Document:

Unassociated Document

    Exhibit
      10.1

    EMPLOYMENT
      AGREEMENT

     

    This
      Employment Agreement,
      by and
      between El Capitan Precious Metals, Inc., a Nevada corporation (the
“Company”),
      and
      R. William Wilson (the “Executive”)
      is
      entered into on the 4th day of May, 2007 (the “Effective
      Date”).

     

    INTRODUCTION

     

    A.  The
      Board
      of Directors of the Company (the “Board”)
      appointed Executive, and Executive accepted such appointment, as the Company’s
      Chief Financial Officer effective as of May 7, 2007.

     

    B.  The
      Company and Executive desire to establish the terms and conditions of
      Executive’s employment with the Company as set forth in this
      Agreement.

     

    AGREEMENT

     

    Now,
      Therefore,
      in
      consideration of the foregoing, and for other good and valuable consideration
      the receipt and sufficiency of which is hereby acknowledged, the Company and
      Executive, each intending to be legally bound, hereby agree as
      follows:

     

    1. Employment.
      Subject
      to all of the terms and conditions of this Agreement, the Company hereby agrees
      to employ Executive, and Executive hereby accepts such employment and agrees
      to
      serve the Company to the best of his ability. Executive shall report to and
      take
      direction from the Board. 

     

    2. Term.
      The
      term of Executive’s employment hereunder, unless sooner terminated in accordance
      with the provisions of Section 7, shall be for a period of two (2) years (the
      “Term”)
      commencing May 7, 2007; provided, however, that the Term shall be extended
      automatically for additional periods of one (1) year unless one party shall
      provide notice to the other in writing at least thirty (30) days before the
      initial expiration of the Term or an anniversary date thereof that this
      Agreement shall no longer be so extended, and all such extension periods shall
      be included in the Term.

     

    3. Duties.
      The
      Executive shall serve as the Company’s Chief Financial Officer and shall
      perform, subject to the direction of the Board, duties as may be from time
      to
      time directed by the Board. The Executive shall devote substantially all of
      his
      business time, attention and energies to the business and affairs of the Company
      and shall use his best efforts to advance the best interests of the Company
      and
      shall not during the Term be actively engaged in any other business activity,
      whether or not such business activity is pursued for gain, profit or other
      pecuniary advantage, that will interfere with the performance by the Executive
      of his duties hereunder or the Executive’s availability to perform such duties
      or that will adversely affect, or negatively reflect upon, the Company.

     

    4. Compensation.

     

    (a) Base
      Salary.
      In
      consideration for Executive’s services under this Agreement, the Company hereby
      agrees to pay Executive the following base salary during the Term (the
“Base
      Salary”):

     

    (i) From
      May
      7, 2007 through the remainder of the Term, $10,000 plus 7,000 shares of Common
      Stock per month of continued service, issuable on the first day of the month
      immediately following such month of service (the “Monthly
      Base Salary”);
      provided that, the Aggregate Value (as defined below) of the Monthly Base Salary
      for any month of service during the Term cannot exceed $38,000. “Aggregate
      Value”
for
      purposes of this Section 4(a)(ii) shall mean $10,000 plus the average of the
      closing prices of the Common Stock (as identified by the OTC Bulletin Board
      or
      applicable exchange on which the Common Stock is quoted, or in the absence
      of
      such quotation or listing, as determined by the Board in its reasonable
      discretion) for the trading days during such month of service. 

     

    
      
        

        

        Employment
          Agreement between El Capitan Precious Metals, Inc. and R. William
          Wilson

         

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Transaction
      Bonus.
      In the
      event the Company enters into a transaction whereby it sells the property
      referred to as the El Capitan property (the “El
      Capitan Property”)
      during
      the Term (including pursuant to a merger, consolidation, sale of all or
      substantially all of the assets of the Company or other similar transaction
      constituting a Change of Control (as defined in Section 6(c) hereto)), Executive
      shall be entitled to a bonus (the “Transaction
      Bonus”)
      equal
      to 0.3% of the Total Transaction Value; provided that, the Company’s
      consummation of a merger or other consolidation with Gold and Minerals Co.,
      Inc.
      shall not constitute a transaction whereby the Transaction Bonus shall apply.
      For purposes of this Agreement, “Total
      Transaction Value”
shall
      mean (i) in the event of the sale of the El Capitan Property as an individual
      asset (or together with other assets not constituting all or substantially
      all
      of the assets of the Company), the aggregate value of consideration received
      by
      the Company in consideration of the El Capitan Property, or (ii) in the event
      of
      a merger, consolidation, sale of all or substantially all of the assets of
      the
      Company, the aggregate value of consideration received by the Company and its
      shareholders in the transaction, in either case including cash, stock, financial
      instruments or other consideration received by the Company and its shareholders
      in the transaction. Notwithstanding the foregoing, in the event the
      consideration to the Company and/or its shareholders is paid over time,
      Executive shall be entitled to the payment of the Transaction Bonus as such
      consideration is received by the Company and/or its shareholders.  

     

    (c) Benefits.
      During
      the Term, Executive shall be entitled to the employee benefits as provided
      by
      the Company to its management team. The Company reserves the right, in its
      sole
      discretion, to alter the terms of such benefits at any time and from time to
      time.

     

    (d) Reimbursement.
      The
      Company shall reimburse Executive for all reasonable out-of-pocket business
      expenses incurred by Executive (“Expenses”)
      on the
      Company’s behalf during the Term, including, without limitation, Expenses
      relating to computer, office and cellular phone and office equipment.
      Notwithstanding the foregoing, Executive must properly account to the Company
      all such expenses in accordance with the rules and regulations of the Internal
      Revenue Service under the Internal Revenue Code of 1986, as amended, and in
      accordance with any standard policies of the Company relating to reimbursement
      of business expenses as such policies exist or may be implemented in the
      future.

     

    (e) Stock
      Options.
      On May
      7, 2007, the date Executive commences employment with the Company, the Company
      shall grant Executive a stock option to purchase 1,000,000 shares of Common
      Stock at an exercise price equal to the closing price of the Common Stock on
      May
      7, 2007, the per share fair market value of the Common Stock on the date of
      grant (the “Option”).
      The
      Option shall vest in five equal amounts of 200,000 shares each upon the initial
      occurrence of each of the following events:

     

    
      
        

        

        Employment
          Agreement between El Capitan Precious Metals, Inc. and R. William
          Wilson

         

      

    

    
      
        2

      

      
        
        

        
          

        

      

      
        
        

      

    

     

                        (i)  the
      earlier to occur of (A) a merger of the Company with Gold and Minerals, Co.,
      Inc. or (B) such time that the average of the closing price of the Company’s
      common stock over 30 consecutive trading days is at or above $0.75 per share;
      

     

                        (ii)  the
      earlier to occur of (A) the recommencement of drilling on the El Capitan
      Property or (B) such time that the average of the closing price of the Company’s
      common stock over 30 consecutive trading days is at or above $1.00 per
      share;

     

                        (iii)  the
      earlier to occur of (A) a qualified joint venture or the receipt of financing
      from a mining operating company or (B) such time that the average of the closing
      price of the Company’s common stock over 30 consecutive trading days is at or
      above $1.25 per share;

     

                        (iv)  the
      earlier to occur of (A) the listing of the Company’s common stock on a major
      stock exchange or (B) such time that the average of the closing price of the
      Company’s common stock over 30 consecutive trading days is at or above $1.50 per
      share;

     

                        (v)  the
      earlier to occur of (A) the announcement of a resource calculation relating
      to
      fire assays completed on the El Capitan Property or (B) such time that the
      average of the closing price of the Company’s common stock over 30 consecutive
      trading days is at or above $1.75 per share.

