Document:

EX-4.8

Exhibit 4.8

FORM OF INSTRUCTIONS FOR USE OF LETTER OF TRANSMITTAL

INSTRUCTIONS FOR USE OF ENERGY FOCUS, INC.

LETTER OF TRANSMITTAL

CONSULT BANK OF NEW YORK MELLON SHAREOWNER SERVICES OR

YOUR BANK OR BROKER AS TO ANY QUESTIONS

THE RIGHTS WILL EXPIRE AT 5:00 PM., NEW YORK CITY TIME, ON

NOVEMBER [___], 2009, UNLESS EXTENDED AS DESCRIBED IN THE

PROSPECTUS.

     The following instructions relate to a rights offering (the “Rights Offering”) by Energy
Focus, Inc., a Delaware corporation (the “Company”), to the holders of common stock, par value
$.0001 per share (“Common Stock”), of the Company as described in the Company’s prospectus dated
October [___], 2009 (the “Prospectus”). Stockholders of record at the close of business on October
[___], 2009 (the “Record Date”) are receiving one transferable subscription right for each share of
the company’s common stock held by them at the Record Date. Holders of Common Stock are receiving
transferable subscription rights (“Rights”) to acquire shares of Common Stock, par value $.0001 per
share.

     Each whole Right is exercisable, upon payment of $[_.___] per share (the “Subscription Price”),
to purchase one share of Common Stock (the “Basic Subscription Privilege”). In addition, subject to
the proration described below, each holder of record of Rights (“Rightsholder”) who fully exercises
its Basic Subscription Privilege with respect to all Rights that it holds in the same capacity
pursuant to a single Common Stock transmittal letter (“Transmittal Letter”) also has the right to
subscribe at the Subscription Price for additional shares of Common Stock (the “Over-subscription
Privilege”). If shares of Common Stock being offered in the Rights Offering remain available for
purchase following the exercise of the Basic Subscription Privilege by Rightsholders prior to the
Expiration Time (the “Excess Shares”), Rightsholders who have exercised their Over-subscription
Privilege to subscribe for a number of Excess Shares will be permitted to purchase those shares
subject to the proration described below. If there is not a sufficient number of Excess Shares to
satisfy all subscriptions pursuant to the exercise of the Over-subscription Privilege, the Excess
Shares will be allocated pro rata (subject to the elimination of fractional shares) among
Rightsholders exercising their Over-subscription Privilege in proportion to the number of shares of
the Company’s common stock owned by the Rightholders on the Record Date relative to the number of
shares owned on the record date by all Rightholders exercising their Over-subscription Privilege;

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provided,
however, that if such pro rata allocation results in any Rightsholder being allocated a
greater number of Excess Shares than such Rightsholder subscribed for pursuant to the exercise of
such Rightsholder’s Over-subscription Privilege, then such
Rightsholder will be allocated only such number of Excess Shares as such Rightsholder subscribed
for, and the remaining Excess Shares will be allocated among all other Rightsholders exercising
their Over-subscription Privileges.

     No fractional rights or cash in lieu thereof will be issued or paid. Instead, fractional
Rights will be rounded up to the nearest whole right. Nominee holders of Common Stock that hold, on
the Record Date, shares for the account of more than one beneficial owner may exercise the number
of Rights to which all such beneficial owners in the aggregate would otherwise have been entitled
if they had been direct record holders of Common Stock on the Record Date, provided such nominee
holder makes a proper showing to the Subscription Agent, as determined in the Company’s sole and
absolute discretion.

     The Subscription Price for Common Stock is payable by certified or cashiers check drawn upon a
U.S. bank or by postal, telegraphic or express money order, in each case payable to the
Subscription Agent, or by wire transfer to the Subscription Agent.

     The Rights will expire at 5:00 p.m., New York City time, on November [___], 2009, unless
extended by the Company as described in the Prospectus (the “Expiration Time”).

     The number of Rights to which a holder of a “Transmittal Letter” is entitled is printed on the
face of that holder’s Transmittal Letter. You should indicate your wishes with regard to the
exercise, assignment, transfer or sale of your Rights by completing the Transmittal Letter and
returning it to the Subscription Agent in the envelope provided.

