Document:

exv10w2

Exhibit 10.2

EXECUTIVE EMPLOYMENT AND SEVERANCE AGREEMENT

     This Executive Employment and Severance Agreement (“Agreement”) is entered into as of
September 29, 2010 between Jonathan Neuman, an individual residing in the State of Florida (the
“Executive”) and Imperial Holdings, LLC (the “Company”).

     WHEREAS, the Executive is employed by the Company in a key employee capacity and the
Executive’s services are valuable and integral to the conduct of the business of the Company; and

     WHEREAS, the Company intends to convert to a corporation (and following such conversion, the
term “Company” when used herein shall refer to such corporation), and thereafter intends to sell
its common stock to the public pursuant to an effective registration statement filed under the
Securities Act of 1933, as amended (the “IPO”);

     WHEREAS, the Company and the Executive desire to specify the terms and conditions on which the
Executive will continue employment on and after the date of the IPO, and under which the Executive
will receive severance in the event that the Executive separates from service with the Company;

     WHEREAS, the parties intend that this Agreement shall supersede any and all other agreements,
either oral or in writing, between the parties with respect to the employment of the Executive by
the Company, and all such agreements shall be void and of no effect as of the effective date of
this Agreement;

     NOW, THEREFORE, for good and valuable consideration, the parties agree as follows:

     1. Effective Date; Term. This Agreement shall become effective on the closing date of
the Company’s IPO. This Agreement shall remain in effect until December 31, 2013; provided that,
each January 1, beginning January 1, 2012, this Agreement shall automatically renew for successive
three-year periods unless (a) either party gives the other notice of non-renewal at least ninety
(90) days prior to the beginning of any such three-year renewal period, in which event the
Agreement shall terminate at the end of such three-year renewal period, or (b) the Agreement is
terminated as provided in Section 4. Termination of this Agreement will not affect the rights or
obligations of the parties hereunder arising out of, or relating to, circumstances occurring prior
to the expiration of this Agreement, which rights and obligations will survive the termination of
this Agreement and the termination of Executive’s employment with the Company. Termination of this
Agreement as a result of non-renewal shall not automatically result in the Executive’s termination
of employment from the Company; such Executive’s employment on and after the date of such
termination of this Agreement shall be considered at-will.

     2. Definitions. For purposes of this Agreement, the following terms shall have the
meanings ascribed to them. Additional defined terms are included throughout this Agreement.

     (a) “409A Affiliate” shall mean each entity that is required to be included in the
Company’s controlled group of corporations within the meaning of Code

 

Section 414(b), or that is under common control with the Company within the meaning of Code
Section 414(c); provided, however, that the phrase “at least 50 percent” shall be used in
place of the phrase “at least 80 percent” each place it appears therein or in the
regulations thereunder.

     (b) “Accrued Benefits” shall mean the following amounts, payable as described herein:
(i) all base salary for the time period ending with the date of the Executive’s Termination
of Employment; (ii) reimbursement for any and all monies advanced in connection with the
Executive’s employment for reasonable and necessary expenses incurred by the Executive on
behalf of the Company for the time period ending with the date of the Executive’s
Termination of Employment; (iii) except in the event of termination for Cause, a pro rata
portion (determined by dividing the number of days the Executive is employed during the year
through the date of termination by 365) of any annual performance bonus (excluding the Cash
Bonus described in Section 3(c)) payable with respect to the year in which the termination
occurs, based on actual performance results; (iv) any and all other cash earned and vested
through the date of the Executive’s Termination of Employment and deferred at the election
of the Executive or pursuant to any deferred compensation plan then in effect; and (v) all
other payments and benefits to which the Executive (or in the event of the Executive’s
death, the Executive’s surviving spouse or other beneficiary) is entitled on the date of the
Executive’s Termination of Employment under the terms of any benefit plan of the Company,
excluding severance payments under any Company severance policy, practice or agreement in
effect on such date. Payment of Accrued Benefits shall be made promptly in accordance with
the Company’s prevailing practice with respect to clauses (i) and (ii) or, with respect to
clauses (iii), (iv) and (v), pursuant to the terms of the benefit plan or practice
establishing such benefits.

     (c) “Base Salary” shall mean the Executive’s annual base salary from the Company as in
effect from time to time.

     (d) “Board” shall mean the board of directors of the Company or a committee of such
Board authorized to act on its behalf in certain circumstances, including the Compensation
Committee of the Board.

     (e) “Cause” shall mean a good faith finding by the Board that the Executive has done
any of the following: (i) committed any willful, intentional, or grossly negligent act
having the effect of materially injuring the business of the Company; (ii) convicted of or
pled nolo contendere or its equivalent to a felony involving moral turpitude, fraud, theft,
or dishonesty; or (iii) misappropriated or embezzled any property of a material nature of
the Company (whether or not an act constituting a felony or misdemeanor). For purposes of
this subsection (e), no act, or failure to act, on the part of the Executive shall be
considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith
or without reasonable belief that the Executive’s action or omission was in the best
interests of the Company. Any act, or failure to act, based upon authority given pursuant
to a resolution duly adopted by the Board or based upon the advice of counsel for the
Company (or any act which the Executive omits to do because of the Executive’s reasonable
belief that such act would violate law or the Company’s standards of ethical

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conduct in its corporate policies) shall be conclusively presumed to be done, or
omitted to be done, by the Executive in good faith and in the best interests of the Company.
The termination of employment of the Executive shall not be deemed to be for Cause unless
and until (A) within a reasonable period of time prior to the Board meeting at which the
Board will determine whether Cause exists, the Executive is provided written notice of such
meeting and, unless prohibited by law, a reasonable opportunity to review prior to such
meeting all information to be presented to the Board with respect to whether Cause exists,
(B) the Executive is afforded the opportunity, together with counsel for the Executive, to
be heard before the Board, (C) there shall have been delivered to the Executive a copy of a
resolution duly adopted by the affirmative vote of not less than three-quarters of the
entire membership of the Board at a meeting of the Board called and held for such purpose
finding that, in the good faith opinion of the Board, the Executive committed the conduct
that constitutes Cause and specifying the particulars thereof in detail, and (D) if the
conduct or act alleged to provide grounds for the Executive’s termination for Cause is
curable in the discretion of the Board, the Executive has not cured such conduct within
thirty (30) days from the date of receiving a copy of the resolution adopted by the Board.

     (f) “Code” shall mean the Internal Revenue Code of 1986, as interpreted by rules and
regulations issued pursuant thereto, all as amended and in effect from time to time. Any
reference to a specific provision of the Code shall be deemed to include reference to any
successor provision thereto.

     (g) “Confidential Information” shall mean ideas, information, knowledge and
discoveries, whether or not patentable, that are not generally known in the trade or
industry and about which the Executive has knowledge as a result of his or her past, present
or future participation in the business of the Company and/or his or her past, present or
future employment with or other relationship with the Company , including without
limitation: products engineering information; marketing, sales, distribution, pricing and
bid process information; product specifications; manufacturing procedures; methods; business
plans; strategic plans; marketing plans; internal memoranda; formulae; trade secrets;
know-how; research and development programs and data; inventions; improvements; designs;
sales methods; customer or prospective customer, supplier, sales representative, distributor
and licensee lists; mailing lists; customer usages and requirements; computer programs;
employee compensation information; employee performance evaluations and employment-related
personnel information; and other confidential technical or business information and data.

     (h) “Competing Organization” shall mean any person (including, without limitation, the
Executive as a sole proprietor) or entity engaged in or planning or attempting to become
engaged in any business that engages in premium finance of life insurance, life settlements
or structured settlements within the United States of America and/or within 100 miles of any
offices of the Company or client of the Company, in each case, established at the time of
Executive’s termination of employment.

     (i) “Disability” shall mean any medically determinable physical or mental impairment
that (i) renders the Executive unable to perform the duties of his position with

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the Company, and (ii) can be expected to result in death or can be expected to last for
a continuous period of not less than 12 months, all as certified by a physician reasonably
acceptable to the Company.

     (j) “Company” shall mean Imperial Holdings, LLC, its subsidiaries, its affiliates, its
successors, and its parents.

     (k) “General Release” shall mean a release of all claims that the Executive, and anyone
who may succeed to any claims of the Executive, has or may have against the Company, its
board of directors, any of its subsidiaries or affiliates, or any of their employees,
directors, officers, employees, agents, plan sponsors, administrators, successors,
fiduciaries, or attorneys, arising out of the Executive’s employment with, and termination
of employment from, the Company, but excluding claims for (i) severance payments and
benefits due pursuant to Section 5 of this Agreement, (ii) Accrued Benefits, (iii) any and
all rights the Executive has to be indemnified and held harmless as an officer of the
Company under law, the Company’s charter, bylaws, or other governing instruments or this
Agreement, and related rights as an insured under any insurance policies obtained by an
Company in connection therewith, and (iv) any and all rights the Executive may have in a
capacity other than as an employee, officer or director. The General Release shall be in a
form that is reasonably acceptable to the Company or the Board.

     (l) “Good Reason” shall mean the occurrence of any of the following without the consent
of the Executive: (i) a material diminution in the Executive’s Base Salary; (ii) a material
diminution in the Executive’s authority, duties or responsibilities; (iii) a material
diminution in the authority, duties or responsibilities of the supervisor to whom the
Executive is required to report, including a requirement that the Executive report to a
corporate officer or employee instead of reporting directly to the board of directors of the
Company; (iv) a material change in the geographic location at which the Executive is
primarily performing services; or (v) a breach by the Company of any material provision of
this Agreement. Notwithstanding the foregoing, the Company’s non-renewal of this Agreement
pursuant to Section 1(a) shall not constitute Good Reason.

     (m) “Separation from Service” shall mean the Executive’s Termination of Employment, or
if the Executive continues to provide services to the Company or its 409A Affiliates
following his or her Termination of Employment, such later date as is considered a
separation from service from the Company and its 409A Affiliates within the meaning of Code
Section 409A. Specifically, if the Executive continues to provide services to the Company
or a 409A Affiliate in a capacity other than as an employee, such shift in status is not
automatically a Separation from Service.

     (n) “Severance Payment” shall mean an aggregate amount equal to three times (3x) the
sum of (i) the Executive’s Base Salary in effect at the time of the Executive’s Termination
of Employment (or the Base Salary in effect immediately prior to reduction if such reduction
was a Good Reason for the Executive’s termination) and (ii) the average of the annual cash
bonuses earned by the Executive with respect to each

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of the three completed fiscal years of the Company preceding the year in which the
Executive’s Termination of Employment occurs (or, in the event the Executive’s Termination
of Employment occurs prior to the completion of three fiscal years following the Effective
Date, the Executive’s Base Salary in effect at the time of the Executive’s termination of
employment).

     (o) “Severance Period” shall mean a twenty-four (24) month period.

