall not be bound by the provisions of Section IX
following termination of Executive's employment.

                                        9

<PAGE>

     G. If the Internal Revenue Service asserts, or if Executive or the Company
is advised in writing by an accounting firm of regional standing, that any
payment in the nature of compensation to, or for the benefit of, Executive from
the Company (or any successor in interest) constitutes an "excess parachute
payment" under section 280G of the Internal Revenue Code, whether paid pursuant
to this Agreement or any other agreement, and including property transfers
pursuant to securities and other employee benefits that vest upon a change in
the ownership of effective control of the Company (collectively, the "Excess
Parachute Payments") the Company shall pay to Executive, on demand, a cash sum
sufficient (on a grossed-up basis) to indemnify Executive and hold him harmless
from the following (the "Tax Indemnity Payment"):

          1. The amount of excise tax under section 4999 of the Internal Revenue
Code on the entire amount of the Excess Parachute Payments and all Tax Indemnity
Payments to Executive pursuant to this Section:

          2. The amount of all local, state, and federal income and FICA taxes
on all Tax Indemnity Payments to Executive pursuant to this Section (determined
in each case at the highest marginal tax rate);

          3. The amount of any fines, penalties, and interest that have been or
potentially will be, assessed in respect of any excise or income tax described
in the preceding clauses (1) or (2) so that the amounts of Excess Parachute
Payments received by Executive will not be diminished by an excise tax imposed
under section 4999 of the Internal Revenue Code or by any local, state, or
federal income tax or FICA tax or fines, penalties or interest payable in
respect of the Tax Indemnity Payments received by Executive pursuant to this
Section.

     H. Executive shall not be required to offset against amounts due from the
Company under this Section for any salary, bonus or other benefits (other than
the welfare benefits) received by Executive from a third-party, and Executive
shall be under no duty to mitigate by seeking or accepting another position.

                                   SECTION XII
                                WITHHOLDING TAXES

     The Company may directly or indirectly withhold from any payments under
this Agreement all federal, state, city or other taxes that shall be required
pursuant to any law or governmental regulation.

                                  SECTION XIII
                           EFFECTIVE PRIOR AGREEMENTS

     This Agreement contains the entire understanding between the Company and
the Executive with respect to the subject matter herein and supersedes any prior
agreement of any kind (other than those written option agreements previously
entered into between the Company and Executive which will remain in force and
effect), including any other employment or severance agreements between the
Company, its affiliates and the Executive.

                                       10

<PAGE>

                                   SECTION XIV
       CONSOLIDATION, MERGER OR SALE OF ASSETS; COOPERATION IN CONNECTION
                       WITH CHANGE IN CONTROL TRANSACTION

     Nothing in this Agreement shall preclude the Company from consolidating or
merging into or with, or transferring all or substantially all of its assets to,
another entity that assumes this Agreement and all obligations and undertakings
of the Company hereunder. Upon such a consolidation, merger or sale of assets,
the term "the Company" as used will mean the other entity and this Agreement
shall continue in full force and effect. In the event that the Company is
involved in a transaction that if consummated would constitute a Change in
Control, the Executive agrees to use his good faith efforts consistent with his
duties as a director, officer or employee to cooperate with the Company, and as
directed by the board of directors, the potential acquirer, in the due diligence
process related thereto. In the event that there is a Change in Control and the
Executive thereafter terminates his employment for "Good Reason" or voluntarily
resigns, the Executive agrees to remain with the Company for a period of time
after the date of such termination or resignation as requested by the Company or
its acquirer, not to exceed three (3) months from the date of such termination
or resignation, provided that the Company has paid to Executive all amounts due
to him in connection with such termination or resignation, together with an
additional amount equal to three months Base Salary and pro rated Annual
Incentive Award together with all employment benefits and perquisites
("Transition Payment"). In the event that the Company or acquirer does not
request Executive to remain after Executive's termination for Good Reason or
resignation, then the Company shall pay Executive the Transition Payment in a
lump sum upon his departure.

                                   SECTION XV
                                  MODIFICATION

     This Agreement may not be modified or amended except in writing signed by
the parties. No term or condition of this Agreement will be deemed to have been
waived except in writing by the party charged with waiver. A waiver shall
operate only as to the specific term or condition waived and will not constitute
a waiver for the future or act on anything other than that which is specifically
waived.

                                   SECTION XVI
                           GOVERNING LAW; ARBITRATION

     This Agreement has been executed and delivered in the State of Tennessee
and its validity, interpretation, performance and enforcement shall be governed
by the laws of that state, without regard to conflict of law doctrines.
Executive and the Company unconditionally submit to the jurisdiction of the
courts of the State of Tennessee with respect to all matters relating to or
arising from this Agreement, except to the extent that an issue is subject to
arbitration as provided herein. The parties hereby agree that the prevailing
party's attorneys' fees and costs will be paid by the other party.

     Any dispute among the parties hereto shall be settled by final and binding
arbitration in Nashville, Tennessee, in accordance with the rules of the
American Arbitration Association and judgment upon the award rendered may be
entered in any court having jurisdiction thereof, except that Company shall not
be required to submit to arbitration the matters under Section IX.

                                       11

<PAGE>

                                  SECTION XVII
                                     NOTICES

     All notices, requests, consents and other communications hereunder shall be
in writing and shall be deemed to have been made when delivered or mailed
first-class postage prepaid by registered mail, return receipt requested, or
when delivered if by hand, overnight delivery service or confirmed facsimile
transmission, to the following:

     (a) If to the Company, at: 2401 21st Avenue South, Suite 200, Nashville, TN
37212, Attention: Executive Chairman, or at such other address as may have been
furnished to the Executive by the Company in writing; or

     (b) If to the Executive, at: 106 Suffolk Crescent, Brentwood, Tennessee
37207, or such other address as may have been furnished to the Company by the
Executive in writing.

                                  SECTION XVIII
                                BINDING AGREEMENT

     This Agreement shall be binding on the parties' successors, heirs and
assigns.

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date first above written.

                                        CENTRAL PARKING CORPORATION

                                        By:
                                            ------------------------------------
                                            Cecil Conlee
                                            Chairman, Compensation Committee of
                                            the Board of Directors

                                        EXECUTIVE:

                                        ----------------------------------------
                                        Emanuel J. Eads

                                       12

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