Document:

exv10w41

 

Exhibit
10.41

FORM OF INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (“Agreement”) is made as of ___, 2008 (the
“Effective Date”) by and between Grubb & Ellis Company, a Delaware corporation (the
“Company”), and ___who serves as a director and/or officer of the Company
(“Indemnitee”).

     WHEREAS, highly competent persons have become more reluctant to serve corporations as
directors or officers unless they are provided with adequate protection through insurance and/or
indemnification against the risks of claims being asserted against them arising out of their
service to and activities on behalf of such corporations; and

     WHEREAS, the board of directors of the Company (the “Board”) has determined that, in
order to help attract and retain qualified individuals as directors and officers, the best
interests of the Company and its investors will be served by attempting to maintain, on an ongoing
basis, at the Company’s sole expense, insurance to protect persons serving the Company and its
subsidiaries as directors or officers from certain liabilities. Although the furnishing of such
insurance has been a customary and widespread practice among United States-based corporations and
other business enterprises for many years, the Company believes that, given current market
conditions and trends, such insurance may be available to it in the future only at higher premiums
and with more exclusions. At the same time, directors and officers in service to corporations or
business enterprises are being increasingly subjected to expensive and time-consuming litigation;
and

     WHEREAS, the Board has determined that, in order to help attract and retain qualified
individuals as directors and officers, the best interests of the Company and its investors will be
served by assuring such individuals that the Company will indemnify them to the maximum extent
permitted by law; and

     WHEREAS, the Certificate of Incorporation (the “Certificate of Incorporation”) of the
Company permit, and the By-Laws (the “By-Laws”) of the Company permit, indemnification of
the officers and directors of the Company, and Indemnitee may also be entitled to indemnification
pursuant to the Delaware General Corporation Law (“DGCL”); and

     WHEREAS, the Certificate of Incorporation, the By-Laws and the DGCL expressly provide that the
indemnification provisions set forth therein are not exclusive, and thereby contemplate that
contracts may be entered into between the Company and its directors and officers with respect to
indemnification and the advancement of defense costs; and

     WHEREAS, the Board has determined that the increased difficulty in attracting and retaining
such persons is detrimental to the best interests of the Company’s investors

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and that the Company should act to assure such persons that there will be increased certainty
of such protection in the future; and

     WHEREAS, it therefore is reasonable, prudent and necessary for the Company contractually to
obligate itself to indemnify, and to advance defense costs on behalf of, such persons to the
fullest extent permitted by applicable law so that they will serve or continue to serve the Company
free from undue concern that they will not be so indemnified; and

     WHEREAS, this Agreement is a supplement to and in furtherance of the Certificate of
Incorporation, By-Laws and any resolutions adopted pursuant thereto, and shall not be deemed a
substitute therefore, nor shall it be deemed to diminish or abrogate any rights of Indemnitee
thereunder; and

     WHEREAS, the Board recognizes that the Indemnitee does not regard the protection available
under the Company’s Certificate of Incorporation, the By-Laws and insurance program as adequate in
the present circumstances, and may not be willing to serve or continue to serve as a director,
officer or in such other capacity as the Company may request without adequate protection, and the
Company desires Indemnitee to serve in such capacity; and

     WHEREAS, Indemnitee is willing to serve, and continue to serve, as a member of the Board (and
any committee thereof) or as an officer of the Company, on the condition that he or she be
indemnified as provided for herein.

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

     1. Services to the Company. Indemnitee will serve or continue to serve, at the will of the
Company, as a director or officer of the Company for so long as Indemnitee is duly elected or
appointed or until Indemnitee tenders his or her resignation. This Agreement shall not serve as a
binding commitment on the part of Indemnitee to continue to serve in such capacity, or on the part
of the Company to cause him or her to be nominated to successive terms as a director or officer or
to not otherwise be removed for cause or without cause, as permitted under law.

     2. Definitions. As used in this Agreement:

          (a) “Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 issued
under the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person becoming
a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company
with another entity.

          (b) A “Change in Control” shall be deemed to occur upon the earliest to occur after
the date of this Agreement of any of the following events:

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               (i) Acquisition of Stock by Third Party. Following the initial public offering of the
Company’s securities, any Person (as defined below, but excluding any subsidiary or employee
benefit plan of the Company), subsequent to the date of this Agreement, becomes the Beneficial
Owner, directly or indirectly, of securities of the Company representing thirty-five percent (35%)
or more of the combined voting power of the Company’s then outstanding securities entitled to vote
generally in the election of directors, unless (1) the change in the relative Beneficial Ownership
of the Company’s securities by any Person results solely from a reduction in the aggregate number
of outstanding shares of securities entitled to vote generally in the election of directors, or (2)
such acquisition was approved in advance by the Continuing Directors (as defined below) and such
acquisition would not constitute a Change in Control under part (iii) of this definition;

               (ii) Change in Board of Directors. Individuals who, as of the date hereof, constitute
the Board, and any new director whose election by the Board or nomination for election by the
Company’s stockholders was approved by a vote of at least two thirds of the directors then still in
office who were directors on the date hereof or whose election for nomination for election was
previously so approved (collectively, the “Continuing Directors”), cease for any reason to
constitute at least a majority of the members of the Board;

               (iii) Corporate Transactions. The effective date of a reorganization, merger or
consolidation of the Company (a “Business Combination”), in each case, unless, following
such Business Combination: (1) all or substantially all of the individuals and entities who were
the Beneficial Owners of securities entitled to vote generally in the election of directors
immediately prior to such Business Combination beneficially own, directly or indirectly, more than
51% of the combined voting power of the then outstanding securities entitled to vote generally in
the election of directors of the Company resulting from such Business Combination (including,
without limitation, a corporation which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or more Subsidiaries) in
substantially the same proportions as their ownership, immediately prior to such Business
Combination, of the securities entitled to vote generally in the election of directors; (2) no
Person (excluding any corporation resulting from such Business Combination) is the Beneficial
Owner, directly or indirectly, of 15% or more of the combined voting power of the then outstanding
securities entitled to vote generally in the election of directors of such corporation except to
the extent that such ownership existed prior to the Business Combination; and (3) at least a
majority of the Board resulting from such Business Combination were Continuing Directors at the
time of the execution of the initial agreement, or of the action of the Board, providing for such
Business Combination;

               (iv) Liquidation. The approval by the stockholders of the Company of a complete
liquidation of the Company or an agreement or series of agreements for the sale or disposition by
the Company of all or substantially all of the Company’s assets, other than factoring the Company’s
current receivables or escrows due

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(or, if such approval is not required, the decision by the Board to proceed with such a
liquidation, sale, or disposition in one transaction or a series of related transactions); or

               (v) Other Events. There occurs any other event of a nature that would be required to
be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any
similar item on any similar schedule or form) promulgated under the Exchange Act (as defined
below), whether or not the Company is then subject to such reporting requirement.

