Document:

Employment Agreement between Richard G. Russell and IPC

 Exhibit 10.14 
 EXECUTION COPY 
 IPC The Hospitalist Company 
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”), dated effective as of January 11, 2008 (the “Effective Date”), by and between IPC The Hospitalist
Company, a Delaware corporation (the “Company”), and RICHARD RUSSELL (“Employee”) amends, restates and supersedes that certain Employment Agreement, dated as of February 19, 2003, between In-Patient
Consultants Management, Inc, which is the former name of the Company, and the Employee (the “Prior Agreement”). 
 BACKGROUND INFORMATION 
 A. The Company desires to encourage the continuity of its management and secure for its benefit the
skills of individuals who provide unique value to its operations; 
 B. The Company recognizes that Employee possesses certain skills and
expertise which give Employee peculiar value to the Company, the loss of which cannot be reasonably or adequately replaced; 
 C. The Company
desires to retain these skills for the benefit of the Company and to provide Employee with compensation commensurate with such skills; and 
 D. Employee and the Company desire to enter amend, restate and supersede the Prior Agreement on the terms and conditions contained herein. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

ARTICLE I 
 BASIC EMPLOYMENT 

 1.1 Employment. The Company agrees to employ Employee, and Employee hereby agrees to be employed by the Company, to perform
the duties more fully described below for the compensation and duration specified in this Agreement, as it may be amended from time to time, subject to and upon all the terms and conditions set forth herein. 
 1.2 Term. The term of employment under this Agreement shall commence as of the Effective Date, and continue in full force and effect after
the Effective Date for a period of one (1) year (the “Term”); provided, however, that the Term shall automatically be extended for successive one (1) year periods unless either party provides the other with at least
ninety (90) days advance written notice of its intention not to extend the Term. Each twelve (12) month period during the Term or any extension shall be referred to herein as a “Contract Year.” Notwithstanding anything to
the contrary contained herein, the Term will terminate upon 

 
termination of Employee’s employment by the Company or by Employee pursuant to Article III below. Upon the Effective Date, all previously existing
employment agreements or arrangements, including the Prior Agreement, between Employee and the Company (other than this Agreement) shall terminate automatically and be of no further force or effect. 
 1.3 Duties and Powers. 
 1.3.1 Service with the Company. During the Term, Employee shall (i) serve as the Company’s Executive Vice President and Chief Development Officer and shall report directly to the Chief Executive Officer of the
Company (the “CEO”), (ii) have such responsibilities, duties and authorities, and render such services for the Company, that Employee has or renders for the Company as of the Effective Date, and (iii) have such other
responsibilities, duties and authorities, and render such other services for the Company, that are consistent with Employee’s position as Executive Vice President and Chief Development Officer as the CEO may from time to time reasonably direct.

 1.3.2 Service with Subsidiaries and other Affiliates. During the Term Employee shall (i) have such
responsibilities, duties and authorities, and render such services for the Company’s subsidiaries and other affiliates that (a) Employee renders for such subsidiaries and other affiliates as of the Effective Date and (b) that are
consistent with Employee’s position as Executive Vice President and Chief Development Officer of the Company, as the CEO may from time to time reasonably direct; and (ii) at the reasonable request of the CEO, serve as the Chief Financial
Officer, Treasurer and/or director of each subsidiary or other affiliate of the Company; provided that Employee shall not be entitled to any additional compensation for serving as an officer or director of the Company’s subsidiaries and
other affiliates. 
 1.3.3 Performance of Duties. Employee will devote his best efforts, energies and abilities
and his full business time, skill and attention (except for permitted vacation periods and reasonable periods of illness) to the business and affairs of the Company, its subsidiaries and other affiliates and shall perform the duties and carry out
the responsibilities assigned to his, to the best of his ability and in a diligent, trustworthy, businesslike and efficient manner. Employee acknowledges that his duties and responsibilities will require his full-time business efforts and agrees
that during the Term he will not engage in any other business activity or have any business pursuits or interests, except activities or interests which do not conflict with the business of the Company, its subsidiaries and other affiliates and do
not interfere with the performance of Employee’s duties hereunder; provided that Employee shall be permitted to (i) continue to serve on civic and charitable boards and committees (provided that in January of each year hereunder,
Employee furnishes the Board with a list of the civic and charitable boards and committees on which Employee is then serving), and (ii) manage his personal investments and affairs, in each case so long as the activities referred to in clauses
(i) and (ii) above otherwise comply with the terms and conditions of this Agreement, including the provisions of this Section 1.3.3; provided further that, other than the positions and entities listed in clause (i)(b)
above, Employee shall not, without the prior written consent of the Board, be permitted to serve on any for profit entity’s board of directors or committee or hold any similar position with respect to any such entity. 
  

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 1.4 Compensation. During the Term, the Company agrees to pay to Employee an initial base
salary at the rate of $206,000.00 per annum, commencing on the date hereof (the “Base Salary”), pro rated for 2007 from the Effective Date. The Base Salary shall be payable in arrears in substantially equal payments at such frequency as is
the custom and practice of the Company and on at least a monthly basis. During the Term, the Base Salary shall be subject to annual review by the compensation committee of the board of directors of the Company (the “Committee”), and
the Base Salary may be increased by the Committee in its sole discretion, but the Base Salary (including any previously approved increase) may not be decreased as long as Employee remains a full-time employee of the Company. 
 1.5 Bonus Compensation. During the Term, in addition to the Base Salary, Employee shall be eligible to receive an annual performance-based
cash bonus (“Annual Bonus”) during each Contract Year with respect to each fiscal year of the Company (subject to Section 4.1). The Annual Bonus shall be based upon quantitative and qualitative performance targets as
established by the Committee in it sole discretion in accordance with the Company’s annual bonus plan; provided, that Employee’s Annual Bonus payable for achievement of the target level of performance designated by the Committee
shall be not less than fifty percent (50%) of Base Salary in effect at the time the Committee establishes the Annual Bonus (the Annual Bonus for the 2007 Contract Year in effect at the Effective Date is deemed to meet this requirement). The
Committee may, in its discretion, specify amounts of Annual Bonus payable above or below the designated target amount for achievement of performance at specified levels above or below the designated target level of performance. The Annual Bonus
shall be payable to Employee at the same time bonuses are paid to other executive officers in accordance with the Company’s annual bonus plan, but in no event later than March 15 of the calendar year following the calendar year in which
the Annual Bonus is not subject to a substantial risk of forfeiture within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”). 
 1.6 Working Conditions/ Benefits. 
 1.6.1 Vacation. Employee shall be entitled to twenty (20) business days of paid vacation per calendar year, prorated for 2007. Any unused vacation days shall accrue from year to year up to a maximum
of thirty-five (35) days accrued at any one time. Employee shall accrue ten (10) paid sick days per calendar year. The maximum accumulation of vacation and sick days shall be in accordance with the Company’s policies and practices.

 1.6.2 Insurance and Other Benefits. During the Term, Employee shall be eligible to participate in and, if
eligible, to receive employee and dependent group medical, dental, disability, life insurance, 401(k) and such other benefits made available by the Company in accordance with the Company’s policies and procedures established from time to time,
or, if there is no policy or procedure in place at any applicable time, then on the same basis as other senior management of the Company. 
 1.6.3 Expenses. During the Term, Employee shall be entitled to reimbursement for all approved reasonable travel and other business expenses incurred by Employee in connection with his services to the
Company pursuant to the terms of this Agreement. All business expenses for which Employee seeks reimbursement from the Company shall be adequately documented by Employee in accordance with the Company’s procedures covering expense reimbursement
and in compliance with the regulations of the Internal Revenue Service. 
  

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 1.6.4 Facilities. Company shall provide Employee with office space at its
headquarters in North Hollywood, California, and secretarial and other support services and facilities commensurate with Employee’s position. 
 1.6.5 Equity Compensation Grants. During the Term, Employee shall be eligible to receive, at the discretion of the Committee, grants of stock options and/or other equity under, and subject to the terms
of, the Company’s 2007 Incentive Compensation Plan or any such other incentive compensation plan that may be maintained by the Company from time to time. 
 ARTICLE II 
 PROPRIETARY AND CONFIDENTIAL INFORMATION 
 2.1 The Company’s Proprietary, Confidential and Trade Secret Information. Employee may have access to or otherwise obtain knowledge of
confidential information of the Company and/or its affiliates (whether such affiliation is through a management agreement between the Company and/or another entity or otherwise) (“Affiliates”), including, without limitation, the
Company’s and Affiliates’ selling and servicing methods and business techniques, software programs, policies and procedures, business records, training, service and business manuals, promotional materials, training courses and other
training and instructional materials, vendor and product information, customer and prospective customer lists, other customer and prospective customer information, information concerning the Company’s and Affiliates’ current or any future
or proposed work, services, or products, the facts that any such work, services, or products are planned, under consideration, or in production, as well as any descriptions thereof, and other business information (“Confidential
Information”). Confidential Information shall not include information that Employee can demonstrate: (i) was publicly available at the time of disclosure, or later became publicly available through no act or omission of the Employee;
(ii) was rightfully in Employee’s possession prior to Employee’s date of employment by the Company; or (iii) was rightfully received by Employee from a third party without any obligation of confidentiality. 
 Employee acknowledges that (a) all such Confidential Information, whether reduced to writing, maintained on any form of electronic media, or maintained in the mind
or memory of Employee and whether compiled by the Company, its Affiliates and/or Employee, derives independent economic value from not being readily known to or ascertainable by proper means by others who can obtain economic value from its
disclosure or use; (b) reasonable efforts have been made by the Company and its Affiliates to maintain the secrecy of such information; (c) all Confidential Information and materials have and will be made available to Employee only for the
limited purpose of the performance of Employee’s duties as an employee; (d) all Confidential Information of the Company and its Affiliates has been developed or compiled by the Company and its Affiliates through substantial expenditures of
time, effort and money and constitutes valuable and unique property of the Company and its Affiliates; and (e) all Confidential Information and materials are the sole property of the Company or its Affiliates. Any retention and use of such
information by Employee during Employee’s employment with the Company 

