Document:

Unassociated Document

    
      STOCK
        OPTION AGREEMENT

      

      THIS
        STOCK OPTION AGREEMENT
        ("Agreement"),
        dated
        as of ____________, 2005 ("Grant
        Date"),
        is
        entered into between NovaMed, Inc., a Delaware corporation (the "Company"),
        and
        _________________, an employee of _________________, a wholly owned subsidiary
        of the Company ("Participant").

      

      RECITALS:

      

      WHEREAS,
        the
        Company desires to afford the Participant an option ("Option")
        to
        purchase shares of Common Stock, $0.01 par value, in the Company ("Shares")
        as
        provided in this Agreement, effective as of the Grant Date;

      

      WHEREAS,
        the
        Company has adopted the NovaMed, Inc. 2005 Stock Incentive Plan 
        (the
        "Plan")
        and
        desires that the Options granted to the Participant under this Agreement
        be
        governed by the terms and conditions of the Plan; and

      

      WHEREAS,
        the
        Committee has duly made all determinations necessary or appropriate to the
        grants hereunder.

      

      NOW,
        THEREFORE,
        in
        consideration of the premises and the mutual covenants set forth in this
        Agreement and for other good and valuable consideration, the receipt of which
        is
        hereby acknowledged, the parties agree as follows:

      

      1. Definitions.
        Any
        capitalized term used in this Agreement that is not defined in this Agreement
        will have the same meaning as that given to it in the Plan. As used in this
        Agreement:

      

      "Cause"
        shall
        have the meaning set forth for such term in any written employment agreement
        with Participant, or if no such term appears in the employment agreement,
        or if
        no employment agreement exists, as provided in the Plan. 

      

      "Vested
        Option"
        means
        an Option which has become vested in accordance with Sections
        2(c)
        and
        2(d)
        hereof.

      

      2. Grant
        of Option, Option Price and Term.

      

      (a) 
        The
        Company hereby grants to Participant, as a matter of separate agreement and
        not
        in lieu of salary or any other compensation for services, Options to purchase
        ______________ (___________) Shares of the Company on the terms and conditions
        set forth in this Agreement.

      

      (b) For
        each
        Share purchased, Participant will pay to the Company an Option Price of
        $_________ per Share. Accordingly, the aggregate Option Price to exercise
        all of
        the Options is $_______.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (c) Except
        as
        provided in Section
        2(d),
        until
        the Participant incurs a Termination of Employment, (i) one-eighth (1/8)
        of the
        Options will become Vested Options on the date six months after the Grant
        Date and
        (ii)
        an additional one-forty-eighth (1/48th) of the Options will become Vested
        Options on the last day of each month thereafter. From the date of a Termination
        of Employment of the Participant for any reason, no further Options shall
        become
        Vested Options. 

      

      (d) Notwithstanding
        Section
        2(c),
        all of
        the Options shall become Vested Options immediately upon a Change in Control
        if
        the Participant is employed by the Company at the time of such Change in
        Control. 

      

      (e) Subject
        to Section
        3,
        Vested
        Options shall be exercisable at any time during the Option Period beginning
        on
        the vesting date of such Options and ending on the ten-year anniversary of
        the
        Grant Date. Options that are not Vested Options may not be exercised in any
        circumstances.

      

      (f) The
        Options granted hereunder are designated as Nonqualified Stock
        Options.

      

      3. Cancellation
        of Options.
        All
        Vested Options will be fully exercisable during the Option Period unless
        earlier
        cancelled as provided below:

      

      (a) If
        the
        Participant has an involuntary (on the part of Participant) Termination of
        Employment for reasons other than Cause, Disability or death (e.g.,
        employee is terminated without Cause), all Vested Options shall terminate
        and be
        cancelled on the earlier of (i) ninety (90) days after such Termination
        of
        Employment or (ii) the expiration of the remaining Option
        Period.

      

      (b) If
        the
        Termination of Employment is on account of the Disability or death of the
        Participant, all Vested Options will terminate and be cancelled on the earlier
        of (i) the one-year anniversary of the occurrence of the Disability
        or
        death or (ii) the expiration of the remaining Option Period.

       

      (c) If
        Participant has a Termination of Employment for Cause or a Voluntary Termination
        of Employment, all Vested Options will automatically terminate and be cancelled
        on the date of such Termination of Employment.

      

      (d) All
        Options which are not Vested Options will terminate and be cancelled on the
        date
        of Participant's Termination of Employment for any reason. 

      

      (e) No
        Options, whether or not vested, may be exercised after cancellation or after
        expiration of the Option Period.

