Document:

exv10w1

 

Exhibit 10.1

Execution Copy

EMPLOYMENT AGREEMENT

          This Employment Agreement (this “Agreement”) is made as of March 31, 2008, by and between
First Solar, Inc., a Delaware corporation having its principal office at 4050 East Cotton Center
Boulevard, Building 6, Suite 68, Phoenix, Arizona 85040 (hereinafter “Employer”) and James R.
Miller (hereinafter “Employee”).

          WITNESSETH:

          WHEREAS, Employer and Employee wish to enter into an agreement relating to the employment of
Employee by Employer.

          NOW, THEREFORE, in consideration of the foregoing premises, and the mutual covenants, terms
and conditions set forth herein, and intending to be legally bound hereby, Employer and Employee
hereby agree as follows:

ARTICLE I. Employment

1.1 Term; At-Will Nature of Employment. The term of this Agreement (the “Term”) shall
commence as of March 31, 2008 (the “Start Date”). As of such date, Employer shall employ Employee
as a full-time, at-will employee, and Employee shall accept employment with Employer as a
full-time, at-will employee. Employer or Employee may terminate this Agreement at any time and for
any reason, with or without cause and with or without notice, subject to the provisions of this
Agreement.

1.2 Position and Duties of Employee. Employer hereby employs Employee in the initial
capacity of Executive Vice President, Product and Global Supply Chain Management for First Solar
and Employee hereby accepts such position. Employee agrees to diligently and faithfully perform
such duties as may from time to time be assigned to Employee by Employer’s Chief Executive Officer
or Employer’s Board of Directors (the “Board”), consistent with Employee’s position with Employer.
Employee recognizes the necessity for established policies and procedures pertaining to Employer’s
business operations, and Employer’s right to change, revoke or supplement such policies and
procedures at any time, in Employer’s sole discretion. Employee agrees to comply with such
policies and procedures, including those contained in any manuals or handbooks, as may be amended
from time to time in the sole discretion of Employer.

1.3 No Salary or Benefits Continuation Beyond Termination. Except as may be required by
applicable law or as otherwise specified in this Agreement or the Change in Control Severance
Agreement between Employer and Employee dated as of the date hereof (the “Change in Control
Agreement”), Employer shall not be liable to Employee for any salary or benefits continuation
beyond the date of Employee’s cessation of employment with Employer. The rights

 

 

and obligations
set forth in Section 1.5 and Articles IV and V of this Agreement shall survive termination of
Employee’s employment and termination of this Agreement.

1.4 Termination of Employment. Employee’s employment with Employer shall terminate upon
the earliest of: (a) Employee’s death; (b) unless waived by Employer, Employee’s disability,
either physical or mental (as determined by a qualified physician mutually agreeable to Employer
and Employee) which renders Employee unable, for a period of at least six (6) months, effectively
to perform the obligations, duties and responsibilities of Employee’s employment with Employer;
(c) the termination of Employee’s employment by Employer for cause (as hereinafter defined); (d)
Employee’s resignation; and (e) the termination of Employee’s employment by Employer without cause.
As used herein, “cause” shall mean Employer’s good faith determination of: (i) Employee’s
dishonest, fraudulent or illegal conduct relating to the business of Employer; (ii) Employee’s
willful breach or habitual neglect of Employee’s duties or obligations in connection with
Employee’s employment; (iii) Employee’s misappropriation of Employer funds; (iv) Employee’s
conviction of a felony or any other criminal offense involving fraud or dishonesty, whether or not
relating to the business of Employer or Employee’s employment with Employer; (v) Employee’s
excessive use of alcohol; (vi) Employee’s unlawful use of controlled substances or other addictive
behavior; (vii) Employee’s unethical business conduct; (viii) Employee’s breach of any statutory
or common law duty of loyalty to Employer; or (ix) Employee’s material breach of this Agreement,
the Non-Competition and Non-Solicitation Agreement between Employer and Employee (the
“Non-Competition Agreement”), the Confidentiality and Intellectual Property Agreement between
Employer and Employee (the “Confidentiality Agreement”) or the Change in Control Agreement. Upon
termination of Employee’s employment with Employer for any reason, Employee will promptly return to
Employer all materials in any form acquired by Employee as a result of such employment with
Employer, and all property of Employer.

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1.5 Severance Payments and Vacation Pay.

          (a) Vacation Pay in the Event of a Termination of Employment.  In the event
of the termination of Employee’s employment with Employer for any reason, Employee shall be
entitled to receive, in addition to the severance payments described in Section 1.5(b) below, if
any, the dollar value of any earned but unused (and unforfeited) vacation. Such dollar value shall
be paid to Employee within fifteen (15) days following the date of termination of employment.

          (b) Severance Payments in the Case of a Termination Without Cause Pursuant to Section
1.4(e). If Employee’s employment is terminated by Employer pursuant to Section 1.4(e)
(termination without cause), then, subject to the Change in Control Agreement, Employee shall be
entitled to severance pay equal to one (1) times the Base Salary (as hereinafter defined) in effect
as of the date of termination of employment payable in accordance with Employer’s regular payroll
practices commencing on the first payroll date on or following the 61st day following the date of
termination. Severance payments shall be reduced by any compensation that Employee earns during
the twelve (12) months following such termination of employment. Employee agrees to notify
Employer of the amounts of such compensation earned. Severance payments shall be subject to any
applicable tax withholding requirements. Notwithstanding anything to the contrary herein, no
severance payments shall be due or made to Employee hereunder unless, on or prior to the sixtieth
(60th) day following the date of termination of employment, (i) Employee shall have executed and
delivered a general release in favor of Employer and its affiliates, which shall be substantially
in the form of the Separation Agreement and Release attached hereto as Exhibit A and
otherwise satisfactory to Employer and (ii) such general release has become effective and
irrevocable (the date such release is effective and irrevocable, the “Release Effective
Date”).

          (c) Medical Insurance. If Employee’s employment is terminated by Employer pursuant
to Section 1.4(e) (termination without cause), Employer will provide or pay for Employee’s medical
insurance benefits at the same or a comparable level as provided by Employer during Employee’s
employment, for a period beginning on the date of termination and ending on the earlier of (i) the
date that is twelve (12) months following such termination and (ii) the date that Employee is
covered under a medical benefits plan of a subsequent employer. Except as permitted by Section
409A (as defined below), the continued benefits provided to Employee pursuant to this Section
1.5(c) during any calendar year will not affect the continued benefits to be provided to Employee
pursuant to this Section 1.5(c) in any other calendar year.

          (d) Vesting. In the event of (i) the termination of Employee’s employment with
Employer due to death under Section 1.4(a), (ii) the termination of Employee’s employment with
Employer due to disability under Section 1.4(b) or (iii) the termination of Employee’s employment
by Employer without cause under Section 1.4(e), Employee shall immediately receive an additional
twelve (12) months of vesting credit with respect to Employee’s stock options, stock appreciation
rights, restricted stock and any other equity or equity-based compensation. The shares underlying
any restricted stock units that become vested pursuant to this Section 1.5(d) shall be payable on
the date of Employee’s termination of employment. Any

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of Employee’s stock options and stock appreciation rights that become vested pursuant to this Section 1.5(d) shall be exercisable immediately upon vesting, and any such stock options and stock
appreciation rights and any of Employee’s stock options and stock appreciation rights that are
otherwise vested and exercisable as of Employee’s termination of employment shall remain
exercisable for 12 months following Employee’s termination of employment, provided that, if during
such period Employee is under any trading restriction due to a lockup agreement or closed trading
window, such period shall be tolled during the period of such trading restriction. In the event
the terms of this Agreement are contrary to or conflict with the terms of any document or agreement
addressing Employee’s stock options, restricted stock, restricted stock units or any other equity
compensation, the terms of this Agreement shall govern and control; provided that, notwithstanding
anything to the contrary herein, in no event shall any stock option or stock appreciation right
continue to be exercisable after the original expiration date of such stock option or stock
appreciation right.

ARTICLE II. Compensation

2.1 Sign on Bonus. Subject to applicable tax withholding requirements, Employee shall
receive a Twenty-five Thousand and 00/100 Dollar ($25,000) sign on bonus payable on the first
payroll date of the Term.

2.2 Base Salary. Employee shall be compensated at an annual base salary of Three Hundred
Fifty Thousand and 00/100 Dollars ($350,000) (the “Base Salary”) while Employee is employed by
Employer under this Agreement, subject to such annual increases that Employer may, in its sole
discretion, determine to be appropriate. Such Base Salary shall be paid in accordance with
Employer’s standard policies and shall be subject to applicable tax withholding requirements.

2.3 Annual Bonus Eligibility. Employee shall be eligible to receive an annual bonus of up
to sixty percent (60%) of Employee’s Base Salary based upon individual and company performance, as
determined by Employer in its sole discretion. The specific bonus eligibility and the standards
for earning a bonus will be developed by Employer and communicated to Employee as soon as
practicable after the beginning of each year.

2.4 Benefits; Vacation. Employee shall be eligible to receive all benefits as are
available to similarly situated employees of Employer generally, and any other benefits that
Employer may, in its sole discretion, elect to grant to Employee from time to time. In addition,
Employee shall be entitled to four (4) weeks paid vacation per year, which shall be accrued in
accordance with Employer’s policies applicable to similarly situated employees of Employer.

2.5 Reimbursement of Business Expenses. Employee may incur reasonable expenses in the
course of employment hereunder for which Employee shall be eligible for reimbursement or advances
in accordance with Employer’s standard policy therefor.

2.6 Grant of Equity.

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          (a) Eligibility. Employee will be eligible to participate in Employer’s equity
participation programs to acquire options or equity incentive compensation units in the common
stock of Employer, subject to and/or in accordance with the following: (i) the additional terms
contained in Employer’s equity grant documentation; (ii) approval, if required, of Employer’s
equity incentive plan by the Board and the shareholders of Employer; (iii) approval of the grants
by the Board; (iv) Employee’s execution of documents requested by Employer at the time of grant;
(v) Employee’s continued employment through the grant date; (vi) the terms of the 2006 Omnibus
Equity Incentive Compensation Plan or the successor thereto; and (vii) the policies, procedures and
practices that may be adopted from time to time by Employer in its sole discretion for granting
such options or equity incentive compensation units.

          (b) Hiring Grant. Promptly following the Start Date, but subject to Board approval,
Employee will receive a one time grant of restricted stock units valued at Two Million Eight
Hundred Thousand and 00/100 Dollars ($2,800,000) on the Start Date, as determined by the Board,
which shall vest, contingent on continued employment, in accordance with the terms of the
restricted stock unit grant.

2.7 Location. Employee’s position will be based in Phoenix, Arizona.

ARTICLE III. Absence of Restrictions

3.1 Employee hereby represents and warrants to Employer that Employee has full power, authority and
legal right to enter into this Agreement and to carry out all obligations and duties hereunder and
that the execution, delivery and performance by Employee of this Agreement will not violate or
conflict with, or constitute a default under, any agreements or other understandings to which
Employee is a party or by which Employee may be bound or affected, including any order, judgment or
decree of any court or governmental agency. Employee further represents and warrants to Employer
that Employee is free to accept employment with Employer as contemplated herein and that Employee
has no prior or other obligations or commitments of any kind to any person, firm, partnership,
association, corporation, entity or business organization that would in any way hinder or interfere
with Employee’s acceptance of, or the full performance of, Employee’s duties hereunder.

ARTICLE IV. Miscellaneous

4.1 Withholding. Any payments made under this Agreement shall be subject to applicable
federal, state and local tax reporting and withholding requirements.

4.2 Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware without reference to the principles of conflicts
of laws. Any judicial action commenced relating in any way to this Agreement including the
enforcement, interpretation or performance of this Agreement, shall be commenced and maintained in
a court of competent jurisdiction located in Maricopa County, Arizona. In any action to enforce
this Agreement, the prevailing party shall be entitled to recover its litigation

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costs, including its attorneys’ fees. The parties hereby waive and relinquish any right to a jury trial and agree
that any dispute shall be heard and resolved by a court and without a jury. The parties further
agree that the dispute resolution, including any discovery, shall be accelerated and
expedited to the extent possible. Each party’s agreements in this Section 4.2 are made in
consideration of the other party’s agreements in this Section 4.2, as well as in other portions of
this Agreement.

4.3 No Waiver. The failure of Employer or Employee to insist in any one or more instances
upon performance of any terms, covenants and conditions of this Agreement shall not be construed as
a waiver or relinquishment of any rights granted hereunder or of the future performance of any such
terms, covenants or conditions.

4.4 Notices. All notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given if personally delivered, delivered by facsimile
transmission or by courier or mailed, registered or certified mail, postage prepaid as follows:

	 	 	 	 	 
	 

	 	If to Employer:
	 	First Solar, Inc.
	 

	 	 	 	28101 Cedar Park Blvd
	 

	 	 	 	Perrysburg, OH 43551
	 

	 	 	 	Attention: Human Resources
	 
	 	 	 	 
	 

	 	If to Employee:
	 	To Employee’s then current address on file with
Employer

Or at such other address or addresses as any such party may have furnished to the other party in
writing in a manner provided in this Section 4.4.

4.5 Assignability and Binding Effect. This Agreement is for personal services and is
therefore not assignable. Notwithstanding the foregoing, this Agreement may be assigned by
Employer to any successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business or assets of Employer (the “Successor”). As
used in this Agreement, (a) the term “Employer” shall mean Employer as hereinbefore defined and any
Successor and any permitted assignee to which this Agreement is assigned and (b) the term “Board”
shall mean the Board as hereinbefore defined and the board of directors or equivalent governing
body of any Successor and any permitted assignee to which this Agreement is assigned. This
Agreement shall be binding upon and inure to the benefit of the parties, their successors, assigns,
heirs, executors and legal representatives.

4.6 Entire Agreement. This Agreement, the Change in Control Agreement, the Non-Competition
Agreement and the Confidentiality Agreement set forth the entire agreement between Employer and
Employee regarding the terms of Employee’s employment and supersede all prior agreements between
Employer and Employee covering the terms of Employee’s employment. This Agreement may not be
amended or modified except in a written instrument

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signed by Employer and Employee identifying this Agreement and stating the intention to amend or modify it.

4.7 Severability. If it is determined by a court of competent jurisdiction that any of the
restrictions or language in this Agreement are for any reason invalid or unenforceable, the
parties desire and agree that the court revise any such restrictions or language, including
reducing any time or geographic area, so as to render them valid and enforceable to the fullest
extent allowed by law. If any restriction or language in this Agreement is for any reason invalid
or unenforceable and cannot by law be revised so as to render it valid and enforceable, then the
parties desire and agree that the court strike only the invalid and unenforceable language and
enforce the balance of this Agreement to the fullest extent allowed by law. Employer and Employee
agree that the invalidity or unenforceability of any provision of this Agreement shall not affect
the remainder of this Agreement.

4.8 Construction. As used in this Agreement, words such as “herein,” “hereinafter,”
“hereby” and “hereunder,” and the words of like import refer to this Agreement, unless the context
requires otherwise. The words “include,” “includes” and “including” shall be deemed to be followed
by the phrase “without limitation”.

ARTICLE V. Section 409A

5.1 In General. It is intended that the provisions of this Agreement comply with Section
409A of the Internal Revenue Code of 1986, as amended, and the regulations thereunder as in effect
from time to time (collectively, “Section 409A”), and all provisions of this Agreement shall be
construed and interpreted in a manner consistent with the requirements for avoiding taxes or
penalties under Section 409A.

5.2 No Alienation, Set-offs, Etc. Neither Employee nor any creditor or beneficiary of
Employee shall have the right to subject any deferred compensation (within the meaning of Section
409A) payable under this Agreement or under any other plan, policy, arrangement or agreement of or
with Employer or any of its affiliates (this Agreement and such other plans, policies, arrangements
and agreements, the “Employer Plans”) to any anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, attachment or garnishment. Except as permitted under Section 409A, any
deferred compensation (within the meaning of Section 409A) payable to or for the benefit of
Employee under any Employer Plan may not be reduced by, or offset against, any amount owing by
Employee to Employer or any of its affiliates.

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5.3 Possible Six-month Delay. If, at the time of Employee’s separation from service
(within the meaning of Section 409A), (a) Employee shall be a specified employee (within the
meaning of Section 409A and using the identification methodology selected by Employer from time to
time) and (b) Employer shall make a good faith determination that an amount payable under an
Employer Plan constitutes deferred compensation (within the meaning of Section 409A) the payment of
which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A in
order to avoid taxes or penalties under Section 409A, then Employer (or an affiliate thereof, as
applicable) shall not pay such amount on the otherwise scheduled payment date but shall instead
accumulate such amount and pay it, without interest, on the first day of the seventh month
following such separation from service.

5.4 Treatment of Installments. For purposes of Section 409A, each of the installments of
continued Base Salary referred to in Section 1.5(b) shall be deemed to be a separate payment as
permitted under Treas. Reg. Sec. 1.409A-2(b)(2)(iii).

     IN WITNESS WHEREOF, Employer has caused this Agreement to be executed by one of its duly
authorized officers and Employee has individually executed this Agreement, each intending to be
legally bound, as of the date first above written.

EMPLOYEE:

/s/ James R. Miller

James R. Miller

EMPLOYER:

First Solar, Inc.

