Document:

Amended and Restated Forbearance Agreement, dated as of November 4, 2010

  
 EXHIBIT 10.2 

AMENDED AND RESTATED FORBEARANCE AGREEMENT 

This AMENDED AND RESTATED FORBEARANCE AGREEMENT (this “Agreement”) is made and entered into as of
November 4, 2010, by and among ANGIOTECH PHARMACEUTICALS, INC., a corporation organized under the laws of the Province of British Columbia, Canada (“Parent”), each of Parent’s Subsidiaries identified as a
“Borrower” on the signature pages hereof (such Subsidiaries, each a “Borrower”, and collectively, jointly and severally, the “Borrowers”), the Lenders (as defined in the Credit Agreement referred to below)
listed on the signature pages hereof and WELLS FARGO CAPITAL FINANCE, LLC, a Delaware limited liability company formerly known as Wells Fargo Foothill, LLC, in its capacity as arranger and administrative agent (“Agent”) for
the Lenders. 

W I T N E S S E T H:

 WHEREAS, the Parent, the Borrowers, the Agent and the Lenders are parties to that certain Credit
Agreement, dated as of February 27, 2009 (as amended, supplemented or modified, the “Credit Agreement”); 
 WHEREAS, the Parent has notified Agent and the Lenders that the Defaults and Events of Default set forth on Schedule I hereto either have occurred or may occur under the Credit Agreement
(each a “Designated Default” and, collectively, the “Designated Defaults”); 

WHEREAS, under the terms of the Credit Agreement, it is a condition to the applicable Lenders continuing to make
Advances to the Borrowers that, among other things, no Default or Event of Default shall have occurred and be continuing on the date of such extension of credit, nor shall result from the making thereof; 

WHEREAS, the Borrowers have requested that the Lenders with a Revolver Commitment continue to fund requested
Advances notwithstanding the existence of any Designated Default and that Agent and the Lenders forbear from exercising their rights and remedies under the Credit Agreement, the other Loan Documents and applicable law notwithstanding the existence
of any Designated Default, all of which Agent and the Lenders are willing to do on the terms and conditions set forth in this Agreement; 
 WHEREAS, the Parent, the Borrowers, the Agent and the Lenders are parties to that certain Forbearance Agreement dated as of September 30, 2010 (the “Existing Forbearance
Agreement”), pursuant to which the Agent and the Lenders agreed to forbear from taking any action or commencing any proceedings with respect to the enforcement of any of its or their rights or remedies under the Loan Documents or applicable
law as a result of certain of the Designated Defaults; and 
 WHEREAS, the Parent, the Borrowers, the
Agent and the Lenders agree to amend and restate the Existing Forbearance Agreement on and subject to the terms set forth herein. 

  

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the parties hereto
hereby agree that the Existing Forbearance Agreement is hereby amended and restated in its entirety as follows: 

Section 1. Definitions. Any capitalized terms used but not otherwise defined herein shall have
the meanings ascribed to such terms in the Credit Agreement. 

Section 2. Acknowledgments. Each of the above recitals is expressly incorporated herein and is
represented by the Parent and each Borrower to be true and correct. Without limiting the foregoing, the Parent and each Borrower acknowledges and agrees that, but for the effectiveness of this Agreement, (a) the Designated Defaults would occur
and be continuing, (b) the existence of the Designated Defaults would relieve the applicable members of the Lender Group from any obligation to extend any Advance or provide any other credit under the Credit Agreement or any other Loan
Documents, and (c) the existence of the Designated Defaults would permit the Lender Group, as applicable, to, among other things, (i) suspend or terminate any commitment to provide Advances or provide any other credit under the Credit
Agreement or any other Loan Document, (ii) accelerate all or any portion of the Obligations, (iii) charge interest on any and all of the Obligations at the default rate applicable under the Section 2.6(c) of the Credit Agreement,
(iv) commence any legal or other action to collect any or all of the Obligations from the Borrowers, any other Loan Party and/or any Collateral, (v) foreclose or otherwise realize on any or all of the Collateral, and/or appropriate,
set-off and apply to the payment of any or all of the Obligations, any or all of the Collateral, and/or (vi) take any other enforcement action or otherwise exercise any or all rights and remedies provided for by any or all of the Credit
Agreement, the other Loan Documents or applicable law. 
 Section 3. Reaffirmation of
Obligations, etc. The Parent and each Borrower hereby acknowledges that the Loan Documents and the Obligations constitute the valid and binding obligations of each such Person enforceable against each such Person in accordance with their
respective terms, and the Parent and each Borrower hereby reaffirms its obligations under the Loan Documents. Agent’s and the Lenders’ entry into this Agreement or any of the documents referenced herein, their negotiations with any party
with respect to any Loan Document, their conduct of any analysis or investigation of the operations of the Parent, any Borrower, any Collateral or any Loan Document, their acceptance of any payment from the Parent, any Borrower or any other party of
any payments made prior to or after the date hereof, their making of any Advance or other extension of credit prior to or after the date hereof, or any other action or failure to act on the part of any member of the Lender Group shall not, except as
expressly provided herein, (a) constitute a modification of any Loan Document, (b) constitute a waiver of any condition, Default or Event of Default under the Credit Agreement, including, without limitation, any Designated Default, or a
waiver of any term or provision of any Loan Document, (c) excuse any Loan Party from any of its obligations under any of the Loan Documents, or (d) toll the running of any time periods applicable to any rights and remedies of the Lender
Group or any member thereof, including, without limitation, any grace periods with respect to any Defaults under the Loan Documents or otherwise. The Parent and each Borrower agrees that it will not assert laches, waiver or any other defense to the
enforcement of any of the Loan Documents based upon any agreement or action by any member of the Lender Group referenced in, set forth in or contemplated by, this Agreement. 

  
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Section 4. Forbearance and Agreement to Continue to Lend. During the Forbearance Period (as
defined below): (a) the Lender Group shall not take any action or commence any proceedings with respect to the enforcement of any of its rights or remedies under the Loan Documents or applicable law as a result of any Designated Default; and
(b) the Lenders with Revolver Commitments shall, notwithstanding the existence of the Designated Defaults, continue to fund Advances (and extend any other credit provided for under the Credit Agreement) but subject to all other applicable
provisions of the Credit Agreement. 
 “Forbearance Period” shall mean the period commencing
upon the Effective Date and continuing until the earliest to occur of: (i) other than the Designated Defaults, any Event of Default (including any Event of Default arising from the failure to make the interest payment due October 1, 2010
on the Senior Subordinated Notes, including, without limitation, the acceleration of all or any of the Senior Notes or the taking of any action by any Indenture Trustee or any holder of any of the Senior Notes to obtain payment of all or any of the
Senior Notes); (ii) any Material Adverse Change since the date of this Agreement and (iii) the Specified Date. 
 “Specified Date” shall mean April 30, 2011. 

Section 5. Rights Upon Termination of Forbearance Period. The Parent and each Borrower
acknowledges and agrees that upon the termination of the Forbearance Period as provided in Section 4 hereof, Agent, on behalf of the Lender Group, shall be entitled to exercise any or all of its remedies available under the Loan
Documents or applicable law. 
 Section 6. Representations and Warranties. In order to
induce Agent and the Lenders to enter into this Agreement, the Parent and each Borrower hereby represents and warrants that: 
 6.01 No Default. At and as of the date of this Agreement and at and as of the Effective Date, other than the Designated Defaults, no Default or Event of Default exists. 

6.02 Representations and Warranties True and Correct. At and as of the date of this
Agreement, and after giving effect to this Agreement, except for the existence of the Designated Defaults, each of the representations and warranties contained in the Credit Agreement and the other Loan Documents, is true and correct in all material
respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) (except to the extent that such representations and warranties
relate solely to an earlier date, in which case they shall only be required to be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof) on such earlier date). 
 6.03
Corporate Power, Etc. The Parent and each Borrower (a) has all requisite corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby and (b) has taken all action,
corporate or otherwise, necessary to authorize the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby. 

  
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 6.04 Binding Effect. This Agreement has been duly executed and delivered by the Parent and each Borrower and constitutes the legal, valid and binding obligation of each such Person,
enforceable against each such Person in accordance with its terms, except as such enforceability may be limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws, now or hereafter in effect, relating to
or affecting the enforcement of creditors’ rights generally, and (b) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 

6.05 No Duress. This Agreement has been entered into without force or duress, of the free
will of the Parent and each Borrower. The Parent’s and each Borrower’s decision to enter into this Agreement is a fully informed decision and such Person is aware of all legal and other ramifications of such decision. 

