Document:

Asset Purchase Agreement, dated as of February 2, 2009

 Exhibit 10.1 
 ASSET PURCHASE AGREEMENT 
 THIS ASSET PURCHASE AGREEMENT (this “Agreement”),
is made as of this 2nd day of February, 2009, by and between: 
 Digirad Imaging Solutions, Inc., a Delaware corporation with offices at 13950
Stowe Dr., Poway, California, 92064 (“DIS”, being referred to from time to time as the “Seller”), 
 MD Office Solutions, a California corporation (the “Buyer”), and 
 Digirad Corporation, solely with respect
to specific representations and covenants made by Digirad Corporation herein. 
 W I T N E S S E T H: 
 WHEREAS, DIS owns certain assets and has such contractual and business relationships which it uses in connection with solid-state medical imaging
business and activities in the Territory (the “Business”). 
 WHEREAS, the Seller desires to sell, and the Buyer
desires to purchase certain assets of DIS for the consideration and upon the terms and conditions set forth in this Agreement and the exhibits hereto. 
 WHEREAS, concurrently with the execution of this Agreement, the Buyer and Seller shall enter into (i) a License Agreement of even date herewith (the “License Agreement”); (ii) a Bill
of Sale, Assignment and Assumption Agreement, in substantially the forms attached hereto as Exhibit A and Exhibit B (the “Bill of Sale” and “Assignment and Assumption Agreement”);
(iii) two promissory notes of even date herewith (the “Notes”); and (iv) a service contract for each camera purchased, in substantially the forms previously provided to Buyer (each, a “Service
Contract”). 
 NOW, THEREFORE, in consideration of the premises and the mutual representations, warranties, covenants and
agreements herein contained for good and valuable consideration, the parties hereto, intending to be legally bound, agree as follows: 
 ARTICLE 1 
 PURCHASE AND SALE OF ASSETS 
 1.1    Purchased Assets. Subject to the terms and conditions hereof, at the Closing, the Seller shall assign, convey, sell, and/or transfer to Buyer, and Buyer shall purchase or be assigned
all the Seller’s rights in and to the following assets (the “Purchased Assets”): 
 (a)    all tangible property set forth on Schedule 1.1(a); and 
 (b)    the
contracts to which DIS is a party listed on Schedule 1.1(b) (the “DIS Contracts”). 
  

  

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 1.2    [***] 
 ARTICLE 2 
 PURCHASE PRICE AND PAYMENT 
 2.1    Purchase Price. The Buyer agrees to pay [***] 
 2.2    (the “Purchase Price”) payable as follows: 
 (a)    [***] by wire transfer of immediately available funds; 
 (b)    A secured promissory note in the principal amount of [***] (“Note A”); and 
 (c)    A secured promissory note in the principal amount of [***] (“Note B”) 
 2.2    Note A Terms. Note A shall bear interest at a rate of [***]% per year, which shall begin to accrue on the Closing Date.
Payments on Note A shall be due in cash monthly beginning on [***], and shall be payable in [***] equal monthly installments, [***]. Note A shall be secured by the Collateral (as defined in the Security Agreement). [***] 
 2.3    Note B Terms. Note B shall bear interest at a rate of [***]% per year, which shall begin to accrue on the Closing Date.
Payments on Note B shall be due in cash monthly beginning on [***], and shall be payable in [***] equal monthly installments, [***]. Note B shall be secured by the Collateral. [***]. 
 ARTICLE 3 
 CLOSING 
 3.1    Time and Place of Closing. The closing of the purchase and sale of the Purchased Assets (the
“Closing”) pursuant to this Agreement shall take place on or before February 2, 2009. The Closing shall be held at the offices of Digirad Corporation, commencing at 10:00 A.M., local time or at such other date, time or place as
may be agreed to by Buyer and the Seller (the “Closing Date”). 
 3.2    Deliveries at the
Closing. At the Closing, in addition to the other actions contemplated elsewhere herein: 
 (a)    Seller shall
deliver, or cause to be delivered, to Buyer the following: 
 (i)    the License Agreement, duly executed by Seller;

 (ii)    the Bill of Sale, Assignment and Assumption Agreement, duly executed by Seller; 
  

  

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 (iii)    the Service Contracts, duly executed by Seller; 
 (iv)    copies of the resolutions of the Board of Directors of Digirad Corporation and DIS authorizing the execution, delivery and
performance of this Agreement and the other agreements and instruments referred to herein; 
 (v)    pink slips for
[***] vans (which shall be provided after the Closing as soon as they are available); 
 (vi)    those closing
deliverables set forth in Section 7.1; and 
 (vii)    such other documents and instruments as Buyer may reasonably
request to effectuate or evidence the transactions contemplated by this Agreement. 
 (b)    Buyer shall deliver, or
shall cause to be delivered, to Seller the items described below: 
 (i)    the License Agreement, duly executed by
Buyer; 
 (ii)    the Bill of Sale, Assignment and Assumption Agreement, duly executed by Buyer; 
 (iii)    the Service Contracts, duly executed by Buyer; 
 (iv)    the Notes, duly executed by Buyer; 
 (v)    the Security Agreement of even date herewith; 
 (vi)    the
cash portion of the Purchase Price to DIS in cash or immediately available funds; and 
 (vii)    such other documents
and instruments as Seller may reasonably request to effectuate or evidence the transactions contemplated by this Agreement. 
 ARTICLE 4

 REPRESENTATIONS AND WARRANTIES REGARDING SELLER 
 As of the date hereof and as of the Closing Date, the Seller hereby represents and warrants to Buyer, subject to such exceptions as are specifically disclosed in writing (and that reference the specific representation
that they qualify) in the disclosure letter supplied by the Seller to Buyer dated as of the date hereof and certified by a duly authorized officer of the Seller (the “Seller Disclosure Schedule”), as follows: 
  

  

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 4.1    Organization and Good Standing. The Seller is a corporation duly
established, validly existing and in good standing under the laws of the in which it is incorporated and has the power and authority to carry on the Business as presently conducted, to own the assets which it owns and to perform its obligations
hereunder. The Seller is duly qualified and in good standing in each jurisdiction where the character of its properties owned or leased or the nature of its activities makes such qualification necessary, except where the failure to be so qualified
would not have a Material adverse effect on such Seller. 
 4.2    Power and Authorization. The Seller has full
legal right, power and authority to enter into and perform its obligations under this Agreement and under the other agreements and documents (the “Seller Transaction Documents”) required to be delivered by it prior to or at
the Closing. This Agreement has been duly and validly executed and delivered by the Seller and constitutes the legal, valid and binding obligation of the Seller enforceable against it in accordance with its terms. When executed and delivered as
contemplated herein, each of the Seller Transaction Documents to which it is a party shall constitute the legal, valid and binding obligation of the Seller, enforceable against it in accordance with its terms; except as such enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by the availability of equitable remedies. 
  

  

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 4.3    Condition of Purchased Assets. Each of the Purchased Assets is in good
working order and Seller is not aware of any damage or defects in any of the Purchased Assets not detectable through visual inspection. 
 4.4    Consents. [***]. No consent or approval of, or registration, notification, filing and/or declarations with, any court, government or governmental agency or instrumentality, creditor, lessor, customer or
other person are required to be given or made by Seller or Buyer in connection with the execution, delivery and performance of this Agreement and the other agreements and instruments contemplated herein. 
 4.5    Litigation. There is no action, suit, proceeding at law or in equity, or any arbitration or any administrative or other
proceeding by or before, or, to the knowledge of the Seller, any investigation by, any governmental or other instrumentality or agency, pending, or, to the knowledge of the Seller, threatened, against or affecting the Purchased Assets. 

