Document:

EX-10.33

Exhibit 10.33

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT (referred to herein as “this Agreement”)”) dated effective as of January
1, 2009 (the “Effective Date”), between Virtual Radiologic Corporation, a Delaware corporation (the
“Company”), and Michael J. Kolar (“Executive”).

W I T N E S S E T H

     WHEREAS, the Company desires to employ Executive in the capacities of Vice President, General
Counsel and Secretary of the Company;

     WHEREAS, the Company and Executive desire to enter into the Agreement as to the terms of his
employment by the Company;

     NOW THEREFORE, in consideration of the foregoing, of the mutual promises contained herein and
of other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

     1. Position/Duties.

          (a) During the Employment Term (as defined in Section 2 below), Executive shall serve as the
Vice President, General Counsel and Secretary of the Company. In this capacity Executive shall
have principal responsibility and authority for the provision and management of legal services for
the Company and its subsidiaries or affiliated entities, and shall perform the duties of Secretary
of the Company and its subsidiaries or affiliated entities as prescribed in the By-Laws of the
Company, or of its subsidiaries or affiliated entities. Executive shall have such additional
duties, authorities and responsibilities commensurate with the duties, authorities and
responsibilities of persons in similar capacities in similarly sized companies and such other
duties and responsibilities as the Chief Executive Officer shall designate that are consistent with
Executive’s position as Vice President, General Counsel and Secretary of the Company. Executive
shall report to the Chief Executive Officer.

     (b) During the Employment Term, Executive shall devote substantially all of his business time
(excluding periods of vacation and other approved leaves of absence) to the performance of his
duties with the Company; provided the foregoing shall not prevent Executive from (i) participating
in charitable, civic, educational, professional, community or industry affairs or, with prior
written approval of the Board of Directors of the Company (the “Board”), serving on the board of
directors or advisory boards of other companies; and (ii) managing his and his family’s personal
investments so long as such activities do not materially interfere with the performance of his
duties hereunder or create a potential business conflict or the appearance thereof. If at any time
service on any board of directors or advisory board would, in the good faith judgment of the Board,
conflict with Executive’s fiduciary duty to the Company or create any appearance thereof, Executive
shall promptly resign from such other board of directors or advisory board after notice of the
conflict is received from the Board.

          (c) Executive further agrees to serve without additional compensation as an officer and
director of any of the Company’s subsidiaries or affiliates, as the same may exist from

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time to time, and agrees that any amounts received from any such subsidiary or affiliate may
be offset against the amounts due hereunder. In addition, it is agreed that the Company may assign
Executive to one of its subsidiaries or affiliates for payroll purposes providing this does not
change the Executive’s role as the Vice President, General Counsel and Secretary of the Company.

     2. Employment Term.

          Executive’s term of employment under this Agreement (such term of employment, as it may be
extended or terminated, is herein referred to as the “Employment Term”) shall be for a term
commencing on the Effective Date and, unless terminated earlier as provided in Section 7 hereof,
ending on the third anniversary of the Effective Date (the “Original Employment Term”); provided
that the Employment Term shall be automatically extended, subject to earlier termination as
provided in Section 7 hereof, for successive additional one (1) year periods (the “Additional
Terms”), unless, at least 30 days prior to the end of the Original Employment Term or the then
current Additional Term, the Company or Executive has notified the other in writing that the
Employment Term shall terminate at the end of the then current term.

     3. Base Salary.

          The Company agrees to pay Executive a base salary (the “Base Salary”) at an annual rate of Two
Hundred Sixty Thousand Dollars ($260,000), payable in accordance with the regular payroll practices
of the Company, but not less frequently than monthly. Executive’s Base Salary shall be fixed for
the Original Employment Term, and thereafter in any Additional Term shall be determined by the
Board (or a committee thereof) and may be increased, but not decreased, from time to time by the
Board. The base salary as determined herein from time to time shall constitute “Base Salary” for
purposes of this Agreement.

     4. Incentive Bonus.

          During the Employment Term, Executive shall be eligible to participate in the Company’s bonus
and other incentive compensation plans and programs for the Company’s senior executives at a level
commensurate with his position. Executive shall have the opportunity to earn an annual target
bonus (the “Annual Bonus”) to be determined by and measured against objective financial criteria,
management objectives, and the discretion of the Chief Executive Officer, to be determined by the
Board (or a committee thereof) of up to 50% of Base Salary, or such greater percentage as may be
provided in an annual bonus plan approved by the Board (or a committee thereof), upon the Company’s
achievement of financial and operating metrics to be annually determined by the Board (or a
committee thereof), and upon recommendation of the Chief Executive Officer. Such annual incentive
bonuses are payable to the Executive no later than 60 days following the close of the fiscal year.

     5. Equity Incentives.

          (a) Initial Option Award. The Board or any committee of the Board (the “Committee”)
appointed to administer the Company’s Equity Incentive Plan, as may be amended from time to time
(the “Stock Plan”) shall award Executive as of the Effective Date, options to purchase Eighty
Thousand (80,000) shares of the Company’s common stock, $0.001 par value

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per share, having an exercise price of equal to the fair market value of one share of the
Company’s common stock as of the Effective Date as determined by the Board or Committee at the
earliest practicable time, which options shall be subject to certain restrictions (the “Initial
Options Award”). The Initial Options Award shall vest in four (4) equal amounts and successive
increments of twenty thousand (20,000) shares on the first, second, third, and fourth anniversaries
of the Effective Date, provided that Executive is employed on each vesting date. The Initial
Options Award shall be granted pursuant to and shall be subject to all of the terms and conditions
imposed upon such awards granted under the Stock Plan and shall be evidenced by an Incentive Stock
Option Agreement in the form approved by the Board or Committee; provided, however any provision in
the Stock Plan, including the limitations of Section 10.2 of the Stock Plan relating to “Parachute
Payments” under Internal Revenue Code Section 280G(b)(2) shall not apply to the Initial Options
Award or future Award. . As a condition to receiving the Initial Options Award, Executive
acknowledges that the Option Award, together with shares issued thereunder are subject to the
Stockholders Agreement dated May 2, 2005, as may be amended from time to time, by and among the
Company and certain holders of the Company’s securities, and, if requested, Executive shall also
execute and deliver a letter in a form approved by the Company’s underwriters agreeing not to sell
any shares of Company common stock during a customary period following the completion of an initial
public offering of the Company’s common stock.

          (b) Discretionary Grants. In addition to the Initial Options Award contemplated under
this Section 5, at the sole discretion of the Board or the Committee, Executive shall be eligible
for grants of stock options and other equity awards of a level commensurate with his position and
similar to other Executives of the Company.

          (c) Change of Control. Notwithstanding any other provision of this Agreement, the
Stock Plan or the Incentive Stock Award Agreement, in the event of a change in control, all equity
awards (including, but not limited to, any options or stock grants made subsequent to the date of
this Agreement) shall fully vest and be immediately exercisable. For purposes of this Agreement
a change in control shall occur upon (i) any “person” (as such term is used in Sections 13(d) of
the Securities Exchange Act of 1934 (the “Exchange Act”)) first becoming after the Effective Date
either (a) a “beneficial owner” (as defined in Rule 13(d) under the Exchange Act), directly or
indirectly, of securities of the Company representing 50% or more of the combined voting power of
the Corporation’s then outstanding securities or (b) able to elect a majority of the directors of
the Company (excepting in each case a person or group owned by or affiliated with Generation
Partners L.P.), or (ii) the sale of all or substantially all of the assets of the Company.

          (d) Option to Have Company Repurchase Stock and Options. If Executive dies while
employed, the Company shall, subject to any restrictions contained in any credit or similar
agreements or that exist under the Delaware General Corporation Law, make reasonable efforts to
purchase all of Executive’s stock and any outstanding options which are vested at the time of
death. If the representative of the Executive’s estate wishes to accept such offer, he or she
shall request, within six (6) months of death, that the Board determine the fair market value of
Executive’s interest in the Company. This value shall be communicated in writing to the
representative, and the representative shall have thirty (30) days to accept or reject the
valuation. If the valuation is rejected, the representative shall have no further rights to have
the interest

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repurchased by the Company. If the valuation is accepted, the Company shall pay the amount of
the valuation in three (3) equal annual installments without interest. The initial installment
shall be payable within ten days following the Company’s receipt of the representatives written
acceptance of the valuation and delivery of the shares and/or options together with any transfer
documentation reasonably requested by the Company. A subsequent installment shall be due on the
first and on the second anniversary of the payment date of the initial installment. The provision
in 5(d) expires upon the Initial Public Offering of the Company.