          (c) “Corporate Status” shall describe the status of a person who is or was a director,
officer, trustee, partner, member, fiduciary, employee or agent of the Company or of any other
Enterprise (as defined below), which such person is or was serving at the request of the Company.

          (d) “Disinterested Director” shall mean a director of the Company who is not and was
not a party to the Proceeding (as defined below) in respect of which indemnification is sought by
Indemnitee.

          (e) “Enterprise” shall mean any corporation, limited liability company, partnership,
joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was
serving at the request of the Company as a director, officer, trustee, administrator, partner,
member, fiduciary, employee or agent.

          (f) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

          (g) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts and accountants, witness fees, travel expenses, duplicating
costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other
disbursements or expenses of the types and amounts customarily incurred in connection with
prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a
witness in, or otherwise participating in, a Proceeding (as defined below). Expenses also shall
include costs incurred in connection with any appeal resulting from any Proceeding (as defined
below), including, without limitation, the premium, security for, and other costs relating to any
bond, supersedeas bond, or other appeal bond or its equivalent. Expenses, however, shall not
include amounts paid in settlement by Indemnitee or the amount of judgments or fines against
Indemnitee.

          (h) “Independent Counsel” shall mean a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither presently is, nor in the past five (5) years
has been, retained to represent: (i) the Company or Indemnitee in any matter material to either
such party (other than with respect to matters concerning the Indemnitee under this Agreement, or
other indemnitees under similar indemnification agreements), or (ii) any other party to the
Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing,
the term “Independent

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Counsel” shall not include any person who, under the applicable standards of professional
conduct then prevailing, would have a conflict of interest in representing either the Company or
Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

          (i) References to “fines” shall include any excise tax assessed on a person with
respect to any employee benefit plan pursuant to applicable law.

          (j) References to “serving at the request of the Company” shall include any service
provided at the request of the Company as a director, officer, trustee, administrator, partner,
member, fiduciary, employee or agent of the Company which imposes duties on, or involves services
by, such director, officer, trustee, administrator, partner, member, fiduciary, employee or agent
with respect to an employee benefit plan, its participants or beneficiaries.

          (k) “Person” shall have the meaning set forth in Sections 13(d) and 14(d) of the
Exchange Act; provided, however, that Person shall exclude (i) the Company and (ii) any trustee or
other fiduciary holding securities under an employee benefit plan of the Company or a subsidiary of
the Company.

          (l) Any action taken or omitted to be taken by a person for a purpose which he or she
reasonably believed to be in the interests of the participants and beneficiaries of an employee
benefit plan shall be deemed to have been taken in “good faith” and for a purpose which is
“not opposed to the best interests of the Company”, as such terms are referred to in this
Agreement and used in the DGCL.

          (m) The term “Proceeding” shall include any threatened, pending or completed action,
suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative
hearing or any other actual, threatened or completed proceeding, whether brought in the right of
the Company or otherwise and whether of a civil, criminal, administrative or investigative nature,
including any related appeal, in which Indemnitee was, is or will be involved as a party or witness
or otherwise by reason of the fact that Indemnitee is or was a director, officer, trustee,
administrator, partner, member, fiduciary, employee or agent of the Company, by reason of any
action taken or not taken by him or her while acting as director, officer, trustee, administrator,
partner, member, fiduciary, employee or agent of the Company, or by reason of the fact that he or
she is or was serving at the request of the Company as a director, officer, trustee, administrator,
partner, member, fiduciary, employee or agent of any other Enterprise, in each case whether or not
serving in such capacity at the time any liability or expense is incurred for which
indemnification, reimbursement, or advancement of expenses can be provided under this Agreement.

     3. Indemnity in Third-Party Proceedings. The Company shall indemnify and hold harmless
Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is made, or is
threatened to be made, a party to or a participant in (as a witness or otherwise) any Proceeding,
other than a Proceeding by or in the right of the Company to procure a judgment in

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its favor. Pursuant to this Section 3, Indemnitee shall be indemnified and held harmless
against all judgments, fines, penalties, amounts paid in settlement (if such settlement is approved
in writing in advance by the Company, which approval shall not be unreasonably withheld)
(including, without limitation, all interest, assessments and other charges paid or payable in
connection with or in respect of any of the foregoing) (collectively, “Losses”) and
Expenses actually and reasonably incurred by Indemnitee or on his or her behalf in connection with
such Proceeding or any action, discovery event, claim, issue or matter therein or related thereto,
if Indemnitee acted in good faith, for a purpose which he or she reasonably believed to be in or
not opposed to the best interests of the Company and, in the case of a criminal Proceeding, in
addition, had no reasonable cause to believe that his or her conduct was unlawful.

     4. Indemnity in Proceedings by or in the Right of the Company. The Company shall indemnify
Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is made, or is
threatened to be made, a party to or a participant in (as a witness or otherwise) any Proceeding by
or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 4,
Indemnitee shall be indemnified and held harmless against all Expenses actually and reasonably
incurred by him or her or on his or her behalf in connection with the defense or settlement of such
Proceeding or any action, discovery event, claim, issue or matter therein or related thereto, if
Indemnitee acted in good faith, for a purpose which he or she reasonably believed to be in or not
opposed to the best interests of the Company. No indemnification, however, shall be made under
this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been
adjudged to be liable to the Company, unless and only to the extent that the court in which the
Proceeding was brought or, if no Proceeding was brought in a court, any court of competent
jurisdiction, determines upon application that, in view of all the circumstances of the case,
Indemnitee fairly and reasonably is entitled to indemnification for such portion of the Expenses as
the court deems proper.

     5. Indemnification for Expenses Where Indemnitee is Wholly or Partly Successful.
Notwithstanding and in addition to the provisions of Section 3 and 4 of this Agreement, to the
extent that Indemnitee is a party to a Proceeding and is successful, on the merits or otherwise, in
the defense of any claim, issue or matter therein, the Company shall indemnify and hold harmless
Indemnitee against all Expenses actually and reasonably incurred by him or her or on his or her
behalf in connection with such successful defense. For the avoidance of doubt, if Indemnitee is
not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one
or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify
Indemnitee against all Expenses actually and reasonably incurred by him or her or on his or her
behalf in connection with each successfully resolved claim, issue or matter. For purposes of this
Section 5, and without limitation, the termination of any claim, issue or matter in such a
Proceeding by withdrawal or dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter.

     6. Indemnification for Expenses of a Witness. To the extent that Indemnitee is, by reason of
his or her Corporate Status, a witness in or otherwise incurs Expenses in connection with any
Proceeding to which Indemnitee is not a party, he or she shall be indemnified and held harmless by
the Company against all Expenses actually and reasonably incurred by him or her or on his or her
behalf in connection therewith.

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     7. Additional Indemnification.