By: /s/ Michael J. Ahearn

Name Printed: Michael J. Ahearn

Title: CEO

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Exhibit A

SEPARATION AGREEMENT AND RELEASE

I. Release. For good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the undersigned, with the intention of binding himself/herself, his/her heirs,
executors, administrators and assigns, does hereby release and forever discharge First Solar, Inc.,
a Delaware corporation (the “Company”), and its present and former officers, directors,
executives, agents, employees, affiliated companies, subsidiaries, successors, predecessors and
assigns (collectively, the “Released Parties”), from any and all claims, actions, causes of
action, demands, rights, damages, debts, accounts, suits, expenses, attorneys’ fees and liabilities
of whatever kind or nature in law, equity, or otherwise, whether now known or unknown
(collectively, the “Claims”), which the undersigned now has, owns or holds, or has at any
time heretofore had, owned or held against any Released Party, arising out of or in any way
connected with the undersigned’s employment relationship with the Company, its subsidiaries,
predecessors or affiliated entities, or the termination thereof, under any Federal, state or local
statute, rule, or regulation, or principle of common, tort or contract law, including but not
limited to, the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. §§ 201
et seq., the Family and Medical Leave Act of 1993, as amended (the
“FMLA”), 29 U.S.C. §§ 2601 et seq., Title VII of the Civil Rights Act of
1964, as amended, 42 U.S.C. §§ 2000e et seq., the Age
Discrimination in Employment Act of 1967, as amended, 29 U.S.C. §§ 621 et
seq., the Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §§
12101 et seq., the Worker Adjustment and Retraining Notification Act of 1988,
as amended, 29 U.S.C. §§ 2101 et seq., the Employee Retirement
Income Security Act of 1974, as amended, 29 U.S.C. §§ 1001 et seq.,
and any other equivalent or similar Federal, state, or local statute; provided,
however, that nothing herein shall release the Company (a) of its obligations under that
certain Employment Agreement in which the undersigned participates and pursuant to which this
Separation Agreement and Release is being executed and delivered, (b) from any claims by the
undersigned arising out of any director and officer indemnification or insurance obligations in
favor of the undersigned and (c) from any director and officer indemnification obligations under
the Company’s by-laws. The undersigned understands that, as a result of executing this Separation
Agreement and Release, he/she will not have the right to assert that the Company or any other
Released Party unlawfully terminated his/her employment or violated any of his/her rights in
connection with his/her employment or otherwise.

The undersigned affirms that he/she has not filed or caused to be filed, and presently is not a
party to, any Claim, complaint or action against any Released Party in any forum or form and that
he/she knows of no facts which may lead to any Claim, complaint or action being filed against any
Released Party in any forum by the undersigned or by any agency, group, or class persons. The
undersigned further affirms that he/she has been paid and/or has received all leave (paid or
unpaid), compensation, wages, bonuses, commissions, and/or benefits to which he/she may be entitled
and that no other leave (paid or unpaid), compensation, wages, bonuses, commissions and/or benefits
are due to him/her from the Company and its subsidiaries, except as specifically provided in this
Separation Agreement and Release. The undersigned furthermore affirms that he/she has no known
workplace injuries or occupational diseases and has been provided and/or has not been denied any
leave requested under the FMLA. If any agency or court assumes jurisdiction of any such Claim,
complaint or action against any Released Party on

 

 

behalf of the undersigned, the undersigned will request such agency or court to withdraw the
matter.

The undersigned further declares and represents that he/she has carefully read and fully
understands the terms of this Separation Agreement and Release and that he/she has been advised and
had the opportunity to seek the advice and assistance of counsel with regard to this Separation
Agreement and Release, that he/she may take up to and including 21 days from receipt of this
Separation Agreement and Release, to consider whether to sign this Separation Agreement and
Release, that he/she may revoke this Separation Agreement and Release within seven calendar days
after signing it by delivering to the Company written notification of revocation, and that he/she
knowingly and voluntarily, of his/her own free will, without any duress, being fully informed and
after due deliberate action, accepts the terms of and signs the same as his own free act.

II. Protected Rights. The Company and the undersigned agree that nothing in this
Separation Agreement and Release is intended to or shall be construed to affect, limit or otherwise
interfere with any non-waivable right of the undersigned under any Federal, state or local law,
including the right to file a charge or participate in an investigation or proceeding conducted by
the Equal Employment Opportunity Commission (“EEOC”) or to exercise any other right that
cannot be waived under applicable law. The undersigned is releasing, however, his/her right to any
monetary recovery or relief should the EEOC or any other agency pursue Claims on his/her behalf.
Further, should the EEOC or any other agency obtain monetary relief on his/her behalf, the
undersigned assigns to the Company all rights to such relief.

III. Equitable Remedies. The undersigned acknowledges that a violation by the undersigned
of any of the covenants contained in this Agreement would cause irreparable damage to the Company
and its subsidiaries in an amount that would be material but not readily ascertainable, and that
any remedy at law (including the payment of damages) would be inadequate. Accordingly, the
undersigned agrees that, notwithstanding any provision of this Separation Agreement and Release to
the contrary, the Company shall be entitled (without the necessity of showing economic loss or
other actual damage) to injunctive relief (including temporary restraining orders, preliminary
injunctions and/or permanent injunctions) in any court of competent jurisdiction for any actual or
threatened breach of any of the covenants set forth in this Agreement in addition to any other
legal or equitable remedies it may have.

IV. Return of Property. The undersigned shall return to the Company on or before [10 DAYS
AFTER TERMINATION DATE], all property of the Company in the undersigned’s possession or subject to
the undersigned’s control, including without limitation any laptop computers, keys, credit cards,
cellular telephones and files. The undersigned shall not alter any of the Company’s records or
computer files in any way after [TERMINATION DATE].

V. Severability. If any term or provision of this Separation Agreement and Release is
invalid, illegal or incapable of being enforced by any applicable law or public policy, all other
conditions and provisions of this Separation Agreement and Release shall nonetheless remain in full
force and effect so long as the economic and legal substance of the transactions contemplated by
this Separation Agreement and Release is not affected in any manner materially adverse to any
party.

2

 

VI. GOVERNING LAW. THIS SEPARATION AGREEMENT AND RELEASE SHALL BE DEEMED TO BE MADE IN
THE STATE OF DELAWARE, AND THE VALIDITY, INTERPRETATION, CONSTRUCTION AND PERFORMANCE OF THIS
AGREEMENT IN ALL RESPECTS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO
ITS PRINCIPLES OF CONFLICTS OF LAW.

Effective on the eighth calendar day following the date set forth below.

	 	 	 	 	 
	FIRST SOLAR, INC.	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	EMPLOYEE:	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	[NAME]	 	 
	 

	 	Date

Signed:                                                            	 	 

3

 

NON-COMPETITION AND NON-SOLICITATION AGREEMENT

     In consideration of Employee’s (as defined below) ongoing at-will employment with Employer (as
defined below) or one of its subsidiary companies, the compensation and benefits provided to me
including those set forth in a separate Employment Agreement, Change in Control Agreement and
Confidentiality and Intellectual Property Agreement (the “Confidentiality Agreement”) and
Employer’s agreement to provide Employee with access to Employer’s confidential information,
intellectual property and trade secrets, access to its customers and other promises made below,
Employee enters into the following non-competition and non-solicitation agreement:

     This Non-Competition and Non-Solicitation Agreement (“Agreement”) is effective by and between
James R. Miller (“Employee”) and First Solar, Inc. (“Employer”) as of March 31, 2008.

     Whereas, Employee desires to be employed by Employer and Employer has agreed to employ
Employee in the current position of Employee with Employer, or such other position as Employer may
from time to time determine;

     Whereas, because of the nature of Employee’s duties, in the performance of such duties,
Employee will have access to and will necessarily utilize sensitive, secret and proprietary data
and information, the value of which derives from its secrecy from Employer’s competitors, which,
like Employer, sell products and services throughout the world;

     Whereas, Employee and Employer acknowledge and agree that Employee’s conduct in the manner
prohibited by this Agreement during, or for the period specified in this Agreement following the
termination of, Employee’s employment with Employer, would jeopardize Employer’s Confidential
Information (as defined in the Confidentiality Agreement) and the goodwill Employer has developed
and generated over a period of years, and would cause Employer to experience unfair competition and
immediate, irreparable harm; and

     Whereas, in consideration of Employer’s hiring Employee, Employee therefore has agreed to the
terms of this Agreement, the Employment Agreement and the Confidentiality Agreement, and
specifically to the restrictions contained herein.

     Therefore, Employee and Employer hereby agree as follows (THE FOLLOWING ARE IMPORTANT
RESTRICTIONS TO WHICH EMPLOYEE AGREES IN ORDER TO INDUCE EMPLOYER TO RETAIN EMPLOYEE AND WHICH,
ONCE EMPLOYEE SIGNS THIS AGREEMENT, ARE BINDING ON EMPLOYEE. BY SIGNING THIS AGREEMENT, EMPLOYEE
SIGNIFIES THAT EMPLOYEE HAS READ THESE RESTRICTIONS CAREFULLY BEFORE SIGNING THIS AGREEMENT,
UNDERSTANDS THE AGREEMENT’S TERMS, AND ASSENTS TO ABIDE BY THESE RESTRICTIONS.):

 

 

     1. Nature and Period of Restriction. At all times during Employee’s employment and
for a period of twelve months after the termination of employment (for any reason, including
discharge or resignation) with Employer (the “Restricted Period”), Employee agrees as follows:

     1.1. Employee agrees not to engage or assist, in any way or in any capacity, anywhere in the
Territory (as defined below), either directly or indirectly, (a) in the business of the
development, sale, marketing, manufacture or installation that would be in direct competition with
of any type of product sold, developed, marketed, manufactured or installed by Employer during
Employee’s employment with Employer, including photovoltaic modules, or (b) in any other activity
in direct competition or that would be in direct competition with the business of Employer as that
business exists and is conducted (or with any business planned or seriously considered, of which
Employee has knowledge) during Employee’s employment with Employer. In addition and in particular,
Employee agrees not to sell, market, provide or distribute, or endeavor to sell, market, provide or
distribute, in any way, directly or indirectly, on behalf of Employee or any other person or
entity, any products or services competitive with those of Employer to any person or entity which
is or was an actual or prospective customer of Employer at any time during Employee’s employment by
Employer.

     1.2. “Territory” for purposes of this Agreement means North America, South America, Australia,
Europe and Asia.

     1.3. Employee agrees not to solicit, recruit, hire, employ or attempt to hire or employ, or
assist any other person or entity in the recruitment or hiring of, any person who is (or was) an
employee of Employer, and agrees not to otherwise urge, induce or seek to induce any person to
terminate his or her employment with Employer.

     1.4. The parties understand and agree that the restrictions set forth in the paragraphs in
this Section 1 also extend to Employee’s recommending or directing any such actual or prospective
customers to any other competitive concerns, or assisting in any way any competitive concerns in
soliciting or providing products or services to such customers, whether or not Employee personally
provides any products or services directly to such customers. For purposes of this Agreement, a
prospective customer is one that Employer solicited or with which Employer otherwise sought to
engage in a business transaction during the time that Employee is or was employed by Employer.

     1.5. Employee and Employer acknowledge and agree that Employer has expended substantial
amounts of time, money and effort to develop business strategies, customer relationships, employee
relationships, trade secrets and goodwill and to build an effective organization and that Employer
has a legitimate business interest and right in protecting those assets as well as any similar
assets that Employer may develop or obtain. Employee and Employer acknowledge that Employer is
entitled to protect and preserve the going concern value of Employer and its business and trade
secrets to the extent permitted by law. Employee acknowledges and agrees the restrictions imposed
upon Employee under this Agreement are reasonable and necessary for the protection of Employer’s
legitimate interests, including

2

 

Employer’s Confidential Information, intellectual property, trade secrets and goodwill.
Employee and Employer acknowledge that Employer is engaged in a highly competitive business, that
Employee is expected to serve a key role with Employer, that Employee will have access to
Employer’s Confidential Information, that Employer’s business and customers and prospective
customers are located around the world, and that Employee could compete with Employer from
virtually any location in the world. Employee acknowledges and agrees that the restrictions set
forth in this Agreement do not impose any substantial hardship on Employee and that Employee will
reasonably be able to earn a livelihood without violating any provision of this Agreement.
Employee acknowledges and agrees that, in addition to Employer’s agreement to hire him, part of the
consideration for the restrictions in this Section 1 consists of Employer’s agreement to make
severance payments as set forth in the separate Employment Agreement between Employer and Employee.

     1.6. Employee agrees to comply with each of the restrictive covenants contained in this
Agreement in accordance with its terms, and Employee shall not, and hereby agrees to waive and
release any right or claim to, challenge the reasonableness, validity or enforceability of any of
the restrictive covenants contained in this Agreement.

     2. Notice by Employee to Employer. Prior to engaging in any employment or business
during the Restricted Period, Employee agrees to provide prior written notice (by certified mail)
to Employer in accordance with Section 6, stating the description of the activities or position
sought to be undertaken by Employee, and to provide such further information as Employer may
reasonably request in connection therewith (including the location where the services would be
performed and the present or former customers or employees of Employer anticipated to receive such
products or services). Employer shall be free to object or not to object in its unfettered
discretion, and the parties agree that any actions taken or not taken by Employer with respect to
any other employees or former employees shall have no bearing whatsoever on Employer’s decision or
on any questions regarding the enforceability of any of these restraints with respect to Employee.

     3. Notice to Subsequent Employer. Prior to accepting employment with any other person
or entity during the Restricted Period, Employee shall provide such prospective employer with
written notice of the provisions of this Agreement, with a copy of such notice delivered promptly
to Employer in accordance with Section 6.

     4. Extension of Non-Competition Period in the Event of Breach. It is agreed that the
Restricted Period shall be extended by an amount of time equal to the amount of time during which
Employee is in breach of any of the restrictive covenants set forth above.

     5. Judicial Reformation to Render Agreement Enforceable. If it is determined by a
court of competent jurisdiction that any of the restrictions or language in this Agreement are for
any reason invalid or unenforceable, the parties desire and agree that the court revise any such
restrictions or language, including reducing any time or geographic area, so as to render them
valid and enforceable to the fullest extent allowed by law. If any restriction or language in this
Agreement is for any reason invalid or unenforceable and cannot by law be revised so as to render
it valid and enforceable, then the parties desire and agree that the court strike only the

3

 

invalid and unenforceable language and enforce the balance of this Agreement to the fullest
extent allowed by law. Employer and Employee agree that the invalidity or unenforceability of any
provision of this Agreement shall not affect the remainder of this Agreement.

     6. Notice. All documents, notices or other communications that are required or
permitted to be delivered or given under this Agreement shall be in writing and shall be deemed to
be duly delivered or given when received.

	 	 	 	 	 
	 

	 	If to Employer:
	 	First Solar, Inc.
	 

	 	 	 	4050 East Cotton Center Boulevard
	 

	 	 	 	Building 6, Suite 68
	 

	 	 	 	Phoenix, Arizona 85040
	 

	 	 	 	Attention: Chief Executive Officer
	 

	 	 	 	Fax: (602) 414-9400
	 
	 	 	 	 
	 

	 	If to Employee:
	 	To Employee’s then current address on file with Employer

     7. Enforcement. Except as expressly stated herein, the covenants contained in this
Agreement shall be construed as independent of any other provision or covenants of any other
agreement between Employer and Employee, and the existence of any claim or cause of action of
Employee against Employer, whether predicated on this Agreement or otherwise, or the actions of
Employer with respect to enforcement of similar restrictions as to other employees, shall not
constitute a defense to the enforcement by Employer of such covenants. Employee acknowledges and
agrees that Employer has invested great time, effort and expense in its business and reputation,
that the products and information of Employer are unique and valuable, and that the services
performed by Employee are unique and extraordinary, and Employee agrees that Employer will suffer
immediate, irreparable harm and shall be entitled, upon a breach or a threatened breach of this
Agreement, to emergency, preliminary, and permanent injunctive relief against such activities,
without having to post any bond or other security, and in addition to any other remedies available
to Employer at law or equity. Any specific right or remedy set forth in this Agreement, legal,
equitable or otherwise, shall not be exclusive but shall be cumulative upon all other rights and
remedies allowed or by law, including the recovery of money damages. The failure of Employer to
enforce any of the provisions of this Agreement, or the provisions of any agreement with any other
Employee, shall not constitute a waiver or limit any of Employer’s rights.

     8. At-Will Employment; Termination. This Agreement does not alter the at-will nature
of Employee’s employment by Employer, and Employee’s employment may be terminated by either party,
with or without notice and with or without cause, at any time. In addition to the foregoing
provisions of this Agreement, upon Employee’s termination, Employee shall cease all identification
of Employee with Employer and/or the business, products or services of Employer, and the use of
Employer’s name, trademarks, trade name or fictitious name. All provisions, obligations, and
restrictions in this Agreement shall survive termination of Employee’s employment with Employer.

4

 

     9. Choice of Law, Choice of Forum. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Delaware, without reference to the
principles of conflicts of laws. Any judicial action commenced relating in any way to this
Agreement including the enforcement, interpretation, or performance of this Agreement, shall be
commenced and maintained in a court of competent jurisdiction located in Maricopa County, Arizona.
In any action to enforce this Agreement, the prevailing party shall be entitled to recover its
litigation costs, including its attorneys’ fees. The parties hereby waive and relinquish any right
to a jury trial and agree that any dispute shall be heard and resolved by a court and without a
jury. The parties further agree that the dispute resolution, including any discovery, shall be
accelerated and expedited to the extent possible. Each party’s agreements in this Section 9 are
made in consideration of the other party’s agreements in this Section 9, as well as in other
portions of this Agreement.

     10. Entire Agreement, Modification and Assignment.

     10.1. This Agreement, the Employment Agreement, the Confidentiality Agreement and the Change
in Control Agreement comprise the entire agreement relating to the subject matter hereof between
the parties and supersede, cancel, and annul any and all prior agreements or understandings between
the parties concerning the subject matter of the Agreement.

     10.2. This Agreement may not be modified orally but may only be modified in a writing executed
by both Employer and Employee.