     6. Employee Benefits.

          (a) Benefit Plans. Executive shall be entitled to participate in all employee benefit
plans of the Company including, but not limited to, equity, pension, thrift, profit sharing,
medical coverage, education, or other retirement or welfare benefits that the Company has adopted
or may adopt, maintain or contribute to for the benefit of its senior executives at a level
commensurate with his position, subject to satisfying any applicable eligibility requirements.

          (b) Paid Time Off. Executive shall be entitled to paid time off in accordance with
the Company’s policies applicable to its senior executives, but in no event less than twenty days
(as prorated for partial years), which paid time off may be taken at such times as Executive elects
with due regard to the needs of the Company.

          (c) Perquisites. The Company shall provide to Executive all perquisites which other
senior executives of the Company are generally entitled to receive. For the avoidance of doubt,
the Company will pay or reimburse the Executive for reasonable professional expenses, including
state license fees, bar association dues and reasonable costs and expenses incurred in connection
with continuing legal education activities.

          (d) Business and Entertainment Expenses. Upon presentation of appropriate
documentation, Executive shall be reimbursed in accordance with the Company’s expense reimbursement
policy for all reasonable and necessary business and entertainment expenses incurred in connection
with the performance of his duties hereunder.

     7. Termination.

          Executive’s employment and the Employment Term shall terminate on the first of the following
to occur:

          (a) Disability. Upon written notice by the Company to Executive of termination due to
Disability. For purposes of this Agreement, “Disability” shall be defined as the inability of
Executive to have performed his material duties hereunder due to a physical or mental injury,
infirmity or incapacity for 180 days (including weekends and holidays) in any 365-day period, with
or without reasonable accommodations as defined (and if required) by applicable state and federal
disability laws. The existence or nonexistence of a Disability shall be determined by an
independent physician selected by the Company and reasonably acceptable to Executive.

          (b) Death. Automatically on the date of death of Executive.

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          (c) Cause. Immediately upon written notice by the Company to Executive of a
termination for Cause. “Cause” shall mean:

          (i) Executive shall have been indicted for a felony;

          (ii) Executive shall have been convicted of (or plead “guilty” or “nolo contendre” to
or been found guilty and not convicted of) any misdemeanor or summary offense involving
fraud, theft, misrepresentation or moral turpitude or any other misdemeanor or summary
offense that will, in the opinion of the Board, determined in good faith, adversely affect
in any material respect the Company’s prospects or reputation or Executive’s ability to
perform his obligations or duties to the Company or any of its subsidiaries; or

          (iii) The termination is evidenced by a resolution adopted in good faith by the Board
concluding that Executive:

          (A) intentionally and continually failed substantially to perform his
reasonably assigned duties with the Company (other than a failure resulting from
Executive’s incapacity due to physical or mental illness or from the assignment to
Executive of duties that would constitute Good Reason), which failure has continued
for a period of at least 30 days after a written notice of demand for substantial
performance, signed by a duly authorized member of the Board, has been delivered to
Executive;

          (B) intentionally engaged in conduct which is demonstrably and materially
injurious to the Company; provided, however, that no termination of Executive’s
employment shall be for Cause as set forth in this subsection (B) until (1) there
shall have been delivered to Executive a copy of a written notice, signed by a duly
authorized member of the Board, stating that the Board has determined that Executive
has engaged in the conduct set forth in this subsection (B), and (2) Executive shall
have been provided an opportunity to be heard by the Board;

          (C) willfully or repeatedly engaged in misconduct or gross negligence in the
performance of his duties to the Company or any of its subsidiaries that has a
material detrimental effect on the Company; or

          (D) committed an act of fraud, theft or dishonesty against the Company or any
of its subsidiaries or any act or omission intended to result in the personal
enrichment of Executive or his spouse, parents, siblings, or descendants (whether by
blood or adoption and including stepchildren) or the spouses of such individuals in
violation of law or of his duty of loyalty to the Company or its subsidiaries at the
expense, directly or indirectly, of the Company or any of its subsidiaries.

          (iv) Notwithstanding anything in the foregoing to the contrary, if Executive has been
terminated ostensibly for Cause because he has been indicted for a felony, and he is not
convicted of, or does not plead guilty or nolo contendere to, such

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felony or a lesser offense (based on the same operative facts), such termination shall
be deemed to be a termination without Cause as of the date of the termination; provided,
however, that, any payments due hereunder shall be only paid after a final determination in
such proceeding is reached.

          (d) Without Cause. Upon written notice by the Company to Executive of an involuntary
termination without Cause, other than for death or Disability.

          (e) Good Reason. Upon written notice by Executive to the Company of a termination for
Good Reason, unless such events are corrected in all material respects by the Company within 30
days following written notification by Executive to the Company that he intends to terminate his
employment hereunder for one of the reasons set forth below (so long as such notice is given within
ninety (90) days of the occurrence of such Good Reason). “Good Reason” shall mean, without the
consent of Executive, the occurrence of any of the following events:

          (i) assignment to Executive of any duties inconsistent in any material respect with
Executive’s position (including titles and reporting relationships), authority, duties or
responsibilities as contemplated by this Agreement; and

          (ii) any material failure by the Company to comply with any of the material provisions
regarding Executive’s Base Salary, bonus, equity incentive, benefits and perquisites and
other benefits and amounts payable to Executive under this Agreement.

          (f) Without Good Reason. Upon 30 days’ prior written notice by Executive to the
Company of Executive’s voluntary termination of employment without Good Reason (which the Company
may, in its sole discretion, make effective earlier than any notice date).

     8. Consequences of Termination.

          Any termination payments made and benefits provided under this Agreement to Executive shall be
in lieu of any termination or severance payments or benefits for which Executive may be eligible
under any of the plans, policies or programs of the Company or its affiliates. No termination
payments shall be payable hereunder until Executive shall have returned to the Company all Company
property used by Executive including without limitation any automobile, computer or laptop, cell
phone, Blackberry or similar device. Subject to Section 9, the following amounts and benefits
shall be due to Executive.

          (a) Disability. Upon such termination, the Company shall pay or provide Executive (i)
any unpaid Base Salary through the date of termination; (ii) any unpaid bonus earned with respect
to any fiscal year ending on or preceding the date of termination; (iii) reimbursement for any
unreimbursed expenses incurred through the date of termination; and (iv) all other payments,
benefits or fringe benefits to which Executive may be entitled under the terms of any applicable
compensation arrangement or benefit, equity or fringe benefit plan or program or grant or this
Agreement (collectively, “Accrued Amounts”).

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          (b) Death. In the event the Employment Term ends on account of Executive’s death,
Executive’s estate shall be entitled to any Accrued Amounts.

          (c) Termination for Cause or Without Good Reason. If Executive’s employment should be
terminated (i) by the Company for Cause, or (ii) by Executive without Good Reason, the Company
shall pay to Executive any Accrued Amounts.

