Exhibit 10.1
EMPLOYMENT
AGREEMENT
THIS EMPLOYMENT
AGREEMENT (this “
Agreement ”), effective as of the 23
rd
day of October, 2006, is
by and between AMEDISYS, INC. (“ Amedisys
” or the “ Company ”), a Delaware
corporation having its principal place of business at 11100 Mead
Road, Suite 300, Baton Rouge, Louisiana, 70816, and John Giblin
(“ Executive ”), an individual of the full age
of majority and capacity.
RECITALS
WHEREAS, Amedisys owns, manages,
and/or operates agencies and facilities for the provision of home
health nursing services, in-home hospice care services, therapy
staffing services and nurse practitioner medical services to
patients and customers (collectively, the “ Business
”); and
WHEREAS, Amedisys has offered, and
Executive has accepted, the position of Chief Financial
Officer.
NOW THEREFORE, in consideration of
the premises, as well as other mutual promises and covenants
contained in this Agreement, the parties hereto agree as
follows:
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1.
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Incorporation of Recitals; Prior
Agreements .
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1.1
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Recitals . The above recitations are incorporated herein
by this reference.
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2.
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Performance of Duties
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2.1
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Duties . Executive shall perform such duties as are
usually performed by the chief financial officer of a
publicly-traded company similar in size and scope to the Company.
Executive shall also perform such other reasonable additional
duties as may be prescribed from time to time by the
Company’s Board of Directors (the “ Board
”), and Chief Executive Officer, consistent with the
expectation of the Company and the Company’s operations and
taking into account Executive’s expertise and job
responsibilities, including but not limited to adherence to
internal compliance policies, regulatory agency rules and
regulations and applicable Federal and State laws. Executive shall
have the title of Chief Financial Officer and shall report directly
to the Company’s Chief Executive Officer (or his designee)
and indirectly to both the Company’s President and Chairman
of the Audit Committee of the Company’s Board. Nothing herein
shall prohibit or restrict the Company’s Board or Chief
Executive Officer from changing the title and job responsibilities
of Executive, in its or his discretion, as may be necessitated by
the ongoing conduct of the Company’s Business. Executive
shall carefully avoid all personal acts that might in any way,
directly or indirectly, harm the reputation of the
Company.
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2.2
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Devotion of
Time . Executive agrees
to actively and industriously devote his time and attention to the
business affairs of the Company to the extent necessary to
discharge the responsibilities assigned to him and to use his
reasonable best efforts to perform faithfully and efficiently such
responsibilities. During the term of this Agreement, Employee shall
not render services to or be employed by a party other than the
Company unless authorized to do so by the Company.
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3.
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Term of
Employment . This
Agreement shall be effective as of the execution hereof and shall
continue for an indefinite period of time, subject to the
provisions of Section 5 hereto, it being expressly understood
and agreed to by the parties that the employment relationship
between the Company and Executive shall be “at
will.”
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4.1
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Base
Salary . In consideration
of Executive’s employment, Company shall pay Executive an
annual salary in the amount of Three Hundred Thousand Dollars
($300,000), which amount shall be payable in twenty-six
(26) biweekly payments according to the Company’s
regular payroll distribution schedule, subject to applicable
withholding and other taxes. Executive is eligible to receive
annual salary adjustments in conformity with the Company’s
policies, and Executive’s first salary review shall be
conducted on or before April 1, 2007. Should Executive receive
payments from an insurer while employed by the Company under the
provisions of any short term or long term disability plan provided
by the Company for its employees, the Company’s obligation to
pay the salary of Executive will be reduced by the amount of such
payments.
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4.2
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Bonus . Executive shall be eligible for a bonus in
accordance with the terms of the Company’s Corporate
Incentive Plan (as such plan may be amended, modified or terminated
by the Board from time to time) in an amount up to 50% of his
annual base salary (the “ Eligible Bonus Percentage
”) beginning in 2007. For fiscal year 2006, Executive shall
be eligible for a pro rata share of his Eligible Bonus Percentage,
based on his hire date. Bonuses are not guaranteed.
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4.3
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Additional
Consideration .
Notwithstanding anything in this Agreement to the contrary, if at
the time that Executive’s family permanently relocates from
Atlanta to Baton Rouge (as evidenced by Executive’s spouse
obtaining a Louisiana driver’s license), Executive’s
spouse is not permitted to continue his current (as of the date of
this Agreement) employment remotely, the Company shall increase
Executive’s base salary to a minimum of $350,000 (payable on
the biweekly payroll schedule described in Section 4.1, above)
in order to offset the loss of Executive’s spouse’s
salary.
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4.4
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Incentive
Compensation .
