Document:

exv10w10

Exhibit 10.10

 

EMPLOYMENT AGREEMENT

BETWEEN

JON L. HART

AND

AURORA DIAGNOSTICS HOLDINGS, LLC

 

 

 

EMPLOYMENT AGREEMENT

	 	 	 	 	 

	1.
Effective Date
	 	 	1	 
	 
	 	 	 	 
	2. Employment
	 	 	1	 
	 
	 	 	 	 
	3. Employment Period
	 	 	1	 
	 
	 	 	 	 
	4. Extent of Service
	 	 	1	 
	 
	 	 	 	 
	5. Compensation and Benefits
	 	 	1	 
	 
	 	 	 	 
	(a) Base Salary 
	 	 	1	 
	 
	 	 	 	 
	(b) Incentive, Savings and Retirement Plans 
	 	 	2	 
	 
	 	 	 	 
	(c) Welfare Benefit Plans 
	 	 	2	 
	 
	 	 	 	 
	(d) Expenses 
	 	 	2	 
	 
	 	 	 	 
	(e) Vacation 
	 	 	3	 
	 
	 	 	 	 
	6. Termination of Employment
	 	 	3	 
	 
	 	 	 	 
	(a)  Death or Retirement 
	 	 	3	 
	 
	 	 	 	 
	(b)  Disability 
	 	 	3	 
	 
	 	 	 	 
	(c)  Termination by the Company 
	 	 	3	 
	 
	 	 	 	 
	(d)  Termination by Executive 
	 	 	4	 
	 
	 	 	 	 
	(e)  Notice of Termination 
	 	 	5	 
	 
	 	 	 	 
	(f)  Date of Termination 
	 	 	5	 
	 
	 	 	 	 
	7. Obligations of the Company upon Termination
	 	 	5	 
	 
	 	 	 	 
	(a) Termination by Executive for Good Reason;
Termination by the Company Other Than for Cause or Disability
	 	 	5	 
	 
	 	 	 	 
	(b) Death, Disability or Retirement 
	 	 	6	 
	 
	 	 	 	 
	(c) Cause; Other than Good Reason 
	 	 	6	 
	 
	 	 	 	 
	(d) Expiration of the Original Term or any
Renewal Term without Renewal
	 	 	6	 
	 
	 	 	 	 
	(e) Resignations 
	 	 	6	 
	 
	 	 	 	 
	8. Restrictive Covenants
	 	 	7	 
	 
	 	 	 	 
	(a) Definitions 
	 	 	7	 
	 
	 	 	 	 
	(b) Noncompetition 
	 	 	8	 
	 
	 	 	 	 
	(c) Non-Solicitations of Protected Customers 
	 	 	8	 
	 
	 	 	 	 
	(d) Non-Solicitation of Protected Employees 
	 	 	8	 

 

 

	 	 	 	 	 

	(e) Restriction on Disclosure and Use of
Confidential Information and Trade Secrets
	 	 	9	 
	 
	 	 	 	 
	(f) Enforcement of Restrictive Covenants 
	 	 	9	 
	 
	 	 	 	 
	9. Proprietary Rights
	 	 	10	 
	 
	 	 	 	 
	(a) Works Made for Hire 
	 	 	10	 
	 
	 	 	 	 
	(b) Invention Assignment 
	 	 	10	 
	 
	 	 	 	 
	10. Non-exclusivity of Rights
	 	 	11	 
	 
	 	 	 	 
	11. Full Settlement; No Mitigation
	 	 	11	 
	 
	 	 	 	 
	12. Mandatory Reduction of Payments in Certain Events
	 	 	11	 
	 
	 	 	 	 
	13. Successors
	 	 	12	 
	 
	 	 	 	 
	14. Cooperation
	 	 	13	 
	 
	 	 	 	 
	15. Code Section 409A
	 	 	13	 
	 
	 	 	 	 
	(a) General 
	 	 	13	 
	 
	 	 	 	 
	(b) Definitional Restrictions 
	 	 	13	 
	 
	 	 	 	 
	(c) Six-Month Delay in Certain Circumstances 
	 	 	13	 
	 
	 	 	 	 
	(d) Treatment of Installment Payments 
	 	 	14	 
	 
	 	 	 	 
	(e) Timing of Release of Claims 
	 	 	14	 
	 
	 	 	 	 
	16. Miscellaneous
	 	 	14	 
	 
	 	 	 	 
	(a) Governing Law 
	 	 	14	 
	 
	 	 	 	 
	(b) Captions 
	 	 	14	 
	 
	 	 	 	 
	(c) Amendments 
	 	 	14	 
	 
	 	 	 	 
	(d) Notices 
	 	 	15	 
	 
	 	 	 	 
	(e) Severability 
	 	 	15	 
	 
	 	 	 	 
	(f) Withholding 
	 	 	15	 
	 
	 	 	 	 
	(g) Waivers 
	 	 	15	 
	 
	 	 	 	 
	(h) Entire Agreement 
	 	 	15	 

 

 

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into this
2nd day of August, 2011, by and between Aurora Diagnostics Holdings, LLC, a Delaware
limited liability company (the “Company”), and Jon L. Hart (“Executive”), to be
effective as of the Effective Date, as defined in Section 1.

BACKGROUND

     WHEREAS, the Company desires to engage Executive as the Chief Executive Officer of the Company
from and after the Effective Date, in accordance with the terms of this Agreement, and Executive is
willing to serve as such in accordance with the terms and conditions of this Agreement.

     NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
set forth herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

     1. Effective Date. The effective date of this Agreement (the “Effective
Date”) shall be September 1, 2011.

     2. Employment. Executive is hereby employed on the Effective Date as the Chief
Executive Officer of the Company. In his capacity as Chief Executive Officer of the Company,
Executive shall have the duties, responsibilities and authority commensurate with such position as
shall be assigned to him by the Board of Managers of the Company (the “Board”). In his
capacity as Chief Executive Officer of the Company, Executive will report directly to the Board.

     3. Employment Period. Executive’s employment, and the term of this Agreement, shall
be for a term beginning on the Effective Date and ending on his termination of employment pursuant
to Section 6 hereof (the “Employment Period”).

     4. Extent of Service. During the Employment Period, and excluding any periods of
vacation and sick leave to which Executive is entitled, Executive agrees to devote his full
attention and time during normal business hours to the business and affairs of the Company and, to
the extent necessary to discharge the responsibilities assigned to Executive hereunder, to use
Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities.
During the Employment Period it shall not be a violation of this Agreement for Executive to (A)
serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill
speaking engagements or teach at educational institutions and (C) manage personal investments, so
long as such activities do not interfere with the performance of Executive’s responsibilities as an
employee of the Company in accordance with this Agreement.

     5. Compensation and Benefits.

          (a) Base Salary. During the Employment Period, the Company will pay to Executive base
salary at the rate of U.S. four hundred and fifty thousand ($450,000) per year (“Base
Salary”), less normal withholdings, payable in approximately equal bi-weekly or other
installments as are or become customary under the Company’s payroll practices for its employees
from time to time. The Board shall review Executive’s Base Salary annually. Such adjusted salary
then shall become Executive’s Base Salary for purposes of this Agreement. The annual

 

 

review of Executive’s salary by the Board
will consider, among other things, Executive’s own performance, and the Company’s performance.

          (b) Incentive, Savings and Retirement Plans. During the Employment Period, Executive
shall be entitled to participate in all incentive, savings and retirement plans, practices,
policies and programs available to senior executive officers of the Company (“Peer
Executives”), and on the same basis as such Peer Executives. Without limiting the foregoing,
the following shall apply:

          (i) during the Employment Period, Executive will be entitled to participate in the
Company’s bonus plan, pursuant to which he will have an opportunity to receive an annual
cash bonus based upon the achievement of performance goals established from year to year by
the Board (such bonus earned at the stated “target” level of achievement being referred to
herein as the “Target Bonus”). Until otherwise changed by the Board, Executive’s
Target Bonus shall be one hundred percent (100%) of his Base Salary; and

          (ii) during the Employment Period, Executive will be eligible for grants, under the
Company’s long-term incentive plan or plans, of options to acquire units of the Company (or
such other awards as the Company makes to Peer Executives), having terms and determined in
the same manner as awards to other Peer Executives. Nothing herein requires the Board to
make grants of options or other awards in any year.

          (c) Welfare Benefit Plans. During the Employment Period, Executive and Executive’s
eligible dependents shall be eligible for participation in, and shall receive all benefits under,
the welfare benefit plans, practices, policies and programs provided by the Company to the extent
available to other Peer Executives.

          (d) Expenses.

          (i) During the Employment Period, Executive shall be entitled to receive prompt
reimbursement for all reasonable expenses incurred by Executive in the course of performing
his duties and responsibilities under this Agreement, in accordance with the policies,
practices and procedures of the Company to the extent available to other Peer Executives
with respect to travel, entertainment and other business expenses.

          (ii) During the Employment Period, Executive shall be entitled to receive prompt
reimbursement from the Company for (i) reasonable and customary direct moving expenses,
(ii) temporary housing expenses for a period not to exceed twelve (12) months, and (iii)
Executive’s expenses incurred in travelling to Boston, Massachusetts, two (2) times per
month, for a period not to exceed twelve (12) months (collectively, the “Relocation
Expenses”), in each case upon submission of evidence, satisfactory to the Company, of
the incurrence of such Relocation Expenses.