     (d) Termination Without Cause or for Good Reason. If Executive’s
employment by the Company is terminated by the Company other than for Cause (other
than a termination for Disability) or by Executive for Good Reason, the Company
shall pay or provide Executive with (i) Accrued Amounts; (ii) a pro-rata portion
(determined by multiplying the amount Executive would have received had employment
continued through the end of the performance year by a fraction, the numerator of
which is the number of days during the performance year of termination that
Executive is employed by the Company and the denominator of which is 365) of
Executive’s Annual Bonus for the performance year in which Executive’s termination
occurs at the time that annual bonuses are paid to other senior executives; provided
that the Board determines in good faith that the Company was on plan for Executive
to earn such bonus at the time of termination; (iii) continue his then current Base
Salary as if his employment continued for a period of twelve (12) months from the
date of termination; and (iv) subject to Executive’s continued co-payment of
premiums, continued participation for twelve (12) months in all health and welfare
plans which cover Executive (and eligible dependents) upon the same terms and
conditions (except for the requirements of Executive’s continued employment) in
effect on the date of termination. To the extent such coverage cannot be provided
under the Company’s health or welfare plans without jeopardizing the tax status of
such plans, for underwriting reasons or because of the tax impact on Executive, the
Company shall pay Executive an amount equal to the amount the Company would have
paid for such benefits on behalf of Executive if the benefits were provided to him
as an employee. The continuation of health benefits under this subsection shall
reduce and count against Executive’s rights under the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended (“COBRA”). All benefits provided under
Sections 8(d)(i) and (ii) may be paid to the Employee within thirty (30) days of the
termination date once all necessary applicable releases have been signed by the
Employee and returned to the Company. Notwithstanding anything to the contrary
herein, if Executive is a “specified employee,” as defined in Section
409A(a)(2)(B)(i) of the Internal Revenue Code as of the date of any termination, any
benefits due under this Section 8(d) otherwise payable within six months following
termination shall be provided in one lump sum six months from the date of
termination. However, any payment or portion thereof which is subject to an
exemption for separation pay to specified employees as provided under Section 409A
and the relevant Treasury Regulations, or is subject to any other exemption provided
under Section 409A and the relevant Treasury Regulations allowing for payment to a
specified employee prior to the date that is six (6) months after the date of
separation from service, may be paid to Employee

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within thirty (30) days of the termination date once all applicable releases
have been signed by the Executive and returned to the Company.

          (e) Amounts Payable. The Company reserves the right to set off against amounts
payable to Executive hereunder any amounts owed by Executive to the Company.

     9. Release.

          Any and all amounts payable and benefits or additional rights provided pursuant to this
Agreement beyond Accrued Amounts shall only be payable if Executive delivers to the Company a
general release of all claims of Executive occurring up to the release date in the form of
Exhibit A hereto (with such insertions or changes therein as may be necessary in the reasonable
opinion of counsel for the Company to make it valid and encompassing under applicable law) within
21 days of presentation thereof by the Company to Executive, or such other longer or shorter period
as may be permitted or required by then applicable law.

     10. Restrictive Covenants.

          (a) Confidentiality. Executive shall not, directly or indirectly, use, make
available, sell, disclose or otherwise communicate to any person, other than in the course of
Executive’s assigned duties and for the benefit of the Company, either during the Employment Term
or at any time thereafter, any nonpublic proprietary or confidential information, knowledge or
data relating to the Company or any of its subsidiaries or affiliates that has been obtained by
Executive during Executive’s employment by the Company or has been obtained pursuant to any
consulting services provided by Executive to Company prior to Executive’s employment by the
Company. For purposes of this Agreement, non-public proprietary information means information
proprietary to the Company that is not generally known (including any “trade secret” within the
meaning of the Economic Espionage Act of 1996, Title 18 U.S.C. §1839) about the Company’s
customers, products, services, personnel, pricing, sales strategy, technology, methods, processes,
research, development, finances, systems, techniques, accounting, purchasing and plans. All
information disclosed to Executive or to which he obtains access, whether originated by him or by
others, during the period that Executive is an employee of the Company (such period being referred
to as the “Employment Period”) (whether prior to the Effective Date or thereafter), shall be
presumed to be non-public proprietary information if it is so treated by the Company or if
Executive has a reasonable basis to believe it to be such. The foregoing shall not apply to
information that (i) was known to the public prior to its disclosure to Executive; (ii) becomes
known to the public subsequent to disclosure to Executive through no wrongful act of Executive or
any representative of Executive; or (iii) Executive is required to disclose by applicable law,
regulation or legal process (provided that Executive provides the Company with prior notice of the
contemplated disclosure and reasonably cooperates with the Company at its expense in seeking a
protective order or other appropriate protection of such information). Notwithstanding clauses
(i) and (ii) of the preceding sentence, Executive’s obligation to maintain such disclosed
information in confidence shall not terminate where only portions of the information are in the
public domain.

          (b) Nonsolicitation. During the Employment Term and for the two year period
thereafter, Executive shall not, directly or indirectly, individually or on behalf of any

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other person, firm, corporation or other entity, knowingly solicit, aid or induce (i) any
employee of or consultant to the Company or any of its subsidiaries or affiliates to leave such
employment or engagement in order to accept employment with or render services to or with any other
person, firm, corporation or other entity unaffiliated with the Company or knowingly take any
action to materially assist or aid any other person, firm, corporation or other entity in
identifying or hiring any such employee or (ii) any customer of the Company or any of its
subsidiaries or affiliates to purchase goods or services then sold by the Company or any of its
subsidiaries or affiliates from another person, firm, corporation or other entity or assist or aid
any other persons or entity in identifying or soliciting any such customer.

          (c) Noncompetition. Executive acknowledges that he performs services of a unique
nature for the Company that are irreplaceable, and that his performance of such services to a
competing business will result in irreparable harm to the Company. Accordingly, during the
Employment Term and for the two year period thereafter, Executive shall not, directly or
indirectly, own, manage, operate, control, be employed by (whether as an employee, consultant,
independent contractor or otherwise, and whether or not for compensation) or render services to any
person, firm, corporation or other entity, in whatever form, engaged in any business of the same
type as any business in which the Company or any of its subsidiaries or affiliates is engaged on
the date of termination or in which they have proposed, on or prior to such date, to be engaged in
on or after such date, in any locale of any country in which the Company or its subsidiaries
conducts business. This Section 10(c) shall not prevent Executive from owning not more than one
percent of the total shares of all classes of stock outstanding of any publicly held entity engaged
in such business, nor will it restrict Executive from rendering services to charitable
organizations, as such term is defined in Section 501(c) of the Internal Revenue Code of 1986, as
amended.

          (d) Nondisparagment. Neither Executive nor the Company (for purposes hereof, the
Company shall mean the Company together with its executive officers and directors and not any other
employees) shall make any public statements that disparage the other party, or in the case of the
Company, its respective subsidiaries, affiliates, employees, officers, directors, products or
services. Notwithstanding the foregoing, statements made in the course of sworn testimony in
administrative, judicial or arbitral proceedings (including, without limitation, depositions in
connection with such proceedings) shall not be subject to this Section 10(d).

          (e) Equitable Relief and Other Remedies. Executive acknowledges and agrees that the
Company’s remedies at law for a breach or threatened breach of any of the provisions of this
Section 10 would be inadequate and, in recognition of this fact, Executive agrees that, in the
event of such a breach or threatened breach, in addition to any remedies at law, the Company,
without posting any bond, shall be entitled to obtain equitable relief in the form of specific
performance, temporary restraining order, a temporary or permanent injunction or any other
equitable remedy which may then be available.

          (f) Reformation. If it is determined by a court of competent jurisdiction in any
state or other jurisdiction that any restriction in this Section 10 is excessive in duration or
scope or is unreasonable or unenforceable under the laws of that state or jurisdiction, it is the
intention of the parties that such restriction may be modified or amended by the court to render it
enforceable to the maximum extent permitted by the law of that state or jurisdiction.

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          (g) Survival of Provisions. The obligations contained in this Section 10 shall
survive the termination or expiration of Executive’s employment with the Company and shall be fully
enforceable thereafter.

     11. Inventions and Other Intellectual Property.

          (a) Assignment of Inventions and Works Limitation of Assignment in Certain Cases.
Executive acknowledges that Executive will exercise Executive’s inventive and creative abilities
for the benefit of the Company. Executive therefore assigns and transfers to the Company
Executive’s entire right, title and interest in and to all Inventions. Executive agrees that all
such Inventions are the sole property of the Company. For purposes of this Agreement, “Inventions”
shall include but not be limited to all ideas, improvements, designs and discoveries whether or not
patentable and whether or not reduced to practice, made or conceived by Executive (whether made
solely by Executive or jointly with others) which relate in any manner to the business, work or
research and development of the Company, its subsidiaries or affiliates, or result from and are
suggested by any task assigned to Executive or any work performed by Executive for or on behalf of
the Company, its predecessors in interest or any related entity. The foregoing definition does not
however, include an Invention for which no equipment, supplies, facility, or confidential
information of the Company was used and that was developed entirely on Executive’s own time and
that (i) does not directly relate to the Company’s business, research or development, or (ii) does
not result from any work performed by Executive for the Company.