6.06 Counsel. The Parent and each Borrower has read and understands this Agreement, has
consulted with and been represented by legal counsel in connection herewith, and has been advised by its counsel of its rights and obligations hereunder and thereunder. 

Section 7. Conditions. This Agreement shall be effective as of October 31, 2010 (the
“Effective Date”) upon the fulfillment, in a manner satisfactory to Agent of all of the following conditions precedent set forth in this Section 7: 

7.01 Execution of Documents. Agent shall have received (a) a copy of this Agreement
duly executed by Parent, the Borrowers, Agent and the Lenders, and (b) a copy of the Consent and Affirmation set forth as Exhibit A to this Agreement duly executed by the Guarantors. 

7.02 Representations and Warranties. As of the Effective Date, the representations and
warranties set forth in Section 6 hereof shall be true and correct. 
 7.03
Forbearance Fee. The Borrowers shall have paid to Agent, for its sole and separate account, a fully earned and nonrefundable forbearance fee equal to $50,000. 

7.04 Compliance with Terms. The Loan Parties shall have complied in all respects with the
terms hereof and of any other agreement, document, instrument or other writing to be delivered by any Loan Party in connection herewith. 
 Section 8. Release and Covenant Not to Sue. 
 8.01 The Parent and each Borrower hereby absolutely and unconditionally releases and forever discharges the Lender Group, and any and all of their respective participants, parent corporations,
subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers, agents and employees of any of the foregoing (each a “Released
Party”), from any and all claims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which the Parent or any Borrower has
had, now has or has made claim to have against any such person for or by reason of any act, omission, matter, cause or thing whatsoever arising at any time on or prior to and including the date of this Agreement, whether such claims, demands and
causes of action are matured or unmatured or known or unknown, and in each case, arising for or on account of, in relation to, or in any way in connection with, any of the Credit Agreement, any other Loan Document and/or the transactions thereunder
or related thereto. It is the intention of the Parent and each Borrower in providing this release that the same shall be effective as a bar to each and every claim, demand and cause of action specified, and in furtherance of this intention it waives
and relinquishes all rights and benefits under any applicable law, which provides that: 
 “A general
release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him might have materially affected his settlement with the debtor.” 

  
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 8.02 The Parent and each Borrower acknowledges that it may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such claims, demands, or
causes of action and agree that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts. The Parent and each Borrower understands, acknowledges and agrees that the release set forth
above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release. 

8.03 The Parent and each Borrower, on behalf of itself and its successors, assigns, and other legal
representatives, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Released Party above that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Released Party on the
basis of any claim released, remised and discharged by the Parent or such Borrower pursuant to the above release. If the Parent, any Borrower or any of its successors, assigns or other legal representations violates the foregoing covenant, the
Parent and each Borrower, for itself and its successors, assigns and legal representatives, agrees, jointly and severally, to pay, in addition to such other damages as any Released Party may sustain as a result of such violation, all attorneys’
fees and costs incurred by such Released Party as a result of such violation. 

Section 9. Miscellaneous. 

9.01 Continuing Effect. Except as specifically provided herein, the Credit Agreement and
the other Loan Documents shall remain in full force and effect in accordance with their respective terms and are hereby ratified and confirmed in all respects. 

9.02 No Waiver. This Agreement is limited as specified and the execution, delivery and
effectiveness of this Agreement shall not operate as a modification, acceptance or waiver of any provision of the Credit Agreement or any other Loan Document, except as specifically set forth herein. 

9.03 References. 

  
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 (a) From and after the Effective Date, the Credit Agreement, the other Loan Documents and all agreements, instruments and documents executed and delivered in connection with any of the foregoing shall
each be deemed modified hereby to the extent necessary, if any, to give effect to the provisions of this Agreement. 
 (b) From and after the Effective Date, (i) all references in the Credit Agreement to “this Agreement”, “hereto”, “hereof”, “hereunder” or words of like import
referring to the Credit Agreement shall mean the Credit Agreement as modified hereby and (ii) all references in the Credit Agreement, the other Loan Documents or any other agreement, instrument or document executed and delivered in connection
therewith to the “Credit Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Credit Agreement shall mean the Credit Agreement as modified hereby. 

9.04 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK. 
 9.05 Severability. The provisions of this
Agreement are severable, and if any clause or provision shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision, or part thereof, in such
jurisdiction and shall not in any manner affect such clause or provision in any other jurisdiction, or any other clause or provision in this Agreement in any jurisdiction. 

9.06 Counterparts. This Agreement may be executed in any number of counterparts, each of
which counterparts when executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A complete set of counterparts shall be lodged with the Borrowers and Agent. 

9.07 Headings. Section headings in this Agreement are included herein for convenience of
reference only and shall not constitute a part of this Agreement for any other purpose. 

9.08 Binding Effect; Assignment. This Agreement shall be binding upon and inure to the
benefit of the Parent, the Borrowers, the Lenders and Agent and their respective successors and assigns; provided, however, that no rights or obligations of the Parent or any Borrower under this Agreement shall be assigned or delegated
without the prior written consent of Agent. 
 9.09 Expenses. The Borrowers agree
to pay Agent upon demand for all Lender Group Expenses incurred by Agent in connection with the preparation, negotiation and execution of this Agreement and any document required to be furnished herewith. 

9.10 Submission of Agreement. The submission of this Agreement to the parties or their
agents or attorneys for review or signature does not constitute a commitment by Agent or any Lender to take or refrain from taking any action contemplated hereby and this Agreement shall have no binding force or effect until all of the conditions to
the effectiveness of this Agreement have been satisfied as set forth herein. 

  
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 9.11 Modification. This Agreement may not be amended, waived or modified in any manner without the written consent of the party against whom the amendment, waiver or modification is sought
to be enforced. 
 9.12 Existing Forbearance Agreement. This Agreement supersedes
in all respects the Existing Forbearance Agreement. 
 [Signature pages follow] 

  
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 IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written. 

 

			
	 ANGIOTECH PHARMACEUTICALS, INC.,

as Parent

		
	 By:
	 	 /s/ Jay Dent

		 	 Title: Vice President, Finance

	
	 AFMEDICA, INC.,

as a Borrower

		
	 By:
	 	 /s/ K. Thomas Bailey

		 	 Title: President

	
	 AMERICAN MEDICAL INSTRUMENTS HOLDINGS,
INC.,
 as a Borrower

		
	 By:
	 	 /s/ K. Thomas Bailey

		 	 Title: President

	
	 ANGIOTECH AMERICA, INC.,

as a Borrower

		
	 By:
	 	 /s/ K. Thomas Bailey

		 	 Title: President

 [Signature Page to Amended and Restated Forbearance Agreement] 

  

  
 
			
	 ANGIOTECH BIOCOATINGS CORP., 

as a Borrower

		
	 By:
	 	 /s/ K. Thomas Bailey

		 	 Title: President

	
	 ANGIOTECH PHARMACEUTICALS (US), INC.,

as a Borrower

		
	 By:
	 	 /s/ K. Thomas Bailey

		 	 Title: President

	
	 B.G. SULZLE, INC., 

as a Borrower

		
	 By:
	 	 /s/ K. Thomas Bailey

		 	 Title: President

	
	 MANAN MEDICAL PRODUCTS, INC., 

as a Borrower

		
	 By:
	 	 /s/ K. Thomas Bailey

		 	 Title: President

 [Signature Page to Amended and Restated Forbearance Agreement] 

  

  
 
			
	 MEDICAL DEVICE TECHNOLOGIES, INC.,

as a Borrower

		
	 By:
	 	 /s/ K. Thomas Bailey

		 	 Title: President

	
	 NEUCOLL, INC.,

as a Borrower

		
	 By:
	 	 /s/ K. Thomas Bailey

		 	 Title: President

	
	 QUILL MEDICAL, INC.,

as a Borrower

		
	 By:
	 	 /s/ K. Thomas Bailey

		 	 Title: President

	
	 SURGICAL SPECIALTIES CORPORATION,

as a Borrower

		
	 By:
	 	 /s/ K. Thomas Bailey

		 	 Title: President

 [Signature Page to Amended and Restated Forbearance Agreement] 

  

  
 
			
	 WELLS FARGO CAPITAL FINANCE, LLC,

as Agent and as a Lender

		
	 By:
	 	 /s/ Dennis J. Rebman

		 	 Title: Vice President

 [Signature Page to Amended and Restated Forbearance Agreement] 

  

  
 SCHEDULE I

 DESIGNATED DEFAULTS 
  

	 1.
	 Default arising under Section 8.7 of the Credit Agreement as a result of Parent’s failure to make the interest payment due October 1,
2010 on the Senior Subordinated Notes on a timely basis. 

