Document:

Ex-10.1

 

Exhibit
10.1

LifePoint Hospitals, Inc.

Nonqualified Stock Option Agreement

Grant
Number N <<Option Number>> 

     This Agreement is made and entered into by and between LifePoint Hospitals, Inc. (the
“Corporation”), and <<Participant>> (the “Participant”), in connection with the grant
of an Option under the LifePoint Hospitals, Inc. 1998 Long Term Incentive Plan (the “Plan”) that
was made on March 1, 2007 (the “Date of Grant”).

     The Corporation established the Plan effective November 5, 1998 and amended and restated the
Plan effective June 30, 2005. The Participant is eligible to receive this option, and the
Corporation desires to encourage the Participant to own Common Stock for the purposes stated in
Article 1 of the Plan. The Option evidenced by this Agreement is intended to be a Nonqualified
Option that is subject to the terms of the Plan as amended and restated and the terms and
conditions of this Agreement. The right to exercise this Option is subject to certain performance
conditions described in Paragraph 1(a). The Participant’s rights under the Option are conditioned
on acceptance of the terms contained herein.

     1. Grant of Option. Subject to the terms and conditions set forth herein, the
Corporation has granted to Participant an Option to purchase from the
Corporation <<Shares>>
shares of Common Stock at a price of <<Price>>  per share. This
price is subject to adjustment as provided in Section 3.2 of the Plan. Any unexercised portion of
this Option will expire at the close of business on March 1, 2017 or, if sooner, at the time
described in Paragraph 6. A portion of this Option may also expire sooner due to a forfeiture
described in Paragraph 1(a). Any portion of this Option that expires hereunder is immediately
cancelled and of no further force or effect. Otherwise, this Option will become exercisable as
follows, except as otherwise provided in the Plan or in Paragraph 6:

          (a) The right to exercise this Option will expire with respect to a percentage of the shares
of Common Stock covered by the Option in the event that the Corporation’s earnings per share
(“EPS”) from continuing operations reported for the 2007 fiscal year is less than $2.65 per share
(fully diluted). The forfeiture, if any, will be calculated as a percentage of the shares of Common
Stock covered by this Option in accordance with the following schedule:

	 	 	 	 	 
	2007 EPS	 	Percentage Forfeited
	$2.65 or more per share
	 	 	0	%
	$2.62 to $2.64
	 	 	25	%
	$2.59 to $2.61
	 	 	40	%
	$2.56 to $2.58
	 	 	45	%
	$2.52 to $2.55
	 	 	50	%
	$2.50 to $2.51
	 	 	55	%
	$2.48 to $2.49
	 	 	60	%
	$2.46 to $2.47
	 	 	65	%
	$2.44 to $2.45
	 	 	70	%
	$2.42 to $2.43
	 	 	75	%
	Below $2.42 per share
	 	 	100	%

 

 

The portion of the Option that is not forfeited pursuant to this Paragraph 1(a) is hereinafter
referred to as the “Earned Shares” and shall become exercisable in accordance with the conditions
of Paragraph 1(b).

          (b) This Option will become exercisable with respect to one-third of the Earned Shares, as
determined under Paragraph 1(a), on the first anniversary of the Date of Grant, with respect to
two-thirds of the Earned Shares on the second anniversary of the Date of Grant, and will be fully
exercisable with respect to the Earned Shares on the third anniversary of the Date of Grant.

     2. Method of Exercise. The Participant may exercise this Option in whole or in part,
from time to time, with respect to the number of whole shares of Common Stock that can be purchased
at such time pursuant to Paragraph 1 in accordance with the procedures for exercise that have been
established by the Committee. The exercise of this Option is subject to the Participant’s execution
of a written stockholders agreement that generally applies to some or all of the stockholders of
the Corporation, payment of the exercise price stated in Paragraph 1 in accordance with the terms
of the Plan, and arrangement for any required tax withholdings in a method that is acceptable to
the Corporation or the Committee.

     3. Restriction on Transfer of Option. The Option may not be transferred, pledged,
assigned, hypothecated or otherwise disposed of in any way by the Participant, except by (i) will
or by the laws of descent and distribution or (ii) to a “family member” (as defined below),
provided that such transfer is made for estate planning, tax planning, donative purposes or
pursuant to a domestic relations order, and no consideration (other than nominal consideration) is
received by the Participant. In the event a Participant becomes legally incapacitated, the Option
shall be exercisable by his legal guardian, committee or legal representative. If the Participant
dies, the Option shall thereafter be exercisable by the Participant’s executors or administrators.
The Option shall not be subject to execution, attachment or similar process. Any attempted
assignment, transfer, pledge, hypothecation or other disposition of the Option contrary to the
provisions hereof, and the levy of any execution, attachment or similar process upon the Option,
shall be null and void and without effect.