  

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(except in the course of performing Employee’s duties and obligations hereunder) or after the termination of Employee’s employment shall constitute
a misappropriation of the Company’s trade secrets and Confidential Information and unfair competition. 
 The Company’s and its Affiliates’
business is the development and implementation of programs for the management of comprehensive hospital-based care for patients within structural in-patient programs, the provision of hospitalist and associated services throughout the United States
and the development and utilization of automated and electronic work tools and processes for hospital-based healthcare providers. Employee acknowledges and agrees that the development of relationships between the Company or its Affiliates and its
customers and clients entails great expense and difficulty and requires frequent personal contact with such customers and clients, that the development of the Company’s and its Affiliates’ staff and employees entails great difficulty and
expense and extensive training and supervision of such staff and employees, and that but for Employee’s employment by the Company, Employee would have no contact with or knowledge of the identities, addresses and other contact information
pertaining to the Company’s or its Affiliates’ customers, clients, staff, or other employees, all of which constitute part of the Company’s and its Affiliates’ Confidential Information. 
 Accordingly, and without diminishing in any way the rights and remedies of the Company under any applicable law and regulation, Employee will keep in strict confidence,
and will not, directly or indirectly, at any time during or after Employee’s employment with the Company, disclose, furnish, disseminate, make available or, except in the course of performing Employee’s duties of employment, use any
Confidential Information or other trade secrets or confidential business and technical information of the Company or its Affiliates. 
 Employee expressly
authorizes the Company to notify any person, firm entity, hospital, medical group, medical provider or corporation employing Employee in the future, or evidencing an intent to employ Employee in the future, of the existence and provisions of this
Agreement. 
 Employee acknowledges that Employee’s use of Confidential Information regarding the Company accounts, clients, customers, staff and/or
employees by Employee during or after the Term of Employee’s exclusive and non-exclusive employment by the Company or consultation with the Company, except as is necessary in the course and scope of performing Employee’s job duties for the
Company, will materially and adversely affect the Company, and all of its shareholders, economically and otherwise, and constitutes unfair competition. Accordingly, as an additional inducement to the Company to enter into the Agreement with the
Employee, Employee agrees that: 
 2.1.1 Use of Trade Secrets and Confidential Information. During and after the
Term of Employee’s exclusive or non-exclusive employment by the Company or consultation with the Company, except as is necessary in the course and scope of performing Employee’s job duties for the Company, Employee will not use the
Company’s trade secrets or Confidential Information, directly or indirectly, alone or in concert with any person or entity, for Employee’s own account or for, or on behalf of, any other person or entity, to solicit any business from
accounts, clients or customers of the Company or its Affiliates who have dealt with the Company or its Affiliates at any time during the Term. 
  

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 2.1.2 Non-Solicit. During the Term and for a period of two (2) years
following expiration or termination of the Term, regardless of the reason for the termination, Employee will not directly or indirectly solicit or induce or attempt to solicit or induce any officer, director, employee, sales representative, agent or
consultant of the Company or its Affiliates to terminate or adversely alter their employment, representation or other association with the Company or its Affiliates. In addition, at no time after Employee leaves employment with the Company will
Employee seek to obtain or misappropriate any of the Company’s trade secrets or Confidential Information from any current or former Company employee or consultant. 
 2.1.3 Disclosure. In the event that Employee is requested or required in any proceeding to disclose any Confidential
Information, Employee shall: (i) provide the Company with prompt written notice of such request(s) and the documents or information requested so that the Company or its Affiliates may seek an appropriate protective order and/or waive
Employee’s compliance with the provisions of this Article II; and (ii) consult with the Company or its Affiliates as to the advisability of taking legally available steps to resist or narrow such request. It is further agreed that,
if in the absence of a protective order or the receipt of a written waiver from the Company or its Affiliates, the Employee is nonetheless, in the opinion of his legal counsel, compelled to disclose any of the Confidential Information or else stand
liable for contempt or suffer other censure or penalty, Employee agrees to disclose to such tribunal only such Confidential Information as is legally required, which disclosure shall be without liability hereunder; provided, however, that Employee
shall give the Company written notice of the Confidential Information to be so disclosed as far in advance of its disclosure as is practicable and Employee shall request, from the parties to whom the Confidential Information is disclosed, assurance
that confidential treatment will be accorded to such portion of the Confidential Information required to be disclosed as the Company or its Affiliates designates. 
 2.2 Return Of Property. Employee agrees that upon termination of Employee’s employment with the Company, for any reason, Employee shall promptly return to the Company, in good condition, all
property of the Company or its Affiliates, including, without limitation, the originals and all copies of any materials which contain, reflect, summarize, describe, analyze or refer or relate to any Confidential Information. In the event that such
items are not so returned, the Company or its Affiliates will have the right to charge Employee for all reasonable damages, costs, attorneys’ fees and other expenses incurred in taking, removing and/or recovering such property. 
 2.3 Assignment Of Inventions. Employee hereby assigns and agrees to assign to the Company, its Affiliates, successors, assigns or nominees,
all of Employee’s right, title and interest in and to any and all “Inventions,” which include any and all discoveries, developments, designs, inventions, improvements, processes, techniques, business records, software programs,
training, service and business manuals, promotional materials, training courses and other results and proceeds of Employee’s services, regardless of whether subject to patent, registration, trade mark or copyright protection or protection under
similar statutes, made, conceived, suggested, either solely or jointly with others, by Employee while in the Company’s employ, whether in the course of employment with the use of the Company’s time, material or facilities or that is in any
way within or related to the existing or contemplated scope of the Company’s or its Affiliates’ business or result from the use of property owned, leased or contracted for by the Company. Inventions shall also include anything that derives
actual or potential economic value from not 

  

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being generally known to the public or to other persons who can obtain economic value from its disclosure or use. Any Inventions directly derivative of the
Company’s or its Affiliates’ planned or existing products or services, developed or under development during Employee’s employment and made, conceived or suggested by Employee, either solely or jointly with others, within one
(1) year following termination of Employee’s employment under the Agreement, or any successor agreement shall be irrebuttably presumed to have been so made, conceived or suggested in the course of such employment with the use of the
Company’s time, materials and/or facilities. All work papers, reports, documentation, drawing, photographs, negatives, tapes and masters therefor, prototypes, other tangible items and materials, and all other results and proceeds of
Employee’s services hereunder, made, conceived, or suggested, either solely or jointly with others, by Employee while in the Company’s employ, whether in the course of employment with the use of the Company’s time, material or
facilities or in any way within or related to the existing or contemplated scope of the Company’s or its Affiliates’ business, including, without limitation, and such results and proceeds directly derivative of the Company’s or its
Affiliates’ planned or existing products or services, developed or under development during Employee’s employment and made, conceived or suggested by Employee, either solely or jointly with others, within one (1) year following
termination of Employee’s employment under the Agreement or any successor agreements, and including, without limitation, any and all such items generated and maintained on any form of electronic media, constitute specially commissioned works
made for hire as defined in the United States Copyright Act, which works and the copyrights therein and thereto shall be the property of the Company or its Affiliates as the author thereof. To the extent that California law applies to this
Agreement, this paragraph does not apply to any invention that qualifies fully under the provisions of Section 2870 of the California Labor Code, the text of which is reproduced in Section 2.7, and Employee agrees and acknowledges
that Employee will bear the full burden of proving to the Company that an Invention qualifies fully under Section 2870. 
 Upon request by the Company
with respect to any such Inventions, Employee agrees to execute and deliver to the Company, at any time during or after Employee’s employment, such further documents as the Company may require in connection with the rights, privileges and
property granted to the Company or its Affiliates in the preceding paragraph (the “Rights”), when so requested, at the expense of the Company, but without further or additional, consideration. In the event the Company is unable,
after reasonable effort, to secure Employee’s signature on any document(s) required in accordance with the provisions of this Article II, Employee irrevocably designates the Company or its Affiliates, or their nominee, as Employee’s
agent or attorney-in-fact to act on Employee’s behalf, with the right, but not the obligation, to execute and deliver all such further documents for the purposes aforesaid. Employee also irrevocably designates the Company or its Affiliates, or
their nominee, as Employee’s agent or attorney-in-fact, with the right but not the obligation, for the sole benefit of the Company or its Affiliates, and at the Company’s or its Affiliates’ expense, to bring, prosecute, defend and
appear in suits, actions, and proceedings of any nature under or concerning all such Rights; and to take such action as the Company or its Affiliates may deem advisable to enforce, protect, and/or defend any of the Rights; and to litigate, collect
and receipt for all damages arising from any infringement of any such Rights. Any such action may be taken by the Company or its Affiliates in the name of Employee or otherwise, and the Company or its Affiliates may join Employee as a plaintiff or
defendant in any such suit, action or proceeding. 
  