     10.3. This Agreement shall inure to the benefit of Employer, its successors and assigns, and
may be assigned by Employer. Employee’s rights and obligations under this Agreement may not be
assigned by Employee.

     11. Construction. As used in this Agreement, words such as “herein,”
“hereinafter,” “hereby” and “hereunder,” and the words of like import refer to this Agreement, unless the context
requires otherwise. The words “include,” “includes” and “including” shall be deemed to be followed
by the phrase “without limitation”.

     IN WITNESS WHEREOF, the parties have executed this Agreement, effective as of the day and year
first written above.

	 	 	 
	EMPLOYER:	 	EMPLOYEE:

	 
	 	 
	First Solar, Inc.

	 	James R. Miller
	 
	 	 
	By: /s/ Michael J. Ahearn

	 	/s/ James R. Miller
	Its: CEO
	 	 
	Printed Name: Michael J. Ahearn
	 	 

5

 

Execution Copy

Confidentiality and Intellectual Property Agreement

	 	 	 
	Employee:

	 	James R. Miller
	 
	 	 
	Place of Signing:

	 	Phoenix, Arizona
	 
	 	 
	 

	 	Date: March 31, 2008

In consideration of my ongoing at-will employment with First Solar, Inc. or one of its subsidiary
companies (collectively, the “Company”), for the compensation and benefits provided to me and for
the Company’s agreement to provide me with access to experience, knowledge and Confidential
Information (as defined below) in the course of such employment relating to the methods, plans and
operations of the Company and its suppliers, clients and customers, I enter into the following
Confidentiality and Intellectual Property Agreement (the “Agreement”) and agree as follows:

     1. Except for any items I have identified and described in a writing given to the Company and
acknowledged in writing by an officer of the Company on or before the date of this Agreement, which
items are specifically excluded from the operation of the applicable provisions hereof, I do not
own, nor have any interest in, any patents, patent applications, inventions, improvements, methods,
discoveries, designs, trade secrets, copyrights, and/or other patentable or proprietary rights.

     2. I will promptly and fully disclose to the Company all developments, inventions, ideas,
methods, discoveries, designs, and innovations (collectively referred to herein as “Developments”),
whether patentable or not, relating wholly or in part to my work for the Company or resulting
wholly or in part from my use of the Company’s materials or facilities, which I may make or
conceive, whether or not during working hours, whether or not using the Company’s materials,
whether or not on the Company facilities, alone or with others, at any time during my employment or
within ninety (90) days after termination thereof, and I agree that all such Developments shall be
the exclusive property of the Company, and that I shall have no proprietary or shop rights in
connection therewith.

     3. I will assign, and do hereby assign, to the Company or the Company’s designee, my entire
right, title and interest in and to all such Developments including all trademarks, copyrights,
moral rights and mask work rights in or relating to such Developments, and any patent applications
filed and patents granted thereon including those in foreign countries; and I agree, both during my
employment by the Company and thereafter, to execute any patent or other papers deemed necessary or
appropriate by the Company for filing with the United States or any other country covering such
Developments as well as any papers that the Company may consider necessary or helpful in obtaining
or maintaining such patents during the prosecution of patent applications thereon or during the
conduct of any interference, litigation, or any other matter in connection therewith, and to
transfer to the Company any such patents that may be

 

 

issued in my name. If, for some reason, I am unable to execute such patent or other papers, I
hereby irrevocably designate and appoint the Company and its designees and their duly authorized
officers and agents, as the case may be, as my agent and attorney in fact to act for and in my
behalf and stead to execute any documents and to do all other lawfully permitted acts in connection
with the foregoing. I agree to cooperate with and assist the Company as requested by the Company
to provide documentation reflecting the Company’s sole and complete ownership of the Developments.
All expenses incident to the filing of such applications, the prosecution thereof and the conduct
of any such interference, litigation, or other matter will be borne by the Company. This Section 3
shall survive the termination of this Agreement.

     4. Subject to Section 5 below, I will not, either during my employment with the Company or at
any time thereafter, use, disclose or authorize, or assist anyone else to disclose or use or make
known for anyone’s benefit, any information, knowledge or data of the Company or any supplier,
client, or customer of the Company in any way acquired by me during or as a result of my employment
with the Company, whether before or after the date of this Agreement, (hereinafter the
“Confidential Information”). Such Confidential Information shall include the following:

     (a) Information of a business nature, including financial information and
information about sales, marketing, purchasing, prices, costs, suppliers and
customers;

     (b) Information pertaining to future developments, including research and
development, new product ideas and developments, strategic plans, and future
marketing and merchandising plans and ideas;

     (c) Information and material that relate to the Company’s manufacturing
methods, machines, articles of manufacture, compositions, inventions, engineering
services, technological developments, “know-how”, purchasing, accounting,
merchandising and licensing;

     (d) Trade secrets of the Company, including information and material with
respect to the design, construction, capacity or method of operation of the
Company’s equipment or products and information regarding the Company’s customers
and sales or marketing efforts and strategies;

     (e) Software in various stages of development (including source code, object
code, documentation, diagrams, flow charts), designs, drawings, specifications,
models, data and customer information; and

     (f) Any information of the type described above that the Company obtained from
another party and that the Company treats as proprietary or designates as
confidential, whether or not owned or developed by the Company.

2

 

     5. It is understood and agreed that the term “Confidential Information” shall not include
information that is generally available to the public, other than through any act or omission on my
part in breach of this Agreement.

     6. I acknowledge that: (a) such Confidential Information derives its value to the Company
from the fact that it is maintained as confidential and secret and is not readily available to the
general public or the Company’s competitors; (b) the Company undertakes great effort and sufficient
measures to maintain the confidentiality and secrecy of such information; and (c) such Confidential
Information is protected and covered by this Agreement regardless of whether or not such
Confidential Information is a “trade secret” under applicable law. I further acknowledge and agree
that the obligations and restrictions herein are reasonable and necessary to protect the Company’s
legitimate business interests, and that this Agreement does not impose an unreasonable or undue
burden on me and will not prevent me from earning a livelihood subsequent to the termination of my
employment with the Company. I agree to comply with each of the restrictive covenants contained in
this Agreement in accordance with its terms, and will not, and I hereby agree to waive and release
any right or claim to, challenge the reasonableness, validity or enforceability of any of the
restrictive covenants contained in this Agreement.

     7. I will deliver to the Company promptly upon request, and, in any event, on the date of
termination of my employment, all documents, copies thereof and other materials in my possession,
including any notes or memoranda prepared by me, pertaining to the business of the Company, whether
or not including any Confidential Information, and thereafter will promptly deliver to the Company
any documents and copies thereof pertaining to the business of the Company that come into my
possession.

     8. I represent that I have no agreements with or obligations to others with respect to any
innovations, developments, or information that could conflict with any of the foregoing.

     9. The invalidity or unenforceability of any provision of this Agreement, whether in whole or
in part, shall not in any way affect the validity and/or enforceability of any of the other
provisions of this Agreement. Any invalid or unenforceable provision or portion thereof shall be
deemed severable to the extent of any such invalidity or unenforceability. The restrictions
contained in this Agreement are reasonable for the purpose of preserving for the Company and its
affiliates the proprietary rights, intangible business value and Confidential Information of the
Company and its affiliates. If it is determined by a court of competent jurisdiction that any of
the restrictions or language in this Agreement is for any reason invalid or unenforceable, the
parties desire and agree that the court revise any such restrictions or language so as to render it
valid and enforceable to the fullest extent allowed by law. If any restriction or language in this
Agreement is for any reason invalid or unenforceable and cannot by law be revised so as to render
it valid and enforceable, then the parties desire and agree that the court strike only the invalid
and unenforceable language and enforce the balance of this Agreement to the fullest extent allowed
by law.

     10. I agree that any breach or threatened breach by me of any of the provisions in this
Agreement cannot be remedied solely by the recovery of damages. I expressly agree that upon a

3

 

threatened breach or violation of any of such provisions, the Company, in addition to all other
remedies, shall be entitled as a matter of right, and without posting a bond or other security, to
emergency, preliminary, and permanent injunctive relief in any court of competent jurisdiction.
Nothing herein, however, shall be construed as prohibiting the Company from pursuing, in concert
with an injunction or otherwise, any other remedies available at law or in equity for such breach
or threatened breach, including the recovery of damages.

     11. This Agreement is made in consideration of my continued employment by the Company. I
understand that the Company is under no obligation to employ me for any duration and that my
employment with the Company is terminable at the will of the Company or at my will at any time and
for any reason and without notice.

     12. Upon termination of my employment with the Company, I shall, if requested by the Company,
reaffirm my recognition of the importance of maintaining the confidentiality of the Company’s
Confidential Information and reaffirm all of my obligations set forth herein. The provisions,
obligations, and restrictions in this Agreement shall survive the termination of my employment, and
will be binding on me whether or not the Company requests a re-affirmation.

     13. This Agreement, my Employment Agreement with the Company (the “Employment Agreement”), the
Non-Competition Agreement (as defined in the Employment Agreement) and the Change in Control
Agreement (as defined in the Employment Agreement) represent the full and complete understanding
between me and the Company with respect to the subject matter hereof and supersede all prior
representations and understandings, whether oral or written regarding such subject matter. This
Agreement may not be changed, modified, released, discharged, abandoned or otherwise terminated, in
whole or in part, except by an instrument in writing signed by both the Company and me. My
obligations under this Agreement shall be binding upon my heirs, executors, administrators, or
other legal representatives or assigns, and this Agreement shall inure to the benefit of the
Company, its successors, and assigns.

     14. This Agreement shall be governed by and construed and enforced in accordance with the laws
of the State of Delaware without reference to principles of conflict of laws. Any judicial action
commenced relating in any way to this Agreement including the enforcement, interpretation, or
performance of this Agreement, shall be commenced and maintained in a court of competent
jurisdiction located in Maricopa County, Arizona. In any action to enforce this Agreement, the
prevailing party shall be entitled to recover its litigation costs, including its attorneys’ fees.
The parties hereby waive and relinquish any right to a jury trial and agree that any dispute shall
be heard and resolved by a court and without a jury. The parties further agree that the dispute
resolution, including any discovery, shall be accelerated and expedited to the extent possible.
Each party’s agreements in this Section 14 are made in consideration of the other party’s
agreements in this Section 14, as well as in other portions of this Agreement.

4

 

     15. As used in this Agreement, words such as “herein,” “hereinafter,” “hereby” and
“hereunder,” and the words of like import refer to this Agreement, unless the context requires
otherwise. The words “include,” “includes” and “including” shall be deemed to be followed by the
phrase “without limitation”.

	 	 	 
	EMPLOYER:	 	EMPLOYEE:
	 
	 	 
	First Solar, Inc.

	 	James R. Miller
	 
	 	 
	By: /s/ Michael J. Ahearn

	 	/s/ James R. Miller
	Its: CEO
	 	 
	Printed Name: Michael J. Ahearn
	 	 

5

 

CHANGE IN CONTROL SEVERANCE AGREEMENT

          This CHANGE IN CONTROL SEVERANCE AGREEMENT (this “Agreement”), dated as of March 31,
2008, between First Solar, Inc., a Delaware corporation (the “Company”), and James R.
Miller (the “Executive”).

RECITALS:

          WHEREAS the Executive is a skilled and dedicated employee of the Company who has important
management responsibilities and talents that benefit the Company;

          WHEREAS the Board of Directors of the Company (the “Board”) considers it essential to
the best interests of the Company and its stockholders to assure that the Company and its
Subsidiaries (as defined below) will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change in Control (as defined below);
and

          WHEREAS the Board believes that it is imperative to diminish the distraction of the Executive
by virtue of the uncertainties and risks created by the circumstances surrounding a Change in
Control and to ensure the Executive’s full attention to the Company and its Subsidiaries during
such a period of uncertainty.

          AGREEMENT:

          NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained
herein, and intending to be legally bound hereby, the parties hereto agree as follows:

          SECTION 1. Definitions. For purposes of this Agreement, the following terms shall
have the meanings set forth below:

          (a) “280G Gross-Up Payment” shall have the meaning set forth in Section 5(a).

          (b) “Accounting Firm” shall have the meaning set forth in Section 5(b).

          (c) “Accrued Rights” shall have the meaning set forth in Section 4(a)(iv).

          (d) “Affiliate(s)” means, with respect to any specified Person, any other Person
that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is
under common control with, such specified Person.

          (e) “Annual Base Salary” shall mean the greater of the Executive’s annual rate of
base salary in effect (i) immediately prior to the Change in Control Date and (ii) immediately
prior to the Termination Date.

          (f) “Annual Bonus” shall mean the target annual cash bonus the Executive is eligible
to earn (assuming one hundred percent (100%) fulfillment of all elements of the formula

6

 

under which such bonus would have been calculated) for the year in which the Termination Date
occurs.

          (g) “Bonus Amount” means, as of the Termination Date, the greater of (i) the Annual
Bonus and (ii) the average of the annual cash bonuses payable to the Executive in respect of the
three (3) calendar years immediately preceding the calendar year that includes the Termination Date
or, if the Executive has not been employed for three (3) full calendar years preceding the calendar
year that includes the Termination Date, the average of the annual cash bonuses payable to the
Executive for the number of full calendar years prior to the Termination Date that he has been
employed.

          (h) “Cause” means the occurrence of any one of the following: (i) the Executive is
convicted of, or pleads guilty or nolo contendere to, (A) a misdemeanor involving moral turpitude
or misappropriation of the assets of the Company or a Subsidiary or (B) any felony (or the
equivalent of such a misdemeanor or felony in a jurisdiction outside of the United States); (ii)
the Executive commits one or more acts or omissions constituting gross negligence, fraud or other
gross misconduct that the Company reasonably and in good faith determines has a materially
detrimental effect on the Company; (iii) the Executive continually and willfully fails, for at
least fourteen (14) days following written notice from the Company, to perform substantially the
Executive’s employment duties (other than as a result of incapacity due to physical or mental
illness or after delivery by the Executive of a Notice of Termination for Good Reason); or (iv) the
Executive commits a gross violation of any of the Company’s material policies (including the
Company’s Code of Business Conduct and Ethics, as in effect from time to time) that the Company
reasonably and in good faith determines is materially detrimental to the best interests of the
Company. The termination of employment of the Executive for Cause shall not be effective unless
and until there has been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than a majority of the entire membership of the Board (excluding the
Executive) at a meeting of the Board called and held for such purpose (after reasonable notice is
provided to the Executive and the Executive is given an opportunity, together with counsel, to be
heard before the Board), finding that in the good faith opinion of the Board, the Executive is
guilty of the conduct described in clause (i), (ii), (iii) or (iv) above and specifying the
particulars thereof in detail.

          (i) “Change in Control” means the occurrence of any of the following:

               (i) individuals who, as of the Effective Date, were members of the Board (the “Incumbent
Directors”) cease for any reason to constitute at least a majority of the Board;
provided, however, that any individual becoming a member of the Board subsequent to
the Effective Date whose appointment or election, or nomination for election, by the Company’s
stockholders was approved by a vote of at least a majority of the Incumbent Directors shall be
considered as though such individual were an Incumbent Director, but excluding, for purposes of
this proviso, any such individual whose assumption of office after the Effective Date occurs as a
result of an actual or threatened proxy contest with respect to election or removal of directors or
other actual or threatened solicitation of proxies or consents by or on behalf of any “person” (as
such term is used in Section 13(d) of the Exchange Act) (each, a “Person”) other than the
Board or any Specified Shareholder;

7

 

               (ii) the consummation of (A) a merger, consolidation, statutory share exchange or similar
form of corporate transaction involving (1) the Company or (2) any of its Subsidiaries, but in the
case of this clause (2) only if Company Voting Securities (as defined below) are issued or issuable
in connection with such transaction or (B) a sale or other disposition of all or substantially all
the assets of the Company (each of the events referred to in clause (A) or (B) being hereinafter
referred to as a “Reorganization”), unless, immediately following such Reorganization, (x)
all or substantially all the individuals and entities who were the “beneficial owners” (as such
term is defined in Rule 13d-3 under the Exchange Act) of shares of the Company’s common stock or
other securities eligible to vote for the election of the Board outstanding immediately prior to
the consummation of such Reorganization (such securities, the “Company Voting Securities”)
beneficially own, directly or indirectly, more than 50% of the combined voting power of the then
outstanding voting securities of the corporation or other entity resulting from such Reorganization
(including a corporation or other entity that, as a result of such transaction, owns the Company or
all or substantially all the Company’s assets either directly or through one or more subsidiaries)
(the “Continuing Entity”) in substantially the same proportions as their ownership,
immediately prior to the consummation of such Reorganization, of the outstanding Company Voting
Securities (excluding any outstanding voting securities of the Continuing Entity that such
beneficial owners hold immediately following the consummation of such Reorganization as a result of
their ownership prior to such consummation of voting securities of any corporation or other entity
involved in or forming part of such Reorganization other than the Company or a Subsidiary), (y) no
Person (excluding (i) any employee benefit plan (or related trust) sponsored or maintained by the
Continuing Entity or any corporation or other entity controlled by the Continuing Entity and (ii)
any Specified Shareholder) beneficially owns, directly or indirectly, twenty percent (20%) or more
of the combined voting power of the then outstanding voting securities of the Continuing Entity and
(z) at least a majority of the members of the board of directors or other governing body of the
Continuing Entity were Incumbent Directors at the time of the execution of the definitive agreement
providing for such Reorganization or, in the absence of such an agreement, at the time at which
approval of the Board was obtained for such Reorganization;

               (iii) the stockholders of the Company approve a plan of complete liquidation or dissolution
of the Company, unless such liquidation or dissolution is part of a transaction or series of
transactions described in Section 1(i)(ii) that does not otherwise constitute a Change in Control;
or

               (iv) any Person, corporation or other entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Exchange Act) other than any Specified Shareholder becomes the beneficial owner,
directly or indirectly, of securities of the Company representing a percentage of the combined
voting power of the Company Voting Securities that is equal to or greater than the greater of (A)
twenty percent (20%) and (B) the percentage of the combined voting power of the Company Voting
Securities beneficially owned directly or indirectly by all the Specified Shareholders at such
time; provided, however, that for purposes of this Section 1(i)(iv) only (and not
for purposes of Sections 1(i)(i) through (iii)), the following acquisitions shall not constitute a
Change in Control: (1) any acquisition by the Company or any Subsidiary, (2) any acquisition by
any employee benefit plan (or related trust) sponsored or maintained by the Company or any
Subsidiary, (3) any acquisition by an underwriter temporarily holding such Company Voting
Securities pursuant to an offering of such securities and (4) any acquisition

8

 

pursuant to a Reorganization that does not constitute a Change in Control for purposes of
Section 1(i)(ii).