     (p) “Termination of Employment” shall be presumed to occur when the Company and the
Executive reasonably anticipate that no further services will be performed by the Executive
for the Company and its 409A Affiliates or that the level of bona fide services the
Executive will perform as an employee of the Company and its 409A Affiliates will
permanently decrease to no more than twenty percent (20%) of the average level of bona fide
services performed by the Executive (whether as an employee or independent contractor) for
the Company and its 409A Affiliates over the immediately preceding 36-month period (or such
lesser period of services). Whether the Executive has experienced a Termination of
Employment shall be determined by the Company in good faith and consistent with Code Section
409A. Notwithstanding the foregoing, if the Executive takes a leave of absence for purposes
of military leave, sick leave or other bona fide reason, the Executive will not be deemed to
have experienced a Termination of Employment for the first six (6) months of the leave of
absence, or if longer, for so long as the Executive’s right to reemployment is provided
either by statute or by contract, including this Agreement; provided that if the leave of
absence is due to a medically determinable physical or mental impairment that can be
expected to result in death or last for a continuous period of not less than six (6) months,
where such impairment causes the Executive to be unable to perform the duties of his or her
position of employment or any substantially similar position of employment, the leave may be
extended by the Company for up to twenty-nine (29) months without causing a Termination of
Employment.

     3. Employment of the Executive.

     (a) Position.

     (i) The Executive shall serve in the position of President of the Company in a
full-time capacity. In such position, the Executive shall have such duties and
authority as is customarily associated with such position and shall have such other
titles and duties, consistent with the Executive’s position, as may be assigned from
time to time by the Board.

     (ii) The Executive will devote the Executive’s best efforts to the performance
of the Executive’s duties hereunder and will not engage in any other business,
profession or occupation for compensation or otherwise which would materially
interfere with the rendition of such services, either directly or indirectly,
without the prior written consent of the Board; provided that nothing herein shall
preclude the Executive, subject to the approval of the Board, from accepting
appointment to or continue to serve on any board of directors or trustees of any
business, profession, or occupation or any charitable organization; further

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provided in each case, and in the aggregate, that such activities do not
materially interfere with the performance of the Executive’s services, either
directly or indirectly, or conflict with Section 6.

     (iii) The Executive warrants and represents to the Company that, to the best of
Executive’s knowledge and belief, the Executive is not subject to any employment,
consulting or services agreement, or any restrictive covenants or agreements of any
type, including, without limitation, any non-solicit and/or non-compete agreements,
which would prohibit the Executive from properly carrying out the Executive’s duties
as described under the terms of this Agreement.

     (b) Base Salary. The Company shall pay the Executive a Base Salary at the annual rate
of Five Hundred Twenty-Five Thousand Dollars ($525,000), payable in regular installments in
accordance with the Company’s usual payroll practices. The Executive shall be entitled to
such increases in the base salary, if any, as may be determined from time to time by the
Board. At no time, shall Executive’s Base Salary be less than Five Hundred Twenty-Five
Thousand Dollars ($525,000).

     (c) Bonus Incentives. The Executive shall be entitled to participate in such long-term
cash and equity incentive plans and programs of the Company, and effective for 2014 and
later calendar years, in such annual incentive plans, as are generally provided to the
senior executives of the Company as determined by the Board from time to time. With respect
to the 2011 through 2013 calendar years only, and in lieu of any annual cash incentive plan
for which Executive would otherwise be entitled during such period, the Executive shall
receive a cash bonus equal to 0.6% of the Company’s pre-tax income (i.e., the Company’s net
revenues determined on a consolidated basis, also known as earnings before taxes) (the “Cash
Bonus”) if the Company’s pre-tax income thresholds with respect to the relevant year as set
forth on Exhibit A are met. Notwithstanding the foregoing, the maximum Cash Bonus payable
with respect to any year shall not exceed an amount equal to three times (3x) Executive’s
Base Salary as in effect on the last day of such year. Such Cash Bonus shall be paid no
earlier than January 1 and no later than March 15th of the calendar year
following the calendar year in which it was earned. The Executive shall be entitled to the
Cash Bonus so long as the Executive was employed on December 31st of the calendar
year in which the Cash Bonus was earned. The provisions of this subsection (c) regarding
the Cash Bonus shall be considered a material provision of this Agreement.

     (d) Employee Benefits. The Executive shall be entitled to participate in the Company’s
employee benefit plans as in effect from time to time on the same basis as those benefits
are generally made available to other salaried employees of the Company.

     (e) Business Expenses. The reasonable business expenses incurred by the Executive in
the performance of the Executive’s duties hereunder shall be reimbursed by the Company in
accordance with the Company policies. Any reimbursements by the Company to the Executive of
any eligible expenses under this Agreement that are not excludable from the Executive’s
income for Federal income tax purposes (the “Taxable Reimbursements”) shall be made by no
later than the earlier of the date on which they

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would be paid under the Company’s normal policies and the last day of the taxable year
of the Executive following the year in which the expense was incurred. The amount of any
Taxable Reimbursements during any taxable year of the Executive shall not affect the
expenses eligible for reimbursement, or in-kind benefits to be provided, in any other
taxable year of the Executive (except for any life-term or other aggregate limitation
applicable to medical expenses). The right to Taxable Reimbursement shall not be subject to
liquidation or exchange for another benefit.

     4. Termination of Employment. The Executive’s employment with the Company will
terminate during the term of the Agreement, and this Agreement will terminate on the date of such
termination, as follows:

     (a) Death. The Executive’s employment will terminate upon the Executive’s death.

     (b) Disability. If the Executive is Disabled, and if within thirty (30) days after the
Company notifies the Executive in writing that it intends to terminate the Executive’s
employment, the Executive shall not have returned to the performance of the Executive’s
duties hereunder on a full-time basis, the Company may terminate the Executive’s employment,
effective immediately following the end of such thirty-day period.

     (c) By Company. The Company may terminate the Executive’s employment with or without
Cause (other than as a result of Disability which is governed by subsection (b)). If the
termination is without Cause, the Executive’s employment will terminate on the date
specified in the written notice of termination. If the termination is for Cause, then the
Executive’s employment will terminate on the date that the all of the conditions set forth
in Section 2(e) have been satisfied. Unless otherwise directed by the Company, from and
after the date of the written notice of proposed termination, the Executive shall be
immediately relieved of his or her duties and responsibilities and shall be considered to be
on a paid leave of absence pending any final action by the Board confirming such proposed
termination.

     (d) By Executive. The Executive may terminate his or her employment with the Company
for or without Good Reason by providing written notice of termination to the Company as
follows:

     (i) If the Executive is alleging a termination for Good Reason, the Executive
must provide written notice to the Company specifying in reasonable detail the
existence of the condition constituting Good Reason (or the cumulative conditions
constituting Good Reason) within ninety (90) days of the existence of such condition
(or the existence of the final condition that, on a cumulative basis, results in
Good Reason), and the Company must have a period of at least ten (10) days (the
“Cure Period”) following receipt of such notice to cure such condition. If such
condition is not cured by the Company within such ten (10)day period, the
Executive’s termination of employment from the Company shall be effective on the
date immediately following the end of such cure period, unless the Executive

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elects to rescind his or her notice of termination prior to the end of such ten
(10)day period, in which case the Executive shall be deemed to waive his or her
right to terminate employment for Good Reason with respect to such specific
condition. If such condition is cured by the Company within such ten (10)day
period, the Executive may rescind such notice of termination by providing written
notice thereof to the Company prior to the five (5)day period following the Cure
Period; provided that if the Executive does not timely rescind such notice of
termination, then the Executive’s termination will be deemed to be without Good
Reason.

     (ii) If the Executive is not alleging a termination for Good Reason, the
Executive must provide written notice to the Company at least thirty (30) days prior
to the effective date of such termination.

     5. Payments upon Termination.

     (a) Entitlement to Severance. Subject to the other terms and conditions of this
Agreement, the Executive shall be entitled to the Accrued Benefits, and to the Severance
Payment described in subsection (c), in either of the following circumstances while this
Agreement is in effect:

     (i) The Executive’s employment is terminated by the Company without Cause
(except in the case of death or Disability); or

     (ii) The Executive terminates his or her employment for Good Reason.

If the Executive dies after receiving a notice by the Company that the Executive is being
terminated without Cause, or after providing notice of termination for Good Reason, then the
Executive’s estate, heirs and beneficiaries shall be entitled to the Accrued Benefits and
the severance benefits described in subsection (c) at the same time such amounts would have
been paid or benefits provided to the Executive had he or she lived.

     (b) General Release Requirement. As an additional prerequisite for receipt of the
severance benefits described in subsection (c), the Executive must execute, deliver to the
Company, and not revoke (to the extent the Executive is allowed to do so) a General Release
within forty-five (45) days of the date of the Executive’s Termination of Employment.

     (c) Severance Benefit; Timing and Form of Payment.

     (i) Subject to the limitations imposed by paragraph (ii) hereof and Section 5,
if the Executive is entitled to the Severance Payment, then the Company shall pay
the Executive the Severance Payment in equal installments in accordance with the
Company’s usual payroll practices during the Severance Period starting forty-six
(46) days following the Executive’s Separation from Service.

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     (ii) Notwithstanding the foregoing, if the Executive is considered a “specified
employee” within the meaning of Code Section 409A as of the date of his Separation
from Service, then any installment payments that would have been paid during first
six months following the Executive’s Separation from Service shall be delayed and
paid in a single sum (without interest thereon) on the first day of the seventh
month following the Executive’s Separation from Service. Thereafter, payment of the
Severance Payment shall continue pursuant to the payment scheduled described in
paragraph (i).

This paragraph (ii) shall not apply, however, if on the date of the Executive’s
Separation from Service, the Executive is either not considered a “specified
employee” within the meaning of Code Section 409A or the Company is not considered a
public company within the meaning of Code Section 409A.

     (d) Other Termination of Employment. If the Executive’s employment terminates for any
reason other than those described in subsection (a), the Executive (or the Executive’s
estate in the event of his or her death), shall be entitled to receive only the Accrued
Benefits.

     6. Limitations on Severance Payment and Other Payments or Benefits.

     (a) Limitation on Payments. Notwithstanding any provision of this Agreement, if any
portion of the Severance Payment or any other payment under this Agreement, or under any
other agreement with the Executive or plan of the Company or its affiliates (in the
aggregate, “Total Payments”), would constitute an “excess parachute payment” and would, but
for this Section 6, result in the imposition on the Executive of an excise tax under Code
Section 4999, then the Total Payments to be made to the Executive shall either be (i)
delivered in full, or (ii) delivered in such amount so that no portion of such Total Payment
would be subject to the Excise Tax, whichever of the foregoing results in the receipt by the
Executive of the greatest benefit on an after-tax basis (taking into account the applicable
federal, state and local income taxes and the Excise Tax).

