Document:

EX-10.1

 Exhibit 10.1 
  

 
  

IMPERIAL HOLDINGS, INC., 
 as
Issuer, 
 THE GUARANTORS NAMED HEREIN 

and 
 INDABA CAPITAL FUND, L.P.,

 as Purchaser 
 12.875% Senior
Secured Notes 
  
  

NOTE PURCHASE AGREEMENT 

Dated as of November 10, 2014 
  

 
  

 
  

 Table of Contents 

 

									
	 	 	 	  	 	  	Page	 
		
	 SECTION I.     PURCHASE AND SALE; ISSUE DATE
	  	 	1	  
		 	 Section 1.1
	  	Purchase and Sale	  	 	1	  
		 	 Section 1.2
	  	 Issue Date
	  	 	2	  
		
	 SECTION II.     CONDITIONS PRECEDENT
	  	 	2	  
		 	 Section 2.1
	  	 Conditions to Purchase
	  	 	2	  
		 	 Section 2.2
	  	 Conditions to Additional Issuances
	  	 	3	  
		 	 Section 2.3
	  	 Purchaser’s Waiver of Compliance
	  	 	5	  
		
	 SECTION III.     REPRESENTATIONS AND WARRANTIES
	  	 	5	  
		 	 Section 3.1
	  	 Representations and Warranties of the Obligors
	  	 	5	  
		 	 Section 3.2
	  	 Representations and Warranties of the Purchaser
	  	 	10	  
		 	 Section 3.3
	  	 Survival of Representations and Warranties
	  	 	10	  
		
	 SECTION IV.     INDEMNIFICATION
	  	 	11	  
		
	 SECTION V.     MISCELLANEOUS
	  	 	12	  
		 	 Section 5.1
	  	 Amendments and Waivers
	  	 	12	  
		 	 Section 5.2
	  	 Board Designation
	  	 	12	  
		 	 Section 5.3
	  	 Notices
	  	 	13	  
		 	 Section 5.4
	  	 No Waiver; Cumulative Remedies
	  	 	13	  
		 	 Section 5.5
	  	 Successors and Assigns
	  	 	13	  
		 	 Section 5.6
	  	 Counterparts
	  	 	13	  
		 	 Section 5.7
	  	 Severability
	  	 	13	  
		 	 Section 5.8
	  	 Governing Law
	  	 	13	  
		 	 Section 5.9
	  	 Termination
	  	 	14	  
		 	 Section 5.10
	  	 Limited Recourse; No Proceedings
	  	 	14	  
		 	 Section 5.11
	  	 Survival of Representations and Warranties and Indemnification
	  	 	14	  
		 	 Section 5.12
	  	 Submission to Jurisdiction; Waivers
	  	 	14	  
		 	 Section 5.13
	  	 WAIVERS OF JURY TRIAL
	  	 	15	  

 NOTE PURCHASE AGREEMENT (this “Agreement”), dated as of November 10, 2014,
by and among IMPERIAL HOLDINGS, INC., a Florida corporation (the “Issuer”), the direct subsidiaries of the Issuer named on the signature pages hereto (the “Guarantors” and, together with the Issuer, the
“Obligors”), and INDABA CAPITAL FUND, L.P., a Cayman Islands exempted limited partnership (the “Purchaser”). 

W I T N E S S E T H: 
 WHEREAS,
the Issuer proposes to sell to the Purchaser senior secured notes (the “Notes”) with an aggregate Initial Note Balance (as defined in the Indenture described below) of up to $100,000,000; 

WHEREAS, the Notes will be issued pursuant to the Indenture, dated November 10, 2014, among the Issuer, the Guarantors, and Wilmington
Trust, National Association, as indenture trustee (capitalized terms used in this Agreement and not defined have the meanings specified in the Indenture; rules of construction set forth in Section 1.03 of the Indenture apply equally to this
Agreement); and 
 WHEREAS, the Notes are being offered and sold to the Purchaser without being registered under the Securities Act, in
reliance on an exemption therefrom; 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained, and other good and
valuable consideration, the receipt and adequacy of which are hereby expressly acknowledged, the parties hereto agree as follows: 
 SECTION
I. PURCHASE AND SALE; ISSUE DATE 
 Section 1.1 Purchase and Sale. 

(a) On and subject to the terms and conditions of this Agreement and the Indenture, on the Initial Issue Date, the Issuer agrees to issue,
sell and deliver to the Purchaser the Note with an Initial Note Balance set forth opposite the Purchaser’s name on Schedule 1, and on the basis of the representations and warranties of the Obligors set forth in this Agreement and the other
Transaction Documents, and subject to the terms and conditions set forth herein and therein, the Purchaser hereby agrees to purchase such Note on the Initial Issue Date from the Issuer in accordance with the terms set forth herein. On and subject to
the terms and conditions of this Agreement and the Indenture, on each Additional Issue Date, the Issuer agrees to issue, sell and deliver to the Purchaser an Additional Note with a Note Balance equal to $25,000,000, and on the basis of the
representations and warranties of the Obligors set forth in this Agreement and the other Transaction Documents, and subject to the terms and conditions set forth herein and therein, the Purchaser hereby agrees to purchase such Note on such date from
the Issuer in accordance with the terms set forth herein. 
 (b) The purchase price for each Note, whether issued on the Initial Issue Date
or on an Additional Issue Date, is 96% of its Initial Note Balance (the “Purchase Price”). 

 Section 1.2 Issue Date. 

(a) Prior to 1:00 p.m. on the Initial Issue Date or Additional Issue Date, as applicable, the Purchaser shall transfer in immediately
available funds the Purchase Price (at the Purchaser’s discretion, less any fees set forth in Sections 2.1(e), 2.1(f), 2.2(b) or 2.2(c)) for its Note to the Deposit Account of the Issuer identified on Schedule 2 hereto. 

SECTION II. CONDITIONS PRECEDENT 

Section 2.1 Conditions to Purchase. The following shall be conditions precedent to the purchase of the Note on the Initial Issue
Date: 
 (a) The Notes shall have been duly authorized, executed, authenticated, delivered and issued and, upon payment of the Purchase
Price, shall be entitled to the benefits of the Indenture. This Agreement and each of the other Transaction Documents shall have been duly authorized, executed and delivered by the respective parties thereto and shall be in full force and effect,
and all conditions precedent contained in the Transaction Documents shall have been satisfied. 
 (b) The Purchaser shall have received a
written legal opinion under United States and New York State law, in form and substance satisfactory to the Purchaser, from each of (i) Foley & Lardner LLP, covering corporate authorization, enforceability, non-contravention of
material agreements, Lien perfection, non-contravention of law, no required approvals, no registration, Investment Company Act and such other matters as the Purchaser may reasonably request and (ii) general counsel of the Obligors, covering
absence of material litigation. 
 (c) The Purchaser and the Indenture Trustee shall have each received signature and incumbency
certificates executed by the authorized officers of each of the Guarantors and the Issuer, to enable each of them to enter into the Transaction Documents to which such entity is a party. 

(d) The Purchaser and the Indenture Trustee shall have received a closing certificate from each Obligor, including (i) the certificate of
incorporation or articles of organization of such Obligor, as applicable, certified by the relevant authority of the jurisdiction of organization of such Obligor, (ii) certified bylaws or other operating agreement, as applicable, of such
Obligor, (iii) a good standing certificate for such Obligor from its jurisdiction of organization and (iv) resolutions of the board of directors (or similar governing body) and where required its general meeting of shareholders (or similar
body) authorizing and approving such Obligor’s execution, delivery and performance of the Transaction Documents to which it is a party and the transactions contemplated thereby. 

(e) The costs and expenses incurred by the Purchaser and the Indenture Trustee on or prior to the Initial Issue Date (and in the case of the
Purchaser, as described in the Fee Letter) shall have been paid in full. Such costs and expenses shall be set forth on a “closing schedule of fees and expenses” approved by the Purchaser and the Issuer. 

  
 -2- 

 (f) All other amounts due and owing under the Fee Letter, including the Facility Fee described
therein, shall have been paid to the Purchaser. 
 (g) The representations and warranties of the Obligors set forth or referred to in
Section 3.1 hereof and in the other Transaction Documents shall be true and correct on the Initial Issue Date. 
 (h) No Default or
Event of Default has occurred and is continuing. 
 (i) All corporate and other proceedings in connection with the transactions contemplated
hereby and the other Transaction Documents, and all documents, opinions and certificates incident thereto shall be satisfactory in form and in substance to the Purchaser. 