     YOUR TRANSMITTAL LETTER MUST BE RECEIVED BY THE SUBSCRIPTION AGENT OR GUARANTEED DELIVERY
REQUIREMENTS WITH RESPECT TO YOUR TRANSMITTAL LETTER MUST BE COMPLIED WITH, AND PAYMENT OF THE
SUBSCRIPTION PRICE MUST BE RECEIVED, AS MORE SPECIFICALLY DESCRIBED IN THE PROSPECTUS, BY THE
SUBSCRIPTION AGENT ON OR BEFORE THE EXPIRATION TIME. YOU MAY NOT REVOKE ANY EXERCISE OF A RIGHT

1. Subscription Privilege.

     To exercise Rights, deliver your properly completed and executed Transmittal Letter, together
with payment in full of the Subscription Price for each share of Common Stock subscribed for
pursuant to the Basic Subscription Privilege and the Over-subscription Privilege, to the
Subscription Agent.

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     Payment of the applicable Subscription Price must be made for the full number of shares of
Common Stock being subscribed for by certified or cashiers check drawn upon a U.S. bank or by
postal, telegraphic or express money order payable to Bank of New York Mellon Shareowner Services,
as Subscription Agent, or by wire transfer sent to the Subscription Agent. THE SUBSCRIPTION PRICE
WILL BE DEEMED TO HAVE
BEEN RECEIVED BY THE SUBSCRIPTION AGENT ONLY UPON THE RECEIPT BY THE SUBSCRIPTION AGENT OF ANY
CERTIFIED OR CASHIERS CHECK DRAWN UPON A U.S. BANK OR OF ANY POSTAL, TELEGRAPHIC OR EXPRESS MONEY
ORDER, OR BY WIRE TRANSFER, AS PROVIDED ABOVE.

     Alternatively, you may cause a written guarantee substantially in the form enclosed herewith
(the “Notice of Guaranteed Delivery”) from a commercial bank, trust company, securities broker or
dealer, credit union, savings association or other eligible guarantor institution which is a member
of or a participant in a signature guarantee program acceptable to the Subscription Agent (each of
the foregoing being an “Eligible Institution”), to be received by the Subscription Agent at or
prior to the Expiration Time, together with payment in full of the applicable Subscription Price.
Such Notice of Guaranteed Delivery must state your name, the number of Rights represented by your
Transmittal Letter, the number of shares of Common Stock being subscribed for pursuant to the Basic
Subscription Privilege and the number of shares of Common Stock, if any, being subscribed for
pursuant to the Over-subscription Privilege, and will guarantee the delivery to the Subscription
Agent of your properly completed and executed Transmittal Letter within three business days
following the date the Subscription Agent receives the Notice of Guaranteed Delivery. If this
procedure is followed, your Transmittal Letter must be received by the Subscription Agent within
three business days following the date the Subscription Agent receives the Notice of Guaranteed
Delivery.

     Additional copies of the Notice of Guaranteed Delivery may be obtained upon request from the
Information Agent, at the address, or by calling the telephone number, indicated below.

     If more shares of Common Stock are subscribed for pursuant to the Over-subscription Privilege
than are available for sale, such shares will be allocated as described above.

     The address and facsimile numbers of the Subscription Agent are as follows:

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	By Mail:

	 	By Overnight Courier:
	 	By Hand:
	Energy Focus, Inc.

	 	Energy Focus, Inc.
	 	Energy Focus, Inc.
	c/o BNY Mellon Shareowner Services

	 	c/o BNY Mellon Shareowner Services
	 	c/o BNY Mellon Shareowner Services
	Attn: [                    ] Dept.

	 	Attn: [                    ] Dept.
	 	Attn: [                    ] Dept.
	P.O. Box [                    ]

	 	[                    ,                     Floor]
	 	[                    ,                      Floor]
	Jersey City, New Jersey [                    ]

	 	Jersey City, New Jersey [                    ]
	 	New York, New York [                    ]

	 	 	 	 	 	 	 
	 

	 	Facsimile Transmission:
	 	 	 	To confirm receipts of
	 

	 	(Eligible Institutions Only)
	 	 	 	facsimiles only:
	 

	 	[___-___-___]
	 	 	 	[___-___-___]

Delivery to an address other than the addresses listed above, or transmission to a facsimile number
other than the number set forth above, will not constitute valid delivery.

     The address and telephone numbers of the Information Agent, for inquiries, information or
requests for additional documentation with respect to the Rights are as follows:

Bank of New York Mellon Shareowner Services

Attention: [_________] Dept.