Notwithstanding the foregoing, (i) any reimbursements pursuant to this Section 5(d) provided in any
one calendar year shall not affect the amount of such reimbursements provided in any other calendar
year; (ii) the reimbursement of an eligible expense under this Section 5(d) shall be made within
thirty (30) days following Executive’s submission of evidence, satisfactory to the Company, of the
incurrence of such expense, but in no event later than December 31 of the year following the year
in which the expense was incurred; (iii) Executive’s rights to any reimbursements pursuant to this Section 5(d) shall not be subject to liquidation or exchange for

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another benefit; and (iv) any reimbursements pursuant to this Section 5(d) shall be provided in
accordance with the policies, practices and procedures of the Company.

          (e) Vacation. During the Employment Period, Executive shall be entitled to vacation
days in accordance with the applicable vacation policies and practices of the Company to the extent
available to other Peer Executives.

     6. Termination of Employment.

          (a) Death or Retirement. Executive’s employment shall terminate automatically upon
Executive’s death or Retirement during the Employment Period. For purposes of this Agreement,
“Retirement” shall mean retirement that would entitle Executive to normal retirement
benefits under the Company’s then-current retirement plan.

          (b) Disability. If the Company determines in good faith that Executive has become
Disabled (as defined below) during the Employment Period, it may give to Executive written notice
of its intention to terminate Executive’s employment. In such event, Executive’s employment with
the Company shall terminate effective on the thirtieth (30th) day after receipt of such
written notice by Executive (the “Disability Effective Date”), provided, that, within the
thirty (30) days after such receipt, Executive shall not have returned to full-time performance of
Executive’s duties. For purposes of this Agreement, Executive shall be Disabled if either of the
following conditions is met, as determined by the Board in good faith:

          (i) Executive is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of not less than 12 months; or

          (ii) Executive is, by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering employees
of the Company.

          (c) Termination by the Company. The Company may terminate Executive’s employment
during the Employment Period with or without Cause. For purposes of this Agreement, a termination
shall be considered to be for “Cause” if it occurs in conjunction with a determination by
the Board that Executive has:

          (i) been convicted or pled no contest for or been indicted on a felony or a crime
involving dishonestly or fraud, which involves a material matter, with respect to the
Company or any of its respective Affiliates (as defined below) or any of their customers or
suppliers;

          (ii) substantially and repeatedly failed to perform the duties of the office held by
Executive as reasonably directed by the Board;

          (iii) engaged in gross negligence or willful misconduct with respect to the Company or
any of its Affiliates that is materially harmful to the Company or any of its Affiliates;

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          (iv) engaged in conduct tending to bring the Company or any of its Affiliates into
substantial public disgrace or disrepute;

          (v) breached Sections 8 or 9 of this Agreement.

If the Company determines that it has grounds to terminate Executive’s employment for Cause
pursuant to the provisions of clause (ii) of this subsection (c), then it will first deliver to
Executive a written notice setting forth with specificity the occurrence deemed to give rise to a
right to terminate his employment for Cause. Executive will be given an opportunity to be heard
before the Board, and Executive will have fifteen (15) business days after the receipt of such
written notice to correct any such failure. If Executive does not correct such failure within such
15-day period, or having once received such written notice and corrected such failure, Executive at
any time thereafter again so fails, the Company may terminate his employment for Cause immediately.
The Company may terminate Executive’s employment without Cause, or for Cause pursuant to the
provisions of clauses (i), (iii), (iv) or (v) of this subsection (c), immediately. For purposes of
this Section 6(c), “Affiliate” shall mean (i) any corporation, limited liability company,
partnership or other entity of which a majority of the outstanding voting stock or voting power is
beneficially owned directly or indirectly by the Company, or (ii) a corporation, limited liability
company, partnership or other entity which owns or beneficially owns a majority of the outstanding
voting stock or voting power of the Company, or (iii) an entity that directly or through one or
more intermediaries controls, is controlled by or is under common control with, the Company.

     (d) Termination by Executive. Executive’s employment may be terminated by Executive
with or without Good Reason. Executive’s termination without Good Reason shall require thirty (30)
days’ prior written notice to the Company. Executive’s termination for Good Reason must occur
within a period of seventy-five (75) days after the occurrence of an event of Good Reason. For
purposes of this Agreement, “Good Reason” shall mean any of the following, without
Executive’s consent:

          (i) a material diminution in Executive’s Base Salary;

          (ii) a material diminution in Executive’s authority, duties, or responsibilities;

          (iii) a material change in the geographic location at which Executive must perform
services (which, for purposes of this Agreement, means a relocation of more than 25 miles
from Palm Beach Gardens, Florida); or

          (iv) any other action or inaction that constitutes a material breach by the Company of
this Agreement, including, without limitation, any failure by the Company to comply with
and satisfy Section 13(c) of this Agreement.

A termination of employment by Executive for Good Reason shall be effectuated by giving the Company
Notice of Termination pursuant to Section 6(e) within thirty (30) days after the event constituting
Good Reason, setting forth in reasonable detail the specific conduct of the Company that
constitutes Good Reason and the specific provisions of this Agreement
on which Executive relies. The Company shall have forty-five (45) days from the receipt of such notice within which
to correct, rescind or otherwise substantially reverse the occurrence supporting termination for
Good Reason as identified by Executive. If such event has not been cured within such 45-day
period, the termination of employment by Executive for Good Reason shall be effective as of the

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expiration of such 45-day period. If the event of Good Reason is cured within such 45-day period,
the Notice of Termination for Good Reason shall have no effect. Good Reason shall not include
Executive’s death, Disability or Retirement. A termination in accordance with this Section 6(d)
while Executive is eligible for Retirement shall be deemed a termination under this Section 6(d),
rather than for Retirement, for purposes of this Agreement; provided, however, that
a termination in accordance with this Section 6(d) shall not preclude Executive from receiving
retirement benefits under such other plans, programs, practices and policies relating to retirement
benefits, if any, as are applicable to Executive on the Date of Termination. The parties intend,
believe and take the position that a resignation by Executive for Good Reason as defined above
effectively constitutes an involuntary separation from service within the meaning of Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”) and Treas. Reg.
§1.409A-1(n)(2).

          (e) Notice of Termination. Any termination by the Company or Executive shall be
communicated by Notice of Termination to the other party hereto given in accordance with Section
16(d) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a
written notice which (i) indicates the specific termination provision in this Agreement relied
upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive’s employment under the provision so
indicated, and (iii) if the Date of Termination (as defined below) is other than the date of
receipt of such notice, specifies the termination date. The failure by Executive or the Company to
set forth in the Notice of Termination any fact or circumstance which contributes to a showing of
Good Reason or Cause shall not waive any right of Executive or the Company, respectively, hereunder
or preclude Executive or the Company, respectively, from asserting such fact or circumstance in
enforcing Executive’s or the Company’s rights hereunder.

          (f) Date of Termination. “Date of Termination” means (i) if Executive’s
employment is terminated by the Company for Cause, or by Executive for Good Reason, the termination
date as specified in Section 6(c) or (d), as applicable, (ii) if Executive’s employment is
terminated other than as specified in subsection (i) above and other than by reason of death,
Disability or Retirement, the date of receipt of the Notice of Termination or any later date
specified therein within sixty (60) days after receipt of the Notice of Termination, as the case
may be, or (iii) if Executive’s employment is terminated by reason of death, Disability or
Retirement, the Date of Termination shall be the date of death or Retirement of Executive or the
Disability Effective Date, as the case may be.

     7. Obligations of the Company upon Termination.

          (a) Termination by Executive for Good Reason; Termination by the Company Other Than for
Cause or Disability. If, during the Employment Period, the Company shall terminate Executive’s
employment other than for Cause or Disability, or Executive shall terminate his employment for Good
Reason, then Executive shall be entitled to the following, provided, however, that
with respect to the payments described in clause (ii) below, Executive must (a) execute, within
sixty (60) days after the Date of
Termination, a separation agreement containing a release of claims in a form satisfactory to the
Company, and (b) such release shall not have been revoked within such time period, and
provided, further, that any entitlement to payments provided in clause (ii) below
shall immediately cease upon Executive’s violation of any provision of Sections 8 or 9 hereof:

          (i) a lump sum in cash equal to the sum of (A) Executive’s Base Salary through the
Date of Termination to the extent not theretofore paid, (B) any annual

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bonus earned but
unpaid as of the Date of Termination for any previously completed fiscal year, (C)
reimbursement for any unreimbursed business expenses properly incurred by Executive in
accordance with Company policy prior to the Date of Termination, and (D) any accrued
vacation pay to the extent not theretofore paid (the sum of the amounts described in
clauses (A) — (D) shall be hereinafter referred to as the “Accrued Obligations”),
payable on the sixtieth (60th) day following the Date of Termination;

          (ii) severance in an amount equal to one (1) times the sum of (X) Executive’s
then-current Base Salary, and (Y) the average of the annual bonuses earned by Executive, if
any, for the two (2) fiscal years immediately preceding the year in which the Date of
Termination occurs, payable in approximately equal installments (but not less than monthly)
that correspond with the Company’s normal payroll practices over a period of one (1) year,
commencing on the first regular payroll date following the Date of Termination (or such
later date as may be required pursuant to Section 15); and

          (iii) to the extent not theretofore paid or provided, the Company shall timely pay or
provide to Executive any other amounts or benefits required to be paid or provided or which
Executive is eligible to receive under any plan, program, policy or practice or contract or
agreement of the Company and its affiliated companies (such other amounts and benefits
shall be hereinafter referred to as the “Other Benefits”).

          (b) Death, Disability or Retirement. If Executive’s employment is terminated by
reason of Executive’s death, Disability or Retirement (except as provided in Section 6(d)) during
the Employment Period, this Agreement shall terminate without further obligations to Executive or
Executive’s legal representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits. Accrued Obligations shall be
paid to Executive or Executive’s estate or beneficiary, as applicable, in a lump sum in cash within
thirty (30) days after the Date of Termination. With respect to the provision of Other Benefits,
the term Other Benefits as used in this Section 7(b) shall include without limitation, and
Executive or Executive’s estate and/or beneficiaries shall be entitled to receive, benefits under
such plans, programs, practices and policies relating to death, disability or retirement benefits,
if any, as are applicable to Executive on the Date of Termination.

