Document:

exv10w4

 

Exhibit 10.4

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”), effective as of April 1, 2007 (the “Effective
Date”), is between Dolan Media Company, a Delaware corporation (the “Company”), and Mark W.C.
Stodder (“Executive”).

PRELIMINARY RECITALS

     The Company currently employs Executive as its Executive Vice President/Business Information
Division.

     The Company desires to continue to employ Executive and Executive desires to be employed by
the Company as the Executive Vice President/Business Information Division of the Company on the
terms and conditions contained herein.

AGREEMENT

     In consideration of the premises, the mutual covenants of the parties hereinafter set forth
and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

	1.	 	Employment.

     1.1 Engagement of Executive. The Company agrees to employ Executive as the Executive
Vice President/Business Information Division of the Company and Executive accepts such employment
by the Company for a period of two (2) years beginning on the Effective Date and ending on March
31, 2009 (the “Employment Period”); provided, however, that, effective on April 1, 2008, the
Employment Period shall, on a daily basis, be automatically extended by one (1) day, such that at
any time, the remaining Employment Period shall be one (1) year; provided further that such
day-to-day extensions shall cease in the event either the Company or Executive, as the case may be,
provides written notice of such cessation to the other party and such cessation of the automatic
extensions shall be effective as of the date of delivery of such notice as determined pursuant to
Section 5.2 below. Notwithstanding anything to the contrary contained herein, the Employment Period
is subject to termination by the Company or Executive pursuant to Section 3 below.

     1.2 Duties and Powers.

          (a) Service with the Company. During the Employment Period, Executive shall (i) serve
as the Company’s Executive Vice President/Business Information Division and shall report directly
to the Chief Executive Officer and the Board of Directors of the Company (the “Board”), (ii) have
such responsibilities, duties and authorities, and render such services for the Company, that
Executive has or renders for the Company as of the Effective Date, and (iii) have such other
responsibilities, duties and authorities, and render such other services for the Company, that are
consistent with Executive’s position as Executive Vice President/Business Information Division, as
the Chief Executive Officer or the Board may from time to time reasonably direct.

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          (b) Service with Subsidiaries and other Affiliates. During the Employment Period,
Executive shall (i) have such responsibilities, duties and authorities, and render such services
for the Company’s subsidiaries and other affiliates that (x) Executive renders for such
subsidiaries and other affiliates as of the Effective Date and (y) that are consistent with
Executive’s position as Executive Vice President/Business Information Division of the Company, as
the Board or the Chief Executive Officer may from time to time reasonably direct; and (ii) at the
reasonable request of the Board or Chief Executive Officer, serve as an officer or director of each
subsidiary or other affiliate of the Company; provided that Executive shall not be entitled
to any additional compensation for serving as an officer or director of the Company’s subsidiaries
and other affiliates.

          (c) Performance of Duties. Executive will devote his best efforts, energies and
abilities and his full business time, skill and attention (except for permitted vacation periods
and reasonable periods of illness) to the business and affairs of the Company, its subsidiaries and
other affiliates and shall perform the duties and carry out the responsibilities assigned to him,
to the best of his ability and in a diligent, trustworthy, businesslike and efficient manner.
Executive acknowledges that his duties and responsibilities will require his full-time business
efforts and agrees that during the Employment Period he will not engage in any other business
activity or have any business pursuits or interests, except activities or interests which do not
conflict with the business of the Company, its subsidiaries and other affiliates and do not
interfere with the performance of Executive’s duties hereunder; provided that Executive
shall be permitted to (i) continue to serve on civic and charitable boards and committees (provided
that in March of each year hereunder, Executive furnishes the Board with a list of the civic and
charitable boards and committees that Executive is then serving on) and (ii) manage his personal
investments and affairs, in each case so long as the activities referred to in clauses (i) and (ii)
above otherwise comply with the terms and conditions of this Agreement, including the provisions of
this Section 1.2(c); provided further that Executive shall not, without the prior
written consent of the Board, be permitted to serve on any for profit entity’s board of directors
or committee or hold any similar position with respect to any such entity.

	2.	 	Compensation.

     2.1 Base Salary. Beginning on January 1, 2007 and ending December 31, 2007, the
Company will pay Executive a base salary (“Base Salary”) at the annual rate of $225,000. For the
calendar year beginning January 1, 2008, and for each subsequent calendar year during the
Employment Period, the Company will pay Executive a Base Salary equal to the Base Salary for the
previous calendar year increased by the positive percentage change, if any, in the CPI (as defined
below) from the month of December from two (2) years prior to the month of December from the
previous year (e.g., the Base Salary effective for the 2008 calendar year will be equal to the Base
Salary from 2007 increased by an amount equal to the positive percentage change, if any, in the CPI
from the month of December in 2006 to the month of December in 2007). The Base Salary shall be
payable in regular installments in accordance with the Company’s general payroll practices for
salaried employees. For purposes hereof, “CPI,” for any month of December, means Consumer Price
Index for All Urban Consumers, U.S. City Average, all items, not seasonally adjusted, for such
month and compiled upon data (with the base 1982-84 equals 100) for such month (the “Index”). In
the event that publication or issuance of the Index is discontinued or suspended, the CPI shall be
an index published or issued by the United States

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Department of Labor or any bureau or agency thereof that computes information from substantially
the same statistical categories and substantially the same geographic areas as those computed in
the Index and that weights such categories in a substantially similar way to the weighting of the
Index at the Effective Date. In the event that the Index is calculated upon a base year other than
1982-84, such adjustments to the CPI for each calendar year shall be calculated as necessary to
ensure that the CPI for each such calendar year is based on the same Index. Executive’s Base
Salary shall be subject to annual review by the Compensation Committee of the Board (the
“Committee”) and may be further increased (but not decreased) from time to time as the Board
determines.

     2.2 Annual Bonus. During the Employment Period, in addition to the Base Salary,
Executive shall be eligible to receive an annual performance-based cash bonus (“Annual Bonus”) with
respect to each fiscal year of the Company. The Annual Bonus shall be based upon quantitative and
qualitative performance targets. Those targets, as well as the Annual Bonus target amount, shall
be established by the Committee in its sole discretion in accordance with the Company’s annual
bonus plan.

     2.3 Benefits. In addition to the Base Salary and Annual Bonus (if any) payable to
Executive hereunder, the Executive shall be entitled to four (4) weeks of paid vacation time per
year hereunder; club membership(s) as may be approved from time to time by the Committee; and all
other pension, welfare and fringe benefits and perquisites that are generally made available to
other senior executive officers of the Company (to the extent possible under applicable law) during
the Employment Period (the “Benefits”); provided that the Company does not guarantee the
adoption or continuance of any particular benefit plan or program or particular benefit.

     2.4 Reimbursement of Expenses. The Company shall pay or reimburse Executive for
reasonable expenses incurred in the discharge of his duties hereunder, in accordance with the
Company’s executive expense reimbursement policy as in effect from time to time. Executive shall
provide the Company with such vouchers or receipts as the Company deems reasonably necessary to
verify the amount of such expenses. The Company shall pay the reasonable fees, expenses and
disbursements incurred by Executive in connection with the negotiation and preparation of this
Agreement; provided, however, that such amount shall be paid as soon as
administratively possible and in no event later than March 15, 2008.

     2.5 Taxes, etc. All compensation payable to Executive hereunder is stated in gross
amount and shall be subject to all applicable withholding taxes, other normal payroll deductions
and any other amounts required by law to be withheld.

     2.6 Legal Fees and Expenses. The Company shall pay to Executive all reasonable legal
fees and expenses incurred by Executive in disputing in good faith any termination of his
employment hereunder or in seeking in good faith to obtain or enforce any benefit or right under
this Agreement, provided that Executive shall have a reasonable basis for his position. Without
limiting the generality of the forgoing, if any amount is not paid hereunder when due, including,
but not limited to, any amount of Base Salary, Annual Bonus (if any), fees or expenses, the amount
thereof shall bear interest from the due date thereof until paid in full at the rate of 10% per
annum; provided, however, that the reimbursement for fees and expenses pursuant to this

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Section 2.6 shall be made no later than the end of the calendar year following the calendar
year in which such legal fees or expenses were incurred. This Section 2.6 shall remain in effect
throughout the Employment Period and for a period of five (5) years following the termination of
the Employment Period.

	3.	 	Termination.

     3.1 Termination.

          (a) The Employment Period (i) shall automatically terminate immediately upon Executive’s
death, (ii) may be terminated at any time by the Board as set forth herein for Cause or without
Cause, or by reason of Executive’s Permanent Disability, upon written notice to Executive, (iii)
may be terminated at any time by Executive with Good Reason upon written notice to the Company, or
(iv) may be terminated at any time by Executive without Good Reason and without liability upon
thirty (30) days prior written notice to the Company.

          (b) In addition to the capitalized terms defined elsewhere in this Agreement, the following
capitalized terms shall have the following meanings when used in this Agreement:

          “Cause” means the occurrence of any of the following events:

          (i) a material breach by Executive of any of the terms and conditions of this Agreement, which
breach remains uncured ten (10) days after receipt by Executive of written notice of such breach;

          (ii) Executive continues to willfully and materially fail to perform his duties hereunder, or
engages in excessive absenteeism unrelated to illness or permitted vacation, ten (10) days after a
written demand for performance is delivered to Executive by the Board or its representative, which
written demand specifically identifies the manner in which the Board believes that Executive has
not performed Executive’s duties;

          (iii) Executive’s commission of theft, fraud, misappropriation or embezzlement in connection
with the Company’s or its subsidiaries’ or affiliates’ business; or

          (iv) Executive’s commission of criminal misconduct constituting a felony;

          provided that, (x) for purposes of this definition, no act or failure to act by
Executive shall be “willful” if it is done, or omitted to be done, in good faith by Executive with
a reasonable belief that Executive’s act or omission was in the best interests of the Company, (y)
the Board shall not be permitted to terminate the Employment Period for Cause unless and until the
Board shall have delivered to Executive a copy of a resolution duly adopted by the affirmative vote
of not less a majority of the members of the Board at a meeting of the Board called and held for
such purpose (after reasonable notice is provided to Executive and Executive is given an
opportunity, together with counsel, to be heard before the Board), finding that, in the good faith
opinion of the Board, the Executive is guilty of the conduct described in the definition of “Cause”
and specifying the particulars thereof in reasonable detail, and (z) the definition of “Cause”
hereunder shall supersede any definition of “cause” contained in any employee benefit

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or incentive compensation plan or agreement now or hereafter adopted by the Company and
applicable to Executive that provides for a forfeiture or payment upon the Executive’s violation of
a Company policy or similar such conduct under such plan or agreement.

     “Good Reason” means (i) the Company moves its principal offices from the Minneapolis-St. Paul
metropolitan area and requires Executive to relocate to the vicinity of such new offices; (ii) any
material diminution by the Company in Executive’s duties or responsibilities inconsistent with the
terms hereof, which diminution remains uncured thirty (30) days after receipt by the Company of
written notice of such breach; (iii) the Company materially breaches any of its obligations
hereunder, which breach remains uncured thirty (30) days after receipt by the Company of written
notice of such breach; or (iv) a diminution in Base Salary or the target amount of any Annual
Bonus, or a material diminution in Benefits available to the Executive on the Effective Date or as
hereafter may be made available to the Executive, in each case other than: (x) an inadvertent and
isolated act or omission that is promptly cured upon notice by Executive to the Company or (y) any
diminution of Benefits applicable to the other senior executives of the Company.

     “Permanent Disability” as used herein shall mean that (i) Executive has begun receiving
disability income insurance payments under any disability income insurance policy that the Company
is then maintaining for the benefit of executive-level employees or (ii) if the Company is not then
maintaining disability income insurance for executive-level employees, Executive is unable to
perform, by reason of physical or mental incapacity, his duties or obligations under this Agreement
for a period of sixty (60) days in any consecutive 120-day period. The Board shall determine,
according to the facts then available, whether and when Executive’s Permanent Disability has
occurred. Such determination shall be reasonable and the Board, in making such determination,
shall take into consideration the opinion of Executive’s personal physician, if reasonably
available.