     

    In
      the
      event the Company terminates Executive’s employment, or Executive resigns
      employment from the Company, within three (3) months of a Change of Control,
      the
      unvested portion of the Option shall vest immediately prior to such Change
      of
      Control as set forth in Section 6(c). Upon termination of Executive’s employment
      with the Company for any reason other than pursuant to a Change of Control
      under
      Section 6(c), Executive’s rights to any portion of the Option that has not yet
      vested as of the date of such termination shall not vest, and all of Executive’s
      rights to such unvested portion of the Option shall terminate. The Option shall
      have a term of 10 years from date of grant. In the event of termination of
      Executive’s employment, for any reason or no reason, the vested Options shall
      remain exercisable for two (2) years following the date of termination. In
      connection with such grant, the Executive shall enter into a stock option
      agreement which will memorialize the foregoing vesting schedule and other terms
      described in this Section 4(e) and provide additional standard option
      provisions. 

     

    5. Confidentiality.
      Except
      as specifically permitted by an authorized officer of the Company or by written
      Company policies, Executive will not, either during or after his employment
      by
      the Company, use Confidential Information (as defined below) for any purpose
      other than the business of the Company or disclose it to any person who is
      not
      also an executive of the Company unless authorized by the Board. When
      Executive’s employment with the Company ends, Executive will promptly deliver to
      the Company all records and any compositions, articles, devices, apparatuses
      and
      other items that disclose, describe, or embody Confidential Information,
      including all copies, reproductions, and specimens of the Confidential
      Information in Executive’s possession, regardless of who prepared them and will
      promptly deliver any other property of the Company in Executive’s possession,
      whether or not Confidential Information. As used in this Section 5,
“Confidential Information” means information that is not generally known and
      that is proprietary to the Company or that the Company is obligated to treat
      as
      proprietary, including information known by Executive prior to the Effective
      Date. Any information that Executive reasonably considers Confidential
      Information, or that the Company treats as Confidential Information, will be
      presumed to be Confidential Information (whether the Executive or others
      originated it and regardless of how the Executive obtained it). The provisions
      of this Section 5 shall survive any termination of this Agreement.

     

    
      
        

        

        Employment
          Agreement between El Capitan Precious Metals, Inc. and R. William
          Wilson

         

      

    

    
      
        3

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6. Termination.
      The
      Executive’s employment hereunder shall be terminated upon the Executive’s death
      and may be terminated as follows:

     

    (a) “Cause”
      Termination. The
      Executive’s employment hereunder may be terminated by the Board for Cause. Any
      of the following actions by the Executive shall constitute “Cause”:

     

                        (i)  The
      willful failure, disregard or refusal by the Executive to perform his duties
      hereunder;

     

                        (ii)  Any
      willful, intentional or grossly negligent act by the Executive having the effect
      of injuring, in a material way (whether financial or otherwise and as determined
      in good-faith by a majority of the Board), the business or reputation of the
      Company or any of its affiliates, including, but not limited to, any officer,
      director, executive or shareholder of the Company or any of its affiliates;
      

     

                        (iii)  Willful
      misconduct by the Executive in respect of the duties or obligations of the
      Executive under this Agreement, including, without limitation, insubordination
      with respect to directions received by the Executive from the
      Board;

     

                        (iv)  The
      Executive’s indictment of any felony or a misdemeanor involving moral turpitude
      (including entry of a nolo contendere plea);

     

                        (v)  The
      determination by the Company, after a reasonable and good-faith investigation
      by
      the Company following a written allegation by another employee of the Company,
      that the Executive engaged in some form of harassment prohibited by law
      (including, without limitation, age, sex or race discrimination), unless the
      Executive’s actions were specifically directed by the Board;

     

                        (vi)  Any
      misappropriation or embezzlement of the property of the Company or its
      affiliates (whether or not a misdemeanor or felony);

     

                        (vii)  Breach
      by
      the Executive of any of the provisions of Section 5 of this Agreement;
      and

     

                        (viii)  Breach
      by
      the Executive of any provision of this Agreement other than those contained
      in
      Section 5 which is not cured by the Executive within thirty (30) days after
      notice thereof is given to the Executive by the Company.

     

    (b) Disability
      Termination. The
      Executive’s employment hereunder may be terminated by the Board due to the
      Executive’s Disability. For purposes of this Agreement, a termination for
“Disability” shall occur (i) when the Board has provided a written termination
      notice to the Executive supported by a written statement from a reputable
      independent physician to the effect that the Executive shall have become so
      physically or mentally incapacitated as to be unable to resume, within the
      ensuing twelve (12) months, his employment hereunder by reason of physical
      or
      mental illness or injury, or (ii) upon rendering of a written termination notice
      by the Board after the Executive has been unable to substantially perform his
      duties hereunder for 90 or more consecutive days, or more than 120 days in
      any
      consecutive twelve month period, by reason of any physical or mental illness
      or
      injury. For purposes of this Section 6(b), the Executive agrees to make himself
      available and to cooperate in any reasonable examination by a reputable
      independent physician retained by the Company.

     

    
      
        

        

        Employment
          Agreement between El Capitan Precious Metals, Inc. and R. William
          Wilson

         

      

    

    
      
        4

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) Change
      of Control.The
      Executive’s employment hereunder may be terminated by the Board (or its
      successor) upon the occurrence of a Change of Control. For purposes of this
      Agreement, “Change
      of Control”
means
      (i) the acquisition, directly or indirectly, following the date hereof by any
      person (as such term is defined in Section 13(d) and 14(d)(2) of the Securities
      Exchange Act of 1934, as amended), in one transaction or a series of related
      transactions, of securities of the Company representing in excess of fifty
      percent (50%) or more of the combined voting power of the Company’s then
      outstanding securities if such person or his or its affiliate(s) do not own
      in
      excess of 50% of such voting power on the date of this Agreement, or (ii) the
      future disposition by the Company (whether direct or indirect, by sale of assets
      or stock, merger, consolidation or otherwise) of all or substantially all of
      its
      business and/or assets in one transaction or series of related transactions
      (other than a merger effected exclusively for the purpose of changing the
      domicile of the Company); provided that a merger or consolidation of the Company
      with Gold and Minerals Co., Inc shall not constitute a “Change of
      Control.”

     

    7. Compensation
      upon Termination.

     

    (a) If
      the
      Executive’s employment is terminated by the Board for Cause, then the Company
      shall pay to the Executive on the date of termination his Base Salary, any
      earned Transaction Bonus, and any expense reimbursement amounts incurred prior
      to and until the date of termination. 