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 Employee further acknowledges that the foregoing assignment of rights is made in consideration of, and is adequately
supported by good, valuable and sufficient consideration including but not limited to the agreement of the Company to employ Employee. 
 2.4
Disclosure of Agreement. At any time prior to an initial public offering of the common stock of the Company (an “IPO”), Employee shall not disclose the terms and conditions of the Agreement to any third party, except
to (a) Employee’s attorneys, accountants and other advisors (after first instructing said person that same constitutes Confidential Information and trade secrets and securing said person’s irrevocable promise not to disclose same),
(b) the extent Employee may be required to do so in connection with customary disclosures in the ordinary course of business, as, for example, in regard to loan applications, by judicial process, or in connection with governmental filings made
in connection with an IPO of the Company. 
 2.5 Remedies. Employee acknowledges and agrees that the provisions of this
Article II are reasonable and necessary to protect the legitimate professional and business interests of the Company and its Affiliates and that any breach or violation hereof would result in irreparable damage and injury to the Company or
its Affiliates with the extent and the amount of the damages and injury being difficult, if not impossible, to ascertain. Employee acknowledges and agrees that such damages and injury cannot be adequately compensated with monetary damages, and
Employee further agrees that the Company or its Affiliates may seek and obtain injunctive relief against the breach or threatened breach of any of the provisions of this Article II and/or specific enforcement of such provisions in addition to
any other legal or equitable remedies which may be available and that are not inconsistent with the Dispute Resolution Procedure in Section 4.1, Employee agrees to waive any requirement for the securing or posting of any bond in
connection with such remedy. Should litigation be instituted to enforce any provision of this Article II, the prevailing party will be entitled to recover all costs incurred in connection with such action, including without limitation
reasonable legal fees, cost of investigation and cost of settlement; provided, however, that in the case of recovery by the Employee, such recovery shall only be allowed for amounts incurred during the life time of the Employee, the
amount of such recovery provided during one calendar year shall not affect the amount of recovery during a subsequent calendar year, such recovery may not be exchanged or substituted for other forms of compensation to Employee, and any amounts paid
with respect to such recovery will be paid no later than the last day of the Employee’s taxable year following the taxable year in which he incurred the expense giving rise to such recovery.  
 2.6 Reasonableness of Obligations. Employee acknowledges and agrees that Employee’s obligations under this Article II are
reasonable in the context of the nature of the Company’s and its Affiliates’ business and the competitive injuries likely to be sustained by the Company or its Affiliates if Employee were to violate such obligations. Employee further
acknowledges that the Agreement is made in consideration of, among other things, this Article II and is adequately supported by good, valuable and sufficient consideration, including but not limited to the agreement of the Company to employ
Employee. Employee specifically agrees that the provisions of this Article II shall survive the termination or expiration of the Agreement. 
  

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 2.7 California Labor Code Section 2870. 
 2.7.1 Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or his rights
in an invention to his or his employer shall not apply to an invention that the employee developed entirely on his or his own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those
inventions that either: 
 (a) Relate at the time of conception or reduction to practice of the invention to the
employer’s business, or actual or demonstrably anticipated research or development of the employer. 
 (b) Result from
any work performed by the employee for the employer. 
 2.7.2 To the extent a provision in an employment agreement purports to
require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (A), the provision is against the public policy of California and is unenforceable. 
 ARTICLE III 
 TERMINATION

 3.1 Termination. The Term and Employee’s employment (a) shall automatically terminate immediately upon
Employee’s death, (b) may be terminated at any time by the Board as set forth herein for Cause (as defined in Section 3.2.2) or without Cause, or by reason of Employee’s disability, upon written notice to Employee,
(c) may be terminated at any time by Employee for Good Reason (as defined in Section 3.4.5) upon written notice to the Company, as set forth below, or (d) may be terminated at any time by Employee without Good Reason in
accordance with Section 3.34. In the event of the Employee’s employment with the Company terminates after the expiration of the Term due to a notice of non-renewal by Employee in accordance with Section 1.2, the Employee
shall only be entitled to the Accrued Obligations payable as described in Section 3.2.1 below. For purposes hereof, “disability” shall mean the Employee’s inability to perform Employee’s duties under this Agreement
for sixty (60) consecutive days or one-hundred twenty (120) days during any twelve (12) month period, with or without reasonable accommodation, due to illness, accident, or other incapacity as determined by the Committee in its sole
discretion. 
 3.2 Termination for Cause. The Company shall have the right to terminate Employee’s employment at any time
for Cause by giving Employee written notice of the effective date of termination. The determination of whether Cause exists shall be made in the sole discretion of the CEO. 
 3.2.1 Obligations Upon Termination for Cause. If the Company terminates Employee’s employment for any of the reasons
set forth in this Section 3.2.1, the Company shall have no further obligation hereunder from and after the effective date of such termination, except for (x) payment, within thirty (30) days of such termination, of
Executive’s Base Salary through the date of termination, (y) payment of amounts or benefits accrued and vested as of the date of termination under any retirement plan, profit sharing plan, employee benefit plan, incentive compensation
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Company in accordance with the terms of such plans, and (z) any Annual Bonus earned and payable for the immediately preceding fiscal year to the extent
unpaid on the date of such termination, payable at the same time as such annual bonuses are paid to other executives of the Company, but in no event later than March 15 of the calendar year following the year in which such Annual Bonus was no
longer subject to a substantial risk of forfeiture (collectively, the “Accrued Obligations”), and the Company shall have all other rights and remedies available under this Agreement, at law or in equity. 
 3.2.2 Cause Definition. “Cause” shall solely be defined as: 
 (a) fraud, misappropriation, embezzlement or other act of material misconduct against the Company; 
 (b) substantial, continuing and willful failure to render services in accordance with the terms of this Agreement; 
 (c) knowing violation of any laws, rules or regulations of any governmental or regulatory body material to the business of the Company; or

 (d) conviction of or a plea of nolo contendere to a felony or a crime including moral turpitude, or a charge or
indictment of a felony or of any crime involving moral turpitude the defense of which renders Employee substantially unable to perform his services hereunder. 
 3.3 Voluntary Termination by Employee; Death or Disability. Employee may terminate his employment by the Company at any time without Good Reason upon sixty (60) days’ advance written notice to
the Company. The Term shall automatically terminate in the event the Employee’s employment terminates as a result of his death or is terminated by the Company as a result of his disability. If Employee’s employment with the Company is
terminated pursuant to this Section 3.3, the Company shall have no further obligation hereunder from and after the effective date of such termination except for the Accrued Obligations payable as described in Section 3.2.1
and the payments described in 4.1. Employee (or his heirs, executors or administrators) and the Company shall, however, continue to be bound by any provisions of this Agreement that expressly survive termination of the Term. 
 3.4 Termination by Employee for Good Reason or by Company without Cause. 
 3.4.1 Termination by Employee for Good Reason. Employee may terminate his employment with the Company for Good Reason upon
written notice to the Company, provided, however, that in order for Employee to have a termination of employment for Good Reason due to an alleged material breach pursuant to Section 3.4.5(d) below, the Company must have
failed to remedy such material breach within the thirty- (30) day cure period specified in Section 3.4.5 (or, in the case of any breach (or breaches) which is capable of cure, but not reasonably within such thirty (30) day period,
then the Company must have failed to commence efforts to cure within such thirty (30) day period and, thereafter, must have failed to continue diligently in good faith its efforts to cure until such cure is effected). 
  

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 3.4.2 Termination without Cause. The Company may terminate Employee’s
employment without Cause upon sixty (60) days’ advance written notice to Employee. 
 3.4.3 Separation
Benefits. In the event that Employee’s employment with the Company is terminated by Employee for Good Reason or by the Company without Cause, the Company shall pay or provide to Employee the Accrued Obligations payable as described
in Section 3.2.1 and the payments described in 4.1. In addition, subject to (x) Employee’s execution and delivery to the Company of a release in the form as attached hereto as Exhibit A no later than forty-five
(45) days following the date of such termination and (y) Employee’s non-revocation of such release, the Company shall pay or provide to Employee the following; (a) the Severance Payment, as set forth in Section 3.4.4;
(b) the Welfare Benefits Payment, as set forth in Section 3.4.4; (c) medical and dental benefits to Employee and his covered dependents (to the extent applicable) upon the same terms and conditions as if Employee continued to
remain an active employee of the Company (in all events below determined without regard for any diminution of such coverage constituting Good Reason for his resignation hereunder) for the Severance Period. Subsequent to the Severance Period,
Employee (or his dependents, in the case of Employee’s death) will be eligible for coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA Coverage”) and making any payments required
to be made by Employee or his dependents, if applicable; and (d) the payment of Annual Bonus specified in Section 4.2. Further, Employee shall be entitled to continued participation in certain welfare plans as described in
Section 4.2. In addition, Employee and the Company shall continue to be bound by any provisions of this Agreement that expressly survive termination of this Agreement. 
 3.4.4 Severance and Welfare Benefits Payment. In the event that Employee is eligible to receive the Severance Payment
pursuant to Section 3.4.3 above, Employee shall be entitled to the following: (a) a payment in amount equal to the product of the Base Salary (as in effect immediately before such termination, without taking into account any
diminution in Base Salary constituting Good Reason for his resignation hereunder) (the “Severance Payment”) and (b) a lump sum cash payment, equal to the cost to the Company for providing life and disability insurance benefits
to Employee, based upon the cost immediately preceding such termination, for a period of twelve (12) months (the “Welfare Benefits Payment”). The Severance Payment shall be divided into substantially equal monthly cash
payments, which shall be payable in monthly installments, subject to Section 3.5 and subject to Employee’s execution of the release as provided in Section 3.4.3 for the duration of the twelve (12) month severance period. The
Company will pay all applicable payroll taxes related to such payments and shall withhold the Employee’s payroll taxes. The Welfare Benefits Payment shall be paid at the time of payment of the first installment of the Severance Payments. Any
monthly payments hereunder shall be paid on the same day of the month as the day of the month of Employee’s termination of employment. 
 3.4.5 Good Reason Definition. “Good Reason” shall mean the occurrence, without Employee’s express written consent, of any of the following events, provided that Employee shall have
given the Company written notice that circumstances that Employee believes potentially constitute one of the following Good Reason events exist no later than ninety (90) days after the date that such circumstances come into existence, with
specific explanation of the circumstances and the provision of this definition under which Good Reason has arisen: 
 (a) a
substantial reduction in Employee’s status, title, position or authority at the Company such that Employee is no longer the Executive Vice President and Chief Development Officer of the Company. 
  