[_____________, __ Floor]

[______________,__________ _____]

[__-__-____]

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     If you have not indicated the number of shares of Common Stock being purchased, or if you have
not forwarded full payment of the Subscription Price for the
number of shares of Common Stock that
you have indicated are being purchased, you will be deemed to have exercised the Basic Subscription
Privilege with respect to the maximum number of shares of Common Stock which may be purchased for
the Subscription Price transmitted or delivered by you, and to the extent that the Subscription
Price transmitted or delivered by you exceeds the product of the Subscription Price multiplied by
the number of shares of Common Stock you are entitled to purchase as evidenced by the Transmittal
Letter(s) transmitted or delivered by you and no direction is given as to the excess (such excess
being the “Subscription Excess”), you will be deemed to have exercised your Over-subscription
Privilege to purchase, to the extent available, that number of whole shares of Common Stock equal
to the quotient obtained by dividing the Subscription Excess by the Subscription Price, subject to
the limit on the number of shares of Common Stock available to be purchased in the Rights Offering
and applicable proration.

2. Conditions to Completion of the Rights Offering.

     There are no conditions to the completion of the Rights Offering. However, the Company has the
right to terminate the Rights Offering for any reason before the Rights distributed in the Rights
Offering expire.

3. Delivery of Shares of Common Stock

     The following deliveries and payments will be made to the address shown on the face of your
Transmittal Letter unless you provide instructions to the contrary in your Transmittal Letter.

     (a) Basic Subscription Privilege. As soon as practicable after the Expiration Time, the
Subscription Agent will issue to each validly exercising Rightsholder shares of Common Stock
purchased pursuant to such exercise. Such shares will be issued electronically in registered,
book-entry form.

     (b) Over-subscription Privilege. As soon as practicable after the Expiration Time, the
Subscription Agent will issue to each Rightsholder who validly exercises the Over-subscription
Privilege the number of shares of Common Stock allocated to and
purchased by such Rightsholder pursuant to the Over-subscription Privilege. Such shares will be
issued electronically in registered, book-entry form.

     (c) Return of Excess Payments. As soon as practicable after the Expiration Time, the
Subscription Agent will promptly deliver to each Rightsholder who exercises the Over-subscription
Privilege any excess funds, without interest or deduction, received in payment of the Subscription
Price for each share of Common Stock that is subscribed for by, but not allocated to, such
Rightsholder pursuant to the Basic Subscription Privilege or the Over-subscription Privilege.

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4. To Sell or Transfer Rights.

     To transfer your unexercised Rights to a designated transferee or to a broker, dealer or
nominee for sale on your behalf, you must complete the Assignment in Box 8 of your Transmittal
Letter. Your signature(s) must be medallion guaranteed by an Eligible Institution.

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5. To Sell or Transfer Stock; Special Mailing Instructions.

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     If you want your Energy Focus, Inc. stock and any refund check to be issued in another name,
complete the Special Instructions in Box 6 of the Transmittal Letter. If you want your stock and
any refund check to be mailed to a different address or to someone else, complete the Special
Mailing Instructions in Box 7 of the transmittal Letter. Signature(s) in Boxes 6 and 7 must be
medallion guaranteed by an Eligible Institution.

6. Execution.

     (a) Execution by Registered Holder(s). The signature on the Transmittal Letter must correspond
with the name of the registered holder exactly as it appears on the face of the Transmittal Letter
without any alteration or change whatsoever. If the Transmittal Letter is registered in the names
of two or more joint owners, all of such owners must sign. Persons who sign the Transmittal Letter
in a representative or other fiduciary capacity must indicate their capacity when signing and,
unless waived by the Company in its sole and absolute discretion, must present to the Subscription
Agent satisfactory evidence of their authority to so act.

     (b) Execution by Person Other than Registered Holder. If the Transmittal Letter is executed by
a person other than the holder named on the face of the Transmittal Letter, proper evidence of
authority of the person executing the Transmittal Letter must accompany the same unless, for good
cause, the Company dispenses with proof of authority, in its sole and absolute discretion.

     (c) Signature Guarantees. Your signature must be guaranteed by an Eligible Institution if you
wish to transfer all or less than all of your unexercised Rights to a designated transferee or to a
broker, dealer or nominee for sale on your behalf, as
specified in Paragraph 4, or if you want your stock and any refund check to be issued in another
name, as specified in Paragraph 5, or if you
want your stock and any refund check mailed to a
different address or to someone else, as specified in Paragraph 5.

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7. Method Of Delivery.

     The method of delivery of Transmittal Letters and payment of the Subscription Price to the
Subscription Agent will be at the election and risk of the Rightsholder, but, if sent by mail, it
is recommended that they be sent by registered mail, properly insured, with return receipt
requested, and that a sufficient number of days be allowed to ensure delivery to the Subscription
Agent prior to the Expiration Time.