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4.4.1
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Grant of Restricted Stock
(Unvested Shares) upon Hire . As soon as practicable after the execution
date of this Agreement, Executive and the
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Company shall enter into a
restricted stock (unvested share) agreement pursuant to the terms
of the Company’s 1998 Stock Option Plan (which governs the
terms of all equity-based incentive compensation awarded to Company
employees). The restricted stock agreement shall provide that
Executive be granted 10,000 shares of restricted stock. The shares
of restricted stock shall vest according to the following schedule:
3,333 shares shall vest on the day before the fourth anniversary of
the execution date of this Agreement; 3,333 shares shall vest on
the day before the fifth anniversary of the execution date of this
Agreement; and 3,333 shares shall vest on the day before the sixth
anniversary of the execution date of this Agreement.
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4.4.2
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Subsequent
Grants of Restricted Stock (Unvested Shares)
. As soon as practicable upon the
second, third and fourth anniversaries of the execution date of
this Agreement, respectively, Executive and the Company shall enter
into a restricted stock (unvested share) agreement pursuant to
which Executive shall be granted 5,000 shares of restricted stock.
The shares of restricted stock shall vest according to the
following schedule: 1,667 shares shall vest on the day before the
fourth anniversary of the execution date of the restricted stock
agreement; 1,667 shares shall vest on the day before the fifth
anniversary of the execution date of the restricted stock
agreement; and 1,667 shares shall vest on the day before the sixth
anniversary of the execution date of the restricted stock
agreement.
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4.4.3
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Adjustment
of Restricted Stock (Unvested Share) Grants in the Event of a Stock
Split . Should the
Company engage in a stock split at any time between the execution
date of this Agreement and the termination date of this Agreement,
the number of shares of restricted stock that the Company is
obligated to grant to Executive in accordance with Sections 4.4.1
and 4.4.2 above shall be adjusted to reflect the stock split in the
same manner as shares of the Company’s common stock would be
adjusted on the record date of the split. For example, if the
Company’s Board of Directors approves a four-for-three stock
split that has a record date subsequent to the date that Executive
receives the restricted stock grant described in Section 4.4.1
above and before the second anniversary date of this Agreement, the
number of shares of restricted stock granted to Executive upon the
second, third and fourth anniversaries of the execution date of
this Agreement would be adjusted to reflect the split such that
6,668 shares of restricted stock (rounding up to the next whole
share) would be granted on the second, third and fourth
anniversaries of the execution date of this Agreement, in each case
pursuant to a restricted stock (unvested share) agreement entered
into between the Company and Executive. The restricted stock
vesting schedule described in Section 4.4.2 would remain the
same after any such adjustment.
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4.4.4
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Forfeiture;
Accelerated Vesting .
Each restricted stock agreement executed by Executive shall
provide:
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a.
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If Executive is
terminated by the Company for cause (as defined in
Section 5.1.1, below) or if Executive voluntarily terminates
his employment with the Company, he shall forfeit his right to all
unvested shares of restricted stock in accordance with the
forfeiture terms of the restricted stock agreement.
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b.
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If Executive is
terminated by the Company without cause prior to the fifth
anniversary of the execution date of this Agreement, all unvested
shares out of his initial grant of 10,000 shares of restricted
stock (as provided by Section 4.4.1 of this Agreement) shall
vest at the alternate rate of 20% per year over the five-year
vesting period (for example, if Executive is terminated by the
Company without cause between the third and fourth anniversaries of
the execution date of this Agreement, Executive shall become 60%
vested in his restricted with the remaining 40% vesting ratably on
the fourth and fifth anniversaries of the execution date of this
Agreement).
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c.
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If Executive is
terminated by the Company without cause following a Change in
Control (as defined in Section 5.1.3(b) below), executive
shall immediately become 100% vested in all shares of restricted
stock previously issued to him.
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4.5
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Relocation
Costs . The Company shall
reimburse Executive (up to an amount mutually agreeable to
Executive and the Company) for home/apartment rental charges on a
monthly basis for a period of one year from the execution date of
this Agreement. The Company shall also reimburse Executive for
out-of-pocket expenses related to airfare for weekly trips between
Baton Rouge, Louisiana and Atlanta, Georgia; provided, ho w
ever , that all such travel arrangements must be made though
a Company-approved travel agent. The Company shall also reimburse
Executive (in an aggregate amount no greater than $50,000) for
direct moving costs, inclusive of tax liability, incurred in
connection with his relocation to the Baton Rouge, Louisiana
metropolitan area. In the event of any tax liability incurred as a
direct result of the reimbursements contemplated by this
Section 4.5, the Company will assume the tax
liability.
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4.6
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Professional
Organization Membership Fees; Professional
Certifications . The
Company will reimburse Executive for all out-of-pocket membership
fees/dues for professional organizations and annual maintenance
fees for professional certifications.
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5.
