Document:

Exhibit 10.1

Exhibit 10.1

GOODRICH CORPORATION

VOLUNTARY SEPARATION PLAN

AND

SUMMARY PLAN DESCRIPTION

EFFECTIVE SEPTEMBER 15, 2009

 

 

 

GOODRICH CORPORATION

VOLUNTARY SEPARATION PLAN

AND

SUMMARY PLAN DESCRIPTION

EFFECTIVE SEPTEMBER 15, 2009

I. INTRODUCTION AND PURPOSE

Goodrich Corporation (the “Company”) hereby establishes and adopts the Goodrich Corporation
Voluntary Separation Plan (the “Plan”) to provide severance benefits for Eligible Employees who
voluntarily elect during the Window Period to leave employment with the Employer in accordance with
the terms of the Plan. In order to be an Eligible Employee under the Plan with respect to a
designated Window Period, an Employee must satisfy the criteria established by the Employer from
time to time with respect to the designated Window Period and be selected by the Employer to
participate in the Plan. The Plan is effective September 15, 2009. The Plan supersedes any prior
severance plan or arrangement covering Eligible Employees and, as a result (and as more fully
described in Section 4.8), an Eligible Employee’s receipt of benefits hereunder shall render such
Eligible Employee ineligible for any benefits, related to the same period of employment, under any
other severance plan or arrangement currently or hereinafter provided by the Employer.

This document serves as both the formal Plan document and the summary plan description. It
explains eligibility, exclusions, benefits and administration. Any questions about the Plan and
its operation should be directed to the Plan Administrator.

II. DEFINITIONS

The following words and phrases, when capitalized, have the meanings set forth below:

2.1 Administrator or Plan Administrator is defined in Section 5.1.

2.2 Base Pay means as follows: (a) for a salaried Eligible Employee, such employee’s weekly
base salary as of the date immediately preceding the date of such employee’s Separation Date, (b)
for an hourly, full-time Eligible Employee, such employee’s weekly compensation, based upon a
40-hour workweek and such employee’s hourly wage as of the date immediately preceding the date of
such employee’s Separation Date, and (c) for a part-time Eligible Employee, such employee’s weekly
compensation based upon such employee’s average weekly pay for services rendered as a part-time
employee over a six-month period ending on such employee’s Separation Date. Base Pay shall, in all
cases, exclude any bonus, overtime, commission, profit-sharing or similar payments and any
stock-based compensation, benefits, benefit credits, perquisites, expense reimbursements,
allowances or similar forms of compensation.

2.3 Benefit Coverage is defined in Section 4.2.

2.4 Beneficiary means the person or persons designated by the Participant to receive a cash
payment under the Plan upon the death of a Participant. If a Participant fails to designate
a Beneficiary or if every person designated as Beneficiary predeceases the Participant, then
the cash payment will be paid to the Participant’s estate.

 

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2.5 COBRA Law means the requirements of Part 6 of Subtitle B of Title I of the Employee
Retirement Income Security Act of 1974, as amended from time to time.

2.6 Committee means the Goodrich Corporation Severance Program Appeal Committee appointed by
the Plan Administrator.

2.7 Company means Goodrich Corporation, a New York corporation.

2.8 Eligible Employee means each Employee who meets the eligibility requirements of Section
3.1.

2.9 Employee is defined in Section 3.1(a).

2.10 Employer means, collectively or individually, the Company and each of its domestic
subsidiaries.

2.11 ERISA means the Employee Retirement Income Security Act of 1974, as amended from time to
time.

2.12 Participant means an Eligible Employee of the Employer who elects to participate in the
Plan and who meets the participation requirements set forth in Article III.

2.13 Plan means the Goodrich Corporation Voluntary Separation Plan, as described in this
document, and as amended from time to time.

2.14 Plan Benefits means the benefits described in Article IV hereof.

2.15 Plan Year means the calendar year.

2.16 Release means the written document as described in Section 3.3 which a Participant must
execute in order to receive Plan Benefits hereunder.

2.17 Separation Date means a Participant’s last day of active service for the Employer, as
determined by the Employer.

2.18 Window Period means the period established from time to time by the Employer and set
forth in Appendix C.

 

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III. PARTICIPATION IN THE PLAN

3.1 Eligibility to Participate.

An Employee must meet the following requirements in order to participate in the Plan with
respect to a designated Window Period:

(a) Employee Categories.

A person is an Eligible Employee if such person is a regular, full-time or part-time employee
of the Employer and meets the criteria set forth in this Section 3.1. For purposes of the
preceding sentence, the term “employee” refers to a person who, under applicable law, has an
employer-employee relationship with the Employer. The term “employee” does not include any person
who is a leased worker, leased employee or any similar type of worker or employee who is not on
the regular payroll of the Employer, any person who is classified as rendering services to the
Employer as an independent contractor (regardless of whether that classification is determined to
be incorrect by any other person, court, governmental authority or otherwise as a matter of law)
and any other person rendering services solely as a director of the Company or a covered domestic
subsidiary. The term Eligible Employee shall not include any employee who is described in any of
the following categories of employees:

	 	(i)	 	Employees whose conditions of employment are subject to a
collective bargaining agreement between the Employer and any labor union or
other collective bargaining unit.

	 
	 	(ii)	 	Employees whose principal place of employment is outside of the
United States (other than U.S. citizens who are covered by expatriate
agreements that provide for participation in this Plan).

	 
	 	(iii)	 	Temporary employees (as determined by Employer
classifications).

	 
	 	(iv)	 	Employees who have entered into a separate agreement with the
Employer that provides for severance benefits.

(b) Employer Criteria for Participation.

The Employee must satisfy the criteria established by the Employer from time to time and set
forth in Appendix C with respect to the designated Window Period.

(c) Voluntary Election to Participate.

An Eligible Employee must, during the Window Period, voluntarily agree to leave employment
with the Employer on the Separation Date, and elect to participate in this Plan by completing the
election form attached as Appendix B and returning the form to the person(s) designated to receive
the form within the timeframe prescribed and set forth in Appendix C with respect to a designated
Window Period.

 

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(d) Selection to Participate.