     

    (b) If
      the
      Executive’s employment is terminated as a result of his death or Disability, or
      if Executive resigns his employment for any reason (other than pursuant to
      a
      Change of Control under Section 7(c) hereof), the Company shall, within a
      reasonable time after his death or Disability, pay to the Executive or to the
      Executive’s estate, as applicable, his Base Salary, any earned Transaction Bonus
      and any expense reimbursement amounts incurred prior to and until the date
      of
      his Death or Disability. 

     

    (c) If,
      within three (3) months of a Change of Control, Executive’s employment is
      terminated by the Company (or its successor) for any reason, or Executive
      resigns employment from the Company, the Company (or its successor, as
      applicable) shall, on the date of termination, (i) pay to the Executive his
      Base
      Salary, any earned Transaction Bonus and any expense reimbursement amounts
      prior
      to and until the date of termination and (ii) issue Executive $240,000 plus
      168,000 shares of Common Stock.

     

    (d) If
      the
      Executive’s employment is terminated by the Company for a reason other than as
      provided in Sections 6(a), 6(b), 6(c) or Executive’s death, the Company shall,
      within a reasonable time of such termination, (i) pay to the Executive his
      Base
      Salary, any earned Transaction Bonus and any expense reimbursement amounts
      incurred prior to and until the date of termination or his Death or Disability,
      as applicable, and (ii) issue Executive $240,000 plus 168,000 shares of Common
      Stock.

     

    
      
        

        

        Employment
          Agreement between El Capitan Precious Metals, Inc. and R. William
          Wilson

         

      

    

    
      
        5

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e) This
      Section 7 sets forth the only obligations of the Company with respect to the
      termination of the Executive’s employment with the Company, and the Executive
      acknowledges that, upon the termination of his employment, he shall not be
      entitled to any payments or benefits which are not explicitly provided in
      Section 7. Further, notwithstanding anything to the contrary contained in this
      Section 7, the Company shall have no obligation to pay, and Executive shall
      have
      no obligation to receive, any compensation, benefits or other consideration
      provided for in this Section 7 following termination of Executive’s employment
      unless Executive executes a separate agreement releasing the Company from any
      and all liability in connection with the termination of Executive’s
      employment.

     

    (f) If
      Executive is a director of the Company at the time his employment is terminated
      for any reason, the Executive shall be deemed to have resigned as director
      of
      the Company, effective as of the date of such termination.

     

    (g) The
      provisions of this Section 7 shall survive any termination of this
      Agreement.

     

    8. Gross-up
      Payment. 

     

    (a) If
      Executive becomes entitled to the Common Stock payment under Sections 7(c)
      or
      7(d) hereof (the “Payment”), which is or becomes subject to the tax imposed by
      Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) (or
      any similar tax that may hereafter be imposed) (the “Excise Tax”), the Company
      shall pay to Executive at the time specified below an additional amount (the
      “Gross-up Payment”) (which shall include, without limitation, reimbursement for
      any penalties and interest that may accrue in respect of such Excise Tax) such
      that the net amount retained by Executive, after reduction for any Excise Tax
      (including any penalties or interest thereon) on the Payment and any federal,
      state and local income or employment tax and Excise Tax on the Gross-up Payment
      provided for by this Section, but before reduction for any federal, state,
      or
      local income or employment tax on the Payment, shall be equal to the sum of
      (A)
      the Payment, and (B) an amount equal to the product of any deductions disallowed
      for federal, state, or local income tax purposes because of the inclusion of
      the
      Gross-up Payment in Executive’s adjusted gross income multiplied by the highest
      applicable marginal rate of federal, state, or local income taxation,
      respectively, for the calendar year in which the Gross-up Payment is to be
      made.
      For purposes of determining whether the Payment will be subject to the Excise
      Tax and the amount of such Excise Tax:

     

                        (i)  The
      Payment shall be treated as “parachute payments” within the meaning of Section
      280G(b)(2) of the Code, and all “excess parachute payments” within the meaning
      of Section 280G(b)(1) of the Code shall be treated as subject to the Excise
      Tax,
      unless, and except to the extent that, in the written opinion of independent
      compensation consultants, counsel or auditors of nationally recognized standing
      (“Independent Advisors”) selected by the Company and reasonably acceptable to
      Executive, the Payment (in whole or in part) does not constitute a parachute
      payment, or such excess parachute payment (in whole or in part) represents
      reasonable compensation for services actually rendered within the meaning of
      Section 280G(b)(4) of the Code in excess of the base amount within the meaning
      of Section 280G(b)(3) of the Code or are otherwise not subject to the Excise
      Tax; 

     

                        (ii)  The
      amount of the Payment which shall be treated as subject to the Excise Tax shall
      be equal to the lesser of (A) the Payment or (B) the total amount of excess
      parachute payments within the meaning of Section 280G(b)(1) of the Code (after
      applying clause (i) above); and

     

    
      
        

        

        Employment
          Agreement between El Capitan Precious Metals, Inc. and R. William
          Wilson

         

      

    

    
      
        6

      

      
        
        

        
          

        

      

      
        
        

      

    

     

                        (iii)  
      The
      value of any non-cash benefits or any deferred payment or benefit shall be
      determined by the Independent Advisors in accordance with the principles of
      Sections 280G(d)(3) and (4) of the Code.

     

    For
      purposes of determining the amount of the Gross-up Payment, Executive shall
      be
      deemed (A) to pay federal income taxes at the highest marginal rate of federal
      income taxation for the calendar year in which the Gross-up Payment is to be
      made; (B) to pay any applicable state and local income taxes at the highest
      marginal rate of taxation for the calendar year in which the Gross-up Payment
      is
      to be made, net of the maximum reduction in federal income taxes which could
      be
      obtained from deduction of such state and local taxes if paid in such year
      (determined without regard to limitations on deductions based upon the amount
      of
      Executive’s adjusted gross income); and (C) to have otherwise allowable
      deductions for federal, state, and local income tax purposes at least equal
      to
      those disallowed because of the inclusion of the Gross-up Payment in Executive’s
      adjusted gross income. In the event that the Excise Tax is subsequently
      determined to be less than the amount taken into account hereunder at the time
      the Gross-up Payment is made, Executive shall repay to the Company at the time
      that the amount of such reduction in Excise Tax is finally determined (but,
      if
      previously paid to the taxing authorities, not prior to the time the amount
      of
      such reduction is refunded to Executive or otherwise realized as a benefit
      by
      Executive) the portion of the Gross-up Payment that would not have been paid
      if
      such Excise Tax had been applied in initially calculating the Gross-up Payment,
      plus interest on the amount of such repayment at the rate provided in Section
      1274(b)(2)(B) of the Code. In the event that the Excise Tax is determined to
      exceed the amount taken into account hereunder at the time the Gross-up Payment
      is made (including by reason of any payment the existence or amount of which
      cannot be determined at the time of the Gross-up Payment), the Company shall
      make an additional Gross-up Payment in respect of such excess (plus any interest
      and penalties payable with respect to such excess) at the time that the amount
      of such excess is finally determined.

