Document:

Exhibit 10.9

Exhibit 10.9

EMPLOYMENT AGREEMENT

This
Employment Agreement, effective as of November 4, 2009 (the “Agreement”) is made by and
between HealthSport, Inc., a Delaware corporation (the “Company”), and Thomas Beckett
(“Executive”). For purposes of this Agreement, the term “Company” refers jointly and severally to
HealthSport, Inc., InnoZen, Inc., its subsidiary as well as its affiliates, predecessors,
successors, subsidiaries, or other related companies.

BACKGROUND

The Company desires to employ the Executive as the Company’s Chief Operating Officer, General
Counsel and Secretary, and the Executive desires to accept employment with the Company on the terms
and conditions set forth below.

TERMS

1. Employment.

a. The Executive agrees to accept employment with the Company and to render the services
specified in this Agreement subject to the terms and conditions of this Agreement. All
compensation paid to the Executive by the Company, or any parent, affiliate, subsidiary, or other
related company, and all benefits and perquisites received by the Executive from the Company, or
any parent, affiliate, subsidiary, or other related company, will be aggregated in determining
whether the Executive has received the compensation and benefits provided for herein.

b. Term. The term of this Agreement will be two (2) calendar years unless the
Agreement is terminated earlier as provided in this Agreement (the “Term”).

2. Duties.

a. General Duties. The Executive will perform all duties and responsibilities
assigned by the Chief Executive Officer (“CEO”) or the CEO’s designated representative and the
Company’s Board of Directors (the “Board”).

b. Full-Time Employment. During the Term of this Agreement, and excluding any periods
of vacation, family or sick leave, or holidays to which the Executive is entitled hereunder, the
Executive will devote full business time and energy to the business affairs and interests of the
Company and will use reasonable commercial efforts and ability to promote the interests of the
Company. The Executive will diligently endeavor to promote the business affairs and interests of
the Company and perform services contemplated by this Agreement in accordance with the policies
established by the Company from time to time.

c. Certain Permissible Activities. If expressly approved in advance by the Company in
writing, the Executive may serve as a director of another non-competing company. The Executive may
also (i) make and manage personal business investments of the Executive’s choice, (ii) teach at
educational institutions and deliver lectures, and (iii) serve in any capacity with any civic,
educational or charitable organization, or any governmental entity or trade
association without seeking or obtaining approval by the Company so long as such activities
and service do not materially interfere or conflict with the performance of the Executive’s duties
under this Agreement.

 

 

 

3. Compensation and Expenses.

a. Base Salary. In consideration for the services rendered by the Executive under
this Agreement, the Company will pay the Executive a base salary in the total gross, annual amount
of $210,000 (the “Base Salary”), payable in equal installments on the 15th and
30th of every month. The Company will withhold from the Base Salary all applicable
state and federal withholdings. The Board may, in its discretion, increase the Base Salary paid to
the Executive during the term of this Agreement, and in such event, this increased Base Salary
amount will be deemed the annual amount for the purposes of the Agreement and will commence on the
date determined by the Board.

b. Bonus. The Executive shall be eligible to receive cash bonuses (each, a “Bonus”)
based on his performance and the performance of the Company in an amount equal to sixty percent
(60%) of the Base Salary each year upon meeting 100% of the performance targets. The performance
targets shall be determined in the sole discretion of the Board shall be based upon the operating
budget for the Company.

c. Expenses. The Company will reimburse, or advance funds to, the Executive for all
reasonable, ordinary, and necessary travel or entertainment expenses incurred by the Executive
during the Term of this Agreement in accordance with the Company’s then-current policy.

4. Benefits.

a. Paid Time Off. The Executive shall be entitled to take paid time off at such times
as the Executive may select and the affairs of the Company may permit, provided however, that the
Executive shall not be entitled to accrue any paid time off unless specifically approved by the
Board.

b. Equity Award. The Company shall grant 1,500,000 shares (the “Shares”) of the
Company’s restricted common stock under the Company’s 2009 Equity Incentive Plan (the “Plan”) and
pursuant to the Stock Award Agreement in the form attached hereto as Exhibit A. Subject to
the provisions of the Plan and such Stock Award Agreement, the Shares shall vest as to 20% on
December 1, 2009, 20% on February 15, 2010, 20% on May 15, 2010, and 40% on August 15, 2010.

c. Executive Benefit Programs. The Executive will be eligible to participate in any
equity incentive plan, stock purchase plan, pension or retirement plan, and insurance other benefit
plan that may be made generally available by the Company for its senior executives, including
programs of life, disability, basic medical and dental insurance, and supplemental medical and
dental insurance. The Executive may also choose, in his sole discretion, to continue his current
coverage under a non-Company affiliated health insurance plan, and in such event, the Company shall
reimburse the Executive for the costs of such plan, provided that, such reimbursement costs
are equivalent to the total costs the Company would incur in providing
coverage to the Executive under a health insurance plan offered by the Company. Other than as
stated herein, this Agreement does not obligate the Company to create or institute any such
benefits or plans.

 

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Notwithstanding any provision of this Agreement to the contrary, the Company will not be
obligated to provide the Executive with any of the benefits contained in this Section 4(b) if the
Executive, for any reason, is or becomes uninsurable with respect to coverage relating to any such
benefit(s) or otherwise fails to meet the eligibility requirements for the individual plans.

5. Termination.

a. Termination for Cause. The Company may terminate the Executive’s employment
pursuant to this Agreement at any time for Cause as defined herein and the termination will become
effective immediately at the time the Company provides the required written notice to the
Executive. If the Company decides to terminate the Executive’s employment under this Agreement for
Cause, the Company will have no further obligations to make any payments to the Executive under
this Agreement, except that the Executive will receive any unpaid accrued Base Salary through the
date of termination of employment within thirty (30) days of such termination. For purposes of
this Agreement, the term “Cause” will mean:

i. the Executive’s conviction of a felony;

ii. any act of theft, dishonesty, or insubordination by the Executive regardless of whether
the Executive’s theft, dishonesty, or insubordination affects the Company or its business in any
way;

iii. the Executive’s conviction of misappropriating assets or otherwise defrauding the Company
or any of its parent, subsidiaries or affiliates;

iv. a material breach by the Executive of any provision of this Agreement, or failure to
follow the written policies of the Company, which is not cured or corrected within thirty (30) days
after receiving written notice of such breach or failure; or

v. the Executive’s failure to follow the specific lawful instructions of the Board within
thirty (30) days after receiving written notice of such instruction.

b. Death or Disability. This Agreement and the Company’s obligations under this
Agreement will terminate upon the death or total disability of the Executive. For purposes of this
Section 5(b), “total disability” means that for a period of six consecutive months in any
twelve-month period the Executive is incapable of substantially fulfilling the duties set forth in
this Agreement because of physical, mental or emotional incapacity resulting from injury, sickness
or disease as determined by an independent physician mutually acceptable to the Company and the
Executive. If the Agreement terminates due to the death or total disability of the Executive, the
Company will pay the Executive or his legal representative any unpaid accrued Base Salary through
the date of termination of employment within fifteen (15) days of such termination (or, if
terminated as a result of a disability, until the date upon which the
disability policy maintained by the Company begins payment of benefits) plus any other
compensation that may be earned and unpaid.