     (b) Determination of Limit. Within forty (40) days following a termination of
employment or notice by one party to the other of its belief that there is a payment or
benefit due the Executive that will result in an excess parachute payment, the Executive and
the Company, at the Company’s expense, shall obtain the opinion (which need not be
unqualified) of a nationally recognized tax counsel (“National Tax Counsel”) selected by the
Company (which may be regular outside counsel to the Company), which opinion sets forth (i)
the amount of the Base Period Income (as defined below), (ii) the amount and present value
of the Total Payments, (iii) the amount and present value of any excess parachute payments
determined without regard to any reduction of Total Payments pursuant to subsection (a), and
(iv) the net after-tax proceeds to the Executive, taking into account the tax imposed under
Code Section 4999 if (x) the Total Payments were reduced in accordance with subsection (a)
or (y) the Total Payments were not so reduced. The opinion of National Tax Counsel shall be
addressed to the Company and the Executive and shall be binding upon the Company and the
Executive. If such National Tax Counsel

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opinion determines that subsection (a)(ii) above applies, then the Termination Payment
hereunder or any other payment or benefit determined by such counsel to be includable in
Total Payments shall be reduced or eliminated so that under the bases of calculations set
forth in such opinion there will be no excess parachute payment. In such event, payments or
benefits included in the Total Payments shall be reduced or eliminated by applying the
following principles, in order: (1) the payment or benefit with the higher ratio of the
parachute payment value to present economic value (determined using reasonable actuarial
assumptions) shall be reduced or eliminated before a payment or benefit with a lower ratio;
(2) the payment or benefit with the later possible payment date shall be reduced or
eliminated before a payment or benefit with an earlier payment date; and (3) cash payments
shall be reduced prior to non-cash benefits; provided that if the foregoing order of
reduction or elimination would violate Code Section 409A, then the reduction shall be made
pro rata among the payments or benefits included in the Termination Payments (on the basis
of the relative present value of the parachute payments).

     (c) Definitions and Assumptions. For purposes of this Agreement: (i) the terms “excess
parachute payment” and “parachute payments” shall have the meanings assigned to them in Code
Section 280G and such “parachute payments” shall be valued as provided therein; (ii) present
value shall be calculated in accordance with Code Section 280G(d)(4); (iii) the term “Base
Period Income” means an amount equal to the Executive’s “annualized includible compensation
for the base period” as defined in Code Section 280G(d)(1); (iv) for purposes of the opinion
of National Tax Counsel, the value of any noncash benefits or any deferred payment or
benefit shall be determined by the Company’s independent auditors in accordance with the
principles of Code Sections 280G(d)(3) and (4), which determination shall be evidenced in a
certificate of such auditors addressed to the Company and the Executive; and (v) the
Executive shall be deemed to pay federal income tax and employment taxes at the highest
marginal rate of federal income and employment taxation, and state and local income taxes at
the highest marginal rate of taxation in the state or locality of the Executive’s domicile
(determined in both cases in the calendar year in which the termination of employment or
notice described in subsection (b) above is given, whichever is earlier), net of the maximum
reduction in federal income taxes that may be obtained from the deduction of such state and
local taxes.

     (d) Reasonableness of Compensation. If such National Tax Counsel so requests in
connection with the opinion required by this Section 6, the Executive and the Company shall
obtain, at the Company’s expense, and the National Tax Counsel may rely on, the advice of a
firm of recognized executive compensation consultants as to the reasonableness of any item
of compensation to be received by the Executive solely with respect to its status under Code
Section 280G.

     (e) Indemnification. The Company agrees to bear all costs associated with, and to
indemnify and hold harmless, the National Tax Counsel of and from any and all claims,
damages, and expenses resulting from or relating to its determinations pursuant to this
Section 6, except for claims, damages or expenses resulting from the gross negligence or
willful misconduct of such firm.

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     (f) Changes to Code Section. This Section 6 shall be amended to comply with any
amendment or successor provision to Sections 280G or 4999 of the Code. If such provisions
are repealed without successor, then this Section 5 shall be cancelled without further
effect.

     7. Covenants by the Executive.

     (a) Confidential Information. All Confidential Information shall be deemed to have
been received by the Executive as an employee of the Company. During the term of
Executive’s employment, Executive will not directly or indirectly use or disclose any
Confidential Information or trade secret (as defined under applicable law) of the Company
except in the interest and for the benefit of the Company. After the end, for whatever
reason, of Executive’s employment with the Company, Executive will not directly or
indirectly use or disclose any trade secret of the Company. If Executive is entitled to
the Severance Payment hereunder, then for the Severance Period beginning on the date of the
Executive’s termination, Executive will not directly or indirectly (i) disclose any
Confidential Information to any person or entity, (ii) use any Confidential Information for
any purpose, (iii) duplicate any Confidential Information for any purpose or (iv) remove any
Confidential Information from the facilities or premises of the Company for any purpose,
except to the extent such action is for the exclusive benefit of the Company, as applicable,
and as it or they may direct or is necessary to fulfill the Executive’s continuing duties as
an employee of or consultant to the Company. Notwithstanding the foregoing, the Executive
may disclose Confidential Information at such times, in such manner and to the extent such
disclosure is required by court order or lawful non-collusive subpoena, provided that the
Executive (x) provides the Company with prior ten (10) day written notice of such
anticipated disclosure so as to permit the affected Company to seek a protective order or
other appropriate remedy, (y) limits such disclosure to what is strictly required and (z)
attempts to preserve the confidentiality of any such Confidential Information so disclosed.

     (b) Return of Property. All memoranda, notes, records, papers, tapes, disks, programs
or other property of any nature whatsoever and all copies thereof relating to the operations
or business of the Company, some of which may be prepared by the Executive, and all objects
associated therewith in any way obtained by him shall be, unless otherwise agreed to in
writing, the sole property of the Company. Upon his or her termination of employment, the
Executive shall deliver to the Company all of the aforementioned documents and objects, if
any, that may be in his or her possession, and cooperate with the Company to destroy and/or
delete any electronically stored copies of the aforementioned documents and objects, if any,
at any time at the request of the Company.

     (c) Noncompetition. During the term of the Executive’s employment with the Company,
and if Executive is entitled to the Severance Payment then for the Severance Period
beginning on the date of the Executive’s termination of employment from the Company, the
Executive shall not directly or indirectly, without the prior written consent of the Board:

11

 

     (i) own or control, whether as a shareholder (other than a less than five
percent (5%) shareholder in a corporation or other entity whose securities are
traded on a recognized stock exchange or traded on the over the counter market),
member, partner, director or otherwise, or manage, operate, be employed or
compensated by, or consult with (whether or not compensated), whether as an officer,
executive, consultant or otherwise, any Competing Organization, in any capacity
where the Executive’s knowledge of Confidential Information or involvement with or
knowledge of relationships with customers of the Company would be useful or
beneficial, or where the goodwill of the Company would be considered useful or
beneficial to such Competing Organization or would be affected; or

     (ii) undertake any action, on behalf of any Competing Organization relating to
the sale or marketing of products or services that compete with products or services
researched, developed, designed, manufactured, assembled, produced, marketed,
distributed, sold, repaired or provided by the Company, or, to the extent the
Executive has or receives notice or knowledge of such plans, within the active
research, development, expansion or business plans of the Company, to any customers
or prospective customers of the Company which the Executive had knowledge, or with
respect to which the Executive obtained Confidential Information, or with whom the
Executive had personal contact or communications in his capacity as an employee of
the Company, at any time during his period of employment with the Company.

     (d) Nonsolicitation. During the Executive’s employment with the Company, and if
Executive is entitled to the Severance Payment then for the Severance Period beginning on
the date of the Executive’s termination of employment from the Company, the Executive shall
not directly or indirectly, without the prior written consent of the Company, solicit,
induce or otherwise offer employment or engagement as an independent contractor to, or
engage in discussions regarding employment or engagement as an independent contractor with,
any person who served as an employee, commissioned salesperson or consultant of, or who
performed similar services for, the Company during the Executive’s employment with the
Company prior to or during the Executive’s period of employment, unless such person has been
separated from his or her employment, engagement or other relationship with the Company for
a period of six (6) consecutive months.

     (e) Nonsolicitation of Clients and Vendors. During the Executive’s employment with the
Company and if Executive is entitled to the Severance Payment then for the Severance Period
beginning on the date of the Executive’s termination of employment from the Company, the
Executive shall not directly or indirectly, without the prior written consent of the
Company, solicit any existing client of the Company (at the time of the Executive’s
termination of employment) to terminate and/or cancel the client’s relationship with the
Company. Further, during the Executive’s employment with the Company and if Executive is
entitled to the Severance Payment then for the Severance Period beginning on the date of the
Executive’s termination of employment from the Company, the Executive shall not directly or
indirectly, without the prior written

12

 

consent of the Company, solicit any existing vendor of the Company (at the time of the
Executive’s termination of employment) to terminate and/or cancel the vendor’s relationship
with the Company.

     (f) Remedies Not Exclusive. In the event that either the Company or the Executive
breaches any terms of this Agreement, the Company and Executive acknowledge and agree that
said breach may result in immediate and irreparable harm and that damages, if any, and
remedies of law for such breach may be inadequate and indeterminable. The Company or the
Executive, shall therefore be entitled (in addition to and without limiting any other
remedies that may be sought under this Agreement or otherwise at law or in equity) to seek
from any court of competent jurisdiction equitable relief by way of temporary or permanent
injunction and without being required to post a bond, and for such further relief as the
court may deem just or proper in law or equity. Further, in the event of litigation related
to or arising under this Agreement, and subject to Sections 8 and 9 of this Agreement, the
prevailing party shall recover from the other his/its attorneys fees and costs and other
expenses in adjudicating and/or enforcing his/its rights under this Agreement (including any
appeals) .

     (g) Severability of Provisions. If any restriction, limitation, or provision of this
Section 7 is deemed to be unreasonable, onerous, or unduly restrictive by a court of
competent jurisdiction, it shall not be stricken in its entirety and held totally void and
unenforceable, but shall remain effective to the maximum extent possible within the bounds
of the law. If any phrase, clause or provision of this Section 7 is declared invalid or
unenforceable by a court of competent jurisdiction, such phrase, clause, or provision shall
be deemed severed from this Section 7, but will not affect any other provision of this
Section 7, which shall otherwise remain in full force and effect. The provisions of this
Section 7 are each declared to be separate and distinct covenants by the Executive.

     (h) Payment by Company. If the Executive is not entitled to the Severance Payment
hereunder, the Company may elect to pay the Executive such Severance Payment at the times
otherwise contemplated herein, and in such event the Executive will be bound by the
covenants contained herein for so long as the Company makes such payments; provided that the
Executive’s compliance with Section 7(b) is not conditioned on the Executive’s receipt of
the Severance Payment. If the Company ceases to make any Severance Payments under this
subsection (g), the Executive shall cease to be obligated to comply with the covenants
contained in this Section 7 (other than Section 7(b)); provided that in all cases, Executive
shall continue to be prohibited from directly or indirectly using or disclosing any trade
secret of the Company.

     8. Indemnification. With respect to the Executive’s acts or failures to act during his
or her employment in his or her capacity as an officer, employee or agent of the Company or any of
its affiliates, the Executive shall be entitled to indemnification from the Company, and to
liability insurance coverage (if any) on the same basis as other officers of the Company. Executive
shall be fully indemnified by Company, and Company shall pay Executive’s related expenses
(including attorneys’ fees and expert costs) when and as incurred, all to the fullest extent
permitted by law. Notwithstanding the foregoing, Executive shall not be entitled to any
indemnification if a final judgment or other final adjudication establishes that any act or

13

 

omission of Executive was material to the cause of action so adjudicated and that such act or
omission constituted: (a) a criminal violation, unless Executive had reasonable cause to believe
that Executive’s conduct was lawful or had no reasonable cause to believe that such conduct was
unlawful, (b) a transaction from which Executive personally derived an improper financial benefit
that was not disclosed to the Company, or (c) willful misconduct or a conscious and reckless
disregard for the best interests of the Company. In addition, if the Executive is adjudged not
entitled to indemnification, then he shall repay to the Company the aggregate of all expenses paid
by the Company on his behalf under this Section 8 with respect to the act or omission for which
indemnification is not available. The termination of any action, suit, or proceeding by judgment,
order, settlement, conviction or plea of nolo contendre or its equivalent, shall not of itself,
create a presumption that the Executive had no reasonable cause to believe that his conduct was
lawful. The indemnification provided in this Section shall not be deemed exclusive and shall be in
addition to any other indemnification rights and/or remedies to which the Executive might be
entitled to under the law, another agreement or otherwise.