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8. Form W-9.

     Each Rightsholder who elects to exercise his, her, or its Rights through the Subscription
Agent should provide the Subscription Agent with a correct Taxpayer Identification Number (“TIN”)
and, where applicable, certification of such Rightsholder’s exemption from backup withholding on a
Form W-9. Each foreign Rightsholder who elects to exercise his, her, or its Rights through the
Subscription Agent should provide the Subscription Agent with certification of foreign status on a
Form W-8. Copies of Form W-8 and additional copies of Form W-9 may be obtained upon request from
the Subscription Agent at the address, or by calling
the telephone number, indicated above. Failure
to provide the information on the form may subject such holder to 28% federal income tax
withholding with respect to any proceeds received by such Rightsholder.

10exv10w1

Exhibit 10.1

SEPARATION AND RELEASE AGREEMENT

     This SEPARATION AND RELEASE AGREEMENT (the “Agreement”) is entered into
as of the       day of July, 2009, by and between, HRB Tax Group, Inc., a Missouri corporation
(“Block”), and Timothy C. Gokey (“Executive”).

     WHEREAS, Executive and Block are parties to an Employment Agreement dated June 28,
2004 (the “Employment Agreement”),

     WHEREAS, Executive and Block agree to end Executive’s employment,

     WHEREAS, Executive and Block intend the terms and conditions of this Agreement to
govern all issues related to Executive’s employment and separation,

     NOW, THEREFORE, in consideration of the covenants and mutual promises contained in
this Agreement, Executive and Block agree as follows:

     1. Termination of Employment. The parties agree that Executive’s employment
with Block will end on August 31, 2009 (“Separation Date”). Until the Separation
Date, the
Executive will remain on active payroll and be paid his current salary in accordance
with Block’s
regular payroll practices. Until the Separation Date, Executive agrees that he will
only perform
transition work as specifically agreed by Block Chief Executive Officer (“CEO”) Russ
Smyth
and Executive. Executive further agrees that he will timely respond to questions
and provide
guidance as requested by Block CEO Russ Smyth. On or after the Separation Date,
Executive
acknowledges and agrees that he will not represent himself as being an employee,
officer,
director, trustee, member, partner, agent, or representative of Block for any
purpose, and will not
make any public statements on behalf of Block. Executive further acknowledges and
agrees that
he has received proper notice under Section 1.07(b) of his Employment Agreement to
terminate
it.

     2. Resignation. Executive agrees that as of the Separation Date, he resigns
from all
offices, directorships, trusteeships, committee memberships, and fiduciary capacities
held with,
or on behalf of, Block or its parents, subsidiaries, or affiliates (collectively as
“Affiliates”), or
any benefit plans of Block or its Affiliates. Executive will execute the
resignations attached as
Exhibit A on minute book paper contemporaneously with his execution of this
Agreement.

     3. Severance Benefits. The parties agree to treat Executive’s separation of
employment as a termination without “cause” and a “Qualifying Termination” (as defined in
Section 1.07 of the Employment Agreement) for purposes of Executive’s eligibility for
severance compensation and benefits as set forth in this Section. Subject to the terms
and conditions of this Agreement, including Executive’s executing this Agreement and the
Supplemental General Release, Executive acknowledges and agrees that he will not be
eligible
for any compensation or benefits after the Separation Date except for the following:

     a. Severance Pay. Subject to the terms of the H&R Block Severance
Plan (“Severance Plan”), Block will pay to Executive $833,340.00, less required
tax

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withholdings, in a lump sum payment within 30 days from the later of the Separation
Date or the Effective Date of this Agreement.

     b. Employee Benefits. Executive will remain eligible to participate in
the various
health and welfare benefit plans maintained by Block until the
Separation Date.
After the
Separation Date, Block will pay Executive a lump sum payment of $10,008, lass
applicable tax withholdings, which represents Executive’s monthly
post-employment
premium for health and welfare benefits under COBRA for twelve (12) months less
the
amount Executive paid for such benefits as an active employee. To be eligible
for the
payment described in this subsection, Executive must be enrolled in Block’s
health and
welfare plans on the Terminate Date. If Executive qualifies for this payment,
Block will
pay Executive this payment within 30 days from the later of the Separation Date
or the
Effective Date of this Agreement. Conversion privileges may also be available
for other
benefit plans.