(j) All governmental and third party approvals necessary in connection with the continuing operations of the Group Companies and the
transactions contemplated hereby shall have been obtained and be in full force and effect. 
 (k) The Purchaser and the Indenture Trustee
shall have received the results of a recent Lien search with respect to each Obligor, and such search shall reveal no Liens on any of the assets of the Obligors except for Permitted Liens, to the extent such Permitted Liens may be present on such
assets under the Indenture. 
 (l) The Indenture Trustee shall have received the certificates representing the Pledged Collateral as defined
in and pledged pursuant to the Pledge Agreement and the Indenture, together with an undated stock power for each such certificate executed in blank by a duly authorized officer of the pledgor thereof. UCC financing statements contemplated by the
Security Documents shall have been recorded in the appropriate filing office. 
 (m) The Issuer shall have obtained, and provided to the
Purchaser, a CUSIP number for the Notes. 
 (n) The Issuer shall have provided the Securities Intermediary with certified tax identification
numbers by furnishing appropriate forms W-9 or W-8 and such other forms and documents that the Securities Intermediary may request. 
 (o)
Unless a waiver shall have been obtained in accordance with Section 2.3, the Issuer’s acceptance of the proceeds of the Note issued on the Initial Issue Date shall be deemed its acknowledgement that the conditions to closing set forth
herein have been complied with or otherwise waived as of such date. 
 Section 2.2 Conditions to Additional Issuances. The
following shall be conditions precedent to any purchase of Additional Notes by the Purchaser: 
 (a) Any Additional Notes shall have been
duly authorized, executed, authenticated, delivered and issued and, upon payment of the Purchase Price, shall be 

  
 -3- 

 
entitled to the benefits of the Indenture. This Agreement and each of the other Transaction Documents shall be in full force and effect, and all conditions precedent contained in the Transaction
Documents shall have been satisfied. 
 (b) The costs and expenses incurred by the Purchaser and the Indenture Trustee on or prior to the
Additional Issue Date (and in the case of the Purchaser, as described in the Fee Letter) shall have been paid in full. Such costs and expenses shall be set forth on a “closing schedule of fees and expenses” approved by the Purchaser and
the Issuer. 
 (c) All other amounts due and owing under the Fee Letter, including the Drawdown Fee described therein, shall have been paid
to the Purchaser. 
 (d) The representations and warranties of the Obligors set forth or referred to in Section 3.1 hereof and in the
other Transaction Documents shall be true and correct on the Additional Issue Date. 
 (e) No Default or Event of Default has occurred and
is continuing. 
 (f) Unless a waiver shall have been obtained in accordance with Section 2.3, the Issuer’s acceptance of the
proceeds of any Additional Note issued on any Additional Issue Date shall be deemed its acknowledgement that the conditions to closing set forth herein have been complied with or otherwise waived as of such date. 

(g) The purchase of any Additional Note shall be consummated on or before the twelve-month anniversary of the Initial Issue Date. 

(h) The Issuer and/or its Subsidiaries shall have consummated the Additional Investments. 

(i) Prior to delivery of a second Additional Issuance Notice, (i) the Issuer shall have attained a volume weighted average trading price
of its Capital Stock equal to at least $9.00 per share over the 20 consecutive trading days immediately prior to the date such Additional Issuance Notice was delivered, and (ii) the Net Worth of the Issuer and the Guarantors on a consolidated
basis shall be at least $11.25 per share of the Issuer’s Capital Stock over the 20 consecutive trading days immediately prior to the date such Additional Issuance Notice was delivered. 

(j) Prior to delivery of a third Additional Issuance Notice, (i) the Issuer shall have attained a volume weighted average trading price
of its Capital Stock equal to at least $10.00 per share over the 20 consecutive trading days immediately prior to the date such Additional Issuance Notice was delivered, (ii) the Net Worth of the Issuer and the Guarantors on a consolidated
basis shall be at least $12.00 per share of the Issuer’s Capital Stock over the 20 consecutive trading days immediately prior to the date such Additional Issuance Notice was delivered, and (iii) the Issuer shall have received $35,000,000
in connection with the issuance of new Equity Interests after the date the Purchaser purchased Additional Notes pursuant to the second Additional Issuance Notice delivered by the Issuer. 

  
 -4- 

 Section 2.3 Purchaser’s Waiver of Compliance. The Purchaser may in its sole
discretion waive compliance with any conditions to the obligations of the Purchaser set forth in Sections 2.1 and 2.2 hereof. 
 SECTION III.
REPRESENTATIONS AND WARRANTIES 
 Section 3.1 Representations and Warranties of the Obligors. Each Obligor hereby represents and
warrants to the Indenture Trustee and the Purchaser that as of the Initial Issue Date or Additional Issue Date, as applicable: 
 (a)
Organization and Good Standing. Such Obligor has been duly formed and is validly existing and in good standing under the laws of its state of organization or incorporation, as applicable, with power and authority to own its properties and to
conduct its business as presently conducted and has the power and authority to own and convey all of its properties and to execute and deliver this Agreement and the Transaction Documents to which it is a party and to perform the transactions
contemplated hereby and thereby. 
 (b) Binding Obligation. This Agreement and the other Transaction Documents to which it is a party
have each been duly executed and delivered on behalf of such Obligor and this Agreement and each other Transaction Document to which it is a party constitutes a legal, valid and binding obligation of such Obligor enforceable in accordance with its
terms except as may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting creditors’ rights and by general principles of equity. 

(c) No Consent Required. No consent of, or other action by, and no notice to or filing with, any Governmental Authority or any other
party, is required for the due execution, delivery and performance by such Obligor of this Agreement or any of the other Transaction Documents or for the perfection of or the exercise by the Indenture Trustee or the Purchaser of any of their rights
or remedies thereunder which have not been duly obtained. 
 (d) No Violation. The consummation of the transaction contemplated by
this Agreement and the Indenture and the fulfillment of the terms hereof do not conflict with, result in any material breach of any of the terms and provisions of, nor constitute (with or without notice or lapse of time) a default under, the
organizational documents of such Obligor, or any indenture, agreement or other instrument to which such Obligor is a party or by which it is bound; nor violate any law, treaty, rule or regulation or determination of an arbitrator or a court or other
Governmental Authority; nor result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument (other than pursuant to the Security Documents). 

(e) No Proceedings. There is no pending or, to such Obligor’s knowledge, threatened action, suit or proceeding, nor any
injunction, writ, restraining order or other order of any nature (each, a “Proceeding”) against or affecting such Obligor, its officers or directors, or the property of such Obligor, in any court or tribunal, or before any arbitrator of
any kind or before or by any Governmental Authority (i) asserting the invalidity of this Agreement or any of the Transaction Documents, (ii) seeking to prevent the pledge of any of 

  
 -5- 

 
the Collateral or the consummation of any of the transactions contemplated thereby, (iii) seeking any determination or ruling that might materially and adversely affect (A) the
performance by any Obligor of this Agreement or any of the Transaction Documents or the interests of the Purchaser in the Portfolio Policies or any other part of the Collateral or (B) the validity or enforceability of this Agreement or any of
the Transaction Documents or (iv) asserting a claim for payment of money adverse to such Obligor or the conduct of its business or which is inconsistent with the due consummation of the transactions contemplated by this Agreement or any of the
Transaction Documents, in each case, other than any Proceeding that is disclosed in the litigation disclosed in the Issuer’s filings posted on the SEC Edgar website, in the draft 10-Q for the quarter ended September 30, 2014 that has been
furnished to counsel for the Purchaser (the “Draft 10-Q”), or that would not reasonably be expected to have a Material Adverse Effect. 

(f) Obligor Not Insolvent. Such Obligor is solvent and will not become insolvent after giving effect to the transactions contemplated
by this Agreement and each of the other Transaction Documents. 
 (g) Name. The legal name of such Obligor is as set forth in the
signature page of this Agreement and the Issuer does not have any tradenames, fictitious names, assumed names or “doing business as” names. 

(h) Financial Statements. The audited consolidated balance sheets of the Issuer as at December 31, 2013 and December 31 2012,
and the related consolidated statements of income and of cash flows for the fiscal years ended on such dates, reported on by and accompanied by an unqualified report from Grant Thornton LLP, present fairly the consolidated financial condition of the
Issuer as at such date, and the consolidated results of its operations and its consolidated cash flows for the respective fiscal years then ended. The unaudited consolidated balance sheet of the Issuer as at September 30, 2014, and the related
unaudited consolidated statements of income and cash flows for the nine-month period ended on such date in the Draft 10-Q, present fairly the consolidated financial condition of the Issuer as at such date, and the consolidated results of its
operations and its consolidated cash flows for the nine-month period then ended (subject to normal year end audit adjustments). All such financial statements, including the related schedules and notes thereto, have been prepared in accordance with
GAAP applied consistently throughout the periods involved (except as approved by the aforementioned firm of accountants and disclosed therein). 