     9. Reimbursement and Advancement of Fees. The Company agrees to pay, to the fullest
extent permitted by law, all legal fees and expenses which the Executive may incur as a result of
any action, suit, or proceeding (regardless of the outcome thereof) by the Company, the Executive
or others of the validity or enforceability of, or liability under, any provision of this Agreement
or any guarantee of performance thereof (including as a result of any contest by the Executive
about the amount of any payment due pursuant to this Agreement), plus in each case interest on any
delayed payment at the Prime Rate, compounded quarterly. Any legal fees and expenses incurred by
the Executive shall be paid by the Company in advance of the final disposition of any such suit,
action or proceeding. The advancement of legal fees and expenses must be timely paid by the
Company directly to the Executive’s attorneys or other vendors within thirty (30) days of having
received an invoice from an attorney or vendor and shall be based on the following conditions:

     (a) The Company will not be provided with detailed invoices regarding the legal fees
and expenses incurred by the Executive. With respect to legal fees, any invoice provided to
the Company will only include the number of hours worked by each attorney, the hourly
billable rate for each attorney and a general description of the work being performed during
each month. With respect to vendors, including but not limited to experts, the Company
shall not be entitled to the names of any vendor but only a general description of the work
being performed by the vendor during each month. Any invoices submitted to the Company will
not include any information that the Executive’s attorneys consider in their sole discretion
to be confidential, including but not limited to information protected by the
attorney-client privilege and/or the work product privilege. The Company agrees that any
information provided by the Executive regarding legal fees and expenses shall be kept
strictly confidential and shall not be disclosed without the Executive’s written consent;

     (b) The Executive will be entitled to receive advances until the Executive has
exhausted every right to appeal. The Company will be required to pay the full expenses
associated with “fees on fees” in the event the Executive is required to enforce the
indemnification rights contained in Sections 8 and 9 of this Agreement;

14

 

     (c) The indemnification and advancement obligations contained within Sections 8 and 9
shall apply to any civil, administrative, or criminal suit, action or proceeding, regardless
of whether such suit, action or proceeding occurs in a court, administrative, or arbitral
forum; and

     (d) The advancement obligations shall apply even if the Company institutes a suit,
action or proceeding against the Executive, including but not limited to any shareholders’
derivative action.

If the Company is the prevailing party, then the Executive must repay the Company the aggregate of
all expenses advanced or reimbursed by the Company on his behalf under this Section 9.

     10. Compliance with Code Section 409A.

     (a) The Company and the Executive intend the terms of this Agreement to be in
compliance with Code Section 409A. The Company does not guarantee the tax treatment or tax
consequences associated with any payment or benefit, including but not limited to
consequences related to Code Section 409A. To the maximum extent permissible, any ambiguous
terms of this Agreement shall be interpreted in a manner that avoids a violation of Code
Section 409A.

     (b) If the Executive believes he or she is entitled to a payment or benefit pursuant to
the terms of this Agreement that was not timely paid or provided, and such payment or
benefit is considered deferred compensation subject to the requirements of Code Section
409A, the Executive acknowledges that to avoid an additional tax on such payment or benefit
pursuant to the provisions of Code Section 409A, the Executive must make a reasonable, good
faith effort to collect such payment or benefit no later than ninety (90) days after the
latest date upon which the payment could have been timely made or benefit timely provided
without violating Code Section 409A, and if not paid or provided, must take further
enforcement measures within one hundred eighty (180) days after such latest date.

     (c) Neither the Company nor the Executive, individually or in combination, may
accelerate any payment or benefit that is subject to Code Section 409A, except in compliance
with Code Section 409A and the provisions of this Agreement, and no amount that is subject
to Code Section 409A shall be paid prior to the earliest date on which it may be paid
without violating Code Section 409A.

     (d) For purposes of applying the provisions of Section Code 409A to this Agreement,
each separately identified amount to which the Executive is entitled under this Agreement
shall be treated as a separate payment. In addition, to the extent permissible under Code
Section 409A, any series of installment payments under this Agreement shall be treated as a
right to a series of separate payments. Whenever a payment under this Agreement specifies a
payment period with reference to a number of days, the actual date of payment within the
specified period shall be within the sole discretion of the Company.

15

 

     11. Withholding. The Company shall be entitled to withhold from amounts to be paid to
the Executive hereunder any federal, state or local withholding or other taxes or charges which it
is from time to time required to withhold; provided that the amount so withheld shall not exceed
the minimum amount required to be withheld by law unless otherwise elected by the Executive in
writing. In addition, if prior to the date of payment of the Severance Payment, the Federal
Insurance Contributions Act (FICA) tax imposed under Sections 3101, 3121(a) and 3121(v)(2) of the
Code, where applicable, becomes due with respect to such payment, the Company may provide for an
immediate payment of the amount needed to pay the Executive’s portion of such tax (plus an amount
equal to the taxes that will be due on such amount) and the Executive’s Severance Payment shall be
reduced accordingly. The Company shall be entitled to rely on an opinion of the National Tax
Counsel if any question as to the amount or requirement of any such withholding shall arise.

     12. Notice. Any notice, request, demand or other communication required or permitted
herein will be deemed to be properly given when personally served in writing or when deposited in
the United States mail, postage prepaid, addressed to the Executive at his or her latest home
address on file with the Company and to the Company addressed to its headquarters with attention to
the Chief Executive Officer of the Company and the General Counsel of the Company. Either party
may change its address by written notice in accordance with this section.

     13. No Set Off; No Mitigation. The Company’s obligation to pay the Executive the
amounts and to provide the benefits hereunder shall not be subject to set-off, counterclaim or
recoupment of amounts owed by the Executive to the Company. Further, the Executive shall not be
required to mitigate the amount of any payment provided for pursuant to this Agreement by seeking
other employment or otherwise.

     14. Benefit of Agreement. This Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective executors, administrators, successors and assigns. If
Company sells, assigns or transfers all or substantially all of its business and assets to any
person or if the Company merges into or consolidates or otherwise combines (where the Company does
not survive such combination) with any person (any such event, a “Sale of Business”), then the
Company shall assign all of its right, title and interest in this Agreement as of the date of such
event to such person, and the Company shall cause such person, by written agreement in form and
substance reasonably satisfactory to the Executive, to expressly assume and agree to perform from
and after the date of such assignment all of the terms, conditions and provisions imposed by this
Agreement upon the Company. The assignment of this Agreement to, and the Executive’s employment
by, such person shall not constitute a termination of employment hereunder. Failure of the Company
to obtain such agreement as of the effective date of such Sale of Business shall be a breach of
this Agreement constituting “Good Reason” hereunder. In case of such assignment by the Company and
of assumption and agreement by such person, as used in this Agreement, the “Company” shall
thereafter mean the person which executes and delivers the agreement provided for in this Section
14 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation
of law, and this Agreement shall inure to the benefit of, and be enforceable by, such person. The
Executive shall, in his or her discretion, be entitled to proceed against any or all of such
persons, any person which theretofore was such a successor to the Company, and the Company (as
originally defined herein) in any action to enforce any rights of the Executive hereunder. Except
as provided in this

16

 

Section 14, this Agreement shall not be assignable by the Company. This Agreement shall not
be terminated by the voluntary or involuntary dissolution of the Company.

     15. Survival. The provisions of Sections 5 through 21 shall survive the termination
of this Agreement to the extent necessary to enforce the rights and obligations described therein.

     16. Applicable Law, Exclusive Venue and Jurisdiction. This Agreement is to be
governed by and construed under the laws of the State of Florida without resort to Florida’s choice
of law rules. Each party hereby agrees that the forum and exclusive venue for any legal or
equitable action or proceeding arising out of, or in connection with, this Agreement will lie in
the appropriate federal or state courts in Palm Beach County, Florida , and specifically waives any
and all objections to personal jurisdiction and venue.

     17. Captions and Section Headings. Captions and section headings used herein are for
convenience only and are not a part of this Agreement and will not be used in construing it.

     18. Invalid Provisions. Subject to Section 7(f), should any provision of this
Agreement for any reason be declared invalid, void, or unenforceable by a court of competent
jurisdiction, the validity and binding effect of any remaining portion will not be affected, and
the remaining portions of this Agreement will remain in full force and effect as if this Agreement
had been executed with said provision eliminated.

     19. No Waiver. The failure of a party to insist upon strict adherence to any term of
this Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive
such party of the right thereafter to insist upon strict adherence to that term or any other term
of this Agreement.

     20. Application of Company’s Recoupment Policy. Notwithstanding anything herein to
the contrary, all performance-based compensation payments made to Executive hereunder are subject
to recoupment by the Company pursuant to the recoupment policy approved by the Board, as it may be
amended from time to time.

     21. Entire Agreement. This Agreement contains the entire agreement of the parties
with respect to the subject matter of this Agreement except where other agreements are specifically
noted, adopted, or incorporated by reference. This Agreement otherwise supersedes any and all
other agreements, either oral or in writing, between the parties hereto with respect to the
employment of the Executive by the Company, and all such agreements shall be void and of no effect.
Each party to this Agreement acknowledges that no representations, inducements, promises, or
agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any
party, which are not embodied herein, and that no other agreement, statement, or promise not
contained in this Agreement will be valid or binding.

     22. Modification. This Agreement may not be modified or amended by oral agreement,
but only by an agreement in writing signed by both the Company and the Executive.

17

 

     23. Counterparts. This Agreement may be signed in counterparts, each of which shall
be an original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.

[signatures appear on following page]

18

 

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

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	/s/ Jonathan Neuman
 	 
	 	Jonathan Neuman 	 
	 	 	 
	 
	 	IMPERIAL HOLDINGS, LLC

 	 
	 	By:  	/s/ Antony Mitchell
 	 
	 	 	Name:  	Antony Mitchell 	 
	 	 	Title:  	CEO 	 

19

 

	 	 	 	 	 

EXHIBIT A

	1.	 	For the Company’s fiscal year ending December 31, 2011, the threshold is $60,000,000 pre-tax
income (i.e., the Company’s net revenues determined on a consolidated basis, also known as
earnings before taxes).

	2.	 	For the Company’s fiscal year ending December 31, 2012, the threshold is $67,500,000 pre-tax
income (i.e., the Company’s net revenues determined on a consolidated basis, also known as
earnings before taxes).

	3.	 	For the Company’s fiscal year ending December 31, 2013, the threshold is $75,000,000 pre-tax
income (i.e., the Company’s net revenues determined on a consolidated basis, also known as
earnings before taxes).