 11 

 (b) a reduction in the Base Salary or the target amount of any Annual Bonus which
represents or will represent, in any 12-month period following such reduction, a reduction of $20,000 in either Base Salary, target Annual Bonus, or the aggregate of Base Salary and target Annual Bonus; 
 (c) the requirement that Employee render services outside of Los Angeles County, California or the relocation of the Company’s
headquarters outside of Los Angeles County, California; provided, however, that the foregoing shall not apply as to reasonable business travel commensurate with Employee’s position; or 
 (d) any material breach by the Company of any provision of this Agreement. 
 provided, however, that Good Reason shall not exist unless, following receipt by the Company of Employee’s notice under this Section 3.4.5, the Company is provided with thirty (30) days to remedy the
circumstances that would constitute Good Reason (or the additional period provided under Section 3.4.1). After receipt of Employee’s notice under this Section 3.4.5, Employee’s continued employment shall not, subject to the
requirements under this Section 3.4.5, constitute consent to, or a waiver of rights with respect to, any event or condition constituting Good Reason. Any termination of a Employee’s employment for Good Reason as a result of such event or
condition must occur no later than the second anniversary of the date that such condition initially arose. At any time after such notice has been given and Good Reason exists (and has not been cured), the Company may not terminate Employee’s
employment due to disability under Section 3.3. 
 3.4.6 Relationship to Change in Control Plan. It is
intended that, if Employee qualifies for payments under both this Section 3.5 and under the separate Executive Change in Control Plan or a successor plan or arrangement thereto, he will be entitled to the greater of the payment and benefits
provided either by this Agreement or such other plan or arrangement, but without duplication. 
 3.5 Rules for Compliance with Code
Section 409A. This Section 3.5 serves to ensure compliance with applicable requirements of Section 409A. Certain provisions of this Section 3.5 modify other provisions of this Agreement. If the terms of this
Section 3.5 conflict with other terms of the Agreement, the terms of this Section 3.5 control. Before January 1, 2009, the timing of payments and distributions under the Agreement and other terms relating to Section 409A
compliance may be varied to the extent permitted under applicable Section 409A transition rules and in good faith compliance with Section 409A and IRS Notice 2005-1 and other applicable guidance under Section 409A. 
  

 12 

 3.5.1 Special Rules for Separate Payments. 
 (a) Separate Welfare Benefits Payments. If payable, the Welfare Benefits
Payments shall be deemed to be separate payments from the payments under Section 3.3.1(b) equal to the cost of life and disability insurance benefits and payments, to the maximum extent permissible under Section 409A. These amounts shall
be payable as a lump sum on the 60th day following termination of employment, to the maximum extent possible, under the short-term deferral rule set forth
in Treasury Regulation § 1.409A-1(b)(4) and, to the extent such amounts are not payable as a short-term deferral, such amounts shall be payable instead under the “two-years/two-times” exclusion from Section 409A under Treasury
Regulation § 1.409A-1(b)(9)(iii), up to the applicable limits of that exclusion and, to the extent such payment is not covered by the “two-years/two-times” exclusion, such amounts shall be deemed to be deferred compensation under
Section 409A and shall be subject to the six-month delay rule set forth in Section 3.5.2, if applicable. 
 (b) Separate Severance Payments. If payable, payments in the nature of salary continuation payable under Section 3.3 shall be deemed to be separate payments from the payments in the nature of salary continuation under
Section 3.4, to the maximum extent permissible under Section 409A. The Severance Payments under Section 3.4 and the payments under Section 3.3 shall further be deemed to be separate payments for purposes of Section 409A as
follows: 
  

	 	(i)	Each monthly installment payable in the first three months following termination of employment shall be a separate payment, payable, to the maximum extent permissible, under the
short-term deferral rule set forth in Treasury Regulation § 1.409A-1(b)(4). If the monthly installment payable in the third month following termination would be payable in March, such installment shall be paid no later than March 15. The
first two of these monthly installments shall not be paid until the date after Employee has executed the release required under Section 3.4.3 or Section 3.3.1, as applicable, and may no longer revoke such release (this date varies but in
no event is later than 52 days after termination of employment). If these payments are not payable under as a short-term deferral, they shall be payable instead under the “two-years/two-times” exclusion from Section 409A under
Treasury Regulation § 1.409A-1(b)(9)(iii), up to the applicable limits of that exclusion (after applying the exclusion under Section 3.5.1(a)). To the extent these payments do not qualify as short-term deferrals or under the
“two-year/two-times” exception, such amounts shall be deemed to be deferred compensation under Section 409A and shall be subject to the six-month delay rule set forth in Section 3.5.2, if applicable. 

  

	 	(ii)	Each month’s installment payable in the fourth, fifth and sixth months following Employee’s termination of employment shall be a separate payment payable, to the maximum
extent permissible, under the “two-years/two-times” exclusion from Section 409A under Treasury Regulation § 1.409A-1(b)(9)(iii), up to the applicable limits of that exclusion (after applying the exclusion under
Section 3.5.1(a)). To the extent these payments do not qualify under the “two-year/two-times” exception, such amounts shall be deemed to be deferred compensation under Section 409A and shall be subject to the six-month delay rule
set forth in Section 3.5.2, if applicable. 

  

 13 

	 	 (iii)
	 Each month’s installment payable from the seventh through the 18th
 month following Employee’s termination of employment shall be deemed to include two separate payments, one of which is a payment equal to one-twelfth of the amount of the
“two-years/two-times” exclusion under Treasury Regulation § 1.409A-1(b)(9)(iii) not applicable to payments prior to the seventh month after termination under the rules set forth above and under the Executive Change in Control Plan or
any other plan or arrangement providing for severance payments to Employee before the seventh month after termination (the “Excluded Portion”) and the other separate payment for each month being the remaining amount of such Severance
Payment, if any (i.e., the total monthly Severance Payment minus the Excluded Portion), shall be deemed to be deferred compensation subject to Section 409A and shall be subject to the six-month delay rule set forth in Section 3.5.2, if
applicable. 

 3.5.2 Six-Month Delay Rule. 
 (a) General Rule. The six-month delay rule will apply to certain payments and benefits under the Agreement if all of the following
conditions are met: 
  

	 	(i)	Employee is a “key employee” (as defined in Code Section 416(i) without regard to paragraph (5) thereof) for the year in which the Termination occurs. The
Company will determine status of “key employees” annually, under administrative procedures applicable to all Section 409A plans and arrangements and applied in accordance with Treasury Regulation § 1.409A-1(i).

  

	 	(ii)	The Company’s stock is publicly traded on an established securities market or otherwise. 

  

	 	(iii)	The payment or benefit in question is a deferral of compensation and not excepted, exempted or excluded from being such by the short-term deferral rule, or the
“two-years/two-times” rule in Treasury Regulation § 1.409A-1(b)(9)(iii), or any other exception, exemption or exclusion; provided, however, that the exclusion under Treasury Regulation § 1.409A-1(b)(9)(v)(D) shall apply
only if and to the extent that it is not necessary to apply to any other payment or benefit payable within six months after the Employee’s Termination. 

 (b) Effect of Rule. If it applies, the six-month delay rule will delay a payment or benefit which otherwise would be payable under
this Agreement within six months after Employee’s Separation from Service. 
  

	 	(i)	Any delayed payment or benefit shall be paid on the date six months after Employee’s Separation from Service. 

  

 14 

	 	(ii)	During the six-month delay period, accelerated payment will occur in the event of the Employee’s death but not for any other reason (including no acceleration upon a Change in
Control), except for accelerations expressly permitted under Treasury Regulation § 1.409A-1 – A-6. 

  

	 	(iii)	Any payment that is not triggered by a termination of employment, or is triggered by a termination but would be made more than six months after the Termination (without applying
this six-month delay rule), or is triggered by Employee’s death shall be unaffected by the six-month delay rule. 

 (c) Limit to Application of Six-Month Delay Rule. If the terms of this Agreement or other plan or arrangement or document relating to this Agreement or payments hereunder impose this six-month delay rule in circumstances in which it
is not required for compliance with Section 409A, those terms shall not be given effect. 
 3.5.3 Certain
Benefits. With respect to benefits provided following Employee’s termination of employment, the provision of each such benefit (whether provided in kind by the Company, provided by third parties but to be paid for by the Company, or
reimbursed to Employee by the Company) in each calendar year shall be deemed a separate payment by the Company, and each component separately covered by clauses (i) – (v) below shall be deemed a separate payment. The following payment
rules apply to ensure, to the greatest extent possible, that provision of these benefits does not result in Section 409A penalties to Employee: 
  

	 	(i)	Payments that are non-taxable to Employee are intended to be not subject to Section 409A. 

