Document:

Settlement  Agreement

 Exhibit 10.2 
 SETTLEMENT AGREEMENT 
 This Settlement Agreement (“Settlement Agreement”) is entered into effective
February 1, 2008 (the “Effective Date”), by and among PainCare Holdings, Inc. (“PainCare”), PainCare, Inc. (“PainCare Sub”) (PainCare and PainCare Sub are hereinafter sometimes referred to as the
“Sellers”) on the one hand, and Robert Carpenter, D.C., as his sole and separate property, (hereinafter the “Purchaser”), Randall W. Rodgers, D.O. (“Dr. Rodgers”) and Carefirst Medical Associates & Pain
Rehabilitation, P.C., a Texas professional corporation (the “New Practice”), on the other hand. Each of the Sellers, the Purchaser, Dr. Rodgers and New Practice may be referred to herein as a “Party” or collectively, as the
“Parties.” 
 RECITALS 
 A. On
January 6, 2006, the Sellers, PainCare Acquisition Company XXII, Inc., a Florida corporation authorized to do business in Texas (the “Management Company”), Carefirst Medical Associates, P.A., a Texas professional corporation (the
“Original Practice”) and Dr. Rodgers effected a series of related transactions (the “Carefirst Purchase Transactions”) by which: (i) Dr. Rodgers formed the New Practice and (a) pursuant to that certain General
Assignment and Bill of Sale dated January 6, 2006, the Original Practice transferred all right title and interest to its medical assets to the New Practice, and (b) pursuant to that certain Assignment and Assumption Agreement dated
January 6, 2006, the New Practice assumed certain contracts and liabilities of the Original Practice in order for the New Practice to continue the business of the Original Practice; (ii) Management Company acquired all of the non-medical
assets of the Original Practice pursuant to that certain Merger Agreement and Plan of Reorganization dated January 6, 2006, (the “Carefirst Merger Agreement”); and (iii) the New Practice and Management Company entered into that
certain Management Services Agreement, dated January 6, 2006 (the “Management Agreement”) pursuant to which Management Company would manage the business operations of the New Practice. 
 B. Also on January 6, 2006, the Sellers, Management Company, REC, Inc., a Texas corporation (“REC”) and Purchaser effected a series of related
transactions (the “REC Purchase Transactions”) by which Management Company acquired all of the assets of REC (which included a management and billing agreement with the Original Practice) pursuant to that certain Merger Agreement and Plan
of Reorganization dated January 6, 2006, (the “REC Merger Agreement”). 
 C. One or more of the Parties and others have become dissatisfied
with the arrangement contemplated by the Purchase Transactions and the conduct of the business in the form created by the Purchase Transactions. In addition, certain disagreements and disputes have arisen among the Parties. Each side of this dispute
denies that it has engaged in any misconduct or legally actionable conduct of any kind. 
 D. The Parties have accordingly concluded that it is in their
mutual best interest to settle all claims they may have against each other. By this Settlement Agreement and the ancillary documents hereto, it is the Parties’ intent to completely sever the relationship between (i) the Sellers and the
Purchaser created by the REC Purchase Transactions, which will include the termination of all agreements linking the Parties together, and (ii) the Sellers, on one hand, and Dr. Rodgers and the New Practice, on the other hand, created by
the Carefirst Purchase Transactions, which will include the termination and/or release of the Sellers with respect to all agreements linking the Parties together. 
 E. Therefore, to effectuate the foregoing, the Sellers desire to sell, and the Purchaser desires to purchase all of the issued and outstanding stock of the Management Company for a purchase price described below (the “Stock Purchase
Price”), all pursuant to the terms and conditions of, and as more fully described in, this Settlement Agreement. 
 NOW THEREFORE, in
consideration of the foregoing recitals and the mutual covenants and representations contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties to this Settlement Agreement
agree as follows: 

 TERMS AND CONDITIONS 
 1. Purpose of Settlement Agreement and Absence of Liability. 
 a. This Settlement Agreement and any
and all schedules, exhibits and ancillary documents hereto (collectively, the “Settlement Documents”) are being executed for the purposes of (a) providing for an orderly and amicable separation of the Parties, and
(b) compromising and settling all disputes between them, which shall be accomplished generally by (i) the Purchaser purchasing all of the issued and outstanding common stock of Management Company (the “Management Company Stock”)
from PainCare Sub as his sole and separate property, for the sum of Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00)(the “Stock Purchase Price”) payable as follows: seventeen (17) equal consecutive monthly payments of
Eleven Thousand Seven Hundred Sixty Eight and 37/00 ($11,768.37) beginning on March 1, 2008 and continuing on the first day of each month thereafter until August 1, 2009 whereupon a final payment in an amount equal to Seventy Nine Thousand
One Hundred Seventy Nine and 87/00 Dollars ($79,179.87) shall be due and payable. 
 b. Adjustment of Stock Purchase Price and Promissory
Note Balance. 
 The $250,000.00 set forth in 1.a. above shall be adjusted down by the amount that the accounts payable of the Management
Company at closing exceed the sum of $70,000.00 (the “Accounts Payable Limit”). In the event an adjustment is necessary, the adjustment will be made at Purchaser’s option by crediting such sums as credits toward upcoming payments due
on the promissory note or as a prepayment without penalty to Purchaser on the indebtedness due under the Promissory Note. For purposes of clarification, it is expressly understood and agreed that the Accounts Payable Limit shall not include
obligations of the Management Company with respect to: (i) accrued payroll expense and related taxes; (ii) obligations associated with operating leases; and (iii) any other payables, expenses or obligations which the Purchaser or
anyone under his control or supervision has knowledge thereof. 
 It is expressly understood and agreed, as a condition hereof, that any
payment or agreement associated with this Settlement Agreement will not constitute or be construed as an admission of liability on the part of any of the Parties to this Settlement Agreement. 
 2. Sale of Management Company Stock. 
 a. Sale of
Management Company Stock to Purchaser. Subject to the terms and conditions of this Settlement Agreement, effective as of the Closing Date (as defined in Section 8 below), the Purchaser shall purchase, and PainCare Sub shall sell, transfer,
convey, assign and deliver to the Purchaser in accordance with the terms and conditions of that certain Stock Purchase Agreement attached hereto as Exhibit 2a.(i), the Management Company Stock including all rights, claims and assets (of every
kind, nature, character, and description, whether real, personal or mixed, tangible or intangible, accrued, contingent or otherwise) and wherever situated, of the Management Company, including without limitation, the accounts receivable of
Management Company that remain outstanding on the Closing Date, except as otherwise provided below (collectively, the “Management Company Assets”). It is hereby acknowledged and agreed that the Management Company and the Assets are being
sold subject to all existing accounts payable and other liabilities as more specifically described in Exhibit 2.a.(ii) attached hereto and incorporated herein by reference. 
 b. Excluded Assets. Section 2.a notwithstanding, the PainCare Sub shall not sell, transfer, assign, convey or deliver to the Purchaser, and
the Purchaser is not acquiring any of the following assets of the Management Company (collectively, the “Excluded Assets”): 
 i.
Tax Credits and Records. Federal, state and local income and other tax credits and tax refund claims for periods of time prior to Closing, and associated returns and records, provided the Purchaser shall have reasonable access to such records
to the extent reasonably necessary for the Purchaser’s own tax planning or returns. 
 ii. Business Documents. The following
documents and records of the Management Company: general accounting records, correspondence, policies, procedures, reports, data, its financial statements and records and any other documents not deemed necessary to operate the business on an
on-going basis. However, 

  