20exv10w6

Exhibit 10.6

IMPERIAL HOLDINGS, INC.

2010 OMNIBUS INCENTIVE PLAN

1. Purpose and Effective Date.

     (a) Purpose. The Imperial Holdings, Inc. 2010 Omnibus Incentive Plan has two
complementary purposes: (i) to attract and retain outstanding individuals to serve as officers,
directors, employees and consultants and (ii) to increase shareholder value. The Plan will provide
participants incentives to increase shareholder value by offering the opportunity to acquire shares
of the Company’s common stock, receive monetary payments based on the value of such common stock,
or receive other incentive compensation, on the potentially favorable terms that this Plan
provides.

     (b) Effective Date. This Plan will become effective, and Awards may be granted
under this Plan, on and after the Effective Date.

2. Definitions. Capitalized terms used in this Plan have the following meanings:

     (a) “Affiliate” has the meaning ascribed to such term in Rule 12b-2 under the
Exchange Act or any successor rule or regulation thereto.

     (b) “Award” means a grant of Options, Stock Appreciation Rights, Performance Shares,
Performance Units, Shares, Restricted Stock, Restricted Stock Units, an Incentive Award or any
other type of award permitted under this Plan. Any Award granted under this Plan that is not
exempt from the requirements of Code Section 409A shall be provided or made in such manner and at
such time as complies with the applicable requirements of Code Section 409A to avoid a plan failure
described in Code Section 409A(a)(1), including, without limitation, deferring payment to a
specified employee or until a specified distribution event, as provided in Code Section 409A(a)(2).

     (c) “Board” means the Board of Directors of the Company.

     (d) “Change in Control” means the occurrence of any one of the following events:

	 	(i)	 	any one person, or more than one person acting as a group,
acquires ownership of common stock of the Company that, together with common
stock held by such person or group, possesses more than 50% of the total fair
market value or total voting power of the common stock of the Company;
provided, however, that if any one person, or more than one person acting as a
group, is considered to own more than 50% of the total fair market value or
total voting power of the common stock of the Company, the acquisition of
additional common stock by the same person or persons will not be considered a
Change in Control. Notwithstanding the foregoing, an increase in the
percentage of common stock of the Company owned by any one person, or persons
acting as a group, as a result of a transaction in which the Company acquires
its common stock in exchange for property will be treated as an acquisition of
common stock of the Company for purposes of this clause (i);

1

 

	 	(ii)	 	during any period of 12 consecutive months, individuals who at
the beginning of such period constituted the Board (together with any new or
replacement directors whose election by the Board, or whose nomination for
election by the Company’s shareholders, was approved by a vote of at least a
majority of the directors then still in office who were either directors at the
beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the
directors then in office; or
	 
	 	(iii)	 	any one person, or more than one person acting as a group,
acquires (or has acquired during the 12-month period ending on the date of the
most recent acquisition by the person or persons) assets from the Company,
outside of the ordinary course of business, that have a gross fair market value
equal to or more than 40% of the total gross fair market value of all of the
assets of the Company immediately prior to such acquisition or acquisitions.
For purposes of this Section 2(d), “gross fair market value” means the value of
the assets of the Company, or the value of the assets being disposed of,
determined without regard to any liabilities associated with such assets.
Notwithstanding anything to the contrary in this Agreement, the following shall
not be treated as a Change in Control under this Section 2(d):

	 	(A)	 	a transfer of assets from the Company to a
shareholder of the Company (determined immediately before the asset
transfer);
	 
	 	(B)	 	a transfer of assets from the Company to an
entity, 50% or more of the total value or voting power of which is
owned, directly or indirectly, by the Company;
	 
	 	(C)	 	a transfer of assets from the Company to a
person, or more than one person acting as a group, that owns, directly
or indirectly, 50% or more of the total value or voting power of all
the outstanding capital stock of the Company; or
	 
	 	(D)	 	a transfer of assets from the Company to an
entity, at least 50% of the total value or voting power of which is
owned, directly or indirectly, by a person described in clause (iii)
above.

Notwithstanding the foregoing, no “Change in Control” shall be deemed to have occurred if there is
consummated any transaction or series of integrated transactions immediately following which the
record holders of the common stock of the Company immediately prior to such transaction or series
of transactions continue to have substantially the same proportionate ownership in an entity which
owns all or substantially all of the assets of the Company immediately following such transaction
or series of transactions, or if the sole purpose of the transaction is to change the state of the
Company’s incorporation or to create a holding company that will be owned in substantially the same
proportions by the Persons who held the Company’s securities immediately before such transaction.

With respect to an Award that is considered deferred compensation subject to Code Section 409A, a
“Change in Control” shall not be deemed to have occurred unless such event also satisfies the
requirements of a change of control under Code Section 409A.

2

 

     (e) “Code” means the Internal Revenue Code of 1986, as amended. Any reference to a
specific provision of the Code includes any successor provision and the regulations promulgated
under such provision.

     (f) “Committee” means the Compensation Committee of the Board (or a successor
committee with the same or similar authority).

     (g) “Company” means Imperial Holdings, Inc., a Florida corporation, or any successor
thereto.

     (h) “Director” means a member of the Board, and “Non-Employee Director” means a
Director who is not an employee of the Company or its Subsidiaries.

     (i) “Effective Date” means the date the Board approves this Plan, subject to
approval by the Company’s shareholders within twelve (12) months of the Effective Date. Awards
granted under this Plan on and after the Effective Date but prior to shareholder approval shall be
subject to, and contingent upon, such shareholder approval of the Plan.

     (j) “Exchange Act” means the Securities Exchange Act of 1934, as amended. Any
reference to a specific provision of the Exchange Act includes any successor provision and the
regulations and rules promulgated under such provision.

     (k) “Fair Market Value” means, per Share on a particular date the last sales price
on such date on the national securities exchange on which the Stock is then traded, as reported in
The Wall Street Journal, or if no sales of Stock occur on the date in question, on the last
preceding date on which there was a sale on such exchange. If the Shares are not listed on a
national securities exchange, but are traded in an over-the-counter market, the last sales price
(or, if there is no last sales price reported, the average of the closing bid and asked prices) for
the Shares on the particular date, or on the last preceding date on which there was a sale of
Shares on that market, will be used. If the Shares are neither listed on a national securities
exchange nor traded in an over-the-counter market, the price determined by the Committee, in its
discretion, will be used. Notwithstanding the foregoing, in the case of the sale of Shares, the
actual sale price shall be the Fair Market Value of such Shares.

     (l) “Incentive Award” means the right to receive a cash payment to the extent
Performance Goals are achieved, and shall include “Annual Incentive Awards” as described in Section
10 and “Long-Term Incentive Awards” as described in Section 11.

     (m) “Option” means the right to purchase Shares at a stated price for a specified
period of time.

     (n) “Participant” means an individual selected by the Committee to receive an Award.

     (o) “Performance Goals” means any goals the Committee establishes that relate to one
or more of the following with respect to the Company or any one or more Subsidiaries, Affiliates or
other business units: net income; operating income; income from continuing operations; net sales;
cost of sales; revenue; gross income; earnings (including before taxes, and/or interest and/or
depreciation and amortization); net earnings per share (including diluted earnings per share); Fair
Market Value; cash flow; net cash provided by operating activities; net cash provided by operating
activities less net cash used in

3

 

investing activities; net operating profit; pre-tax profit; ratio of debt to debt plus equity;
return on shareholder equity; total shareholder return; return on capital; return on assets; return
on equity; return on investment; return on revenues; operating working capital; working capital as
a percentage of net sales; cost of capital; average accounts receivable; economic value added;
performance value added; customer satisfaction; customer loyalty and/or retention; market share;
cost structure reduction; cost savings; operating goals; operating margin; profit margin; sales
performance; and internal revenue growth. As to each Performance Goal, the relevant measurement of
performance shall be computed in accordance with generally accepted accounting principles, but,
unless otherwise determined by the Committee and to the extent consistent with Code Section 162(m),
will exclude the effects of: (i) charges for reorganizing and restructuring; (ii) discontinued
operations; (iii) asset write-downs; (iv) gains or losses on the disposition of a business; (v)
changes in tax or accounting principles, regulations or laws; (vi) mergers, acquisitions or
dispositions; and (vii) extraordinary, unusual and/or non-recurring items of gain or loss, that in
all of the foregoing the Company identifies in its audited financial statements, including
footnotes, or the Management’s Discussion and Analysis section of the Company’s annual report.
Also, the Committee may, to the extent consistent with Code Section 162(m), appropriately adjust
any evaluation of performance under a Performance Goal to exclude any of the following events that
occurs during a performance period: (i) litigation, claims, judgments or settlements; (ii) the
effects of changes in other laws or regulations affecting reported results; and (iii) accruals of
any amounts for payment under this Plan or any other compensation arrangements maintained by the
Company. In addition, in the case of Awards that at the date of grant the Committee determines
will not be considered “performance-based compensation” under Code Section 162(m), the Committee
may establish other Performance Goals not listed in this Plan and make any adjustments to such
goals not listed in this Plan. Where applicable, the Performance Goals may be expressed, without
limitation, in terms of attaining a specified level of the particular criterion or the attainment
of an increase or decrease (expressed as absolute numbers or a percentage) in the particular
criterion or achievement in relation to a peer group or other index. The Performance Goals may
include a threshold level of performance below which no payment will be made (or no vesting will
occur), levels of performance at which specified payments will be paid (or specified vesting will
occur), and a maximum level of performance above which no additional payment will be made (or at
which full vesting will occur).

     (p) “Performance Shares” means the right to receive Shares to the extent Performance
Goals are achieved.

     (q) “Performance Units” means the right to receive cash and/or Shares valued in
relation to a unit that has a designated dollar value or the value of which is equal to the Fair
Market Value of one or more Shares, to the extent Performance Goals are achieved.

     (r) “Person” has the meaning given in Section 3(a)(9) of the Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof.

     (s) “Plan” means this Imperial Holdings, Inc. 2010 Omnibus Incentive Plan, as it may
be amended from time to time.

     (t) “Restricted Stock” means Shares that are subject to a risk of forfeiture and/or
restrictions on transfer, which may lapse upon the achievement or partial achievement of
Performance Goals, the completion of a period of service or the occurrence of one or more specified
events.

4

 

     (u) “Restricted Stock Unit” means the right to receive cash and/or Shares the value
of which is equal to the Fair Market Value of one Share.

     (v) “Rule 16b-3” means Rule 16b-3 as promulgated by the United States Securities and
Exchange Commission under the Exchange Act.

     (w) “Section 16 Participants” means Participants who are subject to the provisions
of Section 16 of the Exchange Act.

     (x) “Share” means a share of Stock.

     (y) “Stock” means the Common Stock of the Company, $0.01 par value.

     (z) “Stock Appreciation Right” or “SAR” means the right of a Participant to receive
cash, and/or Shares with a Fair Market Value, equal to the appreciation of the Fair Market Value of
a Share during a specified period of time.