The Employee must be selected for participation in the Plan by the Employer. An Eligible
Employee who timely volunteers to leave employment with the Employer and elects to participate in
this Plan will be notified by the Employer within ten (10) business days of the close of the Window
Period if he is selected to participate. In the event of oversubscription or other special
business circumstances, the Employer may deny selection to certain Eligible Employees who meet the
Employer criteria, agree to voluntarily leave employment and elect to participate in the Plan.

(e) Good Faith/Best Efforts.

An Eligible Employee who is selected by the Employer for participation in the Plan must use
his best efforts, in good faith, to continue performing his job responsibilities in a manner which
satisfies the expectations of the Employer and assist the Employer is meeting its goals during the
entire time period between the Window Period and the Separation Date. Good faith and best efforts
will be determined by the Employer, in its sole discretion.

(f) Signed Release.

An Eligible Employee must execute, on or after the Employee’s Separation Date and at least
seven (7) days prior to payment of any Plan Benefits, a Release in a form acceptable to the Plan
Administrator.

(g) Resignation.

An Eligible Employee must execute a resignation of employment in a form acceptable to the Plan
Administrator on the Separation Date.

3.2 Exclusions from Eligibility to Participate.

An Employee who otherwise satisfies the eligibility criteria for participation in the Plan
shall not be eligible for benefits under this Plan if prior to the Separation Date, either: (a)
the Employee terminates employment with the Employer or (b) the Employee is terminated for Cause,
where “Cause” means

	 	(i)	 	Violation of the Eligible Employee of any rule, regulation, or
policy of the Employer, including the Employer’s Business code of Conduct;

	 
	 	(ii)	 	Failure by the Eligible Employee to meet any requirement
reasonably imposed upon such employee by the Employer as a condition of
continued employment;

 

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	 	(iii)	 	Violation by the Eligible Employee of any federal, state or
local law or regulation;

	 
	 	(iv)	 	Commission by the Eligible Employee of an act of fraud, theft,
misappropriation of funds, dishonesty, bad faith or disloyalty; or

	 
	 	(v)	 	Dereliction or neglect by the Eligible Employee in the
performance of such employee’s job duties.

3.3 Contents of the Release.

In exchange for the Plan Benefits provided hereunder and as a condition precedent to the
payment of Plan Benefits hereunder, to the fullest extent permitted by law, each Participant will
be required to execute a Release whereby such Employee (a) agrees voluntarily to leave employment
with the Employer, (b) waives any and all claims against the Employer, the Company, any predecessor
or successor thereto, and their assigns, employee benefit plans, present or former directors,
officers, employees, representatives, agents, and attorneys, (c) acknowledges and agrees that the
acceptance of Plan Benefits is in lieu of any benefits to which the Participant may otherwise be
entitled under any severance pay plan, policy, program or practice of the Employer and that the
Participant will not be eligible for or entitled to any severance benefits related to the same
period of employment that may be offered or provided by the Employer in the future, and (d) agrees
to comply with certain confidentiality requirements. The Company, in its sole discretion, shall
prescribe the terms of the Release, including, without limitation, a description of the claims
being released and waived and the confidentiality requirements.

3.4 Revocation or Failure to Execute a Release.

If a Participant chooses not to execute a Release, or revokes the Release within the 7-day
revocation period, he will not receive any Plan Benefits.

3.5 Separation Date.

The Participant will be expected to leave his employment within the timeframe set forth in
Appendix C with respect to a designated Window Period. Notwithstanding the preceding, the
Participant’s Employer retains the discretion to modify the Participant’s Separation Date based on
business needs. If the Participant leaves employment prior to being released by the Employer, he
will not receive any Plan Benefits.

3.6 Commencement of Participation.

An Eligible Employee of the Employer will be eligible for participation and the Plan Benefits
described in Article IV below only after (a) he notifies the Employer in writing during the Window
Period that he voluntarily wishes to end his employment, (b) he resigns on his Separation Date, (c)
he delivers the signed Release to the Employer on or after his Separation Date, and (d) the 7-day
revocation period (if applicable) has elapsed without the Eligible Employee revoking the Release.
Participation will cease when all benefits described in Article IV have been paid or provided to
the Participant.

 

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IV. PLAN BENEFITS

The Plan Benefits described in this Article IV shall be provided to Participants.

4.1 Cash Payment.

A Participant will receive a cash payment as follows:

(a) Leadership Employees.

Participants who are employed as of the Separation Date in positions classified by the
Employer as Business Leadership, Strategic Leadership and Executive Leadership Employees as defined
by the Company’s corporate compensation guidelines (“Leadership Employees”) shall be entitled to
receive a cash payment equal to the sum of the following items: one week’s Base Pay for each year
of continuous service (rounded upward to the nearest year) with the Company or any affiliate of the
Company and one week’s Base Pay for each $5,000 of Annualized Base Pay (rounded upward to the
nearest $5,000); provided, however, that the total payment called for under this Section 4.1(a)
shall be not less than four (4) weeks’ Base Pay and not more than fifty-two (52) weeks’ Base Pay,
if such employee has been employed with the Company or any affiliate of the Company for at least
six (6) continuous months. Notwithstanding the preceding sentence, if a Participant has been
employed with the Company or any affiliate of the Company for less than six (6) continuous months,
then the total payment called for under this Section 4.1(a) shall be not less than four (4) weeks’
Base Pay and not more than twelve (12) weeks’ Base Pay. In determining the years of continuous
service and months of continuous service for these purposes, no credit shall be given for service
with any predecessor company prior to the Company’s ownership of such company unless such company
is listed on Appendix A to this Plan.

(b) Exempt Employees.