     “Person” means any individual, partnership, limited liability company, corporation, joint
venture, trust, or other entity.

     “Separation from Service” means Executive’s termination of employment from the Company which
constitutes a “separation from service,” as such term is defined under Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”) or applicable guidance or regulations thereunder.

     3.2 Compensation After Termination. (a) If the Employment Period is terminated (i) by
reason of Executive’s death, (ii) by the Company for Cause or by reason of Executive’s Permanent
Disability, or (iii) by Executive without Good Reason, then the Company shall have no further
obligations hereunder, including under Section 2, or otherwise with respect to Executive’s
employment from and after the termination date, except (x) for payment of Executive’s Base Salary
and Benefits accrued through the date of termination and any Annual Bonus due pursuant to Section
2.2 for the immediately preceding fiscal year to the extent unpaid on the date of such termination,
and (y) in the event the Employment Period is terminated due to Executive’s death or Permanent
Disability, Executive shall receive a pro rata Annual Bonus as provided in Section 3.2(b)(iv), and
the Company shall continue to have all other rights available hereunder at law, in equity or
otherwise in connection with such termination; provided, however,

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such pro rata Annual Bonus, if any, shall be paid at such time as such Annual Bonus would
normally be required to be paid under the Company’s annual bonus plan; provided
further, that if the Employment Period is terminated by reason of Executive’s Permanent
Disability and such pro rata Annual Bonus would be payable under the Company’s annual bonus plan
earlier than the date which is six (6) months following the date on which Executive incurs a
Separation from Service with the Company, payment of such Annual Bonus shall be made on the date
which is six (6) months following Executive’s Separation from Service.

     (b) If the Employment Period is terminated by the Company without Cause or by Executive with
Good Reason, then, in either case, the Company shall pay, or provide, to Executive:

          (i) Executive’s Base Salary and Benefits accrued through the date of termination;

          (ii) any Annual Bonus due pursuant to Section 2.2 for the immediately preceding fiscal year to
the extent unpaid on the date of such termination;

          (iii) an amount equal to one (1) year of the annual Base Salary in effect at the time the
Executive incurs such termination (determined without regard for any diminution in such Base Salary
constituting Good Reason for Executive’s resignation), payable to Executive in a lump sum on the
date which is six (6) months following Executive’s Separation from Service; and

          (iv) a pro-rated portion (based upon the number of days elapsed in the fiscal year in which
the Employment Period is terminated through the date of such termination) of the Annual Bonus, if
any, that would have been payable to Executive for such fiscal year pursuant to Section 2.2
(determined without regard for any diminution in the target amount of such Annual Bonus opportunity
constituting Good Reason for Executive’s resignation) had Executive remained employed by the
Company for the entire fiscal year. Such pro rata Annual Bonus, if any, shall be paid at such time
as such Annual Bonus would normally be required to be paid under the Company’s annual bonus plan;
provided, however, that if such pro rata Annual Bonus would be payable under the
Company’s annual bonus plan earlier than the date which is six (6) months following the date on
which Executive incurs a Separation from Service with the Company, payment of such Annual Bonus
shall be made on the date which is six (6) months following Executive’s Separation from Service;

provided that the Company’s obligation under Sections 3.2(b)(iii) and (iv) is contingent on
Executive’s execution, delivery and non-rescission of a general release of all claims against the
Company in the form of Exhibit A attached hereto.

Except for its obligations under this Section 3.2(b) and as otherwise provided in Section 3.3, the
Company shall have no further obligations hereunder, including under Section 2, or otherwise with
respect to Executive’s employment from and after the termination date.

     3.3 Continuation of Medical and Dental Benefits. (a) If the Employment Period is
terminated (i) by the Company without Cause or (ii) by Executive with Good Reason, then, during the
eighteen (18) months following such termination (such period, the “Benefits Period”), the Company
shall provide medical and dental benefits to Executive and his covered dependents

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on the same terms and conditions as if Executive continued to remain an active employee of the
Company (in all events below determined without regard for any diminution of such coverage
constituting Good Reason for his resignation hereunder), subject to Executive timely electing
coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
(“COBRA”) on the following terms and conditions:

          (A) So long as the terms of the medical and dental plan (the “Plan”) under which the medical
and dental benefits are provided allow Executive’s continued participation therein, the Company
will continue to offer Executive medical and dental coverage substantially equivalent to the
medical and dental coverage which Executive was receiving immediately prior to such termination;

          (B) If during the Benefits Period Executive is no longer eligible to receive the medical and
dental coverage provided under subparagraph (A) under the Plan but is eligible for a conversion
option providing comparable benefits (with full coverage credit for any preexisting condition
limitation) as those provided to Executive and his covered dependents under the Plan as he was
receiving immediately prior to such termination, then Executive shall exercise such conversion
option if directed by the Company and the Company shall thereafter pay the premium for such medical
and dental coverage to be provided under such conversion option for the duration of the Benefits
Period; and

          (C) If during the Benefits Period Executive and his covered dependents are no longer eligible
to receive medical and dental coverage under the Plan and are not eligible (or are no longer
eligible) for conversion coverage under the Plan, in both cases comparable to such coverage that
Executive and his covered dependents were receiving immediately prior to such termination as
provided under subparagraphs (A) and (B) above, then the Company shall reimburse Executive for the
duration of the Benefits Period for the premiums that Executive incurs to acquire medical and
dental coverage which is comparable to the medical and dental coverage which Executive was
receiving immediately prior to the end of coverage under the Plan or conversion option.

     (b) Any medical and dental coverage provided by the Company under this Section 3.3 shall run
simultaneously with any benefits to which Executive or his dependents may be entitled under COBRA.

     3.4 Payment Delay. Any amount to be paid or benefit to be provided by the Company to
the Executive under Section 3.3 (and any other payment under this Agreement made in connection with
Executive’s termination of employment) which is deferred compensation subject to Section 409A of
the Code or applicable guidance or regulations thereunder, shall be paid to Executive in a lump sum
on the date which is six (6) months following the date of Executive’s Separation from Service.

     3.5 No Mitigation; No Set-Off. The Company’s obligation to make the payments provided
for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by
any set-off, counterclaim, recoupment, defense or other claim, right or action (provided Executive
enters into and does not rescind the general release provided in Section 3.2(b) and subject to the
proviso in the succeeding sentence) which the Company may have

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against Executive or others, other than any action the Company may need to take pursuant to Section
304 of the Sarbanes-Oxley Act of 2002. In no event shall Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable to Executive under
any of the provisions of this Agreement and such amounts shall not be reduced whether or not
Executive obtains other employment; provided that the Company’s obligation under Section
3.3 with respect to medical and dental benefits shall be limited to the extent that Executive
obtains any such medical or dental benefits from another employer during the benefit continuation
period provided thereunder, in which case the Company may reduce the coverage of any medical and
dental benefits it is required to provide Executive under Section 3.3 as long as the aggregate
coverages of the combined benefits provided by the Company and such other employer are comparable
to the benefits to be provided to Executive by the Company under Section 3.3. The provisions of
this Section 3.5 shall survive the expiration or earlier termination of this Agreement for any
reason.

	4.	 	Negative Covenants.

     4.1 Confidential Information. Other than in the performance of his duties hereunder,
during the Employment Period and thereafter, Executive shall keep secret and retain in strictest
confidence, and shall not, without the prior written consent of the Board, furnish, make available
or disclose to any third party or use for Executive’s own benefit or the benefit of any third
party, any Confidential Information. As used herein, “Confidential Information” shall mean any
information relating to the business or affairs of the Company, including, but not limited to, the
Company’s products, servicing methods, development plans, costs, finances, marketing plans,
equipment configurations, data, data bases, access or security codes or procedures, business
opportunities, names of customers, research and development, inventions, algorithms, know-how and
ideas, and other proprietary information used by the Company in connection with its business;
provided, however, that Confidential Information shall not include any information
which is in the public domain or becomes generally known in the industry other than as a result of
Executive’s breach of the covenant contained in this Section 4.1 or the disclosure of which may be
required by law or in a judicial or administrative proceeding. Executive acknowledges that the
Confidential Information is vital, sensitive, confidential and proprietary to the Company.

     4.2 Non-Competition and Interference with Relationships. During the Employment Period
and for a period of twelve (12) months following the expiration or earlier termination of the
Employment Period (the “Restricted Term”), Executive shall not, directly or indirectly, alone or in
combination with any other firm, partnership, company, corporation or person:

          (a) (i) engage in, participate in or otherwise assist (whether as an owner, officer, partner,
principal, joint venturer, shareholder, director, member, manager, investor, employee, agent,
independent contractor, consultant or otherwise) any other person, entity or business (a
“Competitor”) engaged in or planning to engage in the Business of the Company (as defined below) in
any State of the United States of America, or in any foreign country in which the Company or an
affiliate or subsidiary of the Company is conducting such Business of the Company on the date of
such termination (the “Restricted Territory”), unless (x) at the time of the proposed action by
Executive, (1) the revenues of any such Competitor from a Business of the Company for the preceding
fiscal year of such Competitor constituted less than fifteen percent (15%) of the total revenues of
such Competitor for such fiscal year and (2) Executive

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provides the Company with a signed certificate from the independent accountants for such
Competitor stating that, in such independent accountants’ good faith reasonable judgment, the
annual revenues of such Competitor from a Business of the Company will be less than fifteen percent
(15%) of the total annual revenues of such Competitor during the Restricted Term, or (y) the sole
action of Executive with respect to a Competitor that is a publicly traded company consists of
acquiring not more than 1% of the outstanding shares of such Competitor; or (ii) solicit or
encourage any customer or partner of the Company or its affiliates (determined as of the date of
the termination of the Employment Period) to terminate or otherwise alter his, her or its
relationship with the Company; or

          (b) employ, retain or solicit or attempt to solicit for employment or retention as an
independent contractor, or otherwise attempt to hire, persuade or assist in the hiring of (or
assist any other party to take any such action regarding), any individual employed or engaged by
the Company during the Restricted Term; or encourage, induce, or persuade any such person to
terminate his or her employment or other relationship with the Company.

          (c) For purposes hereof, “Business of the Company” means (i) the “court and commercial”
newspaper and/or “business journal” publishing business, (ii) the business of providing mortgage
default processing services and/or appellate services to the legal profession, or (iii) any
additional business in which the Company becomes engaged or has actively and substantially
implemented plans to become engaged as of the date of termination of the Employment Period;
provided that in the event any of the foregoing businesses are sold or are discontinued during the
Restricted Period, the “Business of the Company” shall cease to include such sold or discontinued
business as of the date of sale or discontinuation; provided further that if the Company becomes
re-engaged or implements plans to become re-engaged in any such sold or discontinued business, the
“Business of the Company” shall again include such business.

     4.3 Mutual Non-Disparagement. Neither party shall, at any time during the Employment
Period or thereafter, make statements or representations, or otherwise communicate, directly or
indirectly, in writing, orally or otherwise, or take any action which may, directly or indirectly,
disparage or be damaging to the other party (including any of the Company’s subsidiaries, other
affiliates, officers, directors, employees, partners or stockholders); provided that
nothing in this Section 4.3 shall preclude either party from making truthful statements or
disclosures that are required by applicable law, regulation or legal process.

     4.4 Scope and Severability. The parties acknowledge that the Business of the Company
is and will be national and international in scope and thus the covenants in this Section 4 would
be particularly ineffective if the covenants were to be limited to a particular geographic area of
the United States. If any court of competent jurisdiction at any time deems the Restricted Term
unreasonably lengthy, or the Restricted Territory unreasonably extensive, or any of the covenants
set forth in Section 4 not fully enforceable, the other provisions of Section 4, and this Agreement
in general, will nevertheless stand and to the fullest extent consistent with law continue in full
force and effect, and it is the intention and desire of the parties that the court treat any
provisions of this Agreement which are not fully enforceable as having been modified to the extent
deemed necessary by the court to render them reasonable and enforceable and that the court enforce
them to such extent (for example, that the Restricted Term be deemed to be the longest period
permissible by law, but not in excess of the length provided for in Section 4.2, and

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the Restricted Territory be deemed to comprise the largest territory permissible by law under
the circumstances, but not in excess of the territory provided for in Section 4.2).