     (aa) “Subsidiary” means any corporation, limited liability company or other limited
liability entity in an unbroken chain of entities beginning with the Company if each of the
entities (other than the last entities in the chain) owns the stock or equity interest possessing
more than fifty percent (50%) of the total combined voting power of all classes of stock or other
equity interests in one of the other entities in the chain.

3. Administration.

     (a) Committee Administration. In addition to the authority specifically granted to
the Committee in this Plan, the Committee has full discretionary authority to administer this Plan,
including but not limited to the authority to (i) interpret the provisions of this Plan and any
agreement covering an Award, (ii) prescribe, amend and rescind rules and regulations relating to
this Plan, (iii) correct any defect, supply any omission, or reconcile any inconsistency in the
Plan or any Award or agreement covering an Award in the manner and to the extent it deems desirable
to carry this Plan or such Award into effect and (iv) make all other determinations necessary or
advisable for the administration of this Plan. All Committee determinations shall be made in the
sole discretion of the Committee and are final and binding on all interested parties.

     (b) Delegation to Other Committees or Officers. To the extent applicable law
permits, the Board may delegate to another committee of the Board, or the Committee may delegate to
one or more officers of the Company, any or all of the authority and responsibility of the
Committee; provided, however, that no such delegation is permitted with respect to Awards made to
Section 16 Participants at the time any such delegated authority or responsibility is exercised
unless the delegation is to another committee of the Board consisting entirely of Non-Employee
Directors and does not relate to awards intended to qualify as performance-based compensation under
Code Section 162(m). If the Board has made such a delegation, then all references to the Committee
in this Plan include such other committee or one or more officers to the extent of such delegation.

     (c) Indemnification. The Company will indemnify and hold harmless each member of
the Board and the Committee, and each officer or member of any other committee to whom a delegation

5

 

under Section 3(b) has been made, as to any acts or omissions, or determination made, with
respect to this Plan or any Award to the maximum extent that the law and the Company’s by-laws
permit.

4. Eligibility.

     The Committee may designate any of the following as a Participant from time to time: any
officer or other employee of the Company or its Affiliates, a consultant who provides services to
the Company or its Affiliates, or a Director, including a Non-Employee Director. The Committee’s
designation of a Participant in any year will not require the Committee to designate such person to
receive an Award in any other year. The Committee’s granting of a particular type of Award to a
Participant will not require the Committee to grant any other type of Award to such individual.

5. Types of Awards.

     Subject to the terms of this Plan, the Committee may grant any type of Award to any
Participant it selects, but only employees of the Company or a Subsidiary may receive grants of
incentive stock options within the meaning of Code Section 422. Awards may be granted alone or in
addition to, in tandem with, or in substitution for any other Award (or any other award granted
under another plan of the Company or any Affiliate).

6. Shares Reserved under this Plan.

     (a) Plan Reserve. Subject to adjustment as provided in Section 17, an aggregate of
1,200,000 Shares are reserved for issuance under this Plan; provided that only 1,200,000 shares may
be issued pursuant to the exercise of incentive stock options within the meaning of Code Section
422. The Shares reserved for issuance may be either authorized and unissued Shares or Shares
reacquired at any time and now or hereafter held as treasury stock. The aggregate number of Shares
reserved under this Section 6(a) shall be depleted on the date of grant of an Award by the maximum
number of Shares, if any, with respect to which such Award is granted.

     (b) Replenishment of Shares Under this Plan. If (i) an Award lapses, expires,
terminates or is cancelled without the issuance of Shares under, or the payment of other
compensation with respect to Shares covered by, the Award (whether due currently or on a deferred
basis), (ii) it is determined during or at the conclusion of the term of an Award that all or some
portion of the Shares with respect to which the Award was granted will not be issuable, or that
other compensation with respect to Shares covered by the Award will not be payable, (iii) Shares
are forfeited under an Award, (iv) Shares are issued under any Award and the Company subsequently
reacquires them pursuant to rights reserved upon the issuance of the Shares or (v) Shares are
tendered or withheld to satisfy federal, state or local tax withholding obligations, then such
Shares shall be recredited to the Plan’s reserve and may again be used for new Awards under this
Plan. Notwithstanding the foregoing, in no event shall the following Shares be recredited to the
Plan’s reserve: (i) Shares purchased by the Company using proceeds from Option exercises; and (ii)
Shares tendered or withheld in payment of the exercise price of an Option or as a result of the net
settlement of an outstanding Stock Appreciation Right.

     (c) Participant Limitations. Subject to adjustment as provided in Section 17, no
Participant may be granted Awards that could result in such Participant:

6

 

	 	(i)	 	receiving Options for, and/or Stock Appreciation Rights with
respect to, more than 120,000 Shares during any fiscal year of the Company;
	 
	 	(ii)	 	receiving Awards of Restricted Stock and/or Restricted Stock
Units relating to more than 120,000 Shares during any fiscal year of the
Company;
	 
	 	(iii)	 	receiving, with respect to an Award of Performance Shares
and/or an Award of Performance Units the value of which is based on the Fair
Market Value of a Share, payment of more than 120,000 Shares in any fiscal
year;
	 
	 	(iv)	 	receiving, with respect to an Annual Incentive Award in respect
of any single fiscal year of the Company, a cash payment of more than
$2,000,000;
	 
	 	(v)	 	receiving, with respect to a Long-Term Incentive Award and/or
an Award of Performance Units the value of which is not based on the Fair
Market Value of a Share, a cash payment of more than $3,000,000 in respect of
any period of two consecutive fiscal years of the Company, or of more than
$4,000,000 in respect of any period of three consecutive fiscal years of the
Company; or
	 
	 	(vi)	 	receiving other Stock-based Awards pursuant to Section 12
relating to more than 120,000 Shares during any fiscal year of the Company.

     In all cases, determinations under this Section 6(c) should be made in a manner that is
consistent with the exemption for performance-based compensation that Code Section 162(m) provides.

7. Options.

     Subject to the terms of this Plan, the Committee will determine all terms and conditions of
each Option, including but not limited to: (a) whether the Option is an “incentive stock option”
which meets the requirements of Code Section 422, or a “nonqualified stock option” which does not
meet the requirements of Code Section 422; (b) the grant date, which may not be any day prior to
the date that the Committee approves the grant; (c) the number of Shares subject to the Option; (d)
the exercise price, which may never be less than the Fair Market Value of the Shares subject to the
Option as determined on the date of grant; (e) the terms and conditions of exercise, including
vesting; and (f) the term, except that an Option must terminate no later than 10 years after the
date of grant. In all other respects, the terms of any incentive stock option should comply with
the provisions of Code Section 422 except to the extent the Committee determines otherwise. If an
Option that is intended to be an incentive stock option fails to meet the requirements thereof, the
Option shall automatically be treated as a nonqualified stock option to the extent of such failure.

8. Stock Appreciation Rights.

     Subject to the terms of this Plan, the Committee will determine all terms and conditions of
each SAR, including but not limited to: (a) whether the SAR is granted independently of an Option
or relates to an Option; (b) the grant date, which may not be any day prior to the date that the
Committee approves the grant; (c) the number of Shares to which the SAR relates; (d) the grant
price, which may never be less than the Fair Market Value of the Shares subject to the SAR as
determined on the date of grant; (e) the terms and conditions of exercise or maturity, including
vesting; (f) the term, provided that an SAR must terminate no later than 10 years after the date of
grant; and (g) whether the SAR will be settled in cash,

7

 

Shares or a combination thereof. If an SAR is granted in relation to an Option, then unless
otherwise determined by the Committee, the SAR shall be exercisable or shall mature at the same
time or times, on the same conditions and to the extent and in the proportion, that the related
Option is exercisable and may be exercised or mature for all or part of the Shares subject to the
related Option. Upon exercise of any number of SARs, the number of Shares subject to the related
Option shall be reduced accordingly and such Option may not be exercised with respect to that
number of Shares. The exercise of any number of Options that relate to a SAR shall likewise result
in an equivalent reduction in the number of Shares covered by the related SAR.

9. Performance and Stock Awards.

     Subject to the terms of this Plan, the Committee will determine all terms and conditions of
each award of Shares, Restricted Stock, Restricted Stock Units, Performance Shares or Performance
Units, including but not limited to: (a) the number of Shares and/or units to which such Award
relates; (b) whether, as a condition for the Participant to realize all or a portion of the benefit
provided under the Award, one or more Performance Goals must be achieved during such period as the
Committee specifies; (c) the length of the vesting and/or performance period and, if different, the
date on which payment of the benefit provided under the Award will be made; (d) with respect to
Performance Units, whether to measure the value of each unit in relation to a designated dollar
value or the Fair Market Value of one or more Shares; and (e) with respect to Performance Shares,
Performance Units and Restricted Stock Units, whether to settle such Awards in cash, in Shares
(including Restricted Stock), or in a combination of cash and Shares.

10. Annual Incentive Awards.

     Subject to the terms of this Plan, the Committee will determine all terms and conditions of an
Annual Incentive Award, including but not limited to the Performance Goals, performance period, the
potential amount payable, the type of payment, and the timing of payment, subject to the following:
(a) the Committee must require that payment of all or any portion of the amount subject to the
Annual Incentive Award is contingent on the achievement or partial achievement of one or more
Performance Goals during the period the Committee specifies, although the Committee may specify
that all or a portion of the Performance Goals subject to an Award are deemed achieved upon a
Participant’s death, disability (as defined by the Committee) or a Change in Control or, in the
case of Awards that at the date of grant the Committee determines will not be considered
performance-based compensation under Code Section 162(m), retirement (as defined by the Committee)
or such other circumstances as the Committee may specify; and (b) the performance period must
relate to a period of at least one fiscal year of the Company except that, if the Award is made at
the time of commencement of employment with the Company or on the occasion of a promotion, then the
Award may relate to a period shorter than one fiscal year; and (c) payment will be in cash except
to the extent that the Committee determines that payment will be in Shares, either on a mandatory
basis or at the election of the Participant, having a Fair Market Value at the time of the payment
equal to the amount payable with respect to the Annual Incentive Award.

8

 

11. Long-Term Incentive Awards.

     Subject to the terms of this Plan, the Committee will determine all terms and conditions of a
Long-Term Incentive Award, including but not limited to the Performance Goals, performance period,
the potential amount payable, the type of payment, and the timing of payment, subject to the
following: (a) the Committee must require that payment of all or any portion of the amount subject
to the Long-Term Incentive Award is contingent on the achievement or partial achievement of one or
more Performance Goals during the period the Committee specifies, although the Committee may
specify that all or a portion of the Performance Goals subject to an Award are deemed achieved upon
a Participant’s death, disability (as defined by the Committee) or a Change in Control or, in the
case of Awards that at the date of grant the Committee determines will not be considered
performance-based compensation under Code Section 162(m), retirement (as defined by the Committee)
or such other circumstances as the Committee may specify; (b) the performance period must relate to
a period of more than one fiscal year of the Company except that, if the Award is made at the time
of commencement of employment with the Company or on the occasion of a promotion, then the Award
may relate to a shorter period; and (c) payment will be in cash except to the extent that the
Committee determines that payment will be in Shares, either on a mandatory basis or at the election
of the Participant, having a Fair Market Value at the time of the payment equal to the amount
payable with respect to the Long-Term Incentive Award.