          (a) Notwithstanding any limitation in Sections 3, 4, or 5 hereof or in Section 145 of the DGCL
or other applicable statutory provision, the Company shall indemnify Indemnitee to the fullest
extent permitted by law if Indemnitee is made, or is threatened to be made, a party to any
Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its
favor) against all Losses and Expenses actually and reasonably incurred by Indemnitee in connection
with the Proceeding, provided that no indemnification shall be made under this Section 7(a) on
account of Indemnitee’s conduct which constitutes a breach of Indemnitee’s duty of loyalty to the
Company or its investors or is an act or omission not in good faith or which involves intentional
misconduct or a knowing violation of the law.

          (b) For purposes of Sections 7(a), the meaning of the phrase “to the fullest extent
permitted by law” shall include, but not be limited to:

               (i) to the fullest extent authorized or permitted by the then-applicable provisions of the
DGCL or other applicable statutory provision, that authorize or contemplate indemnification by
agreement, or the corresponding provision of any amendment to or replacement of the DGCL or other
applicable statutory provision, and

               (ii) to the fullest extent authorized or permitted by any amendments to or replacements of the
DGCL or other applicable statutory provision, adopted after the date of this Agreement that
increase the extent to which a corporation limited liability company or partnership, as applicable,
may indemnify its officers, directors or persons holding similar fiduciary responsibilities.

          (c) Indemnitee shall be entitled to the prompt payment of all Expenses reasonably incurred in
enforcing successfully (fully or partially) this Agreement.

     8. Contribution. To the fullest extent permissible under applicable law, if the
indemnification provided for in this Agreement is unavailable to Indemnitee in whole or in part for
any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the
amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid
or to be paid in settlement and/or for Expenses, in connection with any claim relating to an
indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in
light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits
received by the Company, on the one hand, and Indemnitee, on the other, as a result of the event(s)
and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the
Company, on the one hand (and its directors, officers, employees and agents) and Indemnitee, on the
other, in connection with such event(s) and/or transaction(s).

     9. Exclusions. Notwithstanding any provision in this Agreement, the Company shall not be
obligated under this Agreement to make any indemnity in connection with any claim made against
Indemnitee:

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          (a) for which payment actually has been received by or on behalf of Indemnitee under any
insurance policy or other indemnity provision, except with respect to any excess beyond the amount
actually received under such insurance policy or other indemnity provision; or

          (b) for an accounting of profits made from the purchase and sale (or sale and purchase) by
Indemnitee of securities of the Company or any subsidiary of the Company within the meaning of
Section 16(b) of the Exchange Act, as amended, or similar provisions of state blue sky law, state
statutory law or common law; or

          (c) prior to a Change in Control, in connection with any Proceeding (or any part of any
Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding)
initiated by Indemnitee against the Company (other than any Proceeding referred to in Sections
14(d) or (e) below or any other Proceeding commenced to recover any Expenses referred to in Section
7(c) above) or its directors, officers, employees or other indemnitees, unless (i) the Board
authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the
Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the
Company under applicable law; or

          (d) if the funds at issue were paid pursuant to a settlement approved by a court and
indemnification would be inconsistent with any condition with respect to indemnification expressly
imposed by the court in approving the settlement.

     10. Advances of Expenses; Defense of Claim.

          (a) The Company shall advance pursuant to this Section 10(a) the Expenses incurred by
Indemnitee in connection with any Proceeding within thirty (30) days after the receipt by the
Company of a written statement or statements requesting such advances from time to time, whether
prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest
free. Advances shall be made without regard to Indemnitee’s ability to repay such advances.
Advances shall include any and all reasonable Expenses incurred pursuing an action to enforce such
right to receive advances. Notwithstanding any provision of this Agreement to the contrary, the
Indemnitee shall be entitled to advances of Expenses incurred by him or her or on his or her behalf
in connection with a Proceeding that Indemnitee claims is covered by Sections 3 and 4 hereof, prior
to a final determination of eligibility for indemnification and prior to the final disposition of
the Proceeding, upon the execution and delivery to the Company of an undertaking by or on behalf of
the Indemnitee providing that the Indemnitee will repay such advances to the extent that it
ultimately is determined that Indemnitee is not entitled to be indemnified by the Company. This
Section 10(a) shall not apply to any claim made by Indemnitee for which indemnity is excluded
pursuant to Section 9.

          (b) The Company will be entitled to participate in the Proceeding at its own expense.

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          (c) The Company shall not settle any action, claim or Proceeding (in whole or in part) which
would impose any Expense, judgment, fine, penalty or limitation on the Indemnitee without the
Indemnitee’s prior written consent, which consent shall not be unreasonably withheld.

     11. Procedure for Notification and Application for Indemnification.

          (a) Within sixty (60) days after the actual receipt by Indemnitee of written notice that he or
she is a party to or is requested to be a participant in (as a witness or otherwise) any
Proceeding, Indemnitee shall submit to the Company a written notice identifying the Proceeding.
The failure by the Indemnitee to notify the Company within such 60-day period will not relieve the
Company from any liability which it may have to Indemnitee (i) other than under this Agreement, and
(ii) under this Agreement, provided that if the Company can establish that such failure to notify
the Company in a timely manner resulted in actual prejudice to the Company, then the Company will
be relieved from liability under this Agreement only to the extent of such actual prejudice.

          (b) Indemnitee shall at the time of giving such notice pursuant to Section 11(a) or thereafter
deliver to the Company a written application for indemnification. Such application may be
delivered at such time as Indemnitee deems appropriate in his or her sole discretion. Following
delivery of such a written application for indemnification by Indemnitee, the Indemnitee’s
entitlement to indemnification shall be determined promptly according to Section 12(a) of this
Agreement and the outcome of such determination shall be reported to Indemnitee in writing within
forty-five (45) days of the submission of such application.

     12. Procedure Upon Application for Indemnification.

          (a) Upon written application by Indemnitee for indemnification pursuant to Section 11(b) or
written statement by Indemnitee for advances of Expenses pursuant to Section 10(a), a determination
with respect to Indemnitee’s entitlement thereto pursuant to the mandatory terms of this Agreement,
pursuant to statute, or pursuant to other sources of right to indemnity, shall be made in the
specific case: (i) by a majority vote of the Disinterested Directors, whether or not such directors
otherwise would constitute a quorum of the Board; (ii) by a committee of Disinterested Directors
designated by a majority vote of such directors, whether or not such directors would otherwise
constitute a quorum of the Board, (iii) if there are no Disinterested Directors, by Independent
Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee or (iv)
by the stockholders of the Company. Indemnitee shall reasonably cooperate with the person, persons
or entity making the determination with respect to Indemnitee’s entitlement to indemnification,
including providing to such person, persons or entity upon reasonable advance request any
documentation or information which is not privileged or otherwise protected from disclosure and
which is reasonably available to Indemnitee and reasonably necessary to such determination. Any
costs or Expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so
cooperating with the person, persons or entity making such determination shall be

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borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to
indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless from any
such costs and Expenses.