Executive agrees that all Works are the sole property of the Company, and shall, to the extent
possible, be considered works made for hire for Company within the meaning of Title 17 of the
United States Code; provided, however, that if Executive is domiciled in California or if any of
the Work is created in California, then such Work shall not be a work made for hire. If for any
reason any Work is not deemed to be a work made for hire, then Executive assigns and transfers to
the Company Executive’s entire right, title and interest in and to such Work, and Executive further
waives all of his rights under the United States Copyright Act and under any other country’s
copyright law, including any rights provided in 17 U.S.C. §§ 106 and 106A, for any and all purposes
for which such Work and any derivative works thereof may be used, and any rights of attribution and
integrity or any other “moral rights of authors” with respect to such Work and any derivative works
thereof and any uses thereof to the full extent now or hereafter permitted by the laws of the
United States of America or the laws of any other country. For purposes of this Agreement, “Works”
shall include but not be limited to all copyrightable works created by Executive (whether solely by
Executive or jointly with others) during the Employment Period, or any time thereafter, which
relate in any manner to the business, work or research and development of the Company, its
subsidiaries or affiliates, or result from and are suggested by any task assigned to Executive or
any work performed by Executive for or on behalf of the Company, its subsidiaries or affiliates.

If any such assignment is invalid or ineffective for any reason, then Executive hereby grants
Company a perpetual, royalty-free, non-exclusive, worldwide license to fully exploit any
intellectual property or propriety rights in such Inventions and Works and any patents and
copyrights (or other intellectual property or propriety registrations or applications) resulting
therefrom.

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          (b) Disclosure of Inventions, Works and Patents. Executive agrees that in connection
with any Invention or Work:

          (i) Executive will disclose such Invention promptly in writing to the President, Chief
Executive Officer or Board of the Company, in order to permit the Company to claim rights to
which it may be entitled under this Agreement. Such disclosure shall be received in
confidence by the Company or the Board.

          (ii) Executive will, at the Company’s request, promptly execute a written assignment of
title to the Company for any Invention required to be assigned by this Article (“Assignable
Invention”), and Executive will preserve any such Assignable Invention as confidential
information of the Company.

          (iii) Executive will give to the relevant contact person at the Company a copy of such
Work. Executive will, at the Company’s request, promptly execute a written assignment of
title to the Company for any such Work.

          (iv) Upon request, Executive agrees to assist the Company or its nominee (at its
expense) during and at any time subsequent to the Employment Period in every reasonable way
to obtain for its own benefit patents and copyrights for such Assignable Inventions and such
Works in any and all countries, which Inventions and Works shall be and remain the sole and
exclusive property of the Company or its nominee whether or not patented or copyrighted.
Executive agrees to execute such papers and perform such lawful acts as the Company deems to
be necessary to allow it to exercise all right, title and interest in such patents and
copyrights.

          (c) Execution of Documents. In connection with this Section 11, Executive further
agrees to execute, acknowledge and deliver to the Company or its nominee upon request (at its
expense) all such documents, including applications for patents and copyrights and assignments of
inventions, patents and copyrights to be issued therefore, as the Company may determine necessary
or desirable to apply for and obtain letters, patents and copyrights on such Assignable Inventions
and such Works in any and all countries and/or to protect the interest of the Company or its
nominee in such inventions, such Works, patents and copyrights, and to vest title thereto in the
Company, or its nominee.

          (d) Maintenance of Records. Executive agrees to keep and maintain adequate and
current written records of all Inventions and Works made or created by Executive (in the form of
notes, sketches, drawings and other typical forms), which records shall be available to and remain
the sole property of the Company at all times.

          (e) Prior Inventions. It is understood that all inventions, if any, patented or
unpatented, which Executive made prior to the Executive’s first day as an employee of or consultant
or contractor to the Company, its predecessors in interest or any related entity (and which have
not been otherwise assigned or transferred to the Company) are excluded from the scope of this
Agreement.

          To preclude any possible uncertainty, Executive has set forth on Exhibit B attached hereto a
complete list of all Executive’s prior inventions, if any, including numbers of

11

 

all patents and patent applications, and a brief description of all unpatented inventions that
are not the property of a previous employer or other person and which have not been otherwise
assigned or transferred to the Company. Executive represents and covenants that the list is
complete and that, if no items are on the list, Executive has no such prior inventions. Executive
agrees to notify the Company in writing before Executive makes any disclosure or performs any work
on behalf of the Company which appears to threaten or conflict with proprietary rights Executive
claims in any invention or idea. In the event of Executive’s failure to give such notice,
Executive agrees that Executive will make no claim against the Company with respect to any such
inventions or ideas.

          (g) Trade Secrets and Intellectual Property of Others. Executive represents that
Executive’s performance of all the terms of this Agreement does not and will not breach any
noncompetition or nonsolicitation agreement, or any agreement to keep proprietary information,
knowledge or data acquired by Executive in confidence or in trust prior to the Employment Period,
and Executive will not disclose to the Company or induce the Company to use any confidential or
proprietary information or material belonging to any previous employer or other person. Executive
agrees not to enter into any agreement either written or oral in conflict herewith.

          (h) Non infringement. Executive represents that the work product that Executive
provides to the Company, including the Inventions and the Works, and Company’s use thereof in their
indented manner: (a) do not and will not infringe or violate the copyright or trade secret rights
of any other party; and (b) to the best of Executive’s knowledge, do not and will not infringe or
violate the actual or prospective patent or trademark rights of any other party. If at any time
during or after the Employment Period, Executive has reason to believe that the foregoing
representation is no longer true, then Executive shall promptly inform Company of such belief and
the reasons therefor.

          (i) Other Obligations. Executive acknowledges that the Company from time to time may
have agreements with other persons or with the U.S. Government or governments of other countries,
or agencies thereof, which impose obligations or restrictions on the Company regarding inventions
made during the course of work thereunder or regarding the confidential nature of such work.
Executive agrees to be bound by all such obligations and restrictions and to take all action
necessary to discharge the obligations of the Company thereunder.

     12. Assignments.

          (a) This Agreement is personal to each of the parties hereto. Except as provided in
Section 12(b) below, no party may assign or delegate any rights or obligations hereunder without
first obtaining the written consent of the other party hereto.

          (b) The Company may assign this Agreement to any successor to all or substantially all of the
business and/or assets of the Company, provided the Company shall require such successor to
expressly assume and agree to perform this Agreement in the same manner and to the same extent that
the Company would be required to perform it if no such succession had taken place.

12

 

     13. Notice.

          For the purpose of this Agreement, notices and all other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly given (i) on the date of
delivery if delivered by hand, (ii) on the date of transmission, if delivered by confirmed
facsimile, (iii) on the first business day following the date of deposit if delivered by guaranteed
overnight delivery service, or (iv) on the fourth business day following the date delivered or
mailed by United States registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

If to Executive:

At the address (or to the facsimile number) shown on the records of
the Company.

If to the Company:

Virtual Radiologic Corporation

5995 Opus Parkway, Suite 200

Minnetonka, MN 55343

Attention: Corporate Secretary

Fax: 952/943-2401

with copies to:

Generation Partners L.P.

One Greenwich Office Park

Greenwich, CT 06831-5156

Attention: Andrew Hertzmark

Fax: 203/422-8250

or to such other address as either 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.

     14. Section Headings; Inconsistency.

          The section headings used in this Agreement are included solely for convenience and shall not
affect, or be used in connection with, the interpretation of this Agreement.

     15. Severability.

          The provisions of this Agreement shall be deemed severable and the invalidity of
unenforceability of any provision shall not affect the validity or enforceability of the other
provisions hereof.