          (c) Cause; Other than for Good Reason. If Executive’s employment shall be terminated
for Cause during the Employment Period, or Executive shall resign other than for Good Reason or
Disability, this Agreement shall terminate without further obligations to Executive, other than for
payment of Accrued Obligations and the timely payment or provision of Other Benefits. Accrued
Obligations shall be paid to Executive in a lump sum in cash within thirty (30) days after the Date
of Termination.

          (d) Expiration of the Employment Period. If Executive’s employment
terminates upon the normal expiration of the Employment Period, this Agreement shall terminate
without further obligations to Executive, other than for payment of Accrued Obligations and the
timely payment or provision of Other Benefits. Accrued Obligations shall be paid to Executive in a
lump sum in cash within thirty (30) days after the Date of Termination.

          (e) Resignations. Termination of Executive’s employment for any reason whatsoever
shall constitute Executive’s resignation as an officer of the Company, its subsidiaries and
affiliates.

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     8. Restrictive Covenants. Executive and the Company understand and agree that the
purpose of the provisions of this Section 8 is to protect the legitimate business interests of the
Company, as more fully described below, and is not intended to eliminate Executive’s
post-employment competition with the Company per se, nor is it intended to impair or infringe upon
Executive’s right to work, earn a living, or acquire and possess property from the fruits of his
labor. Executive hereby acknowledges that the post-employment restrictions set forth in this
Section 8 are reasonable and consistent with the provisions of F.S.A. § 542.335 and that they do
not, and will not, unduly impair his ability to earn a living after the termination of his
employment. Therefore, subject to the limitations of reasonableness imposed by law, Executive
shall be subject to the restrictions set forth in this Section.

          (a) Definitions. The following terms used in this Section 8 shall have the meanings
assigned to them below, which definitions shall apply to both the singular and the plural forms of
such terms:

     “Competitive Services” shall mean, directly or indirectly, providing services
on behalf of any person or entity engaged in the management or provision of anatomic and
clinical pathology services, genomics or molecular lab testing services (whether through
physician practices, laboratories, hospitals, medical or surgical centers or otherwise).

     “Confidential Information” shall mean all proprietary information regarding
Company, its activities, businesses or customers that is not generally disclosed by
practice or authority to persons not employed or otherwise engaged by Company, but that may
not rise to the level of a Trade Secret. “Confidential Information” shall include, but is
not limited to, business plans; operational methods; market studies; marketing plans or
strategies; product development techniques or plans; customer lists and prospective
customer lists; sources of supply; details of customer, supplier and vendor contracts;
current and anticipated customer requirements; past, current and planned research and
development; “know how;” business acquisition plans; and new personnel acquisition plans.
“Confidential Information” shall not include information that has become generally
available to the public by the act of one who has the right to disclose such information
without violating any right or privilege of Company. This definition shall not limit any
definition of “confidential information” or any equivalent term under state or federal law.

     “Person” shall mean any individual or any corporation, partnership, joint
venture, limited liability company, association or other entity or enterprise.

     “Principal or Representative” shall mean a principal, owner, partner,
shareholder, equity holder, joint venturer, investor, member, trustee, director, officer,
manager, employee, agent, representative or consultant.

     “Protected Customers” shall mean any Person to whom Company sold its products
or services or solicited to sell its products or services during the course of Executive’s
employment and with whom Executive had Material Contact. For purposes of this
Agreement, Executive had “Material Contact” with a Protected Customer if (A) he had
business dealings with the Protected Customer on Company’s behalf; (B) he was responsible
for supervising or coordinating the dealings between Company and the Protected Customer; or
(C) he obtained Trade Secrets or Confidential Information about the Protected Customer as a
result of his association with Company.

-7-

 

     “Protected Employees” shall mean then-current employees of Company who were
employed at any time during the course of Executive’s employment and (a) with whom
Executive had a supervisory relationship; (b) with whom Executive worked or communicated on
a regular basis; or (c) about whom Executive obtained Trade Secrets or Confidential
Information as a result of his association with Company.

     “Restricted Period” shall mean the duration of Executive’s employment with
Company and two (2) years from the termination of Executive’s employment for any reason
whatsoever.

     “Restricted Territory” shall mean the United States of America.

     “Restrictive Covenants” means the restrictive covenants contained in this
Section 8.

     “Trade Secret” means all information, without regard to form, regarding the
Company, its activities, businesses or customers, including, but not limited to, technical
or nontechnical data, a formula, a pattern, a compilation, a program, a device, a method, a
technique, a drawing, a process, financial data, financial plans, product plans,
distribution lists or a list of actual or potential customers, advertisers or suppliers,
which is not commonly known by or available to the public and which information: (A)
derives economic value, actual or potential, from not being generally known to, and not
being readily ascertainable by proper means by, other persons who can obtain economic value
from its disclosure or use; and (B) is the subject of efforts that are reasonable under the
circumstances to maintain its secrecy. Without limiting the foregoing, Trade Secret means
any item of confidential information that constitutes a “trade secret” under applicable
common law or statutory law.

          (b) Noncompetition. Executive hereby agrees that during the Restricted Period,
Executive will not, without the prior written consent of Company, directly or indirectly, engage
in, sell or otherwise provide Competitive Services within the Restricted Territory in a capacity
that is the same as or substantially similar to the capacity in which he provided Competitive
Services on behalf of Company; provided, however, that the parties acknowledge and
agree the provisions of this Section 8 shall not be deemed to prohibit the ownership by
Executive of not more than five percent (5%) of any class of securities of any corporation having a
class of securities registered pursuant to the Securities Exchange Act of 1934, as amended.

          (c) Non-Solicitation of Protected Customers. Executive understands and agrees that the
relationship between the Company and each of its Protected Customers constitutes a valuable
asset of the Company and may not be converted to Executive’s own use. Accordingly, Executive
hereby agrees that during the Restricted Period, Executive shall not, without the prior written
consent of the Company, directly or indirectly, on Executive’s own behalf or as a Principal or
Representative of any Person, solicit, divert, or take away, or attempt to solicit, divert or take
away, a Protected Customer for the purpose of providing goods or services the same as or
substantially similar to the goods or services provided or offered by the Company.

          (d) Non-Solicitation of Protected Employees. Executive understands and agrees that
the relationship between the Company and each of its Protected Employees constitutes a valuable
asset of the Company and may not be converted to Executive’s own use. Accordingly, Executive
hereby agrees that during the Restricted Period, Executive shall not, directly or indirectly, on
Executive’s own behalf or as a Principal or Representative of any Person, solicit or

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induce or
attempt to solicit or
induce any Protected Employee to terminate his or her employment with the
Company or to enter into an employment, consulting or similar relationship with any other Person.

          (e) Restriction on Disclosure and Use of Confidential Information and Trade Secrets.
Executive understands and agrees that the Confidential Information and Trade Secrets constitute
valuable assets of the Company, and may not be converted to Executive’s own use. Accordingly,
Executive hereby agrees that Executive shall not, directly or indirectly, at any time during the
Restricted Period, reveal, divulge, or disclose to any Person not expressly authorized by the
Company any Confidential Information, and Executive shall not, directly or indirectly, at any time
during the Restricted Period, use or make use of any Confidential Information in connection with
any business activity other than that of the Company. Throughout the period during which the
information remains a Trade Secret under the terms of this Agreement and/or applicable law,
Executive shall not, directly or indirectly, transmit or disclose any Trade Secret to any Person,
and shall not make use of any such Trade Secret, directly or indirectly, for himself or herself or
for others, without the prior written consent of the Company. The parties acknowledge and agree
that this Agreement is not intended to, and does not, alter either the Company’s rights or
Executive’s obligations under any state or federal statutory or common law regarding trade secrets
and unfair trade practices.

     Anything herein to the contrary notwithstanding, Executive shall not be restricted from
disclosing or using Confidential Information or Trade Secrets that are required to be disclosed by
law, court order or other legal process; provided, however, that in the event
disclosure is required by law, Executive shall provide the Company with prompt written notice of
such requirement so that the Company may seek an appropriate protective order prior to any such
required disclosure by Executive.

          (f) Enforcement of Restrictive Covenants.

          (i) Rights and Remedies Upon Breach. In the event Executive breaches, or
threatens to commit a breach of, any of the provisions of the Restrictive Covenants, the
Company shall have the following rights and remedies, which shall be independent of any
others and severally enforceable, and shall be in addition to, and not in lieu of, any
other rights and remedies available to the Company at law or in equity:

               (A) the right and remedy to enjoin, preliminarily and permanently, and without
the necessity of proving actual damage or posting any bond, Executive from
violating or threatening to violate the Restrictive Covenants and to have the
Restrictive Covenants specifically enforced by any court of competent jurisdiction,
it being agreed that any breach or threatened breach of the Restrictive Covenants
would cause irreparable injury to the Company and that money damages would not
provide an adequate remedy to the Company; and

               (B) the right and remedy to require Executive to account for and pay over to
the Company all compensation, profits, monies, accruals, increments or other
benefits derived or received by Executive as the result of any transactions
constituting a breach of the Restrictive Covenants; and

               (C) in the event of an actual breach of any of the provisions of the
Restrictive Covenants, the right and remedy to require Executive to pay the

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reasonable attorneys’ fees incurred by the Company in enforcing the Restrictive
Covenants.