          (b) If it is determined that Indemnitee is entitled to the indemnification requested by the
Indemnitee in a written application submitted to the Company pursuant to Section 11(b), payment to
Indemnitee shall be made within ten (10) days after such determination. All advances of Expenses
requested in a written statement by Indemnitee pursuant to Section 10(a) prior to a final
determination of eligibility for indemnification shall be paid in accordance with Section 10.

          (c) In the event the determination of entitlement to indemnification or advancement of
Expenses is to be made by Independent Counsel pursuant to Section 12(a) hereof, the Independent
Counsel shall be selected as provided in this Section 12(c). If a Change in Control shall not have
occurred, the Independent Counsel shall be selected by the Board, and the Company shall give
written notice to Indemnitee advising him or her of the identity of the Independent Counsel so
selected. If a Change in Control shall have occurred, the Independent Counsel shall be selected by
Indemnitee (unless Indemnitee shall request that such selection be made by the Board, in which
event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company
advising it of the identity of the Independent Counsel so selected. In either event, Indemnitee or
the Company, as the case may be, may, within ten (10) days after such written notice of selection
shall have been received, deliver to the Company or to Indemnitee, as the case may be, a written
objection to such selection; provided, however, that such objection may be asserted only on the
ground that the Independent Counsel so selected does not meet the requirements of “Independent
Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with
particularity the factual basis of such assertion. Absent a proper and timely objection, the
person so selected shall act as Independent Counsel. If a written objection is made and
substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and
until such objection is withdrawn or a court of competent jurisdiction has determined that such
objection is without merit. If, within twenty (20) days after submission by Indemnitee of a
written request for advancement of Expenses or indemnification pursuant to Section 10(a) or 11(b)
hereof, no Independent Counsel shall have been selected and not objected to, either the Company or
Indemnitee may petition a court of competent jurisdiction for resolution of any objection which
shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel
and/or for the appointment as Independent Counsel of a person selected by the court or by such
other person as the court shall designate, and the person with respect to whom all objections are
so resolved or the person so appointed shall act as Independent Counsel under Section 12(a) hereof.

          (d) The Company shall pay the reasonable fees and expenses of the Independent Counsel and to
fully indemnify such Independent Counsel against any and all Expenses, claims, liabilities and
damages arising out of or relating to this Agreement or its engagement pursuant hereto.

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          (e) Upon the due commencement of any judicial proceeding or arbitration pursuant to Section
14(a) of this Agreement, any Independent Counsel shall be discharged and relieved of any further
responsibility in such capacity (subject to the applicable standards of professional conduct then
prevailing).

     13. Presumptions and Effect of Certain Proceedings.

          (a) Presumption in Favor of Indemnitee. In making a determination with respect to
entitlement to indemnification or advancement of Expenses hereunder, the person or persons or
entity making such determination shall presume that Indemnitee is entitled to indemnification or
advancement of Expenses under this Agreement if Indemnitee has submitted an application for
advancement of Expenses in accordance with Section 10(a) of this Agreement or indemnification in
accordance with Section 11(b) of this Agreement, and the Company shall have the burden of proof to
overcome that presumption.

          (b) No Presumption Against Indemnitee. Neither the failure of the Company (including
by its directors or Independent Counsel) to have made a determination prior to the commencement of
any action pursuant to this Agreement nor an actual determination by the Company (including by its
directors or Independent Counsel) that Indemnitee has not met the applicable standard of conduct
for indemnification shall be a defense to the action or create a presumption that Indemnitee has
not met the applicable standard of conduct.

          (c) Sixty Day Period for Determination. If the person, persons or entity empowered or
selected under Section 12 of this Agreement to determine whether Indemnitee is entitled to
indemnification or advancement of Expenses shall not have made a determination within sixty (60)
days after receipt by the Company of an application therefor, a determination of entitlement to
indemnification or advancement of Expenses shall be deemed to have been made and Indemnitee shall
be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or
an omission of a material fact necessary to make Indemnitee’s statement not materially misleading,
in connection with the application for indemnification or advancement of Expenses, or (ii) a
prohibition of such indemnification under applicable law; provided, however, that such 60-day
period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the
person, persons or entity making the determination with respect to entitlement to indemnification
in good faith requires such additional time for the obtaining or evaluating of documentation and/or
information relating thereto.

          (d) No Presumption from Termination of a Proceeding. The termination of any
Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction,
or upon a plea of nolo contendere, or its equivalent, shall not of itself adversely affect the
right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good
faith and for a purpose which he or she reasonably believed to be in or not opposed to the best
interests of the Company or, with

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respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his
or her conduct was unlawful.

          (e) Reliance as Safe Harbor. For purposes of any determination of good faith,
Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action or failure to act is
based on the records or books of account of the Company or any Enterprise other than the Company,
including financial statements, or on information supplied to Indemnitee by the officers of the
Company or any Enterprise other than the Company in the course of their duties, or on the advice of
legal counsel for the Company or any Enterprise other than the Company or on information or records
given or reports made to the Company or any Enterprise other than the Company by an independent
certified public accountant or by an appraiser or other expert selected by the Company or any
Enterprise other than the Company, except if the Indemnitee knew or had reason to know that such
records or books of account of the Company, information supplied by the officers of the Company,
advice of legal counsel or information or records given or reports made by an independent certified
public accountant or by an appraiser or other expert were materially false or materially
inaccurate. The provisions of this Section 13(e) shall not be deemed to be exclusive or to limit
in any way the other circumstances in which the Indemnitee may be deemed or found to have met any
applicable standard of conduct.

          (f) Actions of Others. The knowledge and/or actions, or failure to act, of any other
director, officer, trustee, administrator, partner, member, fiduciary, employee or agent of the
Company or any Enterprise other than the Company shall not be imputed to Indemnitee for purposes of
determining the right to indemnification under this Agreement.

     14. Remedies of Indemnitee.

          (a) Adjudication/Arbitration. In the event that (i) a determination is made pursuant
to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 10 of this
Agreement, (iii) subject to Section 13(b), no determination of entitlement to indemnification shall
have been made pursuant to Section 12(a) of this Agreement within 60 days after receipt by the
Company of the application for indemnification, or (iv) payment of indemnification is not made
pursuant to Sections 3, 4, 5, 6, 7 and 12(b) of this Agreement within ten (10) days after a
determination has been made that Indemnitee is entitled to indemnification, or after receipt by the
Company of a written request for any additional monies owed with respect to a Proceeding as to
which it already has been determined that Indemnitee is entitled to indemnification, Indemnitee
shall be entitled to an adjudication by a court of his or her entitlement to such indemnification
or advancement of Expenses. Alternatively, Indemnitee, at his or her option, may seek an award in
arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of
the American Arbitration Association. The Company shall not oppose Indemnitee’s right to seek any
such adjudication or award in arbitration.