          (a) For purposes hereof, a “family member” shall mean any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive
relationships, any person sharing the employee’s household (other than a tenant or employee), a
trust in which these persons have more than 50% of the beneficial interest, a foundation in which
these persons (or the employee) control the management of assets, and any other entity in which
these persons (or the employee) own more than 50% of the voting interests.

          (b) No transfer of an Option by the Participant by will or by laws of descent and distribution
shall be effective to bind the Corporation unless the Corporation shall have been furnished with
written notice thereof and an authenticated copy of the will and/or such other evidence as the
Board may deem necessary to establish the validity of the transfer. During the lifetime of a
Participant, except as provided above, the Option shall be exercisable only by the Participant,
except that, in the case of a Participant who is legally incapacitated, the Option shall

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be exercisable by the Participant’s guardian or legal representative. In the event of any
transfer of an Option to a family member in accordance with the provisions of this Paragraph 3,
such family member shall thereafter have all rights that would otherwise be held by such
Participant (or by such Participant’s guardian, legal representative or beneficiary), except as
otherwise provided herein.

     4. Status of Participant.

          (a) The Participant shall not have any privileges of a stockholder of the Corporation with
respect to any Common Stock subject to (but not yet acquired upon valid exercise of) the Option,
nor shall the Corporation have any obligation to issue any dividends or otherwise afford, with
respect to such Common Stock, any rights to which holders of Common Stock are entitled, until the
date of the issuance to the Participant of a stock certificate evidencing such shares.

          (b) Nothing in this Award Agreement or the Option shall confer upon the Participant any right
to continue as an employee of the Corporation or to interfere in any way with the right of the
Corporation to terminate the Participant’s employment at any time.

     5. Adjustments. If at any time while the Option is outstanding, there shall occur any
recapitalization, reclassification, stock dividend, stock split, reverse stock split, or other
distribution with respect to the shares of Common Stock, or other change the Corporation’s capital
or debt structure affecting the Common Stock, including merger, consolidation, conveyance of any or
all assets, dissolution, liquidation, windup or other reorganization, the number and kind of Common
Stock and/or the exercise price of such Option shall be adjusted in accordance with the provisions
of the Plan.

     6. Termination of Service. If Participant’s employment with the Corporation or
Subsidiary is terminated for any reason prior to the occurrence of any otherwise applicable vesting
date provided in Paragraph 1, the Participant shall forfeit his interest in the Option to the
extent that it has not yet become vested and exercisable, but shall have the right to exercise the
vested portion of the Option until the expiration of the Option term or, if sooner, through the
appropriate period specified below:

          (a) If Participant’s employment is terminated for any reason other than Cause (as defined
below), death, Disability (as defined below) or retirement (as defined below), the Participant
shall retain the right to exercise the Option, to the extent exercisable on the date of such
termination, for three months after the effective date of such termination, and thereupon the
Option shall expire.

          (b) If Participant’s employment is terminated due to death or Disability (as defined below),
the Participant shall retain the right to exercise the Option, to the extent exercisable on the
date of such termination, for one year after the effective date of such termination of service, and
thereupon the Option shall expire. For purposes hereof, “Disability” shall mean the inability of
the Participant, after reasonable accommodation, to perform Participant’s required duties for a
period equal to or in excess of the waiting period under the Corporation’s long term disability
insurance policy, as determined in good faith by the Board.

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          (c) In the event the Participant’s employment shall terminate by retirement (i.e., termination
after the Participant has attained age 65, or has attained age 55 with 10 years of service), the
Option may be exercised within 36 months after the Participant’s retirement, to the extent
exercisable on the date of the Participant’s retirement, and thereupon the Option shall expire.

          (d) If Participant’s service as an employee is terminated by the Corporation for Cause (as
defined below), any portion of this Option that is vested as of such termination date shall remain
exercisable for 30 calendar days following such termination. For purposes hereof, “Cause” shall
mean: (i) the conviction of the Participant of a felony under the laws of the United States or any
state thereof, whether or not appeal is taken, as determined by the Board of Directors in good
faith; (ii) the conviction of the Participant for a violation of criminal law involving the
Corporation and its business that materially damages the Corporation as determined by the Board in
good faith; (iii) the willful misconduct of the Participant, or the willful or continued failure by
the Participant (except in the case of a Disability) to substantially perform his duties hereunder,
in either case which has a material adverse effect on the Corporation as determined by the Board in
good faith; (iv) the willful fraud or material dishonesty of the Participant in connection with the
performance of the Participant’s duties to the Corporation and involving the finances of the
Corporation as determined by the Board in good faith; (v) the Participant’s repeated use of alcohol
in a manner which in the opinion of the Board materially impairs the ability of the Participant to
effectively perform the Participant’s duties and obligations owed to the Corporation, or the
illegal use, possession, or sale of, or impaired performance due to the illegal use of, controlled
substances; or (vi) a violation of the Corporation’s policies on sexual or other illegal harassment
of a Corporation employee by the Participant as determined by the Board in good faith;
provided, however, in no event shall the Participant’s employment be considered to
have been terminated for “Cause” unless and until the Participant receives written notice from the
Corporation stating the acts or omissions constituting Cause and the Participant has the
opportunity to cure to the Corporation’s satisfaction any such acts or omissions (in the case of
(iii), (v) or (vi) above) within 30 days of the Participant’s receipt of such notice.