          (ii) Severability. The parties acknowledge and agree that the Restrictive
Covenants set forth in this Agreement shall be considered and construed as separate and
independent covenants. Should any part or provision of any Restrictive Covenant be held
invalid, void or unenforceable in any court of competent jurisdiction, such invalidity,
voidness or unenforceability shall not render invalid, void or unenforceable any other
Restrictive Covenant or any other part or provision of this Agreement.

          (iii) Reformation. If any portion of any Restrictive Covenant is found to be
invalid or unenforceable by a court of competent jurisdiction for any reason, the invalid
or unreasonable term shall be redefined, or a new enforceable term provided, such that the
intent of the Company and Executive in agreeing to the provisions of this Agreement will
not be impaired and the provision in question shall be enforceable to the fullest extent of
the applicable laws.

     9. Proprietary Rights.

          (a) Works Made for Hire. Executive acknowledges and agrees that during the course of
his employment, Executive may from time to time create for the Company copyrightable or patentable
works. Such works may consist of manuals, pamphlets, instructional materials, computer programs,
software, software integration techniques, software codes and data, technical data, photographs,
drawings, logos, designs, artwork, derivatives, modifications or improvements of prior works
created by Executive, or other copyrightable or patentable material, or portions thereof, and may
be created within or without the Company’s facilities and before, during or after normal business
hours. All such works related to or useful in the business of the Company are specifically
intended to be works made for hire by Executive, and Executive shall cooperate with the Company in
the protection of the Company’s copyrights or patents in such works and, to the extent deemed
desirable by the Company, the registration of such copyrights or patents.

          (b) Invention Assignment.

          (i) Definition of Inventions. For purposes of this Agreement, “Inventions”
means any and all ideas, inventions, formulas, source codes, object codes, techniques,
processes, concepts, systems, programs, software, software integration techniques, hardware
systems, schematics, flow charts, computer data bases, client lists, trademarks, service
marks, brand names, trade names, compilations, documents, data, notes, designs, drawings,
technical data or training materials, including improvements thereto or derivatives
therefrom, whether or not patentable, and whether or not subject to copyright or trademark
or trade secret protection, conceived, developed, produced or otherwise reduced to practice
by Executive, or by others working with Executive or under his direction, during the period
of his employment with the Company.

          (ii) Assignment of Inventions. Executive agrees that any and all Inventions
are the sole property of the Company. Executive hereby agrees that he shall promptly
disclose in writing to the Company the existence of any Inventions. Executive further
assigns and agrees to assign all of his rights, title and interest in Inventions to the
Company or its designee. Executive shall not be entitled to use any Inventions for his

-10-

 

own
benefit or the benefit of anyone except the Company without written permission from the
Company and then only subject to the terms of such permission. Executive further agrees
that he will communicate to the Company any facts known to him and testify in any legal
proceedings, sign all lawful papers, make all rightful oaths, execute all divisionals,
continuations, continuations-in-part, foreign counterparts, or reissue applications, all
assignments, all registration applications and all other instruments or papers to carry
into full force and effect, the assignment, transfer and conveyance hereby made or to be
made and generally do everything possible for title to the Inventions to be clearly and
exclusively held by the Company. Executive agrees that he will not oppose or object in any
way to applications for registration of Inventions by the Company. Executive agrees to
exercise reasonable care to avoid making the Inventions available to any third parties and
shall be liable to the Company for all damages and expenses, including reasonable
attorneys’ fees, if the Inventions are made available to third parties by him without the
express written consent of the Company.

          (iii) Exceptions to Assignment Obligations. Executive and the Company
acknowledge and agree that nothing contained herein shall require Executive to assign to
the Company any Invention for which no equipment, supplies, facilities, Confidential
Information or Trade Secrets of the Company was used and which was developed entirely on
Executive’s own time, unless (a) the Invention relates to the business of the
Company or to the Company’s actual or demonstrably anticipated research or development, or
(b) the Invention results from any work performed by Executive on behalf of the Company.

     10. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit
Executive’s continuing or future participation in any employee benefit plan, program, policy or
practice provided by the Company or its affiliated companies and for which Executive may qualify,
except as specifically provided herein. Amounts that are vested benefits or which Executive is
otherwise entitled to receive under any plan, policy, practice or program of the Company or any of
its affiliated companies at or subsequent to the Date of Termination shall be payable in accordance
with such plan, policy, practice or program except as explicitly modified by this Agreement.

     11. Full Settlement; No Mitigation. 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 which the Company may have against Executive or others. In
no event shall Executive be obligated to seek other employment or take any other action by way of
mitigation of the amounts payable to Executive under any of the provisions of this Agreement and
such amounts shall not be reduced whether or not Executive obtains other employment.

     12. Mandatory Reduction of Payments in Certain Events.

          (a) Anything in this Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment or distribution by the Company to or for the benefit of Executive
(whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the
Code (the “Excise Tax”), then, prior to the making of any Payment to Executive, a
calculation shall be made comparing (i) the net benefit to Executive of the Payment after payment
of the Excise Tax, to (ii) the net benefit to Executive if the Payment had been limited to the
extent necessary to avoid being subject to the Excise Tax. If the amount calculated

-11-

 

under (i)
above is less than the amount calculated under (ii) above, then the Payment shall be limited to the
extent necessary to avoid being subject to the Excise Tax (the “Reduced Amount”). The
reduction of the Payments due hereunder, if applicable, shall be made by first reducing cash
Payments and then, to the extent necessary, reducing those Payments having the next highest ratio
of Parachute Value to actual present value of such Payments as of the date of the change of
control, as determined by the Determination Firm (as defined in Section 12(b) below). For purposes
of this Section 12, present value shall be determined in accordance with Section 280G(d)(4) of the
Code. For purposes of this Section 12, the “Parachute Value” of a Payment means the
present value as of the date of the change of control of the portion of such Payment that
constitutes a “parachute payment” under Section 280G(b)(2) of the Code, as determined by the
Determination Firm for purposes of determining whether and to what extent the Excise Tax will apply
to such Payment.

          (b) The determination of whether an Excise Tax would be imposed, the amount of such Excise
Tax, and the calculation of the amounts referred to Section 12(a)(i) and (ii) above shall be made
by an independent, nationally recognized accounting firm or compensation consulting firm mutually
acceptable to the Company and Executive (the “Determination Firm”) which shall provide
detailed supporting calculations. Any determination by the Determination Firm shall be binding
upon the Company and Executive. As a result of the uncertainty in the application of Section 4999
of the Code at the time of the initial determination by the Determination Firm hereunder, it is
possible that Payments which Executive was entitled to, but did not receive pursuant to Section
12(a), could have been made without the imposition of the Excise Tax (“Underpayment”). In
such event, the Determination Firm shall determine the amount of the Underpayment that has occurred
and any such Underpayment shall be promptly paid by the Company to or for the benefit of Executive,
but no later than March 15 of the year after the year in which the Underpayment is determined to
exist, which is when the legally binding right to such Underpayment arises.

          (c) In the event that the provisions of Code Section 280G and 4999 or any successor provisions
are repealed without succession, this Section 12 shall be of no further force or effect.

     13. Successors.

          (a) This Agreement is personal to Executive and without the prior written consent of the
Company shall not be assignable by Executive otherwise than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by Executive’s legal
representatives.

          (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

          (c) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. As
used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor
to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

-12-

 

     14. Cooperation. Executive shall provide Executive’s reasonable cooperation in
connection with any action or proceeding (or any appeal from any action or proceeding) which
relates to events occurring during Executive’s employment hereunder. This provision shall survive
any termination of this Agreement. The Company shall reimburse Executive for any reasonable
out-of-pocket expenses incurred in connection with Executive’s performance of obligations under
this Section 14 at the request of the Company. If Executive is entitled to be paid or reimbursed
for any expenses under this Section 14, the amount reimbursable in any one calendar year shall not
affect the amount reimbursable in any other calendar year, and the reimbursement of an eligible
expense must be made no later than December 31 of the year after the year in which the expense was
incurred. Executive’s obligations under this Section 14, and Executive’s rights to payment or
reimbursement of expenses pursuant to this Section 14, shall expire at the end of ten years after
the Date of Termination and such rights shall not be subject to liquidation or exchange for another
benefit.

     15. Code Section 409A.

          (a) General. This Agreement shall be interpreted and administered in a manner so that
any amount or benefit payable hereunder shall be paid or provided in a manner that is either exempt
from or compliant with the requirements Section 409A of the Code and applicable Internal Revenue
Service guidance and Treasury Regulations issued thereunder (and any applicable transition relief
under Section 409A of the Code). Nevertheless, the tax treatment of the benefits provided under the
Agreement is not warranted or guaranteed. Neither the Company nor its directors, officers,
employees or advisers shall be held liable for any taxes, interest, penalties or other monetary
amounts owed by Executive as a result of the application of Section 409A of the Code.

          (b) Definitional Restrictions. Notwithstanding anything in this Agreement to the
contrary, to the extent that any amount or benefit that would constitute non-exempt “deferred
compensation” for purposes of Section 409A of the Code (“Non-Exempt Deferred Compensation”)
would otherwise be payable or distributable hereunder by reason of Executive’s termination of
employment, such Non-Exempt Deferred Compensation will not be payable or distributable to Executive
by reason of such circumstance unless the circumstances giving rise to such termination of
employment meet any description or definition of “separation from service” in Section 409A of the
Code and applicable regulations (without giving effect to any elective provisions that may be
available under such
definition). This provision does not prohibit the vesting of any Non-Exempt Deferred
Compensation upon a termination of employment, however defined. If this provision prevents the
payment or distribution of any Non-Exempt Deferred Compensation, such payment or distribution shall
be made on the date, if any, on which an event occurs that constitutes a Section 409A-compliant
“separation from service” or such later date as may be required by subsection (c) below. If this
provision prevents the application of a different form of payment of any amount or benefit, such
payment shall be made in the same form as would have applied absent such designated event or
circumstance.