(i) No Change. Except as disclosed in the Issuer’s filings posted on the SEC Edgar website or in the Draft 10-Q, since
December 31, 2013, there has been no development or event that has had or could reasonably be expected to have a Material Adverse Effect. 

(j) Ownership of Properties; Liens. Each Obligor has good title to, or a valid leasehold interest in, (i) all Collateral owned by
it and (ii) all of its property that is essential to its business as conducted on the Initial Issue Date or any Additional Issue Date, as applicable, and none of such Collateral or other property is subject to any Lien except as permitted by
Section 4.09 of the Indenture. 

  
 -6- 

 (k) Taxes. Each Obligor has filed or caused to be filed all Federal, state and other
material tax returns that are required to be filed and has paid all taxes that have become due and payable on said returns or on any tax assessments made against it or any of its property and all other taxes, fees or other charges imposed on it or
any of its property by any Governmental Authority (other than any the amount or validity of which are currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided on
the books of the relevant Obligor); no tax Lien has been filed, and, to the knowledge of the applicable Obligor, no claim is being asserted, with respect to any such tax, fee or other charge, except as disclosed in the Issuer’s filings posted
on the SEC Edgar website or in the Draft 10-Q. 
 (l) Federal Regulations. No part of the proceeds of the sale of any Notes, will be
used for “buying” or “carrying” any “margin stock” within the respective meanings of each of the quoted terms under Regulation U as now and from time to time hereafter in effect for any purpose that violates the
provisions of the regulations of the Board of Governors of the Federal Reserve System of the United States (or any successor) (the “Board”). If requested by the Purchaser or the Indenture Trustee, the Issuer will furnish to the Indenture
Trustee and each Holder a statement to the foregoing effect in conformity with the requirements of FR Form G-3 or FR Form U 1, as applicable, referred to in Regulation U. 

(m) Labor Matters. Except as, in the aggregate, could not reasonably be expected to have a Material Adverse Effect: (a) there are
no strikes or other labor disputes against any Obligor pending or, to the knowledge of such Obligor, threatened; (b) hours worked by and payment made to employees of each Obligor have not been in violation of the Fair Labor Standards Act or any
other applicable Requirements of Law dealing with such matters; and (c) all payments due from any Obligor on account of employee health and welfare insurance have been paid or accrued as a liability on the books of the relevant Obligor. 

(n) Employee Benefit Plans. Except as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse
Effect: (i) with respect to each Plan, each Obligor and each of their respective ERISA Affiliates is in compliance with all applicable law, including, without limitation, the applicable provisions of ERISA and the provisions of the Code
relating to Plans and the regulations and published interpretations thereunder; (ii) no ERISA Event has occurred or is reasonably expected to occur; and (iii) all amounts required by applicable law with respect to, or by the terms of, any
retiree welfare benefit arrangement maintained by any Obligor or any ERISA Affiliate or to which any Obligor or any ERISA Affiliate has an obligation to contribute have been accrued in accordance with Statement of Financial Accounting Standards
No. 106. The present value of all accumulated benefit obligations under each Pension Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed by more than $100,000 the fair market value of the assets of such Pension Plan allocable to such accrued benefits, and the present value of all accumulated benefit obligations of all underfunded
Pension Plans (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than $100,000 the fair
market value of the assets of all such underfunded Pension Plans. 

  
 -7- 

 (o) Investment Company Act; Other Regulations. No Obligor is an “investment
company”, or a company “controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended. No Obligor is subject to regulation under any Requirement of Law (other than Regulation X
of the Board) that limits its ability to incur Indebtedness. 
 (p) Accuracy of Information. No statement or information contained in
this Agreement, any other Transaction Document or any other document, certificate or statement furnished by or on behalf of any Obligor to the Indenture Trustee or the Purchaser, or any of them, for use in connection with the transactions
contemplated by this Agreement or the other Transaction Documents, contained as of the date such statement, information, document or certificate was so furnished, any untrue statement of a material fact or omitted to state a material fact necessary
to make the statements contained herein or therein not misleading. 
 (q) Security Documents. Each of the Indenture and each Security
Document is effective to create in favor of the Indenture Trustee, for the benefit of the Purchaser, a legal, valid and enforceable security interest in the Collateral described therein and proceeds thereof. In the case of the Pledged Collateral
described in the Pledge Agreement and the Indenture, when certificates representing such Collateral are delivered to the Indenture Trustee (together with a properly completed and signed power or endorsement), and in the case of the other Collateral
described herein and the Security Documents, when financing statements and other filings in appropriate form are filed, the Indenture and each Security Document shall constitute a fully perfected Lien on, and security interest in, all right, title
and interest of the Obligors in such Collateral and the proceeds thereof, as security for the Secured Obligations (in the case of the Issuer) or the Obligations (as defined in the Pledge Agreement, in the case of the Guarantors), in each case prior
and superior in right to any other Person. 
 (r) Subsidiaries. Each Subsidiary designated as an Excluded Subsidiary meets the
criteria thereof as described in the Indenture. The total assets of Lagoon Court Limited and any of its Subsidiaries, on a consolidated basis, are less than $10,000. 

(s) Portfolio Policy Representations. The Issuer represents and warrants to the Indenture Trustee and the Purchaser as of the Initial
Issue Date or any Additional Issue Date, as applicable, with respect to each Collateral Policy, and Red Reef and Harbordale each represent and warrant to the Indenture Trustee and the Purchaser as of the Initial Issue Date or Additional Issue Date,
as applicable, with respect to each Collateral Policy owned by it as follows: 
 (i) The contestability period and suicide period have
expired. 
 (ii) Subject to any issue relating to insurable interest and except with respect to any interest in the death benefit associated
with such Collateral Policy 

  
 -8- 

 
possessed or retained by one or more third parties upon its acquisition by an Affiliate of the Issuer where such retention was contemplated in connection with the acquisition of such policy, such
Collateral Policy and the legal and beneficial interests in the death benefit are capable of being sold, transferred and conveyed to a purchaser in a manner such that the purchaser will acquire 100% of the legal and beneficial interests in such
Collateral Policy, that to the knowledge of the Issuer will be free and clear of any Liens, claims or encumbrances of any nature whatsoever. 

(iii) To the knowledge of the Issuer, there is no dispute, claim, action or proceeding pending or, threatened, which alleges that a person
other than the Issuer has a beneficial or ownership interest in, to or under such Collateral Policy or that the Issuer does not have a valid and enforceable claim to collect the death benefits on such Collateral Policy. 

(iv) Applicable Requirements of Law do not prohibit the transfer of legal or beneficial ownership of such Collateral Policy. 

(v) The original owners of each Collateral Policy were: the insured, the insured’s spouse, child or children, other individuals or
business relations with insurable interests in the life of the insured or an irrevocable life insurance trust, partnership, corporation or limited liability company where the beneficiaries of such trust or the beneficial owners of such entity, as
applicable, were one or more of the foregoing. 
 (t) No Solicitation. No form of general solicitation or general advertising was
used by any Obligor or its representatives in connection with the offer and sale of the Notes. No investors were solicited or otherwise approached by such Obligor or any representative of such Obligor for the purpose of offering the Notes for sale
who were not institutional investors. Such Obligor has not issued or sold any Notes within the six-month period immediately preceding the date hereof or securities that could be integrated with the Notes. Neither such Obligor nor any representative
on its behalf has offered or sold, nor will any of them offer or sell, any Notes in any manner that would render the issuance and sale of the Notes a violation of the Securities Act or any state securities or “Blue Sky” laws, or require
registration pursuant thereto, nor has any of them authorized, nor will any authorize, any Person to act in such manner. 
 (u)
Registration Exemption. The offer and sale of the Notes to the Purchaser in the manner contemplated by this Agreement will be exempt from the registration requirements of the Securities Act and it is not necessary to qualify an indenture in
respect of the Notes. The Indenture is not required to be qualified under the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) as in effect on the date of this Agreement. 