 

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c. Voluntary Termination. The Executive may elect to terminate this Agreement by
delivering written notice to the Company thirty (30) days prior to the date on which termination is
elected. If the Executive voluntarily terminates his employment the Company will have no further
obligations to make payments under this Agreement, except that the Company will pay to the
Executive any unpaid and accrued Base Salary through the date of voluntary termination of
employment with fifteen (15) days of such termination.

d. Termination Without Cause. If the Executive is terminated for any reason other
than by death, disability, for Cause, or due to the Executive’s voluntary resignation of
employment, the Company will have no further obligation to make payments under this Agreement,
except that (i) the Company will pay to the Executive any unpaid and accrued Base Salary
through the date of termination of employment with ten (10) days of such termination, and (ii) if
the Executive is terminated without cause, the Company will pay to the Executive severance in an
amount equal to twelve (12) months of the Executive’s Base Salary in effect at the time of
termination with ten (10) days of such termination.

6. Change of Control.

a. For the purposes of this Agreement, a “Change of Control” will be deemed to have taken
place if, following full execution of this Agreement, any person, including a “group” as defined in
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, becomes the owner or
beneficial owner of more than 50% of the combined voting power of the then outstanding securities
of the Company that may be cast for the election of directors of the Company.

b. The Company and the Executive agree that, if the Executive is in the employ of the Company
on the date on which a Change of Control occurs (the “Change of Control Date”), the Company will
continue to employ the Executive and the Executive will remain in the employ of the Company for the
period commencing on the Change of Control Date and ending on the expiration of the Term, to
exercise such authority and perform such executive duties as are commensurate with the authority
being exercised and duties being performed by the Executive immediately prior to the Change of
Control Date.

c. During the remaining Term after the Change of Control Date, the Company will (i) continue
to honor the terms of this Agreement, including as to Base Salary and other compensation set forth
in Section 3 herein, and (ii) continue employee benefits as set forth in Section 4 herein at levels
in effect on the Change of Control Date (but subject to such reductions as may be required to
maintain such plans in compliance with applicable federal law regulating employee benefits).

d. If within the remaining Term after the Change of Control Date, (i) the Executive’s
employment is terminated by the Company other than for Cause (as defined in Section 5(a)), (ii)
there is a material reduction in the Executive’s compensation or employment related benefits, or
(iii) there is a material diminution in the Executive’s responsibilities or
change in the Executive’s status, working conditions or management responsibilities, including
a relocation of the Company, or a material change in the business objectives or policies, the
Executive will receive, subject to the provisions of subparagraph (e) below, severance in an amount
equal to twelve (12) months of the Executive’s current Base Salary, payable within fifteen (15)
days of such event.

 

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e. In the event that the payments and benefits provided for in this Agreement or otherwise
payable to the Executive (i) constitute “parachute payments” within the meaning of Section 280G of
the Internal Revenue Code of 1986, as amended (the “Code”) and (ii) but for this Section 6(e),
would be subject to the excise tax imposed by Section 4999 of the Code, then the Executive’s
payments and benefits shall be reduced to such extent necessary to result in no portion of such
benefits being subject to excise tax under Section 4999 of the Code. Within thirty (30) days after
the amount of any required reduction in payments and benefits is finally determined, the Company,
in consultation with the Executive, shall determine which amounts to reduce. Any determination
required under this Section 6(e) shall be made in writing by the Company’s independent public
accounting firm as in effect immediately prior to the change of control (the “Accounting Firm”),
whose determination shall be conclusive and binding upon the Executive and the Company for all
purposes. For purposes of making the calculations required by this Section 6(e), the Accounting
Firm may, after taking into account the information provided by the Executive, 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 Executive shall furnish to the Accounting Firm such information and documents as the Accounting
Firm may reasonably request in order to make a determination under this Section 6(e).

7. Conflicting Employment Agreements. The Executive represents that the Executive has
not executed any agreement with any previous person, company, or entity that may impose
restrictions on the Executive’s employment with the Company.

8. Confidential Relationship and Protection of Trade Secrets and Confidential
Information. In the course of the Executive’s employment by the Company, the Executive has had
access to, and will have access to, the Company’s sensitive and valuable trade secrets, proprietary
information, and confidential information concerning the Company, its present and future business
plans, pricing information, development projects, customers and business affairs, which constitute
valuable business assets of the Company, the use, application, or disclosure of any of which will
cause substantial and possible irreparable damage to the business and asset value of the Company.
Accordingly, the Executive accepts and agrees to be bound by the following provisions:

a. For the purposes of this Agreement, the following definitions apply:

i. “Trade Secret” means information, including a formula, a pattern, a compilation, a program,
a device, a method, a technique, or a process that: (A) derives economic value, actual or
potential, from not being generally known to, and not being readily ascertainable by proper means
by, other persons who can obtain economic value from its disclosure or use; and (B) is the subject
of efforts that are reasonable under the circumstances to maintain its secrecy. Trade Secrets also
includes any information or data described above which
the Company obtains from another party and which the Company treats as proprietary or
designates as trade secrets, whether or not owned or developed by the Company.

 

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ii. “Confidential Information” means any data or information, other than Trade Secrets, that
is valuable to the Company and is not generally known by the public. To the extent consistent with
the foregoing, Confidential Information includes, but is not limited to, lists (whether or not in
writing) of the Company’s current or potential customers, lists of and other information about the
Company’s executives and employees, financial information (whether or not in writing) that has not
been released to the public, marketing techniques, price lists, pricing policies, and the Company’s
business methods, contracts and contractual relations with their customers and suppliers and future
business plans. Confidential Information also includes any information or data described above
which the Company obtains from another party and that the Company treats as proprietary or
designates as confidential information whether or not owned or developed by the Company.

b. At any time upon the request of the Company, and in any event upon the termination of
employment, the Executive will deliver to the Company all memoranda, notes, records, drawings,
manuals, files or other documents, and all copies of each, concerning or constituting Confidential
Information or Trade Secrets and any other property or files belonging to the Company that are in
the possession of the Executive, whether made or compiled by the Executive or furnished to or
acquired by the Executive from the Company.

c. In order to protect the Company’s Trade Secrets and Confidential Information, the Executive
agrees that:

i. The Executive shall hold in confidence the Trade Secrets of the Company. Except in the
performance of services for the Company, the Executive shall not at any time use, disclose,
reproduce, distribute, transmit, reverse engineer, decompile, disassemble, or transfer the Trade
Secrets of the Company or any portion thereof.

ii. The Executive shall hold in confidence the Confidential Information of the Company.
Except in the performance of services for the Company, the Executive shall not at any time during
the Executive’s employment with the Company and for a period of three (3) years thereafter use,
disclose, reproduce, distribute, transmit, reverse engineer, decompile, disassemble, or transfer
the Confidential Information of the Company or any portion thereof.