     4.5. Remedies. Executive acknowledges and agrees that the covenants set forth in
this Section 4 (collectively, the “Restrictive Covenants”) are reasonable and necessary for the
protection of the Company’s business interests, that irreparable injury will result to the Company
if Executive breaches any of the terms of the Restrictive Covenants, and that in the event of
Executive’s actual or threatened breach of any of the Restrictive Covenants, the Company will have
no adequate remedy at law. Executive accordingly agrees that in the event of any actual or
threatened breach by him of any of the Restrictive Covenants, the Company shall be entitled to
immediate temporary injunctive and other equitable relief, without bond and without the necessity
of showing actual monetary damages. Nothing contained herein shall be construed as prohibiting the
Company from pursuing any other remedies available to it for such breach or threatened breach,
including the recovery of any damages. The provisions of Section 4 shall survive the expiration or
earlier termination of this Agreement for any reason.

	5.	 	Miscellaneous.

     5.1 Determinations by the Board or the Committee. Except as specifically provided
herein to the contrary (such as, without limitation, Executive’s rights to appear before the Board
in connection with any determination of Cause with respect to a termination of the Employment
Period by the Company), with respect to any determinations to be made by the Board or the Committee
in connection with Executive’s employment hereunder, Executive shall not have the right to
participate in the deliberations of such determination and shall abstain from any vote of the Board
or the Committee with respect thereto.

     5.2 Notices. Any notices required hereunder shall be in writing and shall be deemed
delivered upon actual receipt (or refusal to accept receipt) and may be sent by (i) personal
delivery, (ii) U.S. certified or registered mail, return receipt requested, or (iii) reputable
overnight air courier service; for the Company, to the address listed below or for the Executive,
to the last address on file with the Company (or such other addresses as may be designated by
either party by giving notice in accordance with this Section 5.2):

	 	 	 	 	 	 	 
	 	 	To the Company:
	 
	 	 	 	 	 	 
	 	 	 	 	Dolan Media Company
	 	 	 	 	706 Second Avenue South, Suite 1200
	 	 	 	 	Minneapolis, Minnesota 55402
	 

	 	 	 	Attention:
	 	James Dolan, President and CEO
	 

	 	 	 	 	 	John Bergstrom, Compensation Committee

     5.3 Entire Agreement. This Agreement embodies the complete agreement and
understanding among the parties and supersedes and preempts any prior understandings, agreements or
representations by or among the parties, written or oral, which may have related to the subject
matter hereof in any way, including, without limitation, the Prior Agreement.

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     5.4 Counterparts. This Agreement may be executed on separate counterparts, each of
which is deemed to be an original and both of which taken together constitute one and the same
agreement.

     5.5 Successors and Assigns. This Agreement is intended to bind and inure to the
benefit of and be enforceable by Executive and the Company and their respective successors and
permitted assigns. Executive may not assign any of his rights or obligations hereunder without the
written consent of the Company.

     5.6 Amendments and Waivers. Any provision of this Agreement may be amended or waived
only with the prior written consent of the Company and Executive.

     5.7 Governing Law. This Agreement shall be construed and enforced in accordance with,
and all questions concerning the construction, validity, interpretation and performance of this
Agreement shall be governed by, the laws of the State of Delaware, without giving effect to
provisions thereof regarding conflict of laws.

     5.8 Section 409A. It is intended that any income or payments to Executive provided
pursuant to this Agreement (any such income or payments being referred to as “Payments”) will not
be subject to the additional tax and interest under Section 409A (a “Section 409A Tax”). The
provisions of the Agreement will be interpreted and construed in favor of complying with any
applicable requirements of Section 409A necessary in order to avoid the imposition of a Section
409A Tax. The Company and Executive agree to amend (including retroactively) the Agreement in
order to comply with Section 409A, including amending to facilitate the ability of Executive to
avoid the imposition of, or reduce the amount of, any Section 409A Tax. The Company and Executive
shall reasonably cooperate to provide full effect to this provisions and the consent to any
amendment described in the preceding sentence shall not be unreasonably withheld by either party.
The parties agree that neither party has (a) an obligation to bring any potential Section 409A Tax
to the attention of the other party or (b) any liability for any Section 409A Tax or any other
reporting or withholding obligation to the other party.

     IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date first
written above.

	 	 	 
	 

	 	COMPANY:
	 
	 	 
	 

	 	DOLAN MEDIA COMPANY
	 
	 	 
	 
	 	/s/ James P. Dolan
	 

	 	 
	 

	 	James P. Dolan
	 

	 	Chief Executive Officer and President
	 
	 	 
	 

	 	EXECUTIVE:
	 
	 	 
	 
	 	/s/ Mark W.C. Stodder
	 

	 	 
	 

	 	Mark W.C. Stodder

11

 

EXHIBIT A

RELEASE

     THIS RELEASE (this “Release”) is made as of this ___day of ___, ___, by and between
Dolan Media Company, a Delaware corporation (the “Company”), and Mark W.C. Stodder (“Executive”).

PRELIMINARY RECITALS

     A. Executive and the Company entered into that certain Amended and Restated Employment
Agreement, dated as of April 1, 2007 (the “Agreement”).

     B. Executive’s employment with the Company as Executive Vice President/Business Information
Division has terminated.

     C. In connection with the termination of Executive’s employment, under the Agreement,
Executive is entitled to certain payments and other benefits, subject to Executive’s execution,
delivery and non-rescission of this Release.

AGREEMENT

     In consideration of the payments and other benefits due Executive under the Agreement, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     1. Executive, intending to be legally bound, does hereby, on behalf of himself and his agents,
representatives, attorneys, assigns, heirs, executors and administrators (collectively, the
“Executive Parties”) REMISE, RELEASE AND FOREVER DISCHARGE the Company, its affiliates,
subsidiaries, parents, joint ventures, and its and their officers, directors, shareholders,
members, managers and employees, and its and their respective successors and assigns, heirs,
executors, and administrators (collectively, the “Company Parties”) from all causes of action,
suits, debts, claims and demands whatsoever in law or in equity, which Executive or any of the
Executive Parties ever had, now has, or hereafter may have, by reason of any matter, cause or thing
whatsoever, through the date of this Release, and particularly, but without limitation of the
foregoing general terms, any claims arising from or relating in any way to Executive’s employment
relationship with Company, the terms and conditions of that employment relationship, and the
termination of that employment relationship, including, but not limited to, any claims arising
under the Age Discrimination in Employment Act (“ADEA”), as amended, 29 U.S.C. § 621 et seq., Title
VII of The Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq., the Civil Rights Act of
1966, 42 U.S.C. '
1981, the Civil Rights Act of 1991, Pub. L. No. 102-166, the Americans with
Disabilities Act, 42 U.S.C. § 12101 et seq., the Fair Labor Standards Act, 29 U.S.C. '
201 et
seq., the National Labor Relations Act, 29 U.S.C. '
151 et seq., the Constitution for the State of
Minnesota or the Minnesota Human Rights Act, and any other claims under any federal, state or local
common law, statutory, or regulatory provision, now or hereafter recognized, and any claims for
reasonable attorneys’ fees and costs, but not including such claims to payments, benefits and other
rights provided Executive under the Agreement or as may be due Executive under any employee benefit
plan of the Company in accordance with the terms of such plan. This Release is effective without
regard to the legal

1

 

nature of the claims raised and without regard to whether any such claims are based upon tort,
equity, implied or express contract or discrimination of any sort. Except as specifically provided
herein, it is expressly understood and agreed that this Release shall operate as a clear and
unequivocal waiver by Executive of any claim for accrued or unpaid wages, benefits or any other
type of payment.

     2. Executive, on behalf of himself and the Executive Parties, agrees never to bring (or cause
or permit to be brought) any action or proceeding against the Company or any Company Party,
regarding employment, discrimination in employment, or the termination of employment, and the
common law of any state relating to employment contracts, wrongful discharge, public policy torts,
remuneration in employment, or any other matter released pursuant to Section 1. Executive agrees
that in the event that any claim, suit or action released by this Release shall be commenced by him
or any of the Executive Parties against the Company or any Company Party, this Release shall
constitute a complete defense to any such claim, suit or action so instituted.

     3. Executive hereby covenants and agrees, on behalf of himself and the Executive Parties, that
neither he nor any of the Executive Parties will encourage any person or entity to file a lawsuit,
claim or complaint against the Company or any Company Party relating to the claims released by this
Release. Executive hereby covenants and agrees, on behalf of himself and the Executive Parties,
that neither he nor any of the Executive Parties will assist any person or entity who files or has
filed a lawsuit, claim, or complaint against the Company or any Company Party relating to the
claims released under this Release unless Executive or such Executive Party is required to render
such assistance pursuant to a lawful subpoena or other legal obligation. If Executive or any
Executive Party is served with any such legal subpoena or becomes subject to any such legal
obligation, Executive shall provide prompt written notice to the Company thereof and enclose a copy
of the subpoena and any other documents describing the legal obligation with such written notice.

     4. Executive further agrees and recognizes that he has permanently and irrevocably severed his
employment relationship with the Company, that he shall not seek employment with the Company or any
affiliated entity at any time in the future, and that the Company has no obligation to employ him
in the future.

     5. The parties agree and acknowledge that the Agreement, and the settlement and termination of
any asserted or unasserted claims against the Company and the Company Parties pursuant to this
Release, are not and shall not be construed to be an admission of any violation of any federal,
state or local statute or regulation, or of any duty owed by the Company or any of the Company
Parties to Executive.

     6. Executive certifies and acknowledges as follows:

          (a) That he has read the terms of this Release, and that he understands its terms and effects,
including the fact that he has agreed to RELEASE AND FOREVER

2

 

           DISCHARGE the Company and all Company Parties from any legal action or other liability of any
type related in any way to the matters released pursuant to this Release other than as provided in
the Agreement and in this Release;

          (b) That he has signed this Release voluntarily and knowingly in exchange for the
consideration described herein, which he acknowledges is adequate and satisfactory to him and which
he acknowledges is in addition to any other benefits to which he is otherwise entitled;

          (c) That he has been advised in writing to consult with an attorney prior to signing this
Release;

          (d) That he does not waive rights or claims that may arise after the date this Release is
executed other than those claims arising under the Agreement or any employee benefit plan of the
Company in accordance with the terms of such plan;

          (e) That the Company has provided him with a period of twenty-one (21) days within which to
consider this Release, and that Executive has signed on the date indicated below after concluding
that this Release is satisfactory to him; and

          (f) That he has fifteen (15) calendar days after signing this Release within which to rescind
this Release, in writing and delivered to the Company.

     Intending to be legally bound hereby, Executive and the Company executed the foregoing Release
this                      day of                     ,                     .

	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	Mark W.C. Stodder
	 
	 	 	 	 	 	 
	Witness:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	DOLAN MEDIA COMPANY
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Witness:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

3exv10w8

 

EXHIBIT 10.8

      

SERVICES AGREEMENT

by and among

AMERICAN PROCESSING COMPANY, LLC,

TROTT & TROTT, P.C.

and

DAVID A. TROTT

March 14, 2006

      

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

 

 

SERVICES AGREEMENT

     This Services Agreement (this “Agreement”), dated as of March 14, 2006 (the
“Effective Date”), is by and between American Processing Company, LLC, a Michigan limited
liability company (the “Default Specialist”), Trott & Trott, P.C., a Michigan professional
services corporation (the “Firm”), and, for certain limited purposes, David A. Trott. The
Firm and the Default Specialist are hereinafter collectively referred to as the “Parties”.
Unless otherwise indicated, capitalized terms used but not otherwise defined herein have the
meanings set forth in Section 1.1 below.

