Document:

Retention Agreement

 Exhibit 10.3 
 RETENTION AGREEMENT 
 This Retention Agreement (this “Agreement”) is executed by
William J. Braun, who resides at the address listed at the end of this Agreement, and SRI/SURGICAL EXPRESS, INC. (the “Company”), a Florida corporation with its principal executive office at 12425 Racetrack Road, Tampa,
Florida 33626, to record their agreement regarding the continued payment by the Company to Employee of compensation and benefits on the occurrence of certain events. 
 BACKGROUND 
 Employee is a valuable employee of the Company. To offer employee further
assurance, the Company desires to offer Employee the arrangements to be paid severance compensation on his involuntary termination of employment that are set forth in this Agreement. This Agreement further constitutes added consideration for
Employee’s execution of his Non-Competition and Confidentiality Agreement with the Company (the “Non-Competition Agreement”) and reconfirms that the Non-Competition Agreement remains in full force and effect. 

OPERATIVE TERMS 
 The
parties agree as follows: 
 1. Definitions. As used in this Agreement, the capitalized terms defined below have the respective
meanings ascribed to them: 
 “Annual Salary” means the annualized, base salary payable to Employee by the Company as of any
particular date, and excludes all other cash and non-cash compensation paid or payable to Employee. 
 “Cause” means a
termination of Employee’s employment that is the result of (a) Employee being charged with a felony, (b) Employee’s disclosure of trade secrets or other confidential information related to the business of the Company or any
affiliated companies, or (c) Employee’s action that constitutes misconduct, insubordination, violation of Company policies, or compromised ethical behavior, or (d) Employee’s action that constitutes willful neglect or willful
failure to perform a duty to the Company that continues after notice from the Company. 
 “Disability” means Employee’s
incapacity due to physical or mental illness that causes him to be absent from the full time performance of his duties with the Company for three (3) consecutive months or for four (4) months during any twelve (12) month period. Any
question regarding the existence of Employee’s Disability on which Employee and the Company cannot agree will be determined by a qualified independent physician selected by Company and approved by the Employee (or, if he is unable to select a
physician, by any adult member of his immediate family), approval not to be unreasonably withheld. The determination of the physician made in writing to the Company and to Employee will be final and conclusive for all purposes of this Agreement.

 “Effective Date” means the date of this Agreement. 

 “Involuntary Termination” means the termination of Employee by the Company for any
reason other than for Cause, death, or Disability that constitutes an “involuntary separation from service” within the meaning of Treasury Regulations Section 1.409A-1(n)(1). To the extent necessary to comply with Section 409A of
the Code, references to “termination of employment,” “separation from service” or variations thereof in this Agreement shall mean the Employee’s “separation from service” from the Company within the meaning of
Section 409A(a)(2)(A)(i) of the Code and the default rules of Treasury Regulations Section 1.409A-1(h). 
 “Noncompetition
Agreement” means the Non-Competition and Confidentiality Agreement dated as of February 11, 2009 between the Company and Employee. 
 “Subsidiary” means a corporation of which 80% or more of its voting securities are owned directly or indirectly by the Company. 
 2. Term. This Agreement shall be in effect for a term beginning on the execution date of this Agreement and ending automatically, without further obligation, when Employee ceases to be employed by the
Company for any reason other than an Involuntary Termination. 
 3. Contingent Severance Payment on Involuntary
Termination. In the event of an Involuntary Termination, the Company shall continue to pay Employee at the rate of his Annual Salary in accordance with the Company’s standard payroll procedures for 270 calendar days
after the date of the Involuntary Termination and furnish Employee health and dental insurance benefits. Employee’s right to the foregoing compensation will be conditioned on (a) Employee’s continuing to be available to the Company in
person or by telephone, as reasonably required by the Company, to assist with any post-termination transition for up to 30 days following the termination date, but for no more than four hours during any week without added compensation,
(b) Employee’s execution of a release in favor of the Company in a form satisfactory to the Company and its counsel, which generally and unconditionally releases from all claims the Company and its directors, officers, and other
affiliates, and (c) Employee’s continuing compliance with the Non-Competition Agreement. The Company will not have any obligation to Employee in connection with his termination of employment in the absence of an Involuntary Termination or
otherwise than as stated above. 
 For clarification, the obligation of the Company to “furnish” health and dental benefits means
that the Company shall, for the 270 day severance period, pay COBRA premiums in order for Employee to maintain health and dental insurance coverage at the level in effect on the date of the Involuntary Termination. The Company’s obligation to
furnish this benefit is conditioned on the Employee being eligible for and timely electing continuation of Employee’s health insurance benefits pursuant to COBRA; and provided further that (x) the Company’s obligation to pay
Employee’s COBRA premiums will cease immediately in the event Employee becomes eligible for group health insurance during such 270 day severance period, and (y) Employee agrees to promptly notify the Company if Employee becomes eligible to
be covered by group health insurance during such period. 
 If the Employee has not executed and delivered the release referenced in
subsection (b) above with all periods for revocation thereof expired as of the date that is sixty (60) days after the date of Involuntary Termination (“Required Release Date”), the Employee shall forfeit the 