9. Property Rights. For purposes of this Agreement:

a. “Intellectual Property Right” means any form of legal protection for technology, including
common law rights, technical information and know-how, patents, copyrights, trade secret rights,
and trademark and trade dress rights, whether based on federal or state law and whether in the
United States or any foreign jurisdiction.

b. “Proprietary Information” means intellectual property including without limitation
proprietary ideas, designs, discoveries, inventions, improvements, know-how, show-how and business
information relating to the design, implementation, marketing and sale of its products and
services, such as by way of example source and object code computer programs,
artwork, plans, specifications, cost and pricing information, retail and wholesale customer
lists, merchandising information, and books, records and information regarding future business
opportunities.

 

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c. The Executive hereby agrees to fully inform and disclose, in writing, to the Company all
Proprietary Information currently owned by the Executive. The Executive hereby grants to the
Company an irrevocable, nonexclusive, worldwide, royalty free license, including the right to grant
sublicenses to any intellectual property rights that the Executive currently owns.

d. The Executive hereby agrees that the Executive will promptly and fully inform and disclose,
in writing, to the Company all Proprietary Information which the Executive may have during the term
of the Executive’s relationship with Company whether conceived by the Executive alone or with
others and whether or not conceived during regular working hours. The Executive shall document
such Proprietary Information by making timely entries in a notebook describing all work or
activities on such Proprietary Information. All such Proprietary Information (whether or not
documented in the notebook) shall be the exclusive property of the Company. The Executive shall
assist the Company to obtain intellectual property protection on all such Proprietary Information
in the name of the Company and shall execute all documents and do all things necessary to (a)
obtain patents, trademarks, copyrights, and other intellectual property protection pertaining
thereto in the name of Company, (b) vest the Company with full and exclusive title thereto, and (c)
protect the same against infringement by others.

e. The Company and the Executive acknowledge that any work of authorship heretofore or
hereafter (during the term of this Agreement) authored or owned by the Executive that relates to
the performance of this Agreement shall be considered to be a work made for hire within the meaning
of the 1976 Copyright Act; however, with respect to any and all portions of the works of authorship
that cannot be considered as a work made for hire, Executive shall and hereby does assign unto the
Company all of the right, title, and interest (including copyright) of every kind whatsoever in
such portions of said works of authorship. The rights vested in, or assigned unto, the Company
shall comprise all of the rights in said works of authorship of every kind, nature, and
description, including but not by way of limitation, (a) all physical documents such as, but not
limited to, blueprints, drawings and artwork, computer files and programs, and rough drafts
thereof, and any and all documentation in support thereof, customer names and lists, and other
printed documents; (b) the right to secure copyright thereon anywhere throughout the world, in the
Company’s name or otherwise; (c) any and all publication rights therein, in whatever form; (d) the
right to use, license, exploit, sell, or otherwise dispose thereof in any manner and for any
purpose the Company sees fit; and (e) any and all subsidiary rights therein. The Executive agrees
during and after the term of this Agreement, at the Company’s request and its expense, to assist
the Company and its nominees in every proper way to obtain, and to vest in it or them, copyrights
in the works of authorship in all countries, by executing all necessary or desirable documents,
including registration applications for copyrights and assignments thereof, and to execute all
other documents necessary to accomplish the intent of this Agreement. The Executive waives any and
all moral rights in copyright to the Company.

 

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f. The Company and the Executive agree that, because of the unique nature of the Company’s
business and products and services, the Executive shall not voluntarily or involuntarily, for any
cause or reason whatsoever:

i. use any of said Proprietary Information to create, promote, encourage, or assist in the
formation or operation of any business;

ii. use, publish or distribute information learned about the Company’s customers through the
Executive’s relationship with the Company; or

iii. impart, disclose, or otherwise communicate to any other person, other than one currently
employed by the Company, any information concerning said Proprietary Information.

g. Notwithstanding the foregoing, any provision in this Agreement requiring Executive to
assign his rights in an invention shall not apply to an invention that qualifies fully under the
provisions of California Labor Law Code §2870, which provides:

(a) Any provision in an employment agreement which provides that an employee
shall assign, or offer to assign, any of his or her rights in an invention to his or
her employer shall not apply to an invention that the employee developed entirely on
his or her own time without using the employer’s equipment, supplies, facilities, or
trade secret information except for those inventions that either:

(1) Relate at the time of conception or reduction to practice of the invention
to the employer’s business, or actual or demonstrably anticipated research or Work
Product of the employer; or

(2) Result from any work performed by the employee for the employer.

(b) To the extent a provision in an employment agreement purports to require an
employee to assign an invention otherwise excluded from being required to be
assigned under subdivision (a), the provision is against the public policy of this
state and is unenforceable.

10. Indemnification. The Company shall indemnify the Executive if he is named as a
party to any proceeding (other than an action by the Company), by reason of the fact that he is, or
was, a Director, officer, employee, or agent of the Company or is or was serving at the request of
the Company as a director, officer, employee, or agent of another corporation, limited liability
company, partnership, joint venture, trust, or other enterprise, including any liability incurred
by the Executive in connection with such proceeding, including any appeal thereof.

11. Repayment of Advances/Overpayment of Benefits. The Executive agrees that, to the
extent permitted by law and in compliance with Section 409A of the Internal Revenue Code (“409A”),
if the Executive owes the Company any sum of money at the time the Executive ceases to be employed
by the Company, the Company may deduct the sum owed by the Executive from any compensation due to
the Executive. In addition, to the extent permitted by law, the Executive agrees to allow the
Company to deduct from the Executive’s wages or other
amounts due to the Executive, any overpayments or unearned benefits, including but not limited
to, a deduction for paid time off, and/or tuition reimbursement made to or advanced to the
Executive by the Company.

 

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12. Prior Employment. The Executive represents and warrants that the Executive is not
employed or restricted from entering into any employment relationship with the Company, or
restricted or limited in the scope of services that the Executive can perform on behalf of the
Company, by any agreement with or obligation to any person, firm, or entity or by any other
disability or restraint, including, but not limited to, the order, judgment, or decree of any court
or governmental agency. The Executive hereby agrees to indemnify and hold the Company harmless
from any and all expenses, losses, or damages it may incur, including, but not limited to, all
expenses of defense and attorneys’ fees, cause by reason of the Executive’s breach of this
covenant.

13. 409A Compliance. This Agreement is intended to comply with the requirements of 409A. In
the event this Agreement or any benefit paid to Executive hereunder is deemed to be subject to
409A, the Company may adopt such conforming amendments as the Company deems necessary, in its
reasonable discretion, to comply with 409A. If upon Executive’s “separation from service” within
the meaning of 409A, he is then a “specified employee” (as defined in 409A), then solely to the
extent necessary to comply with 409A and avoid the imposition of taxes under 409A, the Company
shall defer payment of “nonqualified deferred compensation” subject to 409A payable as a result of
and within six (6) months following such separation from service until the earlier of (i) the first
business day of the seventh month following the Executive’s separation from service, or
(ii) ten (10) days after the Company receives written notification of Executive’s death. Any such
delayed payments shall be made without interest. In addition, to the extent required by 409A, any
expense reimbursement payments to Employee must be made by no later than the end of Executive’s
taxable year following the taxable year in which the expense is incurred. Such reimbursement or
in-kind benefit rights may not be subject to liquidation or exchange for another benefit. The
Company (nor any of its directors, employees or agents) shall not be liable to Executive as to any
unexpected or adverse tax consequence realized by Executive as a result of this Agreement or any
payment or benefit provided under this Agreement.