RECITALS

     A. The Firm is engaged in the Practice of Law with its principal office in Bingham Farms,
Michigan. Prior to the date hereof, in addition to the Practice of Law, the Firm provided certain
non-legal services to Clients, including the Mortgage Default Services.

     B. Immediately prior to, and in connection with the transactions contemplated by this
Agreement, the Firm has contributed (the “Contribution”) to the Default Specialist
substantially all of the assets and the liabilities of the Firm specified in the Contribution
Documents used by the Firm in the business of providing Mortgage Default Services to the Firm’s
Clients.

     C. The Firm and Dolan APC LLC, a Delaware limited liability company (the “Buyer”), the
Default Specialist and David A. Trott are parties to that certain Membership Interest Purchase
Agreement, executed prior to this Agreement on the date hereof (the “Purchase Agreement”),
pursuant to which the Buyer purchased 81% of the membership interest in the Default Specialist
owned by the Firm (the “Purchased Membership Interest”).

     D. The Firm now desires, subject to the terms and conditions described herein, to engage the
Default Specialist to provide Mortgage Default Services to the Firm for the benefit of its Clients;
provided, however, that the performance of any Legal Services in connection with
the business of the Firm shall continue to be performed by the Firm.

     E. David A. Trott has agreed to become a party to this Agreement for the limited purpose of
agreeing to certain covenants applicable to him as set forth herein.

AGREEMENTS

     In consideration of the foregoing, and for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as follows:

ARTICLE I. DEFINITIONS

     1.1. Definition of Certain Terms. The terms defined in this Section 1.1,
whenever used in this Agreement (including in the schedules and exhibits), shall have the
respective meanings indicated below for all purposes of this Agreement:

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

 

 

     “Affiliate” as applied to any Person, means any other Person, directly or indirectly,
controlling, controlled by, or under common control with, that Person. The term “control”
(including, with correlative meanings, the terms “controlling, “controlled by” and” under common
control with”), as applied to any Persons, includes the possession, directly or indirectly, of
twenty percent (20%) or more of the voting power (or in the case of a Person which is not a
corporation, twenty percent (20%) or more of the ownership interest, beneficial or otherwise) of
such Person or the power otherwise to direct or cause the direction of the management and policies
of that Person, whether through voting, by contract or otherwise. Notwithstanding anything to the
contrary herein, for purposes of this Agreement, David A. Trott shall be considered an “Affiliate”
of the Default Specialist.

     “Agencies” shall mean, individually or collectively, Fannie Mae, Freddie Mac, FHA, VA
and GNMA and any other governmental agencies or quasi-governmental agencies who are residential
mortgage lenders or residential mortgage loan servicing companies that are or become Clients of the
Firm.

     “Agreement” has the meaning set forth in the Preamble of this Agreement.

     “Amended Fee Schedule Date” means January 1, 2008 and each second anniversary thereof.

     “Amended Fee Schedule” has the meaning set forth in Section 3.1(b) of this
Agreement.

     “Applicable Law(s)” means any statute, law, ordinance, regulation, requirement, order
or rule of any federal, state, local government or other governmental agency or body or of any
other type of regulatory body, or any governmental or administrative interpretation of any thereof,
including, but not limited to, any and all federal, state and local laws governing the legal
profession generally, including but not limited to, the Michigan Rules of Professional Conduct, the
Fair Debt Collection Practices Act and the Graham-Leach-Bliley Act.

     “Breaching Party” has the meaning set forth in Section 9.3 of this Agreement.

     “Buyer” has the meaning set forth in the Recitals of this Agreement.

     “Business” means the business of providing Mortgage Default Services.

     “Business Day” means a day of the year on which banks are not required or authorized
by law to close in Detroit, Michigan.

     “Change” and “Changes” have the meaning set forth in Article X of this
Agreement.

     “Claim” has the meaning set forth in Section 12.6 of this Agreement.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

2

 

     “Clients” shall mean residential mortgage lenders or residential mortgage loan
servicing companies that have engaged the Firm, or may engage the Firm in the future, as well as
any other Person who receives Legal Services from the Firm.

     “Contribution Documents” means that certain Contribution Agreement, dated as of the
date hereof, by and between the Firm and the Default Specialist, and any other agreements,
documents and certificates executed in connection with the Contribution Agreement and the
Contribution.

     “Contribution” has the meaning set forth in the Recitals of this Agreement.

     “Default Specialist Confidential Information” has the meaning set forth in Section
7.1(a) of this Agreement.

     “Default Specialist Intellectual Property” has the meaning set forth in Section
7.6 of this Agreement.

     “Default Specialist Workforce” has the meaning set forth in Section 5.1 of
this Agreement.

     “Default Specialist” has the meaning set forth in the Preamble of this Agreement.

     “DLNP” means Detroit Legal News Publishing, LLC, a Michigan limited liability company.

     “DLNP Agreement” means that certain Agreement, dated as of November 30, 2005, by and
among DLNP, the Firm and David A Trott.

     “Effective Date” has the meaning set forth in the Preamble to this Agreement.

     “Employee Expenses” means any and all employee costs of the Default Specialist
Workforce, including, but not limited to, personnel salaries, overtime, bonuses, commissions,
fringe benefits, accrued vacations, sick leave time, profit sharing, pension, and any insurance
benefits.

     “Engagement Letter” means any engagement letter, contract, agreement or other
arrangement between the Firm and a Client.

     “Extended Term” has the meaning set forth in Section 9.2 of this Agreement.

     “Fannie Mae” shall mean the Federal National Mortgage Association.

     “Fee Schedule” has the meaning set forth in Section 3.1(a) of this Agreement.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

3

 

     “Firm Confidential Information” has the meaning set forth in Section 7.2(a) of
this Agreement.

     “Firm Damages” has the meaning set forth in Section 12.4 of this Agreement.

     “Firm Restrictive Covenants” has the meaning set forth in Section 8.1 of this
Agreement.

     “Firm” has the meaning set forth in the Preamble of this Agreement.

     “First Invoice” has the meaning set forth in Section 3.2(a) of this Agreement.

     “FHA” shall mean the Federal Housing Administration.

     “Force Majeure Condition” shall mean any condition or event beyond the control of the
Party affected thereby, including, but not limited to, fire, explosion, or other casualty, act of
God, war or civil disturbance, acts of public enemies, embargo, the performance or non-performance
of third parties, acts of city, state, local or federal governments in their sovereign, regulatory,
or contractual capacity, labor difficulties and strikes.

     “Freddie Mac” shall mean the Federal Home Loan Mortgage Corporation.

     “GNMA” shall mean the Government National Mortgage Association.

     “Indemnified Party” has the meaning set forth in Section 12.6 of this
Agreement.

     “Indemnifying Party” has the meaning set forth in Section 12.6 of this
Agreement.

     “Initial Term” has the meaning set forth in Section 9.1 of this Agreement.

     “Insolvent” means a party who: (a) fails to pay its debts in the ordinary course of
business as they come due; (b) makes an assignment for the benefit of its creditors, or voluntarily
commences proceedings in bankruptcy, reorganization or liquidation under the Bankruptcy Code or
under any other state, federal or Applicable Law for the relief of debtors (or an action under any
such laws is commenced against such party and is not discharged within 60 days); or (c) has a
receiver, trustee or custodian appointed to operate its business who is not discharged within 60
days of his, her or its appointment.

     “Investors” shall mean Fannie Mae, Freddie Mac and the Private Investors,
collectively.

     “Invoice” means any Monthly Invoice, First Invoice, Second Invoice or Supplemental
Invoice.

     “Legal
Services” means counseling or assisting others in matters that require
the use of legal discretion and profound legal knowledge, the giving of advice or the
rendering of any service requiring the use of legal skill or knowledge.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

4

 

     “Make-Up File Fee” has the meaning set forth in Section 3.1(a) of this
Agreement.

     “Malpractice Insurance Policies” has the meaning set forth in Section 4.6 of
this Agreement.

     “Material Breach” means any breach of this Agreement by one Party that:

     (a) significantly deprives the Non-breaching Party of the benefits afforded to it
under this Agreement;

     (b) causes the Non-breaching Party to suffer losses or damages that can not be
properly redressed by the payment of money; or

     (c) constitutes gross negligence or willful misconduct on the part of the Breaching
Party.

     “Monthly Invoice” has the meaning set forth in Section 3.2(a) of this
Agreement.

     “Mortgage Default Services” means services undertaken in connection with residential
mortgage defaults including, but not limited to, the processing of foreclosure sales, evictions and
bankruptcy filings, but excluding in each instance any Legal Services.

     “Non-breaching Party” has the meaning set forth in Section 9.3 of this
Agreement.

     “Objection Notice” has the meaning set forth in Section 3.1(b) of this
Agreement.

     “Office Products” has the meaning set forth in Section 4.4 of this Agreement.

     “Office and Space Sharing Agreement” means that certain Office and Space Sharing
Agreement, dated as of the date hereof, by and between the Firm and the Default Specialist.

     “Parties” has the meaning set forth in the Preamble of this Agreement.

     “Person” means an individual, partnership, corporation (including a business trust),
joint stock company, trust, unincorporated association, joint venture, limited liability company or
other entity, or a government or any political subdivision or agency thereof.

     “Practice of Law” means any activities that constitute providing Legal Services.

     “Prevailing Party” has the meaning set forth in Section 12.2 of this
Agreement.

     “Private Investors” shall mean individual private investors who make or invest in
residential mortgage loans.

 PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

5

 

     “Purchase Agreement” has the meaning set forth in the Recitals to this Agreement.

     “Purchased Membership Interest” has the meaning set forth in the Recitals of this
Agreement.

     “Reasonable Attorneys’ Fees” shall mean those attorney’s fees actually incurred in
obtaining a judgment in favor of the Prevailing Party.

     “Reimbursable Expenses” has the meaning set forth in Section 3.1(d) of this
Agreement.

     “Restricted Period” has the meaning set forth in Section 8.1(a) of this
Agreement.

     “Second Invoice” has the meaning set forth in Section 3.2(a) of this
Agreement.

     “Standard Operating Procedures” means the operating procedures agreed to by the
Parties regarding the integration of Mortgage Default Services provided by the Default Specialist
and Legal Services provided by the Firm.

     “Sublease Agreement” means that certain Sublease Agreement, dated as of the date
hereof, by and between the Firm and the Default Specialist.

     “Supplemental Invoice” has the meaning set forth in Section 3.1(a) of this
Agreement.

     “Termination Date” has the meaning set forth in Section 9.7(a) of this
Agreement.

     “Territory” has the meaning set forth in Section 8.1(a) of this Agreement.

     “Work Product” shall mean all work product developed by the Firm, or any of its
employees or approved subcontractors (tangible, recorded or otherwise, and without
regard to the form of recordation or state of completion) in the performance of Legal Services for
Clients, whether or not the services being performed are complete.

     “Work-in-Process” shall mean at any time shall mean all Work Product in the hands of
the Firm including, but not limited to, mortgage loan files, bankruptcy, foreclosure or litigation
files relating to any Client mortgage loan, working papers, narrative descriptions, reports, data,
tapes, diskettes, software (if originally provided by a Client), and all material of similar
character.

     “VA” shall mean the Department of Veterans Affairs.

     1.2. Additional Terms. The terms “hereof,” “herein” and “hereunder” and terms of
similar import are references to this Agreement as a whole and not to any particular provision of
this Agreement. The term “including” as used in this Agreement is used to list items by way of
example and shall not be deemed to constitute a limitation of any term or provision contained

 PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

6

 

herein. As used in this Agreement, the singular or plural number shall be deemed to include the
other whenever the context so requires. Section, paragraph, clause, Exhibit and Schedule
references contained in this Agreement are references to sections, clauses and schedules in or to
this Agreement, unless otherwise specified.

