Document:

exv10w4

Exhibit 10.4

FIRST AMENDMENT TO SENIOR MANAGEMENT AGREEMENT

     THIS AMENDMENT (the “Amendment”) to Senior Management Agreement is made and entered
into as of April    , 2010, by and between Aurora Diagnostics Holdings, LLC, a Delaware limited
liability company (the “Company”), Aurora Diagnostics, LLC, a Delaware limited liability
company (“Employer”), and Martin J. Stefanelli (the “Executive”).

     WHEREAS, on October 2, 2006, the Company, Employer and the Executive entered into a Senior
Management Agreement (the “Agreement”);

     WHEREAS, the Company, Employer and the Executive desire to amend the Agreement as provided
herein; and

     WHEREAS, the terms of this Amendment have been approved by the Majority Summit Investors (as
defined in the Company’s Amended and Restated Operating Agreement) as required by Section 11(k) of
the Agreement, as evidenced by their signature hereon;

     NOW, THEREFORE, in exchange for the continued employment of Executive, the mutual covenants
and agreements provided herein and in the Agreement, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be
legally bound, hereby agree as follows:

	 	1.	 	The Agreement is hereby amended as follows: in the second sentence of Section 6(b) of
the Agreement, “$175,000” shall be deleted and replaced with “75% of the Annual Base
Salary”.
	 
	 	2.	 	All compensation paid to Executive prior to the date hereof in accordance with the
terms of the Agreement, as amended by this Amendment, is hereby confirmed, ratified and
approved.
	 
	 	3.	 	Except as amended hereby, the terms and conditions of the Agreement shall remain in
full force and effect.
	 
	 	4.	 	This Amendment shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and assigns.
	 
	 	5.	 	This Amendment shall be governed by and construed and enforced in accordance with the
laws of the State of Delaware.

[Signatures on the Following Page]

 

 

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

	 	 	 	 	 
	 	AURORA DIAGNOSTICS HOLDINGS, LLC

 	 
	 	By:  	/s/ James C. New
 	 
	 	 	James C. New 	 
	 	 	Chief Executive Officer and President 	 
	 
	 	AURORA DIAGNOSTICS, LLC

 	 
	 	By:  	/s/ James C. New
 	 
	 	 	James C. New 	 
	 	 	Chief Executive Officer and President 	 
	 	 	 
	 	      /s/ Martin J. Stefanelli
 	 
	 	Martin J. Stefanelli 	 
	 	 	 	 

Consented to by the below Majority Summit Investors
as of the date first above written:

	 	 	 	 	 
	 	SUMMIT VENTURES VI-A, L.P.

 	 
	 	By:  	Summit Partners VI (GP), L.P.
 	 
	 	 	Its.        General Partner 	 
	 	 	 
	 	By:  	                Summit Partners VI (GP), LLC
 	 
	 	 	Its:        General Partner 	 
	 	 	 
	 	By:  	                /s/ Thomas S. Roberts
 	 
	 	 	Name:  	Thomas S. Roberts 	 
	 	 	Title:  	Member 	 

[Signature Page to First Amendment to Senior Management Agreement]

 

 

	 	 	 	 	 
	 	SUMMIT PARTNERS PRIVATE EQUITY

FUND VII-A, L.P.

 	 
	 	By:  	Summit Partners PE VII, L.P.
 	 
	 	 	Its.        General Partner 	 
	 	 	 
	 	By:  	                   Summit Partners PE VII, LLC
 	 
	 	 	Its:        General Partner 	 
	 	 	 
	 	By:  	                   /s/ Thomas S. Roberts
 	 
	 	 	Name:  	Thomas S. Roberts 	 
	 	 	Title:  	Member 	 
	 

[Signature Page to First Amendment to Senior Management Agreement]exv10w5

Exhibit 10.5

[Execution Copy]

					
	 
	 	SENIOR MANAGEMENT AGREEMENT
	 	

          THIS SENIOR MANAGEMENT AGREEMENT (this “Agreement”) is made as of November 5, 2007, by
and among Aurora Diagnostics Holdings, LLC, a Delaware limited liability company (the
“Company”), Aurora Diagnostics, LLC, a Delaware limited liability company
(“Employer”), and Greg Marsh (“Executive”). Certain definitions are set forth in
Section 4 of this Agreement.

          WHEREAS, the Company, Employer and Executive mutually desire to enter into an agreement
pursuant to which Employer will employ Executive.

          NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
to this Agreement hereby agree as follows:

          1. Employment. Employer agrees to employ Executive and Executive accepts such
employment for the period beginning as of the date hereof and ending upon his separation pursuant
to Section 1(c) hereof (the “Employment Period”).

          (a) Position and Duties. During the Employment Period, Executive shall serve as the
Chief Financial Officer of the Company and Employer and shall have the normal duties,
responsibilities and authority implied by such position and that which an officer of a Delaware
corporation with such titles would have, subject to the power of the Board to expand or limit such
duties, responsibilities and authority and to override actions of the Chief Financial Officer.
Executive shall report to the President and Chief Executive Officer, and, except during permitted
vacation time, any periods of illness and authorized leaves of absence, Executive shall devote his
full business time and attention to the business and affairs of the Company, Employer and their
respective Subsidiaries. The foregoing shall not, however, preclude Executive from engaging in
appropriate civic, charitable or religious activities so long as such activities do not conflict
with or interfere in any material respect with Executive’s duties or responsibilities to the
Company, Employer and their respective Subsidiaries. Executive shall perform his duties,
responsibilities and functions to the Company and its Subsidiaries hereunder in a faithful and
diligent manner and shall comply with the Company’s and its Subsidiaries’ policies and procedures
in all material respects. In performing his duties and exercising his authority under this
Agreement, Executive shall support and implement the business and strategic plans approved from
time to time by the Board and shall support and cooperate with the Company’s efforts to expand its
business and operate profitably and in conformity with the business and strategic plans approved by
the Board.