          (j) “Change in Control Date” means the date on which a Change in Control occurs.

          (k) “COBRA” shall have the meaning set forth in Section 4(a)(iii).

          (l) “Code” means the Internal Revenue Code of 1986, as amended from time to time, or
any successor statute thereto, and the regulations promulgated thereunder as in effect from time to
time.

          (m) “Company Voting Securities” shall have the meaning set forth in Section 1(i)(ii).

          (n) “Continuing Entity” shall have the meaning set forth in Section 1(i)(ii).

          (o) “Disability” shall have the meaning set forth in Section 4(b)(ii).

          (p) “Effective Date” shall have the meaning set forth in Section 2.

          (q) “Executive Tax Year” shall have the meaning set forth in Section 4(a)(iii).

          (r) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, or any successor statute thereto, and the regulations promulgated thereunder as in effect
from time to time.

          (s) “Excise Tax” means the excise tax imposed by Section 4999 of the Code, together
with any interest or penalties imposed with respect to such tax.

          (t) “Good Reason” means, without the Executive’s express written consent, the
occurrence of any one or more of the following:

               (i) any material reduction in the authority, duties or responsibilities held by the Executive
immediately prior to the Change in Control Date;

               (ii) any material reduction in the annual base salary or annual incentive opportunity of the
Executive as in effect immediately prior to the Change in Control Date;

               (iii) any change of the Executive’s principal place of employment to a location more than
fifty (50) miles from the Executive’s principal place of employment immediately prior to the Change
in Control Date;

               (iv) any failure of the Company to pay the Executive any compensation when due;

               (v) delivery by the Company or any Subsidiary of a written notice to the Executive of the
intent to terminate the Executive’s employment for any reason, other than

9

 

Cause, death or Disability, in each case in accordance with this Agreement, regardless of
whether such termination is intended to become effective during or after the Protection Period; or

               (vi) any failure by the Company to comply with and satisfy the requirements of Section 10(c).

          The Executive’s right to terminate employment for Good Reason shall not be affected by the
Executive’s incapacity due to physical or mental illness. A termination of employment by the
Executive for Good Reason for purposes of this Agreement shall be effectuated by giving the Company
written notice (“Notice of Termination for Good Reason”) of the termination setting forth
in reasonable detail the specific conduct of the Company that constitutes Good Reason and the
specific provisions of this Agreement on which the Executive relied, provided that such
notice must be delivered to the Company no later than ninety (90) days after the occurrence of the
event or events constituting Good Reason and the Company must be provided with at least thirty (30)
days following the delivery of such Notice of Termination for Good Reason to cure such event or
events. If such event or events are cured during such period, then the Executive will not be
permitted to terminate employment for Good Reason as the result of such event or events. If the
Company does not cure such event or events in such period, the termination of employment by the
Executive for Good Reason shall be effective on the thirtieth (30th) day following the
date when the Notice of Termination for Good Reason is given, unless the Company elects to treat
such termination as effective as of an earlier date; provided, however, that so
long as an event that constitutes Good Reason occurs during the Protection Period and the Executive
delivers the Notice of Termination for Good Reason within ninety (90) days following the occurrence
of such event, the Company is provided with at least thirty (30) days following the delivery of
such Notice of Termination for Good Reason to cure such event, and the Executive terminates his
employment as of the thirtieth (30th) day following the date when the Notice of
Termination for Good Reason is given (or as of an earlier date chosen by the Company), then for
purposes of the payments, benefits and other entitlements set forth herein, the termination of the
Executive’s employment pursuant thereto shall be deemed to occur during the Protection Period.

          (u) “Incumbent Directors” shall have the meaning set forth in Section 1(i)(i).

          (v) “Notice of Termination for Good Reason” shall have the meaning set forth in
Section 1(t).

          (w) “Payment” means any payment, benefit or distribution (or combination thereof) by
the Company, any of its Affiliates or any trust established by the Company or its Affiliates, to or
for the benefit of the Executive, whether paid, payable, distributed, distributable or provided
pursuant to this Agreement or otherwise, including any payment, benefit or other right that
constitutes a “parachute payment” within the meaning of Section 280G of the Code.

          (x) “Person” shall have the meaning set forth in Section 1(i)(i).

          (y) “Protection Period” means the period commencing on the Change in Control Date and
ending on the second anniversary thereof.

10

 

          (z) “Qualifying Termination” means any termination of the Executive’s employment (i)
by the Company, other than for Cause, death or Disability, that is effective (or with respect to
which the Executive is given written notice) during the Protection Period, (ii) by the Executive
for Good Reason during the Protection Period or (iii) by the Company that is effective prior to the
Change in Control Date, other than for Cause, death or Disability, at the request or direction of a
third party who took action that caused, or is involved in or a party to, a Change in Control.

          (aa) “Release” shall have the meaning set forth in Section 4(a)(vi).

          (bb) “Release Effective Date” shall have the meaning set forth in Section 4(a)(i).

          (cc) “Reorganization” shall have the meaning set forth in Section 1(i)(ii).

          (dd) “Safe Harbor Amount” shall have the meaning set forth in Section 5(a).

          (ee) “Specified Shareholder” shall mean any of (i) the Estate of John T. Walton and
its beneficiaries, (ii) JCL Holdings, LLC and its beneficiaries, (iii) Michael J. Ahearn and any of
his immediate family, (iv) any Person directly or indirectly controlled by any of the foregoing and
(v) any trust for the direct or indirect benefit of any of the foregoing.

          (ff) “Subsidiary” means any entity in which the Company, directly or indirectly,
possesses 50% or more of the total combined voting power of all classes of stock.

          (gg) “Successor” shall have the meaning set forth in Section 10(c).

          (hh) “Termination Date” means the date on which the termination of the Executive’s
employment, in accordance with the terms of this Agreement, is effective, provided that in
the event of a Qualifying Termination described in clause (iii) of the definition thereof, the
Termination Date shall be deemed to be the Change in Control Date.

          (ii) “Underpayment” shall have the meaning set forth in Section 5(b).

          SECTION 2. Effectiveness and Term. This Agreement shall become effective as of the
date hereof (the “Effective Date”) and shall remain in effect until the third
(3rd) anniversary of the Effective Date, except that, beginning on the second
anniversary of the Effective Date and on each anniversary thereafter, the term of this Agreement
shall be automatically extended for an additional one-year period, unless the Company or the
Executive provides the other party with sixty (60) days’ prior written notice before the applicable
anniversary that the term of this Agreement shall not be so extended. Notwithstanding the
foregoing, in the event of a Change in Control during the term of this Agreement (whether the
original term or the term as extended), this Agreement shall not thereafter terminate, and the term
hereof shall be extended, until the Company and its Subsidiaries have performed all their
obligations hereunder with no future performance being possible; provided, however,
that this Agreement shall only be effective with respect to the first Change in Control that occurs
during the term of this Agreement.

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          SECTION 3. Impact of a Change in Control on Equity Compensation Awards. Effective as
of the Change in Control Date, notwithstanding any provision to the contrary, other than any such
provision that expressly provides that this Section 3 of this Agreement does not apply (which
provision shall be given full force and effect), in any of the Company’s equity-based,
equity-related or other long-term incentive compensation plans, practices, policies and programs
(including the Company’s 2003 Unit Option Plan and the Company’s 2006 Omnibus Incentive
Compensation Plan) or any award agreements thereunder, (a) all outstanding stock options, stock
appreciation rights and similar rights and awards then held by the Executive that are unexercisable
or otherwise unvested shall automatically become fully vested and immediately exercisable, as the
case may be, (b) all outstanding equity-based, equity-related and other long-term incentive awards
then held by the Executive that are subject to performance-based vesting criteria shall
automatically become fully vested and earned at a deemed performance level equal to the maximum
performance level with respect to such awards and (c) all other outstanding equity-based,
equity-related and long-term incentive awards, to the extent not covered by the foregoing clause
(a) or (b), then held by the Executive that are unvested or subject to restrictions or forfeiture
shall automatically become fully vested and all restrictions and forfeiture provisions related
thereto shall lapse.

          SECTION 4. Termination of Employment.

          (a) Qualifying Termination. In the event of a Qualifying Termination, the Executive
shall be entitled, subject to Section 4(a)(vi), to the following payments and benefits:

               (i) Severance Pay. The Company shall pay the Executive an amount equal to two (2)
times the sum of (A) the Executive’s Annual Base Salary (without regard to any reduction giving
rise to Good Reason) and (B) the Bonus Amount, in a lump-sum cash payment payable on the tenth
(10th) business day after the Release described in Section 4(a)(vi) becomes effective
and irrevocable (the “Release Effective Date”); provided, however, that
such amount shall be paid in lieu of, and the Executive hereby waives the right to receive, any
other cash severance payment the Executive is otherwise eligible to receive upon termination of
employment under any severance plan, practice, policy or program of the Company or any Subsidiary
or under any agreement between the Company and the Executive and, in the event of a Qualifying
Termination described in clause (iii) of the definition thereof, the severance payment payable
pursuant to this Section 4(a)(i) shall be reduced by the amount of any other such severance
payments previously paid to the Executive.

               (ii) Prorated Annual Bonus. The Company shall pay the Executive an amount equal to
the product of (A) the Executive’s Annual Bonus and (B) a fraction, the numerator of which is the
number of days in the Company’s fiscal year in which the Termination Date occurs through the
Termination Date, and the denominator of which is three hundred sixty-five (365), in a lump-sum
payment payable on the tenth (10th) business day after the Release Effective Date.

               (iii) Continued Welfare Benefits. The Company shall, at its option, either (A)
continue to provide medical, life insurance, accident insurance and disability benefits to the
Executive and the Executive’s spouse and dependents at least equal to the benefits provided by the
Company and its Subsidiaries generally to other active peer executives of the Company and

12

 

its Subsidiaries or (B) pay for the Executive’s continued group health plan coverage under the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), in the case
of each of clauses (A) and (B), for a period of time commencing on the Termination Date and ending
on the date that is eighteen (18) months after the Termination Date; provided,
however, that if the Executive becomes reemployed with another employer and is eligible to
receive medical or other welfare benefits under another employer-provided plan, the medical and
other welfare benefits described herein shall be secondary to those provided under such other plan
during such applicable period of eligibility. Any provision of benefits pursuant to this Section
4(a)(iii) in one (1) tax year of the Executive (the “Executive Tax Year”) shall not affect
the amount of such benefits to be provided in any other Executive Tax Year. The right to such
benefits shall not be subject to liquidation or exchange for any other benefit.

               (iv) Accrued Rights. The Executive shall be entitled to (A) payments of any unpaid
base salary, annual bonus or other amount earned or accrued through the Termination Date and
reimbursement of any unreimbursed business expenses incurred through the Termination Date, (B) any
payments explicitly set forth in any other benefit plans, practices, policies and programs in which
the Executive participates and (C) any payments the Company is or becomes obligated to make
pursuant to Sections 5, 7 and 12 (the rights to such payments, the “Accrued Rights”). The
Accrued Rights payable pursuant to Section 4(a)(iv)(A) and Section 4(a)(iv)(B) shall be payable on
their respective otherwise scheduled payment dates, provided that any amounts payable in
respect of accrued but unused vacation shall be paid in a lump sum within 15 days following the
Termination Date. The Accrued Rights payable pursuant to Section 4(a)(iv)(C) shall be payable at
the times set forth in the applicable Section hereof.

               (v) Outplacement. The Company shall reimburse the Executive for individual
outplacement services to be provided by a firm of the Executive’s choice or, at the Executive’s
election, provide the Executive with the use of office space, office supplies and secretarial
assistance satisfactory to the Executive. The aggregate expenditures of the Company pursuant to
this paragraph shall not exceed Twenty Thousand and 00/100 Dollars ($20,000). Notwithstanding
anything to the contrary in this Agreement, the outplacement benefits under this Section 4(a)(v)
shall be provided to the Executive for no longer than the one-year period following the Termination
Date, and the amount of any outplacement benefits or office space, office supplies and secretarial
assistance provided to the Executive in any Executive Tax Year shall not affect the amount of any
such outplacement benefits or office space, office supplies and secretarial assistance provided to
the Executive in any other Executive Tax Year.

               (vi) Release of Claims. Notwithstanding any provision of this Agreement to the
contrary, unless on or prior to the tenth (10th) business day prior to March 15 of the
year following the year in which the Termination Date occurs, the Executive has executed and
delivered a Separation Agreement and Release (the “Release”) substantially in the form of
Exhibit A hereto and such Release has become effective and irrevocable in accordance with its
terms, (A) no payments shall be paid or made available to the Executive under Section 4(a)(i) or
4(a)(ii), (B) the Company shall be relieved of all obligations to provide or make available any
further benefits to the Executive pursuant to Section 4(a)(iii) and 4(a)(v) and (C) the Executive
shall be required to repay the Company, in cash, within five business days after written demand is
made therefor by the Company, an amount equal to the value of any benefits received by the
Executive pursuant to Section 4(a)(iii) and 4(a)(v) prior to such date.

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          (b) Termination on Account of Death or Disability; Non-Qualifying Termination.

               (i) The Executive’s employment shall terminate automatically upon the Executive’s death or
Disability. In the event of any termination of Executive’s employment other than a Qualifying
Termination, the Executive shall not be entitled to any additional payments or benefits from the
Company under this Agreement, other than payments or benefits with respect to the Accrued Rights.

               (ii) For purposes of this Agreement, the Executive shall be deemed to have a
“Disability” in the event of the Executive’s absence for a period of 180 consecutive
business days as a result of incapacity due to a physical or mental condition, illness or injury
that is determined to be total and permanent by a physician mutually acceptable to the Company and
the Executive or the Executive’s legal representative (such acceptance not to be unreasonably
withheld) after such physician has completed an examination of the Executive. The Executive agrees
to make himself available for such examination upon the reasonable request of the Company, and the
Company shall be responsible for the cost of such examination.

          SECTION 5. Certain Additional Payments by the Company.

          (a) Notwithstanding anything in this Agreement to the contrary and except as set forth below,
in the event it shall be determined that any Payment that is paid or payable during the term of
this Agreement would be subject to the Excise Tax, the Executive shall be entitled to receive an
additional payment (a “280G Gross-Up Payment”) in an amount such that, after payment by the
Executive of all taxes (and any interest or penalties imposed with respect to such taxes),
including any income and employment taxes and Excise Taxes imposed upon the 280G Gross-Up Payment,
the Executive retains an amount of the 280G Gross-Up Payment equal to the Excise Tax imposed upon
such Payments. The Company’s obligation to make 280G Gross-Up Payments under this Section 5 shall
not be conditioned upon the Executive’s termination of employment and shall survive and apply after
the Executive’s termination of employment. Notwithstanding the foregoing provisions of this
Section 5(a), if it shall be determined that the Executive is entitled to a 280G Gross-Up Payment,
but that the Payments do not exceed one hundred ten percent (110%) of the greatest amount that
could be paid to the Executive without giving rise to any Excise Tax (the “Safe Harbor
Amount”), then no 280G Gross-Up Payment shall be made to the Executive and the amounts payable
under this Agreement shall be reduced so that the Payments, in the aggregate, are reduced to the
Safe Harbor Amount. If such a reduction is necessary, the Payments shall be reduced in the
following order: (i) the Payments payable under Section 4(a)(i), (ii) the Payments payable under
Section 4(a)(ii), (iii) any other cash Payments, (iv) the Payments payable under Section 4(a)(iii)
and (v) the accelerated vesting under Section 3.

          (b) Subject to the provisions of Section 5(c), all determinations required to be made under
this Section 5, including whether and when a 280G Gross-Up Payment is required, the amount of such
280G Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall
be made in accordance with the terms of this Section 5 by a nationally recognized certified public
accounting firm that shall be designated by the Executive (the “Accounting Firm”). The
Accounting Firm shall provide detailed supporting calculations both to

14

 

the Company and the Executive within fifteen (15) business days of the receipt of notice from
the Executive that there has been a Payment or such earlier time as is requested by the Company.
For purposes of determining the amount of any 280G Gross-Up Payment, the Executive shall be deemed
to pay Federal income tax at the highest marginal rate applicable to individuals in the calendar
year in which any such 280G Gross-Up Payment is to be made and deemed to pay state and local income
taxes at the highest marginal rates applicable to individuals in the state or locality of the
Executive’s residence or place of employment in the calendar year in which any such 280G Gross-Up
Payment is to be made, net of the maximum reduction in Federal income taxes that can be obtained
from deduction of state and local taxes, taking into account limitations applicable to individuals
subject to Federal income tax at the highest marginal rate. All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any 280G Gross-Up Payment, as determined
pursuant to this Section 5, shall be paid by the Company to the Executive within five (5) business
days of the receipt of the Accounting Firm’s determination. If the Accounting Firm determines that
no Excise Tax is payable by the Executive, it shall so indicate to the Executive in writing. Any
determination by the Accounting Firm shall be binding upon the Company and the Executive. As a
result of the uncertainty in the application of Section 4999 of the Code, at the time of the
initial determination by the Accounting Firm hereunder, it is possible that 280G Gross-Up Payments
that will not have been made by the Company should have been made (an “Underpayment”),
consistent with the calculations required to be made hereunder. In the event the Company exhausts
its remedies pursuant to Section 5(c) and the Executive thereafter is required to make a payment of
any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has
occurred and any such Underpayment shall be paid by the Company to the Executive within five (5)
business days of the receipt of the Accounting Firm’s determination.