Participants who are employed as of the Separation Date in positions classified by the
Employer as employees exempt from the overtime requirements of the Federal Fair Labor Standards Act
(“FLSA”) (other than Leadership Employees) shall be entitled to receive a cash payment equal to the
sum of the following items: one weeks’ Base Pay for each year of continuous service (rounded upward
to the nearest whole year) with the Company or any affiliate of the Company and one-half week’s
Base Pay for each $5,000 of Annual Base Pay (rounded upward to the nearest $5,000); provided,
however, that the total payment called for under this Section 4.1(b) shall be not less than four
(4) weeks’ Base Pay and not more than fifty-two (52) weeks’ Base Pay, if such employee has been
employed with the Company or any affiliate of the Company for at least six (6) continuous months.
Notwithstanding the preceding sentence, if a Participant has been employed with the Company or any
affiliate of the Company for less than six (6) continuous months, then the total payment called for
under this Section 4.1(b) shall be not less than four (4) weeks’ Base Pay and not more than twelve
(12) weeks’ Base Pay. In determining the years of continuous service and months of continuous
service for these purposes, no credit shall be given for service with a predecessor company prior
to the Company’s ownership of such company unless such company is listed on Appendix A to this
Plan.

 

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(c) Non-exempt Employees.

Participants who are employed in positions classified by the Employer as of the Separation
Date as subject to the overtime requirements of the FLSA shall be entitled to receive a cash
payment equal to one week’s Base Pay for each year of continuous service (rounded upward to the
nearest whole year) with the Company or any affiliate of the Company; provided, however, that such
payment shall be not less than four (4) weeks’ Base Pay and not more than fifty-two (52) weeks’
Base Pay. In determining the years of continuous service for these purposes, no credit shall be
given for service with a predecessor company prior to the Company’s ownership of such company
unless such company is listed on Appendix A to this Plan.

4.2 Employer Group Health Plan Coverage.

In addition to the cash payment described in Section 4.1, a Participant shall be entitled to
continue any medical, dental, and vision coverage (individually, the “Benefit Coverage”) the
Participant was receiving immediately prior to his Separation Date. The right to continue such
coverage shall be offered pursuant to the COBRA Law. For a limited period of time as described
below, the Participant shall only be required to pay an amount for such coverage that is equal to
the employee contribution for such coverage that the Participant was required to pay at the time of
the Participant’s Separation Date. This right to continue Benefit Coverage at the employee
contribution level shall apply for a six-month period beginning on the first day of the month
following the Participant’s Separation Date (Benefit Coverage for the remainder of the month in
which the Separation Date occurs is automatic.) For the remainder of the period of continuation
coverage that is available to the Participant pursuant to the COBRA Law, the continuation of such
coverage shall be conditioned upon the Participant paying the full amount of the premium that can
be charged for such coverage under the COBRA Law.

A Participant receiving continued Benefit Coverage under this Plan shall provide the Company
with prompt, written notice of such employee’s commencement of new employment and eligibility for
coverage under the new employer’s benefit plans. A Participant’s right to continue a particular
Benefit Coverage under this Section 4.2 shall cease in accordance with the COBRA Law; provided,
however, that if the Participant commences new employment and is eligible to receive, from the
Participant’s new employer, that particular Benefit Coverage, the right to continue that particular
coverage at the employee contribution level shall cease.

Notwithstanding the preceding to the contrary, if, upon the Participant’s Separation Date, the
Participant is (a) receiving Benefits Coverage and, as a result is entitled to elect continuation
coverage under the COBRA Law and (b) eligible for the Federal COBRA subsidy under the American
Recovery and Reinvestment Act of 2009 (“ARRA”), the Employer will subsidize 65% of the COBRA
premium cost for up to nine (9) months, provided the Participant (i) elects COBRA continuation
coverage and (ii) pays the remaining 35% of the COBRA premium cost during the nine (9) month
period. The Employer’s 65% subsidy will end prior to the completion of the nine (9) month period
if (i) the Participant’s COBRA continuation coverage ends or (ii) the Participant becomes eligible
for coverage under another group health plan or under Medicare or Medicaid, prior to the completion
of such nine (9) month period.
Upon completion of the nine (9) month period, the Participant shall be responsible for paying 100%
of the COBRA premium cost for any remaining COBRA continuation coverage.

 

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Additional information regarding the COBRA Law and the federal COBRA subsidy under ARRA is set
forth in the COBRA packet provided to the Participant upon termination of employment with the
Employer.

4.3 Employer-paid Life Insurance Coverage.

Each Participant shall be entitled to continue to receive Employer-paid life insurance
coverage in an amount not more than such Participant’s annual Base Pay, if such Participant had
coverage in at least that amount at the time of the Separation Date. The right to continue to
receive Employer-paid life insurance coverage shall continue for a period of six (6) months
beginning on the first day of the month immediately following the Separation Date. Employer-paid
life insurance coverage continuation shall end if the Participant is employed by a new employer and
is eligible to receive life insurance coverage, whether or not at a comparable level, from the
Participant’s new employer. At the time the Employer-paid life insurance coverage continuation
ends, the Participant may convert the Employer-paid life insurance coverage to an individual-paid
life insurance policy in accordance with the terms and conditions of the Employer-paid life
insurance plan.

4.4 Form and Timing of Plan Benefits.

All cash payments of Plan Benefits will be paid in a lump sum within fifteen (15) days of the
first payroll date after the Release becomes fully legally binding. All cash payments are treated
as wages, and are subject to required income and payroll tax withholding. Notwithstanding the
preceding, Plan Benefits shall not be considered compensation, earnings or wages for any purposes
under any pension, savings or other retirement plan, program or arrangement of the Employer.

4.5 Death of Participant.

If the Participant dies after the termination of his employment but before receiving payment
of the cash payment described in Section 4.1 above, the Beneficiary designated by the Participant
will receive such payment. If a Participant fails to designate a Beneficiary or if every person
designated as Beneficiary predeceases the Participant, then the cash payment will be paid to the
Participant’s estate.

4.6 Effect of Participation in This Plan on Other Benefits.

(a) Medical and Dental Benefits.

Subject to a Participant’s right to continue coverage pursuant to Section 4.2, coverage as an
active Employee under the Goodrich Corporation Group Benefits and Insurance Program will terminate
on the last day of the month coinciding with or following the Participant’s Separation Date.

 

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(b) Vacation.

A Participant may be entitled to payment of unused or accrued vacation at the time of such
Participant’s Separation Date under the applicable Employer policies in effect at the time of such
Separation Date. The payment of vacation is separate from and independent of a Participant’s right
to Plan Benefits under the Plan.

(c) 401(k) Plan.