          (b) Salary, Bonus and Benefits. During the Employment Period, Employer will pay
Executive a base salary of $280,000 per annum, which amount shall be reviewed at least annually by
the Board but any increase shall be at the sole discretion of the Board (as adjusted, the
“Annual Base Salary”). During the Employment Period, beginning with calendar year 2008,
Executive shall be eligible for an annual bonus (“Annual Bonus”) in an amount up to 50% of
the Executive’s Annual Salary or $140,000 for 2008 (but in no event less than $50,000) based upon
the achievement by the Company, Employer and their respective Subsidiaries of financial and other
objectives set by the Board in consultation with the President and Chief Executive Officer in
conjunction with the annual budgetary process contemplated by Section 3A(e) of the Purchase
Agreement. For the 2008 calendar year the Executive will receive a minimum guaranteed bonus of
$50,000. The Annual Bonus will be paid to Executive by Employer on/or before April 30th
of the fiscal year following the fiscal year to which such Annual Bonus relates. Executive must be
employed by the Company or Employer as of the bonus payment date in any given calendar year in
order to be eligible to earn an Annual Bonus with respect to such calendar year. Employer shall pay
Executive a “starting bonus” in an amount equal to $10,000 (less

 

 

any applicable taxes) on or prior
to the date Employer pays Executive his first installment of the Annual Base Salary.

          Beginning on the first day of the first full month following Executive’s completion of thirty
(30) days of full-time continuous employment with Employer, Executive shall be entitled to
participate in all medical, dental, hospitalization, accidental death, disability, life insurance
plans and any other plan offered by the Company or the Employer to its executive-level personnel.
Executive shall be entitled to four (4) weeks of paid vacation during each calendar year. Any
unused vacation may be carried over to subsequent years; provided, however,
Executive shall not be entitled to accrue more than four (4) weeks of vacation at any given time.
Any vacation must be taken at a time mutually convenient to the Company, Employer and Executive.
During the Employment Period, Employer shall reimburse Executive for all expenses incurred in
furtherance of the Company’s and Employer’s business, which expenses are consistent with Employer’s
policies in effect from time to time with respect to travel,
entertainment and other business expenses, subject to Employer’s requirements with respect to
reporting and documentation of such expenses.

          (c) Separation. The Employment Period will continue until (i) Executive’s resignation,
Disability or death or (ii) the Board decides to terminate Executive’s employment with or without
Cause. If Executive’s employment is terminated by Employer without Cause or by Executive with Good
Reason, then (i) during the one-year period commencing on the date of termination (the
“Severance Period”), Employer shall continue to pay to Executive his then applicable Annual
Base Salary in equal installments on the Employer’s regular salary payment dates for such period
(the “Severance Payments”), (ii) Employer shall pay to Executive the amount of any Annual
Bonus earned with respect to the calendar year prior to the year of Separation when due and,
subject to Section 1(b), a pro-rated Annual Bonus for the year of Separation, (iii)
Employer shall reimburse Executive for any expenses incurred in furtherance of the Company’s
business prior to Separation, which expenses are consistent with Employer’s policies in effect from
time to time with respect to travel, entertainment and other business expenses, subject to
Employer’s requirements with respect to reporting and documentation of such expenses and (iv)
Employer shall pay Executive for all accrued but unused vacation. Notwithstanding the foregoing,
(A) Executive shall not be entitled to receive any Severance Payments unless Executive has executed
and delivered to Employer a general release in the form attached hereto as Exhibit A and
(B) Executive shall be entitled to receive such payments only so long as Executive has not breached
the provisions of Sections 2 or 3 hereof and does not apply for unemployment compensation
chargeable to the Company during the Severance Period unless Company fails to make the Severance
Payments when due. If the Employment Period is terminated by Employer with Cause, as a result of
death or Disability or by Executive for resignation without Good Reason, (i) Executive shall only
be entitled to receive his Annual Base Salary through the date of termination and shall not be
entitled to any other salary, compensation or employee or other benefits from the Company or its
Subsidiaries thereafter, except as otherwise expressly required by applicable law (such as COBRA),
(ii) Employer shall pay to Executive the amount of any Annual Bonus earned with respect to the
calendar year prior to the year of Separation when due, (iii) Employer shall reimburse Executive
for any expenses incurred in furtherance of the Company’s business prior to Separation, which
expenses are consistent with Employer’s policies in effect from time to time with respect to
travel, entertainment and other business expenses, subject to Employer’s requirements with respect
to reporting and documentation of such expenses, (iv) Employer shall pay Executive for all accrued
but unused vacation and (v) Executive shall be entitled to all accrued benefits under any employee
benefit programs. In the event Executive is entitled to a pro-rated bonus, the pro-ration shall be
based on the achievement of the pre-approved objectives based upon Executive’s and the Company’s
performance relative to the previously approved objectives. If no goals have been established and
approved by the Board as of the date of termination, but executive performance goals are ultimately
approved by the Board that would apply to other executive employees for the period prior to
termination, then such goals as ultimately approved by the Board shall apply for purposes of
determining the pro-rated

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Annual Bonus hereunder. In any event, the extent to which Executive has achieved the agreed upon
Annual Bonus objectives and the method of pro-ration shall be determined by the Board in the
exercise of its reasonable discretion.