  

	 	(ii)	Certain payments, including but not limited to business expense reimbursements, are excluded from being deemed deferrals of compensation under Treasury Regulation §
1.409A-1(b)(9)(v)(A), (B) and (C); such payments may be incurred or provided during the period from termination of employment until the last day of Employee’s second taxable year following the taxable year of Employee’s Termination,
provided that reimbursements must be paid no later than the Employee’s third taxable year following the year of Employee’s Termination (or any greater or lesser period applicable to medical expenses under Treasury Regulation §
1.409A-1(b)(9)(v)(B)). 

  

	 	(iii)	Payments shall be excluded under other applicable provisions of Treasury Regulation § 1.409A-1 – A-6 (including Treasury Regulation § 1.409A-1(b)(4) and
(10) – (12)). 

  

	 	(iv)	 Any such payments not covered under the foregoing rules shall be payable to the greatest extent permissible as a reimbursement to Employee or as an in-kind benefit
to Employee meeting the requirements of Treasury Regulation § 1.409A-3(i)(1)(iv). For this purpose, the amount of any such payment in any one of Employee’s taxable years shall not affect the eligible amount of a related 

  

 15 

	 	 
payment in any other of Employee’s taxable years (excluding medical expenses to the extent provided in Treasury Regulation §
1.409A-3(i)(1)((iv)(B)), and any payment in reimbursement of an eligible expense shall be made no later than the last day of Employee’s taxable year following the taxable year in which the expense was incurred. A payment subject to this clause
(iv) may not be subject to liquidation or exchange for another benefit. 

  

	 	(v)	Any payment not excluded from being a deferral of compensation and not otherwise covered by clauses (i) – (iv) above shall nevertheless be payable as a separate
payment under this Agreement. 

 3.5.4 Other Provisions. 
 (a) Separation from Service. References to “termination of employment” hereunder and references to “Separation from
Service” mean Employee’s “separation from service” from the Company as such term is defined in Treasury Regulation § 1.409A-1(h) and other applicable guidance under Section 409A. 
 (b) No Influence on Year of Payment. In the case of any payment under the Agreement payable during a specified period of time
following a termination of employment or other event, if such permitted payment period begins in one calendar year and ends in a subsequent calendar year, Employee shall have no right to elect in which year the payment will be made, and the
Company’s determination of when to make the payment shall not be influenced in any way by Employee. 
 (c) Good
Reason. The definition of “Good Reason” in Section 4(f)(iv) is intended to meet requirements so that a termination for Good Reason will constitute an “involuntary separation” within the meaning of Treasury Regulation
§ 1.409A-1(n)(2)(i), and shall be so construed and interpreted. 
 (d) Non-transferability. No right to any
payment or benefit under this Agreement shall be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by Employee’s creditors or of any of Employee’s beneficiaries. 
 (e) No Acceleration. The timing of payments and benefits under the Agreement may not be accelerated to occur before the time
specified for payment hereunder, except to the extent permitted under Treasury Regulation § 1.409A-3(j)(4) or as otherwise permitted under Code Section 409A without Employee incurring a tax penalty. 
 ARTICLE IV 
 OTHER PAYMENTS AND
BENEFITS 
 4.1 Annual Bonus Payable Following Certain Terminations. In the event of a termination of Employee’s
employment due to death, disability, or in circumstances triggering 

  

 16 

 
Severance Payments under Section 3.4, Employee (or his beneficiaries following his death) shall be entitled to receive a pro rata portion of his Annual
Bonus for the fiscal year in progress at the date of termination of employment, based on the actual performance achieved for the full fiscal year determined in good faith by the Committee and consistent with its determinations for senior executives
who remain in service to the Company at the time of such determination. The pro rata portion shall be equal to the number of calendar days in the fiscal year through the applicable termination date divided by 365 (or 366 in a leap year). Payment of
any Annual Bonus so earned shall be made by March 15 of the year following the year of Employee’s termination. For any partial Contract Year which ends with the non-renewal of this Agreement, the Annual Bonus for the fiscal year in
progress at the end of such Contract Year shall be payable on a pro rata basis in the same way, treating such non-renewal as a qualifying termination for purposes of this Section 4.2. 
 4.2 Commitment Regarding Continued Participation in Welfare Plans. Provided that Employee has reached the age of 55 and been employed by
the Company more than five years, in the event of a termination of Employee’s employment due to death, disability, or in circumstances triggering Severance Payments under Section 3.4, the Company will in good faith use its best efforts to
permit Employee (or his dependents, in the case of Employee’s death) to continue to participate in the Company’s employee and dependent group medical and dental benefit programs, with Employee (or his dependents) upon the same terms and
conditions as if Employee continued to remain an active employee of the Company, for a period until both Employee and his spouse at the time of termination become eligible for Medicare coverage 
 ARTICLE V 
 MISCELLANEOUS

 5.1 Dispute Resolution Procedure. 
 5.1.1 Arbitration. The parties agree that any dispute arising out of or related to the employment relationship between them,
including the termination of that relationship, shall be resolved by binding arbitration, except where the law specifically forbids the use of arbitration as a final and binding remedy. 
 5.1.2 Statement of Grievance. The party claiming to be aggrieved shall furnish to the other party a written statement of the
grievance identifying any witnesses or documents then reasonably known to that party that support the grievance and the relief requested or proposed. 
 5.1.3 Mediation. If within thirty (30) days after the written statement of grievance the other party does not agree to furnish the relief requested or proposed, or otherwise does not satisfy the
demand of the party claiming to be aggrieved, the other party shall provide a statement of reasons, identifying witnesses or documents then reasonably known to that party in support of its position. Either party may then submit the dispute to
nonbinding mediation before a mediator to be jointly selected by the parties within fourteen (14) business days thereafter. The Company will pay the cost of the mediation. Such mediation shall be completed within sixty (60) days of the
submission of the dispute to a mediator. 
  

 17 

 5.1.4 Arbitration Proceeding. If the mediation does not produce a
resolution of the dispute, or if the parties fail to cooperate with such mediation, the Company and Employee agree that final and binding arbitration will be the exclusive remedy for any employment related dispute between them which is based on a
legally protected right, including without limitation, any common law claims such as breach of contract or commission of a tort, and any claims arising under the federal, state or local civil rights laws, Title VII of the Civil Rights Act of 1964,
the Civil Rights Act of 1991, the Americans With Disabilities Act, the Age Discrimination in Employment Act, the Family and Medical Leave Act, 42 U.S.C. § 1981, the Worker Adjustment or Retraining Notification Act, the California Fair
Employment & Housing Act, the California Family Rights Act, California’s Pregnancy Disability Leave law, and all other federal, state or local employment related statutes, ordinances and common law. Employee acknowledges that
Employee waives the right to litigate the foregoing employment related legal claims in a judicial forum before a judge or jury. 
 This
arbitration provision does not apply to any Employee claim for workers’ compensation benefits (with the exception of claims pursuant to California Labor Code section 132a), claims under the National Labor Relations Act, unemployment
compensation benefits or denial of benefits pursuant to the Employee Retirement Income Security Act (ERISA), or to the filing of Employee charges with government agencies. 
 5.1.5 Claim Initiation/Time Limits. A party must notify the other party in writing at the addresses indicated below of a
request to arbitrate a dispute within the same statute of limitations applicable to the legal claim asserted. The written request for arbitration must specify: (i) the factual basis on which the claim is made; (ii) the statutory provision
or legal theory under which the claim is made; and (iii) the nature and extent of any relief or remedy sought. 
 5.1.6
Procedures. Arbitration will be before a single arbitrator in Los Angeles, California, unless the parties mutually agree to hold the arbitration in a different location. The arbitration will be administered in accordance with the
Employment Dispute Rules of the American Arbitration Association (“AAA”), a copy of which is available upon request to the Company. If the parties cannot agree on an arbitrator, then the AAA rules will govern selection. The
Company will pay the fees of the AAA and the arbitrator. However, in the event Employee requests an arbitration, Employee will be required to contribute an amount equal to the fee required to file a complaint of the same type in the state court
which is geographically closest to the site of the arbitration. Employee and the Company may be represented by counsel of their choosing at their own expense. However, the arbitrator may award attorneys’ fees and costs to a prevailing party if
authorized by the statute or common law under which the claim is made. 
 5.1.7 Responsibilities of Arbitrator.
The arbitrator will act as the impartial decision maker of any claims that come within the scope of this arbitration provision. The arbitrator will have the powers and authorities provided by the Employment Dispute Resolution Rules of the
AAA and the statute or common law under which the claim is made. For example, the arbitrator will have the power and authority to include all remedies in the award available under the statute or common law under which the claim is made
including, without limitation, the issuance of an injunction. The arbitrator will apply the elements and burdens of proof, mitigation duty, interim earnings offsets and other legal rules or requirements under the statutory 

  