ARTICLE II. SERVICES TO BE PROVIDED BY THE DEFAULT SPECIALIST

     2.1 Mortgage Default Services. The Firm hereby engages the Default Specialist, and
the Default Specialist hereby agrees to perform the Mortgage Default Services that the Firm has
determined or established as necessary and essential for the benefit of, and on behalf of its
Clients.

     2.2 Supervision of Default Specialist Personnel. The Parties intend that all
employees of the Default Specialist who are providing Mortgage Default Services pursuant to this
Agreement, shall, to the extent required by Applicable Law, work under the direct or indirect
supervision of an attorney employed by the Firm in a manner consistent with the historical
practices of the Firm. Such supervising attorney shall have the ultimate authority as to all legal
decisions regarding each file, matter, or case for which the Default Specialist is performing
Mortgage Default Services.

     2.3 Standard Operating Procedures. The Standard Operating Procedures shall be
formulated in compliance with all Applicable Laws. The Standard Operating Procedures shall be
amended from time to time by the Firm and the Default Specialist, in accordance with changes in
Applicable Law, or for the reasonable accommodation of reasonable requests of Clients, Investors or
Agencies, so long as any such amendments shall not materially increase the duties or
responsibilities of the Default Specialist hereunder.

     2.4 No Exclusivity. The engagement of the Default Specialist by the Firm is on a
non-exclusive basis, and the Default Specialist, in its sole discretion, may provide Mortgage
Default Services to any other Person.

ARTICLE
III. COMPENSATION AND REIMBURSEMENT

     3.1 Fees and Reimbursement.

	 	(a)	 	Initial Fee Schedule. Subject to the terms and conditions of this
Section 3.1, in consideration for the performance of the Mortgage Default
Services hereunder, the Default Specialist will be compensated on a per file fee basis
for files referred by the Firm to the Default Specialist for processing in accordance
with the following fee schedule (the “Fee Schedule”):

	 	 	 	 	 	 	 	 	 
	Type of File	 	Annual Volume of Files	 	Per File Fee
	Foreclosure
	 	 	3 [***]	 	 	$	[***]	 
	 
	 	 	< [***]	 	 	$	[***]	 
	Bankruptcy
	 	 	3 [***]	 	 	$	[***]	 

 PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

7

 

	 	 	 	 	 	 	 	 	 
	Type of File	 	Annual Volume of Files	 	Per File Fee
	 
	 	 	< [***]	 	 	$	[***]	 
	Eviction
	 	 	3 [***]	 	 	$	[***]	 
	 
	 	 	<  [***]	 	 	$	[***]	 
	Litigation
	 	 	3  [***]	 	 	$	[***]	 
	 
	 	 	<  [***]	 	 	$	[***]	 

	 	 	 	The Parties acknowledge that, in anticipation of exceeding the aggregate level of
annual volume of files necessary to qualify for the lower per file fee amounts set
forth in the Fee Schedule, the lower per file fees shall be charged by the Default
Specialist to the Firm during 2006 and 2007. To the extent that after the
conclusion of each such year the aggregate annual volume of files referred by the
Firm to the Default Specialist for processing in such year does not exceed [***]
files (which, for 2006, shall be computed as if the closing of the transactions
under the Purchase Agreement had occurred on January 1, 2006 and this Agreement had
been in effect since January 1, 2006), then the Firm shall pay the Default
Specialist an additional file fee (the “Make-Up File Fee”) in an amount
equal to sum of (A) $[***] multiplied by the number of Foreclosure files referred
to the Default Specialist during such year, plus (B) $[***] multiplied by the
number of Bankruptcy files referred to the Default Specialist during such year,
plus (C) $[***] multiplied by the number of Eviction files referred to the Default
Specialist during such year, plus (D) $[***] multiplied by the number of Litigation
files referred to the Default Specialist during such year. The Default Specialist
shall submit an invoice (a “Supplemental Invoice”) to the Firm for any such
Make-Up File Fee. The Firm shall have the right to dispute, in good faith, any
Supplemental Invoice in accordance with the procedures set forth in Section
3.2(b) hereof.
	 
	 	 	 	To the extent that the Firm and the Default Specialist are unable to agree upon an
Amended Fee Schedule on or prior to the Amended Fee Schedule Date pursuant to
Section 3.1(b) below resulting in the existing Fee Schedule remaining in
effect, the Parties agree that the file fees for each file type that will be
charged by the Default Specialist to the Firm in 2008 and thereafter will be based
on the lower per file fees.
	 
	 	 	 	If at any time prior to the conclusion of a file, such file is converted from one
file type to another (e.g., from a foreclosure file to a bankruptcy file), then a
new file will be deemed to have been created on the date of such conversion and to
have been referred by the Firm to the Default Specialist for processing and the
Default Specialist will be entitled to a new file fee in accordance with the Fee
Schedule.
	 
	 	(b)	 	Amended Fee Schedule. On or before the forty-fifth (45th) day prior to an
Amended Fee Schedule Date, the Default Specialist may propose to the Firm an amended
Fee Schedule (an “Amended Fee Schedule”) that will be in effect for the
two-year period commencing with the applicable Amended Fee Schedule Date. On or
before the fifteenth (15th) day after receiving the proposed Amended Fee

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

8

 

	 	 	 	Schedule, the
Firm may deliver to the Default Specialist a notice of objection to the proposed
Amended Fee Schedule (an “Objection Notice”). If no such Objection Notice is
timely delivered by the Firm to the Default Specialist, then that Amended Fee Schedule
shall be binding on the parties hereto for the two-year period commencing on the
applicable Amended Fee Schedule Date. If the Firm does timely deliver to the Default
Specialist an Objection Notice, the Firm and the Default Specialist shall thereafter
negotiate with each other in good faith to agree upon an Amended Fee Schedule. If the
Firm and the Default Specialist are unable to agree upon an Amended Fee Schedule
within fifteen (15) days after an Objection Notice has been given, then the existing
Fee Schedule shall remain in effect and the Default Specialist shall thereafter have
the option of terminating this Agreement in its sole discretion in accordance with
Section 9.4 hereof.
	 
	 	(c)	 	Client Related Third Party Expenses. Notwithstanding anything to the
contrary herein, the Firm agrees that it will pay all Client related third party
expenses incurred by the Default Specialist in the performance of the Mortgage Default
Services hereunder, including, but not limited to, fees paid for (i) publication of
legal notices by DLNP under the DLNP Agreement; (ii) title insurance; (iii) filing of
deeds and other legal documents; (iv) sheriff services; (v) packaging services; and
(vi) court costs.

     3.2 Invoice and Payments.

	 	(a)	 	Invoice. Within fifteen (15) days following the end of each calendar month
during the term of this Agreement, and any extensions or renewals thereof, the Default
Specialist shall submit an invoice to the Firm (each a “Monthly Invoice”)
indicating (i) the number and types of files referred by the Firm to the Default
Specialist for processing during the preceding month and (ii) the total amount due to
the Default Specialist for such files referred during the preceding month. The first
such Monthly Invoice shall be delivered on March 15, 2006 (the “First
Invoice”) and for this Invoice only, the amount will equal the product of: (X)
[***]; (Y) the sum of (I) files created by the Firm for the [***]
prior to and
including the Effective Date, plus (II) [***], [***] and [***] of the Foreclosure,
Bankruptcy and Eviction files, respectively, created by the Firm during the period
[***] to [***] prior to the Effective Date; and (iii) the per file fee identified in
the Fee Schedule. The second Monthly Invoice shall be delivered on April 15, 2006
(the “Second Invoice”) and for this Invoice only, the amount will equal the
product of: (Y) the files created by the Firm for the period subsequent to the
Effective Date and ending on March 31, 2006 and (Z) the per file fee identified in the
Fee Schedule.
	 
	 	(b)	 	Objection. The Firm shall have the right to dispute, in good faith, any
Invoice, in part or in total. The Firm will promptly notify the Default Specialist of
any dispute regarding any Invoice, and the Parties agree to use their best efforts to
promptly resolve any such dispute. If the Parties are unable to reach a resolution,

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

9

 

	 	 	 	then the Parties will choose a mutually acceptable independent accounting firm to
resolve such dispute. The decision of the independent accounting firm shall be final
as to all matters relating to such dispute, and the Parties shall split all costs
associated with the engagement of the independent accounting firm equally. When
attempting to resolve any such dispute, the Parties agree to allow the other Party and
the independent accounting firm access to all information relevant to such issue(s) in
dispute, unless such access would violate any other provision of this Agreement, the
attorney client privilege or any client secrets.
 

	 	(c)	 	Payment. The Firm shall pay each Invoice within fifteen (15) days after
receipt thereof; provided, however, that the Firm is under no
obligation to make any payments for any amounts in any Invoice that is subject to a
dispute as provided in Section 3.2(b) above, until ten (10) days after such
dispute is resolved.

     3.3 Reasonable Value. The Firm and the Default Specialist acknowledge and agree that
the Fee Schedule has been, and any Amended Fee Schedule shall be, negotiated at arm’s-length and
represents the reasonable value of the Mortgage Default Services furnished by the Default
Specialist pursuant to this Agreement, considering the nature and volume of the services required.
Payment of the fees pursuant to Section 3.2
hereof is not intended to be and shall not be interpreted or applied as permitting the Default
Specialist to share in the Firm’s fees for Legal Services performed by the Firm on behalf of its
Clients.

ARTICLE IV. AFFIRMATIVE COVENANTS OF THE FIRM

     4.1 Exclusive Use of the Default Specialist for Mortgage Default Services. During the
term of this Agreement and any extensions or renewals thereof, the Firm shall engage only the
Default Specialist to provide Mortgage Default Services on behalf of a Client, and shall not
retain, hire, employ, use or engage any other Person to provide such services unless specifically
so directed by a Client or Investor. Without limiting the foregoing, the employees of the Firm
shall not provide Mortgage Default Services to any Client without the prior written consent of the
Default Specialist.

     4.2 Notification to and Consents from Clients. In accordance with Applicable Law and
any Engagement Letter, the Firm shall notify and, where required by the terms or conditions of any
Engagement Letter, obtain the consent of its existing Clients and any new Clients of the Firm’s
intention to use the Default Specialist to provide Mortgage Default Services.

     4.3 Supervision of Default Specialist. The Firm agrees to cause its attorneys to
provide supervision of the employees of the Default Specialist that are providing Mortgage Default
Services in compliance with Applicable Law.

     4.4 Support of the Default Specialist. Pursuant to the Office and Space Sharing
Agreement, the Firm shall permit employees of the Default Specialist to (i) utilize its office
space without charge, as the Parties shall mutually determine, and (ii) provide access to, and the
authorized use of, all software and assets owned or licensed by the Firm needed by the Default

 PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

10

 

Specialist to operate the Business and to adequately and efficiently provide the Mortgage Default
Services to the Firm and its Clients; provided, however, that all office furniture,
office equipment (including, but not limited to, telephones, computers and copiers), office
supplies and all other normal and customary office products associated with or required to perform
the Mortgage Default Services contemplated by this Agreement (collectively, the “Office
Products”) shall be the responsibility of the Default Specialist. Notwithstanding the
foregoing, the Firm shall have no responsibility for any Employee Expenses.

     4.5 Compliance With Law; Adherence to Professional Standards.

     (a) Professional Ethical Requirements. From and after the Effective Date, the Firm shall
fully inform the Default Specialist of all professional ethical responsibilities relating to the
Practice of Law (and any changes thereto), as the same may be applicable to any services performed
by the Default Specialist under this Agreement. The Firm will inform the Default Specialist of and
cooperate with the Default Specialist to assure that any confidences and secrets of Clients will be
protected and maintained to the full extent required by any professional ethics rules applicable to
the Practice of Law.