          2. Confidential Information.

          (a) Obligation to Maintain Confidentiality. Executive acknowledges that the
information and data (including trade secrets) of a confidential, proprietary or secret nature
obtained by him during the course of his performance under this Agreement concerning the business
or affairs of the Company, Employer and their respective Subsidiaries and Affiliates
(“Confidential Information”) are the property of the Company, Employer or such Subsidiaries
and Affiliates, including information concerning acquisition opportunities in or reasonably related
to the Company’s and Employer’s business or industry of which Executive becomes aware during the
Employment Period. Therefore, Executive agrees that he will not disclose to any unauthorized Person
or use for his own account any Confidential Information during the Employment Period and for a
period of five (5) years thereafter without the Board’s written consent, unless and to the extent
that the Confidential Information (i) becomes generally known to and available for use by the
public other than as a result of Executive’s acts or omissions to act or (ii) is required to be
disclosed pursuant to any applicable law or court order. Executive shall deliver to the Company at
a Separation, or at any other time the Company may request, all memoranda, notes, plans, records,
reports, computer tapes, printouts and software and other documents and data (and copies thereof)
relating to the Confidential Information, Work Product (as defined below) or the business of the
Company, Employer and their respective Subsidiaries and Affiliates (including, without limitation,
all acquisition prospects, lists and contact information) which he may then possess or have under
his control. Notwithstanding the foregoing, Executive’s obligations and agreements pursuant to this
Section 2(a) with respect to any Confidential Information that constitutes a “trade secret”
as defined under applicable law shall continue indefinitely subsequent to the expiration of the
five (5)-year period described above or until such Confidential Information no longer constitutes a
“trade secret,” other than as a result of Executive’s acts or omissions to act.

          (b) Ownership of Property. Executive acknowledges that all discoveries, concepts,
ideas, inventions, innovations, improvements, developments, methods, processes, programs, designs,
analyses, drawings, reports, patent applications, copyrightable work and mask work (whether or not
including any confidential information) and all registrations or applications related thereto, all
other proprietary information and all similar or
related information (whether or not patentable) that relate to the Company’s, Employer’s or
any of their respective Subsidiaries’ or Affiliates’ actual or anticipated business, research and
development, or existing or future products or services and that are conceived, developed,
contributed to, made or reduced to practice by Executive (either solely or jointly with others)
while employed by the Company, Employer or any of their respective Subsidiaries or Affiliates
(including any of the foregoing that constitutes any proprietary information or records) (“Work
Product”) belong to the Company, Employer or such Subsidiary or Affiliate and Executive hereby
assigns, and agrees to assign, all of the above Work Product to the Company, Employer or to such
Subsidiary or Affiliate. Any copyrightable work prepared in whole or in part by Executive in the
course of his work for any of the foregoing entities shall be deemed a “work made for hire” under
the copyright laws, and the Company, Employer or such Subsidiary or Affiliate shall own all rights
therein. To the extent that any such copyrightable work is not a “work made for hire,” Executive
hereby assigns and agrees to assign to the Company, Employer or such Subsidiary or Affiliate all
right, title and interest, including without limitation, copyright in and to such copyrightable
work. At the request of the Board, Executive shall promptly disclose such Work Product and
copyrightable work to the Board and perform all actions reasonably requested by the Board (whether
during or after the Employment Period) to establish and confirm the Company’s, Employer’s or such
Subsidiary’s or Affiliate’s ownership (including, without limitation, assignments, consents, powers
of attorney and other instruments) at the sole cost and expense

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of the Company. Executive
understands, however, that there is no obligation being imposed on him to assign to the Company or
any Subsidiary or Affiliate, any invention falling within the definition of Work Product for which
no equipment, supplies, facility, or trade secret information of the Company or any of its
Subsidiaries or Affiliates was used and that was developed entirely on his own time, unless: (i)
such Work Product relates (A) to the Company’s, or its Subsidiaries’ or Affiliates’ businesses or
(B) to their actual or demonstrably anticipated research or development or (ii) the Work Product
results from any work performed by him for them under this Agreement. Executive has identified on
the signature page to this Agreement all Work Product that is or was owned by him or was written,
discovered, made, conceived or first reduced to practice by him alone or jointly with another
person prior to his employment under this Agreement. If no such Work Product is listed, Executive
represents to the Company that he does not now nor has he ever owned, nor has he made, any such
Work Product.

          (c) Third Party Information. Executive understands that the Company, Employer and
their respective Subsidiaries and Affiliates will receive from third parties confidential or
proprietary information (“Third Party Information”) subject to a duty on the Company’s,
Employer’s and their respective Subsidiaries’ and Affiliates’ part to maintain the confidentiality
of such information and to use it only for certain limited purposes. During the Employment Period
and thereafter, and without in any way limiting the provisions of Section 2(a) above,
Executive will hold Third Party Information in the strictest confidence and will not disclose to
anyone (other than personnel and consultants of the Company, Employer or their respective
Subsidiaries and Affiliates who Executive reasonably believes need to know such information in
connection with their work for the Company, Employer or their respective Subsidiaries and
Affiliates) or use, except in connection with his work for the Company, Employer or their
respective Subsidiaries and Affiliates, Third Party Information unless expressly authorized by a
member of the Board in writing.