4.6    DIS Contracts. Each of the DIS Contracts is currently in effect, not in breach and is enforceable in accordance with
its terms. Each of the DIS Contracts is assignable by its terms without customer approval. To Seller’s Knowledge, there have been no oral or written amendments to any of the DIS Contracts that have not been disclosed to Buyer. Seller has made
available to Buyer a true and correct copy of each DIS Contract, as amended through the Closing Date. 
 4.7    No
Conflicts. 
 (a)    The execution, delivery and performance of this Agreement and the Seller Transaction Documents
by the Seller do not and will not (with or without the passage of time or the giving of notice): 
 (i)    violate or
conflict with the organizational documents of the Seller, or any law, statute, regulation, permit, license, certificate, judgment, order, award or other decision or requirement of any arbitrator, court, government or governmental agency or
instrumentality (collectively, “Laws”) binding upon such Seller; or 
 (ii)    result in,
require or permit the creation or imposition of any claim, lien, pledge, charge, security interest, equitable interest, option, mortgage, right of first refusal, condition, restriction of any kind, including any restriction on use, transfer, receipt
of income or exercise of any other attribute of ownership, or other encumbrance of any nature whatsoever (collectively, “Encumbrances”) of any nature upon any Purchased Asset. 
 (b)    There are no judicial, administrative or other governmental actions, proceedings or investigations pending or, to the
Seller’s Knowledge, threatened, that question any of the transactions contemplated by, or the validity of, this Agreement or any of the other agreements or instruments contemplated hereby or which, if adversely determined, would have an adverse
effect upon the ability of the Seller to enter into or perform its obligations under this Agreement. The Seller has not received any request from any governmental agency or instrumentality for information with respect to the transactions
contemplated hereby and has no obligation to obtain any governmental approval or consent. 
  

  

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 4.8    Title. The Seller has good title to the Purchased Assets owned by it
free and clear of any Encumbrance and all Purchased Assets owned by the Seller is in the possession or under the control of the Seller. 
 4.9    Full Disclosure. The information contained in the Schedules attached hereto and all written information provided to Buyer in the course of Buyer’s due diligence is true and correct. To the
Seller’s Knowledge, there is no fact that materially and adversely affects the Business or the Purchased Assets which has not been set forth in this Agreement or in the schedules, exhibits, certificates or statements in writing furnished in
connection with the transactions contemplated by this Agreement. 
 ARTICLE 5 
 REPRESENTATIONS AND WARRANTIES OF BUYER 
 Buyer hereby represents and warrants to the
Seller as of the date of this Agreement as follows: 
 5.1    Organization and Good Standing. Buyer is a
corporation duly organized and in good standing under the laws of California and has all the requisite power and authority as a corporation to carry on its business as presently conducted, to own and lease the assets which it owns and leases and to
perform its obligations hereunder. 
 5.2    Power and Authorization. Buyer has the full legal right, power and
authority as a corporation to enter into and perform its obligations under this Agreement and under the other agreements and documents required to be delivered by it prior to or at the Closing (the “Buyer Transaction
Documents”). The execution, delivery and performance by Buyer of this Agreement and the Buyer Transaction Documents have been duly authorized by all necessary action as a corporation. This Agreement has been duly and validly executed
and delivered by Buyer. This Agreement constitutes, and when executed and delivered as contemplated herein, each of the Buyer Transaction Documents shall constitute, the legal, valid and binding obligation of Buyer, enforceable against it in
accordance with its terms; except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by the availability of equitable remedies. 

 

  

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 5.3    No Conflicts. 
 (a)    The execution, delivery and performance of this Agreement and the Buyer Transaction Documents do not and will not (with or
without the passage of time or the giving of notice): 
 (i)    violate or conflict with Buyer’s organizational
documents or any law binding upon Buyer; or 
 (ii)    violate or conflict with, result in a breach of, or constitute a
default or otherwise cause any loss of benefit under any agreement or other obligation to which Buyer is a party. 
 (b)    No consents or approvals of, or registrations, notifications, filings and/or declarations with, any court, government or governmental agency or instrumentality, creditor, lessor or other person are required to be
given or made by Buyer in connection with the execution, delivery and performance of this Agreement and the other agreements and instruments contemplated herein, other than such as have been obtained or made or which the failure to obtain would not
have a Material adverse affect on Buyer’s ability to consummate the transactions contemplated herein and therein. 
 (c)    There are no judicial, administrative or other governmental actions, proceedings or investigations pending or, to the Buyer’s Knowledge, threatened, that question any of the transactions contemplated by, or
the validity of, this Agreement or any of the other agreements or instruments contemplated hereby or which, if adversely determined, would have a adverse effect upon the ability of Buyer to enter into or perform its obligations under this Agreement
or any of the other agreements or instruments contemplated hereby. Buyer has not received any request from any governmental agency or instrumentality for information with respect to the transactions contemplated hereby. 
 5.4    Brokers. No broker, investment banker, financial advisor or other Person is entitled to any broker’s,
finder’s, financial advisor’s or other similar fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Buyer. 
 ARTICLE 6 
 PRE-CLOSING COVENANTS 

6.1    Affirmative Covenants of Seller. The Seller hereby covenants and agrees that, prior to the Closing Date, unless
otherwise expressly contemplated by this Agreement or consented to in writing by Buyer, the Seller will operate its Business within the Territory in the ordinary course consistent with past practice. 
  

  

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 6.2    Representations True. The Seller shall not take any action or omit to
use its commercially reasonable efforts to take any action to the extent such action or omission might result in any of the representations or warranties being inaccurate or incorrect on and as of the Closing Date. 
 6.3    Confidentiality. Each party hereto agrees that this Agreement and every provision hereof shall be strictly confidential
and shall not be disclosed to any other person other than: (i) disclosure to potential officers of Buyer each of whom shall be bound by a confidentiality agreement consistent herewith; (ii) with the written consent of the parties;
(iii) if it is required by law; (iv) if it is made pursuant to existing contractual obligations; or (v) if it is required by any rule or regulation of any securities exchange or regulatory or governmental entity whether or not this
has the force of law. 
 6.4    Consents. The Seller shall promptly apply for or otherwise seek and use its
commercially reasonable efforts to obtain all consents and approvals required to be obtained by it for the consummation of the transactions contemplated hereby, including all consents, waivers or approvals from the third parties to the contracts set
forth on Schedule 1.1(b). 
 6.5    Further Assurances. Each of the parties agrees to use its commercially
reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other parties in doing, all things necessary, proper or advisable to consummate and make effective, in the most
expeditious manner practicable, the transactions contemplated by this Agreement, including using commercially reasonable efforts to accomplish the following: (a) the taking of all acts necessary to cause the conditions precedent set forth in
ARTICLE 7 to be satisfied, (b) the defending of any suits, claims, actions, investigations or proceedings, whether judicial or administrative, challenging this Agreement or the consummation of the transactions contemplated hereby, including
seeking to have any stay or temporary restraining order entered by any court or other governmental entity vacated or reversed and (c) the execution or delivery of any additional instruments necessary to consummate the transactions contemplated
by, and to fully carry out the purposes of, this Agreement. 
 6.6 [***] 
 ARTICLE 7 
 CLOSING CONDITIONS 
 7.1    Conditions Precedent to Buyer’s Obligation to Close. The following shall be conditions precedent to the obligation
of Buyer to close hereunder, any of which may be waived in whole or in part by Buyer: 
 (a)    The representations and
warranties of the Seller contained in this Agreement that are not qualified by materiality, material adverse effect or other similar standards, is now and, except as to those expressly limited to the date hereof, as of and at all times after the
date of this Agreement to and including the time of Closing shall be, true and correct in all respects. Each of the representations and warranties of Seller contained in this Agreement that are qualified by materiality, material adverse effect or
other similar standards, is now and, except as to those expressly limited to the date hereof, as of and at all times after the date of this Agreement to and including the time of Closing shall be, true and correct in all respects; 
  

  