14. Severability. If any provision of this Agreement otherwise is deemed to be
invalid or unenforceable or is prohibited by the laws of the state or jurisdiction where it is to
be performed, this Agreement will be considered divisible as to such provision and such provision
will be inoperative in such state or jurisdiction and will not be part of the consideration moving
from either of the parties to the other. The remaining provisions of this Agreement will be valid
and binding and of like effect as though such provision were not included.

15. Governing Law and Jurisdiction. This Agreement shall be governed by and construed
in accordance with the laws of the State of California. Any litigation arising under this
Agreement shall be brought exclusively in the appropriate state or federal court of competent
jurisdiction located in Los Angeles County, California, and the Company and the Executive hereto
expressly consent to personal jurisdiction or venue with regard to such courts.

 

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16. Notice. Notices given pursuant to the provisions of this Agreement will be sent
by certified mail, postage prepaid, or by overnight courier, or telecopier to the following
addresses:

If to the Company:

HealthSport, Inc.

6429 Independence Ave.

Woodland Hills, CA 91367

Attention: Robert S. Davidson

If to the Executive:

HealthSport, Inc.

6429 Independence Ave.

Woodland Hills, CA 91367

Attention: Thomas Beckett

Either party may, from time to time, designate any other address to which any such notice will
be sent. Any such notice will be deemed to have been delivered upon the earlier of actual receipt
or four (4) days after deposit in the mail, if by certified mail.

17. Waiver/Amendment. The waiver by any party to this Agreement of a breach of any
provision hereof by any other party will not be construed as a waiver of any subsequent breach by
any party. No provision of this Agreement may be terminated, amended, supplemented, waived, or
modified other than by an instrument in writing signed by the party against whom the enforcement of
the termination, amendment, supplement, waiver, or modification is sought.

18. Attorney’s Fees. In the event any action is commenced to enforce any provision of
this Agreement, the prevailing party will be entitled to reasonable attorneys’ fees, costs, and
expenses.

19. Entire Agreement. This Agreement is the entire agreement between the Executive and
the Company. This Agreement supersedes all prior agreements and understandings between the parties
with respect to the subject matter hereof and may not be modified or terminated orally. No
modification, termination, or attempted waiver will be valid unless it is in writing and is
executed by the Company and the Executive.

20. Counterparts. This Agreement may be executed in counterparts, all of which will
constitute one and the same instrument.

 

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IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the day
and year first above written.

	 	 	 	 	 
	 	EXECUTIVE:

 	 
	 	/s/ Thomas Beckett
 	 
	 	THOMAS BECKETT 	 
	 	 	 
	 	COMPANY:

HEALTHSPORT, INC.

a Delaware corporation
 	 
	 	 	 
	 	By:  	                    /s/ Hank Durschlag
 	 
	 	 	Hank Durschlag 	 
	 	 	Title:  	Chief Executive Officer 	 

 

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Exhibit
10.2

AMERICAN MEDICAL SYSTEMS, INC.

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT is made and entered into effective as of August 3, 2009, between
American Medical Systems, Inc., a Delaware corporation (the “Company”), and Maximillian D.
Fiore (the “Executive”).

RECITALS

     WHEREAS, the Company recognizes that the future growth, profitability and success of the
Company’s business will be substantially and materially enhanced by the employment of the Executive
by the Company; and

     WHEREAS, the Company desires to employ the Executive and the Executive has indicated his
willingness to provide his services to the Company, on the terms and conditions set forth herein;

     NOW, THEREFORE, on the basis of the foregoing premises and in consideration of the mutual
covenants and agreements contained herein, the parties hereto agree as follows:

     Section 1. Employment. The Company hereby agrees to employ the Executive and the
Executive hereby accepts employment with the Company, on the terms and subject to the conditions
hereinafter set forth. The Executive shall serve as the Sr. Vice President and Chief Technology
Officer of American Medical Systems Holdings, Inc. (the “Parent Corporation”) and the
Company, and, in such capacity, shall report directly to the Company’s Chief Executive Officer and
shall have such duties as are typically performed by the Chief Technology Officer of a corporation,
together with such additional duties, commensurate with the Executive’s position as the Chief
Technology Officer of the Company, as may be assigned to the Executive from time to time by the
Company’s Chief Executive Officer. The principal location of the Executive’s employment shall be
at the Company’s principal executive office located in Minnetonka, Minnesota, although the
Executive understands and agrees that he may be required to travel from time to time for Company
business reasons.

     Section 2. Term. Unless terminated pursuant to Section 6 hereof, the Executive’s
employment hereunder shall commence on August 3, 2009, and shall continue during the period ending
on August 2, 2010 (the “Initial Term”). Thereafter, the Executive’s employment hereunder
shall extend automatically for consecutive periods of one year unless either party shall provide
notice of termination not less than sixty (60) days prior to an anniversary date of this Agreement.
The Initial Term, together with any extension pursuant to this Section 2, is referred to herein as
the “Employment Term.” The Employment Term and this Agreement shall terminate upon any
termination of the Executive’s employment pursuant to Section 6.

     Section 3. Compensation. During the Employment Term, the Executive shall be entitled
to the compensation and benefits outlined in sections 4 and 5.

     Section 4. Salary. As compensation for the performance of the Executive’s services

 

 

hereunder, the Company shall pay to the Executive a base salary (the “Salary”) of
$290,000 per year with increases, if any, as may be approved by the Board of Directors or the
Compensation Committee of the Board. The Salary shall be payable in accordance with the customary
payroll practices of the Company as the same shall exist from time to time. In no event shall the
Salary be decreased during the Employment Term.

     Section 5. Bonus. During the Employment Term, in addition to Salary, the Executive
shall be eligible to participate in the executive variable incentive plan or such other bonus plans
as may be adopted from time to time by the Board of Directors or the Compensation Committee of the
Board for officers of the Company (the “Bonus”) for each such fiscal year ending during the
Employment Period; provided that, unless the Board of Directors or the Compensation Committee of
the Board determines otherwise, the Executive must be employed on the last day of each fiscal
quarter or year, as of which the Bonus is determined under any bonus plan, in order to receive the
Bonus attributable to such fiscal quarter or year. The Executive’s entitlement to the Bonus for
any particular fiscal quarter or year shall be based on the attainment of performance objectives
established by the Board of Directors or the Compensation Committee of the Board in any such bonus
plan, and the Executive’s target Bonus for 100% achievement of performance objectives under such
bonus plan shall be 40% of base Salary. The Executive’s participation in the 2009 executive
variable incentive plan shall be effective as of the beginning of employment on a prorated basis.