      

      (f) If,
        at
        the time Participant has a Termination of Employment other than for Cause
        or
        Voluntary Termination of Employment, Participant is subject to Section 16
        of the
        Exchange Act, any time period provided for in this Section
        3
        will be
        suspended or delayed during the period the Participant would be subject to
        liability for engaging in "short-swing" transactions under Section 16 of
        the
        Exchange Act, but such suspension or delay will not extend such time period
        more
        than six months and one day.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4. Manner
        of Exercise.
        Vested
        Options will be exercisable during the Participant's lifetime only by
        Participant (or the Participant's Representative), and after Participant's
        death
        only by a Representative. Vested Options may be exercised only by the delivery
        to the Company of a properly completed written exercise notice, in form
        satisfactory to the Committee, which notice must specify the number of Shares
        to
        be purchased and the aggregate Option Price for such Shares, together with
        payment in full of such aggregate Option Price. No Shares will be issued
        until
        full payment therefor has been made and the Participant has executed any
        stockholder agreement or any other agreements in effect at such time which
        the
        Company may require its shareholders to execute. Payment may be made
        only:

      

      
        	
              	(i)	
                in
                  cash or by check;

              

      

      

      
        	 	
                (ii)

              	
                by
                  the transfer to the Company of Shares already owned by the Participant
                  for
                  a period of at least six (6) months prior to such
                  transfer;

              

      

      

      
        	 	
                (iii)

              	
                to
                  the extent permitted by the Sarbanes-Oxley Act of 2002 and other
                  applicable laws, by the execution and delivery of a full recourse
                  promissory note or other evidence of indebtedness (and any security
                  agreement thereunder) satisfactory to, and in the discretion of,
                  the
                  Committee; 

              

      

      
        
          	 	 	 

        

        
          	 	
                  (iv)

                	
                  by
                    the delivery of cash or the extension of credit by a broker-dealer
                    to whom
                    the Participant has submitted a notice of exercise or otherwise
                    indicated
                    an intent to exercise an Option (in accordance with Part 220,
                    Chapter II,
                    Title 12 of the Code of Federal Regulations, so-called "cashless
                    exercise); or

                

        

      

      

      
        	 	
                (v)

              	
                in
                  any combination of (i), (ii), (iii) or
                  (iv).

              

      

      

      If
        any
        part of the payment of the Option Price is made through the transfer of Shares,
        such Shares will be valued by using their Fair Market Value as of their date
        of
        transfer.

      

      Vested
        Options may not be exercised unless there has been compliance with all the
        preceding provisions of this Section
        4
        and, for
        all purposes of this Agreement, the date of the exercise will be the date
        upon
        which there is compliance with all such requirements; provided,
        however,
        that
        the Participant's rights hereunder will not be adversely affected by the
        Participant's failure to so comply due solely to an act or omission of the
        Company.

       

      5. Payment
        of Withholding Taxes.
        If the
        Company is obligated to withhold an amount on account of any tax imposed
        as a
        result of the exercise of the Option, the Participant will be required
        to pay such amount to the Company, as provided in the Plan. 

      

      6. Plan.
        Participant hereby acknowledges receipt of a copy of the Plan. Notwithstanding
        any other provision of this Agreement, the Options are granted pursuant to
        the
        Plan, as in effect on the date of the Agreement, and are subject to the terms
        and conditions of the Plan, as the same may be amended from time to time;
        provided, however, that no amendment to either the Plan or this Agreement
        will
        deprive the Participant, without the Participant's consent, of any Options
        or of
        any of Participant's rights under this Agreement, except an amendment which
        is
        permitted under the Plan for purposes other than reducing the Participant's
        rights hereunder. The interpretation and construction by the Committee of
        the
        Plan, this Agreement, the Options, and such rules and regulations as may
        be
        adopted by the Committee for the purpose of administering the Plan, will
        be
        final and binding upon the Participant. Until the Options expire, terminate,
        are
        cancelled, or are exercised in full, the Company will, upon written request
        therefor, send a copy of the Plan, in its then current form, to the Participant
        or any other person or entity then entitled to exercise the
        Options.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7. No
        Shareholder Rights.
        Until
        the Options have been duly exercised to purchase Shares and such Shares have
        been officially recorded as issued on the Company's official records, no
        person
        will be entitled to vote or receive distributions or will be deemed for any
        purpose the holder of any Shares, and adjustments for distributions or otherwise
        will be made only if the record date therefor is subsequent to the date such
        Shares are recorded and after the date of exercise and without duplication
        of
        any adjustment. 