12

 

          (b) Indemnitee Not Prejudiced by Prior Adverse Determination. In the event that a
determination shall have been made pursuant to Section 12(a) of this Agreement that Indemnitee is
not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this
Section 14 shall be conducted in all respects as a de novo trial, or arbitration, on the
merits, and Indemnitee shall not be prejudiced by reason of the prior adverse determination. In
any judicial proceeding or arbitration commenced pursuant to this Section 14, the Company shall
have the burden of proving Indemnitee is not entitled to indemnification or advancement of
Expenses, as the case may be.

          (c) Company Bound by Prior Determination. If a determination shall have been made
pursuant to Section 12(a) of this Agreement that Indemnitee is entitled to indemnification, the
Company shall be bound by such determination in any judicial proceeding or arbitration commenced
pursuant to this Section 14, absent (i) a misstatement by Indemnitee of a material fact, or an
omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in
connection with the application for indemnification, or (ii) a prohibition of such indemnification
under applicable law.

          (d) Expenses. In the event that Indemnitee, pursuant to this Section 14, seeks a
judicial adjudication of or an award in arbitration to enforce his or her rights under, or to
recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the
Company, and shall be jointly and severally indemnified by the Company against, any and all
Expenses actually and reasonably incurred by him or her in such judicial adjudication or
arbitration if it shall be determined in such judicial adjudication or arbitration that Indemnitee
is entitled to receive all or part of the indemnification or advancement of Expenses sought which
the Company had disputed prior to the commencement of the judicial proceeding or arbitration.

          (e) Advances of Expenses. If requested by Indemnitee, the Company shall (within ten
(10) days after receipt by the Company of a written request therefore) advance to Indemnitee the
Expenses which are incurred by Indemnitee in connection with any judicial proceeding or arbitration
brought by Indemnitee for indemnification or advance of Expenses from the Company under this
Agreement or under any directors’ and officers’ liability insurance policies maintained by the
Company, if the Indemnitee has submitted an undertaking to repay such Expenses if Indemnitee
ultimately is determined to not be entitled to such indemnification, advancement of Expenses or
insurance recovery, as the case may be. The Indemnitee’s financial ability to repay any such
advances shall not be a basis for the Company to decline to make such advances.

          (f) Precluded Assertions by the Company. The Company shall be precluded from
asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 that the
procedures and presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court or before any such arbitrator that the Company is bound by all the
provisions of this Agreement.

13

 

     15. Non-exclusivity; Survival of Rights; Insurance; Subrogation.

          (a) Rights of Indemnitee Not Exclusive. The rights of indemnification and to receive
advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other
rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of
Incorporation, or the By-Laws, any agreement, vote of investors or a resolution of directors,
members, partners, or otherwise. No right or remedy herein conferred by this Agreement is intended
to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative
and in addition to every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent or subsequent assertion or employment of any other
right or remedy.

          (b) Survival of Rights. No amendment, alteration or repeal of this Agreement or of
any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in
respect of any action taken or omitted by such Indemnitee in his or her Corporate Status prior to
such amendment, alteration or repeal.

          (c) Change of Law. To the extent that a change in Delaware law, whether by statute or
judicial decision, permits greater indemnification or advancement of Expenses than would be
afforded currently under the Certificate of Incorporation or the By-Laws, or this Agreement, it is
the intent of the parties hereto that Indemnitee shall enjoy and be conferred by this Agreement the
greater benefits so afforded by such change.

          (d) Insurance. To the extent that the Company maintains an insurance policy or
policies providing liability insurance for directors, officers, trustees, administrators partners,
members, fiduciaries, employees, or agents of the Company or of any other Enterprise which such
person serves at the request of the Company, Indemnitee shall be covered by such policy or policies
in accordance with its or their terms to the maximum extent of the coverage available for any such
director, trustee, partner, member, fiduciary, officer, employee or agent under such policy or
policies. If, at the time the Company receives notice from any source of a Proceeding as to which
Indemnitee is a party or a participant (as a witness or otherwise) the Company has director and
officer liability insurance in effect that covers Indemnitee, the Company shall give prompt notice
of such Proceeding to the insurers in accordance with the procedures set forth in the respective
policies. The Company shall thereafter take all necessary or desirable action to cause such
insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in
accordance with the terms of such policies.

          (e) Subrogation. In the event of any payment under this Agreement, the Company, shall
be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who
shall execute all papers required and take all action

14

 

necessary to secure such rights, including execution of such documents as are necessary to
enable the Company to bring suit to enforce such rights.

          (f) Other Payments. The Company shall not be liable under this Agreement to make any
payment of amounts otherwise indemnifiable (or for which advancement is provided hereunder) if and
to the extent that Indemnitee has otherwise actually received such payment under any insurance
policy, contract, agreement or otherwise.

          (g) Other Indemnification. The Company’s obligation to indemnify or advance Expenses
hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer,
trustee, administrator partner, member, fiduciary, employee or agent of any other Enterprise shall
be reduced by any amount Indemnitee has actually received as indemnification or advancement of
expenses from such Enterprise.

     16. Duration of Agreement. This Agreement shall continue until and terminate upon the later
of: (a) six (6) years after the date that Indemnitee shall have ceased to serve as any of the
following: a director, officer, agent or employee of the Company or as a director, officer,
trustee, administrator partner, member, fiduciary, employee or agent of any other corporation,
partnership, joint venture, trust, employee benefit plan or other Enterprise which Indemnitee
served at the request of the Company; or (b) one (1) year after the final termination of any
Proceeding (including after the expiration of any rights of appeal) then pending in respect of
which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of
any proceeding commenced by Indemnitee pursuant to Section 14 of this Agreement (including any
rights of appeal of any Proceeding commenced pursuant to Section 14). This Agreement shall be
binding upon the Company and its respective successors and assigns and shall inure to the benefit
of Indemnitee and his or her heirs, executors and administrators.

     17. Severability. If any provision or provisions of this Agreement shall be held to be
invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without limitation, each
portion of any Section of this Agreement containing any such provision held to be invalid, illegal
or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be
affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law;
(b) such provision or provisions shall be deemed reformed to the extent necessary to conform to
applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the
fullest extent possible, the provisions of this Agreement (including, without limitation, each
portion of any Section of this Agreement containing any such provision held to be invalid, illegal
or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to
give effect to the intent manifested thereby.

     18. Enforcement.

          (a) The Company expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby in order to induce

15

 

Indemnitee to serve, or to continue to serve, as a director or officer of the Company, and the
Company acknowledges that Indemnitee is relying upon this Agreement in serving or continuing to
serve as a director or officer of the Company.

          (b) This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and understandings, oral, written and
implied, between the parties hereto with respect to the subject matter hereof.

     19. Modification and Waiver. No supplement, modification or amendment of this Agreement shall
be binding unless executed in writing by each of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions
of this Agreement nor shall any waiver constitute a continuing waiver.