  

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right to receive the foregoing severance compensation. Any severance compensation that is not deferred compensation within the meaning of Section 409A
shall commence upon the second payroll date following the first date on which the release is executed and delivered with all periods for revocation thereof expired (the “Release Effective Date”), and continue for the remaining term
of the 270 day severance period; provided that such first payment shall include all such amounts that otherwise would have been paid prior to the Release Effective Date had the severance compensation commenced on the first payroll date
following the date of Involuntary Termination. Subject to Section 9, payments of severance compensation that constitute deferred compensation within the meaning of Section 409A shall commence on the second payroll date after the
Required Release Date (regardless of when the Release Effective Date occurs); and continue for the remaining term of the 270 day severance period; provided that such first payment shall include all such amounts that otherwise would have been
paid prior to the Required Release Date had the severance compensation commenced on the first payroll date following the date of Involuntary Termination. 
 4. Employment Status. This Agreement does not constitute an employment agreement between the Company and Employee, but rather provides for the payment of severance compensation to
Employee on the termination of his employment with the Company under the conditions described in this Agreement. This Agreement does not guarantee the continued employment of Employee by the Company or the payment of any other amount of
compensation. 
 5. Employee Acknowledgements Concerning Non-Competition Agreement. Employee reconfirms his obligations and
covenants set forth in the Non-Competition Agreement. Employee acknowledges that as added consideration for his execution of the Non-Competition Agreement, the Company has granted to Employee the potential for severance compensation provided by this
Agreement. 
 6. Legal Matters. The validity, construction, enforcement, and interpretation of this Agreement are governed by
the laws of the State of Florida and the United States of America, excluding the laws of those jurisdictions pertaining to the resolution of conflicts with laws of other jurisdictions. Employee and the Company (a) consent to the personal
jurisdiction of the state and federal courts having jurisdiction over Hillsborough County, Florida, (b) stipulate that the proper, exclusive, and convenient venue for any legal proceeding arising out of this Agreement is Hillsborough County,
Florida, and (c) waive any defense, whether asserted by a motion or pleading, that Hillsborough County, Florida, is an improper or inconvenient venue. EMPLOYEE KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES THE RIGHT TO A JURY TRIAL IN ANY
LAWSUIT BETWEEN EMPLOYEE AND THE COMPANY WITH RESPECT TO THIS AGREEMENT. 
 7. Notices. Every notice, demand, or consent
required or permitted under this Agreement will be valid only if it is in writing and delivered personally or by telex, telecopy, telegram, cablegram, commercial courier, or first-class, postage prepaid, United States mail (whether or not certified
or registered and regardless of whether a return receipt is requested or received by the sender), and addressed by the sender to the intended recipient at the address set 

  