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 (b)    Each of the agreements, covenants and undertakings of the Seller contained in
this Agreement, except for those calling for performance after Closing, will have been fully performed and complied with both individually and collectively in all material respects at or before Closing; 
 (c)    The Board of Directors of Digirad Corporation and DIS shall have approved the execution, delivery and performance of this
Agreement by appropriate resolution; 
 (d)    All consents, authorizations, orders and approvals of any governmental
commission, if any, or Person required in connection with the execution, delivery and performance of this Agreement shall have been obtained or made; 
 (e)    All of the Purchased Assets shall have been released from any and all claims, liens, pledges, options, charges, easements, security interests, deeds of trust, mortgages, encumbrances or
other rights of third parties to the sole satisfaction of Buyer; and 
 (f)    All documents required to be delivered by
the Seller at or prior to Closing shall have been delivered or shall be tendered at the time and place of Closing. 
 7.2    Conditions Precedent to the Seller’s Obligation to Close. The following shall be conditions precedent to the obligation of the Seller to close hereunder, any of which may be waived in whole or in party
by the Seller: 
 (a) Each of the representations and warranties of Buyer contained in this Agreement that are not qualified by materiality,
material adverse effect or other similar standards, is now and, except as to those expressly limited to the date hereof, as of and at all times after the date of this Agreement to and including the time of Closing shall be, true and correct in all
respects. Each of the representations and warranties of Buyer contained in this Agreement that are qualified by materiality, material adverse effect or other similar standards, is now and, except as to those expressly limited to the date hereof, as
of and at all times after the date of this Agreement to and including the time of Closing shall be, true and correct in all respects; 
 (b)
Each of the agreements, covenants, and undertakings of Buyer contained in this Agreement, except for those calling for performance after Closing, will have been fully performed and complied with both individually and collectively in all material
respects at or before Closing; and 
  

  

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 (c)    All documents and payments required to be delivered by Buyer at or prior to
Closing shall have been delivered or shall be tendered at the time and place of Closing. 
 ARTICLE 8 
 POST-CLOSING COVENANTS 
 8.1    [***]. 
 8.2    Indemnification. Seller and Buyer (the
“Indemnifying Party”) shall indemnify and hold harmless the other party (each, an “Indemnified Party”) and each of its affiliates, directors, officers, employees, attorneys, agents and representatives
(collectively, the “Affiliated Parties”) in respect of any and all claims, losses, damages, liabilities, declines in value, penalties, interest, costs and expenses (including, without limitation, any attorneys’,
accountants’ and consultants’ fees and other expenses) reasonably incurred by the Indemnified Party and the Affiliated Parties in connection with each and all of the following: 
 (a)    Any breach of any representation or warranty made by the Indemnifying Party in this Agreement; 
 (b)    Any breach of any covenant, agreement or obligation of the Indemnifying Party contained in this Agreement or any other
instrument contemplated by this Agreement; and 
 (c)    Any liability relating to the Purchased Assets or the Business
arising from the Indemnifying Party’s conduct of the Business prior to the Closing Date. 
 8.3    RAM
License. Not later than [***] business days from the Closing Date, DIS shall file the necessary application to transfer or assign the relevant radioactive pharmaceutical licenses (the “RAM Transfer”) for the Hayward and
Fresno locations (the “RAM Licenses”) to Buyer, as permitted by applicable law. [***] The parties agree to cooperate fully and use commercially reasonable efforts to transfer the RAM license to Buyer in accordance with
applicable law. [***]. 
 ARTICLE 9 
 TERMINATION 
 9.1    Termination. This Agreement may be terminated and the transactions contemplated
hereby abandoned at any time prior to the Closing Date by notice executed and delivered by Buyer or the Seller. 
 A termination pursuant to
this Section 9.1 shall be effected by delivery of written notice of such termination by the terminating party to the other party. Where action is taken to terminate this Agreement pursuant to this Section 9.1, it shall be
sufficient for such action to be authorized by the board of the party taking such action. 
  

  

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 9.2    Effect of Termination. Any termination of this Agreement permitted
under Section 9.1 above will be effective immediately upon the delivery of written notice of the terminating party to the other parties hereto. In the event of the termination of this Agreement as provided in Section 9.1,
this Agreement shall be of no further force or effect, except as set forth in Section 6.3, this Section 9.2 and ARTICLE 10 (general provisions, including expenses), each of which shall survive the termination of this Agreement. 

ARTICLE 10 
 MISCELLANEOUS 
 10.1    Survival of Representations and Warranties. Except as otherwise expressly provided in this Agreement, none of the
representations and warranties made by the parties in this Agreement and in the certificates, documents and schedules delivered pursuant hereto shall survive the Closing of the transactions contemplated hereunder. 
 10.2    Further Assurances. Each party hereto shall use commercially reasonable efforts to comply with all requirements
imposed hereby on such party and to cause the transactions contemplated hereby to be consummated as contemplated hereby and shall, from time to time and without further consideration, either before or after the Closing Date, execute such further
instruments and take such other actions as any other party hereto shall reasonably request in order to fulfill its obligations under this Agreement and to effectuate the purposes of this Agreement and to provide for the orderly and efficient
transition of the ownership of the Purchased Assets to Buyer. 
 10.3    Costs and Expenses. Except as otherwise
expressly provided herein, each party shall bear its own expenses in connection herewith. Any and all transfer, sales, use, documentary and similar taxes and recording and filing fees incurred in connection with the transactions contemplated herein
shall be borne by Buyer (and not by Seller). 
 10.4    Notices. All notices or other communications permitted or
required under this Agreement shall be in writing and shall be sufficiently given if and when hand delivered to the persons set forth below or if sent by documented overnight delivery service or registered or certified mail, postage prepaid, return
receipt requested, or by telegram, facsimile, receipt acknowledged, at the address of the party first set forth above or to such other person or persons and/or at such other address or addresses as shall be furnished in writing by any party hereto
to the others. Any such notice or communication shall be deemed to have been given as of the date received, in the case of personal delivery, or on the date shown on the receipt or confirmation therefore in all other cases. 
  

									
	Seller:	  	 Digirad Imaging Solutions, Inc.
 Attn: President
 13950 Stowe Dr.
 Poway, CA
92064
	  		  	
		  	  		  	
		  	  		  	
		  	  		  	

  

  

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	 With Copy to:
	  	Martin J. Waters, Esq.
		  	Wilson Sonsini Goodrich & Rosati PC
		  	12235 El Camino Real
		  	Suite 200
		  	San Diego, California 92130
		
	 Buyer:
	  	MD Office Solutions
		  	[***]
		  	Attn: Michael Keenan
		
	 With Copy to
	  	Lisa A. Sanderson, Esq.
		  	Juniper Sanderson Wiggins LLP
		  	7979 Ivanhoe Avenue, Su. 400A
		  	La Jolla, CA 92037

 10.5    Assignment and Benefit. 
 (a)    No party to this Agreement shall assign this Agreement or any rights hereunder, or delegate any obligations hereunder, without
the prior written consent of the other party, except that DIS or Digirad may assign this contract in connection with a merger or other change of control. Subject to the foregoing, this Agreement and the rights and obligations set forth herein shall
inure to the benefit of, and be binding upon, the parties hereto, and each of their respective successors, heirs and assigns. 
 (b)    This Agreement shall not be construed as giving any person, other than the parties hereto and their permitted successors, heirs and assigns, any legal or equitable right, remedy or claim under or in respect of
this Agreement or any of the provisions herein contained, this Agreement and all provisions and conditions hereof being intended to be, and being, for the sole and exclusive benefit of such parties, and permitted successors, heirs and assigns and
for the benefit of no other person or entity. 
 10.6    Amendment, Modification and Waiver. The parties may amend
or modify this Agreement in any respect. Any such amendment or modification shall be in writing signed by Buyer and Seller. The waiver by a party of any breach of any provision of this Agreement shall not constitute or operate as a waiver of any
other breach of such provision or of any other provision hereof, nor shall any failure to enforce any provision hereof operate as a waiver of such provision or of any other provision hereof. 
 10.7    Governing Law. This Agreement is made pursuant to, and shall be construed and enforced in accordance with, the laws of
the State of California without giving effect to otherwise applicable principles of conflicts of law. 
  