          (d) Use of Information of Prior Employers. During the Employment Period, Executive
will not improperly use or disclose any confidential information or trade secrets, if any, of any
former employers or any other Person to whom Executive has an obligation of confidentiality, and
will not bring onto the premises of the Company, Employer or any of their respective Subsidiaries
or Affiliates any unpublished documents or any tangible property belonging to any former employer
or any other Person to whom Executive has an obligation of confidentiality unless consented to in
writing by the former employer or Person.

          3. Restrictive Covenants. Executive acknowledges that in the course of his employment
with Employer he will become familiar with the Company’s, Employer’s and their respective
Subsidiaries’ trade secrets and with other confidential information concerning the Company,
Employer and such Subsidiaries and that his services will be of special, unique and extraordinary
value to the Company, Employer and such Subsidiaries. Therefore, Executive agrees that:

          (a) Noncompetition. During the Employment Period and for a period of one (1) year
thereafter (collectively, the “Noncompete Period”), Executive shall not directly or
indirectly, anywhere in the United States, own, manage, control, participate in, consult with,
render services for, or in any manner engage in any business competing with the businesses of the
Company, Employer or their respective Subsidiaries or any business in which the Company, Employer
or any of their respective Subsidiaries has held discussions with or has otherwise taken specific
steps to acquire such business by developing a business plan or documenting synergies within two
(2) years prior to the Separation (for purposes of this Agreement, any business that engages in the
management or provision of anatomic pathology diagnostic, genomics or molecular testing services
(whether through physician practices, laboratories, hospitals, medical or surgical centers or
otherwise) shall be deemed to compete with the Company’s and Employer’s business). Nothing herein
shall prohibit Executive from being a passive owner of not more than 5% of the outstanding stock of
any class of a corporation that is publicly traded, so long as Executive has no

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active
participation in the business of such corporation.

          (b) Nonsolicitation. During the Noncompete Period, Executive shall not directly or
indirectly through another entity (i) induce or attempt to induce any employee of the Company,
Employer or their respective Subsidiaries to leave the employ of the Company, Employer or such
Subsidiary, or in any way intentionally interfere in any material respect with the relationship
between the Company, Employer and any of their respective Subsidiaries and any employee thereof,
(ii) hire any person who was an employee of the Company, Employer or any of their respective
Subsidiaries within twelve (12) months after such person ceased to be an employee of the Company,
Employer or any of their Subsidiaries, (iii) induce or attempt to induce any customer, supplier,
licensee or other business relation of the Company, Employer or any of their respective
Subsidiaries to cease doing business with the Company, Employer or such Subsidiary or in any way
intentionally interfere in any material respect with the relationship between any such customer,
supplier, licensee or business relation and the Company and any Subsidiary or (iv) directly or
indirectly acquire or attempt to acquire an interest in any business relating to the business of
the Company, Employer or any of their respective Subsidiaries and with which the Company, Employer
and any of their respective Subsidiaries had specific discussions or had requested and received
significant information relating to the acquisition of such business by the Company, Employer or
any of their respective Subsidiaries in the two (2)-year period immediately preceding a Separation.

          (c) Enforcement. If, at the time of enforcement of Section 2 or this
Section 3, a court holds that the restrictions stated herein are unreasonable under
circumstances then existing, the parties hereto agree that the maximum duration, scope or
geographical area reasonable under such circumstances shall be substituted for the stated period,
scope or area and that the court shall be allowed to revise the restrictions contained herein to
cover the maximum duration, scope and area permitted by law. Because Executive’s services are
unique and because Executive has access to confidential information, the parties hereto agree that
money damages would be an inadequate remedy for any breach of this Agreement. Therefore, in the
event a breach or threatened breach of this Agreement, the Company, Employer, their respective
Subsidiaries or their successors or assigns may, in addition to other rights and remedies existing
in their favor, apply to any court of competent jurisdiction for specific performance and/or
injunctive or other relief in order to enforce, or prevent any violations of, the provisions hereof
(without posting a bond or other security).

          (d) Additional Acknowledgments. Executive acknowledges that the provisions of this
Section 3 are in consideration of (i) employment with the Employer and (ii) additional good
and valuable consideration as set forth in this Agreement. In addition, Executive agrees and
acknowledges that the restrictions contained in Section 2 and this Section 3 do not
preclude Executive from earning a livelihood, nor do they unreasonably impose limitations on
Executive’s ability to earn a living. In addition, Executive acknowledges that (A) the business of
the Company, Employer and their respective Subsidiaries will be conducted throughout the United
States and other jurisdictions where the Company, Employer or their respective Subsidiaries conduct
business during the Employment Period, (B) notwithstanding the state of organization or principal
office of the Company, Employer or any of their respective Subsidiaries, or any of their respective
executives or employees (including the Executive), it is expected that the Company and Employer
will have business activities and have valuable business relationships within its industry
throughout the United States and other jurisdictions where the Company, Employer or their
respective Subsidiaries conduct business during the Employment Period, and (C) as part of his
responsibilities, Executive will be traveling throughout the United States and other jurisdictions
where the Company, Employer or their respective Subsidiaries conduct business during the Employment
Period in furtherance of Employer’s business and its relationships. Executive agrees and
acknowledges that the potential harm to the Company and Employer of the non-enforcement of
Section 2 and this Section 3 outweighs any potential harm to Executive of its
enforcement by injunction or