(v) No Other Sales Contracts. Such Obligor has not entered and will not enter into any contractual arrangement with respect to the
distribution or sale of the Notes except for this Agreement. 
 (w) Third Party Beneficiary. The Obligors acknowledge and agree that
the Indenture Trustee is a third-party beneficiary of this Section 3.1 and the other provisions of this Agreement related hereto (including, without limitation, Section IV). 

  
 -9- 

 Section 3.2 Representations and Warranties of the Purchaser. The Purchaser hereby
represents and warrants to the Issuer that as of the date hereof: 
 (a) Due Authorization. This Agreement has been duly authorized
by the Purchaser and, on the Initial Issue Date, will have been duly executed and delivered by the Purchaser. 
 (b) Binding
Obligation. Assuming the due authorization, execution and delivery thereof by the other parties thereto, this Agreement constitutes a valid and legally binding obligation of the Purchaser, enforceable in accordance with its respective terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles. 

(c) No Violation. The execution, delivery and performance of this Agreement by the Purchaser and compliance with the terms and
provisions hereof will not result in a breach or violation of any of the terms and provisions of, or constitute a default under or conflict with, (i) any statute, rule, regulation or order of any governmental agency or body or any court,
domestic or foreign, having jurisdiction over the Purchaser or any of its properties, (ii) any agreement or instrument to which the Purchaser is a party or by which the Purchaser is bound or to which any of the properties of the Purchaser is
subject, or (iii) the organizational documents of the Purchaser. 
 (d) Purchaser Letter. The Purchaser hereby delivers a letter
in the form of Exhibit A hereto (a “Purchaser Letter”) to the Issuer and makes the representations and warranties set forth in the Purchaser Letter to the Issuer. 

(e) Securities Act. The Purchaser represents and warranty that it is an “accredited investor”, as defined in Rule 501(a) of
Regulation D under the Securities Act, that it will transfer interests in any Note only in accordance with the Indenture. 

Section 3.3 Survival of Representations and Warranties. All representations and warranties contained herein shall survive the
execution and delivery of this Agreement and the other Transaction Documents, the purchase or transfer by the Purchaser of any Note or portion thereof or interest therein, the payment of any Note and the termination of this Agreement, and may be
relied upon by any subsequent Holder of a Note, regardless of any investigation made at any time by or on behalf of the Purchaser or any other Holder of a Note. All statements contained in any certificate or other instrument delivered by or on
behalf of any Obligor pursuant to this Agreement shall be deemed representations and warranties of such Obligor under this Agreement. 

  
 -10- 

 SECTION IV. INDEMNIFICATION 

Each Obligor jointly and severally agrees to indemnify and hold harmless each of the Purchaser and its affiliates (including, without
limitation, controlling persons) and each member, partner, director, officer, employee, advisor, agent, affiliate, successor, partner, representative and assign of each of the forgoing (each an “Indemnified Person”) from and against
any and all actions, suits, investigation, inquiry, claims, losses, damages, liabilities, expenses or proceedings of any kind or nature whatsoever which may be incurred by or asserted against or involve any such Indemnified Person as a result of or
arising out of or in any way related to or resulting from the Transaction Documents, the use of proceeds thereof or the other transactions contemplated thereby (regardless of whether any such Indemnified Person is a party thereto and regardless of
whether such matter is initiated by a third party or otherwise) (any of the foregoing, a “Proceeding”), and each such Obligor jointly and severally agrees to reimburse each Indemnified Person upon demand for any legal or other
out-of-pocket expenses incurred in connection with investigating, defending, preparing to defend or participating in any such Proceeding; provided, however, that no Indemnified Person will be indemnified for any such cost, expense or
liability to the extent determined by a final, nonappealable judgment of a court of competent jurisdiction to have resulted solely from the gross negligence, bad faith or willful misconduct of such Indemnified Person. In the case of any Proceeding
to which the indemnity in this paragraph applies, such indemnity and reimbursement obligations shall be effective, whether or not such Proceeding is brought by any of the Obligors or their respective securityholders or creditors, an Indemnified
Person or any other person, or an Indemnified Person is otherwise a party thereto and whether or not any aspect of the Transaction Documents or the transactions thereunder are consummated. Notwithstanding any other provision of the Transaction
Documents, (i) no Indemnified Person shall be responsible or liable for damages arising from the unauthorized use by others of information or other materials obtained through internet, electronic, telecommunications or other information
transmission and (ii) no Indemnified Person shall have any liability (whether direct or indirect, in contract, tort or otherwise) to the Obligors, or any of your or their respective securityholders or creditors arising out of, related to or in
connection with the Transaction Documents or the other transactions contemplated thereby, except to the extent of direct (as opposed to special, indirect, consequential or punitive) damages determined in a final, nonappealable judgment by a court of
competent jurisdiction to have resulted solely from such Indemnified Person’s gross negligence, bad faith or willful misconduct, and it is further agreed that the Purchaser shall have liability (if any) only to the Obligors (as opposed to any
other Person) and that the Purchaser shall be liable solely in respect of its own commitment under the Transaction Documents on a several, and not joint, basis with any other Purchaser. 

No Obligor will, without the prior written consent of the Indemnified Person, settle, compromise, consent to the entry of any judgment in or
otherwise seek to terminate any Proceeding in respect of which indemnification may be sought hereunder (whether or not any Indemnified Person is a party thereto) unless such settlement, compromise, consent or termination (i) includes an
unconditional release of each Indemnified Person from all liability arising out of such Proceeding and (ii) does not include a statement as to, or an admission of, fault, culpability, or a failure to act by or on behalf of such Indemnified
Person. 

  
 -11- 

 SECTION V. MISCELLANEOUS 

Section 5.1 Amendments and Waivers. This Agreement may only be amended in writing by all of the parties hereto (other than as
expressly set forth in Section 2.3 hereof). 
 Section 5.2 Board Designation. 

(a) From and after the Initial Issue Date, and for as long as the Purchaser is both the Holder of at least $25 million in aggregate principal
amount or market value of outstanding Indebtedness of the Issuer and maintains a voting percentage equal to or greater than 5% of the Issuer’s total shares of Capital Stock outstanding and no Purchase Failure Event occurs (collectively, the
“Investment Threshold”), the Purchaser shall, subject to applicable law, have the right to designate one (1) member to the Issuer’s Board of Directors (the “Purchaser Director”); provided that such
designee meets the criteria that are reasonably acceptable to the corporate governance and nominating committee (or equivalent committee or the full board, as applicable) of the Board of Directors of the Issuer. The Issuer shall use its best
efforts, in accordance with its bylaws and corporate governance guidelines as then in effect, to cause the Purchaser Director to be promptly appointed to the Issuer’s Board of Directors. So long as the Purchaser maintains the Investment
Threshold, if the Purchaser Director resigns or is removed from the Board of Directors, the Purchaser shall maintain the right to designate a successor Purchaser Director and the Issuer shall use its best efforts, in accordance with its bylaws and
corporate governance guidelines as then in effect, to cause the Purchaser Director to be promptly appointed to the Issuer’s Board of Directors to fill such vacancy; provided that such nominee meets the criteria that are reasonably
acceptable to the corporate governance and nominating committee of the Board of Directors of the Issuer. So long as the Purchaser maintains the Investment Threshold, it can recommend to the nominating committee of the Issuer’s Board of
Directors one director to be voted on by shareholders at each annual meeting. Subject to any limitations imposed by applicable law, the Purchaser Director shall be entitled to the same perquisites, including stock options, reimbursement of expenses
and other similar rights and shall be obligated to the same director policies, in each case, in connection with such person’s membership on the Board of Directors of the Issuer, as every other non-employee member of the Board of Directors of
the Issuer. 
 (b) The Issuer shall have the right to block a Purchaser Director designated by the Purchaser if such designation would
contravene applicable law, regulation, its bylaws or corporate governance guidelines as then in effect or if such designee holds, or is nominated to hold, a management position or board seat at a company that the Board of Directors of the Issuer
reasonably determines directly competes with the Issuer. If, following the time when any person designated by the Purchaser is appointed to the Board of Directors of the Issuer, such person is appointed or elected to any such position or seat at a
company that the Board of Directors of the Issuer reasonably determines directly competes with the Issuer, the Purchaser shall, so long as the Purchaser maintains the Investment Threshold, be entitled to designate a director to fill the vacancy
resulting from such person’s resignation from the Board of Directors of the Issuer; provided that such designee meets the criteria that are reasonably acceptable to the corporate governance and nominating committee of the Board of
Directors of the Issuer. 
 (c) Notwithstanding the foregoing, the rights of the Purchaser to designate the Purchaser Director shall at all
times be subject to applicable rules and published guidance of The New York Stock Exchange. 