All contributions to the Goodrich Corporation Employees’ Savings Plan (the “401(k) Plan”) for
the benefit of a Participant will cease on the Participant’s Separation Date. This Plan does not
modify any of the terms and conditions of the 401(k) Plan.

(d) Pension Plan.

Benefit accruals under the Goodrich Corporation Employees’ Pension Plan (the “Pension Plan”)
and the Goodrich Corporation Wage Employees’ Pension Plan (the “Wage Pension Plan”) with respect to
a Participant will cease on the Participant’s Separation Date. This Plan does not modify any of
the terms and conditions of the Pension Plan or the Wage Pension Plan.

(e) All Other Employee Benefits.

This Plan does not affect an Employee’s rights under any Employer plan as to which the
Employee is already vested. Benefits under those plans will be governed by the plan documents.
The Employee’s participation in any other Employer plans and programs will terminate in accordance
with their terms.

4.7 Other Entitlements.

Plan Benefits made under this Plan shall be in lieu of any benefits to which an Eligible
Employee would otherwise be entitled under any other severance pay plan, policy, program or
practice of the Employer and any of its subsidiaries. In addition, the receipt of Plan Benefits
shall render a Participant ineligible for any severance benefits regarding the same period of
employment that may be offered or provided by the Employer in the future. If any payments or other
benefits are made under this Plan in error, except to the extent prohibited by law, such excess
payments or benefits shall be used to offset any payments or benefits that may be due to an
Employee under any other plan, program or policy of the Employer, or under an employment agreement,
and the Employer shall have the right to recover those payments.

 

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V. ADMINISTRATION AND CLAIMS

5.1
Authority of the Company.

The Company shall be the Plan Administrator, as such term is defined in Section 3(16) of
ERISA. The Plan Administrator is responsible for the general administration of the Plan and for
carrying out the provisions thereof. The Plan Administrator shall have all such powers and
discretionary authority as may be necessary to carry out the provisions of the Plan, including the
power to determine all questions relating to eligibility for and the amount of any Plan
Benefits and all questions pertaining to claims for benefits and procedures for claim review; to
resolve all other questions arising under the Plan, including any questions of construction or
interpretation of Plan terms; and to take such further action as the Plan Administrator shall deem
advisable in the administration of the Plan. The Plan Administrator may delegate any of its
powers, authorities, or responsibilities for the operation and administration of the Plan to any
person or committee so designated in writing by it and may employ such attorneys, agents,
consultants, and accountants as it may deem necessary or advisable to assist it in carrying out its
duties hereunder. The actions taken and the decisions made by the Plan Administrator hereunder
shall be final and binding upon Eligible Employees, Participants and Beneficiaries.

5.2 Claims Procedure.

Claims for benefits under the Plan shall be filed with the Plan Administrator in writing. A
written claim for benefits should state the reasons why the claim for benefits should be granted.
If a claim for benefits under the Plan is denied in whole or in part by the Plan Administrator, the
claimant shall be notified in writing within ninety (90) days after the receipt of the claim by the
Plan Administrator, unless the Plan Administrator determines that special circumstances require an
extension of time for processing the claim. If the Plan Administrator determines than an extension
is necessary, written notice of the extension shall be furnished to the claimant prior to the end
of the initial 90-day period. In no event shall such extension exceed a period of ninety (90) days
from the end of the initial 90-day period. The extension notice shall indicate the special
circumstances requiring an extension of time and the date by which the Plan Administrator expects
to render the benefit determination.

If the claimant wishes further consideration of his claim, he or his authorized representative
may request a review of his claim by filing a written request for a review of the claim with the
Committee within sixty (60) days after the receipt of the denial (or, if no written denial is
received, within sixty (60) days of the date when the denial was due). The claimant may submit
written comments, documents, records, and other information relating to the claim for benefits.
The claimant or his authorized representative will be provided, upon request and free of charge,
reasonable access to, and copies of, all non-privileged documents, records, and other information
relevant to the claimant’s claim for benefits. The review shall take into account the comments,
documents, records, and other information submitted by the claimant relating to the claim, without
regard to whether such information was submitted or considered in the initial benefit
determination.

The Committee shall provide the claimant with a written notice of its decision on review
within sixty (60) days after the Committee’s receipt of the claimant’s written claim for review,
unless the Committee determines that special circumstances require an extension of time for
processing the claim. If the Committee determines than an extension is necessary, written notice of
the extension shall be furnished to the claimant prior to the end of the initial 60-day period. In
no event shall such extension exceed a period of sixty (60) days from the end of the initial 60-day
period. The extension notice shall indicate the special circumstances requiring an extension of
time and the date by which the Committee expects to render its determination on review. If a final
decision on review is not furnished to the claimant within the required time, the claim shall be
deemed to be denied on review.

 

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If the claimant’s claim is denied in whole or in part either on the initial claim or on
review, the Plan Administrator or the Committee shall provide the claimant with a written notice of
the denial containing the following information:

	 	(a)	 	The specific reasons for such denial;

	 	(b)	 	The pertinent Plan provisions on which the denial is based;

	 	(c)	 	In the case of the denial of an initial claim, a description of
any additional material or information necessary for the claimant to perfect
his claim and the reasons why such material or information is needed;

	 	(d)	 	In the case of a denial of an initial claim, an explanation of
the Plan’s appeal procedures and the time limits applicable to such procedures;

	 	(e)	 	In the case of a denial on review, a statement that the
claimant is entitled to receive, upon request and free of charge, reasonable
access to and copies of all documents, records and other information relevant
to the claim; and

	 	(f)	 	A statement that the claimant has the right to bring a civil
action under ERISA Section 502(a) following denial on review.

A claimant must follow these claims procedures before seeking any other legal recourse with
respect to benefits under the Plan.

The Plan Administrator and the Committee shall have sole and absolute discretion over claims
and appeals issues and determinations, regardless of the timing of such determinations or exercise
of discretion in making such determinations.