     7. Investment Representation. Upon the exercise of the Option at a time when there is
not in effect a registration statement under the Securities Act of 1933 relating to the Common
Stock, the Participant hereby represents and warrants, and by virtue of such exercise shall be
deemed to represent and warrant, to the Corporation that the Common Stock shall be acquired for
investment and not with a view to the distribution thereof, and not with any present intention of
distributing the same, and the Participant shall provide the Corporation with such further
representations and warranties as the Corporation may require in order to ensure compliance with
applicable federal and state securities, blue sky and other laws. No Common Stock shall be
purchased upon the exercise of the Option unless and until the Corporation and/or the Participant
shall have complied with all applicable federal or state registration, listing and/or qualification
requirements and all other requirements of law or of any regulatory agencies having jurisdiction,
unless the Committee has received evidence satisfactory to it that the Participant may acquire such
shares pursuant to an exemption from registration under the applicable securities laws. Any
determination in this connection by the Committee shall be final, binding, and conclusive. The
Corporation reserves the right to legend any certificate for shares of Common Stock,

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conditioning sales of such shares upon compliance with applicable federal and state securities
laws and regulations.

     8. Change in Control. Upon the occurrence of a Change in Control, as defined in
Section 12.2 of the Plan, the Participant’s rights under this Option shall be limited by the
provisions of this Paragraph 8, notwithstanding any contrary provisions contained in Section 12.1
of the Plan:

          (a) Notwithstanding the provisions of the Plan regarding the acceleration of the right to
exercise this Option upon a Change in Control, a portion of the acceleration of vesting described
in the Plan shall not occur with respect to this Option to the extent such acceleration of vesting
would cause the Participant or holder thereof to realize less income, net of taxes, after deducting
the amount of excise taxes that would be imposed pursuant to section 4999 of the Code, than if
accelerated vesting of that portion of the Option did not occur. This limitation shall not apply to
the extent that the stockholders of the Corporation or the acquirer approve the acceleration of
vesting hereunder in a manner that satisfies section 280G(b)(5)(B) of the Code, or to the extent
that the Participant is a party to an agreement in which the Participant is fully indemnified or
otherwise held harmless for the taxes that result from section 4999 of the Code.

          (b) Except as modified by this Paragraph 8, the provisions of Article 12 of the Plan shall
otherwise apply to this Option upon the occurrence of a Change in Control.

     9. Committee Authority. Any question concerning the interpretation of this Agreement,
any adjustments required to be made under the Plan and any controversy that may arise under the
Plan or this Agreement shall be determined by the Committee in its sole discretion. Such decision
by the Committee shall be final and binding.

     10. Plan Controls. Except as expressly provided herein, the terms of this Agreement
are governed by the terms of the Plan as it exists on the date of this Agreement and as the Plan is
amended from time to time. A copy of the Plan, and any amendments thereto, has been delivered or
made available to the Participant and shall be deemed to be a part of this Agreement as if fully
set forth herein. In the event of any conflict between the provisions of the Agreement and the
provisions of the Plan, the terms of the Plan shall control, except as expressly stated otherwise.
For purposes of this Agreement, the defined terms in the Plan shall have the same meaning in this
Agreement, except where the context otherwise requires. The terms “Article” or “Section” generally
refer to provisions within the Plan. The term “Paragraph” generally refers to a provision of this
Agreement.

     11. Notices. Any notice hereunder by the Participant shall be given to the Corporation
in writing and such notice shall be deemed duly given only upon receipt thereof at the
Corporation’s office at 103 Powell Court, Suite 200, Brentwood, Tennessee 37027, or at such other
address as the Corporation may designate by notice to the Participant. Any notice hereunder by the
Corporation shall be given to the Participant in writing and such notice shall be deemed duly given
only upon receipt thereof at such address as the Participant may have on file with the Corporation.

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     12. Information Confidential. As partial consideration for granting of this Option,
the Participant agrees that he or she will keep confidential all information and knowledge that the
Participant has relating to the manner and amount of his or her participation in the Plan;
provided, however, that such information may be disclosed as required by law and may be given in
confidence to the Participant’s spouse, tax and financial advisors, or to a financial institution
to the extent that such information is necessary to secure a loan.