  
 -12- 

 Section 5.3 Notices. All notices, requests and demands to or upon the respective parties
hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered by hand, or, in the case of mail or telecopy notice, when received,
addressed as follows in the case of the Issuer and the Guarantors and as set forth on Exhibit B in the case of the Purchaser, or, to such other address as may be hereafter notified to the Indenture Trustee by the respective parties hereto:

  

			
	The Issuer:	 	Imperial Holdings, Inc.
		 	5355 Town Center Road, Suite 701
		 	Boca Raton, FL 33486
		 	Attention of: Office of the General Counsel
		 	Facsimile:

 Section 5.4 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on
the part of any party hereto, any right, remedy, power or privilege under any of the Transaction Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege under any of the
Transaction Documents preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges provided in the Transaction Documents are cumulative and not exclusive
of any rights, remedies, powers and privileges provided by law. 
 Section 5.5 Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the Issuer and the Purchaser, and their respective successors and assigns, provided that the Issuer may not assign its rights hereunder without prior written consent from the Purchaser. 

Section 5.6 Counterparts. This Agreement may be executed by the parties to this Agreement on any number of separate counterparts,
and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 
 Section 5.7
Severability. Any provisions of this Agreement which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provisions in any other jurisdiction. 

Section 5.8 Governing Law. THIS AGREEMENT, OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, THE RELATIONSHIP OF THE
PARTIES HERETO AND THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF 

  
 -13- 

 
THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK. 

Section 5.9 Termination. This Agreement shall remain in full force and effect until the payment in full of the principal of and
interest on the Notes and all other amounts payable to the Purchaser or the Indenture Trustee under the Transaction Documents. 

Section 5.10 Limited Recourse; No Proceedings. The obligations of the Obligors under this Agreement are solely the obligations of
the Obligors. No recourse shall be had for the payment of any fee or other obligation or claim arising out of or relating to this Agreement or any other agreement, instrument, document or certificate executed and delivered or issued by the Obligors,
or any officer of it in connection therewith, against any partner, member, stockholder, employee, officer, director or incorporator of the Obligors. 

Section 5.11 Survival of Representations and Warranties and Indemnification. All representations and warranties made and
indemnification provided hereunder and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement and the other Transaction Documents, the purchase or
transfer by the Purchaser of any Note or portion thereof or interest therein, the payment of any Note and the termination of this Agreement and shall survive until the termination as provided under the Indenture. 

Section 5.12 Submission to Jurisdiction; Waivers. EACH OBLIGOR AND THE PURCHASER HEREBY IRREVOCABLY AND UNCONDITIONALLY: 

(1) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT TO WHICH IT IS A PARTY, OR FOR
RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK LOCATED IN NEW YORK COUNTY, AND
APPELLATE COURTS FROM ANY THEREOF; 
 (2) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND WAIVES ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME; 

(3) AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A

  
 -14- 

 
COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO SUCH PARTY AT ITS ADDRESS SET FORTH IN SECTION 5.2 OR AT SUCH OTHER ADDRESS OF WHICH
THE INDENTURE TRUSTEE SHALL HAVE BEEN NOTIFIED PURSUANT THERETO; AND 
 (4) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO
EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION. 

Section 5.13 WAIVERS OF JURY TRIAL. EACH OBLIGOR AND THE PURCHASER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT OR ANY OTHER DOCUMENT OR INSTRUMENT RELATED HERETO AND FOR ANY COUNTERCLAIM THEREIN. 

  
 -15- 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective officers as of the day and year first above written. 
  

					
	IMPERIAL HOLDINGS, INC., as Issuer
		
	By:	 	 /s/ Antony Mitchell

		 	Name:	 	Antony Mitchell
		 	Title:	 	Chief Executive Officer
	
	HARBORDALE, LLC, as Guarantor
		
	By:	 	 /s/ Antony Mitchell

		 	Name:	 	Antony Mitchell
		 	Title:	 	Chief Executive Officer
	
	IMPERIAL LIFE AND ANNUITY SERVICES, LLC, as Guarantor
	By:	 	Imperial Holdings, Inc., its sole member
		
	By:	 	 /s/ Antony Mitchell

		 	Name:	 	Antony Mitchell
		 	Title:	 	Chief Executive Officer
	
	IMPERIAL PREMIUM FINANCE, LLC, as Guarantor
		
	By:	 	 /s/ Antony Mitchell

		 	Name:	 	Antony Mitchell
		 	Title:	 	Chief Executive Officer
	
	RED REEF ALTERNATIVE INVESTMENTS, LLC, as Guarantor
		
	By:	 	 /s/ Antony Mitchell

		 	Name:	 	Antony Mitchell
		 	Title:	 	Chief Executive Officer

 [Note Purchase Agreement Signature Page] 

 
					
	WASHINGTON SQUARE FINANCIAL, LLC, as Guarantor
		
	By	 	 /s/ Antony Mitchell

		 	Name:	 	Antony Mitchell
		 	Title:	 	Chief Executive Officer
	
	IMPERIAL FINANCING & TRADING, LLC, as Guarantor
		
	By:	 	 /s/ Antony Mitchell

		 	Name:	 	Antony Mitchell
		 	Title:	 	Chief Executive Officer
	
	IMPERIAL LITIGATION FUNDING, LLC, as Guarantor
		
	By:	 	 /s/ Antony Mitchell

		 	Name:	 	Antony Mitchell
		 	Title:	 	Chief Executive Officer

 [Note Purchase Agreement Signature Page] 

 
					
	PURCHASER:
	
	INDABA CAPITAL FUND, L.P.
		
	By:	 	Indaba Partners, LLC
		 	Its general partner
		
	By:	 	 /s/ Derek C. Schrier

		 	Name:	 	Derek C. Schrier
		 	Title:	 	Senior Managing Member, Managing Partner and Chief Investment Officer

 [Note Purchase Agreement Signature Page – Indaba Capital Fund, L.P] 

 SCHEDULE 1 

PURCHASER AND INITIAL NOTE BALANCES 
  

					
	 Purchaser
	  	Initial Note Balance	 
	 Indaba Capital Fund, L.P.
	  	$	25,000,000	  

 SCHEDULE 2 

ISSUER WIRE INSTRUCTIONS 
 The Bank of New York

 ABA 
 GLA 

TAS # 
 Re: 

Attn: 
 Phone: 

 EXHIBIT A 

FORM OF PURCHASER LETTER 

[Date]     
 IMPERIAL
HOLDINGS, INC. 
 5355 Town Center Road, Suite 701 
 Boca Raton,
FL 33486 
  

	Re	Imperial Holdings, Inc. Notes 

 Ladies and Gentlemen: 

This letter (the “Investor Letter”) is delivered by the undersigned (the “Purchaser”) pursuant to that
certain Note Purchase Agreement dated as of [                    ] (as in effect, the “Note Purchase Agreement”), between Imperial
Holdings, Inc. as Issuer, certain of the Issuer’s affiliates as guarantors, and the Purchaser. Capitalized terms used herein without definition shall have the meanings set forth in the Note Purchase Agreement. The Purchaser represents to and
agrees with the Issuer as follows: 
 (a) The Purchaser is authorized to enter into the Note Purchase Agreement and to perform its
obligations thereunder and to consummate the transactions contemplated thereby. 
 (b) The Purchaser has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and risks of its investment in the Notes, is experienced in investing in the capital markets and is able to bear the economic risk of such investment. The Purchaser is aware
that investment in the Notes involves a high degree of risk, and the Notes are, therefore, a speculative investment. 
 (c) The Purchaser
has been afforded the opportunity to ask such questions as it deems necessary to make an investment decision, and has received all information it has requested and deemed necessary in connection with making such investment decision. The Purchaser
has, independently and without reliance upon any other Purchaser, and based on such documents and information as it has deemed appropriate and adequate for such purpose, made its own appraisal of an investigation into the business, operations,
property, financial and other condition, prospects and creditworthiness of the Issuer, and made its own decision to purchase its interest in the Notes (including, without limitation, having considered the income tax consequences of purchasing,
owning or disposing of the Notes in light of the Purchaser’s particular situation and tax residence as well as any consequences arising under the laws of any taxing jurisdiction), and will, independently and without reliance upon any other
Purchaser, and based on such documents and information as it shall deem appropriate at the time, continue to make its own analysis, appraisals and decisions in taking or not taking action under the Note Purchase Agreement, and to make such
investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition, prospects and creditworthiness of the Issuer. 