13

 

     16. Counterparts.

          This Agreement may be executed in several counterparts, each of which shall be deemed to be an
original but all of which together will constitute one and the same instrument.

     17. Indemnification.

          The Company hereby agrees to indemnify Executive and hold him harmless to the fullest extent
permitted by law and under the bylaws of the Company against and in respect to any and all actions,
suits, proceedings, claims, demands, judgments, costs, expenses (including reasonable attorney’s
fees), losses, and damages resulting from Executive’s good faith performance of his duties and
obligations with the Company.

     18. Governing Law and Venue.

          The validity, interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Minnesota without regard to its conflicts of law principles. Each
party to this Agreement consents to the jurisdiction over it of the courts of the State of
Minnesota in the City of Minneapolis, and the United States Courts in the District of Minnesota and
agrees that any personal service of process may be made by registered or certified mail to the
notice address as set forth in Section 12 hereof, and as the same may be changed from time to time
as provided therein.

     19. Arbitration.

          Any dispute or controversy arising under or in connection with this Agreement shall be
submitted to arbitration in accordance with the rules of the American Arbitration Association then
in effect in Minneapolis Minnesota before a panel of three (3) arbitrators who shall be
knowledgeable in executive employment law, who shall be independent of, and have no ex parte
communications with, the parties or their representatives, and who shall render written findings of
fact, conclusions of law and order. In addition to any other inherent powers, arbitrators shall
have the express powers to order a party to comply with or desist from breaching any of the terms
of this Agreement. The determination of the arbitrators shall be final and binding upon the parties
and may be entered as a final judgment in any court of competent jurisdiction. The parties shall
equally share the costs of arbitration. Nothing herein, however, shall deprive a party of the right
to seek equitable relief from the courts to restrain or enjoin the other from a breach this
Agreement pending the empanelling of the arbitrators or their final determination.

     20. Waiver and Modification.

          No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by Executive and such officer or
director as may be designated by the Board. No waiver by either party hereto at any time of any
breach by the other party hereto of, or compliance with, any condition or provision

14

 

of this Agreement to be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent time.

     21. Supersession and Merger.

     This Agreement together with all exhibits hereto and the Stock Plan and Stock Option Agreement
merges all prior negotiations or agreements and sets forth the entire agreement of the parties
hereto in respect of the subject of the matter contained herein. No agreements or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof have been made by
either party which are not expressly set forth in this agreement.

     22. Withholding.

     The Company may withhold from any and all amounts payable under this Agreement such foreign,
federal, state and local taxes as may be required to be withheld pursuant to any applicable law or
regulation.

     23. Survival. The provisions of Sections 9, 10, 11, 13, 18, 19 and 23 shall survive
termination of this Agreement for whatever reason.

15

 

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

	 	 	 	 	 
	 	COMPANY

Virtual Radiologic Corporation

 	 
	 	By:  	/s/     Robert C. Kill
 	 
	 	 	Name:  	Robert C. Kill 	 
	 	 	Its:  President 	 
	 
	 	EXECUTIVE

Michael J. Kolar

 	 
	 	By:  	/s/ Michael J. Kolar
 	 
	 	 	 	 
	 	 	 	 

16

 

	 	 	 	 	 

EXHIBIT A

FORM OF RELEASE

AGREEMENT AND GENERAL RELEASE

     Virtual Radiologic Corporation, its affiliates, subsidiaries, divisions, successors and
assigns and the current, future and former employees, officers, directors, trustees and agents
thereof (collectively referred to throughout this Agreement as the “Company”) and Michael Kolar his
heirs, executors, administrators, successors and assigns (collectively referred to throughout this
Agreement and General Release as “Executive”) agree:

          1. Last Day of Employment. Executive’s last day of employment with the Company is
[INSERT TERMINATION DATE]. In addition, effective as of [INSERT TERMINATION DATE], Executive
resigns from his position as General Counsel and Secretary of the Company and will not be eligible
for any benefits or compensation after [INSERT TERMINATION DATE], other than as specifically
provided in the employment agreement between the Company and Executive dated effective as of March
31, 2007 (the “Employment Agreement”), subject to Executive’s executing, delivering and not
revoking Appendix 1 hereto. Executive further acknowledges and agrees that, after [INSERT
TERMINATION DATE], he will not represent himself as being a director, employee, officer, trustee,
agent or representative of the Company for any purpose and will not make any public statements
relating to the Company, other than general statements relating to his position, title or
experience with the Company, subject to the confidentiality provision under Section 10(a) of the
Employment Agreement and in no event will Executive make any statements as an agent or
representative of the Company. In addition, effective as of [INSERT TERMINATION DATE], Executive
resigns from all offices, directorships, trusteeships, committee memberships and fiduciary
capacities held with, or on behalf of, the Company or any benefit plans of the Company. These
resignations will become irrevocable as set forth in Section 3 below.

          2. Consideration. The parties acknowledge that this Agreement and General Release is
being executed in accordance with Section 9 of the Employment Agreement.

          3. Revocation. Executive may revoke this Agreement and General Release for a period
of                      calendar days following the day he executes this Agreement and General Release. Any
revocation within this period must be submitted, in writing, to Virtual Radiologic Corporation and
state, “I hereby revoke my acceptance of our Agreement and General Release.” The revocation must be
personally delivered to Sean Casey, Chief Executive Officer, or his/her designee, or mailed to
Virtual Radiologic Corporation at 5995 Opus Parkway, Suite 200, Minnetonka, MN, 55343, or the
Company’s then current regular business address, and postmarked within seven (7) calendar days of
execution of this Agreement and General Release. This Agreement and General Release shall not
become effective or enforceable until the revocation period has expired. If the last day of the
revocation period is a Saturday, Sunday, or legal holiday in the State of Minnesota, then the
revocation period shall not expire until the next following day which is not a Saturday, Sunday, or
legal holiday.

 

 

          4. General Release of Claims. Executive knowingly and voluntarily releases and
forever discharges the Company from any and all claims, causes of action, demands, fees and
liabilities of any kind whatsoever, whether known and unknown, against the Company, Executive has,
has ever had or may have as of the date of execution of this Agreement and General Release,
including, but not limited to, any alleged violation of:

	 	•	 	The National Labor Relations Act, as amended;
	 
	 	•	 	Title VII of the Civil Rights Act of 1964, as amended;
	 
	 	•	 	The Civil Rights Act of 1991;
	 
	 	•	 	Sections 1981 through 1988 of Title 42 of the United States Code, as
amended;
	 
	 	•	 	The Employee Retirement Income Security Act of 1974, as amended;
	 
	 	•	 	The Immigration Reform and Control Act, as amended;
	 
	 	•	 	The Americans with Disabilities Act of 1990, as amended;
	 
	 	•	 	The Age Discrimination in Employment Act of 1967, as amended;
	 
	 	•	 	The Older Workers Benefit Protection Act of 1990;
	 
	 	•	 	The Worker Adjustment and Retraining Notification Act, as amended;
	 
	 	•	 	The Occupational Safety and Health Act, as amended;
	 
	 	•	 	The Family and Medical Leave Act of 1993;
	 
	 	•	 	The Minnesota Civil Rights Act, as amended;
	 
	 	•	 	The Minnesota Minimum Wage Law, as amended;
	 
	 	•	 	Equal Pay Law for Minnesota, as amended;
	 
	 	•	 	Any other foreign, federal, state or local civil or human rights law
or any other local, state, federal or foreign law, regulation or
ordinance;
	 
	 	•	 	Any public policy, contract, tort, or common law; or
	 
	 	•	 	Any allegation for costs, fees, or other expenses including
attorneys’ fees incurred in these matters.

Notwithstanding anything herein to the contrary, the sole matters to which this Agreement and
General Release do not apply are: (i) Executive’s rights of indemnification and directors and
officers liability insurance coverage, if any, to which he was entitled immediately prior to

 

 

[INSERT TERMINATION DATE] with regard to his service as an officer of the Company; (ii) Executive’s
rights under any tax-qualified pension or claims for accrued vested benefits under any other
employee benefit plan, policy or arrangement maintained by the Company or under COBRA; (iii)
Executive’s rights under the provisions of the Employment Agreement which are intended to survive
termination of employment; or (iv) Executive’s rights as a stockholder.