     c. Stock Options. Those portions of any outstanding incentive
stock options
(“ISO Stock Options”) and nonqualified stock options (“NQ Stock Options”) to
purchase shares of Block’s common stock Block granted to Executive that are scheduled to
vest
between the Separation Date and 18 months thereafter (based solely on the
time-specific
vesting schedule included in the applicable stock option agreement) shall vest
and
become exercisable as of the Separation Date. A list of the stock options
vested as of the
date of this Agreement and to become vested pursuant to this Section is
attached as
Exhibit B. Any stock options unaffected by the operation of this Section
shall be
forfeited to Block on the Separation Date. No later than the
Separation Date,
Executive
will complete an election form on which he will elect the time period during
which he
may exercise his ISO and NQ Stock Options. Executive acknowledges and agrees
that he
is solely responsible for the income tax treatment of his ISO and NQ Stock
Options
election, and that Block has not provided him any personal tax advice about
this election.
Block encourages Executive to seek independent tax advice regarding this
election.

     d. Restricted Shares, All restrictions on any shares of Block’s
common stock
Block awarded to Executive (“Restricted Shares”) that would have lapsed absent
a
termination of employment in accordance with their terms by reason of time
between the
Separation Date and 18 months thereafter shall terminate (and shall be fully
vested) as of
the Separation Date. Executive shall forfeit on the Separation Date any shares
unaffected
by the operation of this Section. A list of the Restricted Shares outstanding
as of the date
of this Agreement and to become vested pursuant to this Section is attached as
Exhibit C.

     e. Performance Shares. The number of performance shares Executive
will
receive at the end of each applicable performance period will be determined
based upon
(1) Executive’s pro-rata length of service during the performance period, and
(2) the
achievement of the performance goals at the end of the performance period.
Block will
pay any performance shares due Executive to him at the time payments are
generally
made to other individuals who received a similar award of performance shares.
On the
Separation Date, Executive shall forfeit to Block any Performance Shares Block
awarded
him pursuant to a cycle which is less than one year old. A list of the
Performance Shares
eligible to become payable pursuant to this subsection is attached as Exhibit
D.

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     f. Outplacement Services. Block will pay directly to Right Management
Services
for twelve (12) months of outplacement services to be provided to Executive.
Executive
must elect these outplacement services on or before August 31, 2009 in writing
to the
Block Senior Vice-President, Human Resources. Executive waives these
outplacement
services if he fails to provide such written notification on or before August
31, 2009.

     g. Deferred Compensation. Executive will receive his vested account
balance
and payment in accordance with Executive’s payment elections under the H&R
Block
Deferred Compensation Plan for Executives, as amended.

     h. Forfeiture. Executive agrees that the compensation and benefits
described in this Section will cease, and no further compensation and benefits will
be provided to him if he violates any of the post-employment obligations under
Section 7 of this Agreement, or Articles Two and Three of the Employment Agreement.

     4. Vacation. Block will pay Executive for his accrued, unused paid time off
which
includes vacation, floating holidays, and personal days (but excludes sick leave as
set forth in the
Company’s policies) within 30 days of the Separation Date (the “PTO Payout”).
Executive
agrees that his PTO Payout will be $60,332.31, less applicable withholdings.
Executive will not
receive any other payment for vacation or holidays.

     5. Executive’s Representations. Executive represents and acknowledges to Block
that
(a) Block has advised him to consult with an attorney of his choosing; (b) he has had
twenty-one
(21) days to consider the waiver of his rights under the Age Discrimination in
Employment Act of
1967, as amended (“ADEA”) prior to signing this Agreement; (c) he has disclosed to
Block any
information in his possession concerning any conduct involving Block or its Affiliates
that he has
any reason to believe involves any false claims to any governmental agency, or is or
may be
unlawful, or violates Block policy in any respect; (d) the consideration provided him
under this
Agreement is sufficient to support the releases provided by him under this Agreement;
and (e) he
has not filed any charges, claims or lawsuits against Block involving any aspect of
his employment
which have not been terminated as of the date of this Agreement. Executive understands
that Block
regards the representations made by him as material and that Block is relying on these
representations in entering into this Agreement.

     6. Effective Date of this Agreement. Executive shall have seven (7) days
from the
date he signs this Agreement to revoke his consent to the waiver of his rights under
the ADEA in
writing addressed and delivered to CEO Russ Smyth which action shall revoke this
Agreement. If
Executive revokes this Agreement, all of its provisions shall be void and
unenforceable. If
Executive does not revoke his consent, this Agreement will take effect on the day
after the end of
this revocation period (the “Effective Date”).