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otherwise. Executive acknowledges that he has carefully read this Agreement and has
given careful consideration to the restraints imposed upon Executive by this Agreement, and is in
full accord as to their necessity for the reasonable and proper protection of confidential and
proprietary information of the Company and Employer now existing or to be developed in the future.
Executive expressly acknowledges and agrees that each and every restraint imposed by this Agreement
is reasonable with respect to subject matter, time period and geographical area. Notwithstanding
any provision of this Agreement to the contrary, nothing contained in this Section 3 shall
limit or alter the right of Executive to own an equity interest in the Company (or its successor)
either before of after his Separation Date.

          4. Definitions.

          “Affiliate” means, with respect to any Person, any Person that controls, is controlled
by or is under common control with such Person or an Affiliate of such Person.

          “Board” means the Company’s board of managers.

          “Cause” means (i) the conviction or plea of no contest for or indictment on a felony
or a crime involving moral turpitude or the commission of any other act or omission involving
dishonesty or fraud, which involves a material matter, with respect to the Company, Employer or any
of their respective Subsidiaries or any of their customers or suppliers, (ii) substantial and
repeated failure to perform duties of the office held by Executive as
reasonably directed by the Board, (iii) gross negligence or willful misconduct with respect to
the Company, Employer or any of their respective Subsidiaries that is or could reasonably be
expected to be harmful to the Company, Employer or any of their respective Subsidiaries in any
material respect, (iv) conduct tending to bring the Company, Employer or any of their respective
Subsidiaries into substantial public disgrace or disrepute and (v) any breach by Executive of
Sections 2 or 3 of this Agreement. In the case of a termination for Cause pursuant to
clause (ii) above, Employer agrees that Executive shall have the opportunity to address the Board
before such termination for Cause becomes effective and shall have a one-time fifteen (15) business
day opportunity to cure such failure (i.e., a right not applicable to any subsequent failure) upon
written notice describing the action or omission constituting the Cause event.

          “Disability” means the disability of Executive caused by any physical or mental
injury, illness or incapacity as a result of which Executive is or will be unable to effectively
perform the essential functions of Executive’s duties for a continuous period of more than sixty
(60) days or for ninety (90) days (whether or not continuous) within a one-hundred eighty (180) day
period after reasonable accommodation, as determined by the Board in good faith.

          “Good Reason” means (i) a reduction in, or failure to pay when due or promptly
thereafter, Executive’s Annual Base Salary, (ii) a material diminution in Executive’s titles or
duties inconsistent with his position, (iii) failure to pay any Annual Bonus when due, (iv) a
material reduction in the employee benefits offered to Executive that is not also applicable to
executive employees of the Employer generally, and (v) a change in Executive’s principal office to
a location more than fifty (50) miles from Palm Beach Gardens, Florida, in each case without the
prior written consent of Executive; provided that written notice of Executive’s resignation
must be delivered to the Company within thirty (30) days after his actual knowledge of any such
event in order for such resignation to be with Good Reason for any purpose hereunder and that the
Company has a reasonable opportunity to cure in the event of a notice with respect to clause (ii)
above.

          “LLC Agreement” means the Limited Liability Company Agreement of the Company, as
amended from time to time pursuant to its terms.

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          “Person” means an individual, a partnership, a limited liability company, a
corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization, investment fund, any other business entity and a governmental entity or any
department, agency or political subdivision thereof.

          “Separation” means Executive ceasing to be employed by the Company, Employer or any of
their respective Subsidiaries for any reason.

          “Separation Date” means the date of a Separation.

          “Subsidiary” means, with respect to any Person, any corporation, limited liability
company, partnership, association, or business entity of which (i) if a corporation, a majority of
the total voting power of shares of stock entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers, or trustees thereof is at the time
owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company,
partnership, association, or other business entity (other than a corporation), a majority of
partnership or other similar ownership interest thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination
thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership
interest in a limited liability company, partnership, association, or other business entity (other
than a corporation) if such Person or Persons shall be allocated a majority of limited liability
company, partnership, association, or other business entity gains or losses or shall be or control
any managing director or general partner of such limited liability company, partnership,
association, or other business entity. For purposes hereof, references to a “Subsidiary” of
any Person shall be given effect only at such times that such Person has one or more Subsidiaries,
and, unless otherwise indicated, the term “Subsidiary” refers to a Subsidiary of the
Company.

          5. Notices. All notices, demands or other communications to be given or delivered
under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to
have been given when received (i) if delivered personally to the recipient, (ii) if sent to the
recipient by reputable express courier service (charges prepaid) or (iii) if mailed to the
recipient by certified or registered mail, return receipt requested and postage prepaid. Such
notices, demands and other communications shall be sent to the parties at the addresses indicated
below:

If to Employer or the Company:

Aurora Diagnostics, LLC/

Aurora Diagnostics Holdings, LLC

114 Via Verde Way

Palm Beach Gardens, Florida 33418-6205

Attention: Chief Executive Officer

with copies to:

Summit Partners, L.P.