  

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 10.8    Section Headings and Defined Terms. The section headings contained
herein are for reference purposes only and shall not in any way affect the meaning and interpretation of this Agreement. The terms defined herein and in any agreement executed in connection herewith include the plural as well as the singular and the
singular as well as the plural, and the use of masculine pronouns shall include the feminine and neuter. Except as otherwise indicated, all agreements defined herein refer to the same as from time to time amended or supplemented or the terms thereof
waived or modified in accordance herewith and therewith. 
 10.9    Severability. The invalidity or
unenforceability of any particular provision, or part of any provision, of this Agreement shall not affect the other provisions or parts hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provisions or
parts were omitted. 
 10.10    Counterparts. This Agreement may be executed in two (2) or more counterparts,
each of which shall be deemed an original (including facsimile signatures); and any person may become a party hereto by executing a counterpart hereof, but all of such counterparts together shall be deemed to be one and the same instrument. It shall
not be necessary in making proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts. 
 10.11    Entire Agreement. This Agreement, together with the schedules and the agreements, exhibits, schedules and certificates referred to herein or delivered pursuant hereto, constitute the entire agreement
between the parties hereto with respect to the purchase and sale of the Purchased Assets and supersede all prior agreements and understandings, relating to the matters specifically addressed herein and therein. 
 10.12    Certain Definitions. The following terms used in this Agreement shall have the meaning set forth below unless the
context otherwise clearly indicates: 
 (a)    “Buyer’s Knowledge” means the actual
knowledge of Michael Keenan. 
 (b)    “Material” means (i) with respect to any item, fact,
condition or circumstance of a party, that such item, fact, condition or circumstance would cause an adverse effect of [***] Dollars individually or [***] Dollars in the aggregate with other items, facts, conditions or circumstances affecting such
party or more to the other party subsequent to the closing of the transactions contemplated by this Agreement or (ii) with respect to any contract or series of related contracts that in the aggregate, represents the payment or receipt by any
party, thereto of [***] Dollars individually or [***] Dollars in the aggregate or more. 
 (c)    “Person” means any individual, partnership, corporation, business trust, joint stock company, trust, unincorporated association, joint venture or other entity of whatever nature.

 (d)    Seller’s Knowledge” means the actual knowledge of any of [***] obtained in the ordinary
course of the performance of their respective duties as officers of the Seller. 
  

  

	[***]	DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION 

 CONFIDENTIAL TREATMENT REQUESTED BY DIGIRAD CORPORATION 

 (e)    “Territory” means the following counties [***].

 [signatures on following page] 
  

  

	[***]	DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION 

 CONFIDENTIAL TREATMENT REQUESTED BY DIGIRAD CORPORATION 

 IN WITNESS WHEREOF, each of the parties hereto has duly executed this Agreement, all as of the date first
above written. 
  
  

			
	SELLER
	
	DIGIRAD IMAGING SOLUTIONS, INC.
		
	By:	 	/s/    Todd Clyde         
	Name:	 	Todd Clyde
	Title:	 	President

  

			
	DIGIRAD CORPORATION, solely with respect to specific representations and covenants made by Digirad Corporation herein
		
	By:	 	/s/    Todd Clyde         
	Name:	 	Todd Clyde
	Title:	 	CEO

  

			
	BUYER
	
	 MD OFFICE SOLUTIONS,
 a California
corporation

		
	By:	 	/S/    MICHAEL KEENAN        
		 	Michael Keenan, President/CEO

 Exhibit A 
 BILL OF SALE 
 This BILL OF SALE (this “Bill of Sale”) is delivered as
of February 2, 2009, by Digirad Imaging Solutions, Inc., a Delaware corporation (the “Transferor”), and is the bill of sale contemplated by that certain Asset Purchase Agreement, dated as February 2, 2009 (the
“Agreement”), by and among MD Office Solutions, a California corporation (the “Transferee”), and the Transferor. Capitalized terms used herein and not otherwise defined herein shall have the meanings
given to them in the Agreement. 
 For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Transferor, intending to be legally bound, does hereby sell, assign, transfer and deliver to, the Transferee and its successors and assigns free and clear of any Encumbrances, all right, title and interest in and to all of the Purchased Assets, to
have and to hold the same for its own use forever. 
 The Transferor shall execute, deliver, record or file any and all releases, affidavits,
waivers, notices or other documents as may reasonably be requested by the Transferee to implement the sale, assignment, transfer and delivery of the Purchased Assets of the Transferor to the Transferee. 
 [SIGNATURE ON NEXT PAGE] 
 IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Bill of Sale as of the date first above written. 
 DIGIRAD IMAGING SOLUTIONS, INC. 
 By: /s/ TODD CLYDE

 Name: Todd Clyde 
 Title: President 

 Exhibit B 
 ASSIGNMENT AND ASSUMPTION AGREEMENT 
 This ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Assignment and
Assumption Agreement”) is made and entered into as of February 2, 2009, by and among Digirad Imaging Solutions, Inc., a Delaware corporation (“Seller”), MD Office Solutions, a California corporation
(“Buyer”). 
 WHEREAS, Seller and Buyer are parties to that certain Asset Purchase Agreement dated as of February 2, 2009
(the “Purchase Agreement”), pursuant to which, among other things, Seller agreed to sell and assign the Purchased Assets (including the DIS Contracts) to Buyer. 
 WHEREAS, the parties hereto desire to execute this Assignment and Assumption Agreement to further evidence the assignment from the Seller to Buyer of all
of the Seller’s right, title and interest in and to the DIS Contracts. 
 NOW, THEREFORE, for and in consideration of the premises and
the mutual covenants contained herein, and for other good and valuable consideration, the receipt, adequacy and legal sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties do hereby agree as follows:

 1. Capitalized Terms. Except as otherwise provided herein, all capitalized terms used and not defined herein shall have the
respective meanings assigned to such terms in the Purchase Agreement. 
 2. Assignment. In accordance with and subject to the terms of
the Purchase Agreement, the Seller hereby sells, conveys, transfers, assigns and delivers to Buyer, all of the Seller’s right, title and interest in and to the DIS Contracts. 
 3. Acceptance and Assumption. In accordance with and subject to the terms of the Purchase Agreement, Buyer hereby purchases and accepts the
conveyance, transfer and assignment of the Seller’s right, title and interest in and to the DIS Contracts; provided however, Buyer does not assume any liability arising out of the acts and omissions of Seller in connection with the DIS
Contracts prior to the Closing Date. 
 4. No Third Party Beneficiaries. Nothing in this Assignment and Assumption Agreement, express
or implied, is intended or shall be construed to confer upon, or give to, any person other than Buyer, the Seller and their respective successors and assigns, any remedy or claim under or by reason of this Assignment and Assumption Agreement on any
terms, covenants or condition hereof, and all the terms, covenants and conditions, promises and agreements in this Assignment and Assumption Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors and
assigns. 
 5. Purchase Agreement. This Assignment and Assumption Agreement does not amend or otherwise modify or limit any of the
provisions of the Purchase Agreement, and in the event of any conflict between the terms of the Purchase Agreement and the terms hereof, the Purchase Agreement shall supersede and control this Assignment and Assumption Agreement in all respects.

 6. Miscellaneous. 
 (a)
Headings. The section headings used herein are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Assignment and Assumption Agreement. 
 (b) Governing Law. This Assignment and Assumption Agreement shall be governed by and construed in accordance with the laws of the State of
California without regard to principles of conflict of laws. 
 (c) Counterparts. This Assignment and Assumption Agreement may be
executed in any number of counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. 
 (d) Amendments. No amendment or modification of this Assignment and Assumption Agreement shall be effective unless it is set forth in writing and signed by each of the parties hereto. 
 (e) Successors and Assigns. This Assignment and Assumption Agreement is executed by, and shall be binding upon, the parties hereto and their
respective successors and assigns for the uses and purposes above set forth and referred to, as of the date hereof. 
 [Remainder of This
Page Intentionally Left Blank] 
 IN WITNESS WHEREOF, the parties have caused this Assignment and Assumption Agreement to be duly
executed and delivered as of the date first written above. 
 BUYER: 
 MD OFFICE SOLUTIONS 
 /s/ MICHAEL KEENAN

 Signature 
 Name: Michael
Keenan 
 Title: President / CEO 
 SELLER: 
 DIGIRAD IMAGING SOLUTIONS, INC. 
 /s/ TODD CLYDE 
 Signature 
 Name: Todd Clyde 
 Title: President 

 Schedule 1.1(a) 
 [***] [one page omitted] 

 Schedule 1.1(b) 
 [***] [two pages omitted]Form of Change of Control Agreement for Executives of Precision Castparts Corp.