          (c) The Executive shall notify the Company in writing of any written claim by the Internal
Revenue Service that, if successful, would require the payment by the Company of a 280G Gross-Up
Payment. Such notification shall be given as soon as practicable, but no later than ten (10)
business days after the Executive is informed in writing of such claim. Failure to give timely
notice shall not prejudice the Executive’s right to 280G Gross-Up Payments and rights of indemnity
under this Section 5. The Executive shall apprise the Company of the nature of such claim and the
date on which such claim is requested to be paid. The Executive shall not pay such claim prior to
the expiration of the thirty (30)-day period following the date on which the Executive gives such
notice to the Company (or such shorter period ending on the date that any payment of taxes with
respect to such claim is due). If the Company notifies the Executive in writing prior to the
expiration of such period that the Company desires to contest such claim, the Executive shall: (i)
give the Company any information reasonably requested by the Company relating to such claim, (ii)
take such action in connection with contesting such claim as the Company shall reasonably request
in writing from time to time, including accepting legal representation with respect to such claim
by an attorney reasonably selected by the Company, (iii) cooperate with the Company in good faith
in order effectively to contest such claim and (iv) permit the Company to participate in any
proceedings relating to such claim; provided, however, that the Company shall bear
and pay directly all costs and expenses (including additional income taxes, interest and penalties)
incurred in connection with such contest, and shall indemnify and hold the Executive harmless, on
an after-tax basis, for any Excise Tax or income tax (including interest or penalties) imposed as a
result of such representation and payment of costs and expenses. Without limitation on the
foregoing provisions of this Section 5(c), the Company shall

15

 

control all proceedings taken in connection with such contest, and, at its sole discretion,
may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with
the applicable taxing authority in respect of such claim and may, at its sole discretion, either
pay the tax claim on behalf of the Executive and direct the Executive to sue for a refund or
contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to
a determination before any administrative tribunal, in a court of initial jurisdiction and in one
(1) or more appellate courts, as the Company shall determine; provided, however,
that (A) if the Company pays the tax claim on behalf of the Executive and directs the Executive to
sue for a refund, the Company shall indemnify and hold the Executive harmless, on an after-tax
basis, from any Excise Tax or income tax (including interest or penalties) imposed with respect to
such payment and (B) if such contest results in any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect to which such
contested amount is claimed to be due, such extension must be limited solely to such contested
amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect
to which the 280G Gross-Up Payment would be payable hereunder, and the Executive shall be entitled
to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or
any other taxing authority.

          (d) If, after the payment by the Company of any tax claim pursuant to Section 5(c), the
Executive becomes entitled to receive any refund with respect to such claim, the Executive shall
(subject to the Company’s complying with the requirements of Section 5(c)) promptly pay to the
Company the amount of such refund received (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the payment by the Company of any tax claim pursuant to
Section 5(c), a determination is made that the Executive shall not be entitled to any refund with
respect to such claim and the Company does not notify the Executive in writing of its intent to
contest such denial of refund prior to the expiration of the thirty (30)-day period after such
determination, then the amount the Company paid in respect of such claim shall offset, to the
extent thereof, the amount of 280G Gross-Up Payment required to be paid.

          (e) Notwithstanding anything to the contrary in this Agreement, (i) in no event shall any tax
gross-up payments be made by the Company to the Executive under this Section 5 after the end of the
Executive Tax Year following the Executive Tax Year in which the Executive remits the taxes for
which such tax gross-up payment is required to be made under this Section 5, and (ii) no other
payments will be made by the Company to the Executive under this Section 5 with respect to any
audit or litigation relating to any 280G Gross-Up Payment or Excise Tax or other taxes after the
Executive Tax Year following the Executive Tax Year in which the taxes that are the subject of the
audit or litigation referred to in this Section 5 are remitted to the taxing authority, or where,
as a result of such audit or litigation, no taxes are remitted, the end of the Executive Tax Year
following the Executive Tax Year in which the audit is completed or there is a final and
nonappealable settlement or other resolution of the litigation.

          SECTION 6. Section 409A.

          (a) It is the intention of the Company and the Executive that the provisions of this
Agreement comply with Section 409A of the Code, and all provisions of this Agreement shall be
construed and interpreted in a manner consistent with Section 409A of the Code.

16

 

          (b) Neither the Executive nor any creditor or beneficiary of the Executive shall have the
right to subject any deferred compensation (within the meaning of Section 409A of the Code) payable
under this Agreement or under any other plan, policy, arrangement or agreement of or with the
Company or any of its Affiliates (this Agreement and such other plans, policies, arrangements and
agreements, the “Company Plans”) to any anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment or garnishment. Except as permitted under Section 409A
of the Code, any deferred compensation (within the meaning of Section 409A of the Code) payable to
or for the benefit of the Executive under any Company Plan may not be reduced by, or offset
against, any amount owing by the Executive to the Company or any of its Affiliates.

          (c) If, at the time of the Executive’s separation from service (within the meaning of Section
409A of the Code), (i) the Executive shall be a specified employee (within the meaning of Section
409A of the Code and using the identification methodology selected by the Company from time to
time) and (ii) the Company shall make a good faith determination that an amount payable under a
Company Plan constitutes deferred compensation (within the meaning of Section 409A of the Code) the
payment of which is required to be delayed pursuant to the six-month delay rule set forth in
Section 409A of the Code in order to avoid taxes or penalties under Section 409A of the Code, then
the Company (or an Affiliate thereof, as applicable) shall not pay such amount on the otherwise
scheduled payment date but shall instead accumulate such amount and pay it, without interest, on
the first day of the seventh month following such separation from service.

          SECTION 7. No Mitigation or Offset; Enforcement of this Agreement.

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

          (b) The Company shall reimburse, upon the Executive’s demand, any and all reasonable legal
fees and expenses that the Executive may incur in good faith prior to the second anniversary of the
expiration of the term of this Agreement as a result of any contest, dispute or proceeding
(regardless of whether formal legal proceedings are ever commenced and regardless of the outcome
thereof and including all stages of any contest, dispute or proceeding) by the Company, the
Executive or any other Person with respect to the validity or enforceability of, or liability
under, any provision of this Agreement or any guarantee of performance thereof (including as a
result of any contest by the Executive regarding the amount of any payment owed pursuant to this
Agreement), and shall indemnify and hold the Executive harmless, on an after-tax basis, for any tax
(including Excise Tax) imposed on the Executive as a result of payment by the Company of such legal
fees and expenses. Notwithstanding anything to the contrary in this Agreement, any reimbursement
for any fees and expenses under this Section 7 shall be made promptly and no later than the end of
the Executive Tax Year following the Executive Tax Year

17

 

in which the fees or expenses are incurred. The amount of fees and expenses eligible for
reimbursement under this Section 7 during any Executive Tax Year shall not affect the fees and
expenses eligible for reimbursement in another Executive Tax Year. No right to reimbursement under
this Section 7 shall be subject to liquidation or exchange for any other payment or benefit.
Notwithstanding anything to the contrary in this Agreement, no tax gross up payments shall be made
by the Company under this Section 7 after the end of the Executive Tax Year following the Executive
Tax Year in which the related taxes are remitted.

          SECTION 8. Non-Exclusivity of Rights. Except as specifically provided in Section
4(a)(i), nothing in this Agreement shall prevent or limit the Executive’s continuing or future
participation in any plan, practice, policy or program provided by the Company or a Subsidiary for
which the Executive may qualify, nor shall anything in this Agreement limit or otherwise affect any
rights the Executive may have under any contract or agreement with the Company or a Subsidiary.
Vested benefits and other amounts that the Executive is otherwise entitled to receive under any
incentive compensation (including any equity award agreement), deferred compensation, retirement,
pension or other plan, practice, policy or program of, or any contract or agreement with, the
Company or a Subsidiary shall be payable in accordance with the terms of each such plan, practice,
policy, program, contract or agreement, as the case may be, except as explicitly modified by this
Agreement.

          SECTION 9. Withholding. The Company may deduct and withhold from any amounts payable
under this Agreement such Federal, state, local, foreign or other taxes as are required to be
withheld pursuant to any applicable law or regulation.

          SECTION 10. Assignment.

          (a) This Agreement is personal to the Executive and, without the prior written consent of the
Company, shall not be assignable by the Executive otherwise than by will or the laws of descent and
distribution, and any assignment in violation of this Agreement shall be void.

          (b) Notwithstanding the foregoing Section 10(a), this Agreement and all rights of the
Executive hereunder shall inure to the benefit of, and be enforceable by, the Executive’s personal
or legal representatives, executors, administrators, successors, heirs, distributees, devisees and
legatees. If the Executive should die while any amounts would still be payable to him hereunder if
he had continued to live, 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
or, should there be no such designee, to the Executive’s estate.

          (c) The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of the Company (a
“Successor”) to assume and agree to perform this Agreement in the same manner and to the
same extent that the Company would have been required to perform it if no such succession had taken
place. As used in this Agreement, (i) the term “Company” shall mean the Company as hereinbefore
defined and any Successor and any permitted assignee to which this Agreement is assigned and (ii)
the term “Board” shall mean the Board as hereinbefore

18

 

defined and the board of directors or equivalent governing body of any Successor and any
permitted assignee to which this Agreement is assigned.

          SECTION 11. Dispute Resolution.

          (a) Except as otherwise specifically provided herein, the Executive and the Company each
hereby irrevocably submit to the exclusive jurisdiction of the United States District Court of
Delaware (or, if subject matter jurisdiction in that court is not available, in any state court
located within the city of Wilmington, Delaware) over any dispute arising out of or relating to
this Agreement. Except as otherwise specifically provided in this Agreement, the parties undertake
not to commence any suit, action or proceeding arising out of or relating to this Agreement in a
forum other than a forum described in this Section 11(a); provided, however, that
nothing herein shall preclude the Company or the Executive from bringing any suit, action or
proceeding in any other court for the purposes of enforcing the provisions of this Section 11 or
enforcing any judgment obtained by the Company or the Executive.

          (b) The agreement of the parties to the forum described in Section 11(a) is independent of
the law that may be applied in any suit, action or proceeding and the parties agree to such forum
even if such forum may under applicable law choose to apply non-forum law. The parties hereby
waive, to the fullest extent permitted by applicable law, any objection that they now or hereafter
have to personal jurisdiction or to the laying of venue of any such suit, action or proceeding
brought in an applicable court described in Section 11(a), and the parties agree that they shall
not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from
any such court. The parties agree that, to the fullest extent permitted by applicable law, a final
and non-appealable judgment in any suit, action or proceeding brought in any applicable court
described in Section 11(a) shall be conclusive and binding upon the parties and may be enforced in
any other jurisdiction.

          (c) The parties hereto irrevocably consent to the service of any and all process in any suit,
action or proceeding arising out of or relating to this Agreement by the mailing of copies of such
process to such party at such party’s address specified in Section 18.

          (d) Each party hereto hereby waives, to the fullest extent permitted by applicable law, any
right it may have to a trial by jury in respect of any suit, action or proceeding arising out of or
relating to this Agreement. Each party hereto (i) certifies that no representative, agent or
attorney of any other party has represented, expressly or otherwise, that such party would not, in
the event of any suit, action or proceeding, seek to enforce the foregoing waiver and (ii)
acknowledges that it and the other parties hereto have been induced to enter into this Agreement
by, among other things, the mutual waiver and certifications in this Section 11(d).

          SECTION 12. Default in Payment. Any payment not made within ten (10) business days
after it is due in accordance with this Agreement shall thereafter bear interest, compounded
annually, at the prime rate in effect from time to time at Citibank, N.A., or any successor
thereto. Such interest shall be payable at the same time as the corresponding payment is payable.

19

 

          SECTION 13. GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED TO BE MADE IN THE STATE OF
DELAWARE, AND THE VALIDITY, INTERPRETATION, CONSTRUCTION AND PERFORMANCE OF THIS AGREEMENT IN ALL
RESPECTS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO ITS PRINCIPLES OF
CONFLICTS OF LAW.

          SECTION 14. Amendment; No Waiver. No provision of this Agreement may be amended,
modified, waived or discharged except by a written document signed by the Executive and a duly
authorized officer of the Company. The failure of a party to insist upon strict adherence to any
term of this Agreement on any occasion shall not be considered a waiver of such party’s rights or
deprive such party of the right thereafter to insist upon strict adherence to that term or any
other term of this Agreement. Subject to Section 1(t), no failure or delay by either party in
exercising any right or power hereunder will operate as a waiver thereof, nor will any single or
partial exercise of any such right or power, or any abandonment of any steps to enforce such right
or power, preclude any other or further exercise thereof or the exercise of any other right or
power. No agreements or representations, oral or otherwise, express or implied, with respect to
the subject matter hereof have been made by either party that are not set forth expressly in this
Agreement.

          SECTION 15. Severability. If any term or provision of this Agreement is invalid,
illegal or incapable of being enforced by any applicable law or public policy, all other conditions
and provisions of this Agreement shall nonetheless remain in full force and effect so long as the
economic and legal substance of the transactions contemplated by this Agreement is not affected in
any manner materially adverse to any party. Upon any such determination that any term or provision
is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good
faith to modify this Agreement so as to effect the original intent of the parties as closely as
possible in a mutually acceptable manner in order that the transactions contemplated hereby be
consummated as originally contemplated to the fullest extent possible.

          SECTION 16. Entire Agreement. This Agreement sets forth the entire agreement of the
parties hereto in respect of the subject matter contained herein and supersedes all prior
agreements, promises, covenants, arrangements, communications, representations or warranties,
whether oral or written, by any officer, employee or representative of any party hereto, and any
prior agreement of the parties hereto in respect of the subject matter contained herein is hereby
terminated and canceled. None of the parties shall be liable or bound to any other party in any
manner by any representations and warranties or covenants relating to such subject matter except as
specifically set forth herein.

          SECTION 17. Survival. The rights and obligations of the parties under the provisions
of this Agreement, including Sections 5, 7, 11, 12 and 13, shall survive and remain binding and
enforceable, notwithstanding the expiration of the Protection Period or the term of this Agreement,
the termination of the Executive’s employment with the Company for any reason or any settlement of
the financial rights and obligations arising from the Executive’s employment, to the extent
necessary to preserve the intended benefits of such provisions.

20

 

          SECTION 18. Notices. All notices or other communications required or permitted by
this Agreement will be made in writing and all such notices or communications will be deemed to
have been duly given when delivered or (unless otherwise specified) mailed by United States
certified or registered mail, return receipt requested, postage prepaid, addressed as follows:

	 	 	 
	If to the Company:

	 	First Solar, Inc.

4050 East Cotton Center Boulevard

Building 6, Suite 68

Phoenix, Arizona 85040

Attention: Chief Executive Officer

Fax: 602-414-9400
	 
	 	 
	If to the Executive:

	 	To the Executive’s then current address on file with the
Company

or to such other address as any party may have furnished to the other in writing in accordance
herewith, except that notices of change of address shall be effective only upon receipt.

          SECTION 19. Headings and References. The headings of this Agreement are inserted for
convenience only and neither constitute a part of this Agreement nor affect in any way the meaning
or interpretation of this Agreement. When a reference in this Agreement is made to a Section, such
reference shall be to a Section of this Agreement unless otherwise indicated.

          SECTION 20. Counterparts. This Agreement may be executed in one or more counterparts
(including via facsimile), each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument.

          SECTION 21. Interpretation. For purposes of this Agreement, the words “include” and
“including”, and variations thereof, shall not be deemed to be terms of limitation but rather shall
be deemed to be followed by the words “without limitation”. The term “or” is not exclusive. The
word “extent” in the phrase “to the extent” shall mean the degree to which a subject or other thing
extends, and such phrase shall not mean simply “if”.

          SECTION 22. Time of the Essence. The parties hereto acknowledge and agree that time
is of the essence in the performance of the obligations of this Agreement and that the parties
shall strictly adhere to any timelines herein.

21

 

     IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the date first
written above.