     

    The
      Gross-up Payment provided for above shall be paid on the 30th day (or such
      earlier date as the Excise Tax becomes due and payable to the taxing
      authorities) after it has been determined that the Payment (or any portion
      thereof) is subject to the Excise Tax; provided, however, that if the amount
      of
      such Gross-up Payment or portion thereof cannot be finally determined on or
      before such day, the Company shall pay to Executive on such day an estimate,
      as
      determined by the Independent Advisors, of the minimum amount of such payments
      and shall pay the remainder of such payments (together with interest at the
      rate
      provided in Section 1274(b)(2)(B) of the Code), as soon as the amount thereof
      can be determined. In the event that the amount of the estimated payments
      exceeds the amount subsequently determined to have been due, such excess shall
      constitute a loan by the Company to Executive, payable on the fifth day after
      demand by the Company (together with interest at the rate provided in Section
      1274(b)(2)(B) of the Code). If more than one Gross-up Payment is made, the
      amount of each Gross-up Payment shall be computed so as not to duplicate any
      prior Gross-up Payment. The Company shall have the right to control all
      proceedings with the Internal Revenue Service that may arise in connection
      with
      the determination and assessment of any Excise Tax and, at its sole option,
      the
      Company may pursue or forego any and all administrative appeals, proceedings,
      hearings, and conferences with any taxing authority in respect of such Excise
      Tax (including any interest or penalties thereon); provided, however, that
      the
      Company’s control over any such proceedings shall be limited to issues with
      respect to which a Gross-up Payment would be payable hereunder, and Executive
      shall be entitled to settle or contest any other issue raised by the Internal
      Revenue Service or any other taxing authority. Executive shall cooperate with
      the Company in any proceedings relating to the determination and assessment
      of
      any Excise Tax and shall not take any position or action that would materially
      increase the amount of any Gross-Up Payment hereunder.

     

    
      
        

        

        Employment
          Agreement between El Capitan Precious Metals, Inc. and R. William
          Wilson

         

      

    

    
      
        7

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Modified
      Cut-Back.
      Notwithstanding the foregoing, if it shall be determined that the amount of
      any
      payment due Executive pursuant to this Section would result in less than $20,000
      in net after-tax value to Executive, then no Gross-Up payment shall be made
      to
      Executive and the total payments due Executive pursuant to this Section shall
      be
      reduced to an amount that would not result in the imposition of any Excise
      Tax.

     

    9. Tax
      Election.
      Executive shall be responsible for filing with the Internal Revenue Service
      an
      appropriate written notice of election pursuant to Section 83(b) of the Internal
      Revenue Code of 1986, as amended, if Executive wishes to make such an election.
      Grantee shall notify the Company in writing if Grantee files such an election
      within 30 days of the date of this Agreement. The Company intends, in the event
      it does not receive from Executive evidence of such filing, to claim a tax
      deduction for any amount which would otherwise be taxable to Executive in the
      absence of such an election. EXECUTIVE ACKNOWLEDGES THAT IT IS EXECUTIVE’S SOLE
      RESPONSIBILITY AND NOT THE COMPANY'S TO FILE TIMELY THE ELECTION UNDER SECTION
      83(b), EVEN IF EXECUTIVE REQUESTS THE COMPANY OR ITS REPRESENTATIVE TO MAKE
      THIS
      FILING ON EXECUTIVE’S BEHALF.

     

    10. Dispute
      Resolution.
      Any
      dispute arising out of or related to Executive’s employment with the Company or
      this Agreement or any breach or alleged breach hereof shall be exclusively
      decided by binding arbitration before a single arbitrator in a mutually
      convenient location and governed by the rules of the American Arbitration
      Association. The arbitrator shall have the power and authority to issue
      temporary and permanent awards of injunctive and equitable relief. Attorneys’
fees in each case shall be paid to the prevailing party by the non-prevailing
      party. Executive irrevocably waives Executive’s right, if any, to have any
      disputes between Executive and the Company arising out of or related to
      Executive’s employment with the Company or this Agreement decided in any
      jurisdiction or venue other than by binding arbitration pursuant to the terms
      hereof. The promises by the Company and Executive to arbitrate, which the
      parties agree can be a less expensive and quicker way to resolve disputes than
      litigating them in court or before other agencies or tribunals, constitutes
      adequate, reasonable and sufficient mutual consideration for the enforcement
      of
      this Agreement. 

     

    11. General
      Provisions.

     

    (a) Successors
      and Assigns.
      This
      Agreement is binding on and inures to the benefit of the Company’s successors
      and assigns, all of which are included in the term the “Company” as it is used
      in this Agreement; provided,
      however,
      that
      the Company may assign this Agreement only in connection with a merger,
      consolidation, assignment, sale or other disposition of substantially all of
      its
      assets or business.

     

    (b) Amendment.
      This
      Agreement may be modified or amended only by a written agreement signed by
      both
      the Company and Executive.

     

    
      
        

        

        Employment
          Agreement between El Capitan Precious Metals, Inc. and R. William
          Wilson

         

      

    

    
      
        8

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) Governing
      Law.
      The laws
      of the state of Nevada will govern the validity, construction, and performance
      of this Agreement, without regard to any choice of law or conflict of law rules
      and regardless of the location of any arbitration under this Agreement.

     

    (d) Construction.
      Wherever possible, each provision of this Agreement will be interpreted so
      that
      it is valid under the applicable law. If any provision of this Agreement is
      to
      any extent invalid under the applicable law, that provision will still be
      effective to the extent it remains valid. The remainder of this Agreement also
      will continue to be valid, and the entire Agreement will continue to be valid
      in
      other jurisdictions.

     

    (e) No
      Waiver.
      No
      failure or delay by either the Company or Executive in exercising or enforcing
      any right or remedy under this Agreement will waive any provision of the
      Agreement. Nor will any single or partial exercise by either the Company or
      Executive of any right or remedy under this Agreement preclude either of them
      from otherwise or further exercising these rights or remedies, or any other
      rights or remedies granted by any law or any related document.

     

    (f) Captions.
      The
      headings in this Agreement are for convenience only and shall not affect this
      Agreement’s interpretation.

     

    (g) References.
      Except
      as otherwise required or indicated by the context, all references to Sections
      in
      this Agreement refer to Sections of this Agreement.

     

    (h) Entire
      Agreement.
      This
      Agreement supersedes all previous and contemporaneous oral negotiations,
      commitments, writings, and understandings between the parties concerning the
      matters in this Agreement. In the case of any conflict between the terms of
      this
      Agreement and any other agreement, writing or understanding, this Agreement
      will
      control.

     

    (i) Notices.
      All
      notices and other communications required or permitted under this Agreement
      shall be in writing and shall be hand delivered or sent by registered or
      certified first class mail, postage prepaid, and shall be effective upon
      delivery if hand delivered, or three days after mailing if mailed to the
      addresses stated below. These addresses may be changed at any time by like
      notice:

     

    
      	
              If
                to the Company:

            	
              El
                Capitan Precious Metals, Inc.