  

	 2.
	 Event of Default arising under Section 8.13 of the Credit Agreement as a result of Parent’s failure to make the interest payment due
October 1, 2010 on the Senior Subordinated Notes on a timely basis. 

  

	 3.
	 Default or Event of Default arising under Section 8.8 of the Credit Agreement as a result of Parent’s and Borrowers’ inability to
make the representation and warranty set forth in Section 4.7 of the Credit Agreement due to the existence of that certain case filed in the United States District Court for the Middle District of North Carolina on October 1, 2010 and
captioned QSR Holdings, Inc. v. AngioTech Pharmaceuticals, Inc., AngioTech Pharmaceuticals (US), Inc. and Quill Medical, Inc., 1:10-cv-754, the Demand for Arbitration filed by QSR Holdings, Inc. against the same defendants, and other
litigation among the litigants in such case in connection with the Agreement and Plan of Merger, dated May 25, 2006, by and among Parent, Angiotech Pharmaceuticals, Inc., Quaich Acquisition, Inc. and Quill Medical, Inc. (collectively, the
“Quill Litigation”). 

  

	 4.
	 Default or Event of Default arising under Section 8.8 of the Credit Agreement as a result of Parent’s and Borrowers’ inability to
make the representation and warranty set forth in Section 4.9 of the Credit Agreement due to (a) the existence of the Quill Litigation and (b) Parent’s failure to make the interest payment due October 1, 2010 on the Senior
Subordinated Notes on a timely basis. 

  

	 5.
	 Event of Default arising under Section 8.2 of the Credit Agreement as a result of Parent’s and Borrowers’ failure to comply with
Section 5.1 of the Credit Agreement due to Parent’s inability to deliver audited financial statements of Parent and its Subsidiaries for the fiscal year ended December 31, 2010 without a “going concern” qualification or
exception. 

  

  
 EXHIBIT A

 CONSENT AND REAFFIRMATION 

In connection with the foregoing Amended and Restated Forbearance Agreement (the “Agreement”), each of
the undersigned, being a Guarantor (as defined in the Credit Agreement referenced in the Agreement) under the Guaranty (as defined in the Credit Agreement referenced in the Agreement), hereby (i) acknowledges and agrees to the terms of the
Agreement, (ii) makes each acknowledgment of the Parent and the Borrowers set forth in Section 2 of the Agreement and agrees that each such acknowledgment of the Parent and the Borrowers is binding upon such Guarantor, and
(iii) confirms and agrees that its Guaranty is and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that, upon the effectiveness of, and on and after the date of the Agreement, each
reference in such Guaranty to the Credit Agreement (as defined in the Agreement), “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as
modified by the Agreement. Although Agent and the Lenders have informed the Guarantors of the matters set forth above, and each Guarantor has acknowledged the same, each Guarantor understands and agrees that neither the Lender Group nor the Bank
Product Providers have any duty under the Credit Agreement, any Guaranty or any other agreement with any Guarantor to so notify any Guarantor or to seek such an acknowledgement, and nothing contained herein is intended to or shall create such a duty
as to any transaction hereafter. 
 Each Guarantor hereby absolutely and unconditionally releases and forever
discharges each Released Party (as defined in the Agreement), from any and all claims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or
otherwise, which such Guarantor has had, now has or has made claim to have against any such person for or by reason of any act, omission, matter, cause or thing whatsoever arising at any time on or prior to and including the date of the Agreement,
whether such claims, demands and causes of action are matured or unmatured or known or unknown, and in each case, arising for or on account of, in relation to, or in any way in connection with, any of the Credit Agreement, any Guaranty, any other
Loan Document and/or the transactions thereunder or related thereto. It is the intention of each Guarantor in providing this release that the same shall be effective as a bar to each and every claim, demand and cause of action specified, and in
furtherance of this intention it waives and relinquishes all rights and benefits under any applicable law, which provides that: 
 “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him might have materially
affected his settlement with the debtor.” 

  

  
 Each
Guarantor acknowledges that it may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such claims, demands, or causes of action and agree that this instrument shall be and remain
effective in all respects notwithstanding any such differences or additional facts. Each Guarantor understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an
injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release. Each Guarantor, on behalf of itself and its successors, assigns, and other legal representatives,
hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Released Party above that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Released Party on the basis of any claim
released, remised and discharged by such Guarantor pursuant to the above release. If any Guarantor or any of its successors, assigns or other legal representations violates the foregoing covenant, such Guarantor, for itself and its successors,
assigns and legal representatives, agrees to pay, in addition to such other damages as any Released Party may sustain as a result of such violation, all attorneys’ fees and costs incurred by such Released Party as a result of such violation.

 [Remainder of this page intentionally left blank.] 

  

  
 IN
WITNESS WHEREOF, each Guarantor has executed this Consent and Reaffirmation on and as of the date of the Agreement. 
  

			
	 ANGIOTECH PHARMACEUTICALS, INC.,

a corporation organized under the laws of the Province of British Columbia, Canada

		
	 By:
	 	 /s/ Jay Dent

		 	 Title: SVP, Finance

	
	 0741693 B.C. LTD., 
 a corporation organized under the laws of the Province of British Columbia, Canada

		
	 By:
	 	 /s/ Jay Dent

		 	 Title: President

	
	 ANGIOTECH FLORIDA HOLDINGS, INC.,

a Delaware corporation

		
	 By:
	 	 /s/ K. Thomas Bailey

		 	 Title: President

  

  
 
			
	 ANGIOTECH INTERNATIONAL HOLDINGS, CORP.,

 a corporation organized under the laws of the Province of Nova Scotia, Canada

		
	 By:
	 	 /s/ Jay Dent

		 	 Title: PresidentEmployment Agreement

  
 Exhibit 10.5

 

 

 ALLSCRIPTS-MISYS HEALTHCARE SOLUTIONS, INC. 

EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made as of this 10th day of October, 2008, by and between Allscripts-Misys Healthcare Solutions, Inc., a corporation organized and
existing under the laws of the State of Delaware (“Company”) and Jeffery A. Surges (“Executive”). 
 RECITALS 
 WHEREAS, Company and Misys Healthcare Systems LLC have
entered into an Agreement and Plan of Merger, dated as of March 17, 2008 (the “Merger Agreement”), pursuant to which (among other transactions contemplated in the Merger Agreement), at the “Effective Time” (as
defined in the Merger Agreement), a subsidiary of Company shall be merged with and into Misys Healthcare Systems LLC (such merger, the “Merger”); 
 WHEREAS, Executive currently serves as President – Hospital Solutions Group of Company; 
 WHEREAS, Company desires to continue to employ Executive in such position(s) following the Effective Time, subject to the terms and conditions of this Agreement; and 

WHEREAS, Executive desires to be employed by Company in the aforesaid capacity subject to the terms and conditions of this
Agreement. 
 NOW THEREFORE, in consideration of the foregoing premises, of the mutual agreements and covenants contained
herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows, effective as of immediately prior to the Effective Time (but subject to the consummation of the
Merger): 
 AGREEMENT 
 1. Employment. 
 Company hereby agrees to employ Executive, and
Executive hereby accepts employment, as President, Hospital Solutions Group of Company, pursuant to the terms of this Agreement. Executive shall have the duties and responsibilities and perform such administrative and managerial services of that
position as are set forth in the bylaws of Company (the “Bylaws”) or as shall be delegated or assigned to Executive by the Chief Executive Officer of Company from time to time. Executive shall carry out his responsibilities
hereunder on a full-time basis for and on behalf of Company; provided that Executive shall be entitled to devote time to outside boards of directors, personal investments, civic and charitable activities, and personal education and development, so
long as such activities do not interfere with or conflict with Executive’s duties hereunder. Notwithstanding the foregoing, Executive agrees that, during the 

  
 1 

 

 

  

 
term of this Agreement, Executive shall not act as an officer of any entity other than Company without the prior written consent of Company. 