FIRST SOLAR, INC.,

By

                                                                                         

          Name: Michael J. Ahearn

          Title:
Chief Executive Officer and Chairman

EXECUTIVE:

                                                                                         

         James R. Miller

22

 

SEPARATION AGREEMENT AND RELEASE

I. Release. For good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the undersigned, with the intention of binding himself/herself, his/her heirs,
executors, administrators and assigns, does hereby release and forever discharge First Solar, Inc.,
a Delaware corporation (the “Company”), and its present and former officers, directors,
executives, agents, employees, affiliated companies, subsidiaries, successors, predecessors and
assigns (collectively, the “Released Parties”), from any and all claims, actions, causes of
action, demands, rights, damages, debts, accounts, suits, expenses, attorneys’ fees and liabilities
of whatever kind or nature in law, equity, or otherwise, whether now known or unknown
(collectively, the “Claims”), which the undersigned now has, owns or holds, or has at any
time heretofore had, owned or held against any Released Party, arising out of or in any way
connected with the undersigned’s employment relationship with the Company, its subsidiaries,
predecessors or affiliated entities, or the termination thereof, under any Federal, state or local
statute, rule, or regulation, or principle of common, tort or contract law, including but not
limited to, the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. §§ 201
et seq., the Family and Medical Leave Act of 1993, as amended (the
“FMLA”), 29 U.S.C. §§ 2601 et seq., Title VII of the Civil Rights Act of
1964, as amended, 42 U.S.C. §§ 2000e et seq., the Age
Discrimination in Employment Act of 1967, as amended, 29 U.S.C. §§ 621 et
seq., the Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §§
12101 et seq., the Worker Adjustment and Retraining Notification Act of 1988,
as amended, 29 U.S.C. §§ 2101 et seq., the Employee Retirement
Income Security Act of 1974, as amended, 29 U.S.C. §§ 1001 et seq.,
and any other equivalent or similar Federal, state, or local statute; provided,
however, that nothing herein shall release the Company (a) of its obligations under that
certain Change in Control Severance Agreement in which the undersigned participates and pursuant to
which this Separation Agreement and Release is being executed and delivered, (b) from any claims by
the undersigned arising out of any director and officer indemnification or insurance obligations in
favor of the undersigned and (c) from any director and officer indemnification obligations under
the Company’s by-laws. The undersigned understands that, as a result of executing this Separation
Agreement and Release, he/she will not have the right to assert that the Company or any other
Released Party unlawfully terminated his/her employment or violated any of his/her rights in
connection with his/her employment or otherwise.

The undersigned affirms that he/she has not filed or caused to be filed, and presently is not a
party to, any Claim, complaint or action against any Released Party in any forum or form and that
he/she knows of no facts which may lead to any Claim, complaint or action being filed against any
Released Party in any forum by the undersigned or by any agency, group, or class persons. The
undersigned further affirms that he/she has been paid and/or has received all leave (paid or
unpaid), compensation, wages, bonuses, commissions, and/or benefits to which he/she may be entitled
and that no other leave (paid or unpaid), compensation, wages, bonuses, commissions and/or benefits
are due to him/her from the Company and its subsidiaries, except as specifically provided in this
Separation Agreement and Release. The undersigned furthermore affirms that he/she has no known
workplace injuries or occupational diseases and has been provided and/or has not been denied any
leave requested under the FMLA. If any agency or court assumes jurisdiction of any such Claim,
complaint or action against any Released Party on behalf of the undersigned, the undersigned will
request such agency or court to withdraw the matter.

1

 

The undersigned further declares and represents that he/she has carefully read and fully
understands the terms of this Separation Agreement and Release and that he/she has been advised and
had the opportunity to seek the advice and assistance of counsel with regard to this Separation
Agreement and Release, that he/she may take up to and including 21 days from receipt of this
Separation Agreement and Release, to consider whether to sign this Separation Agreement and
Release, that he/she may revoke this Separation Agreement and Release within seven calendar days
after signing it by delivering to the Company written notification of revocation, and that he/she
knowingly and voluntarily, of his/her own free will, without any duress, being fully informed and
after due deliberate action, accepts the terms of and signs the same as his own free act.

II. Protected Rights. The Company and the undersigned agree that nothing in this
Separation Agreement and Release is intended to or shall be construed to affect, limit or otherwise
interfere with any non-waivable right of the undersigned under any Federal, state or local law,
including the right to file a charge or participate in an investigation or proceeding conducted by
the Equal Employment Opportunity Commission (“EEOC”) or to exercise any other right that
cannot be waived under applicable law. The undersigned is releasing, however, his/her right to any
monetary recovery or relief should the EEOC or any other agency pursue Claims on his/her behalf.
Further, should the EEOC or any other agency obtain monetary relief on his/her behalf, the
undersigned assigns to the Company all rights to such relief.

III. Equitable Remedies. The undersigned acknowledges that a violation by the undersigned
of any of the covenants contained in this Agreement would cause irreparable damage to the Company
and its subsidiaries in an amount that would be material but not readily ascertainable, and that
any remedy at law (including the payment of damages) would be inadequate. Accordingly, the
undersigned agrees that, notwithstanding any provision of this Separation Agreement and Release to
the contrary, the Company shall be entitled (without the necessity of showing economic loss or
other actual damage) to injunctive relief (including temporary restraining orders, preliminary
injunctions and/or permanent injunctions) in any court of competent jurisdiction for any actual or
threatened breach of any of the covenants set forth in this Agreement in addition to any other
legal or equitable remedies it may have.

IV. Return of Property. The undersigned shall return to the Company on or before [10 DAYS
AFTER TERMINATION DATE], all property of the Company in the undersigned’s possession or subject to
the undersigned’s control, including without limitation any laptop computers, keys, credit cards,
cellular telephones and files. The undersigned shall not alter any of the Company’s records or
computer files in any way after [TERMINATION DATE].

V. Severability. If any term or provision of this Separation Agreement and Release is
invalid, illegal or incapable of being enforced by any applicable law or public policy, all other
conditions and provisions of this Separation Agreement and Release shall nonetheless remain in full
force and effect so long as the economic and legal substance of the transactions contemplated by
this Separation Agreement and Release is not affected in any manner materially adverse to any
party.

VI. GOVERNING LAW. THIS SEPARATION AGREEMENT AND RELEASE SHALL BE DEEMED TO BE MADE IN
THE STATE OF DELAWARE, AND THE VALIDITY, INTERPRETATION, CONSTRUCTION AND PERFORMANCE OF THIS

2

 

AGREEMENT IN ALL RESPECTS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO
ITS PRINCIPLES OF CONFLICTS OF LAW.

Effective on the eighth calendar day following the date set forth below.

FIRST SOLAR, INC.,

By

                                        

        Name:

        Title:

EMPLOYEE,

                                        

        [NAME]

Date

Signed:                                        

3ex101.htm

    Exhibit
10.1

     

    MANAGEMENT
SERVICES AGREEMENT

    

    

    

    THIS MANAGEMENT SERVICES
AGREEMENT (the "Agreement") is
entered into as of April 12, 2008 ("Commencement Date")
by and between MJM BUSINESS
ENTERPRISES, INC., a Florida corporation ("Manager"), with its
principal place of business at 7800 West Oakland Park Blvd., Sunrise, Florida
33351 and PRIMACARE HEALTH
SERVICES, INC., a Florida corporation ("Company"), with its
principal place of business at 2055 South Highway 1, Vero Beach, Florida
32960.

    

    

    RECITALS:

    

    WHEREAS, Company was formed to
provide physician practice management services to Medical Resources, LLC, a
Florida limited liability company, and a provider of medical services (the
"Practice");

    

    WHEREAS, Manager is in the
business of providing health care management consulting services to medical
organizations and physician practices; and

    

    WHEREAS, Company seeks
assistance in managing its business operations and the non-medical activities of
the Practice and Manager agrees to provide Services (as defined herein) upon the
terms and conditions further set forth in this Agreement.

    

    NOW, THEREFORE, in
consideration of the premises, the mutual covenants and promises hereafter set
forth, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto do hereby contract and agree
as follows:

    

    ARTICLE
I

    

    MANAGER'S
DUTIES

    

    
      
        	
              	
                1.1 

              	
                Scope
      of Authority.
      Company hereby engages Manager to provide advice and
      assistance in the management of its business operations, specifically
      including the performance of services to the Practice as further detailed
      in Sections 1.1
      through 1.9 herein
      (“Services”).  The
      Services to be performed by Manager may change at the direction of the
      officers and directors of the Company.  Manager shall render all
      Services efficiently, in a good and faithful manner, in conformity with
      industry and association standards, and in accordance with all applicable
      laws, rules and regulations. Manager shall perform its Services in a
      manner reasonably appropriate and necessary to meet the day-to-day
      requirements of the business operations of Company and
      Practice.  Manager and Company acknowledge and agree that
      Manager shall undertake its performance of Services with autonomy and that
      Manager shall provide its analyses, findings, suggestions and
      recommendations directly to the President of the Company who has been
      authorized, empowered and directed by the board of directors of the
      Company to promptly make improvements in the business operations of the
      Company with advice from Manager. Notwithstanding the foregoing, Manager
      and all of its officers, directors, employees, agents and representatives
      are advisors only and shall not have any ultimate authority to make any
      decision or to take any action without approval of the appropriate officer
      or Board.  Neither Manager nor any of its officers, directors,
      employees, representatives or agents shall perform any licensed medical
      services as a part of the delivery of Services pursuant to this
      Agreement.

              

      

    

    

    
      	
              1.2

            	
              

                Billing
      and Collection. Manager agrees to provide advice and
      assistance to   Company management in managing medical
      billing operations. The Practice shall have the sole responsibility for
      rendering medical services and properly recording and coding services for
      the preparation of billing statements. Manager shall assist Company in
      managing the handling, processing and support of invoices to improve
      collection practices.

              

            

    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
 

    
      	
              1.3

            	
              

                Staffing.Manager
      shall provide advice and assistance to Company management in handling
      professional and non-professional staffing and human resources matters for
      Practice and Company.

              

            

    

    

    
      	
              1.4

            	
              Advertising
      and Marketing. Manager shall provide advice and assistance to
      Company management in advertising and marketing services for the Practice
      and Company. During the term of this Agreement, Company grants to Manager
      a revocable, non-assignable and nonexclusive worldwide license to use the
      Company's name and other service and trademarks (collectively the "Mark") solely
      in connection with the performance of this Agreement, subject to any
      conditions imposed by any third party that transfers or licenses the Mark
      to Company, and further subject to the following
    conditions:

            

    

    

    
      	
               
      

            	
              (A)

            	
              Permitted Uses. The
      license to use the Mark granted by this Agreement (the "License") may
      be exercised only for the purposes contemplated by this
      Agreement.

            

    

    

    
      	
               
      

            	
              (B)

            	
              Prohibited Use. Manager
      shall not do anything which derogates the ownership of, infringes upon or
      diminishes the value of the Mark. This Section shall survive the
      termination of this Agreement.

            

    

    

    
      	
               
      

            	
              (C)

            	
              

                Term and Termination.
      The License shall remain in effect until the expiration or
      termination of this Agreement. Upon termination of this Agreement for any
      reason, Manager agrees to immediately discontinue use of the Mark in any
      form (including related logos) and promptly return to Company any and all
      artwork, designs, materials or other property related to the
      Mark.

              

            

    

    

    
      	
               
      

            	
              (D)

            	
              No Transfer or
      Assignment. Company shall not transfer or sublicense the Mark,
      assign or transfer the License or contract, create, incur, assume or allow
      existing any claim, mortgage, lien, security interest or other charge or
      encumbrance with respect to the Mark or
License.

            

    

    

    
      	
              1.5

            	
              Financial
      Reporting. Manager shall provide advice and assistance to Company
      management concerning the financial reporting and the preparation of
      statements of financial information for Practice and Company. Company
      shall be solely responsible for coordinating and overseeing the regular
      financial review and/or audit of Company and/or Practice financials by an
      independent accounting firm and approving all financial
      disclosures.  Manager shall not be required to prepare any
      financial reports or statements or projections for public disclosure for
      any purpose.

            

    

    

    
      
        	
              	
                1.6 

              	
                Administrative.
      Manager
      shall provide advice and assistance to Company management concerning
      administrative activities including, but not limited to all clerical,
      accounting, bookkeeping, computer and information services, payroll,
      printing, postage and duplication services, medical transcribing services
      and any other ordinary, necessary or appropriate service for the operation
      of the Company and Practice.

              

      

    

    

    
      
        	
              	
                1.8 

              	
                Risk
      Management. Manager
      shall provide advice and assistance to Company regarding risks posed by
      the performance of the business operations of the Practice and Company,
      and shall assistance in negotiating rates and payments with respect to all
      forms of insurance reasonably required for the business operations of the
      Practice and Company. The amounts and types of insurance coverage to be
      carried by the Company and/or Practice shall be approved by the officers
      and directors of Company.

              

      

    

    

    
      
        	
              	
                1.9 

              	
                Quality
      Assurance. Manager
      shall provide advice and assistance to Company in evaluating, developing
      and maintaining the rendering of high quality professional medical
      services by Practice to its patient
base.

              

      

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    
      
        	
              	
                1.10 

              	
                Non-Solicitation.
      During
      the term of this Agreement and for a period of two (2) years following
      such termination, Manager shall not, without the prior written consent of
      Company, employ, hire or contract for services with any employee or former
      employee of Company, nor shall Manager solicit any such person to leave
      the employ of Company.  For the purposes of this section,
      "former employee" shall include any person who was employed by Company
      within eighteen (18) months prior to the termination or expiration of this
      Agreement. Notwithstanding the foregoing, this provision shall
      specifically except any officer, director, employee, representative or
      agent of Manager or any of its affiliates, whose employment initially
      originated with Manager or its affiliates and who may now or in the future
      directly or indirectly provide services to the Company pursuant to this
      Agreement.

              

      

    

    

    
      
        	
              	
                1.11 

              	
                Non-Competition.
      During
      the term of this Agreement and for a period of two (2) years following
      such termination, Manager, and its physicians then subject to the
      restrictive covenants under the applicable employment agreement with
      Manager, shall not engage in the provision of professional services that
      consist of medical services to patients, within the geographic area
      defined as follows: a radius of five (5) miles from any clinic managed or
      operated by Company or its affiliates as of the date of termination of
      this Agreement. Notwithstanding the foregoing, this provision shall
      specifically except any officer, director, employee, representative or
      agent of Manager or its affiliates,   whose employment
      initially originated with Manager or its affiliates, who may now or in the
      future directly or indirectly provide services to the Company pursuant to
      this Agreement.

              

      

    

    

    

    
      
        	
              	
                1.12 

              	
                Covenants.
      The
      covenants of Manager set forth in Sections 1.10 and 1.11 are separate and
      independent covenants for which valuable consideration has been paid by
      Company, the receipt, adequacy and sufficiency of which are acknowledged
      by Manager. Such covenants have been made to induce Company to enter into
      this Agreement, have been negotiated in good faith on an arms-length basis
      without undue influence, and do not significantly prevent Manager and its
      professional employees from engaging in the medical practice or limit
      their ability to earn a satisfactory income.  It is acknowledged
      and agreed that Company's remedy at law for any breach or attempted breach
      of such covenants would be inadequate and that Company shall be entitled
      to specific performance, injunction or other equitable relief in the event
      of any such breach or a tempted breach, in addition to any other remedies
      which might be available at law or in equity. In the event that the
      duration, scope or geographic area contemplated by such covenants are
      determined to be unenforceable by a court of competent jurisdiction, the
      parties agree that such duration, scope or geographic area shall be deemed
      to be reduced to the greatest scope, duration or geographic area which
      would be enforceable.

              

      

    

    

    
      	
              1.13

            	
              Confidentiality
      of Records.  Manager
      shall comply with all applicable federal, state and local laws and
      regulations relating to the records of the Practice and
      Company.  Any information obtained by Manager pursuant to the
      provisions of this Agreement shall be kept confidential; provided,
      however, that, subject to Article IX of this Agreement, applicable law
      (specifically including but not limited to the Health Insurance
      Portability and Accountability Act of 1996. 42 U.S.C. §1320(d) (“HIPAA”))
      and except for PHI (as defined in Article IX of this
      Agreement) and proprietary information of the Practice, Manager may
      disclose such information (i) within Manager’s organization for internal
      purposes only, (ii) to its legal counsel and accountants, (iii) as
      required in Manager’s credit relationships, and (iv) as required by law,
      or by requirements of managed care contracts and other third-party payor,
      or order of a court of competent jurisdiction.  Manager shall
      not utilize such information for any purpose other than to substantiate
      its activities hereunder or to defend claims against Manager arising out
      of such activities.

            

    

    

    
      	
              1.14

            	
              Control
      of Operations.  Manager shall only have that authority to
      perform those duties as expressly detailed in this
      Agreement.  Company shall at all times govern and exercise
      ultimate control over the Company and the delivery of Services to Company
      and Practice.  The parties acknowledge and agree that various
      aspects of the performance of Services hereunder shall be performed by
      third party subcontractors who may, with the approval of a Company
      officer, be hired and report to Manager, but whose authority shall be no
      greater than the authority of
Manager.

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    ARTICLE
II

    

    COMPANY
RESPONSIBILITIES

    

    

    
      	
              2.1

            	
              Confidentiality.  Company
      shall abide by all of the provisions of confidentiality set forth in this
      Agreement, including any
attachments.

            

    

    

    
      	
              2.2

            	
              IT
      Equipment and Services Company and any authorized licensees and/or
      subcontractors shall use the information technology (“IT”) equipment and
      services for the Practice and Company, and shall comply with the terms of
      any lease agreement covering such equipment and with all applicable local
      rules, ordinances and all standards of professional
  care.

            

    

    

    
      	
              2.3

            	
              Provision
      of Services. Practice shall be wholly responsible for providing
      professional medical services and for patient care. Company shall help
      Practice ensure that each professional employee is duly licensed and at
      all times meets all other regulatory and legal requirements and
      qualifications to enable such professional employee to work at the Company
      and to perform the professional services as assigned. Practice shall be
      solely and exclusively in control of all aspects of the practice of
      medicine and the delivery of professional services to
      patients.  The rendition of all services and the supervision of
      all personnel rendering professional services on behalf of the Company and
      Practice shall be the sole and exclusive responsibility of Practice and
      Company.

            

    

    

    
      	
              2.5

            	
              Professional
      Standards. Company shall ensure that all services provided by
      Practice and Company are delivered in accordance with the generally
      accepted professional standards for the practice of medicine in the
      community and in accordance with all applicable laws and regulations and
      rules of professional conduct. To the extent is it appropriate, Manager
      shall assist and cooperate with Company  in taking steps to
      resolve any utilization review or quality assurance issues or claims of
      professional negligence or misconduct which may arise in connection with
      Company or Practice activities.