     7. Surviving Employment Agreement Obligations. Executive and Block agree that
the termination of Executive’s employment will not affect the following provisions of
the
Employment Agreement which, by their express terms, impose continuing obligations on
one or
more of the parties following termination of the Employment Agreement: (a) Article
Two,
“Confidentiality” — Sections 2.01, 2.02; (b) Article Three, “Non-Hiring;
Non-Solicitation; No
Conflicts; Non-Competition” — Sections 3.01, 3.02, 3.03, 3.05, 3.07; and (c) Article
Four,
“Specific Performance” — Section 4.03. Executive acknowledges and agrees that he will
fully

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comply with these obligations. Block may agree to waive any of Executive’s surviving
post-employment obligations under the Employment Agreement. Any such waiver must be in
writing and signed by Executive and the Block CEO. Unless otherwise agreed by the parties
in writing, any payments made to Executive under this Agreement will immediately cease
upon any such waiver.

     8.Indemnification. Block and Executive agree that Executive will
receive, as applicable, the indemnification set forth in Paragraph 4.06 of the Employment
Agreement.

     9. Business Expenses and Commitments. As of the Separation Date, Executive
agrees that he will have submitted required documentation for all outstanding expenses
on his
corporate credit card and he will have fully paid off all such outstanding expenses.
As of the
Effective Date, Executive further agrees that he will not initiate, make, renew,
confirm or ratify
any contracts or commitments for or on behalf of Block or any Affiliate, nor will he
incur any
expenses on behalf of Block or any Affiliate without Block’s prior written consent.

     10. Release. Executive and his heirs, assigns, and agents forever release,
waive, and
discharge Block, Affiliates, and Released Parties as defined below from each and every
claim,
action, or right of any sort, known or unknown, arising on or before the Effective
Date.

     a. The foregoing release includes, but is not limited to, (1) any claim of
retaliation
or discrimination on the basis of race, sex, pregnancy, religion, marital
status, sexual
orientation, national origin, handicap or disability, age, veteran status,
special disabled
veteran status, or citizenship status or any other category protected by law;
(2) any other
claim based on a statutory prohibition or requirement such as the Age
Discrimination in
Employment Act, Title VII of the Civil Rights Act, the Americans With
Disabilities Act, the
Fair Labor Standards Act, the Employee Retirement Income Security Act of 1974,
the
Missouri Human Rights Act, the Missouri Service Letter Statute, and the Civil
Rights
Ordinance of Kansas City, Missouri; (3) any claim arising out of or related to
an express or
implied employment contract, any other contract affecting terms and conditions
of
employment, or a covenant of good faith and fair dealing; (4) any tort claims
such as
wrongful discharge, detrimental reliance, defamation, emotional distress, or
compensatory
or punitive damages; (5) any personal gain with respect to any claim arising
under the qui
tam provisions of the False Claims Act, 31 U.S.C. 3730, and (6) any claims to
attorney fees,
expenses, costs, disbursements, and the like.

     b. Executive represents that he understands the foregoing release, that rights
and
claims under the Age Discrimination in Employment Act of 1967, as amended, are
among
the rights and claims against the Released Parties he is releasing, and that he
understands
that he is not releasing any rights or claims arising after the Effective Date.

     c. Executive further agrees never to sue the Released Parties or cause the
Released
Parties to be sued regarding any matter within the scope of the above release.
If Executive
violates this release by suing the Released Parties or causing the Released
Parties to be sued,
Executive agrees to pay all costs and expenses of defending against the suit
incurred by the
Released Parties, including reasonable attorneys’  fees except to the
extent that paying such
costs and expenses is prohibited by law or would result in the invalidation of
the
foregoing release.

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     d. “Released Parties” for purposes of this Agreement are Block, all current
and former parents, subsidiaries, related companies, partnerships or joint
ventures, and, with respect to each of them, their predecessors and successors;
and, with respect to each such entity, all of its past, present, and future
employees, officers, directors, stockholders, owners, representatives, assigns,
attorneys, agents, insurers, employee benefit programs (and the trustees,
administrators, fiduciaries and insurers of such programs), and any other person
acting by, through, under or in concert with any of the persons or entities listed
in this paragraph, and their successors.

     11. Breach by Executive. Block’s obligations to Executive after the Effective
Date are contingent on his obligations under this Agreement. Any material breach of this
Agreement by Executive will result in the immediate cancellation of Block’s obligations
under this Agreement and of any benefits that have been granted to Executive by the terms
of this Agreement except to the extent that such cancellation is prohibited by law or
would result in the invalidation of the foregoing release.