              14301
                North 87th Street, Suite 216

              Scottsdale,
                Arizona 85260

            
	
              If
                to Executive:

            	
              R.
                William Wilson

              ______________

              ______________

            

    

     

    (j) Counterparts.
      This
      Agreement may be executed in any number of counterparts, all of which taken
      together shall constitute one agreement binding on all parties. Each party
      shall
      become bound by this Agreement immediately upon signing any counterpart,
      independently of the signature of any other party. In making proof of this
      Agreement, however, it will be necessary to produce only one copy signed by
      the
      party to be charged.

     

    Signature
      Page Follows

     

    
      
        
          

          

          Employment
            Agreement between El Capitan Precious Metals, Inc. and R. William
            Wilson

           

        

        9

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    IN
      WITNESS WHEREOF, the undersigned Executive and the Company have executed this
      Agreement effective as of the Effective Date.

     

    
      	 	 	 
	 	
              El
                Capitan
                Precious Metals, Inc.

              a Nevada corporation

            
	 
 	 
 	 
 
	 	By:  	/s/ Kenneth
              P. Pavlich  
	 	
              

              Kenneth
                P. Pavlich

              Its: President and Chief Executive
                Officer

            
	 	 

    

     

    
      	 	 	 
	 	 
	 
 	 
 	 
 
	 	By:  	/s/ R.
              William Wilson 
	 	
              
R.
              William Wilson
	 	 

    

     

     

     

     

    
      Signature
        Page of Employment Agreement between El Capitan Precious Metals, Inc. and
        R.
        William WilsonCONSULTING
      AGREEMENT

     

    This
      Consulting Agreement (“Agreement”) is entered into as of January 26, 2007
      (“Effective Date”), by and between PACE Health Management Systems, Inc., an Iowa
      corporation (the “Company”), and Yankee Partners, LLC (the
“Consultant”).

     

    In
      consideration of the mutual covenants and conditions set forth herein, and
      other
      good and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereby agree as follows:

     

    1. Relationship
      of the Parties.
      (a)
      Consultant agrees to perform services (the “Services”) for the Company relating
      to the Mid-Atlantic Region programs of the Company, as well as management and
      other services as agreed to by Consultant and the Company. 

     

    (b) In
      the
      performance of the Services, Consultant shall act solely as an independent
      contractor, and nothing herein shall at any time be construed to create the
      relationship of employer and employee, partnership, principal and agent, or
      joint venture as between the Company and Consultant. Neither party shall have
      any right or authority to, nor will either party attempt to enter into any
      contract, commitment or agreement, or to incur any debt or liability of any
      nature, in the name, or on behalf, of the other party. 

     

    2. Term.
      The
      term of this Agreement shall commence as of January 26, 2007 (the “Commencement
      Date”), and end on the one year anniversary of the Commencement Date (the
“Initial Term”), unless earlier terminated as provided in Section 4 or 5 hereof.
      This Agreement shall be automatically renewed for successive one-year periods
      thereafter, commencing upon the expiration of the Initial Term, unless earlier
      terminated as provided in Section 4 or 5 hereof. Consultant shall, following
      the
      Commencement Date, provide its Services to the Company on a full-time business
      basis requiring the devotion of 5 days per week of its productive business
      time
      for the efficient and successful operation of the business of the
      Company.

     

    3. Compensation
      and Benefits.

     

    3.1 Cash
      Compensation.
      For the
      performance of Consultant’s Services hereunder following the Commencement Date,
      the Company shall pay Consultant a per diem amount equal to $730.77 per day
      (the
“Per Diem Amount”) for each day worked on behalf of the Company, or such greater
      amount as may be agreed upon by the parties. On the first of each month,
      Consultant shall submit to the Company for approval a tentative monthly schedule
      indicating Consultant’s anticipated performance time, including, without
      limitation, days, hours and locations relating to Consultant’s performance of
      its Services on behalf of the Company, as well as Consultant’s travel dates and
      travel time. In the event Consultant is traveling and works a two shift day
      providing Services as a physician’s assistant at any of the detention facilities
      set forth on Schedule I attached hereto, as indicated by overnight stays on
      both
      the day immediately prior and after the working day, then Consultant’s Per Diem
      Amount will be equal to two (2) days work or $1,461.54. Consultant shall submit
      biweekly time sheets in accordance with Company policy which shall be due by
      10:00 AM on the first Monday following the end of the Company’s biweekly pay
      period.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    3.2 Additional
      Compensation; Incentive Compensation.

     

    (a) Company
      may, in its sole discretion, pay additional compensation (“Additional
      Compensation”) to Consultant based upon the performance of its Services. The
      amount of the Additional Compensation, which is not to exceed an aggregate
      of
      $40,000 annually, shall be based on Consultant’s ability to maintain the
      Company’s current business and revenues generated by all Maryland sites for the
      year 2007 (the “Maryland Accounts”), such amount to be prorated against each
      Maryland Account. A list of the Maryland Accounts and the prorated Additional
      Compensation amounts are set forth on Schedule I attached hereto.
      Notwithstanding the foregoing, in the event the revenues generated by any
      individual Maryland Account are equal to an amount less than the stipulated
      revenue amount for such year, such revenues shall not be included in calculating
      the Additional Compensation amount.

     

    (b) Further,
      in the event Consultant generates New Business Services (as defined below)
      on
      behalf of the Company, the Company shall pay to Consultant an incentive
      compensation (“Incentive Compensation”) amount equal to one half (1/2) of one
      percent (1%) of the first twelve (12) months of gross revenue actually collected
      and received by the Company from each New Business Service, provided,
      however,
      that
      the gross revenue generated through such New Business Services shall exclude
      price escalators and cost-of-living adjustments. Any Additional Compensation
      or
      Incentive Compensation paid to Consultant shall be in addition to the Per Diem
      Amount. All compensation earned by Consultant shall be subject to all applicable
      state and federal tax obligations. For purposes of this Agreement, “New Business
      Services” shall mean new site contracts between the Company and new detention
      facilities, as well as new services added to the Company’s current site
      contracts, including but not limited to, pharmaceutical services, mental health
      services, dental services, employee physicals and third party
      administration.

     

    (c) Any
      and
      all amounts of Additional Compensation or Incentive Compensation to which
      Consultant is entitled shall be payable within 45 days after the close of each
      applicable calendar quarter.

     

    3.3 Stock
      Options.
      From
      time to time the Company may grant to Consultant options under the Company’s
      2007 Stock Option Plan (or its successor stock plan) to purchase shares of
      the
      Company’s common stock at a stated exercise price per share.

     

    3.4 Benefits.
      Consultant shall not be eligible for or entitled to any and all benefits
      provided by the Company to its employees.