     (b) Compliance with Applicable Laws. The Firm shall perform Legal Services diligently,
conscientiously and in a manner consistent with professional and ethical standards and in
compliance with all Applicable Laws, including laws and professional ethical rules and requirements
applying to the legal profession, and requirements of the Agencies. It is expressly acknowledged
by the Parties that all Legal Services provided by the Firm shall be performed solely by licensed
attorneys or under the direct supervision and control of licensed attorneys. Each of the attorneys
working for the Firm shall be licensed to practice law in the State of Michigan, and any other
state or federal district in which such attorney renders Legal Services. The Firm shall require
that all attorneys who are licensed and in good standing as lawyers with the applicable licensing
authorities in one or more states and who perform the Practice of Law who are employees of the Firm
comply with Applicable Laws, including, but not limited to, all applicable ethical standards and
rules of professional responsibility relating to the Practice of Law.

     4.6 Maintenance of Malpractice Insurance. During the term of this Agreement and any
extensions or renewals thereof, and except as otherwise provided herein, the Firm shall maintain
legal malpractice insurance policies (the “Malpractice Insurance Policies”) in at least the
same amount as provided for by the Firm’s current Malpractice Insurance Policies issued by an
insurance carrier with an A.M. Best rating of “A” or better. The Firm represents and warrants that
the Malpractice Insurance Policies, as described on Exhibit A hereto, are in full force and
effect and the Firm is not in default under any of them and no material claim for coverage
thereunder has been denied under any such current Malpractice Insurance Policies with respect to
any matter. At the request of the Default Specialist from time to time, the Firm shall furnish the
Default Specialist with a copy of the certificate of insurance evidencing the coverage under such
Malpractice Insurance Policies and the Firm agrees that no such Malpractice Insurance Policies may
be cancelled or the amount of coverage under such Malpractice Insurance Policies reduced without
thirty (30) days prior written notice to the Default Specialist.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

11

 

ARTICLE V. AFFIRMATIVE COVENANTS OF THE DEFAULT SPECIALIST

     5.1 Hiring and Maintenance of Default Specialist Workforce; Compensation. The Default
Specialist shall employ or otherwise retain and be responsible for selecting, hiring, training and
supervising all personnel necessary or appropriate for the proper operation of the Default
Specialist and the provision of Mortgage Default Services to the Firm (the “Default Specialist
Workforce”). All employee and employment benefit matters shall be the responsibility of the
Default Specialist, including, but not limited to, the number, nature, type, quality and
compensation of the Default Specialist Work Force and all administrative or governmental filings
regarding employment. The Default Specialist shall have sole responsibility for the Employee
Expenses.

     5.2 Office Products. The Default Specialist shall provide all Office Products to its
employees in connection with its obligations under this Agreement, and shall have sole
responsibility for the maintenance and insurance of such personalty, subject to the terms of
the Office and Space Sharing Agreement.

     5.3 Performance of Mortgage Default Services. Default Specialist shall perform the
Mortgage Default Services in a manner consistent with the historical practices of the Firm.
Default Specialist shall perform the Mortgage Default Services and shall otherwise fulfill its
obligations under this Agreement faithfully, diligently and to the best of its ability .

     5.4 Prohibition Against Providing Legal Services. The Parties hereto acknowledge that
the Default Specialist is not authorized or qualified to engage in any activity which under
Applicable Laws may only be performed by licensed attorneys and that nothing herein shall be
construed as permitting or authorizing the Default Specialist to provide Legal Services to Clients.
Notwithstanding anything to the contrary in this Agreement, to the extent any act or service
required of the Default Specialist is construed or deemed to constitute the provision of Legal
Services, the Default Specialist is released from any obligation to provide, and the Firm shall be
deemed not to have requested the Default Specialist to provide, such act or service.

     5.5 Independence of the Firm. The Firm will be the exclusive provider of Legal
Services to Clients under this Agreement and the Firm shall have complete and absolute control over
the methods by which the Practice of Law is conducted by the Firm. All matters involving the
internal management, control, or finances of the Firm shall remain the sole responsibility of the
Firm and its shareholders, and the Default Specialist shall have no authority whatsoever over the
Firm as it relates to its Practice of Law.

ARTICLE VI. CERTAIN COVENANTS OF BOTH PARTIES

     6.1 No Use of Party and Client Name. Without prior written consent, the Parties agree
that they will not use, in any advertising or promotional material or media, the other Party’s name
or logo or the name and logo of any affiliate of the other Party, or otherwise identify the other
Party or any Client.

 PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

12

 

     6.2 Records. The Parties shall maintain accurate books and records regarding the
provision of Mortgage Default Services to the Firm by the Default Specialist, in compliance with
all Applicable Laws, but in no event for less than five (5) years or for such longer period as may
be required in connection with any initial public offering of the securities of the Default
Specialist or its Affiliates.

     6.3 No Assignment Without Consent. The Parties hereby agree that neither this
Agreement, nor any duties or obligations under this Agreement, shall be assigned or transferred by
either party without the prior written consent of the other.

ARTICLE
VII. CONFIDENTIALITY; INTELLECTUAL PROPERTY

     7.1 Protection of the Default Specialist’s Confidential Information.

     (a) Confidential Information. All confidential information, proprietary information and
rights, and trade secrets of the Default Specialist (the “Default Specialist Confidential
Information”), shall be safeguarded and treated as confidential by the Firm. Default
Specialist Confidential Information includes, but is not limited to, records, files, documents,
bulletins, publications, manuals, financial data and information, marketing plans and proposals,
accounting control procedures and any information relating to and concerning the identity of
customers, prospects, suppliers, employees and manner of operations of the Default Specialist.
Default Specialist Confidential Information shall also include specifications, software code
(including, but not limited to, the Veritas Software (as defined in the Purchase Agreement)),
design, materials, documentation, flow charts, diagrams, schematics, data, databases, and business
and production methods and techniques of the Default Specialist and all other confidential
information, proprietary information and rights, and trade secrets of the Default Specialist.

     (b) Nondisclosure of Confidential Information. The Firm recognizes and acknowledges that the
Default Specialist Confidential Information is valuable, special and unique and that the protection
of Default Specialist Confidential Information is critical to the Default Specialist and its
ability to maintain its competitive advantage over its competitors. In furtherance of this, the
Firm shall use Default Specialist Confidential Information solely in conjunction with this
Agreement. Without the express written consent of the Default Specialist, the Firm shall not at
any time disclose Default Specialist Confidential Information to any Person except in furtherance
of this Agreement.

     (c) Disclosure under Court Order. Notwithstanding the foregoing restrictions, the Firm may
use and disclose any Default Specialist Confidential Information to the extent required by an order
of any court or other governmental authority, but only after the Default Specialist has been so
notified and has had the opportunity, if possible, to obtain reasonable protection for such
information in connection with such disclosure. The Firm shall cooperate fully with the Default
Specialist in connection with obtaining any protective order or other appropriate remedy.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

13

 

     7.2 Protection of Firm Confidential Information.

     (a) Confidential Information. All confidential information, proprietary information and
rights and trade secrets of the Firm (“Firm Confidential Information”), shall be
safeguarded and treated as confidential by the Default Specialist. Firm Confidential Information
includes, but is not limited to any records, files, documents, bulletins, publications, manuals,
financial data and information, marketing plans and proposals, accounting control procedures, any
information relating to and concerning the identity of Clients, customers, prospects, suppliers,
employees and manner of operations of the Firm, and any information of or pertaining to a Client
that is confidential or
privileged pursuant to any contract, statute, regulation, rule, code or legal precedent. Firm
Confidential Information shall also include specifications, software code, design, materials,
documentation, flow charts, diagrams, schematics, data, databases, and business and production
methods and techniques of the Firm and all other confidential information, proprietary information
and rights and trade secrets of the Firm.

     (b) Nondisclosure of Confidential Information. The Default Specialist recognizes and
acknowledges that Firm Confidential Information is valuable, special and unique and that the
protection of Firm Confidential Information is critical to the Firm. In furtherance of this, the
Default Specialist shall use Firm Confidential Information solely in conjunction with this
Agreement. Without the express written consent of the Firm, the Default Specialist shall not at
any time disclose Firm Confidential Information to any Person except in furtherance of this
Agreement.

     (c) Disclosure under Court Order. Notwithstanding the foregoing restrictions, the Default
Specialist may use and disclose any Firm Confidential Information to the extent required by an
order of any court or other governmental authority, but only after the Firm has been so notified
and has had the opportunity, if possible, to obtain reasonable protection for such information in
connection with such disclosure. The Default Specialist shall cooperate fully with the Firm in
connection with obtaining any protective order or other appropriate remedy.

     7.3 Confidentiality of Third Party Information.

     (a) Confidentiality of Third Party Confidential Information. The Parties recognize that each
Party has received and in the future may receive confidential or proprietary information of Clients
and other third parties and such information is subject to a duty on the part of the recipient to
maintain the confidentiality of such information and to use it only for certain limited purposes.
The Parties agree at all times during the term of this Agreement and thereafter, to hold in
strictest confidence, and not to use, except in connection with the Firm’s performance of Legal
Services, or the performance of Mortgage Default Services by the Default Specialist and not to
disclose to any Person, or to use it except as necessary in the Firm’s performance of Legal
Services, or the performance of Mortgage Default Services by the Default Specialist, consistent
with their respective agreements with, or obligations under Applicable Law to, such Clients or
other third parties.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

14

 

     (b) Covenant Against Disclosure. Each Party agrees to use commercially reasonable efforts to
safeguard the confidential material and to prevent the unauthorized, negligent or inadvertent use
or disclosure thereof.

     7.4 Exceptions to Definition of Confidential Information. The obligations of the
Parties to treat any information as proprietary and confidential under this Article VII shall not
apply to information which (i) is publicly available, (ii) is developed by the Default Specialist
or the Firm outside the scope of this Agreement or any agreement with a
Client, or (iii) is obtained rightfully from third parties not bound by an obligation of
confidentiality.

     7.5 Remedies. The Parties acknowledge that disclosure of any confidential material
could give rise to irreparable injury to the Parties and that such injury may be inadequately
compensable in damages. Accordingly, the Firm or the Default Specialist, as applicable, may seek
injunctive relief against the breach or threatened breach of the undertakings set forth in
Sections 7.1, 7.2 and 7.3. This relief shall not be exclusive of, and
shall be in addition to, any other remedies available at law or equity.

     7.6 Ownership of Intellectual Property. The Firm acknowledges and agrees that,
pursuant to the terms of the Purchase Agreement, the Default Specialist owns the worldwide right,
title, and interest in and to any and all inventions, original works of authorship, findings,
conclusions, ideas, data, databases, flowcharts, scripts, discoveries, developments, concepts,
improvements, techniques, processes and know-how, whether or not patentable or registrable under
copyright or similar laws, created or developed prior to the date of this Agreement which relate to
the provision of Mortgage Default Services including all patent rights, copyrights, trademarks,
know-how and trade secrets, or other intellectual property rights related thereto and all
modifications, improvements or changes thereto (the “Default Specialist Intellectual
Property”).

     7.7 License of the Default Specialist Intellectual Property. During the term of this
Agreement, the Default Specialist hereby grants the Firm a nonexclusive, worldwide, and royalty -
free license to use the Default Specialist Intellectual Property for the benefit of Clients,
subject to the following terms, conditions, and restrictions:

     (a) The license granted pursuant to this Section 7.7 authorizes only the Firm and its
authorized employees and any agents or contractors to use the Default Specialist Intellectual
Property.

     (b) No part or portion of the Default Specialist Intellectual Property may be sublicensed,
copied, reproduced or duplicated by any means, or translated into machine language by the Firm,
without the prior express written permission of the Default Specialist, except that the Firm may
make those copies of the Default Specialist Intellectual Property necessary for non-productive
back-up purposes only.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

15

 

     (c) The Firm’s right to use the Default Specialist Intellectual Property under the terms of
this Agreement shall commence on the Effective Date and shall continue until the termination of
this Agreement.