     13. Governing Law. This Award Agreement shall be construed and enforced in accordance
with the laws of the State of Delaware, without giving effect to the choice of law principles
thereof.

     In Witness Whereof, the Corporation has adopted this instrument as the Agreement to
govern the terms of the Option described herein. The Participant acknowledges and consents to the
terms of this Agreement by accepting the grant of this Option.

	 	 	 
	 

	 	LifePoint Hospitals, Inc.
	 
	 	 
	 

	 	 
	 

	 	William F. Carpenter III
	 

	 	President and Chief Executive Officer

6EX-10.10 EMPLOYMENT AGREEMENT WITH NOLAN GARDNER

 

Exhibit 10.10

EMPLOYMENT AGREEMENT

          THIS EMPLOYMENT AGREEMENT is entered into as of January 1, 2006 between Ablest Inc., a
Delaware corporation (the “Company”), and Nolan B. Gardner (“Executive”).

WITNESSETH :

          WHEREAS, the Company and Executive desire to enter into this Agreement to insure the Company
of the services of Executive, to provide for compensation and other benefits to be paid and
provided by the Company to Executive in connection therewith, and to set forth the rights and
duties of the parties in connection therewith;

          NOW, THEREFORE, in consideration of the mutual promises herein contained, the parties hereby
agree as follows:

     1. Employment.

          (a) Title. The Company hereby employs Executive as Vice President of Human Resources,
and Executive hereby accepts such employment, on the terms and conditions set forth herein.

          (b) Duties. During the term of this Agreement, Executive shall be and have the title,
duties and authority of Vice President of Human Resources of the Company and shall devote his
entire business time and all reasonable efforts to his employment and shall perform diligently such
duties as are customarily performed by the Vice President of Human Resources of companies the size
and structure of the Company, together with such other duties as may be reasonably required from
time to time by the Board of Directors of the Company.

          (c) Outside Interests. Executive shall not, without the prior written consent of the
Company, directly or indirectly, during the term of this Agreement, other than in the performance
of duties naturally inherent to the business of the Company and in furtherance thereof, render
services of a business, professional or commercial nature to any other person or firm, whether for
compensation or otherwise; provided, however, that Executive may attend to outside investments, and
serve as a director, trustee or officer of, or otherwise participate in, educational, welfare,
social, religious and civic

 

 

organizations so long as such activities do not materially interfere with his full-time
employment hereunder.

     2. Term. Subject to the provisions for termination hereinafter provided, the term of
this Agreement shall begin on the date hereof and shall end at 11:59 p.m., local time, on the
second anniversary of the date hereof (the “Term”). In the event of a Change in Control, the Term
shall end as of the second anniversary of the date of the Change in Control.

     3. Compensation.

          (a) Salary. For all services he may render to the Company during the term of this
Agreement, the Company shall pay to Executive the following salary in those installments
customarily used in payment of salaries to the Company’s senior executives (but in no event less
frequently than monthly):

               (i) for calendar year 2006, an annual salary of one hundred five thousand Dollars ($105,000);

               (ii) for the calendar year beginning on January 1, 2006, and for each calendar year thereafter
during the Term of this Agreement, a salary determined by the Compensation Committee, which in no
event shall be less than the annual salary that was payable by the Company to Executive under this
Paragraph 3(a) for the immediately preceding calendar year.

          (b) Bonus. Executive shall be entitled to participate in any bonus program
implemented by the Compensation Committee of the Board of Directors for the Company’s senior
executives generally, with pertinent terms and goals to be established annually or otherwise by the
Compensation Committee in its sole discretion.

          (c) Benefits. Executive shall be entitled, subject to the terms and conditions of the
appropriate plans, to benefits provided by the Company to senior executives generally from time to
time during the term of this Agreement.

Page 2

 

 

          (d) Business Expenses. Upon delivery of proper documentation therefore Executive
shall be reimbursed for all travel, hotel and business expenses when incurred on Company business
during the term of the Agreement.

          (e) Perquisites. Executive shall be entitled to such perquisites, including use of an
automobile, as are provided by the Company to senior executives generally from time to time during
the term hereof.

     4. Payment in the Event of Death or Disability.

          (a) In the event of Executive’s death or Disability during the term of this Agreement, for a
period equal to the lesser of (i) twelve (12) months following the date of such death or Disability
or (ii) the balance of the term remaining hereunder at such date (but in no event less than six (6)
months), the Company shall continue to pay to Executive (or his estate) Executive’s then effective
per annum rate of salary, as determined under Paragraph 3(a), and provide to Executive (or to his
family members covered under his family medical coverage) the same family medical coverage as
provided to Executive on the date of such death or Disability.

          (b) Except as otherwise provided in Paragraph 4(a), in the event of Executive’s death or
Disability Executive’s employment hereunder shall terminate and Executive shall be entitled to no
further compensation or other payments or benefits under this Agreement, except as to any unpaid
salary, bonus, or benefits accrued and earned by him up to and including the date of such death or
Disability.