(a) Stock Options.

     (1) The Executive shall be granted on the date established by the Compensation
Committee per the date of the Resolution for the Option (the “Grant Date”)
a Non-Qualified Stock Option to acquire 130,000 shares of Common Stock of the Parent
Corporation under the Parent Corporation’s 2005 Stock Incentive Plan (the “2005
Plan”) at an exercise price equal to the Fair Market Value (as defined in the
2005 Plan) of one share of Common Stock on the Grant Date; such option to become
exercisable, on a cumulative basis, with respect to 25% of the shares covered by
such option on the first anniversary of the grant date, and with respect to 6.25% of
the shares covered by such option on the last day of each calendar quarter
thereafter, provided that the Executive has been continuously employed by or
providing service to the Company through, each such date; and such option to expire
seven years from the Grant Date. All of the terms and conditions relating to the
option, including the vesting and expiration dates, are set forth in the Stock
Option Certificate, dated the Grant Date, evidencing such option.

     (b) Relocation Expenses. The Executive will be eligible for the Company’s
standard relocation benefits, which include, movement of household goods, up to 12 months
temporary housing if needed, closing costs on the purchase of a home in Minnesota, and other
benefits as set forth in the Relocation Program provided to the Executive. Additionally,
the Executive will receive reimbursement of up to $49,100 (gross) on loss on sale of his
current home, if applicable.

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     (c) Benefits. Except as otherwise provided in this Agreement, in addition to
the Salary and Bonus, if any, the Executive shall be entitled during the Employment Term to
participate in medical, dental, life and disability insurance programs and other benefit
programs provided to officers of the Company on terms no less favorable than those available
to the officers of the Company. The Executive shall also be entitled to twenty seven (27)
paid-time-off days, same number of holidays and other benefits as are generally allowed to
other senior executives of the Company in accordance with the Company’s policies in effect
from time to time.

     (d) Exclusivity. During the Employment Term, the Executive shall devote his
full time to the business of the Company and its subsidiaries, shall faithfully serve the
Company and its subsidiaries, shall use his best efforts to promote and serve the interests
of the Company and its subsidiaries and shall not engage in any other business activity,
whether or not such activity shall be engaged in for pecuniary profit, except that the
Executive may (i) participate in the activities of professional trade organizations related
to the business of the Company and its subsidiaries, (ii) engage in personal investing
activities and (iii) serve on the board of directors of not more than two (2) other
companies whose businesses are not in competition with the business interests of the
Company, and which have been approved by the Chief Executive Officer, provided that the
activities set forth in these clauses (i), (ii) and (iii), either singly or in the
aggregate, do not interfere in any material respect with the services to be provided by the
Executive hereunder.

     (e) Reimbursement for Expenses. During the Employment Term, the Executive is
authorized to incur reasonable expenses in the discharge of the services to be performed
hereunder, including expenses for travel, entertainment, lodging and similar items in
accordance with the Company’s expense reimbursement policy, as the same may be modified by
the Company from time to time. The Company shall reimburse the Executive for all such
proper expenses upon presentation by the Executive of itemized accounts of such expenditures
in accordance with the financial policy of the Company, as in effect from time to time.

Section 6. Termination and Default.

     (a) Death. The Executive’s employment shall automatically terminate upon his
death and upon such event, the Executive’s estate shall be entitled to receive the amounts
specified in Section 6(e) below.

     (b) Disability. If the Executive is unable to perform the duties required of
him under this Agreement because of illness, incapacity, or physical or mental disability,
the Employment Term shall continue and the Company shall pay all compensation required to be
paid to the Executive hereunder, unless the Executive is disabled such that the Executive
would be entitled to receive disability benefits under the Company’s long-term disability
plan, or if no such plan exists, the Executive is unable to perform the duties required of
him under this Agreement for an aggregate of 180 days (whether or not consecutive) during
any 12-month period during the term of this Agreement, in which event the Executive’s
employment shall terminate.

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     (c) Cause. The Company may terminate the Executive’s employment at any time,
with or without Cause. In the event of termination pursuant to this Section 6(c) for Cause
(as defined below), the Company shall deliver to the Executive written notice setting forth
the basis for such termination, which notice shall specifically set forth the nature of the
Cause which is the reason for such termination. Termination of the Executive’s employment
hereunder shall be effective upon delivery of such notice of termination. For purposes of
this Agreement, “Cause” shall mean: (1) the Executive’s failure (except where due
to a disability contemplated by subsection (b) hereof), neglect or refusal to perform his
duties hereunder which failure, neglect or refusal shall not have been corrected by the
Executive within 30 days of receipt by the Executive of written notice from the Company of
such failure, neglect or refusal, which notice shall specifically set forth the nature of
said failure, neglect or refusal, (2) any willful or intentional act of the Executive that
has the effect of injuring the reputation or business of the Company or its affiliates in
any material respect; (3) any continued or repeated absence from the Company, unless such
absence is (A) approved or excused by the Chief Executive Officer of the Company or (B) is
the result of the Executive’s illness, disability or incapacity (in which event the
provisions of Section 6(b) hereof shall control); (4) use of illegal drugs by the Executive
or repeated drunkenness; (5) conviction of the Executive for the commission of a felony; or
(6) the commission by the Executive of an act of fraud or embezzlement against the Company.

     (d) Resignation. The Executive shall have the right to terminate his
employment at any time by giving notice of his resignation.

     (e) Payments.

          (1) In the event that the Executive’s employment terminates for any reason, the
Company shall pay to the Executive all amounts and benefits accrued but unpaid
hereunder through the date of termination in respect of Salary or unreimbursed
expenses, including accrued and unused paid-time-off days.

          (2) In the event of the Executive’s Termination of Employment (defined below)
by the Company without Cause, whether during or upon expiration of the then current
term of this Agreement, and Executive executes within thirty days following
Termination of Employment (and does not revoke within the relevant statutory
periods) a Release and Separation Agreement in the form provided by the Company,
then in addition to the amounts specified in Section 6(e)(1), (i) the Company shall
continue to pay the Executive his Salary (less any applicable withholding or similar
taxes) at the rate in effect hereunder on the date of such termination periodically,
in accordance with the Company’s prevailing payroll practices, until the earlier of
(x) the date that is twelve (12) months after the date of such termination or (y)
the date the Executive begins full-time employment with another employer (the
“Severance Term”); and (ii) if the Executive elects COBRA continuation
coverage under the Company’s group medical and/or dental plans, then for each month
of the Severance Term, the Company will pay or reimburse the Executive an amount
equal to the excess of (A) the portion of the monthly cost for the Executive’s
coverage under the

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Company’s group health and/or dental plans that was borne by the Company
immediately prior to the Executive’s Termination of Employment (subject to the rule
for coverage changes discussed below) over (B) the portion of the monthly cost for
the Executive’s coverage under the Company’s group health and/or dental plans that
is borne by the Company during the Severance Term. If the level of the Executive’s
coverage changes during the Severance Term, as, for example, from single to family
coverage or to no coverage, the amount will be determined as if the new coverage
level had been the level of coverage in effect immediately prior to the Termination
of Employment. Any reimbursement made under this Section 6(e)(2) shall be made on
or before the last day of the calendar year following the calendar year in which the
expense was incurred. In the event the Executive accepts part-time employment or
engages in his own business, including consulting activity, prior to the last date
of the Severance Term, the Executive shall immediately notify the Company and the
Company shall be entitled to reduce the amounts due the Executive under this Section
6(e) by the amounts paid to the Executive in respect of such part-time employment or
other business activity.