 (d) The Purchaser is an “accredited investor”, as defined in Rule 501, promulgated by
the Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities Act”) or is a “qualified institutional buyer” (within the meaning of Rule 144A
thereunder) and is acquiring the Notes (or an interest in the Notes) for its own account for investment purposes. The Purchaser understands that the offering and sale of the Notes (or any interest in therein) has not been and will not be registered
under the Securities Act and has not and will not be registered or qualified under any applicable “Blue Sky” law, and that the offering and sale of the Notes (or any interests therein) have not been reviewed by, passed on or submitted to
any federal or state agency or commission, securities exchange or other regulatory body. 
 (d) The Purchaser is not an employee benefit
plan subject to Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”) (each such plan, an
“Employee Plan”), an entity whose underlying assets include the assets of any Employee Plan, or a governmental plan that is subject to any federal, state or local law which is substantially similar to the provisions of
Section 406 of ERISA or Section 4975 of the Code or the Purchaser’s purchase, holding and disposition of the Notes does not result in a prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or, in
the case of a governmental plan, any substantially similar federal, state or local law) for which an exemption is not available. 
 (e) The
Purchaser is acquiring an interest in the Notes without a view to any distribution, resale or other transfer except as contemplated in the following sentence. The Purchaser will not resell or otherwise transfer the Notes, or any interest or
participation in the Notes, except in a transaction exempt from the registration requirements of the Securities Act, and applicable state securities or “blue sky” laws. The Purchaser understands and acknowledges that no Obligor has made or
will be making any representation as to the availability of Rule 144A, Regulation S or Rule 144 under the Securities Act for the reoffer, resale, pledge or transfer of the Notes. 

(f) This Investor Letter has been duly executed and delivered and constitutes the legal, valid and binding obligation of the Purchaser,
enforceable against the Purchaser in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles affecting the enforcement of creditors’
rights generally and general principles of equity. 
  

			
	Very truly yours,
	
	[NAME OF PURCHASER]
		
	By:	 	  

		 	Name:
		 	Title:

  
 -2- 

 EXHIBIT B 

PURCHASER NOTICE INFORMATION 
 Indaba Capital
Fund, L.P. 
 c/o Indaba Capital Management, L.P. 
 Attn: 

One Letterman Drive, Building D, Suite DM700 
 San Francisco, CA
94129 
 Email: 
 Phone: 

  
 -1-Amended and restated retention agreement with George A. Lopez, M.D. (1)

 2013 AMENDED AND RESTATED RETENTION AGREEMENT

This AMENDED AND RESTATED RETENTION AGREEMENT is entered into as of this 21st day of October, 2013, by and between ICU MEDICAL, INC., a Delaware corporation (the “Company”) and George A. Lopez (the “Employee”), and supersedes in their entirety the RETENTION AGREEMENT entered into by the Company and the Employee as of January 29, 2010 and the AMENDED AND RESTATED RETENTION AGREEMENT entered into by the Company and the Employee as of November 3, 2010.
RECITALS
WHEREAS, the Company recognizes that, as is the case with many publicly-held corporations, the possibility of a change in control of the Company exists and that the uncertainties raised by such a possibility may result in the distraction or even the premature departure of the Employee to the detriment of the Company and its stockholders, and
WHEREAS, the Board of Directors of the Company (the “Board”) has determined that appropriate steps should be taken to reinforce and encourage the continued employment and dedication of the Employee without distraction from the possibility of a change in control of the Company and related events and circumstances.
NOW, THEREFORE, as an inducement for and in consideration of the Employee remaining in its employ, the Company agrees that the Employee shall receive the severance benefits set forth in this Agreement in the event the Employee’s employment with the Company is terminated under the circumstances described below subsequent to a Change in Control (as defined in Section 1.1).
1.Key Definitions.
As used herein, the following terms shall have the following respective meanings:
1.1    “Change in Control” means
(a)the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) 50% or more of either (i) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection 1.1(a), the following acquisitions shall not constitute a Change in Control: (i) any acquisition from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (iv) any acquisition by any corporation pursuant to a transaction which complies with all of clauses (i), (ii) and (iii) of subsection (c) of this Section 1.1; or
(b)individuals who, as of the date hereof, constitute the members of the Board (the “Incumbent Directors”) ceasing 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 stockholders, was approved by a vote of at least a majority of the Incumbent Directors then in office shall be deemed to be an Incumbent Director (except that this 

proviso shall not apply to any individual whose initial election as a director 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 other than the Board); or
(c)the consummation of a reorganization, merger or consolidation involving the Company or a sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless, immediately following such Business Combination, each of the following three conditions is satisfied: (i) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns the Company or substantially all of the Company’s assets either directly or through one or more subsidiaries)(such resulting or acquiring corporation is referred to as the “Acquiring Corporation”) in substantially the same proportions, relative to one another, as their ownership, immediately prior to such Business Combination, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, respectively, (ii) no Person (excluding the Acquiring Corporation or any employee benefit plan (or related trust) maintained or sponsored by the Company or the Acquiring Corporation) beneficially owns, directly or indirectly, 50% or more of the then-outstanding shares of common stock of the Acquiring Corporation, or of the combined voting power of the then-outstanding voting securities of such corporation (except to the extent that such ownership existed prior to the Business Combination) and (iii) a majority of the members of the board of directors of the Acquiring Corporation were Incumbent Directors at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or
(d)approval of the stockholders of the Company of a complete liquidation or dissolution of the Company; provided that in each case a Change in Control must constitute a “change in control event” under Code Section 409A.
1.2    “Change in Control Date” means the applicable date on which a Change in Control occurs if one or more Change in Control events occur during the Term (as defined in Section 2).  Anything in this Agreement to the contrary notwithstanding, if a Change in Control occurs and if the Employee’s employment with the Company is terminated prior to the Change in Control Date or if any event which constitutes Good Reason (as defined in Section 1.4) occurs prior to the Change in Control Date, and if it is reasonably demonstrated by the Employee that such termination of employment or event which constitutes Good Reason (i) was at the request of a third party who has taken steps reasonably calculated to effect a Change in Control or (ii) otherwise arose in connection with or in anticipation of a Change in Control, then for all purposes of this Agreement the “Change in Control Date” shall mean the date immediately prior to the date of such termination of employment or event which constitutes Good Reason.
1.3    “Cause” means:
(e)the Employee’s intentional, willful and continuous failure to substantially perform his reasonable assigned duties (other than any such failure resulting from incapacity due to physical or mental illness), which failure is materially and demonstrably injurious to the Company, and which failure is not cured within 30 days after a written demand for substantial performance is received by the Employee from the Board which specifically identifies the manner in which the Board believes the Employee has not substantially performed the Employee’s duties, provided, however, that there shall be no specific requirement mandating (i) the number of hours worked in any particular month or other given time period, or (ii) the location such work is to be performed; or
(f)the Employee’s conviction of a felony or for other illegal conduct which is materially and demonstrably injurious to the Company.