          5. No Claims Permitted. Executive waives his right to file any charge or complaint
against the Company arising out of his employment with or separation from the Company before any
foreign, federal, state or local court or any foreign, federal, state or local administrative
agency, except where such waivers are prohibited by law. This Agreement and General Release,
however, does not prevent Executive from filing a charge with the Equal Employment Opportunity
Commission, any other federal government agency, and/or any government agency concerning claims of
discrimination, although Executive waives his right to recover any damages or other relief in any
claim or suit brought by or through the Equal Employment Opportunity Commission or any other state
or local agency on behalf of Executive under the Age Discrimination in Employment Act, Title VII of
the Civil Rights Act of 1964 as amended, the Americans with Disabilities Act, or any other federal
or state discrimination law, except where such waivers are prohibited by law.

          6. Affirmations. Executive affirms he has not filed, has not caused to be filed, and
is not presently a party to, any claim, complaint, or action against the Company in any forum or
form. Executive further affirms that he has been paid and/or has received all compensation, wages,
bonuses, commissions, and/or benefits to which he may be entitled and no other compensation, wages,
bonuses, commissions and/or benefits are due to him, except as provided in the Employment
Agreement. Executive also affirms he has no known workplace injuries.

          7. Confidentiality; Cooperation; Return of Property. Executive agrees not to disclose
any information regarding the circumstances surrounding the cessation of his employment, or the
existence, terms, or conditions of this Agreement and General Release, to any person or entity
whatsoever, including without limitation, any members of the media (including, but not limited to,
print journalists, newspapers, radio, television, cable, satellite programs, or Internet media) or
any Internet web page or “chat room,” or any other entity or person, with the exception of
Executive’s spouse, accountant, tax advisor, and/or attorneys. Notwithstanding the aforementioned
provision, nothing herein shall preclude Executive from divulging any information to any agency of
the federal, state, or local government pursuant to an official request by such government agency
or pursuant to court order (provided that Executive provides the Company with prior notice of the
contemplated disclosure and reasonably cooperates with the Company at its expense in seeking a
protective order or other appropriate protection of such information). Executive agrees to
reasonably cooperate with the Company and its counsel in connection with any investigation,
administrative proceeding or litigation relating to any matter that occurred during his employment
in which he was involved or of which he has knowledge. The Company will reimburse Executive for
any reasonable pre-approved out-of-pocket travel, delivery or similar expenses incurred in
providing such service to the Company. Executive represents that he has returned to the Company
all property belonging to the Company, including but not limited to any leased vehicle, laptop,
cell phone, keys, access cards, phone cards and credit cards.

 

 

          8. Governing Law and Interpretation. This Agreement and General Release shall be
governed and conformed in accordance with the laws of the State of Minnesota without regard to its
conflict of laws provision. In the event Executive or the Company breaches any provision of this
Agreement and General Release, Executive and the Company affirm either may institute an action to
specifically enforce any term or terms of this Agreement and General Release. Should any provision
of this Agreement and General Release be declared illegal or unenforceable by any court of
competent jurisdiction and should the provision be incapable of being modified to be enforceable,
such provision shall immediately become null and void, leaving the remainder of this Agreement and
General Release in full force and effect. Nothing herein, however, shall operate to void or
nullify any general release language contained in the Agreement and General Release.

          9. Non-admission of Wrongdoing. Executive agrees neither this Agreement and General
Release nor the furnishing of the consideration for this Release shall be deemed or construed at
any time for any purpose as an admission by the Company of any liability or unlawful conduct of any
kind.

          10. Amendment. This Agreement and General Release may not be modified, altered or
changed except upon express written consent of both parties wherein specific reference is made to
this Agreement and General Release.

          11. Entire Agreement. This Agreement and General Release sets forth the entire
agreement between the parties hereto and fully supersedes any prior agreements or understandings
between the parties; provided, however, that notwithstanding anything in this Agreement and General
Release, the provisions in the Employment Agreement which are intended to survive termination of
the Employment Agreement, including but not limited to those contained in Section 10 thereof, shall
survive and continue in full force and effect. Executive acknowledges he has not relied on any
representations, promises, or agreements of any kind made to him in connection with his decision to
accept this Agreement and General Release.

     EXECUTIVE HAS BEEN ADVISED THAT HE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO REVIEW THIS
AGREEMENT AND GENERAL RELEASE AND HAS BEEN ADVISED IN WRITING TO CONSULT WITH AN ATTORNEY PRIOR TO
EXECUTION OF THIS AGREEMENT AND GENERAL RELEASE.

     EXECUTIVE AGREES ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT AND GENERAL
RELEASE DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL TWENTY-ONE (21) CALENDAR DAY
CONSIDERATION PERIOD.

     HAVING ELECTED TO EXECUTE THIS AGREEMENT AND GENERAL RELEASE, TO FULFILL THE PROMISES SET
FORTH HEREIN, AND TO RECEIVE THE SUMS AND BENEFITS IN SET FORTH IN THE EMPLOYMENT AGREEMENT,
EXECUTIVE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT AND GENERAL
RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS HE HAS OR MIGHT HAVE AGAINST THE COMPANY.

 

 

     IN WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this Agreement and
General Release as of the date set forth below:

	 	 	 	 	 
	 	Virtual Radiologic Corporation

 	 
	 	By:  	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Michael Kolar 	 
	 	 	 	 
	 

 

 

Mr. Michael Kolar

     Re:       Agreement and General Release

Dear Michael:

     This letter confirms that on [INSERT DATE], I personally sent to you the enclosed Agreement
and General Release. You have until [INSERT DATE] to consider this Agreement and General Release,
in which you waive important rights, including those under the Age Discrimination in Employment Act
of 1967. To this end, we advise you to consult with an attorney of your choosing prior to
executing this Agreement and General Release.

	 	 	 	 	 
	 	Regards,

 	 
	 	
 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

 

 

APPENDIX 1

Sean Casey

Chief Executive Officer

Virutal Radiologic Corporation

5995 Opus Parkway, Suite 200

Minnetonka, MN 55343

     Re: Agreement and General Release

Dear Dr. Casey,

     On [INSERT DATE] I executed an Agreement and General Release between Virtual Radiologic
Corporation and me. I was advised by Virtual Radiologic Corporation, in writing, to consult with
an attorney of my choosing, prior to executing this Agreement and General Release.

     More than seven (7) calendar days have expired since I executed the above-mentioned Agreement
and General Release. I have at no time revoked my acceptance or execution of that Agreement and
General Release and hereby reaffirm my acceptance of it. Therefore, in accordance with the terms
of our Agreement and General Release, I request payment of the monies and benefits described in the
Employment Agreement (as defined in the Agreement and General Release).

	 	 	 	 	 
	 	Regards,

 	 
	 	Signed:  	 	 
	 	 	Michael Kolar 	 
	 	 	 	 

 

 

	 	 	 	 	 

Exhibit B

to

Virtual Radiologic Corporation

Employment Agreement

     Executive has indicated on this Exhibit all Inventions (as defined in the Employment
Agreement) in which Executive owned any right or interest prior to time Executive became an
employee of the Corporation. Executive agrees that any present or future Inventions not listed in
this Appendix are subject to assignment under the attached Employment Agreement.

	 	 	 
	Brief Description of

	 	Right, Title or Interest
	Inventions

	 	and Date AcquiredEX-10.1

Exhibit 10.1

Employee Performance Incentive 

Compensation Plan

Effective January 1, 2009

Performance Period: January 1 — December 31, 2009

 

 

	 	 	 
	 

	 	Employee Performance Incentive Comp Plan
	 

	 	Effective January 1, 2009
	 

	 	Performance Period
	

	 	January 1 — December 31, 2009

	I.	 	Philosophy/Purpose of the Plan
	 
	 	 	The purpose of the ev3 Inc. Employee Performance Incentive Compensation Plan (the “Plan”) is
to provide financial reward in addition to base salary, based on achievement of specific
performance, to those who significantly impact the growth and success of the Company. The
plan is designed to reward employees for achieving stretch annual goals and to closely align
their accomplishments with the interests of the company’s shareholders. This is done by
providing annual incentives for the achievement of key business and individual performance
measures that are critical to the success of the Company while linking a significant portion
of an employee’s annual compensation to the achievement of such measures.
	 