          (3) Further, in the event the Executive’s Termination of Employment without
Cause by reason of the Company having notified the Executive that this Agreement
will not be extended pursuant to Section 2, the Executive shall be entitled to
receive a pro-rated amount of the Bonus in a lump sum based on the Executive’s
period of employment during the calendar year in which such termination occurs (less
any applicable withholding or similar taxes), which Bonus shall be paid following
the end of the calendar year.

          (4) Amounts owed by the Company in respect of the Salary or reimbursement for
expenses under the provisions of Section 5 hereof shall, except as otherwise set
forth in this Section 6(e), be paid promptly after the expiration of any rescission
periods contained in the release, but not more than 90 days following such
termination.

          (5) The payments and benefits to be provided to the Executive as set forth in
this Section 6(e) in the event the Executive’s employment is terminated by the
Company without Cause and shall be lieu of any and all benefits otherwise provided
under any severance pay policy, plan or program maintained from time to time by the
Company for its employees.

          (6) To the extent the Executive incurs a tax liability (including foreign,
federal, state and local taxes) in connection with the reimbursement under Section
6(e)(2) which the Executive would not have incurred had the Executive been an active
employee of the Company participating in the Company’s group health and dental
plans, the Company will make a payment to the Executive in an amount equal to such
tax liability plus an additional amount sufficient to permit the Executive to retain
a net amount after all taxes equal to the initial tax liability in connection with
the benefit. The payment pursuant to this Section 6(e)(6) will be made within 10
days after the Executive’s remittal of a written request for payment accompanied by
a statement indicating the basis for and amount of the

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Executive’s tax liability, but in no event later than December 31 of the calendar
year next following the calendar year in which the related taxes are remitted to the
appropriate taxing authority.

          (7) Notwithstanding the foregoing, if, at the time of his or her Termination of
Employment, the Executive is a ‘specified employee’ (defined below), and the Company
reasonably determines that any salary continuation payment due under Section 6(e)(2)
constitutes deferred compensation subject to the requirements of Code Section 409A,
then such payments shall be suspended and not made until on or after the first day
after the end of the six (6) month period following the Executive’s Termination of
Employment but in no event later than seven (7) months following Termination of
Employment, or, if earlier, upon the Executive’s death. If any such suspended
payment is not made within 10 days of the end of such six month period, the Company
will pay the Executive interest, equal to the applicable Federal rate in effect for
each month, from the date of Termination of Employment through the date of payment.
The Executive is a ‘Specified Employee’ if on the date of his or her
Termination of Employment he or she is a ‘key employee’ (defined below), of the
Company (or any other entity with whom the Company would be treated as a single
employer under Section 414(b) or 414(c) of the Code). For this purpose, Executive
is a ‘key employee’ during the 12-month period beginning on the April 1 immediately
following a calendar year, if he or she was employed by the Company (or any other
entity with whom the Company would be treated as a single employer under Section
414(b) or 414(c) of the Code) and satisfied, at any time during such preceding
calendar year, the requirements of Section 416(i)(1)(A)(i), (ii) or (iii) of the
Code (applied in accordance with the regulations issued thereunder and disregarding
Section 416(i)(5) of the Code). The Executive will not be treated as a Specified
Employee if he or she is not required to be treated as a Specified Employee under
Treasury regulations issued under Section 409A of the Code.

          (8) When used in this Agreement, “Termination of Employment” means a
termination of Executive’s employment relationship with the Company and all
Affiliates or such other change in the Executive’s employment relationship with the
Company and all Affiliates that would be considered a “separation from service”
under Section 409A of the Code. The Executive’s employment relationship will be
treated as remaining intact while the Executive is on a military leave, a sick leave
or other bona fide leave of absence (pursuant to which there is a reasonable
expectation that the Executive will return to perform services for the Company or an
Affiliate) but only if the period of such leave does not exceed six (6) months, or
if longer, so long as the Executive retains a right to reemployment by the Company
or an Affiliate under applicable statute or by contract, provided, however, a
twenty-nine (29) month period of absence shall be substituted for such six (6) month
period of absence where the Executive’s leave is due to any medically determinable
physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than six (6) months and such
impairment causes the Executive to be unable to perform the duties of his or her
position of employment or any

6

 

substantially similar position of employment. In all cases, the Executive’s
Termination of Employment must constitute a “separation from service” under Section
409A of the Code and any “separation from service” under Section 409A of the Code
shall be treated as a Termination of Employment. For this purpose,
“Affiliate” means any entity that, together with the Company, is treated as
a single employer under Code Section 414(b) or (c).

     Section 7. Restrictions on Competitive Activities. The Executive acknowledges that
the agreements and covenants contained in this Section 7 are essential to protect the value of the
Company’s business and assets and by his or her current employment with the Company, the Executive
has obtained and will obtain such knowledge, contacts, know-how, training and experience and there
is a substantial probability that such knowledge, know-how, contacts, training and experience could
be used to the substantial advantage of a competitor of the Company and to the Company’s
substantial detriment. In consideration of the foregoing and the other covenants and agreements of
the Company set forth herein, the Executive agrees to the restrictions contained in this Section 7.

     (a) Non-Solicitation. The Executive agrees that the Executive will not, during
the Executive’s employment with the Company and for a period of two years following the date
of the Executive’s voluntary or the Company’s involuntary termination of the Executive’s
employment with the Company (the “Restrictive Period”), directly or indirectly
solicit, or assist anyone else in the solicitation of, any of the Company’s current
employees who worked for the Company for the purpose of hiring them, engaging them as
consultants, or inducing them to leave their employment with the Company. If the Executive
is approached by one of the Company’s employees regarding potential employment, consultation
or contract, as described above during the Restrictive Period of non-solicitation, the
Executive must immediately (1) fully inform the employee or former employee of the
Executive’s non-solicitation obligation described above; and (2) refrain from engaging in
any communication with the employee or former employee regarding potential employment,
consultation or contract.

     (b) “Company Product” means any product, product line or service that has been
designed, developed, manufactured, marketed, sold or is under research, development, or is
being pursued through acquisition or licensure, or has been the subject of disclosure to the
Company in response to a due diligence process by the Company, at any time during the
Executive’s employment with the Company; provided, however, that if the Executive becomes
entitled to the benefits described in Section 2 of the CIC Severance Agreement, then the
definition of “Company Product” shall mean Company Product as of immediately prior to the
“change in control” as defined in the CIC Severance Agreement.