     12. Executive Availability. Executive agrees to make himself reasonably
available to Block and/or Affiliates to respond to requests for
information pertaining to
or relating to Block and/or its Affiliates, agents, officers, directors, or employees.
Executive will cooperate fully with Block and/or Affiliates in connection with any and all
existing or future litigation or investigations brought by or against Block or any of its
Affiliates, agents, officers, directors or employees, whether administrative, civil or
criminal in nature, in which and to the extent Block and/or Affiliates deem Executive’s
cooperation necessary. Block will reimburse Executive for reasonable out-of pocket
expenses incurred as a result of such cooperation. Nothing herein shall prevent Executive
from communicating with or participating in any government investigation.

     13. Non-Disparagement. Executive agrees, subject to any obligations
he may have under applicable law, that he will not make or cause to be made any statements
that disparage, are inimical to, or damage the reputation of Block or any of its
Affiliates, agents, officers, directors, or employees. In the event such a communication
is made to anyone, including but not limited to the media, public interest groups and
publishing companies, it will be considered a material breach of the terms of this
Agreement and Executive will be required to reimburse Block for any and all compensation
and benefits (other than those already vested) paid under the terms of this Agreement and
all commitments to make additional payments to Executive will be null and void. Block
likewise agrees, subject to any obligations that it may have under applicable law, that
the following individuals during their Block employment will not make or cause to be made
any statements that disparage, are inimical to, or damage the reputation of Executive:
Russ Smyth, Becky Shulman, Tammy Serati, Sabrina Wiewel, Phil Mazzini, and Ken Treat.

     14. Return of Company Property. Executive agrees that as of the Separation
Date he
will have returned to Block any and all Block and/or Affiliates’ property or equipment
in his
possession, including but not limited to, any computer, printer, fax, phone, credit
card, badge,
Blackberry, and telephone card assigned to him.

     15. Severability
of Provisions. In the event that any provision in
this Agreement is
determined to be legally invalid or unenforceable by any court of competent
jurisdiction, and

5

 

cannot be modified to be enforceable, the affected provision shall be stricken from the
Agreement, and the remaining terms of the Agreement and its enforceability shall remain
unaffected.

     16. Entire Agreement. This Agreement sets forth the entire
agreement and
understanding between the parties and may be changed only with the written consent of
both
parties and only if both parties make express reference to this
Agreement. The
parties have not
relied on any oral statements that are not included in this Agreement. This Agreement
supersedes
all prior agreements and understandings concerning the subject matter of this
Agreement. Any
modifications to this Agreement must be in writing and signed by Executive and the
Block CEO.
Failure of Block to insist upon strict compliance with any of the terms, covenants, or
conditions
of this Agreement will not be deemed a waiver of such terms, covenants, or conditions.

     17. Applicable Law. This Agreement shall be construed, interpreted, and
applied in
accordance with the law of the State of Missouri.

     18. Successors
and Assigns. This Agreement and each of its provisions will be
binding upon Executive and his executors, successors, and administrators, and will
inure to the
benefit of Block and its successors and assigns. Executive may not assign or transfer
to others
the obligation to perform his duties hereunder.

     19. Specific Performance by Executive. The parties acknowledge that money
damages alone will not adequately compensate Block for Executive breach of any of the
covenants and agreements herein and, therefore, in the event of the breach or
threatened breach
of any such covenant or agreement by Executive, in addition to all other remedies
available at
law, in equity or otherwise, Block will be entitled to injunctive relief compelling
Executive’s
specific performance of (or other compliance with) the terms hereof.

     20. Counterparts. This Agreement may be signed in counterparts and delivered
by
facsimile transmission confirmed promptly thereafter by actual delivery
of executed
counterparts.

     21. Supplemental Release. Executive agrees that within 21 days after the
Separation
Date, he will execute an additional release covering the period from the Effective
Date to the
Separation Date. Executive agrees that all Block covenants that relate to its
obligations beyond
the last day of employment will be contingent on Executive’s execution of the
supplemental
release. The supplemental release will be in the form of Exhibit E to this Agreement.

     22. 409A Representations. Because the requirements of Section 409A of
the Internal
Revenue Code are still being developed and interpreted by government agencies, certain
issues
under Section 409A remain unclear as of the Effective Date. Block has made a good
faith effort
to comply with current guidance under Section 409A. Notwithstanding the foregoing or
any
provision in this Agreement to the contrary, Block does not warrant or promise
compliance with
Section 409A, and Executive understands and agrees that he shall not have any claim
against
Block or any Affiliate for any good faith effort taken by them to comply with Section
409A.