222 Berkeley Street

Boston, Massachusetts 02116

Attention: Thomas S. Roberts

Telephone: (617) 824-1000

Facsimile: (617) 824-1100

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and

GSO Capital Partners

280 Park Avenue, 11th Floor

New York, NY 10017

Attention: Wesley W. Lang, Jr.

and

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, Illinois 60601

Attention: Ted H. Zook, P.C.

                  Jody S. Gale

Telephone: (312) 861-2000

Facsimile: (312) 861-2200

If to Executive:

Greg Marsh

10254 Hunt Club

Palm Beach Gardens, FL 33418

Telephone: (561) 472-0501

or such other address or to the attention of such other Person as the recipient party shall have
specified by prior written notice to the sending party.

          6. General Provisions.

          (a) Severability. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will
not affect any other provision or any other jurisdiction, but this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision
had never been contained herein.

          (b) Complete Agreement. This Agreement, those documents expressly referred to herein
and other documents of even date herewith embody the complete agreement and understanding among the
parties and supersede and preempt any prior understandings, agreements or representations by or
among the parties, written or oral, which may have related to the subject matter hereof in any way.

          (c) No Strict Construction. The language used in this Agreement shall be deemed to be
the language chosen by the parties hereto to express their mutual intent, and no rule of strict
construction shall be applied against any party.

          (d) Counterparts. This Agreement may be executed in separate counterparts (including
by means of facsimile), each of which is deemed to be an original and all of which taken together
constitute one and the same agreement.

          (e) Successors and Assigns. Except as otherwise provided herein, this Agreement shall
bind and inure to the benefit of and be enforceable by Executive, the Company, Employer and their

- 8 -

 

respective successors and assigns; provided that the rights and obligations of
Executive under this Agreement shall not be assignable.

          (f) Choice of Law. The law of the State of Delaware will govern all questions
concerning the relative rights of the Company, Employer and its security holders. All other
questions concerning the construction, validity and interpretation of this Agreement and the
exhibits hereto will be governed by and construed in accordance with the internal laws of the
State of Delaware, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Delaware or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of Delaware.

          (g) MUTUAL WAIVER OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX
TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE
PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE
PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE,
TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH
PARTY TO THIS AGREEMENT HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR
PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF THE PARTIES HERETO, WHETHER
ARISING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO
THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY AND/OR THE RELATIONSHIP ESTABLISHED AMONG THE
PARTIES HEREUNDER.

          (h) Executive’s Cooperation. During the Employment Period, Executive shall cooperate
with the Company, Employer and their respective Subsidiaries and Affiliates in any disputes with
third parties, internal investigation or administrative, regulatory or judicial proceeding as
reasonably requested by the Company (including, without limitation, Executive being available to
the Company upon reasonable notice for interviews and factual investigations, appearing at the
Company’s request to give testimony without requiring service of a subpoena or other legal process,
volunteering to the Company all pertinent information and turning over to the Company all relevant
documents which are or may come into Executive’s possession, all at times and on schedules that are
reasonably consistent with Executive’s other permitted activities and commitments). In the event
the Company desires Executive’s cooperation in accordance with this paragraph after the Employment
Period, the Company shall reimburse Executive for reasonable travel expenses (including lodging and
meals, upon submission of receipts) and compensate Executive at a reasonable rate for such
cooperation, as determined by mutual agreement of the Company and Executive.

          (i) Remedies. Each of the parties to this Agreement will be entitled to enforce its
rights under this Agreement specifically, to recover damages and costs (including attorney’s fees)
caused by any breach of any provision of this Agreement and to exercise all other rights existing
in its favor. The parties hereto agree and acknowledge that money damages may not be an adequate
remedy for any breach of the provisions of this Agreement and that any party may in its sole
discretion apply to any court of law or equity of competent jurisdiction (without posting any bond
or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent
any violations of the provisions of this Agreement. In the event any such parties file suit and
does not prevail, they shall reimburse Executive for his reasonable attorney’s fees in defending
such suit and in the event Executive files suit and does not prevail, Executive shall reimburse
such parties for their reasonable attorney’s fees in defending such suit.

- 9 -

 

          (j) Amendment and Waiver. The provisions of this Agreement may be amended and waived
only with the prior written consent of the Company, Employer and the Executive.

          (k) Insurance. The Company, at its discretion, may apply for and procure in its own name
and for its own benefit life and/or disability insurance on Executive in any amount or amounts
considered available. Executive agrees to cooperate in any reasonable medical or other
examination, supply any information, and to execute and deliver any applications or other instruments in writing as
may be reasonably necessary to obtain and constitute such insurance.

          (l) Business Days. If any time period for giving notice or taking action hereunder
expires on a day which is a Saturday, Sunday or holiday in the state in which the Company’s chief
executive office is located, the
time period shall be automatically extended to the business day immediately following such
Saturday, Sunday or holiday.

          (m) Indemnification and Reimbursement of Payments on Behalf of Executive. The Company
and its Subsidiaries shall be entitled to deduct or withhold from any amounts owing from the
Company or any of its Subsidiaries to Executive any federal, state, local or foreign withholding
taxes, excise taxes, or employment taxes (“Taxes”) imposed with respect to Executive’s
compensation or other payments from the Company or its Subsidiaries, including, without limitation,
wages and bonuses. In the event the Company or its Subsidiaries does not make such deductions or
withholdings on Executive’s behalf, Executive shall indemnify the Company and its Subsidiaries for
any amounts paid with respect to any such Taxes, together with any interest, penalties and related
expenses thereto.