            

    

    

    
      	
              2.6

            	
              Independent
      Contractor Relationship. Company and Manager are independent
      contracting parties. Nothing in this Agreement shall be construed to
      create a relationship of principal and agent, employer and employee,
      partners or joint venturers.  Neither party shall have any
      right, power or authority to act for or enter into binding agreements on
      behalf of the other party unless expressly authorized in this Agreement or
      in writing by an officer of the authorizing party.  Company
      shall have no claim under this Agreement or otherwise against Manager for
      workers compensation, unemployment compensation, sick leave, vacation pay,
      retirement benefits, Social Security benefits, or any other employee
      benefits related to Company’s business operations. Neither Manager nor its
      employees shall have any claim under this Agreement or otherwise against
      Company for workers compensation, unemployment compensation, sick leave,
      vacation pay, retirement benefits, Social Security benefits, or any other
      employee benefits related to Manager’s business operations. Company
      acknowledges that Manager has no other duties, obligations or liabilities
      to Company except as expressly provided in this
  Agreement.

            

    

    

    
      
        	
              	
                2.7 

              	
                Non-Solicitation.
      During
      the term of this Agreement and for a period of two (2) years following
      such termination, Company shall not, without the prior written consent of
      Manager, employ, hire or contract for services with any employee or former
      employee of Manager, nor shall Company solicit any such person to leave
      the employ of Manager.  For the purposes of this section,
      "former employee" shall include any person who was employed by Manager
      within eighteen (18) months prior to the termination or expiration of this
      Agreement.

              

      

    

    

    
      
        	
              	
                2.8 

              	
                Non-Competition.
      During
      the term of this Agreement and for a period of two (2) years following
      such termination, Company, and its physicians then subject to the
      restrictive covenants under the applicable employment agreement with
      Manager, shall not engage in the provision of professional services that
      consist of medical services to patients, within the geographic area
      defined as follows: a radius of five (5) miles from any clinic managed or
      operated by Manager as of the date of termination of this
      Agreement.

              

      

    

    

    
      
        	
              	
                2.9 

              	
                 Covenants.
      The
      covenants of Company set forth in Sections 2.7 and 2.8 are separate and
      independent covenants for which valuable consideration has been paid by
      Manager, the receipt, adequacy and sufficiency of which are acknowledged
      by Company. Such covenants have been made to induce Manager to enter into
      this Agreement, have been negotiated in good faith on an arms-length basis
      without undue influence, are responsible and do not significantly prevent
      Company and its professional employees from engaging in the medical
      practice or limit their ability to earn a satisfactory income. It is
      acknowledged and agreed that Manager's remedy at law for any breach or
      attempted breach of such covenants would be inadequate and that Manager
      shall be entitled to specific performance, injunction or other equitable
      relief in the event of any such breach or a tempted breach, in addition to
      any other remedies which might be available at law or in equity. In the
      event that the duration, scope or geographic area contemplated by such
      covenants are determined to be unenforceable by a court of competent
      jurisdiction, the parties agree that such duration, scope or geographic
      area shall be deemed to be reduced to the greatest scope, duration or
      geographic area which would be
enforceable.

              

      

    

    

    
      	
              2.10

            	
              Control
      of Operations.  Company shall at all times govern and
      exercise ultimate control over the Company and Practice and the activities
      of Manager and any related party providing Services pursuant to this
      Agreement.

            

    

     

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
 

    ARTICLE
III

    

    MANAGEMENT
FEE

    

    
      	
              3.1

            	
              Management
      Fee. Company and Manager acknowledge that Manager shall incur
      substantial costs and expenses in providing the Manager's duties. In
      consideration for the provision of the Manager's duties, Company agrees to
      pay to Manager a monthly service fee ("Management
      Fee") as further described and set forth in Attachment “A” (“Attachment
      A”).

            

    

    

    
      	
              3.2

            	
              Unconditional
      Payment of Management Fees. Management Fees shall be payable by
      Company without regard to the amount of professional fees charged by
      Company or whether such fees are actually
  collected.

            

    

    

    
      	
              3.3

            	
              Payment
      of Management Fees. Manager shall submit a monthly invoice to
      Company for payment of the Management Fee. Such Management Fee shall be
      paid by the twentieth (20) day of each
month.

            

    

    

    
      
        	
              	
                3.4 

              	
                Books
      and Records. Manager
      is entitled to access to the records of Company, including patient records
      on a confidential basis at any time, including during the term of this
      Agreement and for a reasonable period thereafter. Notwithstanding the
      foregoing, Manager shall have access to the patient records in the event
      it is named in any claim, litigation, arbitration or other legal
      proceeding involving one or more patients at any
  time.

              

      

    

    

    
      	
              3.5

            	
              No
      Patient Referrals.  The parties agree that the benefits
      to the Company hereunder do not require, are not payment for, and are not
      in any way contingent upon the admission, referral, or any other
      arrangement for the provision of any item or services offered by Manager,
      or any affiliate of Manager to the patients of the Practice in any
      facility or medical practice managed or operated by Manager or any such
      affiliate.  The parties to this Agreement agree that no payments
      made hereunder are made in return for, or to induce any person
      to:

            

    

     

    
      	
               
      

            	
              (a)

            	
              refer
      an individual to anyone for the furnishing or arranging for the furnishing
      of items or services for which payment may be made in whole or in part
      under any federally funded healthcare program, including the Medicare and
      Medicaid programs, or

            

    

     

    
      	
               
      

            	
              (b)

            	
              purchase,
      lease, order, or arrange for or recommend purchasing, leasing, or ordering
      any good, facility, service, or item for which payment may be made in
      whole or in part under any federally funded healthcare program, including
      the Medicare and Medicaid programs.

            

    

    

    ARTICLE
IV

    

    ACCOUNTS
RECEIVABLE

    

    
      	
               4.1

            	
              Deposit
      of Practice Revenue.  Company shall deposit all Practice
      revenue collected on behalf of Company in an account in the name of
      Company at a bank acceptable to Company (the "Holding
      Account"). Company, on behalf of itself and each of its physicians,
      agrees that any amounts received on or after the Commencement Date with
      respect to any accounts receivable or Practice revenue shall be deposited,
      in the form received, in the Holding Account immediately upon receipt by
      Company or any physician. Company, on behalf of itself and each of its
      physicians shall ensure that all third parties make payments of accounts
      receivable and Practice revenue directly to the Holding
      Account.  Company agrees to execute and deliver from time to
      time and at any time all such documents and instruments as may reasonably
      be required by Manager to effectuate the foregoing provisions in this
      Article 4 and to extend or amend such documents and instruments as may be
      required from time to time.

            

    

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
 

    

    ARTICLE
V

    

    TERM AND
TERMINATION

    

    
      	
               5.1

            	
              Term.  The
      initial term of this Agreement shall be for one (1) year, commencing on
      Commencement Date and ending on April 1, 2009 ("Term").  Following
      the Term, this Agreement shall renew for like terms unless a party gives
      the other party written notice of termination at least ninety (120) days
      before the expiration of the current
term.

            

    

    

    
      
        	
              	
                5.2 

              	
                Termination
      for Breach. This
      Agreement may be terminated prior to its expiration in the event of a
      material breach (other than those events described in Section 5.3 below) of
      this Agreement by a party. In such event, a party shall have the right to
      terminate this Agreement upon written notice stating the effective date of
      the termination if it (a) gives the breaching party written notice
      describing specifically the breach and the acts necessary to cure the
      breach, and (b) thirty (30) days have elapsed and such breach has not been
      cured.

              

      

    

    

    
      
        	
              	
                5.3 

              	
                Termination
      Due to Event. This
      Agreement may be terminated by a party upon written notice to the other
      party stating the effective date of the termination upon the occurrence of
      any of the following events:

              

      

    

     

    
      	 	 	 
	 	(A)   	Appointment
      of a receiver or trustee to manage a party's assets.
	 	 	 
	 	(B)	Assignment
      of a party's assets for the benefit of creditors.
	 	 	 
	
               
      

            	
              (C)

            	
              Filing
      of any petition in a bankruptcy or insolvency proceeding in respect to a
      party.

            

    

    

    
      	
               
      

            	
              (D)

            	
              Any
      act or omission which results in the termination of a party's professional
      liability insurance coverage.

            

    

    

    
      	
               
      

            	
              (E)

            	
              Commencement
      of any investigation which could lead to the revocation, suspension or
      probation of the professionals' license in
  Florida.

            

    

    

    
      	
               
      

            	
              (F)

            	
              Cessation
      of business operations substantially as they are conducted by Company or
      Manager.

            

    

    

    
      	
               
      

            	
              (G)

            	
              Any
      state or federal investigation, indictment or conviction against the
      Company, the Manager or any employee, professional or independent
      contractor of either party; or

            

    

    

    
      	
               
      

            	
              (H)

            	
              A
      change in the control of Manager.

            

    

    

    The party
in respect to whom the event occurred shall give notice to the other party
immediately of the occurrence of the event.

    

    
      	
              5.4

            	
              Termination
      Without Cause. Either party may terminate this Agreement without
      cause upon thirty (120) days' written notice to the other
      party.

            

    

    

    
      	
              5.5

            	
              Effect
      of Termination. Upon the termination of this Agreement for any
      reason, all rights and obligations of the parties under this Agreement
      shall cease except:

            

    

    

    (A)           Rights
and obligations that have accrued as of the date of termination;

    

    (B)           Rights
and obligations that expressly survive termination; and

    

    
      	
               
      

            	
              (C)

            	
              Any
      available right or remedy of either party against the other party for
      breach of this Agreement.

            

    

    

    
      	
              5.6

            	
              Legislative.
      Regulatory or Administrative Change. In the event there shall be a
      change in the Medicare or Medicaid statutes, state statutes, case laws,
      regulations or general instructions, the interpretation of any of the
      foregoing, the adoption of new federal or State legislation, or a change
      in any third party reimbursement system, any of which are reasonably
      likely to materially and adversely affect the manner in which either party
      may perform or be compensated for its Services under this Agreement or
      which shall make this Agreement unlawful, the parties shall immediately
      enter into good faith negotiations regarding a new service arrangement or
      basis for compensation for the services furnished pursuant to this
      Agreement that complies with the law, regulation or policy and that
      approximates as closely as possible the economic position of the parties
      prior to the change.  If the parties cannot come to an agreement
      on modifications to the Agreement to remedy the void or unenforceable
      term, either party may terminate this Agreement upon thirty (30) days'
      written notice to the other party.

            

    

    

    
      
        	
              	
                 5.8 

              	
                 Return
      and Use of Proprietary Information. Upon
      termination of this Agreement, each party shall deliver to the other party
      all materials, property, documents, data, and other information which
      constitutes Proprietary Information within five (5) days of notice. This
      Section shall survive the termination of this
  Agreement.

              

      

    

     

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
 

    

    ARTICLE
VI

    

    INSURANCE

    

    

    
      	
              6.1

            	
              Professional
      Liability Insurance. Company shall ensure that any professional
      employee providing services described in this Agreement on behalf of the
      Company shall maintain throughout the term of this Agreement, a policy or
      policies of professional liability insurance covering Company and any
      professional employee against any claim for damages arising directly or
      indirectly by any act or omission of Company or any professional employee
      in the course of the medical practice. Such policy or policies shall cover
      personal injury, bodily injury and death with limits of liability of at
      least $250,000.00 per claimant and $750,000.00 annual aggregate. Such
      insurance will be underwritten by a company authorized in good standing
      authorized to transact the insurance business in Florida. Company shall
      use its best efforts to arrange with its insurer to name Manager as an
      additional insured and provide at least twenty (20) days notice of any
      termination, cancellation, revocation or limitation of such coverage. If
      the insurance is written on a claims made basis, the carrier must
      guarantee tail coverage at the time the primary insurance policy is
      written, and Company or the physician must purchase and maintain such tail
      coverage upon the termination of its coverage for the maximum reporting
      period available. Alternatively, Company or any physician may purchase
      "nose" coverage if approved in writing by Manager. If necessary, such
      insurance will provide for a retroactive date of placement coincidental
      with the effective date of the Agreement. Within ten (10) days of the
      effective date of the Agreement, Company will supply Manager with a
      certificate of insurance confirming the coverage described in this
      paragraph and containing an undertaking by the carrier to notify Manager
      at least thirty (30) days before coverage is reduced or canceled, the
      deductible is increased, or any term or condition of coverage is
      materially modified. Company shall notify Manager in writing of any
      reduction or cancellation, increase of deductible or material modification
      of any term or condition of Company's insurance coverage within
      twenty-four (24) hours of receipt. This Section will survive the
      termination or expiration of the
Agreement.

            

    

    

    
      	
              6.2

            	
              Comprehensive
      General Liability Insurance. Manager shall obtain and maintain
      during the term of this Agreement reasonable amounts of comprehensive
      general liability and workers' compensation insurance with an insurance
      carrier or insurance carriers admitted to transact the insurance business
      in Florida. Manager shall ensure that any professional employee providing
      services described in this Agreement on behalf of the Company shall
      maintain throughout the term of this Agreement, a policy or policies of
      professional liability insurance covering Company and any professional
      employee against any claim for damages arising directly or indirectly by
      any act or omission of Company or any professional employee in the course
      of the medical practice. Such policy or policies shall cover personal
      injury, bodily injury and death with limits of liability of at least
      $250,000.00 per claimant and $750,000.00 annual aggregate. Such insurance
      will be underwritten by a company authorized in good standing authorized
      to transact the insurance business in Florida. Manager shall use its best
      efforts to arrange with its insurer to name Company as an additional
      insured and provide at least twenty (20) days notice of any termination,
      cancellation, revocation or limitation of such coverage. If the insurance
      is written on a claims made basis, the carrier must guarantee tail
      coverage at the time the primary insurance policy is written, and Manager
      or the physician must purchase and maintain such tail coverage upon the
      termination of its coverage for the maximum reporting period available.
      Alternatively, Manager or any physician may purchase "nose" coverage if
      approved in writing by Company.  If necessary, such insurance
      will provide for a retroactive date of placement coincidental with the
      effective date of the Agreement. Within ten (10) days of the effective
      date of the Agreement, Manager will supply Company with certificates of
      insurance confirming the coverages described in this paragraph and
      containing an undertaking by the carrier to notify Company at least thirty
      (30) days before coverages are reduced or canceled, the deductibles are
      increased, or any terms or conditions of coverages is materially modified.
      Manager shall notify Company in writing of any reduction or cancellation,
      increase of deductible or material modification of any terms or conditions
      of Manager's insurance coverages within twenty-four (24) hours of receipt.
      This Section will survive the termination or expiration of the
      Agreement.

            

    

     

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
 

    ARTICLE
VII

    

    INDEMNIFICATION

    

    
      
        	
              	
                7.1 

              	
                Indemnification
      of Manager. Company
      shall indemnify and hold harmless Manager, its officers, directors,
      shareholders, agents and independent contractors from and against any and
      all damages, liabilities, actions, suits, proceedings, claims, demands,
      losses, costs and expenses (including reasonable attorneys' fees) caused
      or asserted to have been caused, directly or indirectly, by or as a result
      of the performance of medical services or any other acts or omissions by
      Company and/or its officers, directors, employees, agents, representatives
      and/or subcontractors (other than Manager) during the term of this
      Agreement. Such indemnity shall be extinguished four years from the
      termination date of this
Agreement.

              

      

    

    

    
      
        	
              	
                7.2 

              	
                Indemnification
      of Company. Manager
      shall indemnify and hold harmless Company from and against any and all
      damages, liabilities, actions, suits, proceedings, claims demands, losses,
      costs and expenses (including reasonable attorneys' fees) caused or
      asserted to have been caused, directly or indirectly, or as a result of
      the Manager's negligent performance of its duties hereunder. Such
      indemnity shall be extinguished four years from the termination date of
      this Agreement.

              

      

    

    

    

    ARTICLE
VIII

    

    RECORDS

    

    
      	
              8.1

            	
              Patient
      Records.

            	
              Upon
      termination of this Agreement, the patient records shall belong to the
      Company and Manager shall not maintain any copies of such patient
      records.

            

    

    

    
      	
              8.2

            	
              Records
      Owned by the Company.  All records other than patient
      records, relating in any way to the operation of the Practice, shall at
      all times be the property of the
Company.

            

    

    

    
      
        	
              	
                8.3 

              	
                Access
      to Records. During
      the term of this Agreement, and for two (2) years thereafter, Company or
      its designee shall have reasonable access during normal business hours to
      Manager's financial records, including, but not limited to, records of
      collections, expenses and disbursements as kept by Manager in performing
      Manager's obligations under this Agreement.  During the term of
      this Agreement, and for two (2) years thereafter, Manager shall have
      access to the financial and medical records of Company and Manager and its
      agents and representatives shall be permitted to inspect and copy such
      records; provided that any such inspection shall be permitted only to the
      extent permitted by applicable law and shall not unreasonably interrupt
      the operation of Company.  Manager hereby agrees to preserve the
      confidentiality of all medical records, financial and accounting records
      and to use the information in such records only for limited purposes
      necessary to perform its obligations hereunder.  Each of the
      parties shall require its employees and other representatives to keep all
      medical records confidential, as well as any financial, statistical,
      personnel and patient information relating to Company or its
      patients.