5.3
Delivery of Notices.

For the purposes of the Plan, all claims and other communications sent by the Plan
Administrator, the Committee or an employee shall be in writing and either hand delivered or
delivered by United States registered or certified mail, return receipt requested, postage prepaid,
or by reputable courier service addressed to the respective addresses set forth below or to such
other address as either party may have furnished to the other in writing. Notice of change of
address shall be effective only upon receipt. Notices sent to the Plan Administrator and the
Committee by an employee shall be sent to:

Goodrich Corporation

Four Coliseum Centre

2730 West Tyvola Road

Charlotte, North Carolina 28217-4578

Attention: Vice President, Associate General Counsel & Secretary

and notices and other communications sent to an employee shall be sent to the home address of the
employee.

 

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VI. AMENDMENT OR TERMINATION OF PLAN

The Company may amend, terminate, or otherwise modify this Plan at any time. Any amendment to
the Plan shall be (a) in writing, (b) approved by the Board of Directors of Goodrich or an officer
authorized by such Board, and (c) signed by a member of the Board of Directors or an officer
authorized by such Board.

Notwithstanding the preceding paragraph, the Chief Executive Officer of the Company shall have
the authority to amend any appendix to this Plan at any time and from time to time without further
action of the Board of Directors. In addition to the Chief Executive Officer of the Company, the
Company’s General Counsel, Senior Vice President—Human Resources, and a Segment President shall
have the authority to amend Appendix C, to this Plan at any time and from time to time without
further action of the Board of Directors.

VII. GENERAL PROVISIONS

7.1 Employment Rights.

Nothing expressed or implied in this Plan shall create any obligation on the part of the
Employer to continue the employment of an Eligible Employee. An Eligible Employee who elects not
to participate in the Plan will continue to be employed by the Employer on an at-will basis. The
terms and conditions of his employment with the Employer will not change (including the at-will
status of employment) because he decides not to participate in this Plan.

7.2 Governing Law.

To the extent not determined by ERISA, the provisions of the Plan shall be construed,
administered and enforced in accordance with the laws of the State of North Carolina.

7.3 Severability.

If any provision of the Plan shall be held illegal or invalid for any reason, such illegality
or invalidity shall not affect the remaining provisions of the Plan, and the Plan shall be
construed and enforced as if such illegal and invalid provisions had never been part of the Plan.

7.4 Nonalienation of Benefits.

No benefits payable under the Plan shall be subject to anticipation, alienation, sale,
transfer, assignment, pledge or other encumbrance, and any attempt to do so shall be void.

7.5 Gender.

Words used in the Plan in the masculine gender shall be construed as though they also are used
in the feminine gender in all situations where they would apply.

 

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7.6 Section Headings.

The section headings contained herein have been inserted for convenience or reference only,
and shall not modify, define, expand or limit any of the provisions hereof.

VIII. ERISA REQUIRED INFORMATION

8.1 Information About The Plan

The following are the names and addresses of certain individuals who have various
responsibilities with respect to this Plan.

	 	 	 	 	 
	 

	 	Employer/Plan Sponsor:
	 	Goodrich Corporation
	 

	 	 	 	Four Coliseum Centre
	 

	 	 	 	2730 West Tyvola Road
	 

	 	 	 	Charlotte, North Carolina 28217-4578
	 
	 	 	 	 
	 

	 	Employer Identification No.:
	 	34-0252680
	 
	 	 	 	 
	 

	 	Name of Plan:
	 	Goodrich Corporation Voluntary Separation Plan
	 
	 	 	 	 
	 

	 	Plan No.:
	 	501
	 
	 	 	 	 
	 

	 	Plan Administrator:
	 	Goodrich Corporation
	 

	 	 	 	Four Coliseum Centre
	 

	 	 	 	2730 West Tyvola Road
	 

	 	 	 	Charlotte, North Carolina 28217-4578
	 

	 	 	 	Attn: Vice President, Associate
	 

	 	 	 	General Counsel and Secretary
	 

	 	 	 	(704) 423-7000
	 
	 	 	 	 
	 

	 	Goodrich Corporation
	 	Goodrich Corporation
	 

	 	Severance Appeal Committee:
	 	Four Coliseum Centre
	 

	 	 	 	2730 West Tyvola Road
	 

	 	 	 	Charlotte, North Carolina 28217-4578
	 

	 	 	 	Attn: Vice President, Associate
	 

	 	 	 	General Counsel and Secretary
	 

	 	 	 	(704) 423-7000
	 
	 	 	 	 
	 

	 	Agent for Service of Legal
Process:
	 	Corporation Services Company

327 Hillsborough Street
	 

	 	 	 	Raleigh, NC 27603
	 
	 	 	 	 
	 

	 	Type of Plan:
	 	ERISA Health and Welfare Plan
	 
	 	 	 	 
	 

	 	Source of Benefits:
	 	General Assets of the Employer

 

13

 

8.2 Statement of ERISA Rights.

As a Participant in this Plan, you are entitled to certain rights and protections under the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”). ERISA provides that all
Plan Participants shall be entitled to:

Receive Information About Your Plan and Benefits.

Examine, without charge, at the Plan Administrator’s office, and at other specified locations,
all documents governing the Plan, including a copy of the latest annual report (Form 5500 series)
filed with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee
Benefits Security Administration.

Obtain, upon written request to the Plan Administrator, copies of documents governing the
operation of the Plan, including insurance contracts, and copies of the latest annual report (Form
5500 series) an updated summary plan description. The Administrator may make a reasonable charge
for the copies.

Prudent Actions by Plan Fiduciaries.

In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who
are responsible for the operation of the Plan. The people who operate the Plan, called
“fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan
Participants and Beneficiaries. No one, including the Employer, or any other person, may
discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising
your rights under ERISA.

Enforce Your Rights.

If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a
right to know why this was done, to obtain copies of documents relating to the decision without
charge, and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you
request a copy of Plan documents or the latest annual report from the Plan and do not receive them
within thirty (30) days, you may file suit in a federal court. In such a case, the court may
require the Plan Administrator to provide the materials and pay you up to $110 a day until you
receive the materials, unless the materials were not sent because of reasons beyond the control of
the Administrator. If you have a claim for benefits which is denied or ignored, in whole or in
part, you may file suit in a state or federal court. If it should happen that Plan fiduciaries
misuse the Plan’s money, or if you are discriminated against for asserting your rights, you may
seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The
court will decide who should pay court costs and legal fees. If you are successful the court may
order the person you have sued to pay these costs and fees. If you lose, the court may order you
to pay these costs and fees, for example, if the fines you claim are frivolous.