     20. Successors and Binding Agreement.

          (a) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation, reorganization or otherwise) and any acquiror of all or substantially all of the
business or assets of the Company by agreement in form and substance reasonably satisfactory to
Indemnitee and/or his or her counsel, expressly to assume and agree to perform this Agreement in
the same manner and to the same extent the Company would be required to perform it if no such
succession had taken place.

          (b) This Agreement will be binding upon and inure to the benefit of the Company and any
successor to the Company, including, without limitation, any person acquiring directly or
indirectly all or substantially all of the business or assets of the Company whether by purchase,
merger, consolidation, reorganization or otherwise (and such successor will thereafter be deemed
the “Company” for purposes of this Agreement), but will not otherwise be assignable or delegatable
by the Company.

          (c) This Agreement will inure to the benefit of and be enforceable by the Indemnitee’s
personal or legal representatives, executors, administrators, successors, heirs, distributees,
legatees and other successors.

          (d) This Agreement is personal in nature and neither of the parties hereto will, without the
consent of the other, assign or delegate this Agreement or any rights or obligations hereunder
except as expressly provided in Sections 20(a), (b) and (c). Without limiting the generality or
effect of the foregoing, Indemnitee’s right to receive payments hereunder will not be assignable,
whether by pledge, creation of a security interest or otherwise, other than by a transfer by the
Indemnitee’s will, devise, a grantor’s trust instrument under which the Indemnitee or his estate is
the sole beneficiary, or by the laws of descent and distribution, and, in the event of any
attempted assignment or transfer contrary to this Section 20(d), the Company will have no liability
to pay any amount so attempted to be assigned or transferred.

16

 

     21. Notices. All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed to have been duly given if: (i) delivered by hand and
receipted for by the party to whom said notice or other communication shall have been directed, on
the date of such receipt, or (ii) mailed by certified or registered mail with postage prepaid, on
the third business day after the date on which it is so mailed:

          (a) If to Indemnitee, at the address indicated on the signature page of this Agreement, or
such other address as Indemnitee subsequently shall provide in writing to the Company.

          (b) If to the Company to:

Grubb & Ellis Company

1551 North Tustin Avenue, Suite 200

Santa Ana, California 92705

Attention: General Counsel

or to any other address as may have been furnished to Indemnitee in writing by the Company.

     22. Applicable Law and Consent to Jurisdiction. This Agreement and the legal relations among
the parties shall be governed by, and construed and enforced in accordance with, the laws of the
State of Delaware, without regard to its conflict of laws, principles or rules. Except with
respect to any arbitration commenced by Indemnitee pursuant to Section 14 of this Agreement, the
Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or
proceeding arising out of or in connection with this Agreement shall be brought only in the
Chancery Court of the State of Delaware (the “Delaware Court”), and not in any other state
or federal court in the United States of America or any court in any other country, (ii) consent to
submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding
arising out of or in connection with this Agreement, (iii) irrevocably appoint, to the extent such
party is not a resident of the State of Delaware, The Prentice-Hall Corporation System, Inc., 2711
Centerville Road, Suite 400, Wilmington, New Castle County, Delaware 19808 as its agent in the
State of Delaware as such party’s agent for acceptance of legal process in connection with any such
action or proceeding against such party with the same legal force and validity as if served upon
such party personally within the State of Delaware, (iv) waive any objection to the laying of venue
of any such action or proceeding in the Delaware Court, and (v) waive, and agree not to plead or to
make, any claim that any such action or proceeding brought in the Delaware Court has been brought
in an improper or inconvenient forum.

     23. Identical Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall for all purposes be deemed to be an original but all of which together shall
constitute one and the same Agreement. Only one such counterpart signed by the party against whom
enforceability is sought needs to be produced to evidence the existence of this Agreement.

17

 

     24. Miscellaneous. Use of the masculine pronoun shall be deemed to include usage of the
feminine pronoun where appropriate. The headings of the paragraphs of this Agreement are inserted
for convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

[The remainder of this page is intentionally left blank.]

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     IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year
first above written.

	 	 	 	 	 	 	 	 	 
	Grubb & Ellis Company	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	 
	 

	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Address for Notices to Indemnitee:
	 
	 	 	 	 	 	 	 	 
	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

19exv10w15

 

Exhibit 10.15

CHANGE IN CONTROL AGREEMENT

     THIS CHANGE IN CONTROL AGREEMENT (the “Agreement”) is entered into as of March 1, 2008, (the
“Effective Date”), by and between Joseph White (the “Executive”) and Molina Healthcare, Inc., a
Delaware corporation (the “Company”).

	1.	 	Definitions. The following definitions shall apply for all purposes under this
Agreement:

     (a) Change in Control. “Change in Control” means the occurrence of any of the
following events after the Effective Date:

	 	(i)	 	The acquisition (other than by an Excluded Person), directly or
indirectly, in one or more transactions, by any person or by any group of
persons, within the meaning of Section 13(d) or 14(d) of the Exchange Act, of
beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of
more than fifty percent (50%) of either the outstanding shares of common stock
or the combined voting power of the Company’s outstanding voting securities
entitled to vote generally, whether or not the acquisition was previously
approved by the existing directors, other than an acquisition that complies
with clause (x) and (y) of paragraph (ii);
	 
	 	(ii)	 	Consummation of a reorganization, merger, or consolidation of
the Company or the sale or other disposition of all or substantially all of the
Company’s assets unless, immediately following such event, (x) all or
substantially all of the stockholders of the Company immediately prior to such
event own, directly or indirectly, more than fifty percent (50%) of the then
outstanding voting securities of the resulting corporation (including without
limitation, a corporation which as a result of such event owns the Company or
all or substantially all of the Company’s assets either directly or indirectly
through one or more subsidiaries) and (y) the securities of the surviving or
resulting corporation received or retained by the stockholders of the Company
are publicly traded;
	 
	 	(iii)	 	Approval by the stockholders of the complete liquidation or
dissolution of the Company; or
	 
	 	(iv)	 	A change in the composition of a majority of the directors on
the Company’s Board of Directors within 12 months if not approved by a majority
of the pre-existing directors.

     A transaction shall not constitute a Change in Control if its sole purpose is to change the
state of the Company’s incorporation or to create a holding company that will be owned in
substantially the same proportions by the persons who held the Company’s securities immediately
before such transaction.

1

 

     (b) Excluded Person. “Excluded Person” means:

	 	(i)	 	Any person described in and satisfying the conditions of Rule
13d-1(b)(1) under the Exchange Act;
	 
	 	(ii)	 	The Company;
	 
	 	(iii)	 	An employee benefit plan (or related trust) sponsored or
maintained by the Company or its successor;
	 
	 	(iv)	 	Any person who is the beneficial owner (as defined in Rule
13d-3 under the Exchange Act) of more than 15% of the Common Stock on the
Effective Date (or any affiliate, successor, heir, descendant, or related party
of or to such person).