12. Other Stock-Based Awards.

     Subject to the terms of this Plan, the Committee may grant to Participants other types of
Awards, which may be denominated or payable in, valued in whole or in part by reference to, or
otherwise based on, Shares, either alone or in addition to or in conjunction with other Awards, and
payable in Stock or cash. Without limitation, such Award may include the issuance of shares of
unrestricted Stock, which may be awarded in payment of director fees, in lieu of cash compensation,
in exchange for cancellation of a compensation right, as a bonus, or upon the attainment of
Performance Goals or otherwise, or rights to acquire Stock from the Company. The Committee shall
determine all terms and conditions of the Award, including but not limited to, the time or times at
which such Awards shall be made, and the number of Shares to be granted pursuant to such Awards or
to which such Award shall relate; provided that any Award that provides for purchase rights shall
be priced at no less than one hundred percent (100%) of Fair Market Value on the grant date of the
Award.

13. Amendment of Minimum Vesting and Performance Periods.

     Notwithstanding any provision of this Plan or an Award that requires a minimum vesting and/or
performance period for an Award, the Committee, at the time an Award is granted or any later date,
may subject an Award to a shorter vesting and/or performance period to take into account a
Participant’s hire or promotion, or may accelerate the vesting or deem an Award to be earned, in
whole or in part, in the event of a Participant’s termination of employment or a Change in Control;
provided that the foregoing discretion shall not apply in the case of Awards that are intended to
be considered performance-based compensation under Code Section 162(m) to the extent such
discretion would cause such Award to cease to be considered performance-based compensation.

14. Transferability.

     Awards are not transferable other than by will or the laws of descent and distribution, unless
and to the extent the Committee allows a Participant to: (a) designate in writing a beneficiary to
exercise the

9

 

Award or receive payment under the Award after the Participant’s death; (b) transfer an Award
to the former spouse of the Participant as required by a domestic relations order incident to a
divorce; or (c) transfer an Award; provided, however, that with respect to clause (c) above the
Participant may not receive consideration for such a transfer of an Award.

15. Termination and Amendment of Plan; Amendment, Modification or Cancellation of Awards.

     (a) Term of Plan. Unless the Board earlier terminates this Plan pursuant to Section
15(b), this Plan will terminate on the earlier of (i) the tenth anniversary of the Effective Date
and (ii) the date when all Shares reserved for issuance have been issued.

     (b) Termination and Amendment. The Board or the Committee may amend, alter,
suspend, discontinue or terminate this Plan at any time, subject to the following limitations:

	 	(i)	 	the Board must approve any amendment of this Plan to the extent
the Company determines such approval is required by: (A) prior action of the
Board, (B) applicable corporate law or (C) any other applicable law;
	 
	 	(ii)	 	shareholders must approve any amendment of this Plan to the
extent the Company determines such approval is required by: (A) Section 16 of
the Exchange Act, (B) the Code, (C) the listing requirements of any principal
securities exchange or market on which the Shares are then traded or (D) any
other applicable law; and
	 
	 	(iii)	 	shareholders must approve any of the following Plan
amendments: (A) an amendment to materially increase any number of Shares
specified in Section 6(a) or 6(c) (except as permitted by Section 17); or (B)
an amendment to the provisions of Section 15(e).

     (c) Amendment, Modification or Cancellation of Awards. Except as provided in
Section 15(e) and subject to the limitations imposed under this Plan, the Committee may modify or
amend any Award, or waive any restrictions or conditions applicable to any Award or the exercise of
the Award, or amend, modify or cancel any terms and conditions applicable to any Award, in each
case only with the consent of the Participant or any other person(s) as may then have an interest
in the Award; provided that the Committee need not obtain Participant (or other interested party)
consent for any such action that is permitted by the provisions of Section 17(a) or Section 18 or
for any such action: (i) to the extent the action is deemed necessary by the Committee to comply
with any applicable law or the listing requirements of any principal securities exchange or market
on which the Shares are then traded; (ii) to the extent the action is deemed necessary by the
Committee to preserve favorable accounting or tax treatment of any Award for the Company; or (iii)
to the extent the Committee determines that such action does not materially and adversely affect
the value of an Award or that such action is in the best interest of the affected Participant or
any other person(s) as may then have an interest in the Award.

     (d) Survival of Authority and Awards. Notwithstanding the foregoing, the authority
of the Board and the Committee under the Plan (other than to grant Awards) will extend beyond the
date of this Plan’s termination. In addition, termination of this Plan will not affect the rights
of Participants with respect to Awards previously granted to them, and all unexpired Awards will
continue in full force and

10

 

effect after termination of this Plan except as they may lapse or be terminated by their own
terms and conditions.

     (e) Repricing Prohibited. Notwithstanding anything in this Plan to the contrary,
and except for the adjustments provided in Section 17, neither the Committee nor any other person
may decrease the exercise price for any outstanding Option or SAR after the date of grant, cancel
an outstanding Option or SAR in exchange for cash (other than cash equal to the excess of the Fair
Market Value of the Shares subject to such Option or SAR at the time of cancellation over the
exercise or grant price for such Shares), or allow a Participant to surrender an outstanding Option
or SAR to the Company as consideration for the grant of a new Option or SAR with a lower exercise
price.

16. Taxes.

     (a) Withholding. In the event the Company or an Affiliate of the Company is
required to withhold any federal, state or local taxes or other amounts in respect of any income
recognized by a Participant as a result of the grant, vesting, payment or settlement of an Award or
disposition of any Shares acquired under an Award, the Company may deduct (or require an Affiliate
to deduct) cash from any payments of any kind otherwise due the Participant, or with the consent of
the Committee, withhold Shares otherwise deliverable or vesting under an Award, to satisfy such tax
obligations. Alternatively, the Company may require such Participant to pay to the Company, in
cash, promptly on demand, or make other arrangements satisfactory to the Company regarding the
payment to the Company of the aggregate amount of any such taxes and other amounts. If Shares are
deliverable upon exercise or payment of an Award, the Committee may permit a Participant to satisfy
all or a portion of the federal, state and local withholding tax obligations arising in connection
with such Award by electing to (a) have the Company withhold Shares otherwise issuable under the
Award, (b) tender back Shares received in connection with such Award or (c) deliver other
previously owned Shares, in each case having a Fair Market Value equal to the amount to be
withheld; provided that the amount to be withheld may not exceed the total minimum statutory
federal, state and local tax withholding obligations associated with the transaction to the extent
needed for the Company to avoid an accounting charge. If an election is provided, the election
must be made on or before the date as of which the amount of tax to be withheld is determined and
otherwise as the Committee requires. In any case, the Company may defer making payment or delivery
of Shares under an Award if any such tax may be pending unless and until indemnified to its
satisfaction.

     (b) No Guarantee of Tax Treatment. Notwithstanding any provision of this Plan to
the contrary, the Company does not guarantee to any Participant or any other person(s) with an
interest in an Award that (i) any Award intended to be exempt from Code Section 409A shall be so
exempt, (ii) any Award intended to comply with Code Section 409A or Code Section 422 shall so
comply, or (iii) any Award shall otherwise receive a specific tax treatment under any other
applicable tax law, nor in any such case will the Company or any Affiliate be required to
indemnify, defend or hold harmless any individual with respect to the tax consequences of any
Award.

17. Adjustment Provisions.

     (a) Adjustment of Shares. If (i) the Company shall at any time be involved in a
merger or other transaction in which the Shares are changed or exchanged; or (ii) the Company shall
subdivide or combine the Shares or the Company shall declare a dividend payable in Shares, other
securities or other property; or (iii) the Company shall effect a cash dividend the amount of which
exceeds ten percent (10%) of the trading price of the Shares at the time the dividend is declared,
or the Company shall effect

11

 

any other dividend or other distribution on the Shares in the form of cash, or a repurchase of
Shares, that the Board determines by resolution is special or extraordinary in nature or that is in
connection with a transaction that the Company characterizes publicly as a recapitalization or
reorganization involving the Shares; or (iv) any other event shall occur which, in the case of this
clause (iv), in the judgment of the Committee necessitates an adjustment to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available under this Plan,
then the Committee shall, in such manner as it may deem equitable, adjust any or all of (A) the
number and type of Shares subject to this Plan (including the number and type of Shares described
in Sections 6(a) and 6(c)) and which may after the event be made the subject of Awards under this
Plan, including incentive stock options, (B) the number and type of Shares subject to outstanding
Awards, (C) the grant, purchase, or exercise price with respect to any Award, and (D) to the extent
such discretion does not cause an Award that is intended to qualify as performance-based
compensation under Code Section 162(m) to lose its status as such, the Performance Goals of an
Award. In any such case, the Committee may also (or in lieu of the foregoing) make provision for a
cash payment to the holder of an outstanding Award in exchange for the cancellation of all or a
portion of the Award (without the consent of the holder of an Award) in an amount determined by the
Committee effective at such time as the Committee specifies (which may be the time such transaction
or event is effective). However, in each case, with respect to Awards of incentive stock options,
no such adjustment may be authorized to the extent that such authority would cause this Plan to
violate Code Section 422(b). Further, the number of Shares subject to any Award payable or
denominated in Shares must always be a whole number. In any event, previously granted Options or
SARs are subject to only such adjustments as are necessary to maintain the relative proportionate
interest the Options and SARs represented immediately prior to any such event and to preserve,
without exceeding, the value of such Options or SARs.

     Without limitation, in the event of any such merger or similar transaction, subdivision or
combination of Shares, dividend or other event described above (other than any such transaction in
which the Company is the continuing corporation and in which the outstanding Stock is not being
converted into or exchanged for different securities, cash or other property, or any combination
thereof), the Committee shall substitute, on an equitable basis as the Committee determines, for
each Share then subject to an Award, the number and kind of shares of stock, other securities, cash
or other property to which holders of Stock are or will be entitled in respect of each Share
pursuant to the transaction. Notwithstanding the foregoing, if the Company shall subdivide the
Shares or the Company shall declare a dividend payable in Shares, and if no action is taken by the
Board or the Committee, then the adjustments contemplated by this Section 17(a) that are
proportionate shall nevertheless automatically be made as of the date of such subdivision of the
Shares or dividend in Shares.

     (b) Issuance or Assumption. Notwithstanding any other provision of this Plan, and
without affecting the number of Shares otherwise reserved or available under this Plan, in
connection with any merger, consolidation, acquisition of property or stock, or reorganization, the
Committee may authorize the issuance in exchange for the cancellation or assumption of awards under
this Plan upon such terms and conditions as it may deem appropriate.

18. Change in Control.

     (a) Effect of Change in Control Upon Awards. The Committee may specify in any Award
agreement the effect of a Change in Control upon such Award. If the Award agreement does not
specify the effect of a Change in Control upon such Award, then upon a Change in Control, the
Committee may, in its discretion, determine that any or all outstanding Awards held by Participants
who are then in the

12

 

employ or service of the Company or any Affiliate shall vest or be deemed to have been earned
in full (assuming the target performance goals provided under such Award were met, if applicable),
and:

	 	(i)	 	If the successor or surviving corporation (or parent thereof)
so agrees, some or all outstanding Awards shall be assumed, or replaced with
the same type of award with similar terms and conditions, by the successor or
surviving corporation (or parent thereof) in the Change in Control transaction.
If applicable, each Award which is assumed by the successor or surviving
corporation (or parent thereof) shall be appropriately adjusted, immediately
after such Change in Control, to apply to the number and class of securities
which would have been issuable to the Participant upon the consummation of such
Change in Control had the Award been exercised or vested immediately prior to
such Change in Control, and such other appropriate adjustments in the terms and
conditions of the Award shall be made.
	 