          (n) Termination. This Agreement (except for the provisions of Sections 1(a)
and (b)) shall survive a Separation and shall remain in full force and effect after such
Separation.

          (o) Adjustments of Numbers. All numbers set forth herein that refer to unit prices or
amounts will be appropriately adjusted to reflect unit splits, unit dividends, combinations of
units and other recapitalizations affecting the subject class of equity.

          (p) Delivery by Facsimile. This Agreement, the agreements referred to herein, and each
other agreement or instrument entered into in connection herewith or therewith or contemplated
hereby or thereby, and any amendments hereto or thereto, to the extent signed and delivered by
means of a facsimile machine, shall be treated in all manner and respects as an original agreement
or instrument and shall be considered to have the same binding legal effect as if it were the
original signed version thereof delivered in person. At the request of any party hereto or to any
such agreement or instrument, each other party hereto or thereto shall reexecute original forms
thereof and deliver them to all other parties. No party hereto or to any such agreement or
instrument shall raise the use of a facsimile machine to deliver a signature or the fact that any
signature or agreement or instrument was transmitted or communicated through the use of a facsimile
machine as a defense to the formation or enforceability of a contract and each such party forever
waives any such defense.

*   *   *   *   *

- 10 -

 

          IN WITNESS WHEREOF, the parties hereto have executed this Senior Management Agreement on the
date first above written.

	 	 	 	 	 
	 	AURORA DIAGNOSTICS HOLDINGS, LLC

 	 
	 	By:  	/s/ James C. New
 	 
	 	 	Name:  	James C. New 	 
	 	 	Its:   Chief Executive Officer and President 	 
	 
	 	AURORA DIAGNOSTICS, LLC

 	 
	 	By:  	/s/ James C. New
 	 
	 	 	Name:  	James C. New 	 
	 	 	Its:   Chief Executive Officer and President 	 
	 
	 	 	 
	 	  	/s/ Greg Marsh
 	 
	 	 	Greg Marsh 	 
	 	 	 	 
	 

			
		 	

			
		 C.C. 	  Greg marsh

 

 

EXHIBIT A

GENERAL RELEASE

     I, Greg Marsh, in consideration of and subject to the performance by Aurora Diagnostics
Holdings, LLC, a Delaware limited liability company (together with its subsidiaries, the
“Company”), of its obligations under the Senior Management Agreement, dated as of November
5, 2007 (the “Agreement”), do hereby release and forever discharge as of the date hereof
the Company and its affiliates and all present and former directors, officers, agents,
representatives, employees, successors and assigns of the Company and its affiliates and the
Company’s direct or indirect owners (collectively, the “Released Parties”) to the extent
provided below.

	1.	 	I understand that any Severance Payments (as defined in the Agreement) paid or granted to me
under Section 1(c) of the Agreement represent, in part, consideration for signing this General
Release and are not salary, wages or benefits to which I was already entitled. I understand
and agree that I will not receive the Severance Payments specified in Section 1(c) of the
Agreement unless I execute this General Release and do not revoke this General Release within
the time period permitted hereafter or breach this General Release. I also acknowledge and
represent that I have received all payments and benefits that I am entitled to receive (as of
the date hereof) by virtue of any employment by the Company.

	2.	 	Except as provided in paragraph 4 and 12 below and except for the provisions of the Agreement
which expressly survive the termination of my employment with the Company, I knowingly and
voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever
discharge the Company and the other Released Parties from any and all claims, suits,
controversies, actions, causes of action, cross-claims, counter-claims, demands, debts,
compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims
for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity,
both past and present (through the date this General Release becomes effective and
enforceable) and whether known or unknown, suspected, or claimed against the Company or any of
the Released Parties which I, my spouse, or any of my heirs, executors, administrators or
assigns, may have, which arise out of or are connected with my employment with, or my
separation or termination from, the Company (including, but not limited to, any allegation,
claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the
Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended
(including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended;
the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the
Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act
of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state
or local counterparts; or under any other federal, state or local civil or human rights law,
or under any other local, state, or federal law, regulation or ordinance; or under any public
policy, contract or tort, or under common law; or arising under any policies, practices or
procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction
of emotional distress, defamation; or any claim for costs, fees, or other expenses, including
attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to
herein as the “Claims”).

	3.	 	I represent that I have made no assignment or transfer of any right, claim, demand, cause of
action, or other matter covered by paragraph 2 above.

 

 

	4.	 	I agree that this General Release does not waive or release any rights or claims that I may
have under the Age Discrimination in Employment Act of 1967 which arise after the date I
execute this General Release. I acknowledge and agree that my separation from employment with
the Company in compliance with the terms of the Agreement shall not serve as the basis for any
claim or action (including, without limitation, any claim under the Age Discrimination in
Employment Act of 1967).

	5.	 	In signing this General Release, I acknowledge and intend that it shall be effective as a bar
to each and every one of the Claims hereinabove mentioned or implied. I expressly consent that
this General Release shall be given full force and effect according to each and all of its
express terms and provisions, including those relating to unknown and unsuspected Claims
(notwithstanding any state statute that expressly limits the effectiveness of a general
release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating
to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver
is an essential and material term of this General Release and that without such waiver the
Company
would not have agreed to the terms of the Agreement. I further agree that in the event I
should bring a Claim seeking damages against the Company, or in the event I should seek to
recover against the Company in any Claim brought by a governmental agency on my behalf, this
General Release shall serve as a complete defense to such Claims. I further agree that I am
not aware of any pending claim of the type described in paragraph 2 as of the execution of
this General Release.