 18 

 
provision or common law under which such claim is made. The arbitrator will permit reasonable pre-hearing discovery. The arbitrator will have the power to
issue subpoenas. The arbitrator will have the authority to issue a summary disposition if there are no material factual issues in dispute requiring a hearing and the Company or Employee is entitled to an award in its or his favor. The arbitrator
will issue a signed written opinion and award that will include findings of fact and conclusions of law. If any monetary award is made, the arbitrator will specify the elements and factual basis for calculating the amount. The arbitrator’s
award will be enforceable, and a judgment may be entered thereon, in a federal or state court of competent jurisdiction. The decision of the arbitrator will be final and binding; provided, however, limited judicial review may be
obtained in a court of competent jurisdiction: (i) on any ground referred to in the Federal Arbitration Act, 9 U.S.C. § 1 et seq.; (ii) where the findings of fact are not supported by substantial evidence; or (iii) where the
arbitrator’s conclusions of law are erroneous. 
 5.2 Notices. Whenever notice is to be served hereunder, service shall be
made personally, by facsimile transmission, by overnight courier or by registered or certified mail, return receipt requested. All postage and other delivery charges shall be prepaid by the party sending the notice. Notice shall be effective only
upon receipt by the party being served, except notice shall be deemed received seventy-two (72) hours after posting by the United States Post Office, by method described above. Confirmation of receipt of any facsimile sent must be received in
order to presume that the transmission was received. All notices shall be sent to the addresses described below unless changed by written notice pursuant to the terms of this Section: 
 To the Company: 
 IPC The Hospitalist Company 
 4605 Lankershim Boulevard, Suite 617 
 North Hollywood, CA 91602 
 Attention: President 
 Facsimile: (818) 766-3999 
 To Employee: 
 1331 Cordell Place 
 Los Angeles, California 90069 
 5.3 Determinations by the Board or the Committee. Except as specifically provided herein to the contrary, with respect to any
determinations to be made by the board or directors of the Company (the “Board”) or the Committee in connection with Employee’s employment (or termination of employment) hereunder, Employee shall not have the right to
participate in the deliberations of such determination and shall abstain from any vote of the Board or the Committee with respect thereto. 
 5.4 Section 409A. It is intended that any income or payments to Employee provided pursuant to this Agreement (any such income or payments being referred to as “Payments”) will not be subject to the tax
penalty and interest under Section 409A (a “Section 409A Tax”). The provisions of the Agreement will be interpreted and construed in favor of complying with any applicable requirements of Section 409A necessary in order to
avoid the imposition of a Section 409A Tax. To the extent permitted under Section 409A, the Company and Employee agree to amend (including retroactively) the Agreement in order to comply with Section 409A, including 

  

 19 

 
amending to facilitate the ability of Employee to avoid the imposition of, or reduce the amount of, any Section 409A Tax. The Company and Employee shall
reasonably cooperate to provide full effect to this provision and the consent to any amendment described in the preceding sentence shall not be unreasonably withheld by either party. The parties agree that neither party has (a) an obligation to
bring any potential Section 409A Tax to the attention of the other party or (b) any liability for any Section 409A Tax or any other reporting or withholding obligation to the other party. 
 5.5 No Mitigation; No Set-Off. The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform
its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action (provided Employee enters into and does not rescind the general release provided in Section 3.4.3 and
subject to the proviso in the succeeding sentence) which the Company may have against Employee or others, other than any action the Company may need to take pursuant to Section 304 of the Sarbanes-Oxley Act of 2002. In no event shall Employee
be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Employee under any of the provisions of this Agreement and such amounts shall not be reduced whether or not Employee obtains other
employment; provided that the Company’s obligation under Section 3.4.3 and Section 4.2 with respect to medical and dental benefits shall be limited to the extent that Employee obtains any such medical or dental
benefits from another employer during the benefit continuation period provided thereunder, in which case the Company may reduce the coverage of any medical and dental benefits it is required to provide Employee under Section 3.4.3 as
long as the aggregate coverages of the combined benefits provided by the Company and such other employer are comparable to the benefits to be provided to Employee by the Company under Section 3.4.3. The provisions of this
Section 4.5 shall survive the expiration or earlier termination of this Agreement for any reason. 
 5.6
Assignability. The Company may assign its interest in this Agreement to any subsidiary or affiliate of the Company or in connection with a merger or sale of all or substantially all of the assets of the Company and the provisions of
this Agreement shall inure to the benefit of the successors and assigns of the Company. Employee may not assign or transfer this Agreement, it being deemed personal to Employee only, provided, however, upon Employee’s death,
Employee’s heirs, executors and/or administrators may seek collection of any sums that may have been due Employee as of Employee’s death. Subject to the above, this Agreement shall be binding upon and shall inure to the benefit of the
parties hereto and their respective heirs, legal representatives, successors and assigns. 
 5.7 Deductions. The Company shall
deduct from any payment to Employee hereunder such social security insurance, federal, state and other taxes, state disability insurance and other withholdings as may be required by law. 
 5.8 Severability. If any term or provision of this Agreement, or the application thereof to any person or circumstance, shall to any extent
be found to be invalid, void or unenforceable, the remaining provisions of this Agreement and any application thereof shall, nevertheless, continue in full force and effect without being impaired or invalidated in any way. 
  

 20 

 5.9 Waiver. No waiver of any term, provision or condition of this Agreement, whether by
conduct or otherwise, in any one or more instances, shall be deemed to be or be construed as a further or continuing waiver of any such term, provision or condition or as a waiver of any other term, provision or condition of this Agreement.

 5.10 Headings. The headings herein used are for convenience purposes only and shall not be used to construe the meaning of
this Agreement in any respect. 
 5.11 Entire Agreement. This Agreement, together with the Exhibits and any extensions or
renewals hereof, constitutes the parties’ entire Agreement with respect to the subject matter hereof and supersedes all prior statements or agreements, both written and oral except for award agreements related to grants of equity-based
compensation to Employee. This Agreement may be amended only by a writing signed by the parties. 
 5.12 Governing Law. The
validity, interpretation and construction of this Agreement, and all other matters related to the Agreement, shall be interpreted and governed by the laws of the State of California. 
 5.13 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original instrument and
all of which together shall constitute the same instrument. 
 5.14 Acknowledgements. Employee and the Company each acknowledge
and represent to the other that each of them (a) has carefully read and understands this Agreement, (b) has had the opportunity to consult with legal counsel prior to executing this Agreement, (c) understands the legal effect and
binding nature of this general Agreement, and (d) is acting voluntarily (and not as a result of any threats or coercion) and with full knowledge of their actions in executing this Agreement, with the intent of being bound by this Agreement.

 5.15 Future Cooperation. Following the end of the Term, as the Company in its sole discretion deems necessary to effectuate
a smooth transition, or in connection with any and all claims, disputes, negotiations, investigation, lawsuits or administrative proceedings involving the Company, Employee agrees to make himself available, upon reasonable notice from the Company,
and without the necessity of subpoena, to provide information or documents, provide declarations or statements to the Company, meet with attorneys or other representatives of the Company, prepare for and give depositions or testimony, render
consulting services and/or otherwise cooperate in the investigation, defense or prosecution of any or all such matters. Separate from any compensation provided pursuant to any other provision of this Agreement, the Company agrees that if the
provision of such services is more than minimal in nature, it shall promptly compensate Employee at the rate of $500 per hour, and will reimburse Employee for reasonable out of pocket expenses. Any reimbursement payable pursuant to this
Section 4.15 shall be paid as soon as administratively feasible upon request, but in all cases, such reimbursement shall be paid no later than March 15 of the year following the year in which the expense is incurred. This Section 4.15
shall survive the termination of this Agreement. In order to ensure that Employee’s termination of employment pursuant to Article III constitutes a Separation from Service, the services to be performed by Employee pursuant to this
Section 4.15 shall not be more than insignificant services for the Company as provided under Treasury Regulation Section 1.409A-1(h)(ii). 
  

 21 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement, as of the date first above
written, by their duly authorized representatives. 
  

									
	COMPANY	 		 	IPC THE HOSPITALIST COMPANY,
		 		 	a Delaware corporation
					
		 		 		 	By:	 	/s/ Adam D. Singer, M.D.
		 		 		 	Title: 	 	Chief Executive Officer
			
	EMPLOYEE	 		 	/s/ Richard Russell
		 		 		 	RICHARD RUSSELL

  

 22 

 EXHIBIT A 
 GENERAL RELEASE 
 For a valuable consideration, the receipt and adequacy of which are hereby acknowledged, the
undersigned does hereby release and forever discharge the “Releasees” hereunder, consisting of IPC The Hospitalist Company, and each of its subsidiaries, associates, affiliates, successors, heirs, assigns, agents, managers,
directors, officers, employees, representatives, lawyers, insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in
equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, costs, attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed or contingent to the extent permissible under
applicable law (hereinafter called “Claims”), which the undersigned now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date
hereof. The Claims released herein include, without limiting the generality of the foregoing, any Claims in any way arising out of, based upon, or related to the employment or termination of employment of the undersigned by the Releasees, or any of
them; any alleged breach of any express or implied contract of employment; any alleged torts or other alleged legal restrictions on Releasee’s right to terminate the employment of the undersigned; and any alleged violation of any federal, state
or local statute or ordinance including, without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination In Employment Act, the Americans With Disabilities Act, and the California Fair Employment and Housing Act. 
 THE UNDERSIGNED ACKNOWLEDGES THAT HE HAS BEEN ADVISED BY LEGAL COUNSEL AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS
FOLLOWS: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE
TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 
 THE UNDERSIGNED,
BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHTS HE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT. 
 IN ACCORDANCE WITH THE OLDER WORKERS BENEFIT PROTECTION ACT OF 1990, THE UNDERSIGNED IS HEREBY ADVISED AS FOLLOWS: 
 (A) HE
HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS RELEASE; 
 (B) HE HAS FORTY FIVE (45) DAYS TO CONSIDER THIS RELEASE BEFORE SIGNING IT;
AND 
  

 B-1 

 (C) HE HAS SEVEN (7) DAYS AFTER SIGNING THIS RELEASE TO REVOKE THIS RELEASE, AND THIS RELEASE WILL BECOME EFFECTIVE
UPON THE EXPIRATION OF THAT REVOCATION PERIOD. 
 The undersigned further understands and agrees that neither the payment of any sum of money nor the
execution of this Release shall constitute or be construed as an admission of any liability whatsoever by the Releasees, or any of them, who have consistently taken the position that they have no liability whatsoever to the undersigned. 