 Exhibit 10.1 
 Form for Change of Control Agreement 
 [Executive’s Name] 
 [Job Title] 
 [Company Address] 
 [City, State, Postal Code] 
 Dear
                    : 
 Precision
Castparts Corp. (the “Company”) considers it essential to the best interests of its stockholders to foster the continuous employment of key management personnel. In this connection, the Board of Directors of the Company (the
“Board”) recognizes that, as is the case with many publicly held corporations, the possibility of a change in control of the Company may exist and that such possibility, and the uncertainty and questions which it may raise among
management, may result in the departure or distraction of management personnel to the detriment of the Company and its stockholders. 
 The
Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company’s management, including yourself, to their assigned duties without distraction in the face
of potentially disturbing circumstances arising from the possibility of a change in control of the Company. 
 In order to induce you to
remain in the employ of the Company, the Company agrees that you shall receive the severance benefits set forth in this letter agreement (the “Agreement”) in the event your employment with the Company is terminated under the circumstances
described below subsequent to a “change in control of the Company” (as defined in Section 2). The Company and you have entered into a prior letter agreement regarding change in control severance benefits dated
                     , 200  . Upon your signature of this Agreement, the prior letter agreement shall be amended and
restated in its entirety in the form of this Agreement. 
 1. Term of Agreement. This Agreement shall commence on the date you agree
to its terms (as indicated on the signature page of this Agreement), and shall continue in effect through December 31, 2009; provided, however, that commencing on January 1, 2010, and each January 1 thereafter, the term of this
Agreement shall automatically be extended for one additional year unless, not later than September 30 of the preceding year, the Company shall have given notice that it does not wish to extend this Agreement (provided that no such notice may be
given during the pendency of a potential change in control of the Company, as defined in Section 2); and provided, further, that if a change in control of the Company, as defined in Section 2, shall have occurred during the original or
extended term of this Agreement, this Agreement shall continue in effect for a period of twenty-four (24) months beyond the month in which such change in control occurred. 

 [Executive’s Name] 
                         , 20     
 Page 2 
  

 2. Change in Control; Potential Change in Control. 
 (i) No benefits shall be payable hereunder unless there shall have been a change in control of the Company, as set forth below. For
purposes of this Agreement, a “change in control of the Company” shall be deemed to have occurred if: 
 (a) any
“person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than the Company, any trustee or other fiduciary holding securities under an employee
benefit plan of the Company, or any company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), is or becomes the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s then outstanding securities; 
 (b) during any period of two consecutive years, individuals who at the beginning of such period constituted a majority of the Board of
Directors cease for any reason to constitute a majority thereof unless the nomination or election of such new directors was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such
period; 
 (c) the stockholders of the Company approve a merger or consolidation of the Company with any other company or
statutory plan of exchange involving the Company (“Merger”), other than (1) a Merger which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after the Merger or (2) a
Merger effected to implement a recapitalization of the Company (or similar transaction) in which no “person” (as hereinabove defined) acquires more than 20% of the combined voting power of the Company’s then outstanding securities; or

 (d) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale,
lease, exchange or other transfer (in one transaction or a series of related transactions) or disposition by the Company of all or substantially all of the Company’s assets. 
 Notwithstanding the foregoing, unless otherwise determined by the Board, no change in control of the Company shall be deemed to have occurred if (i) you are a member of a management group which first announces a
proposal which constitutes a potential change in control (as defined in this Section 2) which proposal (including any modifications thereof) is ultimately successful or (ii) you acquire an equity interest in the entity which ultimately
acquires the Company pursuant to the transaction described in (i) of this paragraph. 

 [Executive’s Name] 
                         , 20     
 Page 3 
  

 (ii) For purposes of this Agreement, a “potential change in control” of the
Company shall be deemed to have occurred if: 
 (a) the Company enters into an agreement, the consummation of which would
result in the occurrence of a change in the control of the Company; 
 (b) any person (including the Company) publicly
announces an intention to take or to consider taking actions which if consummated would constitute a change in control of the Company; 
 (c) any person, other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company (or a company owned, directly or indirectly, by the stockholders of the Company in substantially
the same proportions as their ownership of stock of the Company), who is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 9.5% or more of the combined voting power of the Company’s then
outstanding securities, increases his beneficial ownership of such securities by 3 percentage points or more over the percentage so owned by such person on the date hereof; or 
 (d) the Board adopts a resolution to the effect that, for purposes of this Agreement, a potential change in control of the Company has
occurred. 
 (iii) You agree that, subject to the terms and conditions of this Agreement, in the event of a potential change
in control of the Company, you will remain in the employ of the Company until the earliest of (a) a date which is 270 days from the occurrence of such potential change in control of the Company, (b) the termination by you of your
employment by reason of Disability as defined in Section 3(ii), or (c) the date on which you first become entitled under this Agreement to receive the benefits provided in Section 4(iii) below. 
 3. Termination Following Change in Control. 
 (i) General. If any of the events described in Section 2 constituting a change in control of the Company shall have occurred, you shall be entitled to the benefits provided in Section 4(iii) upon the
subsequent termination of your employment within 24 months following the change in control, unless such termination is (a) because of your death or Disability, (b) by the Company for Cause, or (c) by you other than for Good Reason. In
the event your employment with the Company is terminated for any reason and subsequently a change in control of the Company occurs, you shall not be entitled to any benefits hereunder. 
 (ii) Disability. If, as a result of your incapacity due to physical or mental illness, you shall have been absent from the
full-time performance of your duties with the Company for six (6) consecutive months, and within thirty (30) days after written notice of termination is given you shall not have returned to the full-time performance of your duties, your
employment may be terminated for “Disability.” 

 [Executive’s Name] 
                         , 20     
 Page 4 
  

 (iii) Cause. Termination by the Company of your employment for
“Cause” shall mean termination (a) upon the willful and continued failure by you to substantially perform your duties with the Company (other than any such failure resulting from your incapacity due to physical or mental illness or
any such actual or anticipated failure after the issuance of a Notice of Termination (as defined in Subsection 3(v)) by you for Good Reason (as defined in Subsection 3(iv)), after a written demand for substantial performance is delivered to you by
the Board, which demand specifically identifies the manner in which the Board believes that you have not substantially performed your duties, or (b) the willful engaging by you in conduct which is demonstrably and materially injurious to the
Company, monetarily or otherwise. For purposes of this Subsection, no act, or failure to act, on your part shall be deemed “willful” unless done, or omitted to be done, by you not in good faith and without reasonable belief that your
action or omission was in or not opposed to the best interest of the Company. Notwithstanding the foregoing, you shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to you a copy of a resolution
duly adopted by the affirmative vote of not less than three-quarters (3/4) of the entire membership of the Board at a meeting of the Board (after reasonable notice to you and an opportunity for you, together with your counsel, to be heard
before the Board), finding that in the good faith opinion of the Board you were guilty of conduct set forth above in this Subsection and specifying the particulars thereof in detail. 
 (iv) Good Reason. You shall be entitled to terminate your employment for Good Reason provided you give Notice of Termination (as
defined in Section 3(v)) no later than 90 days after notice to you of a circumstance constituting Good Reason. For purposes of this Agreement, “Good Reason” shall mean, without your express written consent, the occurrence after a
change in control of the Company of any of the following circumstances unless such circumstances are fully corrected prior to the Date of Termination (as defined in Section 3(vi)) specified in the Notice of Termination given in respect thereof:

 (a) the assignment to you of any duties inconsistent (except in the nature of a promotion) with the position in the Company
that you held immediately prior to the change in control of the Company, or an adverse alteration in the nature or status of your position or responsibilities or the conditions of your employment from those in effect immediately prior to such change
in control; 
 (b) a reduction by the Company in your annual base salary as in effect on the date hereof or as the same may be
increased from time to time except for across-the-board salary reductions similarly affecting all management personnel of the Company and all management personnel of any person in control of the Company; 