     (c) Good Reason. “Good Reason” shall mean that, on or after the effective date of a
Change in Control, the Executive (without Executive’s written consent):

	 	(i)	 	Has incurred a material reduction in his or her authority or
responsibility in comparison to the Executive’s authority or responsibility
prior to the public announcement of the Change in Control (the “Announcement”);
	 
	 	(ii)	 	Has incurred one or more reductions in his or her “total
compensation” which is defined as follows:
	 
	 	(A)	 	any reduction in base salary, or
	 
	 	(B)	 	any reduction in the target annual bonus percentage of base salary; or
	 
	 	(iii)	 	Has been notified that his or her principal place of work will
be relocated by a distance of 50 miles or more.

     For purposes of this Agreement, “base salary” shall mean the Executive’s annualized base
salary as of the Effective Date, as may be subsequently adjusted upward for increases.

     (d) Just Cause. “Just Cause” includes but is not limited to any of the following
committed by Executive (or omitted to be done by Executive) that occur on or after the Effective
Date:

	 	(i)	 	Theft, unethical or unlawful activity, or other dishonesty;
	 
	 	(ii)	 	Neglect of or failure to perform employment duties;
	 
	 	(iii)	 	Inability or unwillingness to perform employment duties;
	 
	 	(iv)	 	Insubordination;
	 
	 	(v)	 	Abuse of alcohol or other drugs or substances;

2

 

	 	(vi)	 	Breach of this Agreement;
	 
	 	(vii)	 	A conviction of or plea of “guilty” or “no contest” to a
felony under the laws of the United States or any state thereof; or
	 
	 	(viii)	 	Any violation or breach of any Company policy that has been established to
comply with either the Sarbanes-Oxley Act of 2002 (or any regulations or rules
or decisions that implement/interpret such act) or any laws, rules, or
requirements of the Securities and Exchange Commission or the New York Stock
Exchange.

     (e) Total Disability. “Total Disability” shall be deemed to occur on the ninetieth
(90th) consecutive or non-consecutive calendar day within any twelve (12) month period that
Executive is unable to perform his or her duties because of any physical or mental illness or
disability.

	2.	 	Severance Payment and Equity Compensation.

     (a) The Executive shall be entitled to receive a severance payment from the Company as
provided herein (the “Severance Payment”) if within the first twelve (12) month period after the
occurrence of a Change in Control, either:

	 	(i)	 	The Executive voluntarily resigns his or her employment for
Good Reason within sixty (60) days after the Executive becomes aware of the
occurrence of an event specified in Section 1(c); or
	 
	 	(ii)	 	The Company terminates the Executive’s employment for any
reason other than Just Cause, death, or Total Disability.

     For all purposes under this Agreement, the amount of the Severance Payment shall be equal to
two times (2X) the Executive’s annual base salary, as in effect on the date of the termination of
Executive’s employment (or if Executive’s salary was greater, on the date of the Announcement),
plus a prorata portion of the Executive’s target bonus for the fiscal year in which Executive’s
employment is terminated, based on the number of entire months of such fiscal year that have
elapsed through the date of Executive’s termination of employment as a fraction of twelve (12).
The Severance Payment shall be made to Executive in a single lump sum cash payment not later than
seven (7) business days following the date that Executive becomes entitled to a Severance Payment.

     Except as may be provided under Sections 2(b) and 2(c), the Severance Payment shall be in lieu
of any other post-termination employment payments.

     (b) Incentive, Deferred Compensation, and Retirement Programs. If the Executive is
entitled to a Severance Payment under Section 2(a) and notwithstanding anything to the contrary in
any stock option or stock appreciation right (SAR) or deferred compensation plan or retirement plan
or agreements, then (i) the Executive shall become immediately fully vested in all of his or her
outstanding stock options, SARs, warrants, restricted stock, phantom stock, deferred compensation,
retirement or similar plans or agreements of the Company, and (ii) the Executive (or his or her
personal representative if applicable) shall be permitted to exercise any of his or her vested
stock

3

 

options/SARs until the earlier of (i) one (1) year after Executive’s termination of employment
or (ii) the term of such unexercised stock options, warrants, or SARs.

     (c) Health Coverage. If the Executive is entitled to a Severance Payment under Section
2(a), the Company shall reimburse Executive for a portion of the cost of any group health
continuation coverage that the Company is otherwise required to offer under the Consolidated
Omnibus Budget Reconciliation Act of 1986 (“COBRA”) until the earlier of the date that (i) the
Executive becomes covered by comparable health coverage, offered by another employer, or (ii) is
twelve (12) months after the date upon which the Executive becomes entitled to a Severance Payment
under Section 2(a). The Executive shall continue to be responsible to pay for the cost of the
employee portion of COBRA coverage (such employee portion cost shall not be reimbursed by the
Company).

     (d) Mitigation. Except as may be expressly provided elsewhere in this Agreement, the
Executive shall not be required to mitigate the amount of any payment or benefit contemplated by
this Section 2 (whether by seeking new employment or in any other manner). No such payment shall
be reduced by earnings that the Executive may receive from any other source.

     (e) Conditions. All payments and benefits provided under this Section 2 are
conditioned on Executive’s continuing compliance with this Agreement and the Company’s policies.
All payments and benefits are also conditioned on, and in consideration for, Executive’s execution
(and effectiveness) of a release of claims and covenant not to sue substantially in the form
provided in Exhibit A upon termination of employment, to be delivered by Executive
simultaneously upon payment by the Company.

	3.	 	Successors.

     (a) Company’s Successors. Any successor (whether direct or indirect and whether by
purchase, lease, merger, consolidation, liquidation, or otherwise) to all or substantially all of
the Company’s business and/or assets, shall be obligated to perform this Agreement in the same
manner and to the same extent as the Company would be required to perform it in the absence of a
succession.

     (b) Executive’s Successors. This Agreement and all rights of the Executive hereunder
shall inure to the benefit of, and be enforceable by, the Executive’s personal or legal
representatives, executors, administrators, successors, heirs, distributees, devisees, and
legatees.

	4.	 	Miscellaneous Provisions.

     (a) Notice. Notices and all other communications contemplated by this Agreement shall
be in writing and shall be deemed to have been duly given when personally delivered or when mailed
by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of
the Executive, mailed notices shall be addressed to him or her at the home address which he or she
most recently communicated to the Company in writing. In the case of the Company, mailed notices
shall be addressed to its corporate headquarters, and all notices shall be directed to the
attention of its Secretary.

4

 

     (b) Waiver. No provision of this Agreement shall be modified, waived or discharged
unless the modification, waiver or discharge is agreed to in writing and signed by the Executive
and by an authorized officer of the Company (other than the Executive). No waiver by either party
of any breach of, or of compliance with, any condition or provision of this Agreement by the other
party shall be considered a waiver of any other condition or provision or of the same condition or
provision at another time.