2. Effective Date and Term. 
 The term of Executive’s employment by Company under this Agreement (the “Employment Period”) shall commence as of the date on which the Effective Time occurs (the “Effective
Date”) and shall continue in effect through the third anniversary of the Effective Date, unless earlier terminated as provided herein. Thereafter, unless Company or Executive shall elect not to renew the Employment Period upon the
expiration of the initial term or any renewal term, which election shall be made by providing written notice of nonrenewal to the other party at least ninety (90) days prior to the expiration of the then current term, the Employment Period
shall be extended for an additional twelve (12) months. If Company elects not to renew the Employment Period at the end of the initial term or any renewal term, such nonrenewal shall be treated as a termination of the Employment Period and
Executive’s employment without Cause by Company for the limited purpose of determining the payments and benefits available to Executive (i.e., Executive shall be entitled to the severance/benefits set forth in Section 4.5.1). If Executive
elects not to renew the Employment Period, the same shall constitute a termination of Executive’s employment and the Employment Period by Executive without Cause, and Executive shall only be entitled to the payments and benefits set forth in
Section 4.5.3. 
 3. Compensation and Benefits. 

In consideration for the services Executive shall render under this Agreement, Company shall provide or cause to be provided to Executive
the following compensation and benefits: 
 3.1 Base Salary. During the Employment Period, Company shall pay to
Executive an annual base salary at a rate of $325,000 per annum, subject to all appropriate federal and state withholding taxes, which base salary shall be payable in accordance with Company’s normal payroll practices and procedures.
Executive’s base salary shall be reviewed annually prior to the beginning of each fiscal year of Company during the Employment Period by the Board of Directors of Company (the “Board”), or a committee of the Board, and may be
increased in the sole discretion of the Board, or such committee of the Board, based on Executive’s performance during the preceding Fiscal Year. For purposes of this Agreement, the term “Fiscal Year” shall mean the fiscal year
of Company. Executive’s base salary, as such base salary may be increased annually hereunder, is hereinafter referred to as the “Base Salary.” 
 3.2 Performance Bonus. 
 3.2.1 Executive shall be
eligible to receive cash bonuses in accordance with this Section 3.2 (each a “Performance Bonus”). Payment of any Performance Bonus will be subject to the sole discretion of the Board or a committee of the Board in consultation
with the Chief Executive Officer, and the amount of any such Performance Bonus will be determined by, and based upon criteria selected by, the Board or such committee in consultation with the Chief

  
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Executive Officer. Based upon the foregoing exercise of discretion, Executive’s target Performance Bonus shall be 75% of his salary (the “Target Performance Bonus”), but
may, based on performance, exceed such amount. Performances Bonuses shall be paid according the terms of the bonus plan or program in which Executive participates from time to time; provided that any Performance Bonus for the period ending on the
Effective Date shall be payable in calendar year 2009. 
 3.3 Benefits. During the Employment Period and as
otherwise provided hereunder, Executive shall be entitled to the following: 
 3.3.1 Vacation. Executive shall be
entitled to twenty (20) business days per Fiscal Year of paid vacation, such vacation time not to be cumulative (i.e., vacation time not taken in any Fiscal Year shall not be carried forward and used in any subsequent Fiscal Year). 

3.3.2 Participation in Benefit Plans. Executive shall be entitled to health and/or dental benefits, including immediate
coverage for Executive and his eligible dependents, which are generally available to Company’s senior executive employees and as provided by Company in accordance with its group health insurance plan coverage. In addition, Executive shall be
entitled to participate in any profit sharing plan, retirement plan, group life insurance plan or other insurance plan or medical expense plan maintained by Company for its senior executives generally, in accordance with the general eligibility
criteria therein. 
 3.3.3 Physical Examination. Executive shall be entitled to receive reimbursement for the cost
of one general physical examination per twelve (12) month period during the term of the Agreement from a physician chosen by Executive in his reasonable discretion. 
 3.3.4 Perquisites. Executive shall be entitled to such other benefits and perquisites that are generally available to Company’s senior executive employees and as provided in accordance
with Company’s plans, practices, policies and programs for senior executive employees of Company. 
 3.3.5
Indemnification. Executive shall be entitled to indemnification (including immediate advancement of all legal fees with respect to any claim for indemnification) and directors’ and officers’ insurance coverage, to the extent
made available to other senior executives, in accordance with the Bylaws and all other applicable policies and procedures of Company. 
 3.4 Expenses. Company shall reimburse Executive for proper and necessary expenses incurred by Executive in the performance of his duties under this Agreement from time to time upon
Executive’s submission to Company of invoices of such expenses in reasonable detail and subject to all standard policies and procedures of Company with respect to such expenses. 

  
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 3.5 Stock Awards. Executive shall be eligible to participate in any
applicable stock bonus, stock option, or similar plan implemented by Company and generally available to its senior executive employees. Company intends to recommend to the Compensation Committee of the Board that Executive be granted an award under
a Company stock incentive plan, with a grant-date value of $1,000,000, which award shall vest in four equal annual installments on the first four anniversaries of the Effective Date. Up to 20% of such grant may be made under an equity plan or
program of Misys plc (“Parent”) in accordance with the terms and provisions of such equity plan or program. Executive acknowledges and agrees that the portion of such grant relating to Company (as opposed to Parent) common stock
(the “Company Stock Award”) shall be conditioned upon the establishment of a new Company stock incentive plan or an amendment that increases the number of shares of Company common stock available for award under an existing Company
stock incentive plan, and that such establishment or amendment must be approved by the shareholders of Company and Parent, in each case in accordance with the law, rules and regulations applicable to such approvals. If, on the day prior to each of
the first four anniversaries of the grant date of the Company Stock Award, Executive has remained continuously employed since the Effective Date, but the shareholder approval conditions described in the previous sentence have not been satisfied,
one-quarter of the Company Stock Award (and any rights or obligations arising therefrom) shall be canceled as of each such anniversary day without payment or other consideration therefor except Company shall pay Executive, on the tenth day after
each such anniversary, a cash lump sum equal to the number of shares of Company common stock underlying the Company Stock Award so canceled on such anniversary day multiplied by the closing price per share of Company’s common stock on the
business day next following the applicable anniversary. 
 3.6 Consummation and Retention Bonus.

 3.6.1 On the later to occur of (i) the tenth day after the Effective Date and (ii) January 2, 2009,
Company shall pay Executive a cash lump sum payment equal to $413,950 (the “Retention Payment”). If the Retention Payment is to be made on a date later than the tenth day after the Effective Date as provided above, within 10 days of
the Effective Date Company shall establish a “rabbi trust” and deposit the amounts payable under this Section 3.6.1 into such trust, which amounts shall accumulate interest calculated at the short-term Applicable Federal Rate for the
month in which the Effective Date occurs and the Retention Payment (including accumulated interest) shall be made from such trust to Executive. 
 3.6.2 In addition, so long as (i) Executive has remained continuously employed from the Effective Date through the first anniversary of the Effective Date, (ii) Executive’s
employment is terminated by Company without Cause prior to the first anniversary of the Effective Date or (iii) Executive terminates employment for Constructive Discharge, Company shall pay Executive a cash lump sum equal to $73,050, on the
tenth day after the first anniversary of the Effective Date. 
 3.7 Payment upon a Change of Control. So long as
Executive has remained continuously employed from the Effective Date through the date of a Change of Control, (i) all unvested Company equity awards held by executive shall vest upon the Change of Control, and

  
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(ii) Company shall pay Executive, within ten (10) days following the occurrence of the Change of Control, a cash lump sum equal to the sum of Executive’s Base Salary and Target
Performance Bonus. In addition, if a Change of Control occurs, and, prior to the Change of Control, Company or representatives of the third party effecting the Change of Control (as applicable) do not offer Executive a Comparable Job following the
Change of Control, then, so long as Executive has remained continuously employed from the Effective Date through the date of a Change of Control, whether or not Executive continues to be employed by Company or a successor to Company following the
Change of Control, Company will pay Executive, within ten (10) days following the occurrence of the Change of Control, an additional cash lump sum equal to the sum of Executive’s Base Salary and Target Performance Bonus (the
“Additional Change of Control Payment”). For purposes of this Agreement, a “Comparable Job” shall mean employment following the Change of Control (i) with substantially the same duties and responsibilities as
were held by Executive prior to the Change of Control (excluding, for this purpose, changes following the Change of Control (x) to Executive’s reporting responsibilities and (y) arising by reason of Company ceasing to be a public
company), (ii) at the same location at which Executive provides services prior to the Change of Control or a location within fifty (50) miles of such location and (iii) at the same or increased Base Salary and Target Performance Bonus
levels as were in effect prior to the Change of Control. 
 4. Termination of the Services Prior To the Expiration Date.