 [Executive’s Name] 
                         , 20     
 Page 5 
  

 (c) the Company’s requiring you to be based more than 50 miles from the
Company’s offices at which you are principally employed immediately prior to the date of the change in control except for required travel on the Company’s business to an extent substantially consistent with your present business travel
obligations; 
 (d) the failure by the Company to pay to you any portion of your current compensation or compensation under
any deferred compensation program of the Company; 
 (e) the failure by the Company to continue in effect any material
compensation or benefit plan in which you participate immediately prior to the change in control of the Company, unless an equitable and reasonably comparable arrangement (embodied in an ongoing substitute or alternative plan) has been made with
respect to such plan, or the failure by the Company to continue your participation therein (or in such substitute or alternative plan) on a basis not materially less favorable, both in terms of the amount of benefits provided and the level of your
participation relative to other participants, than existed at the time of the change in control of the Company; 
 (f) the
failure by the Company to continue to provide you with benefits substantially similar to those enjoyed by you under any of the Company’s life insurance, medical, dental, accident, or disability plans in which you were participating at the time
of the change in control of the Company, the taking of any action by the Company which would directly or indirectly materially reduce any of such benefits, or the failure by the Company to provide you with the number of paid vacation days to which
you are entitled on the basis of your years of service with the Company in accordance with the Company’s normal vacation policy in effect at the time of the change in control of the Company; 
 (g) the failure of the Company to obtain a satisfactory agreement from any successor to assume and agree to perform this Agreement, as
contemplated in Section 5 hereof; or 
 (h) any purported termination of your employment that is not effected pursuant to
a Notice of Termination satisfying the requirements of Subsection (v) hereof (and, if applicable, the requirements of Subsection (iii) hereof), which purported termination shall not be effective for purposes of this Agreement. 

For purposes of this Subsection (iv), a good faith determination of “Good Reason” made by you shall be conclusive. Your right to terminate your employment
pursuant to this Subsection shall not be affected by your incapacity due to physical or mental illness until your employment is terminated pursuant to Section 3(ii). 

 [Executive’s Name] 
                         , 20     
 Page 6 
  

 (v) Notice of Termination. Any purported termination of your employment by the
Company or by you shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 6. “Notice of Termination” shall mean a notice that shall indicate the specific termination provision in
this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision so indicated. 
 (vi) Date of Termination, Etc. “Date of Termination” shall mean (a) if your employment is terminated for
Disability, thirty (30) days after Notice of Termination is given (provided that you shall not have returned to the full-time performance of your duties during such thirty (30)-day period), and (b) if your employment is terminated pursuant
to Subsection (iii) or (iv) hereof or for any other reason (other than Disability), the date specified in the Notice of Termination (which, in the case of a termination for Cause shall not be less than thirty (30) days from the date
such Notice of Termination is given, and in the case of a termination for Good Reason shall not be less than thirty (30) nor more than sixty (60) days from the date such Notice of Termination is given); provided, however, that if within
fifteen (15) days after any Notice of Termination is given, or, if later, prior to the Date of Termination (as determined without regard to this proviso), the party receiving such Notice of Termination notifies the other party that a dispute
exists concerning the termination, then the Date of Termination shall be the date on which the dispute is finally determined, either by mutual written agreement of the parties or by a binding arbitration award; and provided, further, that the Date
of Termination shall be extended by a notice of dispute only if such notice is given in good faith and the party giving such notice pursues the resolution of such dispute with reasonable diligence. Notwithstanding the pendency of any dispute, the
Company will continue to pay you your full compensation in effect when the notice giving rise to the dispute was given (including, but not limited to, base salary) and continue you as a participant in all compensation, benefit and insurance plans in
which you were participating when the notice giving rise to the dispute was given, until the dispute is finally resolved in accordance with this Subsection. Amounts paid under this Subsection are in addition to all other amounts due under this
Agreement, and shall not be offset against or reduce any other amounts due under this Agreement and shall not be reduced by any compensation earned by you as the result of employment by another employer. You shall not be obligated to perform any
services after the Date of Termination that would prevent the termination of your employment on such Date of Termination from qualifying as a “separation from service” as defined in Treasury Regulations §1.409A-1(h). 
 4. Compensation Upon Termination or During Disability. Following a change in control of the Company, you shall be entitled to the following
benefits during a period of disability, or upon termination of your employment, as the case may be, provided that such period or termination occurs during the term of this Agreement: 
 (i) During any period that you fail to perform your full-time duties with the Company as a result of incapacity due to physical or mental
illness, you shall continue to receive your base salary at the rate in effect at the commencement of any such period, together with all compensation payable to you under the Company’s disability plan or program or other similar plan during such
period, until this Agreement is terminated pursuant to Section 3(ii) hereof. 

 [Executive’s Name] 
                         , 20     
 Page 7 
  

 Thereafter, or in the event your employment shall be terminated by reason of your death, your benefits shall be
determined under the Company’s retirement, insurance and other compensation programs then in effect in accordance with the terms of such programs. 
 (ii) If your employment shall be terminated by the Company for Cause or by you other than for Good Reason, the Company shall pay you your full base salary through the Date of Termination at the rate in effect at the
time Notice of Termination is given, plus all other amounts to which you are entitled under any compensation plan of the Company at the time such payments are due, and the Company shall have no further obligations to you under this Agreement.

 (iii) If your employment by the Company should be terminated by the Company other than for Cause or Disability or if you
should terminate your employment for Good Reason, you shall be entitled to the benefits provided below: 
 (a) the Company
shall pay to you your full base salary through the Date of Termination at the rate in effect at the time Notice of Termination is given plus all other amounts to which you are entitled under any compensation plan of the Company, at the time such
payments are due; 
 (b) in lieu of any further salary payments to you for periods subsequent to the Date of Termination, the
Company shall pay as severance pay to you, at the time specified in Subsection (v), a lump sum severance payment (together with the payments provided in paragraphs (d), (e) and (f) below, the “Severance Payments”) equal to 3
times the sum of (1) the greater of (i) your annual rate of base salary in effect on the Date of Termination or (ii) your annual rate of base salary in effect immediately prior to the change in control of the Company and (2) the
greater of (i) the average of the last three annual bonuses (annualized in the case of any bonus paid with respect to a partial year) paid to you preceding the Date of Termination or (ii) your target bonus under the Company’s
executive performance compensation plans in which you participate for the year in which such change in control occurs; 
 (c)
the Company shall pay to you all legal fees and expenses incurred by you as a result of such termination, including all such fees and expenses, if any, incurred in contesting or disputing any such termination or in seeking to obtain or enforce any
right or benefit provided by this Agreement (other than any such fees or expenses incurred in connection with any such claim which is determined to be frivolous) or in connection with any tax audit or proceeding to the extent attributable to the
application of section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”); and 
 (d) for a
thirty-six (36) month period after such termination, the Company shall arrange to provide you with life, accident and health insurance benefits substantially similar to those which you were receiving immediately prior to the change in control
of the Company. For purposes of Section 409A of the Code, the right to a series of 

 [Executive’s Name] 
                         , 20     
 Page 8 
  

 
monthly installment payments under this paragraph (d) shall be treated as a right to a series of separate payments. Notwithstanding the foregoing, the
Company shall not provide any benefit otherwise receivable by you pursuant to this paragraph (d) to the extent that a similar benefit is actually received by you from a subsequent employer during such thirty-six (36) month period, and any
such benefit actually received by you shall be reported to the Company; 
 (e) in addition to the retirement benefits to which
you are entitled under the qualified pension plan(s) and any supplemental or excess benefit pension plan(s) maintained by the Company or any of its subsidiaries (collectively, the “Plans”), the Company shall pay you a lump sum, in cash,
equal to the actuarial equivalent of a straight life annuity equal to the excess of (i) the retirement pension (commencing at age 65) which you would have accrued under the terms of the Plans (without regard to the limitations imposed by
section 401(a)(17) of the Code or any amendment to the Plans made subsequent to a change in control of the Company and on or prior to the Date of Termination, which amendment adversely affects in any manner the computation of retirement benefits
thereunder), determined as if you were fully vested thereunder and had continued to be employed by the Company (after the Date of Termination) for three additional years and as if you had accumulated three additional calendar years of compensation
(for purposes of determining your pension benefits thereunder), each in an amount equal to the amount determined under clause (i) of Section 4(iii)(b) hereof, over (ii) the vested retirement pension (commencing at age 65), which you
had then accrued pursuant to the provisions of the Plans. For purposes of this Subsection, “actuarial equivalent” shall be determined using the same methods and assumptions used to calculate lump sum distributions under the Precision
Castparts Corp. Retirement Plan immediately prior to the change in control of the Company; 
 (f) should you move your
residence in order to pursue other business opportunities within one (1) year after the Date of Termination, the Company will pay you, at the time specified in Subsection (v), an amount equal to the expenses incurred by you in connection with
such relocation (including expenses incurred in selling your home to the extent such expenses were customarily reimbursed by the Company to transferred Employees prior to the change in control of the Company) and which are not reimbursed by another
employer; and 
 (g) all options and stock appreciation rights to purchase or acquire shares of Common Stock of the Company
held by you immediately prior to the Date of Termination shall become exercisable in full, whether or not otherwise exercisable in accordance with the terms of the employee benefit plans pursuant to which such options and stock appreciation rights
were granted, and all restrictions on any restricted stock held by you shall lapse. 
 (iv) Notwithstanding anything in this
Agreement to the contrary, whether or not you become entitled to the Severance Payments, if any of the Severance Payments or any other payment or benefit received or to be received by you in connection with a change in control of the Company or the
termination of your employment (whether pursuant to the terms of 