     (c) Whole Agreement. This Agreement contains all the legally binding understandings
and agreements between Executive and the Company pertaining to the subject matter of this Agreement
and supersedes all such agreements, whether oral or in writing, previously entered into between the
parties.

     (d) Withholding Taxes. All payments made under this Agreement shall be subject to
reduction to reflect taxes required to be withheld by law.

     (e) Choice of Law. The validity, interpretation, construction, and performance of
this Agreement shall be governed by the laws of the State of California without regard to the
conflicts of laws principles thereof.

     (f) Severability. The invalidity or unenforceability of any provision or provisions
of this Agreement shall not affect the validity or enforceability of any other provision hereof,
which shall remain in full force and effect.

     (g) Arbitration. Any controversy or claim arising out of or relating to this
Agreement, or the breach thereof, shall be settled by arbitration in Los Angeles County in
accordance with the Commercial Arbitration Rules of the American Arbitration Association.
Discovery shall be permitted to the same extent as in a proceeding under the Federal Rules of Civil
Procedure, including (without limitation) such discovery as is specifically authorized by section
1283.05 of the California Code of Civil Procedure, without need of prior leave of the arbitrator
under section 1283.05(e) of such Code. Judgment on the award rendered by the arbitrator may be
entered in any court having jurisdiction thereof. All fees and expenses of the arbitrator and such
Association and attorney fees shall be paid as determined by the arbitrator.

     (h) No Assignment. The rights of Executive to payments or benefits under this
Agreement shall not be made subject to option or assignment, either by voluntary or involuntary
assignment or by operation of law, including (without limitation) bankruptcy, garnishment,
attachment or other creditor’s process, and any action in violation of this Subsection (h) shall be
void.

     (i) Nondisparagement; Confidentiality. On the Effective Date and thereafter,
Executive agrees that he/she will not disparage the Company or its directors, officers, employees,
affiliates, subsidiaries, predecessors, successors or assigns in any written or oral communications
to any third party. Executive further agrees that he/she will not direct anyone to make any
disparaging oral or written remarks to any third parties. During Executive’s employment and
following Executive’s termination of employment for any reason, Executive agrees to not
intentionally use or disclose the confidential information or trade secrets of the Company.

5

 

     (j) Nonsolicit. During the Executive’s employment with Company and for twelve months
after Executive’s termination of employment and payment of the Severance Payment hereunder, the
Executive shall not, directly or indirectly, either as an individual or as an employee, agent,
consultant, advisor, independent contractor, general partner, officer, director, stockholder,
investor, lender, or in any other capacity whatsoever, of any person, firm, corporation, or
partnership: (i) induce or attempt to induce any person who at the time of such inducement is an
employee of the Company to perform work or service for any other person or entity other than the
Company or (ii) participate or engage in the design, development, manufacture, production,
marketing, sale, or servicing of any product, or the provision of any service, that directly or
indirectly relates to Company business.

     (k) Notice of Employment. During Executive’s employment and for twelve months after
Executive’s termination of employment and payment of the Severance Payment hereunder, the Executive
will promptly notify the Company in writing if Executive becomes (or agrees to become) an employee
or director of any other employer. Such notice shall include the name of the other employer and
the date of commencement of employment or service as a director.

     IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the day and year first above written.

	 	 	 	 	 
	 	EXECUTIVE:

 	 
	 	/s/ Joseph White
 	 
	 	Joseph White 	 
	 	 	 
	 
	 	MOLINA HEALTHCARE, INC.:

 	 
	 	/s/ John C. Molina
 	 
	 	By:   John C. Molina 	 
	 	Its:   Chief Financial Officer 	 

6

 

	 	 	 	 	 

EXHIBIT A

Form of Release of Claims and Covenant Not To Sue

In consideration of the payments and other benefits that Molina Healthcare, Inc., a Delaware
corporation (the “Company”), is providing to Joseph White (“Executive”) under the Change in Control
Agreement entered into by and between Executive and the Company, dated June 12, 2006, the
Executive, on his or her own behalf and on behalf of Employee’s representatives, agents, heirs and
assigns, waives, releases, discharges and promises never to assert any and all claims, demands,
actions, costs, rights, liabilities, damages or obligations of every kind and nature, whether known
or unknown, suspected or unsuspected that Executive ever had, now have or might have as of the date
of Executive’s termination of employment with the Company against the Company or its predecessors,
parent, affiliates, subsidiaries, stockholders, owners, directors, officers, employees, agents,
attorneys, insurers, successors, or assigns (including all such persons or entities that have a
current and/or former relationship with the Company) for any claims arising from or related to
Executive’s employment with the Company, its parent or any of its affiliates and subsidiaries and
the termination of that employment.

These released claims also specifically include, but are not limited to, any claims arising under
any federal, state and local statutory or common law, such as (as amended and as applicable) Title
VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Americans With
Disabilities Act, the Employee Retirement Income Security Act, the Family Medical Leave Act, the
Equal Pay Act, the Fair Labor Standards Act, the Industrial Welfare Commission’s Orders, the
California Fair Employment and Housing Act, the California Constitution, the California Government
Code, the California Labor Code and any other federal, state or local constitution, law, regulation
or ordinance governing the terms and conditions of employment or the termination of employment, and
the law of contract and tort and any claim for attorneys’ fees.

Furthermore, the Executive acknowledges that this waiver and release is knowing and voluntary and
that the consideration given for this waiver and release is in addition to anything of value to
which Executive was already entitled. Executive acknowledges that there may exist facts or claims
in addition to or different from those which are now known or believed by Executive to exist.
Nonetheless, this Agreement extends to all claims of every nature and kind whatsoever, whether
known or unknown, suspected or unsuspected, past or present. Executive also expressly waives the
provisions of California Civil Code section 1542, which provides: “A general release does not
extend to claims which the creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him/her must have materially affected his settlement with
the debtor.” With respect to the claims released in the preceding sentences, the Executive will
not initiate or maintain any legal or administrative action or proceeding of any kind against the
Company or its predecessors, parent, affiliates, subsidiaries, stockholders, owners, directors,
officers, employees, agents, successors, or assigns (including all such persons or entities that
have a current or former relationship with the Company), for the purpose of obtaining any personal
relief, nor assist or participate in any such proceedings, including any proceedings brought by any
third parties (except as otherwise required or permitted by law). The Executive further
acknowledges that he has been advised by this writing that:

7

 

	 	•	 	he should consult with an attorney prior
to executing this release;
	 
	 	•	 	he has at least twenty-one (21) days within which
to consider this release;
	 
	 	•	 	he has up to seven (7) days following the
execution of this release by the parties to revoke
the release; and
	 
	 	•	 	this release shall not be effective until such
seven (7) day revocation period has expired.

Executive agrees that the release set forth above shall be and remain in effect in all respects as
a complete general release as to the matters released.

EXECUTIVE

                                                               
        

Joseph White

Date:

8

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