     

    3.5 Reimbursement
      of Expenses.
      Consultant shall be entitled to be reimbursed for all reasonable expenses,
      including but not limited to expenses for travel for business, as appropriate,
      business meals and entertainment, incurred by Consultant in performing its
      Services. The Company shall reimburse Consultant for travel expenses for
      business purposes with respect to a vehicle of Consultant’s choice, including
      but not limited to, tolls, gasoline and parking. In addition to the
      reimbursement of such travel expenses, Consultant shall be entitled to a monthly
      car allowance in the amount of $800 per month to be paid by the Company. Such
      monthly car allowance shall be subject to all applicable state and federal
      tax
      obligations. Consultant shall submit expense reports and receipts documenting
      the expenses incurred in accordance with Company policy as provided. The
      Company’s obligation to reimburse authorized expenses incurred or accrued prior
      to termination of this Agreement shall survive any such
      termination.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    4. Change
      of Control.
      In the
      event of a Change of Control (as defined below) of the Company, all options
      and
      other equity incentives then granted to Consultant, if any, which are unvested
      at the date of the Change of Control shall immediately vest and be
      exercisable.

     

    As
      used
      herein, a “Change of Control” of the Company shall mean any of the following:
      (i) the acquisition by any person(s) (individual, entity or affiliated or
      unaffiliated group) in one or a series of transactions (including, without
      limitation, issuance of shares by the Company or through merger of the Company
      with another entity) of direct or indirect record or beneficial ownership of
      50%
      or more of the voting power with respect to matters put to the vote of the
      shareholders of the Company and, for this purpose, the terms “person” and
“beneficial ownership” shall have the meanings provided in Section 13(d) or
      14(d) of the Securities Exchange Act of 1934 or related rules promulgated by
      the
      Securities and Exchange Commission; (ii) the commencement of or public
      announcement of an intention to make a tender or exchange offer for more than
      50% of the then outstanding Shares of the common stock of the Company; or (iii)
      a sale of all or substantially all of the assets of the Company. Notwithstanding
      the foregoing, the following acquisitions shall not constitute a “Change of
      Control”: (1) the capital raise and the closing of the merger between the
      Company and ConMed, Inc. with the Company as the surviving entity; (2) the
      consummation of the expected Plan of Recapitalization disclosed in the
      Confidential Private Placement Memorandum, dated September 13, 2006; (3) the
      closing of any transaction that in good faith may be reasonably characterized
      as
      an acquisition of another entity by the Company rather than the other way
      around; or (4) any acquisition of the Company or its shares by any employee
      benefit plan (or related trust) sponsored or maintained by the Company or any
      corporation controlled by the Company. 

     

    5. Termination.

     

    5.1 Termination.
      Either
      party may terminate the Agreement at any time for any reason with 90 days’ prior
      written notice to the other party.

     

    5.2 Effects
      of Termination.

     

    (a) Upon
      termination of this Agreement, the Company will promptly pay Consultant all
      Per
      Diem Amounts owed to Consultant, as previously defined in writing by the
      Company, and unpaid through the date of termination (including, without
      limitation, expense reimbursements). 

     

    (b) Upon
      termination of this Agreement, Consultant or any of its members agree that
      for
      the three (3) year period following the date of such termination or during
      the
      period that Consultant or any of its members are an owner of any issued and
      outstanding stock of the Company:

     

    (i) Consultant
      or any of its members will not directly or indirectly, whether as a director,
      consultant or advisor, or in any other capacity whatsoever other than a passive
      investor or an owner of more than five percent (5%) of the issued and
      outstanding shares of stock of any such entity, provide services to any person,
      firm, corporation or other business enterprise located in any state in which
      the
      Company is doing business, which is involved in the business of providing
      healthcare services or management services to jails, prisons, or correctional
      facilities in direct competition with the Company, unless Consultant or such
      member obtains the Company’s prior written consent.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (ii) Consultant
      or any of its members will not knowingly, directly and actively solicit any
      individual to leave the Company’s then full-time employ, for any reason, to join
      or be employed by any employer that then employs Consultant or any of its
      members as an employee, director, consultant or advisor.

     

    (iii) Consultant
      or any of its members will not knowingly, directly and actively induce any
      provider, agent, customer, supplier, distributor, or licensee of the Company
      to
      cease doing business with the Company or to breach its agreement with the
      Company.

     

    (c) Consultant
      or any of its members acknowledge that monetary damages may not be sufficient
      to
      compensate the Company for any economic loss, which may be incurred by reason
      of
      breach of the restrictive covenants set forth in Section 5.2(b). Accordingly,
      in
      the event of any such breach, the Company shall, in addition to any remedies
      available to the Company at law, be entitled to seek equitable relief in the
      form of an injunction, precluding Consultant or such member from continuing
      to
      engage in such breach.

     

    (d) If
      any
      restriction set forth in Section 5.2(b) is held to be unreasonable, then
      Consultant or any of its members and the Company agree, and hereby submit,
      to
      the reduction and limitation of such prohibition to such area or period as
      shall
      be deemed reasonable.

     

    (e) In
      the
      event of termination of this Agreement, Consultant and any of its members agree
      not to make to any person, including but not limited to customers of the
      Company, any statement that disparages the Company or which reflects negatively
      upon the Company, including but not limited to statements regarding the
      Company’s financial condition, its officers, directors, shareholders, employees
      and affiliates. The Company agrees not to make to any person, including but
      not
      limited to customers of the Company, any statement that disparages Consultant
      or
      any of its members or which reflects negatively upon Consultant or any of its
      members, including but not limited to statements regarding Consultant’s
      financial condition.

     

    6. Confidentiality.
      This
      Agreement with the Company shall be contingent upon Consultant’s execution of,
      and the Company’s receipt of the Non-Competition, Non-Solicitation and
      Confidentiality Agreement, substantially in the form attached hereto as
Exhibit
      A.

     

    7. Indemnification.
      Consultant and its members assume liability for, and shall indemnify, defend,
      protect, save and hold the Company harmless from and against any and all claims,
      actions, suits, costs, liabilities, judgments, obligations, losses, payments,
      interests, penalties, taxes (including employee withholding taxes), damages
      and
      expenses (including reasonable legal fees and expenses) or other liabilities
      of
      whatsoever kind or nature, incurred by the Company resulting from, based upon,
      relating to or arising out of the Consultant’s relationship with the Company
      pursuant to this Agreement, the Consultant’s performance of its Services under
      this Agreement or any breach or alleged breach of any of Consultant’s
      representations, covenants or obligations made pursuant to this
      Agreement.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    8. General
      Provisions.

     

    8.1 Assignment.
      Neither
      party may assign or delegate any of its rights or obligations under this
      Agreement without the prior written consent of the other party.

     

    8.2 Entire
      Agreement.
      This
      Agreement contains the entire agreement between the parties with respect to
      the
      subject matter hereof and supersedes any and all prior written and verbal
      agreements between the parties.

     

    8.3 Modifications.
      This
      Agreement may be changed or modified only by an agreement in writing signed
      by
      both parties hereto.

     

    8.4 Successors
      and Assigns.
      The
      provisions of this Agreement shall inure to the benefit of, and be binding
      upon,
      the Company and its successors and permitted assigns and Consultant and its
      successors and permitted assigns by operation of law, whether or not any such
      person shall have become a party to this Agreement and have agreed in writing
      to
      join and be bound by the terms and conditions hereof.