              

      

    

    

    

    ARTICLE
IV

     

    USE AND DISCLOSURE OF
PROTECTED HEALTH INFORMATION

     

    
      	
               
      

            	
              9.1Acknowledgment
      of HIPAA Obligations and Other Regulations Implementing HIPAA.The
      parties acknowledge that federal regulations relating to the
      confidentiality of individually identifiable health information require
      covered entities to comply with the privacy standards adopted by the U.S.
      Department of Health and Human Services as they may be amended from time
      to time, 65 Fed. Reg. 82462-82829 (December 28, 2000) (“Privacy
      Standards”).  The Privacy Standards require a “Covered
      Entity” (as defined in the Privacy Standards) to ensure that a “Business
      Associate” (as defined in the Privacy Standards) who receives confidential
      information in the course of providing services on behalf of a Covered
      Entity comply with certain obligations regarding the confidentiality of
      health information.

            

    

     

    
      	
              9.2

            	
              Purposes
      for which PHI May be Used or Disclosed.  In connection
      with the services provided by Manager on behalf of the Company pursuant to
      this Agreement, the Company may use, disclose, or permit access to
      protected health information (“PHI”), as
      defined in the Privacy Regulations, to Manager in order to permit Manager
      to provide the management services contemplated by this
      Agreement.

            

    

     

    
      	
              9.3

            	
              Manager
      Obligations.  Manager agrees to comply with applicable
      federal and state confidentiality and security laws, including, but not
      limited to the Privacy Standards published by the United States Department
      of Health and Human Services implementing Part C of HIPAA, including
      without limitation:

            

    

     

    
      	
               
      

            	
              (A)

            	
              Use of
      PHI.  Manager shall not use PHI except as necessary to
      fulfill the purposes of this Agreement.  Manager is permitted to
      use and disclose PHI as necessary for the proper management and
      administration of the Practice or to carry out its legal responsibilities
      and its responsibilities under this Agreement.  However, Manager
      shall in such case:

            

    

     

    (i)           provide
training to members of its workforce regarding the confidentiality requirements
in the Privacy Standards and this Agreement;

    

    (ii)           obtain
reasonable assurances from the person or entity to whom the information is
disclosed that it will be held confidential and further used and disclosed only
as required by law or for the purpose for which it was disclosed to the person
or entity;

     

    (iii)           agree
to notify the Company of any instances of which it is aware in which the PHI is
used or disclosed for a purpose that is not otherwise provided for in this
Agreement or for a purpose not expressly permitted by the Privacy Standards;
and

     

    (iv)           ensure
that all disclosures of PHI are subject to the principle of “minimum necessary
use and disclosure,” i.e., only PHI that is the minimum necessary to accomplish
the intended purpose of the use, disclosure, or request may be
disclosed

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    
      	
               
      

            	
              (B)

            	
              Disclosure to Third
      Parties.  If Manager discloses PHI received from the
      Company, or created or received by Manager on behalf of the Company, to
      agents, including a subcontractor, Manager shall require the agent to
      agree to the same restrictions and conditions that apply to the Manager
      under this Agreement.  Manager shall be fully liable to the
      Company for any acts, failures or omissions of the agent in providing the
      services as if they were Manager’s own acts, failures or omissions, to the
      extent permitted by law.  Manager further expressly warrants
      that its agents will be specifically advised of, and will comply in all
      respects with, the terms of this Article
    IX.

            

    

     

    
      	
               
      

            	
              (C)

            	
              De-Identified
      Information.  Use and disclosure of de-identified health
      information is permitted, but only if (i) the precise use is disclosed to
      Company and permitted by Company in its sole discretion, and (ii) the
      de-identification is in compliance with 45 CFR §164.502(d), and any such
      de-identified health information meets the standard and implementation
      specifications for de-identification under 45 CFR §164.514(a) and (b), or
      such regulations as they may be amended from time to
  time.

            

    

     

    
      	
               
      

            	
              (D)

            	
              Notice of Privacy
      Practices.  Manager agrees that it will abide by the
      limitations of any Notice of Privacy Practices (“Notice”)
      published by the Company of which it has knowledge.  The Company
      shall provide to Manager such Notice when it is adopted.  Any
      use or disclosure permitted by this Agreement may be amended by such
      Notice.  The amended Notice shall not affect permitted uses and
      disclosures on which Manager relied prior to such
  Notice.

            

    

     

    
      	
               
      

            	
              (E)

            	
              Withdrawal of Consent
      or Authorization.  If the use or disclosure of PHI in
      this Agreement is based upon an individual’s specific consent or
      authorization for the use of his or her PHI, and the individual revokes
      such consent or authorization in writing, or the effective date of such
      authorization has expired, or the consent or authorization is found to be
      defective in any manner that renders it invalid, Manager agrees, if it has
      notice of such revocation or invalidity, to cease the use and disclosure
      of any such individual’s PHI except to the extent it has relied on such
      use or disclosure, or where an exception under the Privacy Standards
      expressly applies.

            

    

     

    
      	
               
      

            	
              (F)

            	
              Use or Disclosure that
      Would Violate HIPAA.  Manager is prohibited from further
      use or disclosure of PHI in a manner that would violate the requirements
      of the Privacy Standards if the PHI were used or disclosed by the
      Practice.

            

    

     

    
      	
               
      

            	
              (G)

            	
              Safeguards.  Manager
      is required to maintain appropriate safeguards to ensure that PHI is not
      used or disclosed other than as provided by this Agreement or as required
      by law.

            

    

     

    
      	
               
      

            	
              (H)

            	
              Records
      Management.  Upon termination of this Agreement, Manager
      agrees to return or destroy all PHI received from the Company that Manager
      maintains in any form and shall comply with federal and state laws as they
      may be amended from time to time governing the maintenance or retention of
      PHI.  If the return or destruction of PHI is not feasible,
      Manager agrees to extend the protections of this Agreement to the
      information and limit further uses and disclosures to those purposes that
      make the return or destruction of the information
    infeasible.

            

    

     

    
      	
               
      

            	
              (I)

            	
              Accounting of
      Disclosures.  Manager agrees to make available to the
      Company and the individual from whom the PHI originated, information
      required for an accounting of disclosures of PHI with respect to the
      individual, in accordance with 45 CFR §164.528 as it may be amended from
      time to time, and incorporating exceptions to such accounting designated
      under the regulation.  Such accounting is limited to disclosures
      that were made in the six (6) years prior to the request (not including
      any disclosures prior to the compliance date of the Privacy
      Standards).

            

    

     

    (i)           The
Company is required to take action on such requests as soon as possible but not
later than sixty (60) days following receipt of the request.  Manager
agrees to use its best efforts to assist the Practice in meeting this
deadline.

     

    (ii)           Such
accounting must be provided without cost to the individual or the Company if it
is the first accounting requested by an individual within any twelve (12) month
period; however, a reasonable, cost-based fee may be charged for subsequent
accountings if Manager informs the individual in advance of the fee and is
afforded an opportunity to withdraw or modify the request.

     

    (iii)           Such
accounting shall be provided as long as the Manager maintains the
PHI.

     

    
      	
              9.4

            	
              Internal
      Practices, Books, and Records.  Manager shall make
      available its internal practices, books, and records relating to the use
      and disclosure of PHI received from, created, or received by Manager on
      behalf of the Company to the U.S. Department of Health and Human Services
      or its agents for the purpose of determining the Company’s compliance with
      the Privacy Standards, or any other health oversight agency, or to the
      Practice.

            

    

     

    
      	
              9.5

            	
              Rights
      of Proprietary Information.  The Company retains any and
      all rights to proprietary information, confidential information, and PHI
      it releases to Manager.

            

    

     

    
      	
              9.6

            	
              Termination
      for Breach.  Without limiting the termination provisions
      herein, if Manager breaches any provision in this Article IX, the Company
      may, at its option, access and audit the records of Manager related to its
      use and disclosure of PHI, require Manager to submit to monitoring and
      reporting, and such other conditions as the Practice may determine is
      necessary to ensure compliance with this Article
      IX.  In addition, the Company may immediately terminate
      this Agreement on a date specified by the Company in a written notice of
      termination to Manager.

            

    

     

    
      	
              9.7

            	
              Survival
      of Key Provisions.  The provisions of this Article IX shall survive
      the termination of this Agreement.

            

    

     

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    

    ARTICLE
X

    

    GENERAL
PROVISIONS

    

    
      	
              10.1

            	
              Amendments.
      This Agreement may be modified only by a written amendment signed by the
      parties.

            

    

    

    
      
        	
              	
                10.2 

              	
                 Confidentiality
      of Agreement. Neither
      party shall disclose this Agreement or its terms to a third party without
      prior written consent of an officer of the other party except as provided
      in this Agreement, as necessary to enforce this Agreement or as otherwise
      required by law.

              

      

    

    

    
      	
              10.3

            	
              Gender
      and Number.  The masculine, feminine or neutral gender
      and the singular or plural number shall be deemed to include the others
      whenever the context so indicates.

            

    

    

    
      	
              10.4

            	
              Governing
      Law.  The validity, construction and performance of this
      Agreement shall be governed by the laws of the State of Florida without
      giving effect to conflicts of law principles.  Any action to
      interpret or enforce the provisions of this Agreement shall occur in a
      court of competent jurisdiction in Broward County.
  Florida.

            

    

    

    
      
        	
              	
                10.5 

              	
                Third
      Party Beneficiaries. Except
      for Practice, a direct and intended corporate beneficiary of the Services
      delivered by Manager for and on behalf of Practice to Company, no patient
      of Practice nor any other third party is intended to be a third party
      beneficiary of this Agreement. In the event Company shall fail to pay any
      obligation when due to Manager resulting from the failure of Practice to
      pay Company for services delivered hereunder, Company hereby agrees that
      there is privity of contract and Manager shall be permitted to exercise
      all rights held by Company to directly demand an accounting and to receive
      payment from Practice for sums due. Notwithstanding the foregoing, this
      right shall be one-way and Company shall defend, indemnify and hold
      harmless Manager from and against any claim or causes of action by
      Practice or any other third party for Services rendered hereunder (except
      as Company might bring such claims against Manager). Otherwise, no action
      may be brought by any person who is not a party to this
      Agreement.

              

      

    

    

    
      
        	
              	
                10.6 

              	
                No
      Fiduciary Relationship. The
      parties acknowledge that Manager, in the performance of this Agreement or
      otherwise, does not have a fiduciary relationship with Company and is not
      acting as a trustee, as an attorney-in-fact or in any other fiduciary
      capacity or in another capacity than an independent contractor pursuant to
      the terms and conditions of this
Agreement.

              

      

    

    

    
      	
              10.7

            	
              Assignment
      and Delegation. Neither party may assign or transfer its rights, or
      delegate its duties or obligations, under this Agreement without the prior
      written consent of the other party. The parties hereto expressly reserve
      the right for Manager to subcontract some or all of the Services hereunder
      to third party providers with the approval of
  Company.

            

    

    

    
      	
              10.8

            	
              Notification
      by Company.   Company shall notify Manager in
      writing immediately if Company has notice, or becomes aware, of any
      investigation which may lead to, or an action which may result in the,
      restriction, suspension, termination, denial or non-renewal of any of
      Company's physicians' licensure, medical staff membership, clinical
      privileges or authorization to prescribe and administer controlled
      substances.

            

    

    

    
      
        	
              	
                10.9 

              	
                Cooperation
      with Inquiries.       A
      party shall notify the other party upon receipt of an inquiry by a
      patient, patient representative or payor for a patient or investigation by
      a cognizant government agency (collectively, "Inquiry"). The
      parties shall cooperate reasonably with each other in the event of any
      Inquiry.  Manager shall be responsible for responding to any
      Inquiry related to administrative or managerial services rendered in the
      Practice. Company shall be responsible for responding promptly to any
      Inquiry related to the medical services rendered in the
      Practice.  The responding party shall give the other party
      complete information about the
response.

              

      

    

    

    
      	
              10.10

            	
              Marketing
      to Patients. Company consents to Manager marketing goods and
      services to patients in a manner not interfering with the
      Practice.

            

    

    

    
      	
              10.11

            	
              Notices.     Any
      notice or communication required by this Agreement shall be written and
      delivered personally, by facsimile, by a nationally recognized overnight
      courier service, or by U.S. mail, return receipt requested. Such notice
      will be deemed given when delivered personally, by facsimile or by prepaid
      overnight courier or when deposited in the U.S. Mail, postage prepaid,
      addressed for delivery to the principal place of business of the
      respective party. By notice to the other party, a party may change the
      foregoing information for notices.

            

    

     

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
 

    
      	
              10.12

            	
              Captions.
      The captions of sections of this Agreement are for reference purposes only
      and shall not affect the meaning of this
  Agreement.

            

    

    

    
      
        	
              	
                10.13 

              	
                Arbitration
      and Attorney's Fees. Any
      controversy or claim arising from or relating to this Agreement shall be
      settled by mediation or, if unsuccessful after thirty (30) days during
      which the parties have participated in good faith, by binding arbitration
      in accordance with the applicable rules of the American Health Lawyer's
      Association and judgment upon the award rendered by the arbitrator may be
      entered in any court having jurisdiction, subject to the following terms,
      conditions and exceptions:

              

      

    

    

    (A)           The
venue of the arbitration will be Broward County, Florida.

    

    
      	
               
      

            	
              (B)

            	
              Each
      of the parties will share equally in the costs and expenses of arbitration
      unless the arbitrator fords that the position of the non-prevailing party
      in such arbitration was without substantial justification, in which event
      the arbitrator may assess all of such costs and expenses together with
      reasonable attorneys' fees against the non-prevailing
    party.

            

    

    

    
      	
               
      

            	
               (C)

            	
              The
      prevailing party in any arbitration, or in any litigation brought to
      enforce the award, will be entitled to recover from the other party its
      attorney's fees and costs.

            

    

    

    
      	
              10.14

            	
              Counterparts.
      This Agreement may be executed in counterparts and the counterparts read
      together shall constitute one
Agreement.

            

    

    

    
      
        	
              	
                10.15 

              	
                Entire
      Agreement. This
      Agreement represents the entire understanding and agreement of the parties
      as to those matters contained herein, and supersedes any prior oral or
      written understandings, drafts, memoranda, negotiations or
      agreements.

              

      

    

    

    
      
        	
              	
                10.16 

              	
                Severability.
         If
      any provision of this Agreement shall be judicially declared to be illegal
      or enforceable, it shall be severed from this Agreement. The remainder of
      this Agreement will have the same force and effect as if such provision
      had never been included.

              

      

    

    

    
      
        	
              	
                10.17 

              	
                Waiver.
      No
      waiver of any provision of this Agreement shall be effective against
      either party unless it is in writing and signed by the party granting the
      waiver. The failure to exercise any right shall not operate as a waiver of
      such right.

              

      

    

    

    
      
        	
              	
                10.18 

              	
                 Drafting
      of Agreement. Each
      party and its/his counsel have participated fully in the negotiation,
      drafting and review of this Agreement. Each party acknowledges that this
      Agreement was fully and fairly negotiated with the disclosure of all
      material information an all professional advice which the party deemed
      necessary or advisable. Any rule of interpretation that ambiguities are to
      be resolved against one party or in favor of another shall not apply to
      the interpretation of this
Agreement.

              

      

    

     

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

     

    
 

    
      
        	
              	
                10.19 

              	
                Compliance
      with Laws and Regulations. Company
      and Manager in the performance of their respective obligations hereunder
      shall comply with all applicable laws, rules and regulations, and do
      everything in their power to ensure that the conduct of the Practice is in
      compliance with the rules of any accrediting or regulatory body, agency or
      authority having jurisdiction over the
Practice.

              

      

    

    

    
      	
              10.20

            	
              Survival.
      The provisions of this Article X (all
      sections), and of Sections 1.10, 1.11, 1.12, 1.13, 2.1, 2.7, 2.8, 2.9,
      3.2, 3.3, 3.4, 5.5, 5.8, 6.1, 6.2, 7.1, 7.2, 8.3 and Article IX (all
      sections) and Attachment A shall survive the termination of this Agreement
      for any reason.

            

    

    

    IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the dates forth
below.

     

    
      
        	 	MJM BUSINESS ENTERPRISES,
      INC.	 
	 	 	 	 
	
                Date:
      April 12, 2008    

              	
                By:
      

              	/s/ Jeffrey
      P. Dudley	 
	 	 	 	 
	 	 	Title:    COO	 
	 	 	 	 

      

    

    
      
        	 	PRIMACARE HEALTH SERVICES,
      INC.	 
	 	 	 	 
	
                Date:
      April 12, 2008   

              	
                By:
      

              	/s/ Ashvin
      Mascarenhas	 
	 	 	 	 
	 	 	Title:
      Director	 
	 	 	 	 

      

     

    

    

                                                                                  

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    

    
      	
               
      

            	
              ATTACHMENT
      A

            

    

    

    
      	
               
      

            	
              Management
      Fee and Incentive Bonus Plan

            

    

    

    

    1. Management
Fee.  During the term of this Agreement, in consideration for
the provision of Services hereunder, Company shall pay Manager the greater
of:

    

    (A) the
sum of fifty percent (50%) of the gross monthly revenues earned
by  Company due to the performance of services for or on behalf of
Practice whether delivered by (i) Company (and any of its officers, directors,
employees, representatives, agents or subcontractors) or (ii) Manager (and any
of its officers, directors, employees, representatives or agents or
subcontractors) OR

    

    (B) the
sum of Twenty Thousand Dollars ($20,000.00) per month (hereinafter “Management
Fee”).

    

    The
Management Fee shall be paid to Manager on a monthly basis by the 18th day of
the month in which sums are earned by Company.

    

    2. Incentive
Bonus.  In addition to the Management Fee, Company shall pay
Manager a performance bonus equal to Fifteen percent (15%) of the net revenues
of Practice (“Incentive Bonus”),
provided however, such Incentive Bonus shall only be due and payable to Manager
in the event that Company does not acquire RMA MSO from Manager or Manager does not
have an equity position in Company on or before September 30, 2008.

    

    

    
13

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