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Seller covenants not to destroy such documents and to allow Purchaser access to the records and to obtain copies of the same as may be reasonably necessary
from time to time. In the event Seller is not required by applicable law to maintain should in the future decide to no longer maintain such documents, 
 iii. Cash. All cash, cash equivalents, bank deposits or accounts, securities, short-term investments or similar items held by or owned by the Sellers. For avoidance of doubt, all the accounts receivable, cash,
cash equivalents, bank deposits or accounts, securities, short-term investments or similar items now held by or owned by the Management Company will be included as part of the Management Company Assets to be purchased by Purchaser. In
anticipation of the Closing, the Sellers covenant and agree not to sweep or take any other action to remove or claim any interest whatsoever in the bank deposits of the New Practice or the Management Company after January 29, 2008. 

iv. Equipment. The equipment listed in Exhibit 2b.iv. attached hereto and incorporated herein (the “Excluded Equipment”) is not owned
by the Management Company and therefore shall be part of the Excluded Assets. The parties hereby agree that PainCare will arrange with Purchaser for the pick-up of the Excluded Equipment at the New Practice business locations (the
“Locations”) within 90 days of the Closing (the “Pick-up Time”). The Purchaser and Dr. Rodgers hereby represent and warrant that to the best of their knowledge and belief that as of the Closing Date the Excluded Equipment
has not been damaged and will be at the Pick-up Time in good working order, reasonable wear and tear and normal operational impediments excepted. In addition, the Purchaser and Dr. Rodgers agree to provide access to the Locations at the Pick-up
Time for purposes of removing the Excluded Equipment and in connection therewith, will cooperate in good faith and will provide all reasonable assistance necessary to allow for the removal of the Excluded Equipment. Purchaser reserves the right but
not the obligation to negotiate for the purchase or lease of the Excluded Equipment provided that PainCare and its affiliates are released from any further obligation, debt or liability as it pertains to such Excluded Equipment. In the event such an
agreement is reached prior to the Pick-up Time and PainCare approves same, then PainCare shall not be entitled to pick up the Excluded Equipment. 
 c. Stock Purchase, Pledge and Security Agreements. The Purchaser and the Sellers shall enter into a Stock Purchase Agreement in substantially the same form as attached hereto as Exhibit 2(a), which is incorporated herein by
reference, for the purpose of effectuating the sale and transfer of the Management Company Stock to the Purchaser. The Purchaser and the Sellers shall enter into a Stock Pledge Agreement and Security Agreement in substantially the same forms as
attached hereto as Exhibits 2(c)(i) and (ii), which are incorporated herein by reference, for the purpose of securing the payment of the Stock Purchase Price. 
 d. Liabilities. The Parties recognize and agree that the Management Company shall remain responsible for the payment of all its accounts payable and other contractual obligations disclosed on Exhibit 2.a.(ii)
which it has and will incur in the ordinary course of its business and that the sale of the Management Company Stock is sold subject to these obligations. 
 Additionally, Purchaser agrees to assume all obligations, liabilities, duties and responsibilities arising out of any investigations, audits, demands, claims, damages, fines, or penalties incurred by the Management
Company or Purchaser arising from any actions relative to the New Practice and its business taken against the Sellers and/or their successors in interest by any government funded health care benefit program or any commercial or private third party
payor for acts or occurrences that occur on and after the Closing Date. Sellers agree to assume all obligations, liabilities, duties and responsibilities arising out of any investigations, audits, demands, claims, damages, fines, or penalties
incurred by the Purchaser or the Management Company arising from any actions relative to the New Practice and its business taken against the Sellers, the Management Company or Purchasers and/or their successors in interest by any government funded
health care benefit program or any commercial or private third party payor relating to the Assumed Liabilities and Assumed Contracts and for acts or occurrences that occurred before the Closing Date provided that (i) such acts or occurrences
were not the acts or omissions of, either Purchaser or any employee, contractor or agent under their supervision or control; or (ii) such acts or omissions to act are not known by either Purchaser with the understanding that the limit of any
such assumption of liabilities pursuant to this provision shall be $250,000., 
  

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 3. Sale of Equipment. 
 a. Sale of Equipment to Purchaser. Subject to the terms and conditions of this Settlement Agreement, effective as of the Closing Date (as defined in Section 8 below), Sellers shall sell, transfer, convey,
assign and deliver to the Purchaser to the extent owned by Sellers and not already owned by the Management Company, all of the equipment and personal property assets now located in, or about the premises operated by the Management Company at 403
Highway 110 North, Whitehouse Texas and 1007 W Gentry Pkwy Tyler, Texas, save and except the equipment listed on Exhibit 2b.iv. (the “Purchased Equipment”) The Purchaser and PainCare shall enter into a Bill of Sale in substantially the
same form as attached hereto as Exhibit 3(a), which is incorporated herein by reference, for the purpose of effectuating the sale and transfer of the Purchased Equipment to the Purchaser. 
 4. Termination of Other Agreements. 
 a. The Sellers,
on one hand, and Purchaser, New Practice and Dr. Rodgers, on the other hand, shall terminate all agreements, other than this Agreement, written or oral, between them as of the Closing Date pursuant to the Termination Agreement attached hereto
as Exhibit 3(a), and no Party thereto shall have obligation or responsibility to any other Party thereto under the terms of any such agreements on or after the Closing Date. 
 c. In connection with the termination of the foregoing agreements, the Parties are hereby deemed to have waived any applicable termination provisions
contained in such agreements or any and all other conditions (including, but not limited to, any conditions precedent or conditions subsequent) to the termination thereof. 
 4. Mutual Releases. 
 a. In consideration of (i) the releases given hereby by the Sellers,
(ii) the agreement of the Sellers to terminate all agreements between the Parties other than this Agreement, (iii) the agreement of the Sellers to sell to the Purchaser the Management Company Stock, and (iv) other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Purchaser, New Practice and Dr. Rodgers shall execute that certain General Release in favor of the Sellers in substantially the same form as attached hereto as
Exhibit 4(a). 
 b. In consideration of (i) the releases given hereby by the Purchaser, New Practice and Dr. Rodgers
(ii) the agreement of the Purchaser, New Practice and Dr. Rodgers to terminate all agreements between them and the Sellers other than this Agreement, (iii) the agreement of the Purchaser to buy the Management Company Stock, and
(iv) other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Sellers shall execute that certain General Release in favor of the Purchaser, New Practice and Dr. Rodgers in substantially the
same form as attached hereto as Exhibit 4(b). 
 c. Notwithstanding the releases referenced above, Purchaser and Dr. Rogers do
not release Sellers, and Sellers hereby agree to: 
 1. Provide adequate written certification that all PainCare shares previously issued to
Purchaser and Dr. Rogers are registered and may immediately be sold in accordance with PainCare’s currently effective S-1 prospectus, and 
 2. The additional shares of PainCare earned by Purchaser (57,040 shares) and Dr. Rogers (7,778 shares) will be delivered at or within ten (10) business days of Closing along with adequate written certification that the shares are
registered and may immediately be sold in accordance with PainCare’s currently effective S-1 prospectus. 
 5. Representations and Warranties by the
Purchaser, Dr. Rogers and New Practice. Purchaser, Dr. Rogers and New Practice represent, warrant and covenant to the Sellers as follows: 
 a. The statements made by Purchaser, Dr. Rogers and New Practice in this Agreement are and will be correct and complete as of the date of the Effective Date of this Settlement Agreement and as of the Closing
Date. 
 b. Purchaser, Dr. Rogers and New Practice have the full power and authority to execute, deliver and perform this Settlement
Agreement and the documents to be delivered by them under this Settlement Agreement. 
  