          (c) For purposes of this Agreement, Executive’s Disability shall be deemed to have occurred
after one hundred eighty (180) consecutive days during which Executive, by reason of his physical
or mental disability or illness, shall have been unable to discharge his duties hereunder. The
date of Disability shall be such one hundred eightieth (180th) day. If the Company or
Executive, after receipt of notice of Executive’s Disability from the other, dispute that
Executive’s Disability shall have

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occurred, Executive shall promptly submit to a physical examination by a qualified physician
in the Tampa or Clearwater, Florida, metropolitan area selected by the Company and, unless such
physician shall issue his written statement to the effect that in his or her opinion, based on his
or her diagnosis, Executive is capable of resuming his employment and devoting his full time and
energy to discharging his duties within thirty (30) days after the date of such statement, such
Disability shall be deemed to have occurred.

          (d) The payments to be made by the Company to Executive hereunder shall be offset and reduced
by the amount of any insurance proceeds (on a tax-effected basis) paid to Executive (or his estate)
from insurance policies obtained by the Company other than insurance policies provided under
Company-wide employee benefit and welfare plans.

     5. Termination

          (a) The employment of Executive under this Agreement:

               (i) shall be terminated automatically upon the death or Disability of Executive;

               (ii) may be terminated for Cause at any time by the Company, with any such termination not
being in limitation of any other right or remedy the Company may have under this Agreement or
otherwise;

               (iii) may be terminated at any time by the Company without Cause with 30 days’ advance notice
to Executive;

               (iv) may be terminated at any time by Executive with thirty (30) days’ advance notice to the
Company;

               (v) may be terminated at any time by Executive if the Company materially breaches this
Agreement and fails to cure such breach within thirty (30) days of written notice of such breach
from Executive, provided that Executive has given notice of such breach within ninety (90) days

Page 4

 

 

after he has knowledge thereof and the Company did not have Cause to terminate Executive at
the time such breach occurred; or

               (vi) shall be terminated automatically at 11:59 p.m., local time, on the second anniversary of
the date hereof, or in the event of a Change in Control prior to such date, at 11:59 p.m. local
time on the second anniversary of the date of the Change in Control, if later.

          (b) Upon any termination hereunder, Executive shall be deemed automatically to have resigned
from all offices and any directorship held by him in the Company, unless the Company informs
Executive otherwise.

          (c) Executive’s employment with the Company for all purposes shall be deemed to have
terminated as of the effective date of such termination hereunder (the “Date of Termination”),
irrespective of whether the Company has a continuing obligation under this Agreement to make
payments or provide benefits to Executive after such date. In addition, the Executive’s
termination of employment must meet the requirements for a “separation from service” within the
meaning of Code Section 409A in order for the termination payments described in Section 6 and
Section 7 to be paid.

     6. Certain Termination Payments.

               (a) If Executive’s employment with the Company is terminated by the Company without Cause
other than within two years following a Change in Control, or is terminated by Executive pursuant
to Paragraph 5(a)(v), the Company shall (i) continue to pay to Executive the per annum rate of
salary under Paragraph 3(a) and provide him and his family with the benefits described in Paragraph
3(c) then in effect (unless the terms of the applicable plans expressly prohibit the continuation
of such benefits after such termination and cannot be amended, with applicability of such amendment
limited to Executive, to provide for such continuation, in which case the Company shall procure and
pay for substantially similar substitute benefits except for any pension or 401(k) Plan benefit, or
unless continued coverage would cause an excise tax to be due under Code Section 409A, in which
event the period of continued coverage shall be reduced to such period as would not result in an
excise tax) for a

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period equal to the lesser of (A) twelve (12) months and (B) the remainder of the term of this
Agreement, and (ii) pay Executive on or before the thirtieth day after the Date of Termination an
amount equal to the target bonus opportunity for the year in which such termination occurs.
Notwithstanding the foregoing, if Executive is a specified employee within the meaning of Code
Section 409A, the continuing salary payments described in clause (i) and the bonus payment
described in clause (ii) shall not be paid until the first day of the seventh month following the
month in which the Executive’s termination from employment occurs. In such event, the salary
payments that would have been made but for the delay shall be accumulated and paid in a lump sum on
the first date that payment may be made.

          (b) If Executive’s employment is terminated by the Company with Cause or by Executive pursuant
to Paragraph 5(a)(iv), Executive shall be entitled to no further compensation or other payments or
benefits under this Agreement, except as to that portion of any unpaid salary and benefits accrued
and earned by him under Paragraphs 3(a) and 3(c) hereof up to and including the Date of
Termination.