 [Executive’s Name] 
                         , 20     
 Page 9 
  

 
this Agreement or any other plan, arrangement or agreement with the Company, any person whose actions result in a change in control of the Company or any
person affiliated with the Company or such person) (collectively with the Severance Payments, “Total Payments”) will be subject to the tax (the “Excise Tax”) imposed by section 4999 of the Code (or any similar tax that may
hereafter be imposed) the Company shall pay to you at the time specified in Subsection (v), below, an additional amount (the “Gross-Up Payment”) such that the net amount retained by you, after deduction of any Excise Tax on the Total
Payments and any federal, state and local income tax and Excise Tax upon the payment provided for by this subsection, shall be equal to the Total Payments. For purposes of determining whether any amounts will be subject to the Excise Tax and the
amount of such Excise Tax, (a) all amounts representing the Total Payments shall be treated as “parachute payments” within the meaning of section 280G(b)(2) of the Code, and all “excess parachute payments” within the meaning
of section 280G(b)(1) of the Code shall be treated as subject to the Excise Tax, unless in the opinion of tax counsel selected by the Company’s independent auditors and acceptable to you the Total Payments (in whole or in part) do not
constitute parachute payments, or such excess parachute payments (in whole or in part) represent reasonable compensation for services actually rendered within the meaning of section 280G(b)(4) of the Code in excess of the base amount within the
meaning of section 280G(b)(3) of the Code, or are otherwise not subject to the Excise Tax, (b) the amount of the Total Payments which shall be treated as subject to the Excise Tax shall be equal to the lesser of (1) the total amount of the
Total Payments or (2) the amount of excess parachute payments within the meaning of section 280G(b)(1) of the Code (after applying clause (a), above), and (c) the value of any non-cash benefits or any deferred payment or benefit shall be
determined by the Company’s independent auditors in accordance with the principles of sections 280G(d)(3) and (4) of the Code. For purposes of determining the amount of the Gross-Up Payment, you shall be deemed to pay federal income taxes
at the highest marginal rate of federal income taxation in the calendar year in which the Gross-Up Payment is to be made and state and local income taxes at the highest marginal rate of taxation in the state and locality of your residence on the
Date of Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. In the event that the Excise Tax is subsequently determined to be less than the amount taken into account
hereunder at the time of termination of your employment, you shall repay to the Company at the time that the amount of such reduction in Excise Tax is finally determined the portion of the Gross-Up Payment attributable to such reduction (plus the
portion of the Gross-Up Payment attributable to the Excise Tax and federal and state and local income tax imposed on the Gross-Up Payment being repaid by you if such repayment results in a reduction in Excise Tax and/or a federal and state and local
income tax deduction) plus interest on the amount of such repayment at the rate provided in section 1274(b)(2)(B) of the Code. In the event that the Excise Tax is determined to exceed the amount taken into account hereunder at the time of the
termination of your employment (including by reason of any payment the existence or amount of which cannot be determined at the time of the Gross-Up Payment), the Company shall make an additional gross-up payment in respect of such excess (plus any
interest payable with respect to such excess) at the time that the amount of such excess is finally determined. 

 [Executive’s Name] 
                         , 20     
 Page 10 
  

 (v) The payments provided for in Subsections (iii) and (iv) shall be made
not later than the eighth day following execution by you of the Release of Claims attached as Exhibit A (the “Release of Claims”); provided, however, that if the amounts of such payments cannot be finally determined on or
before such day, the Company shall pay to you on such day an estimate, as determined in good faith by the Company, of the minimum amount of such payments and shall pay the remainder of such payments (together with interest at the rate provided in
section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be determined but in no event later than the thirty-eighth day after the Company’s receipt of your signed Release of Claims. In the event that the amount of the estimated
payments exceeds the amount subsequently determined to have been due, such excess shall constitute a loan by the Company to you payable on the fifth day after demand therefor by the Company (together with interest at the rate provided in section
1274(b)(2)(B) of the Code). 
 (vi) Except as provided in Subsection (iii)(d) hereof, you shall not be required to mitigate
the amount of any payment provided for in this Section 4 by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Section 4 be reduced by any compensation earned by you as the result of
employment by another employer, by retirement benefits, by offset against any amount claimed to be owed by you to the Company, or otherwise. 
 5. Release of Claims. In consideration for and as a condition precedent to receiving the severance benefits stated in Section 4(iii) of this Agreement, you agree to execute the Release of Claims substantially in the form
attached as Exhibit A. If your employment is terminated by the Company other than for Cause or Disability or by you for Good Reason, you promise, as a condition precedent to receiving the severance benefits stated in Section 4(iii) of
this Agreement, to execute and deliver the Release of Claims to the Company within the later of (a) 45 days after the date you receive the Release of Claims or (b) the last day of your active employment. 
 6. Successors; Binding Agreement. 
 (i) The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and
agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such assumption and agreement prior to the
effectiveness of any such succession shall be a breach of this Agreement and shall entitle you to all benefits under Section 4(iii) from the Company in the same amount and on the same terms to which you would be entitled thereunder, except that
for purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed the Date of Termination. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise. 

 [Executive’s Name] 
                         , 20     
 Page 11 
  

 (ii) This Agreement shall inure to the benefit of and be enforceable by you and your
personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If you should die while any amount would still be payable to you hereunder had you continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this Agreement to your devisee, legatee or other designee or, if there is no such designee, to your estate. 
 7. Notice. For purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth on the first page of this Agreement, provided that all
notices to the Company shall be directed to the attention of the Board with a copy to the Secretary of the Company, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of
change of address shall be effective only upon receipt. 
 8. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing and signed by you and such officer as may be specifically designated by the Board. No waiver by either party hereto at any time of any breach by the other party hereto
of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. The validity,
interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Oregon without regard to its conflicts of law principles. All references to sections of the Exchange Act or the Code shall be deemed also to
refer to any successor provisions to such sections. Any payments provided for hereunder shall be paid net of any applicable withholding required under federal, state or local law. The obligations of the Company under Section 4 shall survive the
expiration of the term of this Agreement. 
 9. Validity. The invalidity or unenforceability of any provision of this Agreement shall
not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect and the invalid or unenforceable provision shall be modified to give effect as nearly as possible to the original intent
of the parties. 
 10. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an
original but all of which together will constitute one and the same instrument. 
 11. Arbitration. 
 (i) Any dispute arising out of or relating to this Agreement or a breach thereof, shall be finally and conclusively resolved by
arbitration administered by the American Arbitration Association (“AAA”) as modified by this Agreement or the subsequent agreement of the parties. Judgment on the award rendered by the arbitrator may be entered in and enforced by any court
having jurisdiction thereof. 