 

14

 

Assistance with Your Questions.

If you have any questions about the Plan, you should contact the Plan Administrator. If you
have any questions about this statement or about your rights under ERISA, or if you need assistance
in obtaining documents from the Plan Administrator, you should contact the nearest office of the
Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone
directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security
Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.
You may also obtain certain publications about your rights and responsibilities under ERISA by
calling the Publications Hotline of the Employee Benefits Security Administration.

[Remainder of page intentionally left blank.]

 

15

 

IN WITNESS WHEREOF, the Company has executed this document on this                                          day of
                    , 2009.

	 	 	 	 	 
	 	 	GOODRICH CORPORATION
	 
	 	 	 	 
	 

	 	By: 	 	 
	 

	 	 	 
	 

	 	 	Title: 	 
	 

	 	 	 	 

 

16

 

APPENDIX A

GOODRICH CORPORATION

VOLUNTARY SEPARATION PLAN

List of Acquired Companies

For purposes of calculating years of service under Article IV of the Goodrich Corporation Voluntary
Separation Plan, service with the following companies prior to their acquisition by Goodrich
Corporation or a subsidiary of Goodrich Corporation shall be considered, but only if the affected
employee became an employee of Goodrich Corporation or a subsidiary of Goodrich Corporation through
the acquisition:

The Cleveland Pneumatic Company

Coltec Industries Inc. and any subsidiaries of Coltec

Goodrich Actuation Systems Limited

Goodrich Control Holdings Limited

Goodrich Control Systems Limited

Gulton Data Systems and any affiliated employer

Hughes Aircraft Company

ITEK

Perkin-Elmer Corporation

Raytheon Corporation

Recon/Optical, Inc.

Rohr, Inc.

Simmonds Precision Engine Systems, Inc.

Simmonds Precision Motion Controls, Inc.

Simmonds Precision Products, Inc.

TEAC Aerospace Holdings, Inc.

TEAC Aerospace Technologies, Inc.

TRW, Inc. and any affiliated employer

Universal Propulsion Company, Inc.

 

17

 

APPENDIX B

GOODRICH CORPORATION

VOLUNTARY SEPARATION PLAN

Election Form

Yes. I agree to participate in the Plan. In electing to participate in the Plan, I hereby
acknowledge and agree that the benefits I receive as a Participant in the Plan are in lieu of any
benefits to which I may otherwise be entitled under any other severance pay plan, policy, program
or practice of the Employer and that I will be ineligible for any severance benefits, related to
the same period of employment, that may be offered or provided by the Employer in the future.

DESIGNATION OF BENEFICIARY

I designate the following Beneficiary(ies) to receive benefits under the Plan in the event of my
death after termination of employment and execution of the Release but before receiving the cash
payment:

	 	 	 	 	 	 	 
	 

	 	Name
	 	Address: City, State and Zip Code	 	 
	 
	 	 	 	 	 	 
	 

	 	 

	 	 

	 	 
	 

	 	 

	 	 

	 	 
	 

	 	 

	 	 

	 	 

I understand that, if my election is approved and I am selected to participate, my Separation Date
will be that date which is
 _____ 
(_) weeks from the date of my execution of this Election Form unless
a different Separation Date is established by the Employer. I understand that I must remain
employed until released by the Employer in order to qualify to receive Plan Benefits. I also
understand that I must execute, and not revoke (if applicable) a Release on or after my Separation
Date in order to qualify to receive Plan Benefits. I agree to resign on my Separation Date.

Please return this completed Election Form to [INSERT NAME/DEPARTMENT] no later than 5:00 p.m. on
[INSERT DATE].

	 	 	 
	 

Employee

	 	 

	 	 	 
	 

Date

	 	 
	 
	APPROVED:
	 	 

	 	 	 
	 

	 	 
	By: [Insert Name, as an authorized representative of <Insert Employer>]

	 	 	 
	 

Date

	 	 

 

18

 

APPENDIX C

GOODRICH CORPORATION

VOLUNTARY SEPARATION PLAN

DESIGNATED WINDOW PERIOD, ELIGIBILITY CRITERIA

AND SEPARATION DATE PROVISIONS

 

19EX-10.3

EXHIBIT 10.3

SETTLEMENT AGREEMENT AND RELEASE

     THIS SETTLEMENT AGREEMENT AND RELEASE (this “Agreement” ), dated as of September 10,
2009 (for reference purposes only), is entered into to be effective as of September 14, 2009 (the
“Effective Date”) by and between DANIEL I. RIFKIN, M.D., P.C. D/B/A SLEEP MEDICINE CENTERS
OF WESTERN NEW YORK, a New York professional corporation (the “Rifkin PC”), SLEEP MEDICINE
CENTERS OF FLORIDA, LLC, a Florida limited liability company (“SMCF”), and DANIEL I.
RIFKIN, M.D. (“Rifkin,” and together with the Rifkin PC and SMCF, “Releasors”),
AVASTRA EASTERN SLEEP CENTERS, INC., a New York corporation (“Eastern”), SDC HOLDINGS, LLC,
an Oklahoma limited liability company (“SDC”), and GRAYMARK HEALTHCARE, INC., an Oklahoma
corporation (“Graymark”), with regard to the following circumstances:

     A. Releasors, Eastern and Avastra Sleep Centres Limited (in liquidation) f/k/a Avastra Ltd.,
an Australian corporation (“Avastra”), are parties to that certain Asset Purchase Agreement
dated October 10, 2007, as amended by that certain First Addendum to Asset Purchase Agreement,
dated October 12, 2007 (the “Purchase Agreement”).

     B. The Purchase Agreement was further amended by the First Amendment to October 10, 2007 Asset
Purchase Agreement, dated May 2, 2008 (the “Amendment”).