     

    8.5 Governing
      Law.
      This
      Agreement shall be governed by, construed and enforced in accordance with,
      the
      laws of the State of Delaware, and venue and jurisdiction for any disputes
      hereunder shall be heard in any court of competent jurisdiction in Delaware
      for
      all purposes.

     

    8.6 Severability.
      If any
      provision of this Agreement is held by a court of competent jurisdiction to
      be
      invalid, void or unenforceable, the remaining provisions shall nevertheless
      continue in full force and effect.

     

    8.7 Further
      Assurances.
      The
      parties will execute such further instruments and take such further actions
      as
      may be reasonably necessary to carry out the intent of this
      Agreement.

     

    8.8 Notices.
      Any
      notices or other communications required or permitted hereunder shall be in
      writing and shall be deemed received by the recipient when delivered personally
      or, if mailed, five (5) days after the date of deposit in the United States
      mail, certified or registered, postage prepaid and addressed, in the case of
      the
      Company, to its corporate headquarters, attention Chairman of the Board, and
      in
      the case of Consultant, to the address shown for Consultant on the signature
      page hereof, or to such other address as either party may later specify by
      at
      least ten (10) days advance written notice delivered to the other party in
      accordance herewith.

     

    8.9 No
      Waiver.
      The
      failure of either party to enforce any provision of this Agreement shall not
      be
      construed as a waiver of that provision, nor prevent that party thereafter
      from
      enforcing that provision of any other provision of this Agreement.

     

    8.10 Legal
      Fees and Expenses.
      In the
      event of any disputes under this Agreement, the prevailing party or parties
      shall be reimbursed by the party or parties who do not prevail for their
      reasonable attorneys, accountants and expert fees and related expenses and
      for
      the costs of such proceeding.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    8.11 Counterparts.
      This
      Agreement may be executed by exchange of facsimile signature pages and/or in
      counterparts, each of which shall be deemed to be an original, but all of which
      together shall constitute one and the same instrument.

     

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

    

    

    PACE
      Health Management Systems, Inc.

    

    

    By:          
      /s/
      Richard
      Turner                                                     

    Name:
      Richard Turner, PH.D.

    Title:
      President

    

    

    

    

    CONSULTANT:

    

    YANKEE
      PARTNERS, LLC

    

    

    By:           /s/
      Ronald H.
      Grubman                                             

    Name:
      Ronald H. Grubman

    Title:
      Member

    

    Address:
      

    

    

    

    

        
      /s/ Ronald H.
      Grubman                                                     

    Ronald
      H.
      Grubman,

    for
      purposes of §§5.2(b), (c), (d) and (e), and 6 only

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    SCHEDULE
      I

    

    MARYLAND
      ACCOUNTS

    

      
        	
                Site

                 

              	
                1st
                  Qtr 2007

                Forecast

              	
                2nd
                  Qtr 2007

                Forecast

              	
                3rd
                  Qtr 2007

                Forecast

              	
                4th
                  Qtr 2007

                Forecast

              	
                Annual
                  2007

                Forecast

              

      

      
        	
                Current
                  Contracts

              	 	 	 	 	 
	
                Allegany,
                  MD

              	
                $188,024
                  

              	
                $188,024
                  

              	
                $195,545
                  

              	
                $195,545
                  

              	
                $767,138
                  

              
	
                Baltimore,
                  MD 

              	
                1,514,308
                  

              	
                1,514,308
                  

              	
                1,574,880
                  

              	
                1,574,880
                  

              	
                6,178,376
                  

              
	
                Calvert,
                  MD 

              	
                64,753
                  

              	
                64,753
                  

              	
                67,343
                  

              	
                67,343
                  

              	
                264,192
                  

              
	
                Carroll,
                  MD 

              	
                99,922
                  

              	
                99,922
                  

              	
                103,919
                  

              	
                103,919
                  

              	
                407,682
                  

              
	
                Cecil,
                  MD 

              	
                311,530
                  

              	
                311,530
                  

              	
                323,991
                  

              	
                323,991
                  

              	
                1,271,042
                  

              
	
                Charles
                  Co,, MD 

              	
                416,098
                  

              	
                416,098
                  

              	
                432,742
                  

              	
                432,742
                  

              	
                1,697,680
                  

              
	
                CCSO-Charles,
                  MD 

              	
                12,000
                  

              	
                12,000
                  

              	
                12,480
                  

              	
                12,480
                  

              	
                48,960
                  

              
	
                Dorchester,
                  MD 

              	
                68,535
                  

              	
                68,535
                  

              	
                71,276
                  

              	
                71,276
                  

              	
                279,622
                  

              
	
                Frederick,
                  MD 

              	
                325,000
                  

              	
                325,000
                  

              	
                338,000
                  

              	
                338,000
                  

              	
                1,326,000
                  

              
	
                Harford,
                  MD 

              	
                507,735
                  

              	
                507,735
                  

              	
                528,044
                  

              	
                528,044
                  

              	
                2,071,558
                  

              
	
                Howard,
                  MD 

              	
                323,782
                  

              	
                323,782
                  

              	
                336,733
                  

              	
                336,733
                  

              	
                1,321,030
                  

              
	
                Kent,
                  MD 

              	
                48,154
                  

              	
                48,154
                  

              	
                50,080
                  

              	
                50,080
                  

              	
                196,468
                  

              
	
                Queen
                  Anne, MD 

              	
                47,096
                  

              	
                47,096
                  

              	
                48,980
                  

              	
                48,980
                  

              	
                192,152
                  

              
	
                St
                  Mary's, MD 

              	
                102,283
                  

              	
                102,283
                  

              	
                106,374
                  

              	
                106,374
                  

              	
                417,314
                  

              
	
                SMD
                  St Mary's, MD 

              	
                5,081
                  

              	
                5,081
                  

              	
                5,284
                  

              	
                5,284
                  

              	
                20,730
                  

              
	
                SMTF
                  St Mary's, MD 

              	
                13,700
                  

              	
                13,700
                  

              	
                14,248
                  

              	
                14,248
                  

              	
                55,896
                  

              
	
                Somerset,
                  MD 

              	
                73,903
                  

              	
                73,903
                  

              	
                76,859
                  

              	
                76,859
                  

              	
                301,524
                  

              
	
                Talbot,
                  MD 

              	
                71,420
                  

              	
                71,420
                  

              	
                74,277
                  

              	
                74,277
                  

              	
                291,394
                  

              
	
                Totals
                  

              	
                4,193,324
                  

              	
                4,193,324
                  

              	
                4,361,055
                  

              	
                4,361,055
                  

              	
                17,108,758
                  

              

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

     

    EXHIBIT
      A

    

    

    NON-COMPETITION,
      NON-SOLICITATION AND

    CONFIDENTIALITY
      AGREEMENT

    

    This
      NON-COMPETITION, NON-SOLICITATION AND CONFIDENTIALITY AGREEMENT (this
“Agreement”)
      is
      entered into effective for all purposes as of this ___ day of _______, 2007
      by
      Yankee Partners, LLC and its sole member, Ronald H. Grubman, (collectively,
      the
“Consultant”)
      in
      favor of ConMed, Inc., a Maryland corporation, and/or any of its affiliates,
      parents, subsidiaries or other related entities (collectively, the “Company”).