          (c) Six-Month Delay in Certain Circumstances. Notwithstanding anything in this
Agreement to the contrary, if any amount or benefit that would constitute Non-Exempt Deferred
Compensation would otherwise be payable or distributable under this Agreement by reason of
Executive’s separation from service during a period in which he is a Specified Employee (as defined
below), then, subject to any permissible acceleration of payment by the Company under Treas. Reg.
Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or
(j)(4)(vi) (payment of employment taxes):

-13-

 

          (i) the amount of such Non-Exempt Deferred Compensation that would otherwise be
payable during the six-month period immediately following Executive’s separation from
service will be accumulated through and paid or provided on the first day of the seventh
month following Executive’s separation from service (or, if Executive dies during such
period, within thirty (30) days after Executive’s death) (in either case, the “Required
Delay Period”); and

          (ii) the normal payment or distribution schedule for any remaining payments or
distributions will resume at the end of the Required Delay Period.

For purposes of this Agreement, the term “Specified Employee” has the meaning given such
term in Code Section 409A and the final regulations thereunder; provided, however,
that the Company’s Specified Employees and its application of the six-month delay rule of Code
Section 409A(a)(2)(B)(i) shall be determined in accordance with rules adopted by the Board or a
committee thereof, which shall be applied consistently with respect to all nonqualified deferred
compensation arrangements of the Company, including this Agreement.

          (d) Treatment of Installment Payments. Each payment of termination benefits under
Section 7(a) of this Agreement shall be considered a separate payment, as described in Treas. Reg.
Section 1.409A-2(b)(2), for purposes of Section 409A of the Code.

          (e) Timing of Release of Claims. Whenever in this Agreement a payment or benefit is
conditioned on Executive’s execution and non-revocation of a release of claims, such release must
be executed and all revocation periods shall have expired within sixty (60) days after the Date of
Termination; failing which such payment or benefit shall be forfeited. If such payment or benefit
constitutes Non-Exempt Deferred Compensation, then, subject to subsection (c) above, such payment
or benefit (including any installment payments) that would have otherwise been payable during such
60-day period shall be accumulated and paid on the sixtieth (60th) day after the Date of
Termination provided such release shall have been executed and such revocation periods shall have
expired. If such payment or benefit is exempt from Section 409A of the Code, the Company may elect
to make or commence payment at any time during such 60-day period.

     16. Miscellaneous.

          (a) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Florida, without reference to principles of conflict of laws.

          (b) Captions. The captions of this Agreement are not part of the provisions hereof and
shall have no force or effect.

          (c) Amendments. This Agreement may not be amended or modified otherwise than-by a
written agreement executed by the parties hereto or their respective successors and legal
representatives.

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          (d) Notices. All notices and other communications hereunder shall be in writing and
shall be given by hand delivery to the other party or by registered or certified mail, return
receipt requested, postage prepaid, addressed as follows:

	 	 	 

	If to Executive:

	 	Jon L. Hart

Most recent address on file with the Company
	 
	 	 
	If to the Company:

	 	Aurora Diagnostics Holdings, LLC

11025 RCA Center Drive

Suite 300

Palm Beach Gardens, FL 33410

Attention: Secretary

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.

          (e) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

          (f) Withholding. The Company may withhold from any amounts payable under this
Agreement such Federal, state, local or foreign taxes as shall be required to be withheld pursuant
to any applicable law or regulation.

          (g) Waivers. Executive’s or the Company’s failure to insist upon strict compliance
with any provision of this Agreement or the failure to assert any right Executive or the Company
may have hereunder, shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

          (h) Entire Agreement. Except as provided herein, this Agreement contains the entire
agreement between the Company and Executive with respect to the subject matter hereof and, from and
after the Effective Date, this Agreement shall supersede any other agreement between the parties
with respect to the subject matter hereof.

***************

[Signatures on following page]

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     IN WITNESS WHEREOF, Executive has hereunto set Executive’s hand and, pursuant to the
authorization from the Board, the Company has caused these presents to be executed in its name on
its behalf, all as of the day and year first above written.

	 	 	 	 	 
	 	 	 
	 	/s/ Jon L. Hart
 	 
	 	Jon L. Hart 	 
	 	 	 
	 
	 	AURORA DIAGNOSTICS HOLDINGS, INC.

 	 
	 	By:  	/s/ James C. New
 	 
	 	 	James C. New 	 
	 	 	 	 

-16-exv10w11

Exhibit 10.11

Execution Version

AURORA DIAGNOSTICS HOLDINGS, LLC

2011 EQUITY INCENTIVE PLAN

ARTICLE 1

PURPOSE

     1.1 GENERAL. The purpose of the Aurora Diagnostics Holdings, LLC 2011 Equity
Incentive Plan (as amended from time to time, the “Plan”) is to promote the success, and enhance
the value, of Aurora Diagnostics Holdings, LLC (together with any corporate successor, the
“Company”), by linking the personal interests of its employees, officers, managers, directors,
consultants and advisors to those of the Company’s Members and by providing such persons with an
incentive for outstanding performance. The Plan is further intended to provide flexibility to the
Company in its ability to motivate, attract, and retain the services of employees, officers,
managers, directors, consultants and advisors upon whose judgment, interest, and special effort the
successful conduct of the Company’s operation is largely dependent. Accordingly, the Plan permits
the grant of Unit Options from time to time to selected employees, officers, managers, directors,
consultants and advisors.

ARTICLE 2

EFFECTIVE DATE

     2.1 EFFECTIVE DATE. The Plan was originally approved by the Board on July 6, 2011
(the “Effective Date”).

ARTICLE 3

DEFINITIONS

     3.1 DEFINITIONS. When a word or phrase appears in this Plan with the initial letter
capitalized, and the word or phrase does not commence a sentence, the word or phrase shall
generally be given the meaning ascribed to it in this Section or in Section 1.1 unless a clearly
different meaning is required by the context. The following words and phrases shall have the
following meanings:

	 	(a)	 	“Affiliate” means (i) any Subsidiary or Parent, or (ii) an entity that directly
or through one or more intermediaries controls, is controlled by or is under common
control with, the Company, as determined by the Board.
	 
	 	(b)	 	“Award” means any Option granted to a Participant under the Plan.
	 
	 	(c)	 	“Award Certificate” means any written agreement, contract, or other instrument
or document evidencing an Award.
	 
	 	(d)	 	“Board” means the Board of Managers of the Company and shall be deemed to refer
to any Committee to whom the Board has delegated its authority pursuant to Section 4.4.

 

 

	 	(e)	 	“Cause” as a reason for a Participant’s termination of employment shall have
the meaning assigned such term in the employment, severance or similar agreement, if
any, between such Participant and the Company or an Affiliate, provided, however that
if there is no such employment, severance or similar agreement in which such term is
defined, “Cause” shall have the meaning defined in the applicable Award Certificate or,
if not defined in the applicable Award Certificate, “Cause” shall mean the Participant
has (i) been convicted or pled guilty or no contest for or been indicted on a felony or
a crime involving moral turpitude; (ii) committed any other substantial act or omission
involving disloyalty, dishonesty or fraud, with respect to the Company or an Affiliate
or their respective business or operations; (iii) substantially and repeatedly failed
to perform the duties of the position held by Participant as reasonably directed by the
Board or Participant’s immediate supervisor; (iv) engaged in breach of fiduciary duty,
gross negligence or willful misconduct with respect to the Company or an Affiliate that
is harmful to the Company or an Affiliate; (v) engaged in conduct tending to bring the
Company or an Affiliate into substantial public disgrace or disrepute; (vi) engaged in
an act of aiding or abetting a competitor of the
Company or its Affiliate to the material disadvantage or detriment of the Company or
its Affiliate; (vii) materially failed to observe policies or standards approved by
the Board regarding employment practices, nondiscrimination or sexual harassment as
the Board may address in writing from time to time; or (viii) materially breached
any Award Certificate or such Participant’s written employment, management,
consulting or advisory agreement, if any, with the Company or its Affiliate or other
agreement under which such Participant provides services (including service as a
manager or consultant) to the Company or its Affiliate that results in the
termination of such agreement for cause or default as defined therein.
	 
	 	(f)	 	“Code” means the Internal Revenue Code of 1986, as amended from time to time.
	 
	 	(g)	 	“Company” means Aurora Diagnostics Holdings, LLC, a Delaware limited liability
company, and shall include any successor corporation resulting from a Corporate
Conversion.
	 
	 	(h)	 	“Continuous Service” means the absence of any interruption or termination of
service as an employee, officer, manager, director, consultant or advisor of the
Company or any Affiliate, as applicable. Continuous Service shall not be considered
interrupted in the following cases: (i) a Participant transfers employment between the
Company and an Affiliate or between Affiliates, (ii) in the discretion of the Board as
specified at or prior to such occurrence, in the case of a spin-off, sale or
disposition of the Participant’s employer from the Company or any Affiliate, or (iii)
in the discretion of the Board as specified in writing at or prior to the commencement
of such occurrence, any leave of absence (whether for military, government or other
service or otherwise).

- 2 -

 

	 	(i)	 	“Corporate Conversion” shall have the meaning assigned to such term in the
Operating Agreement.
	 
	 	(j)	 	“Disability” of a Participant means that the Participant (i) is unable to
engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months; or (ii) is, by
reason of any medically determinable physical or mental impairment that can be expected
to result in death or can be expected to last for a continuous period of not less than
12 months, receiving income replacement benefits for a period of not less than three
months under an accident and health plan covering employees of the Company.
	 