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 c. This Settlement Agreement and the Settlement Documents to be executed and delivered by Purchaser,
Dr. Rogers and New Practice constitutes the legal, valid and binding obligations of such Parties, and will be enforceable in accordance with their respective terms against them, subject to bankruptcy, insolvency, moratorium, reorganization and
similar laws of general applicability affecting the rights and remedies of creditors and to general principles of equity, regardless of whether enforcement is sought in proceedings in equity or at law. 
 d. The execution and deliver by Purchaser, Dr. Rogers and New Practice of this Settlement Agreement and the Settlement Documents, and any and all
other agreements, documents or instruments contemplated hereby, and the fulfillment of and compliance with the respective terms hereof and thereof by the Purchaser, Dr. Rogers and New Practice do not and will not (i) conflict with or
result in a breach of the terms, conditions, or provisions of, (ii) constitute a default or event of default under, (iii) give any third party the right to accelerate any obligation under, (iv) result in a violation of, or
(v) require any authorization, consent, approval exemption or other action by or notice to any court or governmental authority pursuant to any regulation, order or contract to which any of the Purchaser, Dr. Rogers and New Practice is
subject. 
 e. Neither the Purchaser, Dr. Rogers nor New Practice has employed any broker, finder, advisor, consultant or other
intermediary in connection with this Settlement Agreement or the transaction contemplated hereby who is or might be entitled to any fee, commission or other compensation from any one of the Sellers, upon or as a result of the execution of this
Settlement Agreement or the consummation of the transactions contemplated hereby. 
 f. All PainCare shares previously issued to Purchaser
and Dr. Rogers are registered and may immediately be sold in accordance with PainCare’s currently effective S-1 prospectus. 
 g.
The additional shares of PainCare earned by Purchaser (57,040 shares) and Dr. Rogers (7,778 shares) will be delivered at or within ten (10) business days of Closing along with adequate written certification that the shares are registered
and may immediately be sold in accordance with PainCare’s currently effective S-1 prospectus. 
 6. Representations and Warranties by the
Sellers. Each of the Sellers, jointly and severally, represents and warrants to the Purchaser as follows: 
 a. The statements made by the
Sellers in this Section 6 are and will be correct and complete as of the date of this Settlement Agreement and as of the Closing Date. 
 b. Each of the Sellers is a corporation, validly existing and in good standing under the laws of the State of their domicile. 
 c.
This Settlement Agreement and the Settlement Documents to be executed and delivered by each Seller have been duly approved by all requisite action of such Seller, and such Seller has full power and authority to execute, deliver and perform this
Settlement Agreement, together with all of the Settlement Documents to be executed and delivered by it. 
 d. PainCare Sub owns, has not
assigned, sold or otherwise transferred and has the full right to sell the Management Company Stock Practice, free and clear of any claim, lien, encumbrance, option to purchase by, or other rights of any third person arising by, through or under any
Seller, other than the liens granted to HBK Investments, LP, a Delaware limited partnership (“HBK”) in connection with that certain Loan and Security Agreement, dated as of May 10, 2005, and entered into by and between PainCare and
HBK, among others (hereinafter referred to sometimes as the “HBK Debt” or “HBK Loan Agreement”), which liens HBK will release at Closing. 
 e. This Settlement Agreement and the Settlement Documents to be executed and delivered by each of the Sellers constitutes the legal, valid and binding obligations of such Seller, and will be enforceable in accordance
with their respective terms against such Seller, subject to bankruptcy, insolvency, moratorium, reorganization and similar laws of general applicability affecting the rights and remedies of creditors and to general principles of equity, regardless
of whether enforcement is sought in proceedings in equity or at law. 
  

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 f. The execution and deliver by each Seller of this Settlement Agreement and the Settlement Documents,
and any and all other agreements, documents or instruments contemplated hereby, and the fulfillment of and compliance with the respective terms hereof and thereof by the Sellers do not and will not (i) conflict with or result in a breach of the
terms, conditions, or provisions of, (ii) constitute a default or event of default under, (iii) give any third party the right to accelerate any obligation under, (iv) result in a violation of, or (v) require any authorization,
consent, approval exemption or other action by or notice to any court or governmental authority pursuant to, the articles of incorporation or bylaws of the Sellers or any regulation, order or contract to which any of the Sellers are subject, except
for the required consent by HBK. 
 g. The Sellers have not employed any broker, finder, advisor, consultant or other intermediary in
connection with this Settlement Agreement or the transaction contemplated hereby who is or might be entitled to any fee, commission or other compensation from any of the Purchaser, upon or as a result of the execution of this Settlement Agreement or
the consummation of the transactions contemplated hereby. 
 h. Tax Matters. 
 Tax Returns. The Management Company has filed all tax returns when due except in the case where extensions were filed. To the best of Seller’s
knowledge, all such tax returns were correct and complete in all material respects and were filed (or, an extension was filed) on a timely basis. To the best of Seller’s knowledge, all taxes owed by the Management Company (whether or not shown
on any tax return) have been paid. The Management Company currently is not the beneficiary of any extension of time within which to file any tax return. To the best of Seller’s knowledge, no claim is currently pending by an authority in a
jurisdiction where the Management Company is or may be subject to taxation by that jurisdiction. To the best of Seller’s knowledge, there are no security interests on any of the assets of the Management Company that arose in connection with any
failure (or alleged failure) to pay any tax. 
 Withholding. To the best of Seller’s knowledge, the Management Company has
withheld, and remitted when due, all taxes required to have been withheld or paid in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder, or other third party. 
 No Disputes of Claims. The Management Company does not expect any authority to assess any additional taxes for any period for which tax returns
have been filed. There is no dispute or claim concerning any tax liability of the Management Company either: (a) claimed or raised by any authority in writing; or (b) as to which any directors and officers (and employees responsible for
tax matters) of the Management Company has knowledge based upon personal contact with any agent of such authority. 
 No Waivers. The
Management Company has not waived any statute of limitations in respect of taxes or agreed to any extension of time with respect to a tax assessment or deficiency. 
 No Special Circumstances. The Management Company has not made any payments, is not obligated to make any payments, and is not a party to any agreement that could obligate it to make any payment that would be an
excess parachute payment that would not be deductible because of Code Section 280G. The Management Company has not been a United States real property holding corporation within the meaning of Code Section 897(c)(2) during the applicable
period specified in Code Section 897(c)(1)(A)(ii). The Management Company has disclosed on its federal income tax returns all positions taken therein that could give rise to a substantial understatement of federal income tax within the meaning
of Code Section 6662. 
 Audits of Tax Returns. To the best of Seller’s knowledge, no tax return of the Management Company
is currently under audit or examination by any taxing authority, and the Management Company has not received a written notice stating the intention of any taxing authority to conduct such an audit or examination. Each deficiency of which the
Seller’s are aware, if any, resulting from any audit or examination relating to taxes by any taxing authority has been paid, except for deficiencies being contested in good faith. The revenue agents’ reports related to any prior audits and
examinations, if any, have been delivered to Purchaser. 
  

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 Period of Assessment. To the best of Seller’s knowledge, there is no agreement or other
document extending, or having the effect of extending, the period of assessment or collection of any taxes. 
 Tax Agreements. The
Management Company is not a party to or bound by any tax sharing agreement, tax indemnity obligation or similar agreement with respect to taxes, including any advance pricing agreement, closing agreement or other agreement relating to taxes with any
taxing authority. 
 Inclusions in Taxable Periods. The Management Company will not be required to include in a taxable period ending
after the Closing Date taxable income attributable to income that accrued in a prior taxable period but was not recognized in any prior taxable period as a result of the installment method of accounting, the completed contract method of accounting,
the long-term contract method of accounting, the cash method of accounting or Code Section 481 with respect to a change in method of accounting occurring before the Closing Date or comparable provisions of state, local or foreign tax law.
Sellers agree to pay all such tax, if any, as they become due. 
 Consents. The Management Company has not filed a consent pursuant
to or agreed to the application of Code Section 341(f). 
 Personal Holding Company. The Management Company has not, during the
five (5) year period ending on the Closing Date, been a personal holding company within the meaning of Code Section 541. 
 2007 Federal and State Tax Returns and Tax Liability. Seller shall prepare and file, (with the consent and approval of Purchaser) and be responsible for payment of any state local or federal tax liability for the year ending
December 31, 2007 and a proportionate part of any 2008 liability for periods of time on or before Closing. To the extend any such tax liability is imposed on and paid by the Management Company or Purchaser, the Stock Purchase Price will be
reduced by a like amount. 
 7. Closing. 
 a. The closing of the transactions contemplated by this Settlement Agreement (the “Closing”) shall be held on or before the Effective Date (the “Closing Date”), or such other time, as agreed upon in writing by the
Parties hereto and shall be handled via facsimile execution with originals to follow via overnight delivery. The respective counsel for each of the Sellers, on the one hand, and the Purchaser, on the other hand, will hold the other parties’
execution pages of the documents set forth at Section 9(b) below in trust until counsel for the parties are satisfied that all conditions to Closing have been satisfied at which time each counsel shall release executed documents to their
respective client upon written confirmation from the Sellers or its legal counsel that the aforementioned wire has been received; all without any additional required action by the parties. 
 b. At the Closing: 
  