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forth in the preamble of this Agreement or to such other address as the intended recipient has previously designated to the sender by notice given in
accordance with this section. A validly given notice, demand, or consent will be effective on the earlier of its receipt, if delivered personally or by telex, telecopy, telegram, cablegram, or commercial courier, or the third day after it is
postmarked by the United States Postal Service, if delivered by first class, postage prepaid, United States mail. Each party shall notify the other of any change in its or his mailing address that is listed in this Agreement. 
 8. Miscellaneous. A waiver, amendment, cancellation, or modification of this Agreement will be valid and effective only if it is in writing
and signed by or on behalf of both parties to this Agreement. This Agreement records the final, complete, and exclusive understanding between the parties regarding the subject matter of it and supersedes any prior or contemporaneous agreement,
understanding, or representation, oral or written, by either of them. In particular, this Agreement cancels and supersedes any previous agreement between Employee and the Company that provides for severance compensation to Employee. Nothing in this
Agreement, whether express or implied, is intended or should be construed to confer upon, or to grant to, any person, except the Company, Employee and their respective heirs, assignees, and successors, any claim, right, remedy, or privilege under,
or because of, this Agreement or any provision of it. This Agreement is binding on every assignee and successor of the Company. The parties may execute this Agreement in counterparts. Each executed counterpart will constitute an original document,
and all executed counterparts, together, will constitute the same agreement. This Agreement will become effective, as of its stated date of execution, when each party has executed and delivered to the other party a counterpart of it. 
 “9. Section 409A. The parties intend for the severance benefits under this Agreement to be exempt from the requirements of
Section 409A under the exemptions set forth in Treasury Regulations Sections 1.409A-1(b)(4) (short-term deferral) or 1.409A-1(b)(9) (certain separation pay plans). The parties intend for this Agreement to be interpreted, construed,
administered and applied in a manner as shall meet and comply with any such exemptions from Section 409A. Notwithstanding any other provision of this Agreement, none of the Company, its subsidiaries or affiliates or any individual acting as a
director, officer, employee, agent or other representative of the Company or a subsidiary or affiliate shall be liable to Employee or any other person for any claim, loss, liability or expense arising out of any interest, penalties or additional
taxes due by Employee or any other person as a result of this Agreement or the administration thereof not satisfying any of the requirements of Section 409A. If Employee is a “specified employee” (as determined by the Company under
Section 409A) on the date of Employee’s separation from service, if and to the extent that the severance benefits under this Agreement constitute deferred compensation within the meaning of Section 409A, each such severance payment
shall be paid on the later of (a) the date scheduled to be paid under Section 3, or (b) the first business day after the date that is six (6) months after the date of Employee’s separation from service. Each
installment under this Agreement shall be regarded as a separate “payment” for purposes of Section 409A. 
 (signature page
follows) 
  

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 EXECUTED: As of March 30, 2009, in Tampa, Florida 
  

			
	“COMPANY”
	
	SRI/SURGICAL EXPRESS, INC., a Florida corporation
		
	By:	 	 /s/ Gerald Woodard

	Name:	 	Gerald Woodard
	Title:	 	Chief Executive Officer
	
	“EMPLOYEE”
	
	 /s/ William J. Braun

	
	 Address:
 William J. Braun
 30991 Inverness Circle
 Westlake, OH 44145

  

 5Non-Competition and Confidentiality Agreement

 Exhibit 10.4 
 

 
 Non-Competition and Confidentiality Agreement 
 This Agreement is made and entered into on or about March 30, 2009 (exact date to be determined), between SRI Surgical (referred to as “SRI”) and William
Braun (referred to as “Employee”). 
 SRI and Employee enter into this Agreement with the following understandings: 
  

	A.	SRI is engaged in the business of supplying hospitals and surgery centers with reusable surgical apparel, linens, stainless steel basins, surgical instruments, disposable packs as
well as providing on-site customer processing services and consultation. 

  

	B.	SRI maintains confidential and trade secret information which is critical to the operation and competitiveness of its business. This information includes, but is not limited to,
information about SRI’s customers and customer lists, files containing accounting data, engineering data, inventions, processes, formulas, drawings, blueprints, costs, research, marketing information, production information, sales, sales plans
and methods, supply sources, pricing, quotations, employee compensation and other confidential information, data banks and files, and computer aided design and drafting programs. This trade secret and confidential information is referred to in this
Agreement as “Confidential Information.” SRI’s customers include persons, firms, corporation and other entities that lease/purchase the goods and services sold or provided by SRI, have leased/purchased such goods and services in the
past, or are potential lessors/purchasers of such goods and services in the future. 

  

	C.	SRI will invest substantial time and resources in the development, training and support of the Employee. 

  

	D.	SRI will necessarily, in the course of the Employee’s employment, provide the employee with access to SRI’s Confidential Information to enable the Employee to perform the
duties of his or her employment. 