	II.	 	Eligible Participants
	 
	 	 	The Company will determine eligibility criteria for the Plan on an annual basis and in its
sole discretion. For 2009, the Plan covers the following: (i) all regular, salaried,
exempt United States employees in Levels 2 and above, inclusive, and (ii) international and
expatriate/inpatriate employees who are determined by the Company to be eligible for
participation. Notwithstanding the foregoing, employees in positions covered by sales
compensation plans are not eligible Participants in the Plan.
	 
	 	 	The Plan year runs from January 1 — December 31 of each year (the “Plan Year”). Payouts
will be made on an annual basis during the period beginning on the first day of the calendar
year following the performance year and ending on March 15th of such calendar year.
Participants with less than a full year of service or whose incentive target percent has
changed during a Plan Year may be eligible to participate in the plan on a prorated basis,
determined by the percentage of time they were eligible to participate during that Plan Year
under applicable criteria. Plan Participants with less than three (3) full months of
eligible service on December 31 of a particular Plan Year will not be eligible to receive an
award under the Plan for that Plan Year.
	 
	 	 	To be eligible, Participants must have established and approved annual individual
performance goals by the end of the first quarter of each Plan Year (or, for new employees,
within two (2) months of the employee’s start date). Managers are responsible for meeting
this deadline. Participants and Managers who do not complete the annual individual
performance goal setting process by such deadlines may become ineligible to participate in
the Plan for that Plan Year.
	 
	III.	 	Administration of the Plan
	 
	 	 	The Compensation Committee of the Board of Directors of the Company will administer the
Plan. The Compensation Committee, in its sole discretion, may delegate to the Company’s
Chief Executive Officer activities relating to Plan administration that are not required to
be exercised by the Compensation Committee under applicable laws, rules, regulations and the
Compensation Committee Charter. Delegable activities include, but are not limited to,
establishing any policies under the Plan, interpreting provisions of the Plan, determining
eligibility to participate in the Plan, and approving any final payouts under the Plan that
do not affect Executive Officer level employees. All decisions of the Compensation
Committee and the Chief Executive Officer will be final and binding upon all parties,
including the Company and Plan Participants.

2

 

	 	 	 
	 

	 	Employee Performance Incentive Comp Plan
	 

	 	Effective January 1, 2009
	 

	 	Performance Period
	

	 	January 1 — December 31, 2009

	IV.	 	Incentive Targets
	 
	 	 	Incentive targets have been approved by the Compensation Committee for all eligible Plan
Participants based upon their level of responsibility within the Company and impact on the
business. These incentive targets represent the incentive (as a percent of a Plan
Participant’s base salary) that a Plan Participant is eligible to receive under the Plan.
It is the Company’s intention to provide significant incentive and reward opportunities to
its employees for world-class performance achievement.
	 
	 	 	Each position level (2-11) has an established target bonus, expressed as a percentage of
base salary, as illustrated below and in the attached Target Bonus Table.

	 	 	 	 	 	 	 	 	 
	 	 	Salary Level	 	Standard % of Base Salary Earned
	CEO
	 	 	11	 	 	 	100	%
	WW President & Executive Vice
President
	 	 	10	 	 	 	65	%
	Business Unit President and
Executive Vice President
	 	 	10	 	 	 	65	%
	CFO
	 	 	9	 	 	 	60	%
	OC Members
	 	 	8	 	 	 	50	%
	VP
	 	 	7	 	 	 	40	%
	Director
	 	 	6	 	 	 	30	%
	Managers, Principals
	 	 	5	 	 	 	25	%
	Supervisors/Sr. Level Contributors
	 	 	4	 	 	 	15	%
	Intermediate level
	 	 	3	 	 	 	10	%
	Entry Level Individual Contributors
	 	 	2	 	 	 	8	%
	Non-exempt
	 	 	1	 	 	Not eligible

The actual incentive is capped at 150% standard, or may result in 0 bonus based on
achievement. In unusual circumstances, modifications may be made if, in the Compensation
Committee’s final judgment the calculations does not accurately reflect performance.

	V.	 	Individual Performance Measures
	 
	 	 	Individual performance measures for a Plan Year are established during the annual goal
setting process. Each Plan Year, all Plan Participants are required to develop three to
five written, measurable and specific Management By Objectives (MBO’s), which must be agreed
to and approved by the Participant and two management levels above the Participant by the
end of the first quarter. For Executives in Grade Level 8 and up, each MBO and targeted
achievement levels must be approved by the President and CEO and the Compensation Committee.
All objectives are weighted by agreement, with areas of critical importance or critical
focus weighted most heavily. A rating of 1 to 5 is agreed upon, providing specific
achievement levels for each rating. A rating of 3 will always equal “on plan” performance.

3

 

	 	 	 
	 

	 	Employee Performance Incentive Comp Plan
	 

	 	Effective January 1, 2009
	 

	 	Performance Period
	

	 	January 1 — December 31, 2009

	VI.	 	Company Performance Measures
	 
	 	 	For each Plan Year, the Compensation Committee, together with input from the Company’s Chief
Executive Officer, will identify critical Company performance measures. The 2009 Company
performance measures are:

	 	•	 	Worldwide Revenue
	 
	 	•	 	Operating Profit
	 
	 	•	 	Daily Sales Outstanding — “DSO”
	 
	 	•	 	Days on Hand “Inventory DOH”

The finance team will work with each operating unit to establish specific financial
objectives for the Incentive Plan Company performance measures, which will be tied to the
company’s approved operating plan. All objectives are weighted by agreement, with areas of
critical importance or critical focus weighted most heavily. In addition, for each
performance measure, targets have been established for each rating level 1 to 5. A rating
of 3 will always equal “on plan” performance.

	VII.	Bonus Calculation
	 
	 	All Plan performance measures and objectives are rated (based on the achievement grid) and
weighted based on relative importance in order to obtain a weighted performance rating for
each objective. All weighted performance ratings are added together to obtain an overall
rating for each Participant.
	 
	 	An aggregate average for the corporate, divisions and individuals goals must meet at least a
1.5 to meet the minimum 50% payout threshold. There are no awards if final overall rating
is below a 1.5. A scale for calculating actual achievement percentage will be used as
follows:

	 	 	 	 	 
	                    Overall Rating	 	Percentage Achievement
	5
	 	 	150	%
	4
	 	 	125	%
	3
	 	 	100	%
	2
	 	 	75	%
	1.5
	 	 	50	%

Increments between rating levels will be interpolated as closely as possible to determine an
actual incentive percentage, e.g. an overall rating of 3.5 equals a 112.5% incentive
percentage.

For each Participant the actual incentive percentage is multiplied by the target bonus
percentage to calculate the award, e.g. 112.5% actual incentive percentage times 20% target
bonus equals an award of 22.5% of earned base salary.

For new or newly eligible Participants who join the plan during the plan year, the award may
be calculated either by using base salary or pro-rated salary depending on the terms and
conditions of the job offer, as documented in the offer letter and approved in advance by
the Compensation Committee.

	VIII.	Individual Incentive Payment Criteria, Calculation, and Payout
	 
	 	A Plan Participant must remain actively employed by the Company past December
31st of the Plan Year to be eligible for an incentive payment under the Plan for
that Plan Year. 

4

 

	 	 	 
	 

	 	Employee Performance Incentive Comp Plan
	 

	 	Effective January 1, 2009
	 

	 	Performance Period
	

	 	January 1 — December 31, 2009

The incentive payment under the Plan for any eligible Plan Participant for a particular Plan
Year will vary depending upon the approved individual objectives and company performance
measures, the Plan Participant’s base salary as of November 1 of that Plan Year, and the
Plan Participant’s incentive target for that Plan Year.