ARTICLE VIII. RESTRICTIVE COVENANTS

     8.1 Restrictive Covenants of the Firm. As additional consideration for the Default
Specialist entering into this Agreement with the Firm and as additional consideration for Buyer to
purchase the Purchased Membership Interest from the Firm pursuant to the
Purchase Agreement, the Firm covenants with the Default Specialist as follows (with such
covenants being collectively referred to below as the “Firm Restrictive Covenants”):

     (a) Non-Compete. During the term of this Agreement (including any extensions or renewals
thereof), and for a period of three (3) years following termination of this Agreement (the
“Restricted Period”), none of Firm, David A. Trott or any of their respective Affiliates
shall directly or indirectly, without the prior written consent of the Default Specialist,
purchase, join, control, invest in, organize, start or form any business, individual, partnership,
firm, corporation or other entity that will provide Mortgage Default Services anywhere in the
States of Illinois, Indiana, Kentucky, Michigan, Ohio, and Wisconsin (the “Territory”).
Notwithstanding the foregoing, nothing contained in this Section 8.1(a) shall restrict in
any way, the Firm’s or David A. Trott’s ability to provide or perform Legal Services in any way
related to Mortgage Default Services.

     (b) Non-Solicitation. During the term of this Agreement (including any extensions or renewals
thereof), and for a period of three (3) years thereafter, without the prior written consent of the
Default Specialist, none of the Firm, David A. Trott, or any of their respective Affiliates shall,
direct or indirectly, whether alone or in connection with any other person or entity, hire, recruit
or employ, or solicit or otherwise seek to hire, recruit, or employ, any employee or independent
contractor of the Default Specialist.

     8.2 Blue-Pencil. If any court of competent jurisdiction shall at any time deem the
term of any particular restrictive covenant contained in Section 8.1 too lengthy or the
Territory too extensive, the other provisions of this Section 8.1 shall nevertheless stand,
and the Restricted Period and/or the Territory shall be reduced to such duration or size as such
court shall determine to be permissible.

     8.3 Remedies. The Firm acknowledges that any breach of any of the Firm Restrictive
Covenants could give rise to irreparable injury to the Default Specialist and that such injury may
be inadequately compensable in damages. Accordingly, the Parties agree that the Default Specialist
may obtain injunctive relief against the breach or threatened breach of the undertakings set forth
in Section 8.1 without the posting of any bond or other security. This relief shall not be
exclusive of, and shall be in addition to, any other remedies available at law or equity.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

16

 

ARTICLE IX. TERM AND TERMINATION

     9.1 Initial Term. The initial term of this Agreement shall be for a period of fifteen
(15) years, commencing as of the date hereof and ending at midnight on the fifteenth anniversary of
the date hereof (the “Initial Term”).

     9.2 Automatic Ten Year Extensions. This Agreement shall be automatically extended for
up to two (2) separate and successive ten (10) year periods (with each such successive ten (10)
year period being referred to herein as an “Extended Term”) unless, and only if at least
one (1) year prior to the expiration of the Initial Term or, if applicable, at least one (1) year
prior to the expiration of the Extended Term then in effect, either
party shall give the other written notice of its intention not to extend the Initial Term or,
if applicable, the Extended Term then in effect.

     9.3 Termination for Breach. Upon any Party hereto (the “Non-breaching Party”)
becoming aware of a Material Breach of this Agreement by any other Party (the “Breaching
Party”), the Non-breaching Party shall provide to the Breaching Party a written notice
describing such Material Breach. The Breaching Party shall have a sixty (60) day period within
which to cure such breach. If the Breaching Party has not cured such Material Breach within such
period, the Non-breaching Party may terminate this Agreement. Nothing in this Section 9.3
shall prejudice or otherwise restrict the Non-breaching Party in the exercise of any of its other
remedies under this Agreement or Applicable Law.

     9.4 Termination for Failure to Agree Upon an Amended Fee Schedule. The Default
Specialist may terminate this Agreement upon thirty (30) days written notice to the Firm any time
after the parties hereto have failed to agree upon an Amended Fee Schedule.

     9.5 Termination for Insolvency. In the event a Party shall become Insolvent, the
other Party hereto may terminate this Agreement.

     9.6 Provisions Applicable Upon Any Termination of this Agreement.

     (a) Payment of Fees. Notwithstanding any contrary provision contained in this Agreement, upon
the expiration of the Initial Term or any Extended Term of this Agreement, or upon any earlier
termination of this Agreement pursuant to any of the termination provisions contained in this
Agreement, the Default Specialist shall continue to collect and receive all compensation,
reimbursement, and payment due for all Mortgage Default Services provided prior to the Effective
Date of the expiration or the termination of this Agreement.

     (b) Default Specialist Proprietary Information. The Firm shall immediately discontinue the
use of and shall promptly return all Default Specialist Confidential Information that has been made
available to the Firm by reason of participation herein and shall return all such property,
together with any copies thereof in its possession, to the Default Specialist.

     (c) Firm Proprietary Information. The Default Specialist shall immediately discontinue the
use of and shall promptly return all Firm Confidential Information that has been

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

17

 

made available to
the Default Specialist by reason of participation herein and shall return all such property,
together with any copies thereof in its possession, to the Firm.

     (d) Access to Records. Subject to any applicable legal ethics limitations and all other
limitations and requirements imposed by Applicable Laws, the Firm shall provide to the Default
Specialist access, at reasonable times and upon reasonable request,
to records relating to the Legal Services provided in connection with any Mortgage Default
Services the Default Specialist performed for the Firm, for a period ending one year after the
later of (i) expiration of the applicable statute of limitations for any claim which may be
asserted against the Default Specialist arising from the activities pursuant to this Agreement, or
(ii) conclusion of all matters relating to such claim.

     (e) Return of Work Product. Upon termination of this Agreement, or upon any Client’s earlier
request, the Firm will ensure, and the Default Specialist will cooperate fully with the Firm in
ensuring that all Work Product and Work-in-Process, or any lesser part designated by the Firm or
any Client in writing, shall be returned by the Default Specialist to the Firm or such Client at
the Default Specialist’s expense (it being understood and agreed that the Default Specialist shall
have no obligation to return any work product developed or arising out of the clerical, technical,
administrative and other non-legal services performed by it pursuant to the terms hereof).

     9.7 Post-Termination Services.

     (a) Continued Services. Upon the termination of this Agreement in accordance with
Sections 9.3, 9.4 or 9.5, the Default Specialist shall continue to provide
Mortgage Default Services to the Firm with respect to the Client matters and files on which it is
then working, to the extent that the Default Specialist has undertaken to provide Mortgage Default
Services to the Firm prior to the effective date of the expiration or the termination, as
applicable (the “Termination Date”). The Default Specialist shall provide such Mortgage
Default Services pursuant to this Section 9.7 until the earlier of (i) one year from the
Termination Date and (ii) the date that the Firm is able to engage a third party other than the
Default Specialist to provide such Mortgage Default Services.

     (b) Payment for Continued Services. The Default Specialist shall receive payment for the
provision of Mortgage Default Services pursuant to this Section 9.7 at the same rate as
that paid by the Firm prior to the Termination Date for so long as the Default Specialist is
providing Mortgage Default Services pursuant to Section 9.7(a).

ARTICLE X. CHANGES

     10.1 Changes. In the event (a) any Applicable Laws, rules, or regulations or any
interpretations thereof, or any requirements of Clients, Agencies or Investors at any time during
the term of this Agreement are modified, implemented, threatened to be implemented, or determined
to prohibit, restrict or in any way materially change the method of providing or paying for
Mortgage Default Services as described in or contemplated by this Agreement, or

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

18

 

(b) the manner of
providing Mortgage Default Services, including the nature of the relationship or services involved
in foreclosures that are the subject of the Mortgage Default Services, is required to change in any
material respect to meet market demands for services of the type rendered by the Firm, which
change, in either case has or could reasonably be expected to have a material adverse effect on the
ability of either the Firm or the Default Specialist to engage in commercial activity consistent
with and in furtherance of its business plans (all of the foregoing being
hereinafter collectively referred to as “Changes,” and individually, a
“Change”), then the parties to this Agreement shall negotiate in good faith to amend this
Agreement as necessary to provide for procurement of services and payment hereunder, while at the
same time preserving the economic expectations of the Parties as set forth herein, to the greatest
extent possible. To the extent any act or service required of the Default Specialist in this
Agreement should be construed or deemed, by any Applicable Law, governmental authority, agency or
court to constitute the provision of Legal Services, the performance of said act or service by the
Default Specialist shall be deemed waived and forever unenforceable and the provisions of this
Section 10.1 shall be applicable. Neither party shall claim or assert illegality as a
defense to the enforcement of this Agreement or any provision hereof; instead, any such purported
illegality shall be resolved pursuant to the terms of this Section 10.1.

ARTICLE XI. INDEPENDENT RELATIONSHIP

     11.1 Independent Contractor Status. Each of the Parties acknowledges that each is an
independent contractor and not an agent, employee or representative of the other. This Agreement
shall not create any partnership or joint venture between the parties.

     11.2 No Referral Arrangements. The parties hereby acknowledge and agree that no
benefits to the Default Specialist hereunder require or are in any way contingent upon the
recommendation, referral or any other arrangement by the Default Specialist for the provision of
any Legal Services or other service offered by the Firm.

     11.3 No Restriction on the Default Specialist Expansion. The Default Specialist may
from time to time (i) be engaged by the Firm and any other Person to perform services which are not
included in or related to the Mortgage Default Services, or (ii) invest in or engage in businesses
wholly unrelated to the Mortgage Default Services; provided, however, the Default
Specialist shall not provide any Legal Services. Nothing in this Agreement shall be construed to
preclude the Default Specialist from providing services the same as or similar to those provided
under this Agreement to other customers of the Default Specialist during the term of this Agreement

     11.4 Referrals From Others than the Firm. The Default Specialist may from time to
time (i) be engaged by other Persons to perform Mortgage Default Services; (ii) enter into
agreements similar to this Agreement with other Persons; and (iii) enter into co-engagements with
other law firms which will provide Legal Services for the Default Specialist customers, in all
cases without the necessity of obtaining approval from the Firm.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

19

 

ARTICLE XII. INDEMNIFICATION; LIMITATIONS OF LIABILITY

     12.1 No Consequential Damages. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER
PARTY FOR INCIDENTAL OR CONSEQUENTIAL
DAMAGES EVEN IF THE LIKELIHOOD OF SUCH DAMAGES IS KNOWN TO SUCH PARTY.

     12.2 Costs of Enforcement. If either Party files suit in any court against the other
Party to enforce the terms of this Agreement against the other Party or to obtain performance by
the other Party hereunder, the Prevailing Party will be entitled to recover all reasonable costs,
including Reasonable Attorneys’ Fees, from the other Party as part of any judgment in such suit.
The term “Prevailing Party” shall mean the Party in whose favor final judgment after appeal
(if any) is rendered with respect to the claims asserted in the compliant.

     12.3 Force Majeure. No Party hereto shall be liable for delay or default in
performing hereunder other than a delay or default in payment of any monies due to the other Party,
if such performance is delayed or prevented by a Force Majeure Condition.

     12.4 Indemnification of the Firm by the Default Specialist. The Default Specialist
shall indemnify, defend and hold harmless the Firm and its respective officers, directors,
employees, members, and shareholders from and against any claims, damages, losses, liabilities,
costs and expenses, including reasonable attorney’s fees (collectively, the “Firm Damages”)
incurred in connection with the failure of the Default Specialist to perform the Mortgage Default
Services in accordance with this Agreement through negligence of the Default Specialist,
administrative errors and omissions, or otherwise, including any Firm Damages incurred by the Firm
arising out of or in any way related to the Default Specialist’s obligations under Section
5.1 above; provided, however, that the Default Specialist will not be liable
for indemnification hereunder to the extent that the claim, damage, loss, liability, or expense
results from the willful misconduct or negligence of the Firm; and provided,
further, that the maximum obligations for Firm Damages under this Section 12.4
shall be limited to $1,000,000 per action or omission that gives rise to any such indemnification
claim and an aggregate cap totaling $15,000,000 during the Initial Term. Such right of
indemnification under this Section 12.4 will survive the termination of this Agreement.