For purposes of this Section 1.3, no act or failure to act by the Employee shall be considered “willful” unless it is done, or omitted to be done, in bad faith and without reasonable belief that the Employee’s action or omission was in the best interests of the Company.  The determination of whether Employee is being terminated for Cause or whether the event or condition constituting Cause is curable shall be made in good faith by the Board.
1.4    “Good Reason” means the occurrence, without the Employee’s written consent, of any of the events or circumstances set forth in clauses (a) through (f) below.  Notwithstanding the occurrence of any such event or circumstance, such occurrence shall not be deemed to constitute Good Reason if, prior to the Date of Termination specified in the Notice of Termination (each as defined in Section 3.2(a)) given by the Employee in respect thereof, such event or circumstance has been fully corrected and the Employee has been reasonably compensated for any losses or damages resulting therefrom; provided that such right of correction by the Company shall only apply to the first Notice of Termination for Good Reason given by the Employee:
(g)any significant diminution in the Employee’s duties, responsibilities or authority in effect immediately prior to the earliest to occur of (i) a Change in Control Date, (ii) the date of the execution by the Company of the initial written agreement or instrument providing for a Change in Control or (iii) the date of the adoption by the Board of a resolution providing for a Change in Control (with the earliest to occur of such dates referred to as the “Measurement Date”);
(h)any reduction in the Employee’s annual base salary as in effect on the Measurement Date or as the same may be increased from time to time;
(i)the failure by the Company to (i) continue in effect any material compensation or benefit plan or program (a “Benefit Plan”) in which the Employee participates or which is applicable to the Employee immediately prior to the Measurement Date, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan or reasonable cash compensation in lieu thereof) has been made with respect to such plan or program, (ii) continue the Employee’s participation in a Benefit Plan (or in such substitute or alternative plan or make reasonable cash compensation in lieu thereof) on a basis not materially less favorable, both in terms of the amount of benefits provided and the level of the Employee’s participation relative to other participants, than the basis existing immediately prior to the Measurement Date or (iii) award cash bonuses to the Employee in amounts and in a manner substantially consistent with past practice in light of the Company’s financial performance;
(j)a material change by the Company in the location at which the Employee performs the Employee’s principal duties for the Company to a new location that is either (i) outside a radius of 35 miles from the Employee’s principal residence immediately prior to the Measurement Date; (ii) more than 30 miles from the location at which the Employee performs his principal duties for the Company immediately prior to the Measurement Date, and which results in a material increase in the Employee’s daily commuting distance; or (iii) a requirement by the Company that the Employee travel on Company business (to locations outside a radius of 35 miles from the Employee’s principal residence immediately prior to the Measurement Date and more than 30 miles from the location at which the Employee performs his principal duties for the Company immediately prior to the Measurement Date) to a materially greater extent than required immediately prior to the Measurement Date;
(k)any material breach by the Company of any employment agreement with the Employee, including any intentional or commercially unreasonable failure of the Company to pay or provide to the Employee any portion of the Employee’s compensation or benefits due under any Benefit Plan within seven days of the date such compensation or benefits are due, or the failure of the Company to obtain the agreement, in a form reasonably satisfactory to the Employee, from any successor to the Company to assume and agree to perform this Agreement, as required by Section 6; or

(l)the Employee has a disability, meaning that the Employee is unable to perform his duties under his employment agreement with the Company, dated as of October 21, 2013 (the “Employment Agreement”), for 180 consecutive calendar days as a result of incapacity due to mental or physical illness which is determined to be total and permanent by a physician selected by the Employee or the Employee’s legal representative and acceptable to the Company or its insurers (the “Physician”), or that the Physician determines that the Employee is immediately unable to perform the essential functions of his duties with or without reasonable accommodation due to bodily injury or sickness, including mental or nervous disorder, and the inability to perform the essential functions is expected to last at least 180 consecutive calendar days.
1.5    “Effective Date” means the date as of which this Agreement is entered into.
2.Term of Agreement.  This Agreement, and all rights and obligations of the parties hereunder, shall take effect upon the Effective Date and shall expire upon the first to occur of
(a)the expiration of the Term (as defined below) if (i) a Change in Control has not occurred during the Term or (ii) the only Change in Control event(s) during the Term have occurred prior to the 24-month period preceding the expiration of the Term and the Employee was still employed by the Company 24 months after the Change in Control Date(s);
(b)if a Change in Control has occurred within the 24-month period preceding the expiration of the Term, the date 24 full calendar months after the Change in Control Date, if the Employee is still employed by the Company as of such later date; or
(c)if a Change in Control has occurred at any time during the Term and the Employee’s employment with the Company terminates within 24 full calendar months following the Change in Control Date, the fulfillment by the Company of all of its obligations under Sections 4 and 6, provided that Section 5 shall remain in effect from the Effective Date until 24 full calendar months after the Date of Termination of the Employee.
“Term” shall mean the period commencing as of the Effective Date and continuing in effect through January 31, 2016.  
3.    Employment Status; Termination Following Change in Control.
3.1    Not an Employment Contract.  The Employee acknowledges that this Agreement does not constitute a contract of employment or impose on the Company any obligation to retain the Employee as an employee and that this Agreement does not prevent the Employee from terminating employment at any time.  If the Employee’s employment with the Company terminates for any reason not in connection with or in anticipation of a Change in Control and subsequently a Change in Control occurs, the Employee shall not be entitled to any benefits hereunder, except as otherwise provided pursuant to Section 1.2.
3.2    Termination of Employment.
(d)If a Change in Control Date occurs during the Term, any termination of the Employee’s employment by the Company or by the Employee within 24 full calendar months following the Change in Control Date (other than due to the death of the Employee) shall be communicated by a written notice to the other party hereto (the “Notice of Termination”), given in accordance with Section 7.  Any Notice of Termination shall: (i) indicate the specific termination provision (if any) of this Agreement relied upon by the party giving such notice; (ii) to the extent applicable, set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination for the Employee’s employment under the provision so indicated and (iii) specify the Date of Termination (as defined below).  The date on which an employment termination becomes effective (the “Date of Termination”) shall be the close of business on the date specified in the Notice of Termination (which date shall be 30 days after the date of delivery of such Notice of Termination), in the case of a termination other than due to the Employee’s death or the date of the Employee’s death, as the case may be.

(e)The failure by the Employee or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Employee or the Company, respectively, to assert any such fact or circumstance in enforcing the Employee’s or the Company’s right hereunder.
(f)Any Notice of Termination for Cause given by the Company must be given within 60 days of the occurrence of the event(s) or circumstance(s) which constitute(s) Cause.  Prior to any Notice of Termination for Cause being given (and prior to any termination for Cause being effective), the Employee shall be entitled to a hearing before the Board at which he may, at his election, be represented by counsel and at which he shall have a reasonable opportunity to be heard.  Such hearing shall be held with not less than 15 days’ prior written notice to the Employee stating the Board’s intention to terminate the Employee for Cause and stating in detail the particular event(s) or circumstance(s) which the Board believes constitutes Cause for termination,
(g)Any Notice of Termination for Good Reason given by the Employee must be given within 60 days of the occurrence of the event(s) or circumstance(s) which constitute Good Reason.
4.    Benefits to Employee.
4.1    Compensation.  If a Change in Control Date occurs during the Term and the Employee’s employment with the Company terminates within 24 full calendar months following the Change in Control Date, the Employee shall be entitled to the following benefits:
(h)Termination Without Cause or for Good Reason following a Change in Control.  If the Employee’s employment with the Company is terminated by the Company (other than for Cause or death) or by the Employee for Good Reason within 24 full calendar months following the Change in Control Date, then the Employee shall be entitled to the following benefits:
(i)The Company shall pay to the Employee in a lump sum in cash within 60 days after the Date of Termination the aggregate of the following amounts (provided that, in the event the Employee is entitled to benefits under this Section 4.1(a) as a result of a qualifying termination of the Employee’s employment that occurs prior to a Change in Control as provided by Section 1.2 of this Agreement, such lump sum payment shall be made within 60 days after the applicable date on which the Change in Control occurs provided Employee makes a valid claim within 45 days after the applicable date on which the Change in Control occurs):
(1)the sum of (A) the Employee’s annual base salary through the Date of Termination and (B) the product of (x) the Employee’s total on target semi-annual and annual bonuses for the current fiscal year (meaning the maximum amount of bonus for which the Employee is eligible for the entire fiscal year, if any, under the Company’s Employee bonus plan) (the “Target Bonus”) and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination, and the denominator of which is 365, less (C) the amount of any annual compensation previously paid, whether in quarterly bonus payments, or otherwise, (the sum of the amounts described in clauses (A) and (B), less the amount previously paid in (C), shall be referred to as the “Accrued Obligations”); and
(2)two hundred percent (200%) of the higher of (A) the sum of the Employee’s annual base salary as of the date immediately before the Date of Termination and the Employee’s Target Bonus, if any, for the current fiscal year; or (B) the sum of the amounts paid for the Employee’s annual base salary and bonus in the fiscal year that is up to two (2) years prior to the fiscal year in which the Date of Termination occurs.
(ii)To the extent not previously paid or provided, the Company shall timely pay or provide to the Employee any other amounts or benefits required to be paid or provided or which the Employee is eligible to receive following the Employee’s termination of employment under any plan, program, policy, practice, contract or agreement of the Company (such other amounts and benefits shall be referred to as the “Other Benefits”);