 Executive’s employment hereunder and the Employment Period may be terminated at any time as follows (the effective
date of such termination hereinafter referred to as the “Termination Date”): 
 4.1 Termination upon
Death or Disability of Executive. 
 4.1.1 Executive’s employment hereunder and the Employment Period
shall terminate immediately upon the death of Executive. In such event, all rights of Executive and/or Executive’s estate (or named beneficiary) shall cease except for the right to receive payment of the amounts set forth in Section 4.5.4
of the Agreement. 
 4.1.2 Company may terminate Executive’s employment hereunder and the Employment Period upon the
disability of Executive. For purposes of this Agreement, Executive shall be deemed to be “disabled” if Executive, as a result of illness or incapacity, shall be unable to perform substantially his required duties for a period of three
(3) consecutive months or for any aggregate period of three (3) months in any six (6) month period. In the event of a dispute as to whether Executive is disabled, Company may refer Executive to a licensed practicing physician of
Company’s choice, and Executive agrees to submit to such tests and examination as such physician shall deem appropriate to determine Executive’s capacity to perform the services required to be performed by Executive hereunder. In such
event, the parties hereby agree that the decision of such physician as to the disability of Executive’s shall be final and binding on the parties. Any termination of the Employment Period under this Section 4.1.2 shall be effected without
any adverse effect on Executive’s rights to receive benefits under any disability policy of Company, but shall not be treated as a termination without Cause. 

  
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 4.2 Termination by Company for Cause. Company may terminate
Executive’s employment hereunder and the Employment Period for Cause (as defined herein) upon written notice to Executive, which termination shall be effective on the date specified by Company in such notice; provided, however, that Executive
shall have a period of ten (10) days (or such longer period not to exceed thirty (30) days as would be reasonably required for Executive to cure such action or inaction) after the receipt of the written notice from Company to cure the
particular action or inaction, to the extent a cure is possible. For purposes of this Agreement, the term “Cause” shall mean: 
 4.2.1 the willful or grossly negligent failure by Executive to perform his duties and obligations hereunder in any material respect, other than any such failure resulting from the disability of
Executive; 
 4.2.2 Executive’s conviction of a crime or offense involving the property of Company, or any crime or
offense constituting a felony or involving fraud or moral turpitude; provided that, in the event that Executive is arrested or indicted for a crime or offense related to any of the foregoing, then Company may, at its option, place Executive on paid
leave of absence, pending the final outcome of such arrest or indictment; 
 4.2.3 Executive’s violation of any law,
which violation is materially and demonstrably injurious to the operations or reputation of Company; 
 4.2.4
Executive’s material violation of any generally recognized policy of Company or Executive’s refusal to follow the lawful directions of the Chief Executive Officer, or Executive’s insubordination to his supervisor; or 

4.2.5 Executive’s failure during the Employment Period to retain the number shares of Company common stock set forth in
Appendix A for a period of more than 30 days. 
 4.3 Termination without Cause. Either party may terminate
Executive’s employment and the Employment Period without Cause upon thirty (30) days’ prior written notice to the other party. Upon termination of Executive’s employment with Company for any reason, Executive shall be deemed to
have resigned from all positions with the other members of Company and its subsidiaries (provided, that any such deemed resignations shall not affect Executive’s entitlement (if any) to severance pay and benefits hereunder). 

4.4 Termination by Executive for Constructive Discharge. 

4.4.1 Executive may terminate Executive’s employment and the Employment Period, in accordance with the process set forth
below, a result of a Constructive Discharge. For purposes of this Agreement “Constructive Discharge” shall mean the occurrence of any of the following after the Effective Time: 

 

	 	(i)	 a failure of Company to meet its obligations in any material respect under this Agreement, including, without limitation, (x) any reduction
in the Base Salary or (y) any failure to pay the Base Salary (other than, in the 

  
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case of clause (y), the inadvertent failure to pay a de minimis amount of the Base Salary, which payment is immediately made by Company upon notice from Executive); 

 

	 	(ii)	a material diminution in or other substantial adverse alteration in the nature or scope of Executive’s responsibilities with Company from those in effect
immediately following the Effective Time (it being understood that Company will have appointed an Executive Chairman as of the Effective Time who will serve as an officer of Company and take an active role in the management and operation of
Company); or 

  

	 	(iii)	Executive has been asked to relocate his principal place of business to a location that is more than fifty (50) miles from Company’s offices located at
the Merchandise Mart Plaza, Chicago, Illinois. 

 4.4.2 For purposes of this Agreement, a “Change
of Control” shall mean any one of the following events following the Effective Date (it being understood that the consummation of the Merger and the other transactions contemplated by the Merger Agreement, individually or collectively,
shall not constitute a Change of Control): 
  

	 	(i)	the date of acquisition by any person or group other than Parent or any affiliate of Parent or any subsidiary of the Company (or any employee benefit plans(or
related trust) of the Company or any of its subsidiaries or Parent) acquires beneficial ownership of securities possessing more than thirty percent (30%) of the total combined voting power of the Company Group’s then outstanding voting
securities which generally entitle the holder thereof to vote for the election of directors (“Voting Power”), provided, however, that no Change of Control shall be deemed to have occurred solely by reason of any such acquisition by
a corporation with respect to which, after such acquisition, more than sixty percent (60%) of the then outstanding shares of common stock of such corporation and the Voting Power of such corporation are then beneficially owned, directly or
indirectly, by the persons who were the beneficial owners of the stock and Voting Power of Company immediately before such acquisition, in substantially the same proportions as their ownership immediately before such acquisition; or

  

	 	(ii)	 the date the individuals who constitute the Board as of immediately following the Effective Time (the “Incumbent Board”) cease for any
reason other than their deaths to constitute at least a majority of the Board; provided that any individual who becomes a director after the Effective Time whose election or nomination for election by Company’s stockholders was approved by a
vote of at least a majority of the directors then comprising the Incumbent Board shall be considered, for purposes of this Section, as though such individual were a member of the Incumbent

  
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Board, but excluding, for this purpose, any such individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the
directors of Company (as such terms are used in Rule 14a-11 under the 1934 Act); or 

  

	 	(iii)	Company effects (a) a merger or consolidation of Company with one or more corporations or entities, as a result of which the holders of the outstanding
Voting Stock of Company immediately prior to such merger, reorganization or consolidation hold less than 50% of the Voting Power of the surviving or resulting corporation or entity immediately after such merger or consolidation; (b) a
liquidation or dissolution of Company; or (c) a sale or other disposition of all or substantially all of the assets of Company other than to an entity of which Company owns at least 50% of the Voting Power; 

provided, however, that in no event shall the acquisition by any person or group of the beneficial ownership of any amount of stock or voting securities
of Parent (including an acquisition by a merger, reorganization or consolidation) constitute a Change of Control. 
 4.4.3
For purposes of the foregoing definition, the terms “beneficially owned” and “beneficial ownership” and “person” shall have the meanings ascribed to them in SEC rules 13d-5(b) under the 1934 Act, and
“group” means two or more persons acting together in such a way to be deemed a person for purposes of Section 13(d) of the 1934 Act. Further, notwithstanding anything herein to the contrary, the definition of Change of Control set
forth herein shall not be broader than the definition of “change in control event” as set forth under Section 409A of the Code, and the guidance promulgated thereunder, and if a transaction or event does not otherwise fall within such
definition of change of control event, it shall not be deemed a Change of Control for purposes of this Agreement. 
 4.4.4
In the event of a Constructive Discharge, Executive shall have the right to terminate his employment hereunder and receive the benefits set forth in Section 4.5.1 below, upon delivery of written notice to Company no later than the close of
business on the sixtieth (60th) day following the effective date of a Constructive Discharge; provided, however, that such termination shall not be effective until the expiration of thirty (30) days after receipt by Company of such written
notice if Company has not cured such Constructive Discharge within the 30-day period. If Company so effects a cure, the Constructive Discharge notice shall be deemed rescinded and of no force or effect. Notwithstanding the foregoing, such notice and
lapse of time shall not be required with respect to any event or circumstance which is the same or substantially the same as an event or circumstance with respect to which notice and an opportunity to cure has been given within the previous six
(6) months. The effective date of a Constructive Discharge shall be the date of the Executive’s “separation from service” (within the meaning of Treas. Reg. Section 1.409A-1(h)). 