     (c) “Competitive Product” means goods, products, product lines or services
developed, designed, manufactured, marketed, promoted, sold, serviced, or that are in
development or the subject of research by any Person that are the same or similar, perform
any of the same or similar functions, may be substituted for, or are intended or used for
any of the same purposes as a Company Product.

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     (d) “Conflicting Organization” means any Person (including the Executive), and
any parent, subsidiary, partner or affiliate of any Person, that engages in, or is about to
become engaged in, the development, design, production, manufacture, promotion, marketing,
sale, support or service of a Competitive Product.

     (e) Non-Competition. The Executive agrees that the Executive will not, during
the Restrictive Period, alone or in any capacity with another Person (e.g., as an advisor,
consultant, principal, agent, partner, officer, director, shareholder, employee or
otherwise), within any geographic area where the Company does business:

          (1) directly or indirectly disclose to a Conflicting Organization the names or
any other information regarding the Company’s customers, or, on behalf of a
Conflicting Organization, call on, solicit, take away, or attempt to call on,
solicit, or take away any of the customers of the Company on whom the Executive
called, or otherwise had contact on behalf of the Company, or developed knowledge
regarding the customer’s need for or use of Competitive Product(s); or

          (2) seek or obtain employment with, work for, consult with, or lend assistance
to any Conflicting Organization in a capacity which is the same as or similar to the
employment capacity the Executive performed on behalf of the Company; or

          (3) directly or indirectly participate in or support in any capacity the
manufacture, invention, development, testing or research of any Competitive Product;
or

          (4) disrupt, damage, impair, or interfere with the business of the Company
whether by way of interfering with or disrupting the Company’s relationship with
employees, customers, agents, representatives or vendors.

     (f) Exception. During the Restrictive Period, the restrictions contained in
this Section 7 will not prevent the Executive from accepting employment with, or providing
consulting services to, a large diversified organization with separate and distinct
divisions that do not compete, directly or indirectly, with the Company. During the
Restrictive Period set forth in this Section 7, the Executive will inform any new employer,
prior to accepting employment or providing consulting services, of the existence of this
Agreement and provide such employer with a copy of this Agreement.

     Section 8. Trade Secrets. The Company has, and is expected to develop certain
concepts, products, processes, information, designs, ideas, policies and procedures (collectively,
“Trade Secrets”) which it uses in its business which give the Company an advantage over
competitors who do not know, understand or use these secrets. Trade Secrets include the following
information:

     (a) information which in any way relates to the Company’s design, engineering,
manufacturing or management activities, financial condition, financial operations,
purchasing activities, business plans and marketing activities;

8

 

     (b) information acquired or compiled by the Company regarding actual or potential
customers, including their identities, their development prospects, financial information
concerning their business operations, identity and quantity of products or services
purchased from the Company, and all related accounts receivable information;

     (c) information concerning or resulting from the development of internal policies,
procedures, standards, quality or productivity measures or tools; and

     (d) any other information (in whatever form) as may, from time to time, be designated
by the Company as “Proprietary” or a “Trade Secret.”

     Except as may be required by the Executive’s employment with the Company or as
expressly agreed upon by the Company in writing, the Executive agrees that he will not,
during or after his employment with the Company, use or disclose any Trade Secrets or permit
any person to examine or copy any Trade Secrets. If any of the above classes of information
is found by a court to not constitute Trade Secrets, such information shall constitute
“Confidential Information” for purposes of this Agreement.

     Section 9. Confidential Information. The Company has, and is expected to develop
other Confidential Information, concepts, designs, policies, and procedures having independent
economic value from not being generally known or ascertainable by proper means which the Executive
will or may learn in the course of employment but which does not constitute Trade Secrets as
described above. For purposes of this Agreement, “Confidential Information” means any
proprietary, confidential or competitively sensitive information and materials which are the
property of or relate to the Company including, without limitation:

     (a) the identity of the Company’s past, present and prospective customers, clients or
business contacts, and all documents, information and materials which concern or relate to
such customers, clients or business contacts;

     (b) marketing, sales, and advertising information; marketing and sales techniques,
strategies, efforts and data; business plans and product development and delivery schedules;
market research and forecasts;

     (c) organizational information, such as personnel and salary data, merger, acquisition
and expansion information; information concerning methods of operation; divestiture
information, and competitive information pertaining to the Company’s distributors;

     (d) technical information such as product specifications, compounds, formulas,
improvements, discoveries, developments, designs, inventions, techniques, and new products;

     (e) information disclosed to the Executive as part of any specialized, proprietary
training process; and

     (f) information of third parties provided to the Executive subject to non-disclosure
restrictions for use in the Executive’s business for the Company.

9

 

     Except as may be required by the Executive’s employment with the Company or as
expressly agreed upon in writing by the Company in writing, the Executive agrees that he
will not, during or at any time after his employment with the Company, use or disclose any
Confidential Information or permit any person to examine, copy or otherwise receive any
Confidential Information.

Section 10. Inventions.

     (a) “Inventions” means any inventions, discoveries, improvements and ideas,
whether or not in writing or reduced to practice and whether or not patentable or
copyrightable, made, authored or conceived by the Executive, whether by his individual
efforts or in connection with the efforts of others, and that either (i) relate in any way
to the Company’s business, products or processes, past, present, anticipated or under
development, or (ii) result in any way from the Executive’s employment by the Company, or
(iii) use the Company’s equipment, supplies, facilities or trade secret information.

     (b) The Executive agrees that all Inventions made by you during the period of your
employment with the Company and for six (6) months thereafter, whether made during the
working hours of the Company or on the Executive’s own time, will be the sole and exclusive
property of the Company. The Executive will, with respect to any Invention: (i) keep
current, accurate, and complete records, which will belong to the Company and be kept and
stored on the Company’s premises; (ii) promptly and fully disclose the existence and
describe the nature of the Invention to the Company in writing (and without request); (iii)
assign (and the Executive hereby assigns) to the Company all of his right, title and
interest in and to the Invention, any applications he makes for patents or copyrights in any
country, and any patents or copyrights granted to the Executive in any country; and (iv)
acknowledge and deliver promptly to the Company any written instruments, and perform any
other acts necessary in the Company’s opinion to preserve property rights in the Invention
against forfeiture, abandonment or loss and to obtain and maintain letters patent and/or
copyrights on the Invention and to vest the entire right and title to the Invention in the
Company, whether during or after the Executive’s employment with the Company.

     (c) The Executive represents that, as of the date of this Agreement, you have no right
under and will make no claims against the Company with respect to any inventions,
discoveries, improvements, ideas or works of authorship which would be Inventions if made,
conceived, authored or acquired by you during the term of this Agreement.

     (d) To the extent that any Invention qualifies as “work made for hire” as defined in 17
U.S.C. § 101 (1976), as amended, such Invention will constitute “work made for hire” and, as
such, will be the exclusive property of the Company.