	 	(k)	 	“Effective Date” has the meaning assigned such term in Section 2.1.
	 
	 	(l)	 	“Eligible Participant” means an employee, officers, manager, director,
consultant or advisor of the Company or any Affiliate.
	 
	 	(m)	 	“Fair Market Value,” on any date, means the value of a Unit determined by a
majority of the disinterested members of the Board or, if there are no such
disinterested member or such disinterested members are unable or unwilling to act, a
majority of the Board or a designee thereof using the reasonable application of such
reasonable valuation method as the Board determines in good faith and in accordance
with Code Section 409A.
	 
	 	(n)	 	“Good Reason” (or a similar term denoting constructive termination) has the
meaning, if any, assigned such term in the employment, consulting, severance or similar
agreement, if any, between a Participant and the Company or an Affiliate; provided,
however, that if there is no such employment, consulting, severance or similar
agreement in which such term is defined, “Good Reason” shall have the meaning, if any,
given such term in the applicable Award Certificate. If not defined in either such
document, the term “Good Reason” as used herein shall not apply to a particular Award.
	 
	 	(o)	 	“Members” means, collectively, each of the parties that executes the Operating
Agreement as a Member, and each of the parties who may hereafter become Members.
	 
	 	(p)	 	“Operating Agreement” means the Second Amended and Restated Limited Liability
Company Agreement of Aurora Diagnostics Holdings, LLC, dated as of July 6, 2011.
	 
	 	(q)	 	“Option” means a right granted to a Participant under Article 7 of the Plan to
purchase Units at a specified price during specified time periods.

- 3 -

 

	 	(r)	 	“Parent” means any corporation, limited liability company, partnership or other
entity which owns or beneficially owns a majority of the outstanding voting Units or
voting power of the Company.
	 
	 	(s)	 	“Participant” means a person who, as an employee, officer, manager, director,
consultant or advisor of the Company or any Affiliate, has been granted an Award under
the Plan.
	 
	 	(t)	 	“Plan” has the meaning assigned such term in Section 1.1.
	 
	 	(u)	 	“Public Offering” shall have the meaning assigned to such term in the Operating
Agreement.
	 
	 	(v)	 	“Sale of Holdings LLC” shall have the meaning assigned to such term in the
Operating Agreement.
	 
	 	(w)	 	“Sale of the Company” shall have the meaning assigned to such term in the
Operating Agreement.
	 
	 	(x)	 	“Subsidiary” means any corporation, limited liability company, partnership or
other entity of which a majority of the outstanding voting stock or voting power is
beneficially owned directly or indirectly by the Company or of which the Company
directly or indirectly serves or has the right to serve as manager, sole member or
designating party for a majority of the directors or managers.
	 
	 	(y)	 	“Unit” means a Common Unit of the Company as defined in the Operating
Agreement, and such other securities of the Company as may be substituted for a Common
Unit pursuant to Article 9.
	 
	 	(z)	 	“1933 Act” means the Securities Act of 1933, as amended from time to time.

ARTICLE 4

ADMINISTRATION

     4.1 ADMINISTRATION BY BOARD. The Plan shall be administered by the Board.

     4.2. ACTION AND INTERPRETATIONS BY THE BOARD. For purposes of administering the Plan,
the Board may from time to time adopt and rescind rules, regulations, guidelines and procedures for
carrying out the provisions and purposes of the Plan and make such other determinations, not
inconsistent with the Plan, as the Board may deem appropriate. The Board’s interpretation of the
Plan, any Awards granted under the Plan, any Award Certificate and all decisions and determinations
by the Board with respect to the Plan are final, binding, and conclusive on all parties. Each
member of the Board is entitled to, in good faith, rely or act upon any report or other information
furnished to that member by any officer or other employee of the Company or any Affiliate, the
Company’s independent certified public accountants, Company counsel or any executive compensation
consultant or other professional

- 4 -

 

retained by the Company to assist in the administration of the
Plan. No member of the Board and no officer of the Company or any Affiliate shall be liable for
any action taken or omitted to be taken by such member, by any other member of the Board or by any
officer of the Company (in such member’s or officer’s capacity as such, and not in their capacity
as a Participant) in connection with the performance of duties or the exercise of rights under the
Plan, except for such person’s own willful misconduct or as expressly provided by statute.

     4.3 AUTHORITY OF BOARD. The Board shall have such powers and authorities related to
the administration of the Plan as are consistent with the Operating Agreement and applicable law.
Without limiting the foregoing, the Board shall have the exclusive power, authority and discretion
to:

	 	(a)	 	Grant and issue Awards;
	 
	 	(b)	 	Designate Participants;
	 
	 	(c)	 	Determine the number of Awards to be granted to each Participant;
	 
	 	(d)	 	Determine the terms and conditions of any Award granted under the Plan;
	 
	 	(e)	 	Accelerate the vesting or lapse of restrictions of any outstanding Award (which
may be done on a Participant by Participant and Award by Award basis, such that
different Participants and different Awards of the same Participant are treated
differently), based in each case on such considerations as the Board in its sole
discretion determines;
	 
	 	(f)	 	Determine whether, to what extent, and under what circumstances an Award may be
settled in, or the exercise of an Award may be paid in, cash, Units, or other property,
or an Award may be canceled, forfeited, or surrendered;
	 
	 	(g)	 	Decide all other matters that must be determined in connection with an Award;
	 
	 	(h)	 	Establish, adopt, revise, waive, suspend or rescind any rules and regulations
as it may deem necessary or advisable to administer the Plan or to correct any defect
or omission or reconcile any inconsistency with the Plan or any Award;
	 
	 	(i)	 	Appoint such agents as the Board may deem necessary or advisable to administer
the Plan;
	 
	 	(j)	 	Make all other decisions and determinations that may be required under the Plan
or as the Board deems necessary or advisable to administer the Plan; and
	 
	 	(k)	 	Amend the Plan or any Award Certificate as provided herein.

     4.4 DELEGATION TO COMMITTEE. The Board may designate any committee comprising two or
more members of the Board, who may be appointed by the Board from time

- 5 -

 

to time and removed by the
Board from time to time, to exercise all power and authority of the Board under this Plan.
Notwithstanding the foregoing, in all circumstances the full Board shall exercise all power and
authority under this Plan for purposes of Awards to non-employee directors.

     4.5 EVIDENCE OF GRANT. All Awards shall be evidenced by a written Award Certificate
between the Company and the Participant. The Award Certificate shall include such provisions, not
inconsistent with the Plan, as may be specified by the Board.

ARTICLE 5

UNITS SUBJECT TO THE PLAN

     5.1 NUMBER OF UNITS. Subject to adjustment as provided in Section 9.1, the aggregate
number of Units reserved and available for issuance pursuant to Awards granted under the Plan shall
be 1,331,130. Both Units actually issued and Units issuable upon exercise of any outstanding
Options shall be charged against the Units authorized for issuance under the Plan.

     5.2 LAPSED AWARDS.

	 	(a)	 	To the extent that an Award is canceled, terminates, expires, is forfeited or
lapses for any reason, any unissued Units subject to the Award will again be available
for the grant of Awards under the Plan.
	 
	 	(b)	 	To the extent that, in connection with any exercise of all or part of an Award,
the full number of Units issuable under exercised Options is not issued for any reason
(including by reason of the
exercised Options being settled in cash or the withholding of Units to satisfy the
exercise price or minimum tax withholding requirements), those Units issuable under
exercised Options but not actually issued upon such exercise shall be disregarded
for purposes of determining the number of Units remaining available for issuance
pursuant to Awards granted under the Plan.
	 
	 	(c)	 	To the extent that any Units subject to an Award are actually issued but
subsequently forfeited or repurchased by the Company for the cost paid therefor
(including upon exercise of an Award) or a lesser amount, such Units will again
available for issuance pursuant to Awards granted under the Plan. For the avoidance of
doubt, no Units or Awards that are repurchased by the Company for an amount greater
than the cost paid therefor (including upon exercise of an Award) shall again be
available for grant under the Plan.

ARTICLE 6

ELIGIBILITY

     6.1 GENERAL. Awards may be granted only to individuals who are employees, officers,
managers, directors, consultants or advisors of the Company or an Affiliate.

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ARTICLE 7

UNIT OPTIONS

     7.1 GENERAL. The Board is authorized to grant Options to Participants on the
following terms and conditions:

	 	(a)	 	EXERCISE PRICE. The exercise price per Unit under an Option shall be
determined by the Board but shall not be less than the Fair Market Value per Unit on
the date of grant.
	 
	 	(b)	 	TIME AND CONDITIONS OF EXERCISE. The Board shall determine the time or
times at which each Option may be exercised in whole or in part. The Board also shall
determine the performance, vesting, or other conditions, if any, that must be satisfied
before all or part of an Option may be exercised. The Board may waive any exercise
provisions at any time in whole or in part based upon factors as the Board may
determine in its sole discretion so that any or all Options become exercisable at an
earlier date.
	 
	 	(c)	 	PAYMENT. The Board shall determine the methods by which the exercise
price of an Option must be paid, the form of payment, including, without limitation,
cash, Units, or other property (including cashless or net exercise arrangements), and
the methods by which Units shall be delivered or deemed to be delivered to
Participants.
	 
	 	(d)	 	TERM OF OPTION. The term of each Option shall be for the period as
determined by the Board but shall not be longer than ten years after its date of
issuance.
	 
	 	(e)	 	NO DEFERRAL FEATURE. No Option shall provide for any feature for the
deferral of compensation other than the deferral of recognition of income until the
exercise or disposition of the Option.