     C. Pursuant to the Amendment, Avastra and Eastern (i) issued a Promissory Note in favor of
Rifkin in the amount of $807,068 to evidence a portion of the earn-out obligations of Avastra and
Eastern under the Purchase Agreement (the “Note”) and (ii) granted a security interest in
certain accounts receivable of Eastern to secure the obligations of Avastra and Eastern under the
Note. The Purchase Agreement, the First Amendment, and the Note are collectively referred to
herein as the “Acquisition Documents”.

     D. In connection with the transactions contemplated by the Acquisition Documents, Rifkin and
Eastern entered into that certain Executive Employment Agreement, dated October 12, 2007 (as
amended from time to time, the “Employment Agreement”).

     E. SDC, Avastra, and AvastraUSA, Inc., a Delaware corporation (“AvastraUSA”), have
entered into that certain Stock Sale Agreement, dated August 19, 2009 (as amended from time to
time, the “SSA”), pursuant to which SDC will acquire all of the issued and outstanding
stock of Eastern from AvastraUSA (the “Eastern Stock”).

     F. In connection with and as a condition to the acquisition of the Eastern Stock by SDC,
Releasors and SDC desire to settle all obligations of Avastra and Eastern under the Acquisition
Documents.

     G. NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants
contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

     1. Liquidated Payment. In complete satisfaction of all obligations of Avastra and
Eastern under the terms of the Acquisition Documents, SDC shall (a) deliver to Releasors 100,000
shares of common stock of Graymark, in the name of Rifkin (the “Stock Consideration”) and (b) pay
Releasors $2,000,000 by wire transfer to the account set forth on Exhibit A (together with the
Stock Consideration, the “Liquidated Payment”). 

     2. Recapture of Liquidated Payment.

          2.1 (a) In addition to and not in limitation of any other remedies available to Eastern at
law or in equity, if at any time prior to the six-month anniversary of the Effective Date (the
“First Recapture Date”) (i) Eastern terminates (A) the Employment Agreement for Cause (as such term
is defined in the Employment Agreement) or (B) the Management Services Agreement by and between the
Rifkin PC and Eastern, dated as of the date hereof, pursuant to Section 16 of such agreement or
(ii) if Rifkin voluntarily terminates the Employment Agreement, Releasors shall jointly and
severally pay to SDC the full amount of the Liquidated Payment.

 

 

          (b) In addition to and not in limitation of any other remedies available to Eastern at law or
in equity, if at any time during the six-month period following the First Recapture Date (i)
Eastern terminates (A) the Employment Agreement for Cause (as such term is defined in the
Employment Agreement) or (B) the Management Services Agreement by and between the Rifkin PC and
Eastern, dated as of the date hereof, pursuant to Section 16 of such agreement or (ii) if Rifkin
voluntarily terminates the Employment Agreement, Releasors shall jointly and severally pay to SDC
$1,000,000 of the Liquidated Payment.

     3. Lock-Up. Releasors irrevocably agree that during the six (6) month period
following the Effective Date, without the prior written consent of Graymark, Releasors will not
have the right to, directly or indirectly: (a) offer for sale, sell or otherwise dispose of (or
enter into any transaction or device that is designed to, or could be expected to, result in the
disposition at any time in the future of) any portion of the Stock Consideration or (b) publicly
disclose the intention to do any of the foregoing.

     4. Assignment of Accounts Receivable. As partial consideration for the Liquidated
Payment, Releasors hereby assign to Eastern all of their right, title and interest in and to the
accounts receivable generated from the sleep diagnostic testing and other operations of Releasors
prior to the Effective Date.

     5. Release. Upon receipt of the Liquidated Payment and regardless of any recapture of
the Liquidated Payment pursuant to Section 2, each of Releasors shall on behalf of itself and each
of its affiliates, beneficiaries, heirs, successors, and assigns (“Related Persons”), (a)
release any and all rights in and to the accounts receivable of Eastern including the security
interest evidenced by the Financing Statement filed July 17, 2008 (Filing No. 200807170504435)
with the Secretary of State of New York and (b) release and forever discharge Eastern, Avastra,
AvastraUSA, SDC, Graymark and each of their respective officers, directors, stockholders, members,
managers, administrators, liquidators appointed, affiliates, successors and assigns (individually,
each a “Releasee” and collectively, “Releasees”) from any and all obligations under
the Acquisition Documents and any and all other causes of actions, actions, choses in actions,
suits, benefits, rights, claims, and demands of whatsoever kind or nature, in law or equity,
whether known or unknown, suspected or unsuspected, which such Releasor or any of such Related
Persons has against the respective Releasees arising on or prior to the Effective Date
(collectively, “Claims”).Release. Upon receipt of the Liquidated Payment and regardless of
any recapture of the Liquidated Payment pursuant to Section 2, each of Releasors shall on behalf of
itself and each of its affiliates, beneficiaries, heirs, successors, and assigns (“Related
Persons”), (a) release any and all rights in and to the accounts receivable of Eastern including
the security interest evidenced by the Financing Statement filed July 17, 2008 (Filing No.
200807170504435) with the Secretary of State of New York.

     6. Covenant. Each of Releasors, jointly and severally, covenants to refrain from
asserting any Claim, or commencing, instituting or causing to be commenced, any proceeding of any
kind against any Releasee, based upon any matter released hereby.

     7. Releasors’ Representations and Warranties. Each of Releasors, jointly and
severally, represents and warrants to SDC, Eastern and Graymark as follows:

     (a) No Releasor has assigned any Claim (or any part thereof) and that it is unaware of any
individual or entity asserting an interest or right in or with respect to any Claims.

     (b) The common stock of Graymark being acquired pursuant to this Agreement (the “Stock
Consideration”) will be acquired for Releasors’ own accounts without the participation of any
other person, with the intent of holding the Stock Consideration for investment and without the
intent of participating, directly or indirectly, in a distribution of the Stock Consideration and
not with a view to, or for resale in connection with, any distribution of the Stock Consideration.

     (c) Releasors have such knowledge and experience in financial, tax and business matters as to
be capable of evaluating the merits and risks of, and bearing the economic risks entailed by, an
investment in Graymark and of protecting its interests in connection with this transaction.
Releasors recognize and acknowledge that an investment in Graymark involves a high degree of risk.
Releasors are able to bear the economic risks of the investment in the Stock Consideration,
including the risk of a complete loss of the value of the Stock Consideration.