     (e) Pursuant to Minnesota law, this Section 10 does not apply to any invention for
which no equipment, supplies, facility, or trade secret information of the Company was used
and which was developed entirely on the Executive’s own time, and (i) which

10

 

does not relate directly to any business of the Company or any of the Company’s actual
or demonstrably anticipated research or development, or (ii) which does not result from any
work the Executive performs for the Company.

     Section 11. Injunctive Relief. Without intending to limit the remedies available to
the Company, the Executive acknowledges that in the event of a breach of any of the covenants
contained in Sections 7, 8, 9 or 10 may result in material irreparable injury to the Company or its
subsidiaries or affiliates for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event of such a breach or
threat thereof, the Company shall be entitled to obtain a temporary restraining order and/or a
preliminary or permanent injunction, without the necessity of proving irreparable harm or injury as
a result of such breach or threatened breach of Sections 7, 8, 9 or 10, restraining the Executive
from engaging in activities prohibited by Sections 7, 8, 9 and 10 or such other relief as may be
required specifically to enforce any of the covenants in Sections 7, 8, 9 and 10.

     Section 12. Representations and Warranties of the Executive. The Executive represents
and warrants to the Company as follows:

     (a) This Agreement, upon execution and delivery by the Executive, will be duly executed
and delivered by the Executive and (assuming due execution and delivery hereof by the
Company) will be the valid and binding obligation of the Executive enforceable against the
Executive in accordance with its terms.

     (b) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby nor the performance of this Agreement in accordance with
its terms and conditions by the Executive (1) requires the approval or consent of any
governmental body or of any other person or (2) conflicts with or results in any breach or
violation of, or constitutes (or with notice or lapse of time or both would constitute) a
default under, any agreement, instrument, judgment, decree, order, statute, rule, permit or
governmental regulation applicable to the Executive. Without limiting the generality of the
foregoing, the Executive is not a party to any non-competition, non-solicitation, no hire or
similar agreement that prohibits or conflicts in any way the Executive’s employment
hereunder.

     The representations and warranties of the Executive contained in this Section 12 shall survive
the execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby.

     Section 13. Representations and Warranties of the Company. The Company represents and
warrants to the Executive as follows:

     (a) This Agreement, upon execution and delivery by the Company, will be duly executed
and delivered by the Company and (assuming due execution and delivery hereof by the
Executive) will be the valid and binding obligation of the Company enforceable against the
Company in accordance with its terms.

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     (b) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby nor the performance of this Agreement in accordance with
its terms and conditions by the Company (1) requires the approval or consent of any
governmental body or of any other person or (2) conflicts with or results in any breach or
violation of, or constitutes (or with notice or lapse of time or both would constitute) a
default under, any agreement, instrument, judgment, decree, order, statute, rule, permit or
governmental regulation applicable to the Company.

     The representations and warranties of the Company contained in this Section 13 shall survive
the execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby.

     Section 14. Successors and Assigns; No Third-Party Beneficiaries. This Agreement
shall inure to the benefit of, and be binding upon, the successors and assigns of each of the
parties, including, but not limited to, the Executive’s heirs and the personal representatives of
the Executive’s estate; provided, however, that neither party shall assign or
delegate any of the obligations created under this Agreement without the prior written consent of
the other party. Notwithstanding the foregoing, the Company shall have the unrestricted right to
assign this Agreement and to delegate all or any part of its obligations hereunder to any of its
subsidiaries or Affiliates, but in such event such assignee shall expressly assume all obligations
of the Company hereunder and the Company shall remain fully liable for the performance of all of
such obligations in the manner prescribed in this Agreement. Nothing in this Agreement shall
confer upon any person or entity not a party to this Agreement, or the legal representatives of
such person or entity, any rights or remedies of any nature or kind whatsoever under or by reason
of this Agreement.

     Section 15. Waiver and Amendments. Any waiver, alteration, amendment or modification
of any of the terms of this Agreement shall be valid only if made in writing and signed by the
parties hereto; provided, however, that any such waiver, alteration, amendment or
modification is consented to on the Company’s behalf by the Board of Directors or Compensation
Committee of the Board. No waiver by either of the parties hereto of their rights hereunder shall
be deemed to constitute a waiver with respect to any subsequent occurrences or transactions
hereunder unless such waiver specifically states that it is to be construed as a continuing waiver.

     Section 16. Severability and Governing Law. The Executive acknowledges and agrees
that the covenants set forth in Section 7 hereof are reasonable and valid in geographical and
temporal scope and in all other respects. If any of such covenants or such other provisions of
this Agreement are found to be invalid or unenforceable by a final determination of a court of
competent jurisdiction (a) the remaining terms and provisions hereof shall be unimpaired and (b)
the invalid or unenforceable term or provision shall be deemed replaced by a term or provision that
is valid and enforceable and that comes closest to expressing the intention of the invalid or
unenforceable term or provision. This Agreement shall be governed by and construed in accordance
with the laws of the state of Minnesota applicable to contracts made and to be performed entirely
within such state.

     Section 17. Notices.

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     (a) All communications under this Agreement shall be in writing and shall be delivered
by hand or mailed by overnight courier or by registered or certified mail, postage prepaid:

     (1) If to the Executive, at 6 Tarbell Road, Windham, New Hampshire, 03087 or at
such other address as the Executive may have furnished the Company in writing, and

     (2) If to the Company, at 10700 Bren Road West, Minnetonka, Minnesota 55343,
marked for the attention of Senior Vice President, Human Resources, or at such other
address as it may have furnished in writing to the Executive.

     (b) Any notice so addressed shall be deemed to be given: if delivered by hand, on the
date of such delivery; if mailed by courier, on the first business day following the date of
such mailing; and if mailed by registered or certified mail, on the third business day after
the date of such mailing.

     Section 18. Section Headings. The headings of the sections and subsections of this
Agreement are inserted for convenience only and shall not be deemed to constitute a part thereof,
affect the meaning or interpretation of this Agreement or of any term or provision hereof.

     Section 19. Entire Agreement. This Agreement, including the Stock Option
Certificates, and the CIC Severance Agreement constitutes the entire understanding and agreement of
the parties hereto regarding the employment of the Executive. This Agreement supersedes all prior
negotiations, discussions, correspondence, communications, understandings and agreements between
the parties relating to the subject matter of this Agreement.

     Section 20. Survival of Operative Sections. Upon any termination of the Executive’s
employment, the provisions of Sections 6(e) and 7 through 21 of this Agreement shall survive to the
extent necessary to give effect to the provisions thereof.

     Section 21. Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original and all of which together shall be considered one and the
same agreement. Facsimile execution and delivery of this Agreement shall be legal, valid and
binding execution and delivery for all purposes.

13

 

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

	 	 	 	 	 
	 	AMERICAN MEDICAL SYSTEMS, INC.

 	 
	 	By:  	/s/ Randall Ross 	 
	 	 	Randall Ross 	 
	 	 	Senior Vice President, Human Resources 	 
	 
	 
	 	 	/s/ Maximillian D. Fiore
 	 
	 	 	Maximillian D. Fiore
 	 
	 	 	 
	 	 	 
	 	 	 
	 

14

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