     12.5 Indemnification of the Default Specialist by the Firm. The Firm acknowledges
that the Firm is responsible for the supervision, as may be required by Applicable Law, of the
employees of the Default Specialist providing Mortgage Default Services to the Firm on behalf of
the Clients pursuant to this Agreement. The Firm shall indemnify, defend and hold the Default
Specialist and its respective officers, directors, employees, members, and partners harmless from
and against any claims, damages, losses, liabilities, costs and expenses, including reasonable
attorney’s fees which may be imposed upon, incurred by or asserted against the Default Specialist
or such other indemnified Persons in any manner relating to or arising out of (i) the provision of
Mortgage Default Services by the Default Specialist to the Firm pursuant to this Agreement solely
in connection with the failure of an attorney employed by the Firm to properly supervise the
employees of the Default Specialist or as a result of complying with such supervising attorney’s
direction or supervision, (ii) any breach of or default under any

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

20

 

Engagement Letter as a result of the referral of files by the Firm to the Default
Specialist pursuant to this Agreement, (iii) any disclosure of any information contained in
any file or otherwise disclosed by the Firm or its employees or agents in contravention or
violation of any Engagement Letter, Applicable Law or other obligation to any other Person or (iv)
the access provided to, or the use of, any software and assets owned or licensed by the Firm to the
Default Specialist in contravention or violation of (A) any contract, license, lease, agreement or
other arrangement to which the Firm is a party or is subject to or (B) Applicable Law. Such right
of indemnification under this Section 12.5 will survive the termination of this Agreement,
and shall be limited to $1,000,000 per action or omission that gives rise to any such
indemnification claim and an aggregate cap totaling $15,000,000 during the Initial Term.
Notwithstanding anything to the contrary herein, with respect to indemnification for actions or
omissions of the Firm existing as of the date hereof for which indemnification is available to the
Default Specialist under the Purchase Agreement, the Default Specialist shall only be entitled to
obtain indemnification for such actions or omissions pursuant to the Purchase Agreement and not
hereunder.

     12.6 Indemnification Procedures. Promptly, upon be coming aware of any matter which
is subject to the provisions of Sections 12.4 or 12.5 (a “Claim”), any
party seeking indemnification (an “Indemnified Party”) must give notice of the Claim to the
other Party (the “Indemnifying Party”), accompanied by a copy of any written documentation
regarding the Claim received by the Indemnified Party. The Indemnified Party shall also provide
reasonable cooperation and information to assist the Indemnifying Party in the defense or
settlement of any Claim. If the Indemnified Party fails to notify the Indemnifying Party of the
Claim promptly or to provide reasonable cooperation and information to defend or settle the Claim,
the Indemnifying Party shall not be required to indemnify the Indemnified Party to the extent that
such failure prejudices the Indemnifying Party’s ability to defend or settle the Claim. The
Indemnifying Party, at its sole option, may take whatever action it deems reasonable and
appropriate in the handling, defense, or settlement of any Claim, subject to the terms of any
applicable insurance policy; provided, however, that with respect to any Claim
asserted by a Client, the Firm shall have all contact with such Client; provided,
further, that the Default Specialist shall not have any liability for indemnification under
this Agreement to the extent that the lack of any such contact with such Client adversely affects
the ability of the Default Specialist to defend any Claim asserted by such Client. The
Indemnifying Party will notify the Indemnified Party in writing of any proposed settlement of a
Claim, and shall not settle any Claim without the prior written consent of the Indemnified Party
unless such settlement includes an unconditional release of all liability of the Indemnified Party
with respect thereto. The Indemnified Party shall not settle any Claim without the prior written
consent of the Indemnifying Party. Notwithstanding the foregoing, the Firm shall have the
exclusive right to settle any Client Claim, provided (i) the amount of any such Claim is not in
excess of $100,000, (ii) that any such settlement includes an unconditional release of the Default
Specialist and any other Indemnifying Party from all liability arising out of such Client Claim and
(iii) that any such settlement does not contain any factual or legal admission by or with respect
to the Default Specialist or any other Indemnifying Party or any adverse statement with
respect to the character, professionalism, expertise or reputation of the Default Specialist
or any other Indemnifying Party.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

21

 

     12.7 Limitation on Indemnification. No claim for indemnification by an Indemnified
Party pursuant to Sections 12.4 or 12.5 shall be payable unless and until the
aggregate amount of all Damages incurred by the Indemnified Party under Sections 12.4 or
12.5 exceeds Twenty-Five Thousand Dollars ($25,000.00), after which the Indemnified Party
may seek indemnification for the full amount of such claims.

     12.8 Sole and Exclusive Remedy. Notwithstanding anything to the contrary in this
Agreement, absent fraud, the Parties agree that the indemnification set forth in this Article XII
shall be the sole and exclusive remedy for breaches of the representations, warranties, covenants
and agreements described herein.

ARTICLE XIII. MISCELLANEOUS

     13.1 No Other Agreement. The terms and conditions set forth in this Agreement are
those adopted by the Parties after extensive study and discussion and supersede all other
agreements, contracts, statements, courses of conduct, and expressions of intent which may have
previously existed between the Parties. This Agreement, to include the appendices, Schedules and
Exhibits attached hereto and made a part hereof for all purposes, represent the entire agreement
between the Parties.

     13.2 Notices. All notices, requests, demands, waivers and other communication
required or permitted to be given under this Agreement shall be in writing and shall be deemed to
have been duly given if (a) delivered personally; (b) sent by registered or certified mail, return
receipt requested, postage prepaid; (c) sent by next-day or overnight courier or delivery to the
applicable address set forth below; or (d) sent via facsimile or other electronic transmission
(including transmission in portable document format by electronic mail), as set forth below or, in
each case, at such other address as may be specified in writing to the other Party:

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

22

 

	 	 	 
	If to the Default Specialist:

	 	If to Seller:
	 
	 	 
	American Processing Company, LLC

c/o Dolan Media Company

Attn : James P. Dolan

1200 Baker Building

706 Second Avenue South

Minneapolis, Minnesota 55402

Fax: (612) 317-9434

Email: jim.dolan@dolanmedia.com

with a copy to:

	 	Trott & Trott, P.C.

Attn: David A. Trott

30400 Telegraph Road, Suite 200

Bingham Farms, Michigan 48025

Fax: (248) 642-4573

Email: dtrott@trottlaw.com

with a copy to:

	Katten Muchin Rosenman LLP

Attn: Walter S. Weinberg

525 West Monroe Street

Chicago, Illinois 60661-3693

Fax: (312) 577-8771

Email: walter.weinberg@kattenlaw.com

	 	Jaffe, Raitt, Heuer & Weiss, P.C.

Attn: William E. Sider, Esq.

27777 Franklin Road, Suite 2500

Southfield, Michigan 48034

Fax: (248) 351-3082

Email: wsider@jaffelaw.com

     All such notices, requests, demands, waivers and other communications shall be deemed to have
been received (x) if by personal delivery, facsimile machine or other electronic transmission
(including transmission in portable document format by electronic mail), on the date after such
delivery, (y) if by certified or registered mail, on the third business day after the mailing
thereof or (z) if by next-day or overnight courier or delivery.

     13.3 Governing Law. This Agreement will be governed by and construed in accordance
with the laws of the State of Michigan without giving effect to its conflict of laws principles.

     13.4 Captions. The captions used in this Agreement are for convenience of reference
only and do not constitute a part of this Agreement and will not be deemed to limit, characterize
or in any way affect the meaning or interpretation of any provision of this Agreement, and all
provisions of this Agreement will be enforced and construed as if no caption had been used in this
Agreement.

     13.5 Severability. If any covenant, agreement, provision or term of this Agreement is
held to be invalid for any reason whatsoever, then such covenant, agreement, provision or term will
be deemed severable from the remaining covenants, agreements, provisions and terms of this
Agreement and will in no way affect the validity or enforceability of any other provision of this
Agreement.

     13.6 Due Authorization. Each party warrants that the terms of this Agreement and its
execution, delivery and performance have been duly authorized and approved by all necessary action
of each Party.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

23

 

     13.7 Counterparts. The Parties may execute this Agreement in separate counterparts,
each of which shall be deemed an original and all of which together will constitute one and the
same instrument. To the extent signed and delivered by means of a facsimile machine or other
electronic transmission (including transmission in portable document format by electronic mail),
this Agreement shall be treated in all manners and respects and for all purposes as an original and
shall have the same binding legal effect as if it were the original signed version thereof
delivered in person. None of the undersigned shall raise the use of a facsimile machine or other
electronic transmission to deliver a signature or the fact that such signature was transmitted or
communicated through the use of a facsimile machine or other electronic transmission as a defense
to the enforceability of this Agreement and each of the undersigned forever waives any such
defense.

     13.8 Amendments; Waivers. No amendment, modification or discharge of this Agreement,
and no waiver hereunder, shall be valid or binding unless set forth in writing and duly executed by
the Party against whom enforcement of the amendment, modification, discharge or waiver is sought.
Any such waiver shall constitute a waiver only with respect to the specific matter described in
such writing and shall in no way impair the rights of the Party granting such waiver in any other
respect or at any other time. Neither the waiver by either of the Parties of a breach of or a
default under any of the provisions of this Agreement, nor the failure by either of the Parties, on
one or more occasions, to enforce any of the provisions of this Agreement or to exercise any right
or privilege hereunder, shall be construed as a waiver of any other breach or default of a similar
nature, or as a waiver of any of such provisions, rights or privileges hereunder.

     13.9 No Third Party Beneficiaries. Nothing in this Agreement shall confer any rights
upon any person or entity other than the Parties and their respective successors and permitted
assigns.

     13.10 No Strict Construction; Interpretation. The language used in this Agreement
will be deemed to be the language chosen by the Parties to express their mutual intent and no rule
of strict construction will be applied against any Person.

     13.11 Binding Effect. This Agreement shall be binding upon and inure to the benefit
of the Parties and their respective successors and permitted assigns.

The remainder of this page is intentionally left blank.

Signature page follows this page

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

24

 

     IN WITNESS WHEREOF, the undersigned hereby execute this Services Agreement as of the date
first above written.

	 	 	 	 	 
	 	 	AMERICAN PROCESSING COMPANY, LLC
	 
	 	 	 	 
	 

	 	By:
	 	DOLAN APC LLC
	 

	 	Its:
	 	Manager
	 
	 	 	 	 
	 

	 	By:
	 	/s/ James P. Dolan
	 

	 	 	 	 
	 

	 	Name:
	 	James P. Dolan
	 

	 	Title:
	 	President
	 
	 	 	 	 
	 	 	TROTT & TROTT, P.C.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David A. Trott
	 

	 	 	 	 
	 

	 	Name:
	 	David A. Trott
	 

	 	Title:
	 	President
	 
	 	 	 	 
	 	 	DAVID A. TROTT
	 
	 	 	 	 
	 	 	/s/ David A. Trott
	 	 	 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

25

 

Exhibit “A”

Malpractice Insurance Policies

	 	 	 	 	 	 	 
	Type:	 	Lawyers Professional Liability
	 	 	 	 
	 
	Carrier:	 	Federal Insurance Company
	 	 	 	 
	 
	Policy Number:	 	8171-6767
	 	 	 	 
	 
	Policy Period:	 	7/7/05-06
	 	 	 	 
	 
	Named Insured:	 	Trott & Trott, PC
	 	 	 	 
	 
	Coverage/Limits:	 	Limit of Liability
	 	$	5,000,000	 
	 	 	Aggregate
	 	$	5,000,000	 
	 	 	Maximum Aggregate
	 	$	7,500	 
	 	 	Grievance
	 	 	 	 
	 	 	 
	 	 	 	 
	Deductibles:	 	Self Insured Retention
	 	$	100,000	 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.

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