  

	E.	The Employee understands and agrees that SRI has a reasonable expectation that the Employee will not compete against SRI or work for any business competing against SRI during
Employee’s employment with SRI for a reasonable period of time after the termination of Employee’s employment with SRI, and Employee will not disclose or make use of any of SRI’s confidential information (except as authorized by SRI)
at any time, because Employee would gain a competitive advantage through both Employee’s employment with SRI and through Employee’s access to SRI’s Confidential Information. 

  

	F.	SRI and the Employee agree that substantial and irreparable loss and damage will be suffered by SRI in the event that the Employee breaches this Agreement. 

SRI and Employee agree as follows: 
 1. Employment:
SRI employs the Employee, and the Employee accepts employment with SRI under the terms and at the compensation mutually agreed upon by the parties. These terms may be changed by the parties from time to time. The Employee shall devote
Employee’s entire working time and complete efforts to SRI’s business. SRI may terminate the Employee’s employment at will or in accordance with applicable state law and Employee may resign at will. 
  

 

 
 Non-Competition and Confidentiality Agreement (cont’d) 
  

 2. Covenants: 
 (a) Non-Competition: Employee shall not during employment with SRI and for eighteen (18) months after Employee’s termination of employment or resignation compete with SRI. To “compete” means
(i) to directly or indirectly establish or aid in establishing, or have effective control over any business competitive with SRI’s business; or (ii) to become associated with or render services as an employee, independent contractor,
consultant or otherwise, to any person, firm, corporation or other entity engaged in any business competitive with SRI’s business. Mere ownership of less than one percent (1%) of the outstanding common stock of a corporation competitive
with SRI’s business whose stock is traded on any major United States stock exchange or on the over-the-counter market shall not be considered as a violation of this Agreement. For purpose of this section 2(a), “any business competitive
with SRI’s business” shall mean a business or hospital sterile processing center which competes with the facility or office of SRI by which the Employee was employed. 
 (b) Non-Solicitation: At all times during Employee’s employment and after Employee’s termination of employment or resignation, Employee
shall keep all information about SRI’s customers confidential and secret and shall not disclose or use that information in any manner, either directly or indirectly, orally or in writing or otherwise, to any person, firm, corporation, or other
entity. Furthermore, during Employee’s employment and for eighteen (18) months after the termination of Employee’s employment or Employee’s resignation, the Employee shall not solicit the trade of any of the persons, firms,
corporations or other entities who are SRI’s customers, for or on behalf of Employee (if Employee is competing with SRI) or any person, firm, corporation or other entity that is in competition for SRI’s business. For purpose of this
section 2(b), “any business competitive with SRI’s business” shall mean a business or hospital sterile processing center which competes with the facility or office of SRI by which the Employee was employed. 
 (c) Non-Inducement: During Employee’s employment and for eighteen (18) months after the termination of Employee’s employment or
Employee’s resignation, the Employee shall not, directly or indirectly, induce or attempt to induce any present or former employee of SRI to gain or seek employment with any person or business in competition with SRI. 
 (d) Non-Disclosure: At all times during Employee’s employment and after the termination of Employee’s employment or Employee’s
resignation, Employee shall protect and guard SRI’s Confidential Information. Employee shall not at any time, directly or indirectly, disclose to any person, firm, corporation or other entity, or use for Employee’s own purposes any
Confidential Information, regardless of how it is acquired, except as Employee’s use of the Confidential Information may be authorized by SRI. 
 (e) Reporting to the Company: Employee agrees to render to SRI such reports of Employee’s business activities for SRI during Employee’s employment as SRI may request. Employee shall promptly communicate and disclose to SRI
all information, observations and data obtained by Employee in the course of Employee’s employment. Upon termination of employment, Employee shall promptly deliver to SRI, without retaining any copies, all memoranda, diaries, notes, records,
sketches, plans, specifications, or other documents or things containing Confidential Information developed or obtained by Employee. 
 (f)
Inventions and Discoveries: Any and all inventions and discoveries, whether or not patentable, which Employee may conceive or make, either alone or in conjunction with others, during Employee’s employment and relating to SRI’s
business shall be the exclusive property of SRI. Furthermore, Employee shall, upon the request of SRI and without further compensation or consideration, but at the expense of SRI, promptly execute and assign any and all applications, assignments and
other instruments which SRI shall deem necessary in order to apply for and obtain letters patent of the United States and foreign countries for those inventions and discoveries, and in order to assign and convey to SRI or its nominee the sole and
exclusive right, title and interest in and to those inventions, discoveries or any applications or patents upon them. 