IN WITNESS WHEREOF, the undersigned has executed this Release this              day of
                     ,              . 
  

 B-2Nonqualified Employee Stock Purchase Plan

 Exhibit 10.15 
 IPC THE HOSPITALIST COMPANY, INC. 
 NONQUALIFIED EMPLOYEE STOCK PURCHASE PLAN 
 Effective as of January 10, 2008 
 SECTION 1 
 Purpose 
 The purpose of IPC The Hospitalist Company, Inc. Employee Stock Purchase Plan (the “Plan”) is to provide the employees of IPC The Hospitalist Company, Inc. (“the Company”), formerly known as
Inpatient Consultants Management, Inc. and its Subsidiaries and Affiliates with an opportunity to purchase shares of Stock through payroll deduction. The Plan is not intended to qualify as an “employee stock purchase plan” under
Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”). The Plan was approved by the Board of Directors on January 10, 2008, and also became effective on January 10, 2008 (the “Effective Date”).

 SECTION 2 
 Definitions 
 The following words have the following meanings unless a different meaning is plainly
required by the context. 
 2.1 “Affiliate” means any entity that is an affiliate of the Company, as determined by the Board, in
its sole discretion. 
 2.2 “Board” means the Board of Directors of the Company. 
 2.3 “Compensation” means an Employee’s salary, wages, commissions, overtime and bonuses from the Company and all Subsidiaries and
Affiliates, and shall exclude, without limitation, stock-based compensation, other equity and non-equity incentive compensation, perquisites, employee benefits, severance pay and any and all other forms of compensation. 
 2.4 “Continuous Status as an Employee” means the absence of any interruption or termination of service as an Employee. Continuous Status as an
Employee shall not be considered interrupted in the case of a leave of absence agreed to in writing by the Company or a Subsidiary or Affiliate, provided that such leave is for a period of not more than 90 days or re-employment upon the expiration
of such leave is guaranteed by contract or statute. 
 2.5 “Contributions” means all amounts credited to the account of a
Participant pursuant to the Plan. 
 2.6 “Custodian” means the custodian for the Plan appointed by the Plan Administrator.

 2.7 “Employee” means any person, including an officer, who is an employee of the Company or a
Subsidiary or Affiliate and whose customary employment is at least twenty (20) hours per week. 
 2.8 “Exercise Date” means
the last business day of each Offering Period of the Plan. 
 2.9 “Fair Market Value” means, as of any applicable date, the closing
sales price for one share of Stock on such date as reported on the Nasdaq National Market or, if the foregoing does not apply, on such other market system or stock exchange on which the Stock is then listed or admitted to trading, or on the last
previous day on which a sale was reported if no sale of the Stock was reported on such date. 
 2.10 “Offering Date” means the
first business day of each Offering Period of the Plan. 
 2.11 “Offering Period” means a period of six (6) months commencing
on the January 1 or July 1 of each year, except as otherwise set forth in the Plan or determined by the Plan Administrator. 
 2.12
“Participant” means an Employee who has elected to participate in the Plan for an Offering Period by completing a subscription agreement in accordance with Section 5.1. 
 2.13 “Plan Administrator” means the Board or the Committee appointed by the Board to administer the Plan, as described in Section 12.

 2.14 “Stock” means the Common Stock, par value $0.001, of the Company. 
 2.15 “Subsidiary” means an entity that is a “subsidiary corporation” within the meaning of Sections 423(a)(2) and 424(f) of the Code.

 SECTION 3 
 Eligibility 
 3.1 General Rule. Any person who is an Employee on the Offering Date of a given Offering Period
shall be eligible to participate in such Offering Period under the Plan, subject to the requirements of Section 5.1; provided, however, that an Employee working in a country whose laws make participation in the Plan impractical and/or illegal
(as determined by the Plan Administrator in its sole discretion) shall not be eligible to participate in the Plan. 
  

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 SECTION 4 
 Offering Period 
 4.1 The Plan shall generally be administered with respect to consecutive
Offering Periods with a new Offering Period commencing on or about each January 1 or July 1, or at such other time or times as may be determined by the Plan Administrator. The first Offering Period will be a six (6) month period
selected by the Plan Administrator in its sole discretion commencing on or after July 1, 2008. 
 The Plan Administrator shall have the
power to change the duration and/or frequency of an Offering Period with respect to future offerings without stockholder approval, if such change is announced at least fifteen (15) days prior to the scheduled beginning of the first Offering
Period to be affected. 
 SECTION 5 
 Participation 
 5.1 An Employee shall become a Participant in the Plan by completing a
subscription agreement provided by the Plan Administrator, which authorizes payroll deductions of an amount equal to a whole percentage, between one percent (1%) and fifteen percent (15%), as elected by such Employee, of such Employee’s
Compensation. Such amount shall be withheld as a payroll deduction and paid as such Employee’s Contribution to the Plan. The subscription agreement must be submitted to the payroll office at least fifteen (15) days, or such other period as
determined by the Plan Administrator, prior to the applicable Offering Date. The Employee shall remain enrolled in each subsequent Offering Period of the Plan at the designated payroll deduction, unless the Employee withdraws from the Plan as
provided in Section 10 or changes the rate of his or her payroll deduction as provided in Section 6.2. 
 5.2 With respect to each
Offering Period to which the subscription agreement is applicable, payroll deductions begin on the first payroll date following the applicable Offering Date and end on the last payroll paid prior to the Exercise Date of the Offering Period, unless
sooner terminated by the Participant as provided in Section 10. 
 SECTION 6 
 Method of Payment of Contributions 
 6.1 Payroll deductions shall be made on each payday during the Offering Period, on an after-tax basis, in an amount between one percent (1%) and fifteen percent (15%) (in whole number increments), as elected by the Participant, of
his or her Compensation otherwise payable on each such payday. All payroll deductions made by a Participant shall be credited as Contributions to his or her account under the Plan. Each Participant’s account under the Plan is unfunded and is
maintained solely for recordkeeping purposes. A Participant may not make any payments into the account other than Contributions made through payroll deductions. 
  

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 6.2 A Participant may discontinue his or her participation in the Plan, as provided in Section 10,
or may change the rate of his or her payroll deduction prior to or during an Offering Period by completing and filing with the Plan Administrator a new authorization for payroll deduction, provided that the Plan Administrator may, in its sole
discretion, impose reasonable restrictions on the ability of Participants to change the rate of payroll deductions. The change in rate shall be effective no earlier than fifteen (15) days following the Plan Administrator’s receipt of the
new authorization. 
 6.3 Notwithstanding, the foregoing, to the extent necessary to comply with applicable law, a Participant’s payroll
deductions may be automatically decreased to zero percent (0%) at any time during the Offering Period. 
 6.4 No interest shall accrue on the
Contributions of a Participant in the Plan. 
 6.5 All Contributions received or held by the Plan Administrator under the Plan may be used by
the Company for any corporate purpose, and neither the Plan Administrator nor the Company shall be obligated to segregate such Contributions. 
 SECTION 7 
 Grant of Option 
 7.1 Each Participant in the Plan in an Offering Period shall be granted, on the Offering Date during such Offering Period, an option to purchase shares
of Stock on the Exercise Date during such Offering Period with the Contributions accumulated prior to such Exercise Date. 
 7.2 The number
of full shares of Stock that may be purchased on an Exercise Date shall be determined by dividing such Participant’s total Contributions accumulated prior to such Exercise Date and credited to the Participant’s account as of the Exercise
Date by the Purchase Price (as defined in Section 7.3 below). Notwithstanding the foregoing, such purchase shall be subject to the limitations set forth in Section 11 hereof. 
 7.3 With respect to a specific Offering Period, the Purchase Price for each share of Stock purchased under the Plan shall be the lesser of
(i) eighty-five percent (85%) of the Fair Market Value of a share of Stock at the Offering Date and (ii) eighty-five percent (85%) of the Fair Market Value of a share of Stock at the Exercise Date. 
 SECTION 8 
 Exercise of
Option 
 8.1 Unless the Participant withdraws from the Plan as provided in Section 10, the Participant’s option for the
purchase of Stock shall be exercised automatically on the Exercise Date of the Offering Period at the Purchase Price with the accumulated Contributions credited to his or her account. 
  

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 8.2 The shares of Stock purchased upon exercise of an option hereunder shall be deemed to be transferred
to the Participant on the Exercise Date. 
 8.3 The maximum number of shares of Stock shall be determined based on the Purchase Price and the
accumulated Contributions credited to the Participant’s account in accordance with Section 7. No fractional shares are permitted to be purchased under the Plan. Any Contributions for an Offering Period credited to a Participant’s
account which are not sufficient to purchase a full share of Stock on the Exercise Date of such Offering Period shall be retained in the Participant’s account under the Plan and applied to the subsequent Offering Period, subject to earlier
withdrawal by the Participant as provided in Section 10. 
 8.4 During a Participant’s lifetime, the option to purchase shares of
Stock hereunder shall be exercisable only by the Participant. 
 SECTION 9 
 Custodian; Delivery of Stock 
 9.1 All shares of Stock purchased on behalf of a Participant as of an Exercise Date of the Offering Period shall be credited to the Participant’s account maintained by the Custodian. Dividends payable with respect to shares of Stock
credited to a Participant’s account shall be paid directly to the Participant at his or her most recent address of record. 
 9.2 The
Plan Administrator will direct the Custodian to distribute to the Participant any whole shares of Stock that have been credited to the Participant’s account for at least a six (6) month period after the Exercise Date on which such shares
were purchased (the “Holding Period”), and cash equal to the Fair Market Value of any fractional share then credited to such Participant’s account, as soon as practicable following the earlier of (i) the Plan Administrator’s
receipt of the Participant’s written request for such distribution or (ii) the date the Participant ceases to participate in the Plan in accordance with Section 10.2 of the Plan. Shares of Stock that are not distributed following the
occurrence of an event described in subsection (i) or (ii) of this Section 9.2 because such shares have not been credited to the Participant’s account for the Holding Period shall be distributed as soon as practicable following
the date that such shares have been credited to the Participant’s account for the Holding Period. Notwithstanding the foregoing, in the event the Participant ceases to participate in the Plan due to the death of the Participant, shares of Stock
credited to such Participant’s account, and cash equal to the Fair Market Value of any fractional share then credited, shall be distributed to the person or persons entitled thereto under Section 13 (without regard to the Holding Period
requirement) as soon as practicable following the Plan Administrator’s receipt of proof of the Participant’s death. 
  