     7. Change in Control Termination Payments.

          (a) Executive will be entitled to the compensation set forth in Paragraph 7(b) hereof (the
“CIC Compensation”) if his employment is terminated within two years after a Change in Control by
the Company without Cause (the “CIC Trigger”). Notwithstanding the foregoing, Executive will not
be entitled to CIC Compensation in the event of a termination of his employment following a Change
in Control on account of his Death, Disability, or termination by him pursuant to Paragraph
5(a)(iv).

          (b) In the event of a CIC Trigger, Executive shall be entitled to the CIC Compensation
provided below:

               (i) In lieu of any further salary, bonus or other payments to Executive for periods subsequent
to the Date of Termination, the Company shall pay to Executive not later than the tenth day
following the Date of Termination a cash amount equal to two times Executive’s annual base

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salary in effect on the Date of Termination. Notwithstanding the foregoing, if Executive is a
specified employee within the meaning of Code Section 409A, the payment described herein shall not
be paid until the first day of the seventh month following the month in which the Executive’s
termination from employment occurs.

               (ii) Until the earlier of Executive’s death or the end of the twelve (12) month period
following the Date of Termination, the Company shall arrange to provide Executive life, health,
disability and accident insurance benefits and the package of “Executive benefits” substantially
similar to those which Executive was receiving immediately prior to the Date of Termination, or
immediately prior to a Change in Control, if greater, provided that Executive shall be obliged to
continue to pay that proportion of premiums paid by him immediately prior to the Change in Control.

               (iii) The Company shall vest and accelerate the exercise date of all stock options, if any,
granted to Executive (the “Options”) that are unvested or not exercisable on the Date of
Termination, to the end that the Options shall be immediately exercisable for the duration of their
respective original terms.

          (c) If the CIC Compensation hereunder, either alone or together with other payments to
Executive from the Company, would constitute an “excess parachute payment” (as defined in Section
280G of the Internal Revenue Code of 1986, as amended from time to time (the “Code”)), such CIC
Compensation shall be reduced to the largest amount that will result in no portion of the payments
hereunder being subject to the excise tax imposed by Section 4999 of the Code or being disallowed
as deductions to the Company under Section 280G of the Code.

     8. Definitions.

          (a) “Beneficial Owner” shall have the meaning provided in Rule 13d-3 promulgated under the
Exchange Act.

          (b) “Cause” means:

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               (i) Executive’s conviction of, plea of “no contest” to, or entry into a pretrial intervention
program associated with, a felony or a first degree misdemeanor;

               (ii) Executive’s engaging in an act or series of acts of misconduct or negligent behavior that
result in demonstrable injury to the Company, including without limitation, injury to the Company’s
business, financial condition or reputation. or

               (iii) Executive’s material breach of any provision of this Agreement, which breach has not
been cured in all material respects within twenty (20) days after the Company gives notice thereof
to Executive; provided, however, that the cure provision of this clause (iii) shall
not apply if Executive has previously been provided with notice of a material breach pursuant to
this provision and cured such breach, and thereafter is committing another material breach of any
provision of this Agreement.

          (c) “Change in Control” occurs when:

               (i) any “Person”, other than the C. H. Heist Intervivos Trust, the lineal descendants of
Charles H. and Clydis D. Heist, and any trusts for the benefit of their lineal descendants
(collectively, the “Heist Family”), and other than any trustee or fiduciary on behalf of any
Company benefit plan, becomes the “Beneficial Owner” of securities of the Company having at least
30% of the voting power of the Company’s then outstanding securities (unless the event causing the
30% threshold to be crossed is an acquisition of securities directly from the Company) but only if
at the time of such person’s becoming the beneficial owner of the requisite voting power, the Heist
Family (or any trust or Person included therein) no longer holds a majority of the outstanding
shares; or

               (ii) the stockholders of the Company approve any merger or other business combination of the
Company, or any going private transaction subject to Rule 13e-3 of the rules and regulations
promulgated under the Securities Exchange Act of 1934, or any sale of all or substantially all of
the Company’s assets in one or a series of related transactions, or any combination of the
foregoing transactions (the “Transactions”), other than a Transaction in which the Heist
Family or any trust or

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Person included within the Heist Family is the Beneficial Owner of 40% or more of the voting
securities of the surviving company (or its parent) (and, in a sale of assets, of the purchaser of
the assets) immediately following the Transaction;; or

               (iii) within any 24 month period, the persons who were directors immediately before the
beginning of such period (the “Disinterested Directors”) cease (for any reason other than
death) to constitute at least a majority of the Board or the board of directors of a successor to
the Company, with, for this purpose, any director who was not a director at the beginning of such
period being deemed to be a Disinterested Director if such director was elected to the Board by, or
on the recommendation of or with the approval of, at least two-thirds of the directors who then
qualified as Disinterested Directors, so long as such director was not nominated by a person who
has entered into an agreement to effect, or threatened to effect, a Change of Control.