In the following cases, the final incentive payout will be prorated. If the Plan Participant
was on a Leave of Absence for part of the Plan Year, their bonus will be pro-rated based
upon the number of days they were actively working within the year. If the Plan Participant
works less than a full-time schedule (40 hours/week), the incentive payout will be prorated
for the hours worked or if the Plan Participant has a change to their full-time status
throughout the year, their incentive payout will likewise be prorated for the portion of the
year in which they worked a part time schedule. If the Plan Participant received a promotion
during the year prior to November 1 with a change in target incentive, the final payout will
be prorated for the time spent at each incentive target using the base salary as of November
1. Lastly, if a plan Participant were to change divisions within ev3 during the plan year
and prior to November 1, the final payout will be prorated for the time spent in each
division. If the Participant changes divisions after November 1, the incentive payout will
be determined by using the prior division results.

At the end of the plan year, each Participant will review their MBO’s and results with their
direct manager to determine the rating earned for each MBO objective. Each MBO objective
rating will be combined to calculate an overall rating for the individual objectives. In
addition, as soon as practicable after the appropriate financial and other data has been
compiled, the finance department will calculate the ratings for the overall ev3 and each
business unit financial goals. These ratings will be combined together per the applicable
weighting factors to determine the final payout for each individual Plan Participant.
Individual incentive payments under the Plan will be made in a lump sum, less applicable
withholding taxes, as soon as reasonably practicable after the determination of such
payments, during the period beginning on the first day of the calendar year following the
performance year and ending on March 15 of such calendar year.

In all cases, recommendations for final incentive awards are submitted to the Chief
Executive Officer for approval, with final approval by the Compensation Committee. In the
event that a Participant is on a Performance Improvement Plan (PIP) for all or part of the
plan year, ev3 reserves the right to withhold all or partial bonus payment from the
Participant.

The CEO and/or the Compensation Committee may make a recommendation to modify an award by
plus/minus 20% if, in its subjective judgment, the Participant has not been equitably
treated by the mechanics of the incentive plan. Such modifications of awards should only be
used in truly exceptional cases.

	IX.	 	Plan Discretion
	 
	 	 	All benefits payable under the Plan are discretionary and no Plan Participant shall have any
right to payment under the Plan until actually paid.
	 
	 	 	To the extent necessary with respect to any Plan Year, in order to avoid any undue windfall
or hardship due to external causes, the Compensation Committee may without the consent of
any affected Plan Participant, revise one or more of the Company performance measures, or
otherwise make adjustments to payouts under the Plan to take into account any acquisition or
disposition by the Company not planned for at the time the Company performance measures were
established, any change in accounting principles or standards, or any extraordinary or
non-recurring event or item, so as equitably to reflect such event or events, such that the
criteria for evaluating whether a Company performance measure has been achieved will be
substantially the same (as determined by the Compensation Committee) following such event as
prior to such event.

5

 

	 	 	 
	 

	 	Employee Performance Incentive Comp Plan
	 

	 	Effective January 1, 2009
	 

	 	Performance Period
	

	 	January 1 — December 31, 2009

	X.	 	Recoupment Policy
	 
	 	 	Any payments under the Plan are subject to the Company’s Recoupment Policy. Under the
Company’s Recoupment Policy, the Company will, to the full extent permitted by applicable
law, have the sole and absolute authority to require that each executive officer agree to
reimburse the Company for all or any portion of any cash bonuses or incentive based
compensation if: (a) the payment was predicated upon the achievement of certain financial
results that were subsequently the subject of a material financial restatement, (b) in the
Compensation Committee’s view, the executive officer engaged in fraud or misconduct that
caused or partially caused the need for a material financial restatement by the Company, and
(c) a lower payment would have occurred based upon the restated financial results. In each
such instance, the Company will, to the extent practicable and allowable under applicable
laws, require reimbursement of any bonus or incentive based compensation awarded to the
executive officer in the amount by which the individual executive officer’s annual bonus or
incentive based compensation for the relevant period exceeded the lower payment that would
have been made based on the restated financial results, provided that the Company will not
seek to recover bonuses or incentive based compensation paid more than 12 months prior to
the date the applicable restatement is disclosed.
	 
	 	 	Any recoupment under the Company’s Recoupment Policy may be in addition to any other actions
or remedies that may be available to the Company under applicable law and any other policies
of the Company, including disciplinary actions up to and including termination of
employment.
	 
	 	 	For purposes of the Company’s Recoupment Policy, the term “executive officer” means any
officer who has been designated an executive officer by the Board. For purposes of the
Company’s Recoupment Policy, the term “misconduct” means any material violation of the ev3
Inc. Code of Business Conduct, the ev3 Inc. Code of Ethics for Senior Executive and
Financial Officers or other illegal or unethical activity, as determined by the Compensation
Committee.
	 
	 	 	The Compensation Committee may delegate one or more of the duties or powers described in the
Company’s Recoupment Policy to one or more sub-committees of the Board consisting solely of
independent directors.
	 
	XI.	 	Termination, Suspension, or Modification
	 
	 	 	The Company may terminate, suspend, modify and if suspended, may reinstate or modify, all or
part of the Plan at any time, with or without notice to the Plan Participants. Exceptions
to the eligibility of, or the extent to which the Plan applies to, any particular Plan
Participant must be approved, on a case-by-case basis, by the Compensation Committee
	 
	XII.	 	Limitation of Liability
	 
	 	 	No member of the Company’s Board of Directors, the Compensation Committee, any officer,
employee, or agent of the Company, or any other person participating in any determination of
any question under the Plan, or in the interpretation, administration, or application of the
Plan, shall have any liability to any party for any action taken, or not taken, in good
faith under the Plan.
	 
	XIII.	 	No Right to Employment
	 
	 	 	This document sets forth the terms of the Plan and it is not intended to be a contract or
employment agreement between any Plan Participant and the Company. Nothing contained in the
Plan (or in any other documents related to the Plan) shall confer upon any employee or Plan
Participant any right to

6

 

	 	 	 
	 

	 	Employee Performance Incentive Comp Plan
	 

	 	Effective January 1, 2009
	 

	 	Performance Period
	

	 	January 1 — December 31, 2009

continue in the employ or other service of the Company or constitute any contract or limit
in any way the right of the Company to change such person’s compensation or other benefits
or to terminate the employment or other service of such person with or without cause or
notice.

	XIV.	 	Non-Assignability
	 
	 	 	Except for the designation of a beneficiary(ies) to receive payments of benefits for a
particular Plan year following a Plan Participant’s death after the completion of such Plan
Year, no amount payable at any time under the Plan shall be subject to sale, transfer,
assignment, pledge, attachment, or other encumbrance of any kind. Any attempt to sell,
transfer, assign, pledge, attach, or otherwise encumber any such benefits, whether currently
or thereafter payable, shall be void.
	 
	XV.	 	Withholding Taxes
	 
	 	 	The Company is entitled to withhold and deduct from any payments made pursuant to the Plan
or from future wages of a Plan Participant (or from other amounts that may be due and owing
to the Plan Participant from the Company), or make other arrangements for the collection of,
all legally required amounts necessary to satisfy any and all federal, state, and local
withholding and employment-related tax requirements attributable to any payment made
pursuant to the Plan.
	 
	XVI.	 	Unfunded Status of Plan
	 
	 	 	The Plan shall be unfunded. No provisions of the Plan shall require the Company, for the
purpose of satisfying any obligations under the Plan, to purchase assets or place any assets
in a trust or other entity to which contributions are made or otherwise to segregate any
assets. Plan Participants shall have no rights under the Plan other than as unsecured
general creditors of the Company.
	 
	XVII.	 	Other
	 
	 	 	Except to the extent in connection with other matters of corporate governance and authority
(all of which shall be governed by the laws of the Company’s jurisdiction of incorporation),
the validity, construction, interpretation, administration and effect of the Plan and any
rules, regulations, and actions relating to the Plan will be governed by and construed
exclusively in accordance with the internal, substantive laws of the State of Minnesota,
without regard to the conflict of law rules of the State of Minnesota or any other
jurisdiction.

7

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