    

    In
      consideration and as a condition of Consultant’s agreement with the Company,
      Consultant hereby agrees as follows:

    

    1. Confidentiality.
      At all
      times, Consultant shall keep confidential, except as the Company may otherwise
      consent to in writing, and not disclose, or make any use of except for the
      benefit of the Company and in no way competitive with the Company, at any time
      either during or subsequent to performance by Consultant of services for the
      Company, any trade secrets, confidential information, knowledge, data or other
      information of the Company relating to products, processes, know-how, technical
      data, designs, formulas, test data, customer lists, business plans, marketing
      plans and strategies, and pricing strategies or other subject matter pertaining
      to any business of the Company or any of its clients, customers, consultants,
      licensees or affiliates (collectively, the “Confidential
      Information”),
      which
      Consultant may produce, obtain or otherwise learn of during the course of
      Consultant’s performance of services and after the cessation
      of Consultant’s agreement with
      the
      Company. Consultant shall not deliver, reproduce, or in any way allow any such
      Confidential Information to be delivered to or used by any third parties without
      the specific direction or consent of an authorized representative of the
      Company.

    

    As
      used
      in this Agreement, the term “cessation
      of Consultant’s services to the Company”
shall
      mean any separation from Consultant providing services to the Company, either
      voluntarily or involuntarily, either with cause or without cause, or whether
      the
      separation is at the behest of the Company or Consultant.

    

    2. Return
      of Confidential Material.
      Upon
      the cessation
      of Consultant’s services
      to the
      Company, Consultant shall promptly surrender and deliver to the Company all
      records, materials, equipment, drawings, documents, lab notes and books and
      data
      of any nature pertaining to any Confidential Information of the Company or
      to
      the services provided by Consultant, and Consultant will not take or retain
      (in
      any form or format) any description containing or pertaining to any Confidential
      Information which Consultant may produce or obtain during the course of the
      Consultant’s association with the Company.

    

    3. Trade
      Secrets of Others.
      Consultant represents that its performance of all the terms of this Agreement
      and as a consultant of the Company does not and will not breach any agreement
      to
      keep in confidence proprietary information, knowledge or data acquired by
      Consultant in confidence or in trust, and Consultant will not disclose to the
      Company, or induce the Company to use, any confidential or proprietary
      information or material belonging to any other person or entity. Consultant
      will
      not enter into any agreement, either written or oral, in conflict
      herewith.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    4. Non-Competition;
      Non-Solicitation. For
      purposes of this Agreement, the term “Competitive
      Activity”
shall
      mean engaging in the business of providing medical healthcare services to
      detention facilities. Consultant will not knowingly do, or prepare to do, any
      of
      the following, either
      individually or through any entity controlled by Consultant, and either on
      Consultant’s behalf or on behalf of any other person or entity competing or
      endeavoring to compete with the Company, directly or indirectly, during
      Consultant’s services to the Company and during the period of two (2) years
      after the cessation of Consultant’s services to the Company, in the states
      within which the Company conducts its business:

    

    (a) Own,
      manage, operate, control, consult for, be an officer or director of, work for,
      or be employed in any capacity by any corporation, partnership, limited
      liability company, educational or not-for-profit institution or any other
      business, entity, agency or organization which is in any way involved in the
      Competitive Activity; or

    

    (b) Solicit
      prior or current customers, collaborators, joint venturers or other business
      affiliations of the Company for any purpose associated with a Competitive
      Activity; or

    

    (c) Solicit
      for
      employment or retention (or, following such solicitation, employ or retain)
      as
      an employee, independent contractor or agent, any
      employees or consultants of the Company to engage in, either with the Consultant
      or in any other capacity, any Competitive Activity.

    

    In
      the
      event that Consultant improperly competes with the Company in any manner set
      forth above, the period during which Consultant engages in such competition
      shall not be counted in determining the duration of the two (2) year non-compete
      restriction.

    

    5. Injunctive
      Relief.
      Consultant acknowledges that any breach or attempted breach by Consultant of
      this Agreement or any provision hereof shall cause the Company irreparable
      harm
      for which any adequate monetary remedy does not exist. Accordingly, in the
      event
      of any such breach or threatened breach, the Company shall be entitled to obtain
      injunctive relief, without the necessity of posting a bond or other surety,
      restraining such breach or threatened breach.

    

    6. Modification.
      This
      Agreement may not be changed, modified, released, discharged, abandoned, or
      otherwise amended, in whole or in part, except by an instrument in writing,
      signed by Consultant and by the Company. Any subsequent change or changes in
      the
      relationship between the Company and Consultant or in Consultant’s compensation
      by the Company shall not affect the validity or scope of this
      Agreement.

    

    7. Reasonable
      Terms.
      Consultant acknowledges and agrees that the restrictive covenants contained
      in
      this Agreement have been reviewed by Consultant with the benefit of counsel
      and
      that such covenants are reasonable in all of the circumstances for the
      protection of the legitimate interests of the Company.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

       

      8. Entire
        Agreement.
        Consultant acknowledges receipt of this Agreement, and agrees that with respect
        to the subject matter thereof it is Consultant’s entire agreement with the
        Company, superseding any previous oral or written communications,
        representations, understandings, or agreements with the Company or any officer
        or representative thereof.

    

    

    9. Severabilitv.
      In the
      event that any paragraph or provision of this Agreement shall be held to be
      illegal or unenforceable, the entire Agreement shall not fail on account
      thereof. It is further agreed that if any one or more of such paragraphs or
      provisions shall be judged to be void as going beyond what is reasonable in
      all
      of the circumstances for the protection of the interests of the Company, but
      would be valid if part of the wording thereof were deleted or the period thereof
      reduced or the range of activities covered thereby reduced in scope, the said
      reduction shall be deemed to apply with such modifications as may be necessary
      to make them valid and effective and any such modification shall not thereby
      affect the validity of any other paragraph or provisions contained in this
      Agreement.

    

    10. Successors
      and Assigns.
      This
      Agreement shall be binding upon the heirs, executors, administrators or other
      legal representatives of Consultant and is for the benefit of the Company,
      its
      successors and assigns.

    

    11. Governing
      Law.
      This
      Agreement shall be governed by the laws of the State of Delaware except for
      any
      conflicts of law rules thereof which might direct the application of the
      substantive laws of another state.

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
      first forth above.

    

    
      	 	 	 
	 	CONSULTANT:
	 	 
	 	YANKEE
              PARTNERS,
              LLC
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:
                Ronald H. Grubman

              Title:
                Member

            
	 	 
	 	 
	 	
              
                

              

              Ronald
                H. Grubman

            

    

     

     

    
      	 	 	 
	 	CONMED,
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:
                Richard Turner, PH.D.

              Title:
                Chief Executive Officer

            
	 	 

    

    

    
      
         

      

      
        11

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