	 	(i)	The Sellers shall deliver to the Purchaser the following: 

  

	 	(1)	A duly executed Stock Purchase Agreement; 

  

	 	(2)	A duly executed Termination Agreement; 

  

	 	(3)	A duly executed General Release in favor of Purchaser, Dr. Rodgers and New Practice; 

  

	 	(4)	A duly executed Security Agreement; 

  

	 	(5)	A duly executed Pledge Agreement; 

  

	 	(6)	A duly executed Bill of Sale for the Purchased Equipment 

  

	 	(7)	A duly executed Secretary’s Certificate of the Sellers certifying as to the resolutions approved by the Board of Directors of each of the Sellers to enter into this Settlement
Agreement and consummate the transactions contemplated hereby; 

  

	 	(8)	A Consent and Partial Release Agreement signed by HBK; 

  

	 	(9)	Such documents as are necessary to remove all authorized signatures of the Sellers from the Management Company’s bank accounts and replacing same with Purchaser; and

  

	 	(10)	Such other documents and certificates as are required or otherwise reasonably requested by the Purchaser pursuant to the provisions of this Settlement Agreement or any ancillary
document hereto. 

  

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	 	(ii)	The Purchaser, Dr. Rodgers and New Practice, as required herein, shall deliver to the Sellers the following: 

  

	 	(1)	A duly executed Stock Purchase Agreement; 

  

	 	(2)	A duly executed Termination Agreement; 

  

	 	(3)	A duly executed General Release in favor of Sellers; 

  

	 	(5)	A duly executed Security Agreement; 

  

	 	(6)	A duly executed Pledge Agreement; and 

  

	 	(7)	Such other documents and certificates as are required or otherwise reasonably requested by the Sellers pursuant to the provisions of this Settlement Agreement.

 8. Required Consents; Further Assurances. The Parties will use commercially reasonable efforts to obtain in writing, as promptly as
possible, all consents, authorizations and approvals required to be obtained by any of them in connection with the transactions contemplated by this Settlement Agreement. In the event any Party discovers additional instruments, certificates,
consents or other documentation are necessary to effectuate delivery of the Settlement Documents, or any other properties, rights and interests intended to be transferred in accordance with the Settlement Documents or this Settlement Agreement, each
other Party agrees to execute and deliver such other instruments, certificates, consents, and documents as are reasonably requested by such Party. 
 9.
No Admission of Liability; Covenant Not to Sue. 
 a. The releases set forth in the General Releases are accepted by the parties hereto
as compromises of disputed claims and comprise part of the transactions contemplated herein, and shall not be construed as an admission of liability on the part of any of the Parties hereto. 
 b. Each of the Parties hereto agrees that none of them, nor any of their respective agents, employees, personal or legal representatives, successors or
permitted assigns will bring, commence, institute, maintain or prosecute any action at law or proceeding in equity, or any legal proceeding whatsoever, or any claim for relief or damages, against any of the other Parties hereto which is based in
whole or in part on any of the matters or claims released under the General Releases. The parties hereto agree that the releases contained in the General Releases may be pleaded as a full and complete defense, and may be used as a basis for an
injunction against, any action or suit or other proceeding that may be commenced, instituted, prosecuted or attempted by any of the other Parties hereto or any of their personal or legal representatives, employees, agents, officers, directors,
successors or permitted assigns, in breach of any of the provisions set forth in this Settlement Agreement. The Parties hereto further agree that none of them will, at any time, take any action of any nature whatsoever to (i) obtain a
determination that this Settlement Agreement, or the transactions contemplated hereby, are unlawful, illegal or against public policy, (ii) challenge the validity or enforceability of the Agreement or the transactions contemplated hereby,
(iii) or that any of the arrangements set forth in the Agreement, or any of the transactions contemplated hereby, are unlawful in any other manner whatsoever. 
 10. Access to Records and Premises. 
 a. For a period of three (3) years from the date hereof (or such longer period as
may be necessary for the Parties to comply with applicable Federal and state regulations), the Parties hereto shall retain and provide each other and their designees with reasonable access to each other’s books and records for proper business
purposes, including, but not limited to, defending claims asserted against the other, or as may be otherwise reasonably necessary in order for the Parties to carry on their business operations and to comply with applicable statutory, regulatory or
judicial requirements provided such access shall require seventy-two (72) hours prior written notice and not interfere with the business operation of the other Party. On the Closing Date, Purchaser shall deliver to Sellers all intellectual
property belonging to Sellers, including, but not limited to, marketing materials (including signs and logos), quality improvement processes, compliance programs, policy and procedure handbooks and manuals, and all other documents and materials in
the possession of Purchaser that contain any confidential information. 
  

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 11. Indemnity. 
 a. Each of the Sellers shall jointly and severally indemnify, defend and hold harmless each of the Purchaser, Management Company, their heirs, successors, assigns, past, present and future affiliates, parents and
subsidiaries, and each of their past, present and future officers, directors, managers, employees, agents, shareholders, members, partners, insurers, successors and assigns (the “Purchaser Indemnitees”), from and against any demand, claim,
action, damage or liability (including without limitation reasonable attorney fees, expert and outside consulting fees and related court expenses) (“Damages”) asserted against or imposed upon or incurred by the Purchaser Indemnitees, or
any them, to the extent resulting from: 
 (i) a breach of any representation, warranty or covenant of any of the Sellers set
forth in this Settlement Agreement or any Settlement Documents; and 
 (ii) any assertion with respect to the Management
Company or the use of the Management Company Assets arising before the Closing Date; noncompliance with any sales or use taxes resulting from the consummation of the transactions contemplated by this Settlement Agreement and the Settlement Documents
arising on or before the Closing Date; 
 (iii) any assertion with respect to contractual obligations of the Management
Company arising on or before the Closing Date except (1) those contractual obligations which disclosed in Exhibit 2.a.(ii); (2) any accrued payroll expense and related taxes; (ii) those obligations associated with operating leases;
and (iii) any other payables, expenses or obligations which the Purchaser or anyone under his control or supervision has knowledge.; and 
 (iv) any assertion with respect to accounts payable of the Management Company or any other unpaid operating liability or expense relating to the operation of the Management Company that arising on or before the
Closing Date except (1) those contractual obligations which disclosed in Exhibit 2.a.(ii); (2) any accrued payroll expense and related taxes; (ii) those obligations associated with operating leases; and (iii) any other payables,
expenses or obligations which the Purchaser or anyone under his control or supervision has knowledge. 
 b. Purchaser shall indemnify, defend
and hold harmless each of the Sellers, their successors, assigns, past, present and future affiliates, parents and subsidiaries, and each of their past, present and future officers, directors, managers, employees, agents, shareholders, members,
partners, insurers, successors and assigns (the “Seller Indemnitees”), from and against any Damages asserted against or imposed upon or incurred by the Seller Indemnitees, or any them, to the extent resulting from: 
 (i) a breach of any representation, warranty or covenant of Purchaser set forth in this Settlement Agreement or any Settlement Documents,;