      

      8. No
        Employment Rights.
        No
        provision of this Agreement or of the Options will give Participant any right
        to
        continue in the employ of the Company or any of its Affiliates, create
        any
        inference as to the length of employment of the Participant, affect the right
        of
        the Company or its Affiliates to Terminate the Employment of the Participant,
        with or without Cause, or give Participant any right to participate in any
        employee welfare or benefit plan or other program (other than the Plan) of
        the
        Company or any of its Affiliates.

      

      9. No
        Disclosure Rights.
        The
        Company will have no duty or obligation to affirmatively disclose to the
        Participant or a Representative, and the Participant or a Representative
        will
        have no right to be advised of, any material information regarding the Company
        or an Affiliate at any time prior to, upon, or in connection with the exercise
        of a Vested Option or the Company's purchase of Shares in accordance with
        the
        terms of this Agreement and the Plan. 

      

      10. Investment
        Representation and Agreement.
        If
        prior to the issuance of any Shares upon the exercise of any Options, in
        the
        opinion of counsel for the Company, a particular representation by the
        Participant is required under the Securities Act or any other applicable
        federal
        or state law, or any regulation or rule of any governmental agency, the Company
        may require the Participant to make such investment representations and such
        other representations as the Company reasonably may determine to be necessary
        which representations shall be evidenced in an agreement in such form as
        the
        Company may specify.

      

      11. Changes
        in Company's Capital or Organizational Structure.
        The
        existence of the Options shall not affect in any way the right or authority
        of
        the Company or its shareholders to make or authorize any or all adjustments,
        recapitalizations, reorganizations or other changes in the Company's capital
        structure or its business, or any merger or consolidation of the Company,
        or any
        issue of preferred Shares ahead of or affecting the Shares or the rights
        thereof, or the dissolution or liquidation of the Company, or any sale or
        transfer of all or any part of its assets or business, or any other act or
        proceeding, whether of a similar character or otherwise.

      

      12. Delays.
        In
        accordance with the terms of the Plan, the Company shall have the right to
        suspend or delay any time period described in this Agreement or the Plan
        if the
        Committee shall determine that the action may constitute a violation of any
        law
        or result in any liability under any law to the Company, an Affiliate or
        a
        shareholder in the Company until such time as the action required or permitted
        will not constitute a violation of law or result in liability to the Company,
        an
        Affiliate or a shareholder of the Company. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      13. Governing
        Law; Construction.
        This
        Agreement and the Options will be governed by, and construed and enforced
        in
        accordance with, the laws of the State of Illinois without regard to conflicts
        of law principles. Common nouns and pronouns shall be deemed to refer to
        the
        masculine, feminine, neuter, singular and plural, as the context so
        requires.

      

      14. Entire
        Agreement.
        This
        Agreement, together with the Plan and any other agreements incorporated herein
        by reference, constitutes the entire obligation of the parties with respect
        to
        the subject matter of this Agreement and supersedes any prior written or
        oral
        expressions of intent or understanding with respect to such subject
        matter.

      

      15. Amendment.
        Any
        amendment to this Agreement must be in writing and signed by the
        Company.

      

      16. Waiver;
        Cumulative Rights.
        The
        failure or delay of either party to require performance by the other party
        of
        any provision of this Agreement will not affect its right to require performance
        of such provision unless and until such performance has been waived in writing.
        Each right under this Agreement is cumulative and may be exercised in part
        or in
        whole from time to time.

      

      17. Counterparts.
        This
        Agreement may be signed in two counterparts, each of which will be an original,
        but both of which will constitute one and the same instrument.

      

      18. Notices.
        Any
        notices required or permitted under this Agreement must be in writing and
        may be
        delivered personally or by mail, postage prepaid, addressed to (a) the Company,
        980 North Michigan Avenue, Suite 1620, Chicago, Illinois 60611, Attention:
        General Counsel and (b) the Participant at the Participant's address as shown
        on
        the Company's payroll records, or to such other address as the Participant,
        by
        notice to the Company, may designate in writing from time to time.

      

      19. Headings.
        The
        headings in this Agreement are for reference purposes only and will not affect
        the meaning or interpretation of this Agreement.

      

      20. Severability.
        If any
        provision of this Agreement is for any reason held to be invalid or
        unenforceable, such invalidity or unenforceability will not affect any other
        provision of this Agreement, and this Agreement will be construed as if such
        invalid or unenforceable provision were omitted.