          (d) “Person” shall have the meaning provided in Section 3(a)(9) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”) and as used in Sections 13(d) and 14(d) thereof, and shall
include a “group” (as defined in Section 13(d) of the Exchange Act).

     9. Certain Covenants 

          (a) Noncompete and Nonsolicitation. Executive acknowledges the Company’s reliance on
and expectation of Executive’s continued commitment to performance of his duties and
responsibilities during the term of this Agreement. In light of such reliance and expectation,
during the term hereof and for two years after termination of Executive’s employment and this
Agreement under Paragraph 5 hereof, other than termination by the Company without Cause or
termination by Executive pursuant to Paragraph 5(a)(v), Executive shall not, directly or
indirectly, do or suffer any of the following:

               (i) Own, manage, control or participate in the ownership, management, or control of, or be
employed or engaged by or otherwise affiliated or associated as a consultant, independent
contractor or otherwise with, any corporation, partnership, proprietorship, firm, association

Page 9

 

 

or other business entity, or otherwise engage in any business, which is in competition with
the business of the Company as and where conducted by it at the time of such termination; provided,
however, that the ownership of not more than five percent (5%) of any class of publicly traded
securities of any entity shall not be deemed a violation of this covenant;

               (ii) Solicit the employment of, assist in the soliciting the employment of, or otherwise
solicit the association in business with any person or entity of, any employee, consultant or agent
of the Company; or

               (iii) Induce any person who is a customer of the Company to terminate said relationship.

          (b) Nondisclosure; Return of Materials. During the term of his employment by the
Company and following termination of such employment, Executive will not disclose (except as
required by his duties to the Company), any concept, design, process, technology, trade secret,
customer list, plan, embodiment or invention, any other intellectual property (“Intellectual
Property”) or any other confidential information, whether patentable or not, of Company of
which Executive becomes informed or aware during his employment, whether or not developed by
Executive. In the event of the termination of his employment with the Company or the expiration of
this Agreement, Executive will return to the Company all documents, data and other materials of
whatever nature, including, without limitation, drawings, specifications, research, reports,
embodiments, software and manuals that pertain to his employment with the Company or to any
Intellectual Property and shall not retain or cause or allow any third party to retain photocopies
or other reproductions of the foregoing.

          (c) Executive expressly agrees and understands that the remedy at law for any breach by him of
this Paragraph 9 may be inadequate and that the damages flowing from such breach are not easily
measured in monetary terms. Accordingly, it is acknowledged that, upon adequate proof of
Executive’s violation of any provision of this Paragraph 9, the Company shall be entitled to
immediate injunctive relief and may obtain a temporary order restraining any threatened or further
breach and may

Page 10

 

 

withhold any amounts owed to Executive pursuant to this Agreement. Nothing in this Paragraph
9 shall be deemed to limit the Company’s remedies at law or in equity for any breach by Executive
of any of the provisions of this Paragraph 9 that may be pursued by the Company.

          (d) If Executive shall violate any legally enforceable provision of this Paragraph 9 as to
which there is a specific time period during which he is prohibited from taking certain actions or
from engaging in certain activities, as set forth in such provision, then, in such event, such
violation shall toll the running of such time period from the date of such violation until such
violation shall cease.

          (e) Executive has carefully considered the nature and extent of the restrictions upon him and
the rights and remedies conferred upon the Company under this Paragraph 9, and hereby acknowledges
and agrees that the same are reasonable in time and territory, are designed to eliminate
competition that otherwise would be unfair to the Company, do not stifle the inherent skill and
experience of Executive, would not operate as a bar to Executive’s sole means of support, are fully
required to protect the legitimate interests of the Company and do not confer a benefit upon the
Company disproportionate to the detriment to Executive.

	 	10.	 	Withholding Taxes. All payments to Executive hereunder shall be
subject to withholding on account of federal, state and local taxes as required by
law.
	 
	 	11.	 	No Conflicting Agreements. Executive represents and warrants that he
is not a party to any agreement, contract or understanding, whether an employment
contract or otherwise, that would restrict or prohibit him from undertaking or
performing employment in accordance with the terms and conditions of this Agreement.
	 
	 	12.	 	Severable Provisions. The provisions of this Agreement are severable
and if any one or more of its provisions is determined to be illegal or otherwise
unenforceable, in whole or in part, the remaining provisions and any partially
unenforceable provision to the extent enforceable in any jurisdiction nevertheless
shall be binding and enforceable.