 (ii) noncompliance with any sales or use taxes resulting from the consummation of the transactions contemplated by this
Settlement Agreement and the Settlement Documents arising after the Closing Date; and 
 (iii) any assertion with respect to
accounts payable and other contractual obligations of the Management Company. 
 c. The indemnified party shall give prompt written notice to
the indemnifying party of any claim which might give rise to a claim by the indemnified party against the indemnifying party based on the indemnity agreement contained in this Settlement Agreement, stating the nature and basis of said claims and the
amounts thereof, to the extent known. After such notice, if the indemnifying party shall acknowledge in writing to the indemnitee that the indemnifying party shall be obligated under the terms of its indemnity hereunder in connection with such
lawsuit, action or claim and the indemnifying party shall have presented evidence satisfactory to the indemnitee of the indemnifying party’s financial ability to satisfy its obligations under this Settlement Agreement or, in the
indemnitee’s sole discretion, the indemnifying party shall have provided to the indemnitee collateral or security sufficient to satisfy the indemnifying party’s obligations to the indemnitee hereunder, then the indemnifying party shall be
entitled, if it so elects, to take control of the defense and investigation of such claim, lawsuit or action and to employ and engage attorneys of its own choice to handle and contest and defend the same, at the indemnifying party’s cost, risk
and expense. If the claim, lawsuit or action is an insured claim under the indemnifying party’s applicable insurance coverage, the claim shall be submitted to the insurance carrier and the indemnification obligation shall only be for such
amount as not covered by such insurance policy. The indemnitee shall cooperate in all reasonable respects, at the cost and expense of the indemnifying party, with the indemnifying party, the insurance carrier (if applicable) and such attorneys in
the investigation, trial and defense of such lawsuit or 

  

 9 

 
action and any appeal arising therefrom, or in the processing and resolution of any claim filed with the insurance carrier, and both parties shall cooperate
with each other to insure the diligent and timely resolution of the matters in this Settlement Agreement and in providing access to relevant books and records in their possession; provided, however, that the indemnitee may, at its own cost, select
counsel and participate in the investigation, settlement, trial and defense of such claim, lawsuit or action and any appeal arising therefrom. No indemnifying party may effect any settlement that could result in any cost, expense or liability to the
indemnitee unless such indemnitee consents in writing to such settlement and the indemnifying party agrees to indemnify the indemnitee therefore. No indemnitee may pay any claim or effect any settlement that could result (i) in any cost,
expense or liability of the indemnifying party under this Settlement Agreement or otherwise, or (ii) in preventing the indemnifying party from recovering under the indemnifying party’s insurance coverage, unless the indemnifying party
consents in writing to such payment or settlement; provided, however, that the indemnitee may pay any such claim or effect a settlement if the indemnitee relieves the indemnifying party of any liability therefore. All insurance proceeds collected
pursuant to the indemnitee’s insurance coverage shall be paid to satisfy such claim, lawsuit or enforcement action and the balance, if any, shall be paid to the indemnitee. Any damages incurred by an indemnitee not covered by insurance shall be
paid to indemnitee by the indemnifying party. 
 d. All of the representations, warranties, covenants, and agreements contained in this
Settlement Agreement are material and have been relied upon by each of the parties hereto and shall survive the Closing for their applicable statute of limitations. The representations and warranties contained herein shall not be affected by any
investigation, verification or examination by any party hereto or by anyone on behalf of such party. 
 e. Each party hereto acknowledges
that he or it has had a full and fair opportunity to review this Settlement Agreement, understands all of its terms and provisions, and has consulted with an attorney of his or its choice before executing this Settlement Agreement. Each Party also
acknowledges that no promises or inducements have been offered or given to him or it to persuade him or it to execute this Settlement Agreement, other than that consideration herein recited; that such party is not relying on any representations or
statements by any other party in connection with this Settlement Agreement, other than representations and statements contained herein or instruments executed or delivered pursuant to this Settlement Agreement; and that this Settlement Agreement,
together with instruments executed or delivered pursuant to this Settlement Agreement, is intended as a full accord and satisfaction of bona fide dispute concerning the relationship between the Parties. 
 f. Each party and his or its attorneys have made various statements and representations to the other party and his or its attorneys during negotiations
leading to this Settlement Agreement. Nevertheless, each party specifically does not rely upon any statement, representation, legal opinion, or promise of any other party or his or its counsel in executing this Settlement Agreement or in making the
settlement provided for herein, except as expressly stated in this Settlement Agreement. The representations and releases contained in this Settlement Agreement will survive the consummation of the transactions contemplated by this Settlement
Agreement. 
 12. Confidentiality. No party will disclose or use the terms of this Settlement Agreement or the Settlement Documents, other than the
fact of settlement, to anyone other than such party’s attorneys, members, managers, shareholders, lenders, or accountants, in connection with arbitration/ litigation to enforce this Settlement Agreement, or as otherwise required by law or as
deemed appropriate by the Sellers’ or Purchaser’s legal counsel. 
 13. Nondisparagement. From and after the date of this Settlement
Agreement, each party will refrain from making any disparaging statements, communications or comments about another party to this Settlement Agreement, and from in any way interfering with their existing or prospective business relationships.

 14. Notices. All notices, requests, demands, claims, and other communications under this Settlement Agreement must be in writing. Any notice,
request, demand, claim, or other communication under this Settlement Agreement will be deemed duly given only if it is sent by registered, certified, or express mail, return receipt requested, postage prepaid, and must be addressed to the intended
recipient as follows: 
  

			
	If to the Sellers, or any of them, at:	  	PainCare Holdings, Inc.
		  	1030 North Orange Avenue
		  	Suite 105
		  	Orlando, Florida 32801
		  	Attention: CEO

  

 10 

			
	If to the Purchaser at:	  	Robert Carpenter, D.C.
		  	403 Highway 110 North
		  	Whitehouse, Texas 75791
		
	With a copy to:	  	
		  	William D. Farrar
		  	William D. Farrar & Associates, PLLC
		  	3316 Woods Blvd, Suite 100
		  	Tyler, Texas 75707
		  	Facsimile: 903-597-6417

 Notices will be deemed given and received upon confirmation of receipt if sent by facsimile, the one day after
pick-up if sent by reputable overnight courier, next day delivery service, or three (3) days after mailing if sent by certified or registered mail, or when delivered by express mail. Either Party may change the address to which notices,
requests, demands, claims and other communications under this Settlement Agreement are to be delivered by giving the other Party notice in the manner set forth above. 
 15. Final Agreement. This Settlement Agreement, together with the other Settlement Documents, constitutes a single, integrated, written contract expressing the entire agreement of the Parties relative to this
matter. No covenants, agreements, representations or warranties of any kind whatsoever have been made by any party, except as specifically set forth in this Settlement Agreement. All prior discussions and negotiations have been and are merged and
integrated into and are superseded by, this Settlement Agreement. 
 16. Governing Law. This Settlement Agreement will be governed and construed in
accordance with the laws of the State of Texas, without giving effect to choice of law principles. Venue for any proceedings brought under this Agreement shall be the appropriate federal or state courts situated in and for Smith County, Texas.