      

      21. No
        Strict Construction.
        The
        language used in this Agreement will be deemed to be the language chosen
        by the
        parties to express their mutual intent, and no rule of strict construction
        will
        be applied against any party.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      22. Remedies.
        Each of
        the parties to this Agreement will be entitled to enforce its rights under
        this
        Agreement specifically, to recover damages by reason of any breach of any
        provision of this Agreement, and to exercise all other rights existing in
        its
        favor. The Participant agrees and acknowledges that money damages will not
        be an
        adequate remedy for any breach of the provisions of this Agreement and that
        the
        Company will be entitled to specific performance and injunctive relief in
        order
        to enforce or prevent any violations of the provisions of this
        Agreement.

      

      23. Successors
        and Assigns.
        This
        Agreement will inure to the benefit of and be binding upon each successor
        and
        assign of the Company. All obligations imposed upon the Participant or a
        Representative, and all rights granted to the Company under this Agreement,
        will
        be binding upon the Participant's or the Representative's heirs, legal
        representatives and successors.

      

      24. Tax
        Consequences. The
        Participant agrees to undertake to determine and be responsible for any and
        all
        tax consequences to the Participant with respect to the Options and the
        Shares.

      

      *
        * * *

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

      

      COMPANY:

      

      NOVAMED,
        INC.

      

      

      By: _________________________________

                            [Name]

                            [Title]

      

      PARTICIPANT:

      

      

      _________________________________________

      [NAME]Unassociated Document

    

      FIRST
        AMENDMENT TO

      EMPLOYMENT
        AGREEMENT

       

      THIS
        FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (the “Amendment”)
        is made
        and entered into as of July 15, 2005, by and between NovaMed Management
        Services, LLC (f/k/a NovaMed Eyecare Services, LLC), a Delaware limited
        liability company (the “Company”),
        and
        Scott T. Macomber (“Employee”).

      

      RECITALS

      

      A.  The
        Company and Employee originally entered into an Employment Agreement dated
        October 16, 2001 (the
        “Existing
        Agreement”).

      

      B.  In
        consideration for the continued employment of Employee, the parties hereto
        desire to amend the terms and conditions of the Existing Agreement, all on
        the
        terms and conditions set forth herein.

      

      NOW,
        THEREFORE,
        in
        consideration of the premises, the mutual covenants of the parties hereinafter
        set forth and other good and valuable consideration, the receipt and sufficiency
        of which are hereby acknowledged, the parties hereto agree as
        follows:

      

      TERMS

      

      1. The
        first
        sentence of Section 2.1 shall be deleted in its entirety and replaced with
        the
        following:

      

      “During
        the Employment Period, the Company will pay Employee a base salary at the
        rate
        of $258,000 per annum (which annual base salary, as increased from time to
        time
        in accordance with this Section
        2.1,
        shall
        be referred to herein as the “Base
        Salary”),
        payable in regular installments in accordance with the Company's general
        payroll
        practices for salaried employees.”

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2. Section
        3.3(b) of the Existing Agreement shall be deleted in its entirety and replaced
        with the following:

      

      (b) Except
        as
        described in Section
        3.4
        hereof,
        (i) if
        the
        Employment Period is terminated by the Company without Cause (including a
        termination resulting from the Company’s election not to renew this Agreement
        under Section
        1.1
        hereof) or
        (ii)
        if the Employment Period is terminated by Employee for Locale Reason: (A)
        Employee shall be entitled to receive all items described in Section
        3.3(a)
        above;
        and (B) subject to the conditions hereinafter set forth, Employee shall be
        entitled to receive as severance compensation, the following (collectively,
        the
“Severance
        Pay”):
        (1)
        Employee’s then-current monthly Base Salary hereunder for a period of fifteen
        (15) months (such time period to be hereinafter referred to as the “Severance
        Period” (unless
        modified by Section
        3.4)),
        payable in regular installments in accordance with the Company’s general payroll
        practices for salaried employees; (2) the
        bonus, if any, that Employee would have been entitled under Section
        2.2
        hereof
        at the end of the year during which the termination without Cause or termination
        for Locale Reason occurs had such termination not occurred, which bonus shall
        be
        (a) prorated based on the amount of time that Employee was employed by the
        Company during the year (not including the Severance Period) for which such
        bonus is being calculated, and (b) determined and paid to Employee
        contemporaneously with the determination and payment of bonuses for comparable
        employees of the Company; and (3) continuation of the welfare benefits described
        in Section
        2.3(a)
        for the
        Severance Period, to the extent permissible under the terms of the relevant
        benefit plans. The bonus described in subclause (2) above
        shall not be the “Target Bonus” (as defined in Section
        3.4(b)),
        but
        rather the bonus that would have been payable pursuant to Section
        2.2
        hereof,
        as modified by this Section
        3.3(b).
        Employee’s right to receive Severance Pay hereunder is conditioned upon: (x)
        Employee executing and delivering to the Company a written separation agreement
        and general release of all claims, in form and substance acceptable to the
        Company, which shall among other things, contain a general release by Employee
        of all claims arising out of his employment and termination of employment
        by the
        Company; and (y) Employee’s compliance with all of his obligations which survive
        termination of this Agreement, including without limitation those described
        in
Article
        IV
        below.
        The Severance Pay is intended to be in lieu of all other payments to which
        Employee might otherwise be entitled in respect of his termination without
        Cause
        or termination for Locale Reason. The Company shall have no further obligations
        hereunder or otherwise with respect to Employee’s employment from and after the
        date of termination of employment with the Company for any reason (the
“Termination
        Date”),
        and
        the Company shall continue to have all other rights available hereunder
        (including without limitation, all rights hereunder (including without
        limitation, all rights under Article
        IV
        hereof)
        at law or in equity. As used herein, “Locale
        Reason”
        shall
        mean without the written consent of Employee a relocation by the Company
        of
        Employee’s primary employment location to a location which is more than 50 miles
        from 980 North Michigan Avenue, Suite 1620, Chicago, Illinois. 