4.5 Rights upon Termination. Upon termination of Executive’s employment and the Employment Period, the following shall
apply: 

  
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 4.5.1 Termination by Company Without Cause or for Constructive Discharge. If
Company terminates Executive’s employment and the Employment Period without Cause, or if Executive terminates Executive’s employment and the Employment Period as a result of a Constructive Discharge, in each case either (x) prior to a
Change of Control, or (y) after the second anniversary of a Change of Control, Executive shall be entitled to receive payment of any Base Salary amounts that have accrued but have not been paid as of the Termination Date, and the unpaid
Performance Bonus, if any, with respect to the Fiscal Year preceding the Fiscal Year in which the Termination Date occurs (such Performance Bonus, if any, to be determined in the manner that it would have been determined, and payable at the time it
would have been payable, under Section 3.2 had there been no termination of the Employment Period). In addition, subject to Sections 4.5.2 and 4.7, below, Company shall, subject to Section 10.14, be obligated to pay Executive (or
provide Executive with) the following benefits as severance: 
  

	 	(i)	provided such termination is after the first anniversary of the Effective Date, an amount equal to Executive’s Base Salary plus Executive’s Target
Performance Bonus, payable in twelve (12) equal monthly installments commencing on the Termination Date, such amount to be payable regardless of whether Executive obtains other employment and is compensated therefor (but only so long as
Executive is not in violation of Section 5 hereof) (with the first two installments to be paid on the sixtieth (60th) day following the Termination Date and the remaining ten (10) installments being paid on the ten following monthly
anniversaries of such date); 

  

	 	(ii)	continuation of Executive’s then current enrollment (including family enrollment, if applicable) in all health and/or dental insurance benefits set forth in
Section 3.2.2 for a period of twelve (12) months following the Termination Date, with Executive’s contribution to such plans as if Executive were employed by Company, such contributions to be paid by Executive in the same period
(e.g., monthly, bi-weekly, etc.) as all other employees of Company; provided, however that Company may terminate such coverage if payment from Executive is not made within ten (10) days of the date on which Executive receives written notice
from Company that such payment is due; and provided, further, that such benefits may be discontinued earlier to the extent that Executive becomes entitled to comparable benefits from a subsequent employer; and 

 

	 	(iii)	 provided such termination is after the first anniversary of the Effective Date, upon the Termination Date (or, for awards subject to the
satisfaction of a performance condition, subject to the satisfaction of such performance condition and upon the satisfaction of such performance condition, and based on the level of performance achieved) a pro-rata portion of any unvested stock
option, restricted stock, restricted stock unit or other equity award granted to Executive pursuant to Section 3.5 equal shall vest, which pro-rata portion shall be equal to (a) the number of shares of such award

  
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that would vest on the normal vesting date of such award, multiplied by (b) a fraction, the numerator of which is the number of days elapsed since the last regular vesting date of such award
(or the grant date, if no portion of such award has yet vested), and the denominator of which is the number of days between the last regular vesting date (or grant date, as the case may be) and the normal vesting date. 

4.5.2 Severance Upon Termination following a Change of Control. If Executive terminates Executive’s employment and the
Employment Period pursuant to Section 4.4 or Company terminates Executive’s employment pursuant to Section 4.3 within the period beginning on the date of a Change of Control and ending on the second anniversary of the Change of
Control, then Executive shall, subject to Section 4.7, be entitled to receive the benefits described in Sections 4.5.1(ii) (but not the payments described in Section 4.5.1(i)) and a lump sum amount of cash equal to (x) the sum of
(A) Executive’s Base Salary plus (B) Executive’s Target Performance Bonus minus (y) the Additional Change of Control Payment, if previously paid to Executive (or, if clause (x) minus clause (y) would produce a
negative number, then the payment pursuant to this Section 4.5.2 shall be zero). Subject to Sections 10.14, the lump sum to which Executive is entitled hereunder shall be paid on the sixtieth (60th) day following the Termination Date.

 4.5.3 Termination With Cause by Company or Without Constructive Discharge by Executive. If Company terminates
Executive’s employment and the Employment Period with Cause, or if Executive terminates Executive’s employment and the Employment Period other than as a result of a Constructive Discharge, Company shall be obligated to pay Executive
(i) any Base Salary amounts that have accrued but have not been paid as of the Termination Date; and (ii) subject to Section 10.14, the unpaid Performance Bonus, if any, with respect to the Fiscal Year preceding the
Fiscal Year in which the Termination Date occurs (such Performance Bonus, if any, to be determined in the manner it would have been determined, and payable at the time it would have been payable, under Section 3.2 had there been no termination
of the Employment Period). 
 4.5.4 Termination Upon Death or Disability. If Executive’s employment and the
Employment Period is terminated because of the death or disability of Executive, Company shall, subject to Section 10.14, be obligated to pay Executive or, if applicable, Executive’s estate, the following amounts: (i) earned but
unpaid Base Salary; and (ii) the unpaid Performance Bonus, if any, with respect to the Fiscal Year preceding the Fiscal Year in which the Termination Date occurs (such Performance Bonus, if any, to be determined in the manner it would have been
determined, and payable at the time it would have been payable, under Section 3.2 had there been no termination of the Employment Period). 
 4.6 Effect of Notice of Termination. Any notice of termination by Company, whether for Cause or without Cause, may specify that, during the notice period, Executive need not attend to any
business on behalf of Company. 

  
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 4.7 Requirement of a Release; Exclusivity of Severance Payments under this
Agreement. As a condition to the receipt of the severance payments and termination benefits to be provided to Executive pursuant to this Section 4 upon termination of Executive’s employment, Executive shall execute and deliver to
Company a general release of employment claims against Company and its affiliates in a form reasonably satisfactory to Company within forty-five (45) days following the Termination Date (provided, that Executive shall not be required to release
any rights under this Agreement). In addition, the severance payments and termination benefits to be provided to Executive pursuant to this Section 4 upon termination of Executive’s employment shall constitute the exclusive payments in the
nature of severance or termination pay or salary continuation which shall be due to Executive upon a termination of employment and shall be in lieu of any other such payments under any severance plan, program, policy or other arrangement which has
heretofore been or shall hereafter be established by Company or any of its affiliates. 
 5. Noncompetition and
Confidentiality. 
 5.1 Covenant Not to Compete. During the Employment Period and for a period of
one (1) year after the expiration or earlier termination of the Employment Period, Executive shall not, (i) directly or indirectly act in concert or conspire with any person employed by Company or any of its Subsidiaries in order to
engage in or prepare to engage in or to have a financial or other interest in any business which is a Direct Competitor (as defined below); or (ii) serve as an employee, agent, partner, shareholder, director or consultant for, or in any
other capacity participate, engage or have a financial or other interest in any business which is a Direct Competitor (provided, however, that notwithstanding anything to the contrary contained in this Agreement, Executive may own up to two percent
(2%) of the outstanding shares of the capital stock of a company whose securities are registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “1934 Act”). For purposes of this Agreement, the
term “Direct Competitor” shall mean any person or entity engaged in the business of marketing or providing within the continental United States prescription products or services for pharmacy benefit management products or services,
including, without limitation, (i) prepackaged prescription products or services, (ii) point of care pharmacy dispensing systems, (iii) point of care decision support software for physicians, (iv) mail service pharmacy products
or services, (v) pharmaceuticals or pharmaceutical delivery systems, (vi) electronic medical record or practice management software, (vii) homecare, home health or hospice support software, and (vii) electronic processing of
healthcare transactions. 
 5.2 No Solicitation of Employees. During the Employment Period and for a period of one
(1) year following the expiration or earlier termination of the Employment Period for any reason, Executive shall not, directly or indirectly, whether for its own account or for the account of any other individual or entity,
(i) employ, hire or solicit for employment, or attempt to employ, hire or solicit for employment, any Employee (as defined below), (ii) divert or attempt to divert, directly or indirectly, or otherwise interfere in a material
fashion with or circumvent the relationship of Company or any of its Subsidiaries with, any Employees, or (iii) induce or attempt to induce, directly or indirectly, any Employee to terminate his employment or other business relationship
with Company or any of its Subsidiaries. For purposes of this Section 5.2, 