	 	(ii)	 	If the provisions of paragraph (i) do not apply with respect to
any particular outstanding Award, then the Committee may provide that all such
outstanding Awards shall be cancelled as of the date of the Change in Control
in exchange for a payment in cash and/or Shares (which may include shares or
other securities of any surviving or successor entity or the purchasing entity
or any parent thereof) equal to: (x) in the case of an Option or SAR, the
excess of the Fair Market Value of the Shares on the date of the Change in
Control covered by the vested portion of the Option or SAR that has not been
exercised over the exercise or grant price of such Shares under the Award,
provided that if such excess is zero, then the Option or SAR shall be cancelled
without payment therefor; (y) in the case of Restricted Stock Units, the Fair
Market Value of a Share on the date of the Change in Control multiplied by the
number of vested units; and (z) in the case of a Performance Share Award, the
Fair Market Value of a Share on the date of the Change in Control multiplied by
the number of earned Shares.

     (b) Parachute Payment Limitation.

	 	(i)	 	Except as may be set forth in a written agreement by and
between the Company and the Participant, in the event that the Company’s
auditors determine that any payment or transfer by the Company under the Plan
to or for the benefit of a Participant (a “Payment”) would be nondeductible by
the Company for federal income tax purposes because of the provisions
concerning “excess parachute payments” in Code Section 280G, then the aggregate
present value of all Payments shall be reduced (but not below zero) to the
Reduced Amount. For purposes of this Section 18(b), the “Reduced Amount” shall
be the amount, expressed as a present value, which maximizes the aggregate
present value of the Payments without causing any Payment to be nondeductible
by the Company because of Code Section 280G.
	 
	 	(ii)	 	If the Company’s auditors determine that any Payment would be
nondeductible by the Company because of Code Section 280G, then the Company
shall promptly give the Participant notice to that effect and a copy of the
detailed calculation thereof and of the Reduced Amount, and the Participant may
then

13

 

	 	 	 	elect, in his or her sole discretion, which and how much of the Payments
shall be eliminated or reduced (as long as after such election the aggregate
present value of the Payments equals the Reduced Amount) and shall advise
the Company in writing of his or her election within ten (10) days of
receipt of notice. If no such election is made by the Participant within
such ten (10) day period, then the Company may elect which and how much of
the Payments shall be eliminated or reduced (as long as after such election
the aggregate present value of the Payments equals the Reduced Amount) and
shall notify the Participant promptly of such election. For purposes of
this Section 18(b), present value shall be determined in accordance with
Code Section 280G(d)(4). All determinations made by the Company’s auditors
under this Section 18(b) shall be binding upon the Company and the
Participant and shall be made within sixty (60) days of the date when a
Payment becomes payable or transferable. As promptly as practicable
following such determination and the elections hereunder, the Company shall
pay or transfer to or for the benefit of the Participant such amounts as are
then due to him or her under the Plan and shall promptly pay or transfer to
or for the benefit of the Participant in the future such amounts as become
due to him or her under the Plan.
	 
	 	(iii)	 	As a result of uncertainty in the application of Code Section
280G at the time of an initial determination by the Company’s auditors
hereunder, it is possible that Payments will have been made by the Company that
should not have been made (an “Overpayment”) or that additional Payments that
will not have been made by the Company could have been made (an
“Underpayment”), consistent in each case with the calculation of the Reduced
Amount hereunder. In the event that the Company’s auditors, based upon the
assertion of a deficiency by the Internal Revenue Service against the Company
or the Participant that the auditors believe has a high probability of success,
determine that an Overpayment has been made, such Overpayment shall be treated
for all purposes as a loan to the Participant which he or she shall repay to
the Company, together with interest at the applicable federal rate provided in
Code Section 7872(f)(2); provided, however, that no amount shall be payable by
the Participant to the Company if and to the extent that such payment would not
reduce the amount subject to taxation under Code Section 4999. In the event
that the auditors determine that an Underpayment has occurred, such
Underpayment shall promptly be paid or transferred by the Company to or for the
benefit of the Participant, together with interest at the applicable federal
rate provided in Code Section 7872(f)(2).
	 
	 	(iv)	 	For purposes of this Section 18(b), the term “Company” shall
include affiliated corporations to the extent determined by the Auditors in
accordance with Code Section 280G(d)(5).

19. Miscellaneous.

     (a) Other Terms and Conditions. The grant of any Award may also be subject to other
provisions (whether or not applicable to the Award granted to any other Participant) as the
Committee determines appropriate, including, without limitation, provisions for:

14

 

	 	(i)	 	one or more means to enable Participants to defer the delivery
of Shares or recognition of taxable income relating to Awards or cash payments
derived from the Awards on such terms and conditions as the Committee
determines, including, by way of example, the form and manner of the deferral
election, the treatment of dividends paid on the Shares during the deferral
period or a means for providing a return to a Participant on amounts deferred,
and the permitted distribution dates or events (provided that no such deferral
means may result in an increase in the number of Shares issuable under this
Plan);
	 
	 	(ii)	 	the payment of the purchase price of Options (A) by delivery of
cash or other Shares or other securities of the Company (including by
attestation) having a then Fair Market Value equal to the purchase price of
such Shares, (B) by delivery (including by fax) to the Company or its
designated agent of an executed irrevocable option exercise form together with
irrevocable instructions to a broker-dealer to sell or margin a sufficient
portion of the Shares and deliver the sale or margin loan proceeds directly to
the Company to pay for the exercise price, (C) by surrendering the right to
receive Shares otherwise deliverable to the Participant upon exercise of the
Award having a Fair Market Value at the time of exercise equal to the total
exercise price, or (D) by any combination of (A), (B) and/or (C);
	 
	 	(iii)	 	giving the Participant the right to receive dividend payments
with respect to Restricted Stock, which payments may be either made currently
or credited to a nonqualified deferred compensation account for the Participant
that complies with the applicable requirements of Code Section 409A, provides
for the deferral of payment of such amounts to a specified employee or until a
specified event described in Code Section 409A(a)(2), and may be settled in
cash or Shares, as the Committee determines, it being understood that neither
dividend payments nor dividend equivalent payments shall be made with respect
to the Shares subject to an Award of Options, SARs, Performance Shares,
Performance Units or Restricted Stock Units;
	 
	 	(iv)	 	restrictions on resale or other disposition of Shares; and
	 
	 	(v)	 	compliance with federal or state securities laws and stock
exchange requirements.

     (b) Employment and Service. The issuance of an Award shall not confer upon a
Participant any right with respect to continued employment or service with the Company or any
Affiliate, or the right to continue as a Director. Unless determined otherwise by the Committee,
for purposes of the Plan and all Awards, the following rules shall apply:

	 	(i)	 	a Participant who transfers employment between the Company and
its Affiliates, or between Affiliates, will not be considered to have
terminated employment;
	 
	 	(ii)	 	a Participant who ceases to be a Non-Employee Director because
he or she becomes an employee of the Company or an Affiliate shall not be
considered to

15

 

	 	 	 	have ceased service as a Director with respect to any Award earlier than
such Participant’s termination of employment with the Company and its
Affiliates;
	 
	 	(iii)	 	a Participant who ceases to be employed by the Company or an
Affiliate and immediately thereafter becomes a Non-Employee Director, a
non-employee director of an Affiliate, or a consultant to the Company or any
Affiliate shall not be considered to have terminated employment until such
Participant’s service as a director of, or consultant to, the Company and its
Affiliates has ceased; and
	 
	 	(iv)	 	a Participant employed by an Affiliate will be considered to
have terminated employment when such entity ceases to be an Affiliate.

Notwithstanding the foregoing, with respect to an Award that is considered deferred compensation
subject to Code Section 409A, if a Participant’s termination of employment or service triggers the
payment of compensation under such Award, then the Participant will be deemed to have terminated
employment or service upon the Participant’s “separation from service” within the meaning of Code
Section 409A.

     (c) No Fractional Shares. No fractional Shares or other securities may be issued or
delivered pursuant to this Plan, and the Committee may determine whether cash, other securities or
other property will be paid or transferred in lieu of any fractional Shares or other securities, or
whether such fractional Shares or other securities or any rights to fractional Shares or other
securities will be canceled, terminated or otherwise eliminated.

     (d) Unfunded Plan. This Plan is unfunded and does not create, and should not be
construed to create, a trust or separate fund with respect to this Plan’s benefits. This Plan does
not establish any fiduciary relationship between the Company and any Participant or other person.
To the extent any person holds any rights by virtue of an Award granted under this Plan, such
rights are no greater than the rights of the Company’s general unsecured creditors.

     (e) Requirements of Law and Securities Exchange. The granting of Awards and the
issuance of Shares in connection with an Award are subject to all applicable laws, rules and
regulations and to such approvals by any governmental agencies or national securities exchanges as
may be required. Notwithstanding any other provision of this Plan or any award agreement, the
Company has no liability to deliver any Shares under this Plan or make any payment unless such
delivery or payment would comply with all applicable laws and the applicable requirements of any
securities exchange or similar entity, and unless and until the Participant has taken all actions
required by the Company in connection therewith. The Company may impose such restrictions on any
Shares issued under the Plan as the Company determines necessary or desirable to comply with all
applicable laws, rules and regulations or the requirements of any national securities exchanges.
Notwithstanding any provision of this Plan or any document pertaining to Awards granted hereunder
to the contrary, this Plan shall be so construed, interpreted and administered to meet the
applicable requirements of Code Section 409A to avoid a plan failure described in Code Section
409A(a)(1).

     (f) Governing Law. This Plan, and all agreements under this Plan, will be construed
in accordance with and governed by the laws of the State of Florida, without reference to any
conflict of law principles.

16

 

     (g) Limitations on Actions. Any legal action or proceeding with respect to this
Plan, any Award or any award agreement must be brought within one year (365 days) after the day the
complaining party first knew or should have known of the events giving rise to the complaint.

     (h) Construction. Whenever any words are used herein in the masculine, they shall
be construed as though they were used in the feminine in all cases where they would so apply; and
wherever any words are used in the singular or plural, they shall be construed as though they were
used in the plural or singular, as the case may be, in all cases where they would so apply. Title
of sections are for general information only, and this Plan is not to be construed with reference
to such titles.

     (i) Severability. If any provision of this Plan or any award agreement or any Award
(i) is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or as
to any person or Award, or (ii) would cause this Plan, any award agreement or any Award to violate
any law the Committee deems applicable, then such provision should be construed or deemed amended
to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the
determination of the Committee, materially altering the intent of this Plan, award agreement or
Award, then such provision should be stricken as to such jurisdiction, person or Award, and the
remainder of this Plan, such award agreement and such Award will remain in full force and effect.

17

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