     7.2 NONQUALIFIED STOCK OPTIONS. Options issued under the Plan shall be deemed to be
nonqualified stock options and are not intended to be incentive stock options within the meaning of
Code Section 422.

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ARTICLE 8

PROVISIONS APPLICABLE TO AWARDS

     8.1 EXCHANGE PROVISIONS. The Board may at any time offer to exchange or buy out any
previously granted Award for a payment in cash, Units, or another Award (subject to Sections 10.1
and 10.2), based on the terms and conditions the Board determines and communicates to the
Participant at the time the offer is made, and after taking into account the tax, securities and
accounting effects of such an exchange.

     8.2 LIMITS ON TRANSFER. Each Award and each right under any Award shall be
exercisable only by the Participant during the Participant’s lifetime. No right or interest of a
Participant in any Award may be pledged, encumbered, or hypothecated to or in favor of any party
other than the Company or an Affiliate, or shall be subject to any lien, obligation, or liability
of such Participant to any other party other than the Company or an Affiliate. No Award shall be
assignable or transferable by a Participant other than by will or the laws of descent and
distribution; provided, however, that the Board may (but need not) permit other transfers where the
Board provides prior written consent after concluding that such transferability does not result in
accelerated taxation and is otherwise appropriate and desirable, taking into account any factors
deemed relevant, including without limitation, state or federal tax or securities laws applicable
to transferable Options. Any assignment, transfer, pledge, encumbrance or hypothecation of any
Award not permitted by this Section 8.2 shall, automatically and without further action by any
person or entity, result in the immediate forfeiture and cancellation of such Award without
consideration.

     8.3 BENEFICIARIES. Notwithstanding Section 8.2, a Participant may, in the manner
determined by the Board, designate a beneficiary to exercise the rights of the Participant and to
receive any distribution with respect to an Award upon the Participant’s death. A beneficiary,
legal guardian, legal representative, or other person claiming any rights under the Plan is subject
to all terms and conditions of the Plan and any Award Certificate applicable to the Participant,
except to the extent the Plan and Award Certificate otherwise provide, and to any additional
restrictions deemed necessary or appropriate by the Board. If no beneficiary has been designated
or survives the Participant, payment shall be made to the Participant’s estate. Subject to the
foregoing, a beneficiary designation may be changed or revoked by a Participant at any time
provided the change or revocation is filed with the Board and otherwise designated in the manner
determined by the Board.

     8.4 UNIT CERTIFICATES. All Unit certificates delivered under the Plan are subject to
any stop-transfer orders and other restrictions as the Board deems necessary or advisable to comply
with federal or state securities laws, rules and regulations. The Board may place legends on any
Unit certificate to reference restrictions applicable to the Units.

     8.5 ACCELERATION OF VESTING. The Board may in its sole discretion at any time
determine that all or a portion of a Participant’s Awards shall become fully or partially
exercisable, and/or that all or a part of the restrictions on all or a portion of the outstanding
Awards shall lapse, in each case, as of such date as the Board may, in its sole discretion,
declare.

- 8 -

 

The Board may discriminate among Participants and among Awards granted to a Participant
in exercising its discretion pursuant to this Section 8.5.

     8.6 EFFECT OF ACCELERATION. If an Award is accelerated under Section 8.5, the Board
may, in its sole discretion, provide (i) that the Award will expire after a designated period of
time after such acceleration to the extent not then exercised, (ii) that the Award will be assumed
by another party to a transaction giving rise to the acceleration or otherwise be equitably
converted or substituted in connection with such transaction, (iii) that the Award may be settled
by payment in cash, cash equivalents or securities equal in value to the excess of the Fair Market
Value of the underlying Units, as of a specified date associated with the transaction, over the
exercise price of the Award, or (iv) any combination of the foregoing. The Board’s determination
need not be uniform and may be different for different Participants, whether or not such
Participants are similarly situated, or different Awards granted to a Participant.

     8.7 OPERATING AGREEMENT/STOCKHOLDERS AGREEMENT JOINDER. Upon exercise of any Option,
the holder thereof shall execute and deliver to the Company a counterpart signature page or joinder
(in form satisfactory to the Company) to the Operating Agreement or to any stockholders or similar
agreement designated by the Company.

     8.8 LOCK-UP AGREEMENT. No holder of any Option or Units issued upon exercise of an
Option shall effect any public sale or distribution (including sales pursuant to Rule 144
promulgated pursuant to the 1933 Act) of, or otherwise sell, make any short sale of, hedge with,
loan, hypothecate, pledge, grant any option for the purchase of, or otherwise dispose or transfer
for value or otherwise agree to engage in any of the foregoing transactions with respect to, any
Units issued upon exercise of Options issued pursuant to the Plan during the seven (7) days prior
to and the 180 days after the effective date of any underwritten public offering of securities of
the Company (such period, the “Holdback Period”), except as part of such underwritten
public offering or as otherwise permitted by the Board. If (i) the Company issues an earnings
release or material news or a material event relating to the Company occurs during the last
seventeen (17) days of the Holdback Period or (ii) prior to the expiration of the Holdback Period,
the Company announces that it will release earnings results during the sixteen (16) day period
beginning upon the expiration of such period, then to the extent necessary for a managing or
co-managing underwriter of a registered offering required hereunder to comply with NASD Rule
2711(f)(4), the Holdback Period will be extended until eighteen (18) days after the earnings
release or the occurrence of the material news or event, as the case may be (such extended periods,
the “Holdback Extension”). Each Participant agrees that he or she will sign a separate
agreement to this effect if and when requested by the underwriters or the Company in connection
with an underwritten public offering. In order to enforce this provision, the Company may impose
stop-transfer instructions with respect to Units covered hereby during any Holdback Period or any
period of Holdback Extension.

- 9 -

 

ARTICLE 9

CHANGES IN CAPITAL STRUCTURE

     9.1 MANDATORY ADJUSTMENTS. In the event of a nonreciprocal transaction between the
Company and its Members that causes the per-unit value of the Units to change (including, without
limitation, any unit dividend, unit split, spin-off, rights offering, or large nonrecurring cash
dividend), the authorization limits under Section 5.1 shall be adjusted proportionately, and the
Board shall make such adjustments to the Plan and Awards as it deems necessary, in its sole
discretion, to prevent dilution or enlargement of rights resulting from such transaction. Action
by the Board may include: (a) adjustment of the number and kind of Units that may be delivered
under the Plan; (b) adjustment of the number and kind of Units subject to outstanding Awards; (c)
adjustment of the exercise price of outstanding Awards; and (d) any other adjustments that the
Board determines to be equitable. Without limiting the foregoing, in the event of a subdivision of
the outstanding Units, a declaration of a dividend payable in Units, or a combination or
consolidation of the outstanding Units into a lesser number of Units, the authorization limits
under Section 5.1 shall automatically be adjusted proportionately, and the Units then subject to
each Award shall automatically, without the necessity for any additional action by the Board, be
adjusted proportionately without any change in the aggregate exercise price therefor.

     9.2 DISCRETIONARY ADJUSTMENTS. Upon the occurrence or in anticipation of any
corporate event or transaction involving the Company (including, without limitation, any Sale of
Holdings LLC, Sale of the Company, merger, reorganization, recapitalization, combination or
exchange of units, or any transaction described in Section 9.1 or Section 9.3) or otherwise at any
time upon the determination of the Board, the Board may, in its sole discretion, provide (a) that
Awards will become immediately vested and exercisable and will expire after a designated period of
time (which may include upon consummation of such event, transaction or determination) to the
extent not then exercised, (b) that Awards will be assumed by another party to a transaction or
otherwise be equitably converted or substituted in connection with such event, transaction or
determination, (c) that outstanding vested and exercisable Awards may be settled by payment in
cash, cash equivalents or securities equal in value to the excess of the Fair Market Value of the
underlying Units, as of a specified date associated with the event, determination or transaction,
over the exercise price of the Award, (d) that previously granted Awards be deemed exchanged for a
payment in cash, equivalents, securities or (subject to Sections 10.1 and 10.2) other forms of
incentive equity or awards or (e) any combination of the foregoing. The Board’s determination need
not be uniform and may be different for different Participants whether or not such Participants are
similarly situated. If an Award is not assumed, converted or substituted in connection with a Sale
of Holdings LLC or Sale of the Company and the exercise price of such Award exceeds the Fair Market
Value of an underlying Unit immediately prior to the consummation of such transaction, such Award
may be cancelled without any consideration to the Participant.

     9.3 PUBLIC OFFERING. In the event that the Board approves an initial public offering
and sale of any class of the Company’s or its corporate successor’s units or stock pursuant to an
effective registration statement under the 1933 Act, all Participants will take all necessary or
desirable actions requested by the Company in connection with the consummation

- 10 -

 

of the initial public offering.

     9.4 LIQUIDATION OR DISSOLUTION OF THE COMPANY. In the event of the proposed
dissolution or liquidation of the Company other than in connection with a Sale of Holdings LLC,
Sale of the Company or Corporate Conversion, each Award will terminate immediately prior to the
consummation of such proposed action, unless otherwise provided by the Board. Additionally, the
Board may, in the exercise of its sole discretion, cause Awards to be vested and non-forfeitable
and cause any conditions on any such Award to lapse, as to all or any part of such Award, including
Units as to which the Award would not otherwise be exercisable or non-forfeitable and allow all
Participants to exercise such Options within a reasonable period prior to the consummation of such
proposed action. Any Awards that remain unexercised upon consummation of such proposed action shall
be cancelled.

ARTICLE 10

AMENDMENT, MODIFICATION AND TERMINATION

     10.1 AMENDMENT, MODIFICATION AND TERMINATION. The Board may, at any time and from
time to time, amend, modify or terminate the Plan without Member approval; provided, however, that
the
Board may condition any amendment or modification on the approval of Members of the Company if such
approval is necessary or deemed advisable with respect to tax, securities or other applicable laws,
policies or regulations.