Page 11

 

 

	 	13.	 	Binding Agreement. The rights and obligations of the Company under
this Agreement shall inure to the benefit of, and shall be binding on, the Company and
its successors and assigns, and the rights and obligations (other than obligations to
perform services) of Executive under this Agreement shall inure to the benefit of, and
shall be binding upon, Executive and his heirs, personal and legal representatives,
executors, successors and administrators. The Company may assign this Agreement to a
purchaser (or an affiliate of a purchaser) of all or substantially all of the assets
of the Company; provided, however, that this provision shall not have
any effect for purposes of determining whether a Change of Control has occurred
hereunder. As used in this Agreement, the “Company” shall mean the Company as
hereinbefore defined and any successor or assign to its assets as aforesaid that
becomes bound by all the terms and provisions of this Agreement. If the Executive
should die while any amounts are still payable to him, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the Executive’s devisee, legatee, or other designee of, if there be no
such designee, to the Executive’s estate.
	 
	 	14.	 	Notices. Notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given when sent by certified mail,
postage prepaid, addressed to the intended recipient at the address set forth at the
end of this Agreement, or at such other address as such intended recipient hereafter
may have designated most recently to the other party hereto with specific reference to
this Paragraph 14.
	 
	 	15.	 	Consent to Jurisdiction. Executive and the Company each irrevocably:
(i) submits to the exclusive jurisdiction of the Florida courts and the United States
district court(s) in Florida for the purpose of any proceedings arising out of this
Agreement or any transaction contemplated by this Agreement; (ii) agrees not to
commence such proceeding except in these courts; (iii) agrees that service of any
process, summons, notice or document by U.S.

Page 12

 

 

	 	 	 	registered mail to a party’s address as provided herein shall be effective service of
process for any such proceeding; and (iv) waives any objection to the laying of venue
of any such proceeding in these courts.
	 
	 	16.	 	Waiver of Jury Trial. Each party waives, to the fullest extent
permitted by law, any right he or it may have to a trial by jury in respect of any
suit, action or proceeding arising out of this Agreement or any transaction
contemplated by this Agreement. Each party certifies that no representative, agent or
attorney of any other party has represented, expressly or otherwise, that such other
party would not, in the event of litigation, seek to enforce this waiver; and
acknowledges that he or it and the other party have been induced to enter into this
Agreement by, among other things, the mutual waivers and certifications in this
Paragraph 16.
	 
	 	17.	 	Waiver. The failure of either party to enforce any provision of this
Agreement shall not in any way be construed as a waiver of any such provision as to
any future violation thereof, or prevent that party thereafter from enforcing each and
every other provision of this Agreement. The rights granted the parties herein are
cumulative and the waiver of any single remedy shall not constitute a waiver of such
party’s right to assert all other legal remedies available to it under the
circumstances.
	 
	 	18.	 	Governing Law. This Agreement shall be governed by and construed
according to the internal laws of the State of Florida, excluding any choice of law
rules that may direct the application of the laws of another jurisdiction.
	 
	 	19.	 	Captions and Paragraph Headings. Captions and paragraph headings
used herein are for convenience and are not a part of this Agreement and shall not be
used in construing it.
	 
	 	20.	 	Legal Fees. If any legal action is required to enforce Executive’s
rights under this Agreement, Executive shall be entitled to recover from the Company
any expenses for

Page 13

 

 

	 	 	 	attorneys’ fees and disbursements reasonably incurred by him if he is the prevailing
party.
	 
	 	21.	 	No Obligation To Mitigate. Executive shall not be required to
mitigate the amount of any payment provided for under this Agreement upon termination
of his employment by the Company without Cause by seeking other employment or
otherwise after such termination, nor shall the amount of any such payment provided
for under this Agreement be reduced by any compensation earned by Executive after
such termination as the result of his employment by another employer.
	 
	 	22.	 	Sale of Assets. For the avoidance of doubt, if the Company sells
all or substantially all of its assets and the purchaser or an affiliate of the
purchaser assumes this Agreement or offers Executive employment on substantially the
same terms as contained herein, Executive’s not accepting such offer shall constitute
termination of employment hereunder by Executive pursuant to Section 5(a)(iv) and
shall not entitle him to any payments under Paragraphs 6(a) or 7; provided,
however, that this provision shall not have any effect for purposes of
determining whether a Change of Control has occurred hereunder.
	 
	 	23.	 	Time For Bringing an Action. Any legal action or proceeding with
respect to this Agreement must be brought within one year (365 days) after the day the
complaining party first knew or should have known, with the exercise of reasonable
diligence, of the events giving rise to the complaint.

Page 14

 

 

     IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first set
forth above.

	 	 	 	 	 	 	 
	 	 	EXECUTIVE:	 	 
	 
	 	/s/ Nolan B. Gardner			 	 
	 	 	 	 	 
	 	 	Name: Nolan B. Gardner	 	 
	 	 	Address:	 	 
	 
	 	 	 	 	 	 
	 	 	ABLEST INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt R. Moore	 	 
	 

	 	Name:
	 	 

Kurt R. Moore, President & CEO
	 	 

Page 15

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