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EMPLOYMENT AGREEMENT

Employee Retention Agreement

EMPLOYMENT AGREEMENT | Document Parties: COMPREHENSIVE CARE CORP You are currently viewing:
This Employee Retention Agreement involves

COMPREHENSIVE CARE CORP

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Title: EMPLOYMENT AGREEMENT
Date: 3/27/2009
Industry: Healthcare Facilities     Sector: Healthcare

EMPLOYMENT AGREEMENT, Parties: comprehensive care corp
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EXHIBIT 10.21

EMPLOYMENT AGREEMENT

AGREEMENT made as of the 27th day of March, 2009, by and between John M. Hill, an individual residing in St. Petersburg, Florida (hereinafter referred to as “Executive”) and Comprehensive Care Corporation, a Delaware corporation with its principle office located at 3405 West Martin Luther King, Jr. Blvd., Suite 101, Tampa, FL, 33607 (hereinafter called the “Company”).

W I T N E S S E T H

WHEREAS, the Company desires to retain the services of Executive to render his/her services to Company on the terms and conditions hereinafter set forth; and

WHEREAS, Executive is agreeable to rendering such services to the Company on the terms and conditions hereinafter set forth;

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

 

 

1.

Employment Term, Duties and Acceptance

(a) Company hereby retains Executive as Company’s Chief Executive Officer for a period of three (3) years, commencing on January 1, 2009 (the “Employment Period”), subject to earlier termination as hereinafter provided, to render his/her services to Company upon the terms and conditions herein contained, in such executive capacity. In such executive capacity, Executive shall report and be responsible to the Company’s Board of Directors. Notwithstanding the foregoing and notwithstanding the fact that Executive’s employment shall commence immediately, the three-year term of Executive’s employment shall be calculated from the time Executive is paid his/her full compensation on a regular basis as set forth in paragraph 2 below.

(b) Executive hereby accepts the foregoing employment and agrees to render his/her services to the Company on a full-time basis in such a manner as directed by the Company’s Board of Directors as to reflect Executive’s best efforts to the end that the Company’s operations are properly managed. In furtherance of Executive performing the duties assigned to him/her under this Agreement, the Company agrees to provide Executive with a support staff reasonably required by Executive so as to enable him/her to carry out such duties.

 

 

2.

Compensation

(a) During the first year of the term of this Agreement, Executive shall receive compensation of $390,000 per year. This compensation may, at the election of the Company, be accrued, in whole or in part, until such time as the Company receives financing and/or generates sufficient revenues with which to pay the Company’s executives their stated compensation after the payment by the Company of its operating expenses, but no longer than the end of each tax year. Executive’s compensation shall be payable in accordance with the general payroll practices of the Company as are from time to time, in effect, less such deductions or amounts as shall be required to be withheld by applicable law or regulation. On an annual (fiscal or calendar year, as the case may be) basis, the Board of Directors shall review the services provided by Executive to determine the amount that Executive’s salary shall be increased for the forthcoming yearly period. Such increase shall be no less than an amount equal to the percentage increase in the Consumer Price Index or such other similar index reflective of the cost of living increase in the metropolitan area of Executive’s place of residence from the beginning of the yearly period to the end of the yearly period with respect to the Consumer Price Index applicable to the said metropolitan area, times Executive’s base compensation in effect during the said yearly period. The sum resulting by way of this increase to the Executive’s base compensation shall, for the then immediately succeeding period be considered the Executive’s base compensation. The Board of Directors shall also determine on an annual (fiscal or calendar year, as the case may be) basis, the amount, if any, of bonus or incentives to be paid to Executive. Provided, however, that Executive shall receive a special bonus (“special bonus”) in an amount equal to one (1) percent of the Company’s pre-tax profits from the preceding year (as determined by the application of generally accepted accounting principles), up to the first one-million dollars of such profits; plus an additional sum equal to two, and (2) percent of the Company’s pre-tax profits for all sums over one-million dollars. The special bonus shall be paid within thirty (30) days following determination thereof, which determination shall be made as soon as practicable.

(b) Executive shall be entitled to reasonable paid vacation time, sick leave and time to attend professional meetings comparable to that offered the executives in comparable positions.

(c) Executive shall be entitled (subject to the terms and conditions of particular plans and programs) to all fringe benefits afforded to other senior executives of the Company, including, but not by way of limitation, bonuses and the right to participate in any pension, stock option, retirement and, unless otherwise covered by a group policy (as opposed to an individual policy owned and paid for by Executive and/or his wife and/or a company of which either of them own 100% of stock), major medical, group health,

 

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disability, relocation reimbursement, and other employee benefit programs made generally available, from time to time, by the Company. The Company also agrees to obtain and pay the premiums for life, travel and accident insurance (with a double indemnity provision).

(d) Company shall pay or reimburse Executive for reasonable expenses incurred in the performance of his services under this Agreement during the Employment Period, upon presentation of expense statements, vouchers or such other supporting documentation as may reasonably be required.

 

 

3.

Disability

(a) Upon the disability, as defined in subparagraph 3(b) hereof, of Executive during the Employment Period, Company may, in its sole discretion, terminate Executive’s employment; provided that if the Company elects to so terminate Executive’s employment, Executive shall be entitled to receive, accrued but unpaid salary, expense reimbursement and bonuses, the proceeds of any disability insurance policy plus an amount from the Company monthly which, when added to the amount received by the Executive from any disability policy in effect for the Executive at the time of his disability will equal the Executive’s salary for a twelve-month period following the date of termination, as if the termination had not occurred. Such termination shall have no effect on the Company’s obligation to pay the special bonus referred to hereinbefore. Provided, however, in the event Executive partially perform and discharge the duties previously performed by him/her for Company, nothing herein shall prevent the Executive from continuing his/her duties in a part-time capacity, at a level of Compensation to be determined at that time.

(b) For purposes of this Agreement the term “disability” shall mean Executive’s inability to continue to materially and substantially perform and discharge the duties previously required of him/her on behalf of the Company for an aggregate period exceeding three (3) consecutive months within any twelve (12) month consecutive period.

(c) In the event


 
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