      

      3. Section
        3.4(b) of the Existing Agreement shall be deleted in its entirety and replaced
        with the following:

      

      (b) If
        the
        Employment Period is terminated following a Change in Control (i) by the
        Company
        without Cause (including a termination resulting from the Company’s election not
        to renew this Agreement under Section
        1.1 hereof)
        or (ii) by Employee for Good Reason, then subject to the conditions described
        in
Section
        3.4(d)
        below,
        Employee shall be entitled to receive the following as Severance Pay in lieu
        of
        any amounts payable under Section
        3.3:
        (A) one
        hundred fifty percent (150%) times
        the
        sum of Employee’s Base Salary and Target Bonus, payable within 30 days following
        the Termination Date and (B) continuation of the welfare benefits described
        in
Section
        2.3(a)
        for
        eighteen (18) months
        (the “Severance
        Period”)
        to the
        extent permissible under the terms of the relevant benefit plans. For purposes
        of this Agreement, “Target
        Bonus”
        shall
        mean the greater of (x) an amount equal to the bonus that would have been
        payable to Employee following the calendar year in which the Termination
        Date
        occurs pursuant to the Company’s Executive Compensation Plan (the “Executive
        Plan”),
        based
        on attaining one hundred percent (100%) of Employee’s applicable target measure
        established pursuant to the Executive Plan or (y) thirty-five
        percent (35%) of Base Salary. The Target Bonus shall not be adjusted based
        on
        whether the Company anticipates attaining such target measure as of the
        Termination Date, whether the target measure is ultimately attained or whether
        any bonus amounts payable under the Executive Plan would have ultimately
        been
        approved by either the Compensation Committee or the Board.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4. Section
        3.4(c) of the Existing Agreement shall be deleted in its entirety and replaced
        with the following:

      

      (c) If
        the
        Employment Period is terminated following a Change in Control by Employee
        for
        any reason or no reason during the Window Period, then subject to the conditions
        described in Section
        3.4(d)
        below,
        Employee shall be entitled to receive the following as Severance Pay in lieu
        of
        any amounts payable under Section
        3.3:
        (i)
        fifty percent (50%) of the
        product of: (x) one hundred fifty percent (150%); multiplied by (y) the sum
        of
        Employee’s Base Salary and Target Bonus, payable within thirty (30) days
        following the Termination Date and (ii) continuation of the welfare benefits
        described in Section
        2.3(a)
        for nine
        (9) months (the “Severance
        Period”)
        to the
        extent permissible under the terms of the relevant benefit plans.

      

      5. All
        other
        provisions of the Existing Agreement not expressly amended hereby shall continue
        to survive in accordance with their respective terms and
        conditions.

      

      [Signature
        Page to Follow]

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        parties have executed this Agreement on the day and year first above
        written.

       

      
        
          
            	 	 	 
	 	COMPANY: 
	 	 
	 	NovaMed
                    Management Services, LLC,
                    a
                    Delaware limited liability company
	 
 	 
 	 
 
	 	By:  	/s/ E.
                    Michele Vickery
	 	
                    
E.
                    Michele Vickery
	 	Executive
                    Vice President Operations

          

        

        
          	 	 	 
	 	 
	 	EMPLOYEE:
	 	 
	 	 
	 
 	 
 	 
 
	 	By:  	/s/
                  Scott T. Macomber
	 	
                  
Scott
                  T. Macomber

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