  
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“Employee” shall mean any person who is or was employed by Company or any of its Subsidiaries during the Employment Period; provided, however, that “Employee” shall not
include any person (a) whose employment with Company or a Subsidiary of Company was terminated by Company or such Subsidiary without cause, or (b) who was not employed by Company or any of its Subsidiaries at any time during
the six (6) month period immediately prior to the Termination Date. 
 5.3 Confidential Information. Company
has advised Executive, and Executive acknowledges, that it is the policy of Company to maintain as secret and confidential all Protected Information (as defined below), and that Protected Information has been and will be developed at substantial
cost and effort to Company and its Subsidiaries. Executive shall not at any time, directly or indirectly divulge, furnish or make accessible to any person, firm, corporation, association or other entity (otherwise than as may be required in the
regular course of Executive’s employment), nor use in any manner, either during the Employment Period or after the termination of the Employment Period for any reason, any Protected Information, or cause any such information of Company or any
of its Subsidiaries to enter the public domain, except as required by law or court order. “Protected Information” means trade secrets, confidential and proprietary business information of Company, and any other information of
Company or any of its Subsidiaries, including, without limitation, customer lists (including potential customers), sources of supply, processes, plans, materials, pricing information, internal memoranda, marketing plans, internal policies, and
products and services which may be developed from time to time by Company or any of its Subsidiaries and the agents or employees of any of them, including Executive; provided, however, that information that is in the public domain (other than as a
result of a breach of this Agreement), approved for release by Company or a Subsidiary (as applicable) or lawfully obtained from third parties who are not bound by a confidentiality agreement with Company or any of its Subsidiaries, is not Protected
Information. 
 5.4 Injunctive Relief. Executive acknowledges and agrees that the restrictions imposed upon him by
this Section 5 and the purpose for such restrictions are reasonable and are designed to protect the Protected Information and the continued success of Company without unduly restricting Executive’s future employment by others. Furthermore,
Executive acknowledges that in view of the Protected Information of Company and its Subsidiaries which Executive has or will acquire or has or will have access to and the necessity of the restriction contained in this Section 5, any violation
of the provisions of this Section 5 would cause irreparable injury to Company and its successors in interest with respect to the resulting disruption in their operations. By reason of the foregoing, Executive consents and agrees that if he
violates any of the provisions of this Section 5, Company and its successors in interest, as the case may be, shall be entitled, in addition to any other remedies that they may have, including monetary damages, to an injunction to be issued by
a court of competent jurisdiction, restraining Executive from committing or continuing any violation of this Section 5. 

  
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 6. Certain Additional Payments by Company. 

Company agrees that: 
 6.1 Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution by Company to or for the benefit of Executive (whether paid or
payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Section 6) (a “Payment”) would be subject to the excise
tax imposed by Section 4999 of the Code or if any interest or penalties are incurred by Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, being hereafter collectively referred to as the
“Excise Tax”), then Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by Executive of all taxes (including interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payment. 
 6.2 Subject to the provisions of Section 6.3, below, all determinations
required to be made under this Section 6, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by the accounting
firm which is then serving as the auditors for Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to Company and Executive within fifteen (15) business days of the receipt of notice from
Executive that there has been a Payment, or such earlier time as is requested by Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity, or group effecting the Change of Control, Executive shall
appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne
solely by Company. Any Gross-Up Payment, as determined pursuant to this Section 6, shall be paid by Company to Executive (or to the applicable taxing authority on Executive’s behalf) within five (5) days of the receipt of the
Accounting Firm’s determination or, if later, on the due date for such taxes. If the Accounting Firm determines that no Excise Tax is payable by Executive, it shall furnish Executive with a written opinion that failure to report the Excise Tax
on Executive’s applicable federal income tax return would not result in the imposition of a negligence or similar penalty. Any good faith determination by the Accounting Firm shall be binding upon Company and Executive. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by Company should have been made
(“Underpayment”), consistent with the calculations required to be made hereunder. In the event that Company exhausts its remedies pursuant to Section 6.3, below, and Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by Company to or for the benefit of Executive. 

  
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 6.3 Executive shall notify Company in writing of any claim by the Internal
Revenue Service that, if successful, would require the payment by Company of a Gross-Up Payment. Such notification shall be given as soon as practicable but no later than fifteen (15) business days after Executive is informed in writing of such
claim and shall apprise Company of the nature of such claim and the date on which such claim is requested to be paid. Executive shall not pay such claim prior to the expiration of the thirty (30) day period following the date on which Executive
gives such notice to Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If Company notifies Executive in writing prior to the expiration of such period that it desires to contest such
claim, Executive shall: 
 6.3.1 Give Company any information reasonably requested by Company relating to such claim;

 6.3.2 Take such action in connection with contesting such claim as Company shall reasonably request in writing from
time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by Company; 
 6.3.3 Cooperate with Company in good faith in order effectively to contest such claim; and 
 6.3.4 Permit Company to participate in any proceedings relating to such claim; provided, however, that Company shall bear and pay directly all costs and expenses (including additional interest and
penalties) incurred in connection with such contest and shall indemnify and hold Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such
representation and payment of costs an expenses. Without limiting the foregoing provisions of this Section 6.3, Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and
all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct Executive to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner; and Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as Company shall determine; provided further, however,
that if Company directs Executive to pay such claim and sue for a refund, Company shall advance the amount of such payment to Executive on an interest-free basis and shall indemnify and hold Executive harmless, on an after-tax basis, from any Excise
Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations
relating to payment of taxes for the taxable year of Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, Company’s control of the contest shall be limited to issues
with respect to which a Gross-Up Payment would be payable hereunder and Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 

  
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 6.4 If, after the receipt by Executive of an amount advanced by Company pursuant
to Section 6.3 above, Executive becomes entitled to receive any refund with respect to such claim, Executive shall (subject to Company’s complying with the requirements of said interest paid or credited thereon, after taxes applicable
thereto) promptly pay such refund to Company. If, after the receipt by Executive of an amount advanced by Company pursuant to said Section 6.3, a determination is made that Executive shall not be entitled to any refund with respect to such
claim and Company does not notify Executive in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after such determination, then such advance shall be forgiven and shall not be required to be
repaid; and the amount of such advance shall offset, to the extent thereof, the amount of the Gross-Up Payment required to be paid. 
 6.5 Subject to any earlier time limits set forth in this Section 6, all payments and reimbursements to which Executive is entitled under this Section 6 shall be paid to or on behalf of
Executive not later than the end of the taxable year of Executive next following the taxable year of Executive in which Executive (or Company, on Executive’s behalf) remits the related taxes (or, in the event of an audit or litigation with
respect to such tax liability, not later than the end of the taxable year of Executive next following the taxable year of Executive in which there is a final resolution of such audit or litigation (whether by reason of completion of the audit, entry
of a final and non-appealable judgment, final settlement, or otherwise)). 
 7. No Set-Off or Mitigation. 

Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall
not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which Company may have against Executive or others. In no event shall Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to Executive under any of the provisions of this Agreement and, except as otherwise provided herein, such amounts shall not be reduced whether or not Executive obtains other employment. 

8. Payment of Certain Expenses. 
 Company agrees to pay promptly as incurred and not less than on a monthly basis, to the fullest extent permitted by law, all legal fees and expenses which Executive may reasonably incur as a result of any
contest by Company, Executive or others of the validity or enforceability of or liability under, any provision of the Agreement (including as a result of any contest initiated by Executive about the amount of any payment due pursuant to this
Agreement), plus in each case interest on any delayed payment at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code; provided, however, that Company shall not be obligated to make such payment with respect to any
contest in which Company prevails over Executive, and, in such case, Executive shall return to Company any payments previously paid to or on behalf of Executive. 

  
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 9. Indemnification. 

To the fullest extent permitted by law, Company shall indemnify Executive (including the advancement of expenses) for any judgments,
fines, amounts paid in settlement and reasonable expenses, including attorney’s fees, incurred by Executive in connection with the defense of any lawsuit or other claim to which Executive is made a party by reason of being an officer, director
or employee of Company or any of its Subsidiaries. 
 10. Miscellaneous. 

10.1 Valid Obligation. This Agreement has been duly authorized, executed and delivered by Company and has been duly
executed and delivered by Executive and is a legal, valid and binding obligation of Company and of Executive, enforceable in accordance with its terms. 
 10.2 No Conflicts. Executive represents and warrants that the performance by him of his duties hereunder will not violate, conflict with, or result in a breach of any provision of, any
agreement to which he is a party. 
 10.3 Applicable Law. This Agreement shall be construed in accordance with the
laws of the State of Illinois, without reference to Illinois’ choice of law statutes or decisions. 
 10.4
Severability. The provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability of any one or more of the provisions hereof shall not affect the validity or enforceability of any other provision. In the
event any clause of this Agreement is deemed to be invalid, the parties shall endeavor to modify that clause in a manner which carries out the intent of the parities in executing this Agreement. 

10.5 No Waiver. The waiver of a breach of any provision of this Agreement by any party shall not be deemed or held to be a
continuing waiver of such breach or a waiver of any subsequent breach of any provision of this Agreement or as nullifying the effectiveness of such provision, unless agreed to in writing by the parties. 