(iii)The Employee will be entitled to continue to use all of the Company’s San Clemente facilities for a period of five years to the extent that the Company maintains such facilities;
(iv)Notwithstanding any provision of this Agreement, (A) awards that have been granted to the Employee under the LTRP (“LTRP Awards”) that have not been paid in accordance with the terms of the LTRP shall not be considered Accrued Obligations, Target Bonus or benefits to be provided in accordance with Benefit Plans for purposes of determining amounts to be paid under this Section 4.1 and (B) LTRP Awards are Other Benefits that will be paid or not paid, as the case may be, in accordance with the terms the LTRP.
(i)Resignation without Good Reason, Termination for Cause, or Termination for Death Following a Change in Control.  If the Employee voluntarily terminates his employment with the Company within 24 full calendar months following a Change in Control Date, excluding a termination for Good Reason, or the Employee’s employment with the Company is terminated by the Company for Cause, or by reason of the Employee’s death within 24 full calendar months following a Change in Control Date, then the Company shall (i) pay the Employee (or his estate, if applicable), in a lump sum in cash within 60 days after the Date of Termination, the Accrued Obligations and (ii) timely pay or provide to the Employee the Other Benefits earned before the Date of Termination. 
4.2    Limitation on Payments.  In the event that any of the payments or benefits provided for in this Agreement or otherwise (i) constitute “parachute payments” within the meaning of Section 280G of the Code, and (ii) but for this Section 4.2, would be subject to the excise tax imposed by Section 4999 of the Code, then the Employee’s payments or benefits under this Agreement or otherwise will be either:
(j)delivered in full, or
(k)delivered as to such lesser extent which would result in no portion of such payments or benefits being subject to excise tax under Section 4999 of the Code, 
whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by the Employee on an after-tax basis of the greatest amount of payments and benefits, notwithstanding that all or some portion of such payments or benefits may be taxable under Section 4999 of the Code.  Unless the Company and the Employee otherwise agree in writing, any determination required under this Section 4.2 will be made in writing by the Company’s independent public accountants immediately prior to the Change in Control Date (the “Accountants”), whose determination will be conclusive and binding upon the Employee and the Company for all purposes.  For purposes of making the calculations required by this Section 4.2, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Company and the Employee will furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 4.2.  The Company will bear all fees and costs payable to the Accountants in connection with any calculations contemplated by this Section 4.2.  Any reduction in payments and/or benefits required by this Section 4.2 shall occur in the following order: (1) reduction of cash payments, (2) reduction of equity acceleration (full-value awards first, then stock options), and (3) other benefits paid to the Employee.  In the event that acceleration of vesting of equity awards is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the equity awards.
4.3    Mitigation.  The Employee shall not be required to mitigate the amount of any payment or benefits provided for in this Section 4 by seeking other employment or otherwise.  Further, except as provided in Section 4.1(a)(ii), the amount of any payment or benefits provided for in this Section 4 shall not be reduced by any compensation earned by the Employee as a result 

of employment by another employer, by retirement benefits, by disability or death benefits, by offset against any amount claimed to be owed by the Employee to the Company or otherwise.
5.    Disputes.
5.1    Settlement of Disputes; Arbitration.  All claims by the Employee for benefits under this Agreement shall be directed to and determined by the Board and shall be in writing.  Any denial by the Board of a claim for benefits under this Agreement shall be delivered to the Employee in writing and shall set forth the specific reasons for the denial and the specific provisions of this Agreement relied upon.  The Board shall afford a reasonable opportunity to the Employee for a review of the decision denying a claim.  Any further dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in Orange County, California, in accordance with the rules of the American Arbitration Association then in effect.  Judgment may be entered on the arbitrator’s award in any court having jurisdiction.
5.2    Expenses.  The prevailing party shall be entitled to recover all costs and expenses, including reasonable attorneys’ fees, expert witness fees, court costs and all other costs and expenses incurred in any action or proceeding arising out of this Agreement or as to any matters related to but not covered by this Agreement.  “Prevailing party” for purposes of this Section 5.2 includes a party who agrees to dismiss an action or proceeding upon the other’s payment of the sums allegedly due or for performance of the covenants, undertakings or agreements allegedly breached, or who obtains substantially the relief it sought.
6.    Successors; Binding Agreement.
(l)The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company to expressly assume and agree to perform this Agreement 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 an assumption of this Agreement at or prior to the effectiveness of any succession shall be a breach of this Agreement and shall constitute Good Reason if the Employee elects to terminate employment (and such termination shall be deemed to have occurred after a Change in Control), except that 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, “Company” shall mean the Company as defined above and any successor to its business or assets as aforesaid that assumes and agrees to perform this Agreement, by operation of law or otherwise.
(m)This Agreement shall inure to the benefit of and be enforceable by the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If the Employee should die while any amount would still be payable to the Employee or his family hereunder if the Employee had continued to live, all such amounts, unless otherwise provided, herein, shall be paid in accordance with the terms of this Agreement to the executors, personal representatives or administrators of the Employee’s estate.
7.    Notice.  All notices, instructions and other communications given hereunder or in connection herewith shall be in writing.  Any such notice, instruction or communication shall be sent either (i) by registered or certified mail, return receipt requested, postage prepaid, or (ii) prepaid via a reputable nationwide overnight courier service, in each case addressed to the Company at 951 Calle Amanecer, San Clemente, CA 92673, and to the Employee at the home address most recently provided by the Employee to the Company (or to such other address as either the Company or the Employee may have furnished to the other in writing in accordance herewith).  Any such notice, instruction or communication shall be deemed to have been delivered, whether or not actually received, five business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or one business day after it is sent via a reputable nationwide overnight courier service.  Either party may give any notice, instruction or other communication hereunder using any other means, but no such notice, instruction or other 

communication shall be deemed to have been duly delivered unless and until it is actually is received by the party for whom it is intended.
8.    Miscellaneous.
8.1    Employment by Subsidiary.  For purposes of this Agreement, the Employee’s employment with the Company shall not be deemed to have terminated solely as a result of the Employee continuing to be employed by a wholly-owned subsidiary of the Company.
8.2    Severability.  If any provision of this Agreement is declared invalid or unenforceable, such provision shall be deemed automatically adjusted to conform to the requirements for validity or enforceability as declared at such time while maintaining the original intent of the provision to the greatest extent possible and, as so adjusted, shall be deemed a provision of this Agreement as though originally included herein.  If the provision invalidated or deemed unenforceable is of such a nature that it cannot be so adjusted, the provision shall be deleted from this Agreement as though it had never been included therein.  The invalidity or unenforceability of any provision 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.
8.3    Injunctive Relief.  The Company and the Employee agree that any breach of this Agreement by the Company or the Employee is likely to cause the Employee or the Company substantial and irrevocable damage and therefore, in the event of any such breach, in addition to such other remedies which may be available, the Employee or the Company shall have the right to seek specific performance and injunctive relief.
8.4    Governing Law.  The validity, interpretation, construction, enforceability and performance of this Agreement shall be governed by the internal law of the State of California.
8.5    Waivers.  No waiver by the Employee at any time of any breach of or compliance with, any provision of this Agreement to be performed by the Company shall be deemed a waiver of that or any other provision at any subsequent time.
8.6    Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original but both of which together will constitute one and the same instrument.
8.7    Tax Withholding.  Subject to Section 4.2, any payments provided for hereunder shall be paid net of any applicable tax withholding required under federal, state or local law.
8.8    Entire Agreement.  Except as provided in the Employee’s stock option, RSU, and PSU agreements and the Employment Agreement, this Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party hereto; and any prior agreement of the parties hereto in respect of the subject matter contained herein is hereby terminated and cancelled.  Nothing contained in this Agreement shall limit the Employee’s or the Company’s rights, obligations and benefits under the Employee’s stock option, RSU and PSU agreements and the Employment Agreement.
8.9    Amendments.  The Employee and the Company may, by mutual agreement, amend or modify this Agreement, provided, however that any such amendment or modification shall only be effected by a written instrument executed by both the Company and the Employee.
8.10    Section 409A Compliance.  This Agreement is intended to comply with Section 409A (as amplified by any Internal Revenue Service or U.S. Treasury Department guidance), and shall be construed and interpreted in accordance with such intent.  The severance payments set forth in this Agreement are intended to comply with or be exempt from Section 409A, and shall at all times be interpreted and administered in furtherance of this intent.  The Company shall delay the payments of any amounts under this Agreement to the extent necessary to comply with Section 409A(a)(2)(B)(c) of the Code.  If penalty or interest liability would be charged to the Employee under Section 409A or similar state or local law, for which it is reasonably concluded that the event giving rise to the liability was not in the reasonable control of the Employee, the Company shall reimburse the Employee for such penalty and/

or interest liability accruing under Section 409A or similar state or local law within sixty (60) days of the Employee’s remittance of such penalty and/or interest liability to the appropriate tax authorities.
[The remainder of this page is intentionally blank]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as a sealed instrument as of the day and year first set forth above.
ICU MEDICAL, INC.
By:        

		
	Title:
	____________________________________

    
GEORGE A. LOPEZ, M.D.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}]]