 

 

     (d) Releasors have had adequate opportunity to review Graymark’s reports filed with the
Securities and Exchange Commission (the “Graymark SEC Reports”) and to ask questions of and
receive answers from Graymark with respect to the information contained in the Graymark SEC
Reports.

     (e) Releasors acknowledge that neither Graymark nor any of its agents, employees or affiliates
has made any representations or warranties, oral or otherwise, concerning Graymark, other than
those contained in the Graymark SEC Reports. In making the decision to accept Stock Consideration
as a portion of the Liquidated Payment, Releasors did not rely upon any information other than the
results of Releasors’ independent review of the Graymark SEC Reports.

     (f) Releasors understand and agree that the Stock Consideration will be issued to Releasors
without registration under any state law relating to the registration of securities for sale, and
will be issued and sold in reliance on the exemptions from registration under the Securities Act of
1933, as amended (the “Securities Act”), provided by Section 4(2) thereof and the rules and
regulations promulgated thereunder.

     (g) The Stock Consideration cannot be offered for sale, sold or transferred by Releasors other
than pursuant to: (i) (A) an effective registration under the Securities Act, or (B) an exemption
from registration under the Securities Act; (ii) evidence satisfactory to Graymark of compliance
with the applicable securities laws of other jurisdictions; and (iii) the restrictions on sale
contained in Section 3 of this Agreement. Graymark shall be entitled to rely upon an opinion of
counsel satisfactory to it with respect to compliance with the above laws.

     (h) Releasors understand that there will be placed on the certificates for the Stock
Consideration, or any substitution therefor, in addition to any other legend which may be required,
a legend stating in substance:

THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 OR UNDER THE SECURITIES ACT OF ANY OTHER STATE, AND THE
SHARES MAY NOT BE RESOLD, ASSIGNED OR TRANSFERRED BY A PURCHASER THEREOF WITHOUT
BEING REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY OTHER APPLICABLE STATE
SECURITIES LAW OR UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE IN THE OPINION
OF COUNSEL TO THE COMPANY.

FURTHERMORE, THE SHARES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS OF A
SETTLEMENT AGREEMENT AND RELEASE DATED SEPTEMBER 10, 2009, A COPY OF WHICH MAY BE
INSPECTED AT THE COMPANY’S PRINCIPAL OFFICE.

     8. Representations of Graymark. Graymark hereby represents and warrants to Releasors
that:

     (a) The Stock Consideration has been duly authorized and, when issued in accordance with this
Agreement, will be validly issued, fully paid, and nonassessable.

     (b) Graymark has filed all Graymark SEC Reports required to be filed with the Securities and
Exchange Commission and as of their respective dates, such Graymark SEC Reports complied in all
material respects with the applicable securities laws. As of their respective dates, none of the
Graymark SEC Reports contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading, except for such statements, if
any, as have been corrected by subsequent filings with the Securities and Exchange Commission.

     9. Severability. If any provision of this Agreement is held invalid or unenforceable
by any court of competent jurisdiction, the other provisions of this Agreement will remain in full
force and effect. Any provision of
this Agreement held invalid or unenforceable only in part or degree will remain in full force
and effect to the extent not held invalid or unenforceable.

     10. Arbitration. In the event of any dispute or any action or proceeding arising under
or in connection with this Agreement, the parties shall resolve such dispute only by arbitration
with a single arbitrator, conducted in Chicago, Illinois, by the American Arbitration Association
pursuant to its Commercial Arbitration

 

 

Rules. Notwithstanding the choice of law provisions set
forth in Section 11, the Federal Arbitration Act shall govern all proceedings brought hereunder.

     11. Governing Law. This Release shall be governed by and construed under the laws of
the State of New York without regard to conflicts of laws principles thereof.

     12. Successors and Assigns; Third Party Beneficiaries. This Agreement is binding upon
and inures to the benefit of the parties and their respective successors, heirs, and permitted
assigns. Notwithstanding anything to the contrary herein, each of the Releasees that are not a
party to this Agreement are specifically and expressly made third party beneficiaries of this
Agreement.

     13. Counterparts. This Amendment may be executed in any number of counterparts. A
counterpart may be a facsimile or an electronic copy. Together all counterparts shall constitute
one document.

     14. Entire Agreement. This Agreement constitutes the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior agreements,
understandings and negotiations, both written and oral between the parties with respect to the
subject matter of this Agreement.

[Signature Pages to Follow]

 

 

     IN WITNESS WHEREOF, the parties have duly executed this Settlement Agreement and Release as of
the Effective Date.

	 	 	 	 	 
	RIFKIN PC:       	DANIEL I. RIFKIN, M.D., P.C.

 	 
	 	By  	/S/ DANIEL I. RIFKIN, M.D.
 	 
	 	 	Name:  	Daniel I. Rifkin, M.D. 	 
	 	 	Title:  	President 	 
	 
	SMCF:            	SLEEP MEDICINE CENTERS OF FLORIDA, LLC

 	 
	 	By  	/S/ DANIEL I. RIFKIN, M.D.
 	 
	 	 	Name:  	Daniel I. Rifkin, M.D. 	 
	 	 	Title:  	President 	 
	 
	 	 	 
	RIFKIN: 	/S/ DANIEL I. RIFKIN, M.D.
 	 
	 	Daniel I. Rifkin 	 
	 	 	 
	 
	EASTERN:         	AVASTRA EASTERN SLEEP CENTERS, INC.

 	 
	 	By  	/S/ DANIEL I. RIFKIN, M.D.
 	 
	 	 	Name:  	Daniel I. Rifkin, M.D. 	 
	 	 	Title:  	President 	 
	 
	GRAYMARK:        	GRAYMARK HEALTHCARE, INC.

 	 
	 	By  	/S/ STANTON NELSON
 	 
	 	 	Name:  	Stanton Nelson 	 
	 	 	Title:  	CEO 	 
	 
	SDC:             	SDC HOLDINGS, LLC

 	 
	 	By  	/S/ STANTON NELSON
 	 
	 	 	Name:  	Stanton Nelson 	 
	 	 	Title:  	CEO

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