EXECUTIVE:

6

 

	 	 	 	 	 
	 	 	 
	                /s/ Timothy C. Gokey
 	 	 
	Timothy C. Gokey 	 	 

Dated: 7-26-09

Accepted and Agreed:

	 	 	 	 	 
	HRB Tax Group, Inc.

 	 	 
	By:  	/s/ Russell P. Smyth
 	 	 
	 	Russell P. Smyth

 President and Director 	 	 

Dated: 7/28/09

7

 

EXHIBIT A

RESIGNATION

To Whom It May Concern:

Effective May 8, 2009, I hereby resign from the following director and officer positions:

	 	 	 
	Business Entity	 	Title
	Financial Stop Inc.

	 	Director
	H&R Block (Nova Scotia), Incorporated

	 	Director
	H&R Block Canada Financial Services, Inc.

	 	Director
	H&R Block Canada Financial Services, Inc.

	 	Chairman of the Board
	H&R Block Canada, Inc.

	 	Director
	H&R Block Canada, Inc.

	 	President
	H&R Block Eastern Enterprises, Inc.

	 	Director
	H&R Block Eastern Enterprises, Inc.

	 	President
	H&R Block Enterprises LLC

	 	President
	H&R Block Global Solutions (Hong Kong) Limited

	 	Director
	H&R Block Limited

	 	Director
	H&R Block Tax and Business Services, Inc.

	 	Director
	H&R Block Tax Services LLC

	 	President
	HRB Tax Group, Inc.

	 	Director
	HRB Tax Group, Inc.

	 	President
	Vantive Partners LLC

	 	President

	 	 	 	 	 
	 	 	 
	Dated: 7-26-09 	/s/ Timothy C. Gokey
 	 
	 	Timothy C. Gokey 	 
	 	 	 

A-1

 

	 	 	 	 	 

EXHIBIT B

STOCK OPTION SUMMARY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Grant	 	Shares	 	 	 	 
	Grant Date	 	Price	 	Granted	 	Vested	 	Accelerated
	6/28/2004
	 	$	24.235	 	 	 	100,000	 	 	 	100,000	 	 	 	0	 
	6/30/2005
	 	$	29.175	 	 	 	100,000	 	 	 	100,000	 	 	 	0	 
	6/30/2006
	 	$	23.86	 	 	 	125,000	 	 	 	125,000	 	 	 	0	 
	6/30/2007
	 	$	23.37	 	 	 	125,000	 	 	 	83,333	 	 	 	41,667	 
	7/3/2008
	 	$	21.81	 	 	 	173,522	 	 	 	57,840	 	 	 	57,840	*
	10/1/2008
	 	$	23.76	 	 	 	179,855	 	 	 	0	 	 	 	179,855	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	 	 	 	 	 	 	 	 	466,173	 	 	 	279,362	 

 

			
	*	 	Executive forfeits 57,842 stock options from the July 3, 2008 grant.

A-2

 

EXHIBIT C

RESTRICTED SHARES SUMMARY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Grant	 	Shares	 	 	 	 
	Grant Date	 	Price	 	Granted	 	Vested	 	Accelerated
	7/3/2008
	 	$	21.81	 	 	 	290	 	 	 	96	 	 	 	97	*
	10/1/2008
	 	$	23.76	 	 	 	10,520	 	 	 	0	 	 	 	10,520	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	 	 	 	 	 	 	 	 	96	 	 	 	10,617	 

 

			
	*	 	Executive forfeits 97 shares from the July 3, 2008 grant.

A-3

 

EXHIBIT D

PERFORMANCE SHARES SUMMARY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Grant	 	Shares	 	 	 	 
	Grant Date	 	Price	 	Granted	 	Vested	 	Accelerated
	6/30/2006
	 	$	0.00	 	 	 	15,000	 	 	 	 	 	 	 	*	 
	6/30/2007
	 	$	0.00	 	 	 	15,000	 	 	 	 	 	 	 	*	 
	7/3/2008
	 	$	0.00	 	 	 	9,834	 	 	 	 	 	 	 	*	 

 

			
	*	 	The number of shares actually awarded will be determined at the end of the applicable
3-year performance cycle based upon actual performance results.

Award will be prorated based upon the number of days worked by Executive during the
applicable three year performance cycle.

A-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00162-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00162-of-00352.parquet"}]]