10.6 Notices. All demands, notices, requests, consents and other communications required or permitted under this Agreement
shall be in writing and shall be personally delivered or sent by facsimile machine (with a confirmation copy sent by one of the other methods authorized in this Section), or by commercial overnight delivery service, to the parties at the addresses
set forth below: 
  

			
	 To Company:
	  	 Allscripts-Misys Healthcare Solutions, Inc.
 222 Merchandise Mart Plaza
 Suite 2024
 Chicago, IL 60654
 Attention: Company Secretary or General
Counsel

  
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	 To Executive:
	  	At the address or fax number most recently contained in Company’s records

 Notices shall be deemed given upon the earliest to occur of (i) receipt by the party to whom such notice is directed, if hand delivered; (ii) if sent by facsimile machine, on the
day (other than a Saturday, Sunday or legal holiday in the jurisdiction to which such notice is directed) such notice is sent if sent (as evidenced by the facsimile confirmed receipt) prior to 5:00 p.m. Central Time and, if sent after
5:00 p.m. Central Time, on the day (other than a Saturday, Sunday or legal holiday in the jurisdiction to which such notice is directed) after which such notice is sent; or (iii) on the first business day (other than a Saturday,
Sunday or legal holiday in the jurisdiction to which such notice is directed) following the day the same is deposited with the commercial carrier if sent by commercial overnight delivery service. Each party, by notice duly given in accordance
therewith may specify a different address for the giving of any notice hereunder. 
 10.7 Assignment of Agreement.
This Agreement shall be binding upon and inure to the benefit of Executive and Company, their respective successors and permitted assigns and Executive’s heirs and personal representatives. Neither party may assign any rights or obligations
hereunder to any person or entity without the prior written consent of the other party. This Agreement shall be personal to Executive for all purposes. 
 10.8 Entire Agreement; Amendments. Except as otherwise provided herein, this Agreement contains the entire understanding between the parties, and there are no other agreements or
understandings between the parties with respect to Executive’s employment by Company and his obligations thereto. Without limiting the generality of the preceding sentence, as of immediately prior to the Effective Time (but subject to the
occurrence thereof), this Agreement shall supersede in its entirety the Employment Agreement, dated as of December 31, 2007, to which Executive and Company are parties (the “Prior Employment Agreement”), except that the
provision of Section 6 of the Prior Agreement shall not be superseded and shall continue to apply in respect of the Merger, which the parties acknowledge constituted a Change of Control under the Prior Employment Agreement. Executive
acknowledges that he is not relying upon any representations or warranties concerning his employment by Company except as expressly set forth herein. No amendment or modification to the Agreement shall be valid except by a subsequent written
instrument executed by the parties hereto. In the event that the transactions contemplated by the Merger Agreement shall be abandoned or otherwise terminated, (i) this Agreement shall cease to be of force or effect, and (ii) the Prior
Employment Agreement shall remain in full force and effect. 
 10.9 Dispute Resolution and Arbitration. The
following procedures shall be used in the resolution of disputes: 
 10.9.1 Dispute. In the event of any dispute
or disagreement between the parties under this Agreement (excluding an action for injunctive relief as provided in Section 5.4), the disputing party shall provide written notice to the other party that such dispute exists. The parties will then
make a good faith effort to resolve the dispute or disagreement. If the dispute is 

  
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not resolved upon the expiration of fifteen (15) days from the date a party receives such notice of dispute, the entire matter shall then be submitted to arbitration as set forth in
Section 10.9.2. 
 10.9.2 Arbitration. If the dispute or disagreement between the parties has not been
resolved in accordance with the provisions of Section 10.9.1 above, then any such controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration to be held in Chicago, Illinois, in
accordance with the rules of the American Arbitration Association then in effect. Any decision rendered herein shall be final and binding on each of the parties and judgment may be entered thereon in the appropriate state or federal court. The
arbitrators shall be bound to strict interpretation and observation of the terms of this Agreement. Company shall pay the costs of arbitration. 
 10.10 Survival. For avoidance of doubt, the provisions of Sections 4.5, 5, 8 and 9 of this Agreement shall survive the expiration or earlier termination of the Employment Period.

 10.11 Headings. Section headings used in this Agreement are for convenience of reference only and shall
not be used to construe the meaning of any provision of this Agreement. 
 10.12 Counterparts. This Agreement may
be executed in counterparts, each of which shall be deemed an original, but both of which together shall constitute one and the same instrument. 
 10.13 Taxes. Executive shall be solely responsible for taxes imposed on Executive by reason of any compensation and benefits provided under this Agreement and all such compensation and
benefits shall be subject to applicable withholding. 
 10.14 Section 409A of the Code. It is intended that
this Agreement will comply with Section 409A of the Code (and any regulations and guidelines issued thereunder) to the extent the Agreement is subject thereto, and the Agreement shall be interpreted on a basis consistent with such intent. If an
amendment of the Agreement is necessary in order for it to comply with Section 409A, the parties hereto will negotiate in good faith to amend the Agreement in a manner that preserves the original intent of the parties to the extent reasonably
possible. No action or failure by Company in good faith to act, pursuant to this Section 10.14, shall subject Company to any claim, liability, or expense, and Company shall not have any obligation to indemnify or otherwise protect Executive
from the obligation to pay any taxes pursuant to Section 409A of the Code. 
 In addition, notwithstanding any provision to the contrary in
this Agreement, if Executive is deemed on the date of his “separation from service” (within the meaning of Treas. Reg. Section 1.409A-1(h)) to be a “specified employee” (within the meaning of Treas. Reg.
Section 1.409A-1(i)), then with regard to any payment that is required to be delayed pursuant to Section 409A(a)(2)(B) of the Code (the “Delayed Payments”), such payment shall not be made prior to the earlier of
(i) the expiration of the six (6) month period measured from the date of his “separation from service” and (ii) the date of his death. Any payments due under this Agreement other than the Delayed Payments shall be paid in
accordance with the normal payment dates 

  
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specified herein. In no case will the delay of any of the Delayed Payments by Company constitute a breach of Company’s obligations under this Agreement. For all purposes under this
Agreement, reference to Executive’s “termination of employment” (and corollary terms) with Company shall be construed to refer to Executive’s “separation from service” (as determined under Treas. Reg.
Section 1.409A-1(h), as uniformly applied by Company) with Company. 
 In addition, to the extent that any reimbursement, fringe benefit or
other, similar plan or arrangement in which Executive participates during the term of Executive’s employment under this Agreement or thereafter provides for a “deferral of compensation” within the meaning of Section 409A of the
Code, (i) the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or
health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), and (ii) subject to any shorter time periods provided herein, any reimbursement or payment of an expense under such plan or arrangement must
be made on or before the last day of the calendar year following the calendar year in which the expense was incurred. 

10.15 Payment by Subsidiaries. Executive acknowledges and agrees that Company may satisfy its obligations to make payments
to Executive under this Agreement by causing one or more of its subsidiaries to make such payments to Executive. Executive agrees that any such payment made by any such subsidiary shall fully satisfy and discharge Company’s obligation to make
such payment to Executive hereunder (but only to the extent of such payment). 
 [Signature page follows] 

  
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 IN WITNESS
WHEREOF, the parties have executed this Agreement as of the date and year first above written, to be effective at the Effective Time. 
  

			
	 /s/ Jeffery A. Surges

	Jeffery A. Surges
	
	ALLSCRIPTS-MISYS HEALTHCARE SOLUTIONS, INC.
	
	 /s/ Nicoa Dunne

	By:	 	 Nicoa Dunne

	Title:	 	 SVP Human Resources

  
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 Appendix A 
 Required Share Ownership 
 At all times during the Employment Period,
Executive shall retain shares of Company common stock with a fair market value as shown in the following schedule. For this purpose, “fair market value” shall be determined on the first day of the applicable portion of the Employment
Period by reference to the closing price of the Company common stock on such date as reported on the principal exchange on which the Company common stock is traded. Options to purchase Company common stock, restricted Company common stock and
restricted stock units denominated in shares of Company common stock shall be included for purposes of determining whether these guidelines are satisfied, except that the fair market value with respect to an option shall be reduced by the exercise
price with respect to such option. At the Company’s reasonable request, the Executive shall provide the Company with evidence to the Company’s satisfaction that the Executive is in compliance with these guidelines. 

 

			
	 During the following portion of the

Employment Period:
	  	 Fair market value to be maintained

during applicable portion of the

Employment Period:

		
	From the Effective Date until the day prior to the first anniversary of the Effective Date:	  	 100% of the Executive’s Base Salary

on the Effective Date.

		
	From the first anniversary of the Effective Date until the day prior to the second anniversary of the Effective Date:	  	 66% of the Executive’s Base Salary

on the Effective Date.

		
	From the second anniversary of the Effective Date until the day prior to the third anniversary of the Effective Date:	  	 33% of the Executive’s Base Salary

on the Effective Date.

		
	From and after the third anniversary of the Effective Date:	  	0

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