 

 
 Non-Competition and Confidentiality Agreement (cont’d) 
  

 3. Non-Disparagement: Employee agrees not to make any disparaging statements about SRI or its
officers, agents or employees during Employee’s employment and after the termination of Employee’s employment or Employee’s resignation. 
 4. Minimum Restrictions Necessary; Severability: If a court of competent jurisdiction determines that any of the provisions of this Agreement are unenforceable for any reason, each such provision shall be
deemed to be modified in a manner to render it enforceable and each provision, as modified, shall then be fully enforceable as though set forth in this Agreement. Any such modification shall not affect the other provisions or clauses of this
Agreement in any respect. The invalidity or unenforceability of any provision or clause of this Agreement shall not affect the continued validity or enforceability of any other provision or clause in this Agreement, and this Agreement shall be
construed in all respects as if any invalid or unenforceable provision or clause was omitted. 
 5. Company’s Remedies: SRI and
Employee agree that the services to be rendered by Employee are special, unique and of an extraordinary character. Employee hereby acknowledges that: (i) the restrictions contained herein are reasonable and necessary in order to protect
SRI’s legitimate business interests; (ii) any breach or violation thereof would result in irreparable injury to SRI; and (iii) the enforcement of a remedy by way of injunction would not prevent Employee from earning a living.
Employee, therefore, acknowledges and agrees that, in the event that 
 Employee violates or breaches this Agreement, SRI is authorized and entitled to
obtain, from any court of competent jurisdiction: (i) preliminary and permanent injunctive relief; (ii) an equitable accounting of all profits or benefits arising out of the violation or breach; (iii) direct, incidental and
consequential damages to SRI arising from the violation or breach; and (iv) SRI’s attorneys’ fees and costs, all of which rights and remedies shall be cumulative and in addition to any other rights and remedies to which SRI may be
entitled. 
 6. Representation and Warranty: Employee represents and warrants to SRI that Employee has not assumed any obligations or
entered into any arrangements or contracts inconsistent or in conflict with those set out in this Agreement. 
 7. Modification and
Waiver: No modification, amendment or waiver of any of the provisions of this Agreement shall be effective unless contained in writing specifically referring to this Agreement. The failure by SRI at any time to enforce any of the provisions of
this Agreement, or to require performance by Employee of any of the provisions of this Agreement, shall in no way be construed to be a waiver of those provisions and shall not affect either the validity of any part of this Agreement or the right of
SRI to enforce each and every provision of this Agreement. 
 8. Binding Effect: This Agreement shall be binding upon the inure to the
benefit of SRI and any successor or assignee of SRI, including any corporation or other entity which may acquire all or substantially all of the assets of SRI, or into which SRI may be merged or consolidated. Any such successor shall be deemed
substituted for SRI under the provisions of this Agreement. This Agreement shall be binding upon and inure to the benefit of Employee and Employee’s heirs, legal representatives and assigns, except that the Employee’s obligations to
perform future services or employee’s rights to receive payment for those services are hereby expressly declared to be non-assignable and nontransferable. 
 9. Construction: Section headings are included in this Agreement solely for the convenience of reference and shall not be construed as a part of any section or modifying its contents. 

 

 
 Non-Competition and Confidentiality Agreement (cont’d) 
  

 10. Governing Law and Jurisdiction: This Agreement shall be governed by and construed under
the laws of the State of Florida. SRI and Employee agree that this Agreement may be enforced in any court of competent jurisdiction in the State of Florida, which is SRI’s principal place of business, or in the state where Employee is employed
or can be found, at the sole election of SRI. 
  

			
	EMPLOYEE	 	SRI Surgical
		
	 William J. Braun
	 	 /s/ Ray Reilly

	Print Name	 	Ray Reilly
		 	Vice President, Human Resources & Client Relations
		
	 /s/ William J. Braun
	 	
	Signature

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