     10.2 AWARDS PREVIOUSLY GRANTED. At any time and from time to time, the Board may
amend, modify or terminate any outstanding Award without approval of the Participant; provided,
however, that, subject to the terms of the applicable Award Certificate, such amendment,
modification or termination shall not, without the Participant’s consent, reduce or diminish the
value of such Award determined as if the Award had been exercised, vested, cashed in, or otherwise
settled on the date of such amendment or termination (with the per-Unit value of an Option for this
purpose being calculated as the excess, if any, of the Fair Market Value of such Unit as of the
date of such amendment, modification or termination over the exercise price of such Option). No
termination, amendment, or modification of the Plan shall adversely affect any Award previously
granted under the Plan, without the written consent of the Participant. An outstanding Award shall
not be deemed to be “adversely affected” by a Plan termination, amendment or modification if such
termination, amendment or modification would not reduce or diminish the value of such Award
determined as if the Award had been exercised, vested, cashed in, or otherwise settled on the date
of such amendment (with the per-Unit value of an Option for this purpose being calculated as the
excess, if any, of the Fair Market Value of such Unit as of the date of such amendment over the
exercise price of such Option).

     10.3. COMPLIANCE AMENDMENTS. Notwithstanding anything in the Plan or in any Award
Certificate to the contrary, the Board may amend the Plan or an Award Certificate, to take effect
retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan
or Award Certificate to any present or future law relating to plans of this or similar nature
(including, but not limited to, Section 409A of the Code), and to the administrative regulations
and rulings promulgated thereunder. By accepting an Award under this Plan, a

- 11 -

 

Participant agrees to
any amendment made pursuant to this Section 10.3 to any Award granted under the Plan without
further consideration or action.

ARTICLE 11

GENERAL PROVISIONS

     11.1 NO RIGHTS TO AWARDS. No Participant or any Eligible Participant shall have any
claim to be granted any Award under the Plan, and neither the Company nor the Board is obligated to
treat Participants or Eligible Participants uniformly, and determinations made under the Plan may
be made by the Board selectively among Eligible Participants who receive, or are eligible to
receive, Awards (whether or not such Eligible Participants are similarly situated).

     11.2 NO MEMBER RIGHTS. No Award gives the Participant any of the rights of a Member
or holder of Units of the Company unless and until Units are in fact issued to such person in
connection with such Award.

     11.3 WITHHOLDING. The Company or any Affiliate shall have the authority and the right
to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to
satisfy any federal, state, and local taxes (including the Participant’s FICA obligation) required
by law to be withheld with respect to any taxable event arising as a result of the Plan. If Units
are surrendered to the Company to satisfy tax obligations in excess of the minimum tax withholding
obligation, such Units must have been held by the Participant as fully vested Units for such period
of time, if any, as necessary to avoid the recognition of an expense under generally accepted
accounting principles. The Company shall have the authority to require a Participant to remit cash
to the Company in lieu of the surrender of Units for taxes if the surrender of Units for such
purpose would result in the Company’s recognition of expense under generally accepted accounting
principles. With respect to withholding required upon any taxable event under the Plan, the Board
may, at the time the Award is granted or thereafter, require or permit that any such withholding
requirement be satisfied, in whole or in part, by withholding from the Award Units having a Fair
Market Value on the date of withholding equal to the minimum amount (and not any greater amount)
required to be withheld for tax purposes, all in accordance with such procedures as the Board
establishes.

     11.4 NO RIGHT TO CONTINUED SERVICE. Nothing in the Plan or any Award Certificate
shall interfere with or limit in any way the right of the Company or any Affiliate to terminate any
Participant’s employment at any time, nor confer upon any Participant any right to continue as an
employee, officer, manager,
director, consultant or advisor of the Company or any Affiliate. Neither an Award nor any benefits
arising under this Plan shall constitute an employment contract with the Company or any Affiliate
and, accordingly, subject to Article 10, this Plan and the benefits hereunder may be terminated at
any time in the sole and exclusive discretion of the Board without giving rise to any liability on
the part of the Company or any of its Affiliates.

     11.5 INDEMNIFICATION. To the extent allowable under applicable law, each member of
the Board shall be indemnified and held harmless by the Company from any loss,

- 12 -

 

cost, liability, or
expense that may be imposed upon or reasonably incurred by such member of the Board in connection
with or resulting from any claim, action, suit, or proceeding to which such member of the Board may
be a party or in which he may be involved by reason of any action or failure to act under the Plan
and against and from any and all amounts paid by such member in satisfaction of judgment in such
action, suit, or proceeding against him provided he gives the Company an opportunity, at its own
expense, to handle and defend the same before he undertakes to handle and defend it on his own
behalf. The foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which such persons may be entitled under the Company’s Operating Agreement, as a
matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

     11.6. SPECIAL PROVISIONS RELATED TO SECTION 409A OF THE CODE.

     (a) General. It is intended that the payments and benefits provided under the
Plan and any Award shall be exempt from the application of the requirements of Section 409A
of the Code. The Plan and all Award Certificates shall be construed in a manner that
effects such intent. Nevertheless, the tax treatment of the benefits provided under the
Plan or any Award is not warranted or guaranteed. Neither the Company, its Affiliates nor
their respective managers, directors, officers, employees or advisers shall be held liable
for any taxes, interest, penalties or other monetary amounts owed by any Participant or
other taxpayer as a result of the Plan or any Award.

     (b) Anti-Dilution Adjustments. Notwithstanding any anti-dilution provision in
the Plan, the Board shall not make any adjustments to outstanding Options that would
constitute a modification or substitution of the stock right under Treas. Reg. Sections
1.409A-1(b)(5)(v) that would be treated as the grant of a new stock right or change in the
form of payment for purposes of Code Section 409A.

     11.7 RELATIONSHIP TO OTHER BENEFITS. No grant under the Plan shall be taken into
account in determining any benefits under any pension, retirement, savings, profit sharing, group
insurance, welfare or benefit plan of the Company or any Affiliate unless provided otherwise in
such other plan.

     11.8 EXPENSES. The expenses of administering the Plan shall be borne by the Company
and its Parents or Subsidiaries.

     11.9 TITLES AND HEADINGS. The titles and headings of the Sections in the Plan are for
convenience of reference only, and in the event of any conflict, the text of the Plan, rather than
such titles or headings, shall control.

     11.10 GENDER AND NUMBER. Except where otherwise indicated by the context, any
masculine term used herein also shall include the feminine; the plural shall include the singular
and the singular shall include the plural.

- 13 -

 

     11.11 FRACTIONAL UNITS. No fractional Units shall be issued, and the Board shall
determine, in its discretion, whether cash shall be given in lieu of fractional Units or whether
such fractional Units shall be eliminated by rounding up.

     11.12 GOVERNMENT AND OTHER REGULATIONS. Options shall be subject to the requirement
that if at any time the Board shall determine, in its discretion, that the listing, registration or
qualification of the Units subject to Options upon any securities exchange or under any state or
federal securities or other law or regulation, or the consent or approval of any governmental
regulatory body, is necessary or desirable as a condition to or in connection with the granting of
Options or the issuance or purchase of Units thereunder, then no Options may be granted or
exercised, in whole or in part, unless such listing, registration, qualification, consent or
approval
shall have been effected or obtained free of any conditions not acceptable to the Board. The
holders of such Options shall supply the Company with such certificates, representations and
information as the Company shall request and shall otherwise cooperate with the Company in
obtaining such listing, registration, qualification, consent or approval. In the case of officers
and other Persons subject to Section 16(b) of the Securities Exchange Act of 1934, as amended, the
Board may at any time impose any limitations upon the exercise of an Option that, in the Board’s
discretion, are necessary or desirable in order to comply with such Section 16(b) and the rules and
regulations thereunder. If the Company, as part of an offering of securities or otherwise, finds
it desirable because of federal or state regulatory requirements to reduce the period during which
any Options may be exercised, the Board may, in its discretion and without the Participant’s
consent, so reduce such period on not less than 15 days written notice to the holders thereof. The
Plan is intended to be a “compensatory benefit plan” within the meaning of such term under Rule 701
under the 1933 Act, and (until otherwise determined by the Board) the issuance of Options and the
issuance of Units upon the exercise of Options are intended to qualify for exemption from the
registration requirements under the 1933 Act pursuant to Section 701 under the 1933 Act and
analogous provisions of state securities laws. The Company shall be under no obligation to
register under the 1933 Act, or any state securities act, any of the Units issued in connection
with the Plan. The Units issued in connection with the Plan may in certain circumstances be exempt
from registration under the 1933 Act, and the Company may restrict the transfer of such Units in
such manner as it deems advisable to ensure the availability of any such exemption.

     11.13 GOVERNING LAW. To the extent not governed by federal law, the Plan and all
Award Certificates shall be construed in accordance with and governed by the laws of the State of
Delaware.

     11.14 ADDITIONAL PROVISIONS. Each Award Certificate may contain such other terms and
conditions as the Board may determine, provided that such other terms and conditions are not
inconsistent with the provisions of this Plan.

     The foregoing is hereby acknowledged as being the Aurora Diagnostics Holdings, LLC 2011 Equity
Incentive Plan as adopted by the Board of Managers of the Company on July 6, 2011.

- 14 -

 

	 	 	 	 	 
	 	AURORA DIAGNOSTICS HOLDINGS, LLC

 	 
	 	By:  	/s/ James C. New
 	 
	 	 	James C. New 	 
	 	 	Chief Executive Officer 	 

- 15 -

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