 [Executive’s Name] 
                         , 20     
 Page 12 
  

 (ii) The number of arbitrators shall be one, which person shall be neutral and shall
be mutually agreed upon by all parties within 30 days after a written request for arbitration by one party is delivered to all other parties. In the event that the parties cannot agree on an arbitrator, the arbitrator shall be selected within
10 days thereafter by the AAA from a list submitted by the parties, with each party having the right to propose two names. If a qualified arbitrator cannot be appointed from the initial list, the process will be repeated every five days thereafter
until a qualified arbitrator is selected. 
 (iii) The place of arbitration shall be Portland, Oregon. Unless otherwise agreed
by the parties, the following procedures will be followed in any arbitration between the parties: 
 (a) Pre-arbitration
investigations and depositions shall be conducted expeditiously and, absent a showing of clear need, shall be completed within 30 days after selection of an arbitrator. Unless ordered by the arbitrator to preserve testimony for the hearing, each
party shall have the right to take no more than three depositions, each of which shall last a total of no more than two days. 
 (b) The arbitration hearing shall begin no more than 60 days after the arbitrator is selected and shall be closed no more than 60 days thereafter. The arbitrator’s award shall be issued within 30 days after the hearing is closed.

 (iv) Either party may make an application to a court of competent jurisdiction for an order enforcing this arbitration
agreement or for injunctive relief to maintain the status quo until such time as the arbitration award is rendered or the controversy is otherwise resolved. Both parties consent to the jurisdiction of the AAA. 
 12. Entire Agreement. This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and
during the term of the Agreement supersedes the provisions of all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party
hereto with respect to the subject matter hereof. 

 [Executive’s Name] 
                         , 20     
 Page 13 
  

 13. Effective Date. This Agreement shall become effective as of the date set forth above. If
this letter sets forth our agreement on the subject matter hereof, kindly sign and return to the Company the enclosed copy of this letter, which will then constitute our agreement on this subject. 
  

			
	 Sincerely,
  
 PRECISION CASTPARTS CORP.

		
	By	 	 
		 	

 Agreed as of the             day

 of                        ,
20    . 
  

	
	
	  
	[Executive’s Name]

 EXHIBIT A 
 RELEASE OF CLAIMS 
  

	1.	PARTIES. 

 The parties to Release of Claims
(hereinafter “Release”) are [Executive’s Name] and Precision Castparts Corp., an Oregon corporation, as hereinafter defined. 
  

	 	1.1	Employee. 

 For the purposes of this
Release, “Employee” means [Executive’s Name], and his or her attorneys, heirs, executors, administrators, assigns, and spouse. 
  

	 	1.2	The Company. 

 For purposes of this
Release, the “Company” means Precision Castparts Corp., an Oregon corporation, its predecessors and successors, corporate affiliates, and all of each corporation’s officers, directors, employees, insurers, agents, or assigns, in their
individual and representative capacities. 
  

	2.	BACKGROUND AND PURPOSE. 

 Employee was employed by
the Company. Employee’s employment is ending effective [                    ] following a change in control as defined in Section 2
of the letter agreement between Employee and the Company dated [                    ],
20        (the “Agreement”). The purpose of this Release is to settle, and the parties hereby settle, fully and finally, any and all claims Employee may have against the Company. 

 

	3.	RELEASE. 

 Employee waives, acquits and forever
discharges the Company from any obligations the Company has and all claims Employee may have including but not limited to obligations and/or claims arising from the Agreement or any other document or oral agreement relating to employment
compensation, benefits severance or post-employment issues. Employee hereby releases the Company from any and all claims, demands, actions, or causes of action, whether known or unknown, arising from or related in any way to any employment of or
past or future failure or refusal to employ Employee by the Company, or any other past or future claim (except as reserved by this Release or where expressly prohibited by law) that relates in any way to Employee’s employment, compensation,
benefits, reemployment, or application for employment, with the exception of any claim Employee may have against the Company for enforcement of this Release. This release includes any and all claims, direct or indirect, which might otherwise be made
under any applicable local, state or federal authority, including but not limited to any claim arising under the Oregon statutes dealing with employment, discrimination in employment, Title VII of the Civil Rights Act of 1964, the Civil Rights
Act of 1991, the Americans With Disabilities Act, the Family and Medical Leave Act of 1993, the Equal Pay Act of 1963, Employee Order 11246, the Rehabilitation Act of 1973, the Uniformed Services Employment 

  

 A-1 

 
and Reemployment Rights Act of 1994, the Age Discrimination in Employment Act, the Fair Labor Standards Act, Oregon wage and hour statutes, all as amended,
any regulations under such authorities and any applicable contract, tort or common law theories. 
  

	 	3.1	Reservations of Rights. 

 This
Release shall not affect any rights which Employee may have under any medical insurance, disability plan, workers’ compensation, unemployment compensation, applicable company stock incentive plan(s), indemnifications or the retirement plans
maintained by the Company. 
  

	 	3.2	No Admission of Liability. 

 It is
understood and agreed that the acts done and evidenced hereby and the release granted hereunder is not an admission of liability on the part of Employee or the Company, by whom liability has been and is expressly denied. 
  

	4.	CONSIDERATION TO EMPLOYEE. 

 After receipt of this
Release fully endorsed by Employee, and the expiration of the seven day revocation period provided by the Older Workers Benefit Protection Act without Employee’s revocation, the Company shall pay the applicable benefits to the Employee
specified in Section 4(iii) of the Agreement. 
  

	5.	NO DISPARAGEMENT. 

 Employee agrees that Employee
will not disparage or make false or adverse statements about the Company. The Company should report to Employee any actions or statements that are attributed to Employee that the Company believes are disparaging. The Company may take actions
consistent with breach of this Release should it determine that Employee has disparaged or made false or adverse statements about the Company. The Company agrees to follow the applicable policy(ies) regarding release of employment reference
information. 
  

	6.	CONFIDENTIALITY, PROPRIETARY, TRADE SECRET AND RELATED INFORMATION. 

 Employee acknowledges and agrees not to make unauthorized use or disclosure of any confidential, proprietary or trade secret information learned as an employee about the Company, its products, customers and suppliers
and covenants not to breach that duty. Should Employee, Employee’s attorney or agents be requested in any judicial, administrative, or other proceeding to disclose confidential, proprietary or trade secret information Employee learned as an
employee of the Company, Employee shall promptly notify the Company of such request by the most expeditious means in order to enable the Company to take any reasonable and appropriate action to limit such disclosure. 
  

 A-2 

	7.	OPPORTUNITY FOR ADVICE OF COUNSEL. 

 Employee
acknowledges that Employee has been encouraged to seek advice of counsel with respect to this Release and has had the opportunity to do so. 
  

	8.	ENTIRE RELEASE. 

 This Release and the Agreement
signed by Employee contain the entire agreement and understanding between the parties and, except as reserved in paragraph 3, supersede and replace all prior agreements, written or oral, prior negotiations and proposed agreements, written or oral.
Employee and the Company acknowledge that no other party, nor agent nor attorney of any other party, has made any promise, representation or warranty, express or implied, not contained in this Release concerning the subject matter of this Release to
induce this Release, and Employee and the Company acknowledge that they have not executed this Release in reliance upon any such promise, representation, or warranty not contained in this Release. 
  

	9.	SEVERABILITY. 

 Every provision of this Release is
intended to be severable. In the event any term or provision of this Release is declared to be illegal or invalid for any reason whatsoever by a court of competent jurisdiction or by final and unappealed order of an administrative agency of
competent jurisdiction, such illegality or invalidity should not affect the balance of the terms and provisions of this Release, which terms and provisions shall remain binding and enforceable. 
  

	10.	REVOCATION. 

 As provided by the Older Workers
Benefit Protection Act, Employee is entitled to have forty-five days to consider this Release. For a period of seven days after execution of this Release, Employee may revoke this Release. Upon receipt of Employee’s signed Release and the end
of the seven day revocation period, payment by the Company as described in paragraph 4 above will be made in a timely manner as provided herein. 
 Dated:                    , 20     
  

	
	
	  
	[Executive’s Name]

  

 A-3 

			
	STATE OF OREGON	  	)
		  	) ss.

 County of Multnomah ) 
 Personally appeared the above named [Executive’s Name] and acknowledged the foregoing instrument to be his or her voluntary act and deed. 
 Before me:
                                         
                                         
       
 Notary Public for
                                         
                
 My commission expires:
                                         
    
  

									
	PRECISION CASTPARTS CORP.	 		 	
					
	By:	 	 	 		 	Dated:	 	 
					
	Its:	 	 	 		 		 	
		 	    On Behalf of the “Company”	 		 		 	

  

 A-4

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