Wow, That's a lot of money. If she decides to do it I would :
1) have a lawyer draw up a contract for him to sign stating -A) the amount of money B) make it understood in a contract that regardless the number of puppies born the amount paid to your friend is the same. C) This is for one litter only. D) make it known in the contract that Jimmy is not a registered ABD.

2) I would also insist that the dog be breed at your friends house. Maybe that should be in the contract too. (if he's wiling to pay 10K and he is an honest man, then he should have no problem with that.)

I'm sure there are more to think about than this, but it's a start.