 17. Amendments in Writing. Any amendments to this Settlement Agreement must be in writing and signed by or on behalf of all Parties to the
Settlement Agreement and HBK. 
 18. Enforceability; Waiver. Should any provision of this Settlement Agreement be found legally unconscionable,
objectionable, or otherwise unenforceable, all other provisions of this Settlement Agreement will remain in full force and effect. No delay or omission on the part of any Party hereto in exercising any right hereunder shall operate as a waiver of
such right or any other right under this Settlement Agreement. 
 19. No Assignment of Any Rights or Claims. The Parties to this Settlement Agreement
warrant that they have not assigned the claims released herein, that they will not assign the claims before the Closing, and that they have the full right to execute this Settlement Agreement. 
 20. Survival. The warranties, representations, covenants and agreements contained in this Settlement Agreement will survive the Closing, and will survive
indefinitely. 
 21. Section Headings. The section headings appearing in this Settlement Agreement have been inserted for the purpose of convenience
and ready reference. They do not purport to, and should not be deemed to define, limit, or extend the scope or intent of any section. 
 22. Cooperation
in Drafting. Each party has cooperated in the drafting and preparation of this Settlement Agreement. Hence, in any litigation or arbitration concerning this Settlement Agreement, the same will not be construed against any party. 
 23. Expenses. All expenses in connection with the preparation of this Settlement Agreement and Settlement Documents, including, without limitation, counsel fees,
accounting fees and disbursements, shall be borne by the respective party(ies) incurring such expense, whether or not such transactions are consummated. 
 24. Execution in Counterparts and by Facsimile. This Settlement Agreement may be signed in counterparts and facsimile copies, each of which may be delivered by telecopy or other electronic means as agreed to by the Parties, but will
not be effective until all parties have signed at least one counterpart. 
  

 11 

 25. Time is of the Essence. Time is of the essence with regard to all terms and provisions set forth in this
Agreement. 
 [Signatures appear on next page] 
  

 12 

 This Settlement Agreement is hereby made as of the Effective Date. 
  

									
	“SELLERS”
			
	PainCare Holdings, Inc.	 		 	PainCare, Inc.
					
	By:	 	 /s/ Randy Lubinsky
	 		 	By:	 	 /s/ Mark Szporka

		 	Randy Lubinsky, Chief Executive Officer	 		 		 	Mark Szporka, Chief Executive Officer
			
	“PURCHASER”	 		 	“DR. RODGERS”
			
	 /s/ Robert Carpenter, D.C.
	 		 	 /s/ Randall W. Rodgers, D.O.

	Robert Carpenter, D.C.	 		 	Randall W. Rodgers, D.O.
				
	“NEW PRACTICE”	 		 		 	
				
	Carefirst Medical Associates & Pain Rehabilitation, P.C.	 		 		 	
					
	By:	 	 /s/ Randall W. Rodgers, D.O.
	 		 		 	
		 	Randall W. Rodgers, D.O.	 		 		 	

  

 13 

 Exhibit 2b.iv. 
 Excluded Equipment 
  

	1.	EDX machine; 

	2.	C-Arm and table and related accessories; 

	3.	Leg Extension/Curl (Tyler); 

	4.	Lumbar Extension (Tyler); 

	5.	Overhead Press (Tyler); 

	6.	Seated Dip (Tyler); 

	7.	Torso Arm (Tyler); and 

	8.	Upper Back Extremity (Tyler). 

  

 14Separation Agreement and General Release

 EXHIBIT 10.14 
 SEPARATION AGREEMENT AND GENERAL RELEASE 
 1. Agreement. I, Joseph C. Kolshak, the
undersigned and individual named on the signature page hereto, wish to accept the benefits being offered by Delta Air Lines, Inc. (“Delta”) under the Delta Air Lines, Inc. 2007 Officer and Director Severance Plan, (the
“Plan”). In agreeing to participate in the Plan, I acknowledge I have carefully reviewed the provisions of the Plan, as well as this Separation Agreement and General Release (“Agreement”). I believe
both the Agreement and the Plan are in my best interest and I acknowledge entering into this Agreement voluntarily and without coercion. All parties acknowledge that had I not separated from Delta, my employment would have been terminated, and I had
knowledge of that fact. I further acknowledge and agree that my retirement date with Delta shall be January 1, 2008. I also agree to resign from any positions with any Delta subsidiary or affiliate as of December 31, 2007. 
 2. Severance Benefits. In exchange for my voluntarily executing and returning this Agreement to Delta, and in recognition of my termination of
employment satisfying all eligibility criteria set forth in the Plan, Delta will provide me with the benefits as described in the Plan: (a) subject to the required withholding and payment of all applicable federal, state and local taxes;
(b) except as provided in Section 3 below, with no tax reimbursement by Delta related to any travel privileges or any other benefits provided under the Plan; and (c) in lieu of any Career Transition Services provided under the Plan,
Delta agrees to pay the actual reasonable attorney fees I incurred to negotiate and prepare this Agreement, but which payment shall not exceed $5000.00 in total. In addition to the benefits under the Plan, for a period of one year from my
separation, Delta will also continue to provide me with the same level of residential security services as provided immediately before my separation. Section 7 below notwithstanding, Delta shall also allow me to retain the laptop computer and
“Blackberry” device I currently have, (together “the electronic hardware”) but I agree that upon my separation, I shall present the electronic hardware to Delta so that Delta may remove all Delta software, information and
programs there from. Delta shall have no obligation to maintain the electronic hardware after my separation, nor to pay any monthly operating fees nor reimburse me for such fees. I acknowledge and agree that Delta will have no obligation to provide
me with any benefits in connection with my employment relationship with Delta, or the termination of that relationship, except as described in the Plan and this Agreement (other than retirement, death or equity-based benefits in accordance with the
respective terms of any retirement, death or equity-based benefits plan in which I participated during my employment with Delta). I specifically acknowledge that as provided in the Plan, payment of certain of my Severance Benefits may be subject to
delayed payment pursuant to Section 409A of the Internal Revenue Code of 1986, as determined by Delta. 
 3. Additional Flight
Privileges. In addition to the non revenue space available travel privileges otherwise available to me as a retiree of Delta, but in lieu of the travel privileges provided under the Plan, for a period of ten years from my retirement date Delta
will allow me, my spouse, dependent children and other “PPR” members to be eligible for the same non revenue travel benefits as those provided to active executive officers (and their spouse, dependent children and other “PPR”
members) as modified from time to time, except that : a) any so called “gross up” allowance will not exceed the amount provided under the program as of my retirement date and there shall be no carryover from year to year of the “gross
up” allowance, or no year to year carryover of any other “allowance” type benefit which may be implemented during such ten year period; b) such travel must be on the Delta system, and shall not include reciprocal benefits that may be
provided on other airlines (except for certain Delta Connection flights); and c) any bookings for anyone other than my PPR members must occur by February 29, 2008. Provided however, during the six month period following my retirement date, any
taxable flight privileges for which I am eligible shall be limited in value to $15,500. I acknowledge and agree that I may not exchange the Additional Flight Privileges for any other benefit or for a payment in cash or kind. I acknowledge that all
my flight privileges, both the non revenue space available retiree travel privileges and the Additional Flight Privileges granted under this Agreement are subject to Delta’s unilateral right to modify, amend, suspend or terminate any and all
travel privileges at any time (including, but not limited to, changes required by Section 409A of the Internal Revenue Code) as stated in its standard policies applicable to all non revenue travel; but Delta acknowledges that it will not
exercise such rights with respect to me solely as an individual (as opposed, for example, to changes applicable to active executive officers as a group with respect to 

 
the Additional Flight Privileges, or retirees with respect to space available retiree travel privileges) unless it reasonably determines in good faith that I
have materially violated any of my obligations under this Agreement, or any travel policy of Delta, or engaged in personal misconduct of the nature that would reasonably justify suspension or termination of my flight privileges. 
 4. General Waiver and Release. In exchange for the benefits which Delta is providing under this Agreement and the Plan, I hereby agree as follows:

 a. Except for the rights and obligations provided by or arising under the Plan, this Agreement, the Delta Pilots Defined
Contribution Plan (or any other policy, plan or program pertaining to retirees of Delta), the Delta Family-Care Savings Plan, the Delta Air Lines, Inc. 2007 Performance Compensation Plan, or any right I may have to indemnification by Delta, I hereby
release, acquit, withdraw, retract and forever discharge any and all claims, or causes of action which I now have or may have hereafter, directly or indirectly, personally or in a representative capacity, against Delta, including its predecessors
and successors, and its subsidiaries and affiliates and all of each entity’s respective administrators, fiduciaries, parents, subsidiaries, plans, affiliates, officers, directors, shareholders, representatives, agents, employees, and all
persons acting through or in connection with Delta and the Air Lines Pilots Association, (“ALPA”) its officers, agents, employees, counsel and representatives (each a “Released Party”) by reason of any matter,
conduct, claim, event, act, omission, cause or thing whatsoever, from the beginning of time to, and including, the date of execution of this Agreement. This general release includes, but is not limited to, all claims, manner of actions, and causes
of action which arise under the Railway Labor Act, Title VII of the Civil Rights Act of 1964, as amended; The Age Discrimination in Employment Act of 1967, as amended; The Americans with Disabilities Act; The Rehabilitation Act of 1973, as amended;
The Family & Medical Leave Act; The Worker Adjustment and Retraining Notification Act; 42 U.S.C. §§ 1981 through 1988; the Employee Retirement Income Security Act of 1974, as amended, any other federal, state or local statute or
ordinance respecting discriminatory hiring or employment practices or civil rights laws based on protected class status; common law claims of intentional or negligent infliction of emotional distress, defamation, negligent hiring, breach of
contract, breach of the covenant of good faith and fair dealing, promissory estoppel, negligence, or wrongful termination of employment; and all other claims of any type or nature, including any claim in contract or tort, and including any claim for
attorneys’ fees. I agree that the general release also includes, but is not limited to, all claims, manner of actions, and causes of action arising from any allocation of the ALPA Claim or the ALPA Notes (both as defined and described in LOA 7
between ALPA and Delta). I understand and intend that this General Release shall discharge all claims against the Released Parties to the extent permitted by law, but shall not discharge claims arising out of any events which may occur after the
date of execution of this Agreement. 
 b. Except as necessary to enforce the terms of this Agreement, I agree that neither I,
nor anyone acting on my behalf, will sue any Released Party based on any claim released under this Agreement. In the event that I sue, or anyone acting on my behalf sues, any Released Party based on any claim released under this Agreement, I will
hold each Released Party harmless from any claim asserted in such lawsuit and will accept no payment or other benefit as a result of such lawsuit or any settlement thereof. 
 5. No Admissions. This Agreement is not to be construed in any way as an admission by any of the Released Parties that they have violated any
federal, state, or local law, ordinance, regulation, or policy. 
 6. ADEA Waiver. I understand that there may be numerous, valuable
rights under federal and state law, including rights under the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 621, et seq., which I am waiving by executing this Agreement. In connection with this, I hereby certify
that: 
 a. This Agreement and the Plan are written in a manner that is understandable to me; 
 b. I am receiving valuable consideration under this Agreement to which I would not otherwise be entitled; 
 c. I have been advised in writing to consult with an attorney prior to executing this Agreement; 

 d. I understand that this Agreement is a general release of Delta and the other Released
Parties from any past or existing claim or potential claim including any claim or potential claim relating to my employment relationship with Delta, and termination of that relationship; 
 e. I have been given a period of twenty-one (21) days in which to consider whether to sign this Agreement and to consult with an
attorney, accountant, tax advisor, spouse, or any other person. I have either used this full twenty-one (21) day period to consider this Agreement, or have voluntarily chosen to execute this Agreement before the end of that period; 

f. I understand I have seven (7) calendar days after signing this Agreement to revoke this Agreement (the “Revocation
Period”). To revoke this Agreement, I must notify Delta of the intent to revoke through a signed statement delivered to Rob Kight, Delta Air Lines, Inc., ATG Department 948, 1030 Delta Blvd., Atlanta, Georgia 30354-6001, or to
such other person and address as Delta may designate in writing, on or before the last day of the Revocation Period. I acknowledge that this Agreement will not take effect until the day after the Revocation Period has expired, provided that I have
not exercised my revocation right. If I revoke this Agreement, it shall immediately be void and of no further force or effect and I will not receive the Severance Benefits referred to in Section 2 of this Agreement; otherwise, this Agreement
will be fully effective and enforceable as of the day after the Revocation Period. 
 7. Return of Property. I agree that all property
belonging to Delta, including records, files, memoranda, reports, personnel information (including benefit files, training records, customer lists, operating procedure manuals, safety manuals, financial statements, price lists and the like),
relating to the business of Delta, which I have come in contact with in the course of my employment (hereinafter “Delta’s Materials”) shall, as between the parties hereto, remain the sole property of Delta. I hereby
warrant that I have returned all originals and copies of Delta’s Materials to Delta. 
 8. Cooperation. I agree that I shall, to
the extent requested in writing and reasonable under the circumstances, cooperate with and serve in any capacity requested by Delta in any pending or future litigation in which Delta has an interest, and regarding which I, by virtue of my employment
with Delta, have knowledge or information relevant to the litigation. Delta shall reimburse me for reasonable and necessary out-of-pocket expenses that I incur in connection with such cooperation. 
 9. Trade Secrets. I hereby acknowledge that during the term of my employment with Delta, I had access to and acquired knowledge of secret,
confidential and proprietary information regarding, Delta and its business that fits within the definition of “trade secrets” under the law of the State of Georgia, including, without limitation, information regarding Delta’s present
and future operations, its financial operations, marketing plans and strategies, alliance agreements and relationships, its compensation and incentive programs for employees, and the business methods used by Delta and its employees, and other
information which derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and is the subject of
efforts that are reasonable under the circumstances to maintain its secrecy (each, a “Trade Secret”). I hereby agree that, for so long as such information remains a Trade Secret as defined by Georgia law, I will hold in a
fiduciary capacity for the benefit of Delta and shall not directly or indirectly make use of, on my own behalf or on behalf of others, any Trade Secret, or transmit, reveal or disclose any Trade Secret to any person, concern or entity. Nothing in
this Agreement is intended, or shall be construed, to limit the protections of any applicable law protecting trade secrets. 
 10.
Confidential or Proprietary Information. I further agree that I will hold in a fiduciary capacity for the benefit of Delta, and, during the two year period beginning on the date I sign this Agreement (the “Effective
Date”), shall not directly or indirectly use or disclose, any Confidential or Proprietary Information, as defined hereinafter, that I may have acquired (whether or not developed or compiled by me and whether or not I was authorized to
have access to such Confidential or Proprietary Information) during the term of, in the course of, or as a result of my employment by Delta. Subject to the provisions set forth below, the term “Confidential or Proprietary
Information” as used in this Agreement means the following secret, confidential and proprietary information of Delta not otherwise included in the definition of Trade Secret: all marketing, alliance, advertising and sales plans and
strategies; all pricing information; all financial, advertising and product development plans 