	6.	 	I agree that neither this General Release, nor the furnishing of the consideration for this
General Release, shall be deemed or construed at any time to be an admission by the Company,
any Released Party or myself of any improper or unlawful conduct.

	7.	 	I agree that if I violate this General Release by suing the Company or the other Released
Parties, I will pay all costs and expenses of defending against the suit incurred by the
Released Parties, including reasonable attorneys’ fees, and return all payments received by me
pursuant to the Agreement.

	8.	 	I agree that this General Release and the Agreement are confidential and agree not to
disclose any information regarding the terms of this General Release or the Agreement, except
to my immediate family and any tax, legal or other counsel I have consulted regarding the
meaning or effect hereof or as required by law, and I will instruct each of the foregoing not
to disclose the same to anyone. Notwithstanding anything herein to the contrary, each of the
parties (and each affiliate and person acting on behalf of any such party) agree that each
party (and each employee, representative, and other agent of such party) may disclose to any
and all persons, without limitation of any kind, the tax treatment and tax structure of this
transaction contemplated in the Agreement and all materials of any kind (including opinions or
other tax analyses) that are provided to such party or such person relating to such tax
treatment and tax structure, except to the extent necessary to comply with any applicable
federal or state securities laws. This authorization is not intended to permit disclosure of
any other information including (without limitation) (i) any portion of any materials to the
extent not related to the tax treatment or tax structure of this transaction, (ii) the
identities of participants or potential participants in the Agreement, (iii) any financial
information (except to the extent such information is related to the tax treatment or tax
structure of this transaction), or (iv) any other term or detail not relevant to the tax
treatment or the tax structure of this transaction.

	9.	 	Any non-disclosure provision in this General Release does not prohibit or restrict me (or
my attorney) from responding to any inquiry about this General Release or its underlying facts and

 

 

	 	 	circumstances by the Securities and Exchange Commission (SEC), the National Association of
Securities Dealers, Inc. (NASD), any other self-regulatory organization or governmental
entity.

	10.	 	I agree to turn over to the Company all relevant documents which are or may come into my
possession.
	 
	11.	 	I agree not to disparage Company, its past and present investors, officers, directors or
employees or its affiliates and to keep all confidential and proprietary information about
the past or present business affairs of the Company and its affiliates confidential unless a
prior written release from the Company is obtained. I further agree that as of the date
hereof, I have returned to the Company any and all property, tangible or intangible,
relating to its business, which I possessed or had control over at any time (including, but
not limited to, company-provided credit cards, building or office access cards, keys,
computer equipment, manuals, files, documents, records, software, customer data base and
other data) and that I shall not retain any copies, compilations, extracts, excerpts,
summaries or other notes of any such manuals, files, documents, records, software, customer
data base or other data.

	12.	 	Notwithstanding anything in this General Release to the contrary, this General Release shall
not relinquish, diminish, or in any way affect (i) any rights or claims arising out of any
breach by the Company or by any Released Party of the Agreement after the date hereof, (ii)
any rights I have to the Severance Payments or other payments pursuant to Section 1 of the
Agreement after the date hereof, (iii) any rights I have to benefits under the Company’s
benefit plans, including any 401(k) balance, or (iv) any rights to indemnification pursuant to
the LLC Agreement (as defined in the Agreement).

	13.	 	Whenever possible, each provision of this General Release shall be interpreted in, such
manner as to be effective and valid under applicable law, but if any provision of this General
Release is held to be invalid, illegal or unenforceable in any respect under any applicable
law or rule in any jurisdiction, such invalidity,
illegality or unenforceability shall not affect any other provision or any other
jurisdiction, but this General Release shall be reformed, construed and enforced in such
jurisdiction as if such invalid, illegal or unenforceable provision had never been contained
herein.

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

	 	a.	 	I HAVE READ IT CAREFULLY;

	 	b.	 	I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS,
INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF
1967, AS AMENDED,TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY
ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED;

	 	c.	 	I VOLUNTARILY CONSENT TO EVERYTHING IN IT;

	 	d.	 	I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE
DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION I HAVE CHOSEN NOT TO DO SO OF MY OWN
VOLITION;

 

 

	 	e.	 	I HAVE HAD AT LEAST 21 DAYS FROM THE DATE OF MY RECEIPT OF THIS
RELEASE SUBSTANTIALLY IN ITS FINAL FORM ON                     ,
        TO CONSIDER IT AND THE CHANGES MADE SINCE THE                      ,
        VERSION OF THIS RELEASE ARE NOT MATERIAL AND WILL NOT
RESTART THE REQUIRED 21-DAY PERIOD;
	 
	 	f.	 	THE CHANGES TO THE AGREEMENT SINCE                    ,
        EITHER ARE NOT MATERIAL OR WERE MADE AT MY REQUEST.
	 
	 	g.	 	I UNDERSTAND THAT I HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS
RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;
	 
	 	h.	 	I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL
RETAINED TO ADVISE ME WITH RESPECT TO IT; AND
	 
	 	i.	 	I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED
EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.

	 	 	 	 	 
	 	 	 
	       DATE: November 5, 2007 	  	 	 
	 	 	NAME: Greg Marsh

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