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 SECTION 10 
 Voluntary Withdrawal; Termination of Employment 
 10.1 A Participant may withdraw all, but not
less than all, of the Contributions credited to his or her account and not yet used to exercise his or her option under the Plan at any time prior to an Exercise Date by giving written notice to the Plan Administrator of withdrawal from the Offering
Period on a form provided for such purpose. If the Participant withdraws from an Offering Period, all of the Participant’s Contributions credited to his or her account shall be paid to the Participant as promptly as practicable after receipt of
the notice of withdrawal, and his or her option for such Offering Period shall be automatically canceled and no further payroll deductions for the purchase of Stock shall be made for such Participant during such Offering Period and subsequent
Offering Periods, except pursuant to a new subscription agreement filed in accordance with Section 5. 
 10.2 Upon termination of the
Participant’s Continuous Status as an Employee prior to an Exercise Date of an Offering Period or during an Offering Period in which the Employee is a Participant for any reason, including, without limitation, retirement or death, he or she
shall be deemed to have elected to withdraw from the Plan, and all Contributions credited to his or her account shall be returned to him or her, in cash, as promptly as practicable after such termination or, in the case of death, to the person or
persons entitled thereto under Section 13, and the Participant’s option to purchase Stock shall be automatically canceled. 
 10.3
A Participant’s withdrawal from an Offering Period shall not have any effect upon his or her eligibility to participate in a succeeding Offering Period or in any similar plan that may hereafter be adopted by the Company, in accordance with the
applicable terms and conditions of such plan. 
 SECTION 11 
 Stock 
 11.1 The total number of shares of Stock made available for sale
under the Plan is 1,000,000 and is subject to adjustment, at the sole discretion of the Plan Administrator, in the event of changes in the capitalization of the Company as described in Section 15. 
 11.2 If the total number of shares of Stock subject to options granted pursuant to Section 7 exceeds the number of shares of Stock available under
the Plan, the Plan Administrator shall make a pro rata allocation of the shares of Stock remaining available for option grant in a practical and equitable manner. In such event, the Plan Administrator shall give written notice to each affected
Participant stating the reduction of the number of shares of Stock due to the adjustment and shall return to each affected Participant any excess Contributions credited to such Participant’s account as soon as practicable after the affected
Exercise Date of such Offering Period. 
 11.3 A Participant shall have no interest or voting rights in shares of Stock covered by his or her
option until such option has been exercised. 
  

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 11.4 Shares of Stock to be delivered to a Participant under the Plan shall be registered in the name of
the Participant. 
 11.5 Shares of Stock purchased under the Plan may, at the sole discretion of the Plan Administrator, be subject to
restrictions on subsequent resale. 
 SECTION 12 
 Administration 
 12.1 The Plan shall be administered by the Compensation Committee of the
Board unless otherwise determined by the Board (the “Plan Administrator”). 
 12.2 The Plan Administrator shall have full power to
adopt, amend and rescind any rules as deemed appropriate and consistent for the administration of the Plan. The Plan Administrator shall construe and interpret the Plan in its sole and absolute discretion, and make all other determinations necessary
or advisable for the administration of the Plan. The Plan Administrator may delegate to any agents such duties and powers as it deems appropriate, by an instrument in writing that specifies which duties are so delegated and to whom each such duty is
so delegated. 
 12.3 The administration, interpretation or application of the Plan by the Plan Administrator and all determinations by the
Plan Administrator with respect to the Plan shall be final, conclusive and binding upon all Employees and Participants and all other persons interested or claiming an interest under the Plan. 
 SECTION 13 
 Designation of Beneficiary 
 13.1 A Participant may file a written designation of a beneficiary who is to receive Stock and/or cash, if any, from the Participant’s account under
the Plan in the event of such Participant’s death at a time when cash or Stock are held for his or her account. Any such designation shall not be effective until filed with the Plan Administrator. Any such designation of a beneficiary may be
changed by the Participant at any time by written notice filed with the Plan Administrator. 
 13.2 In the event of the death of a
Participant and in the absence of a valid designation of a beneficiary who is living at the time of such Participant’s death, the Plan Administrator shall deliver such Stock and/or cash to the executor or administrator of the estate of the
Participant, or if no such executor or administrator has been appointed (to the knowledge of the Plan Administrator), the Plan Administrator, in its sole discretion, may deliver such Stock and/or cash to the spouse or to any one or more dependents
or relatives of the Participant. If no spouse, dependent or relative is known to the Plan Administrator, the Plan Administrator, in its sole discretion, may deliver such cash and/or Stock to such other person as the Plan Administrator may reasonably
designate. 
  

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 SECTION 14 
 Transferability 
 14.1 Neither Contributions credited to a Participant’s account nor any
rights with regard to an option to purchase shares of Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than as provided in Section 13) by the Participant. 
 14.2 Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Plan Administrator may treat such act
as an election to withdraw in accordance with Section 10. 
 SECTION 15 
 Adjustments Upon Changes in Capitalization; Corporate Transactions 
 15.1 In the event that a dividend shall be declared upon the Stock payable in shares of Stock, the number of shares of Stock then subject to any option
and the number of shares of Stock which may be purchased upon the exercise of options granted under the Plan but not yet covered by an option shall be adjusted, at the sole discretion of the Plan Administrator, by adding to each share the number of
shares which would be distributed thereon if such shares had been outstanding on the date fixed for determining the stockholders entitled to receive such Stock dividend. In the event that the outstanding shares of Stock shall be changed into or
exchanged for a different number or kind of share of stock or other securities of the Company or of another corporation, whether through reorganization, recapitalization, stock split-up, combination of shares, sale of assets, merger or consolidation
in which the Company is the surviving corporation, then, there shall be substituted for each share of Stock then subject to any option and for each share of Stock which may be purchased upon the exercise of options granted under the Plan but not yet
covered by an option, the number and kind of shares of stock or other securities into which each outstanding share of Stock shall be so changed or for which each such share shall be exchanged, as determined by the Plan Administrator, in its sole
discretion. 
 15.2 In the event that there shall be any change, other than as specified in the first paragraph of Section 15.1 hereof,
in the number or kind of outstanding shares of Stock, or of any stock or other securities into which the Common Stock shall have been changed, or for which it shall have been exchanged, then, if the Plan Administrator shall, in it sole discretion,
determine that such change equitably requires an adjustment in the number or kind of shares then subject to any option and the number or kind of shares available for issuance in accordance with the provisions of the Plan but not yet covered by an
option, such adjustment shall be made by the Plan Administrator and shall be effective and binding for all purposes of the Plan and of each option. 
  

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 15.3 In the case of any substitution or adjustment in accordance with the provisions of this
Section 15, the option price in each option for all Stock covered thereby prior to such substitution or adjustment shall be the option price for all shares of stock or other securities which shall have been substituted for such Stock or to
which such Stock shall have been adjusted in accordance with the provisions of this Section 15. 
 15.4 No adjustment or substitution
provided for in this Section 15 shall require the Company to issue a fractional share under any option. 
 15.5 In the event of
dissolution or liquidation of the Company, or a merger, reorganization or consolidation in which the Company is not the surviving corporation, the Board, in its sole discretion, may accelerate the exercise of each option and/or terminate the same.

 SECTION 16 
 Amendment or Termination 
 16.1 The Board may at any time and for any reason terminate or amend the Plan in whole or
in part. Except as provided in Section 15, no such termination may affect options to purchase shares previously granted. Except as provided in Section 15, no amendment may make any change in any option theretofore granted which adversely
affects the rights of any Participant. In addition, to the extent necessary, but only to such extent, to comply with applicable law or the rules of any exchange on which the Stock is listed, the Company shall obtain stockholder approval of an
amendment in such a manner and to such a degree as so required. 
 SECTION 17 
 Notices 
 17.1 All notices or
other communications by a Participant to the Plan Administrator under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Plan Administrator at the location, or by the person, designated
by the Plan Administrator for the receipt thereof. 
 SECTION 18 
 Conditions Upon Issuance of Shares 
 18.1 Shares of Stock shall not be
issued with respect to an option to purchase, unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation,
the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed. 
  

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 18.2 As a condition to the exercise of an option, the Plan Administrator may require the Participant
exercising such option to represent and warrant at the time of such exercise that the shares of Stock are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the
Company, such a representation is required by any of the aforementioned applicable provisions of law. 
 SECTION 19 

Term of Plan 
 19.1 The Plan
shall continue in effect for a term of ten (10) years from the Effective Date unless sooner terminated under Section 16. 
  

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