 
and strategies; all compensation and incentive programs for employees; all alliance agreements, plans and processes; all plans, strategies, and agreements
related to the sale of assets; all third party provider agreements, relationships, and strategies; all business methods and processes used by Delta and its employees; all personally identifiable information regarding Delta employees, contractors and
applicants; and all lists of actual or potential customers or suppliers maintained by Delta. The term “Confidential and Proprietary Information” does not include information that has become generally available to the public by the act of
one who has the right to disclose such information. Nothing in this Agreement is intended, or shall be construed, to limit the protections of any applicable law protecting confidential or proprietary information. 
 11. Employee Non-Solicitation Agreement. During the one-year period following the Effective Date, I will not directly or indirectly (on my own
behalf or on behalf of any other person, company, partnership, corporation or other entity), employ or solicit for employment any individual who is a management or professional employee of Delta for employment with any entity or person other than
Delta or its subsidiaries or solicit, encourage or induce any such person to terminate their employment with Delta and its subsidiaries. The restrictions set forth in this Section shall be limited to those Company management or professional
employees who: (i) were employed by Delta during my employment in a supervisory or administrative job; and (ii) with whom I had material professional contact during my employment with Delta. 
 12 Non-Competition Agreement. I acknowledge that Delta competes in a worldwide passenger air travel market, and Delta’s business plan is
increasingly international in scope. Such business plan continues to focus on international air travel as a critical component, but will also continue to provide primarily domestic air travel service. I acknowledge that the airlines listed below are
particular competitors to Delta in the domestic or international market, and employment with any of the listed carriers would create more harm to Delta relative to my possible employment or consulting with other air passenger carriers or air cargo
carriers. I agree that the restrictions placed on me under this paragraph will not prevent from earning a livelihood, given the large number of worldwide and domestic air carriers not included in the list below. During the one-year period following
the Effective Date, I will not on my own behalf or on behalf of any person, firm, partnership, association, corporation or business organization, entity or enterprise, provide the same or substantially similar services, as an employee, consultant,
partner, or in any other capacity, to any of the following entities, which I hereby acknowledge are all competitors of Delta: AMR Corporation, American Airlines, Inc., , Continental Airlines, Inc., Southwest Airlines Co., UAL Corporation, United Air
Lines, Inc., US Airways, Inc., Jet Blue Airways, Inc., AirTran Airways, Inc., , Virgin America or Northwest Airlines, Inc. (individually and collectively, the “Competitor”). This restriction shall only apply to the extent
that I may not provide services to the Competitor: (a) while working within a fifty (50) mile radius of the city limits of Atlanta, Georgia; or (b) while working out of or within a fifty mile radius of the corporate headquarters of
the Competitor. Provided further, this paragraph shall not apply to any employment with any Competitor as a line pilot only, and for which I provide no management services. 
 13 Arbitration. I hereby agree that except as expressly set forth below, all disputes and any claims arising out of or under or relating to this
Agreement, including without limitation any dispute or controversy as to the validity, interpretation, construction, application, performance, breach or enforcement of this Agreement or any of its terms, shall be submitted for, and settled by,
mandatory, final and binding arbitration in accordance with the Commercial Arbitration Rules then prevailing of the American Arbitration Association. Unless an alternative locale is otherwise agreed to in writing by the parties to this Agreement,
the arbitration shall be conducted in the City of Wilmington, Delaware. The arbitrator will apply Delaware law to the merits of any dispute or claim, without reference to rules of conflict of law. Any award rendered by the arbitrator shall provide
the full remedies available to the parties under the applicable law and shall be final and binding on each of the parties hereto and their heirs, executors, administrators, successors and assigns and judgment may be entered thereon in any court
having jurisdiction. I hereby consent to the personal jurisdiction of the state and federal courts located in the State of Delaware for any action or proceeding arising from or relating to any arbitration under this Agreement. The prevailing party
in any such arbitration shall be entitled to an award by the arbitrator of all reasonable attorneys’ fees and expenses incurred in connection with the arbitration. However, Delta will pay all fees associated with the American Arbitration
Association and the arbitrator. All parties must initial here for this Section 12 to be effective: 
  

			
	/s/    JCS        	  	Joseph C. Kolshak
	/s/    RLK        	  	Robert Kight, Vice-President, Compensation and Benefits, Delta Air Lines, Inc.

 14. Injunctive Relief in Aid of Arbitration; Forum Selection. I hereby acknowledge and agree that
the provisions contained in Sections, 9, 10, 11, and 12 of this Agreement are reasonably necessary to protect the legitimate business interests of Delta, and that any breach of any of these provisions will result in immediate and irreparable injury
to Delta for which monetary damages will not be an adequate remedy. I further acknowledge that if any such provision is breached or threatened to be breached, Delta will be entitled to seek a temporary restraining order, preliminary injunction or
other equitable relief in aid of arbitration in any court of competent jurisdiction without the necessity of posting a bond, restraining me from continuing to commit any violation of the covenants, and I hereby irrevocably consent to the
jurisdiction of the state and federal courts of the State of Delaware, with venue in Wilmington, which shall have jurisdiction to hear and determine any claim for a temporary restraining order, preliminary injunction or other equitable relief
brought against me by Delta in aid of arbitration. 
 15. Consequences of Breach. Furthermore, I acknowledge that, in partial
consideration for the payments and benefits described in the Plan and this Agreement, Delta is requiring that I agree to and comply with the terms of Sections 9 through 12 and I hereby agree that without limiting any of the foregoing, should I
materially violate any of the terms of Sections 9 through 12 hereof, I: (a) will not be entitled to and shall not receive any further benefits under the Plan and this Agreement; and (b) shall repay to Delta all cash compensation I have
received under this Agreement. 
 16. Tolling. I further agree that in the event the enforceability of any of the restrictions as set
forth in Sections 10, 11, or 12 of this Agreement are challenged and I am not preliminarily or otherwise enjoined from breaching such restriction(s) pending a final determination of the issues, then, if an arbitrator finds that the challenged
restriction(s) is enforceable, the time period set forth in such Section(s) shall be deemed tolled upon the filing of the arbitration or action seeking injunctive or other equitable relief in aid of arbitration, whichever is first in time, until the
dispute is finally resolved and all periods of appeal have expired. 
 17. Governing Law. Unless governed by federal law, this
Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles of conflicts of laws of that State. 
 18. Waiver of Jury Trial. TO THE MAXIMUM EXTENT PERMITTED BY LAW, I HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN CONNECTION WITH
ANY MATTER ARISING OUT OF, UNDER, IN CONNECTION WITH, OR IN ANY WAY RELATED TO THIS AGREEMENT. THIS INCLUDES, WITHOUT LIMITATION, ANY DISPUTE CONCERNING ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN), OR ACTION OF
DELTA OR ME, OR ANY EXERCISE BY DELTA OR ME OF OUR RESPECTIVE RIGHTS UNDER THIS AGREEMENT OR IN ANY WAY RELATING TO THIS AGREEMENT. I FURTHER ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR DELTA TO ISSUE AND ACCEPT THIS AGREEMENT. 

 19. No Statements. I agree that I will not make any oral or written statement to the news media, in any public forum, or to any
business competitive with Delta, concerning any actions or inactions by Delta, or any of its present or former subsidiaries or affiliates or any of its present or former officers, directors or employees, relative to Delta’s compliance with any
state, federal or local law or rule. I further agree that I will not make any oral or written statement or take any other action which disparages or criticizes Delta, or any of its present or former subsidiaries or affiliates or any of its present
or former officers, directors or employees, including, but not limited to any such statement which damages Delta’s good reputation or impairs its normal operations. I further agree that I will not initiate or solicit claims against Delta, or
otherwise directly or indirectly encourage or support any claim that has been or in the future is asserted by a third party against Delta. Delta agrees that it will not make any oral or written statement or take any other action which disparages or
criticizes me, or encourage or authorize any third party to do so. 
 20. Validity; Severability. In the event that one or more of the
provisions contained in this Agreement shall for any reason be held invalid, illegal, or unenforceable in any respect, such holding shall not affect any other 

 
provisions in this Agreement, but this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had never been contained herein.
The invalidity, illegality or unenforceability of any provision or provisions of this Agreement will not affect the validity or enforceability of any other provision of this Agreement, which will remain in full force and effect. 
 21. Entire Agreement. This Agreement sets forth the entire Agreement between me and Delta and supersedes any other written or oral agreement. No
representations, statements, or inducements have been made to me concerning this Agreement other than the representations and statements contained and memorialized in this Agreement. 

 IN WITNESS WHEREOF, Delta has executed this Agreement on the 29th day of November, 2007, and
Joseph C. Kolshak has executed this Agreement on the date indicated below. 
  

			
	 	 	/S/    JOSEPH C. KOLSHAK        

		
	Name:	 	Joseph C. Kolshak
	Date:	 	11-27-2007
		
	 	 	/S/    ROBERT L. KIGHT        

	Robert L. Kight
	Vice President—Compensation and Benefits Delta Air Lines, Inc.

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