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Termination of Employment
. Executive’s employment may
be terminated at any time in accordance with, and subject to, the
following terms and conditions:
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5.1
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Termination
by Company . The Company
shall have the right to terminate Executive’s employment,
with or without cause, upon notice to Executive, at any time and
subject to the sole discretion of the Company.
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5.1.1
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Termination
of Employment for Cause .
The Company may terminate Executive’s employment if such
termination is for “cause,” which shall specifically
include, but shall not be limited to the following
occurrences:
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a.
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A material
default or breach by Executive of any of the provisions of this
Agreement which breach is detrimental to the Company or the
Business;
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b.
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Actions by
Executive constituting fraud, abuse, criminal activity (other than
motor vehicle infractions) or embezzlement;
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c.
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Intentionally
furnishing materially false, misleading, or ommissive information
to the Company’s Chief Executive Officer, Chief Operating
Officer and President or to the Board or any committee thereof
(specifically including the Company’s Audit Committee and/or
Compliance Committee);
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d.
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Actions
constituting a breach of the confidentiality of the Business and/or
trade secrets of the Company;
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e.
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Violation of
the restrictive covenants contained in this Agreement;
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f.
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Willful failure
to follow reasonable and lawful directives of the Company’s
Chief Executive Officer, Chief Operating Officer and President or
the Board, which are consistent with Executive’s job
responsibilities and performance as defined by the Board or Chief
Executive Officer in its or his discretion;
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g.
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Death of
executive, in which case employment shall automatically terminate
as of date of death;
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h.
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Disability of Executive;
Executive shall be considered “disabled” if
(i) due to physical or mental illness or injury, Executive
shall have been absent from his duties hereunder on a full-time
basis for at least twelve (12) consecutive weeks or absent
from his duties hereunder on a part-time basis for periods
aggregating twelve (12) weeks in any twelve (12) month
period and (ii) Executive is determined by a physician
designated by the Company to be incapacitated or disabled and a
physician designated by Executive
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concurs in such determination. In
the event the two physicians are in disagreement regarding
Executive’s condition, they shall seek a third physician
designated by both physicians whose determination shall be binding
for the purposes of this Agreement. Executive hereby agrees to
submit to medical examinations as necessary to make such
determinations.
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5.1.2
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Effect of
Termination of Employment for Cause . In the event that the Company terminates the
employment of Executive for cause, Executive shall cease to be an
employee of Company and shall cease to have any power or authority
of his position as of the effective date of the termination. In
such event, Executive shall forfeit any unearned salary or other
compensation, and the Company shall be relieved of any further
obligation under this Agreement. Further, Executive shall forfeit
and shall not be entitled to any bonus compensation, the payment
date of which would occur after the date of termination for cause.
In such event, Executive shall also not be entitled to receive
Severance Compensation (as defined in Section 5.3, below).
Notwithstanding the foregoing, in the event that Executive is
terminated for cause, Executive shall nonetheless remain bound by
the provisions of Sections 7 and 8 hereof and shall continue to
abide by its restrictions for the duration provided
therein.
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5.1.3
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Effect of
Termination of Employment Without Cause or upon a Change In
Control .
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a.
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In the event
that the Company terminates the employment of Executive without
cause or if Executive’s employment is terminated by the
Company or by the acquiring surviving entity upon a Change of
Control (as defined below), Executive shall cease to be an employee
of Company and shall cease to have any power or authority of his
position as of the effective date of the termination. In such
event, the Company will discontinue compensation payments (as
provided in Section 4 herein) to Executive and shall be
relieved of further obligation to Executive under this Agreement,
except for the obligation to provide Severance Compensation to
Executive pursuant to Section 5.3 below. Executive shall at
all times remain bound by the provisions of Sections 7 and 8 hereof
and shall continue to abide by its restrictions for the duration
provided therein.
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b.
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For purposes of this Agreement, a
“Change in Control” is the acquisition by any person,
entity or “group” within the meaning of
Section 13(d) or 14(d) of the Securities Exchange Act of 1934
(the “Exchange Act”) of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of
more than fifty percent (50%) of either the then outstanding
shares of the
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Company’s common stock or the
combined voting power of the Company’s then outstanding
voting securities entitled to vote generally in the election of
directors; provided however, purchase by underwriters in a firm
commitment public offering of the Company’s securities or any
securities purchased for investment only by professional investors
shall not constitute a Change of Control.
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c.
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In the event
that Executive’s employment is terminated by the acquiring
surviving entity upon a Change of Control, all unvested
equity-based compensation (for example, stock options, restricted
stock, stock appreciation rights, etc.) previously awarded to
Executive under the terms of any employee stock incentive plan
adopted by the Company shall immediately vest and shall
automatically become exercisable or transferable, as the case may
be.
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5.2.
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Termination
of Employment by Executive . Executive may terminate his employment with
the Company upon ninety (90) days written notice to the
Company. Such notice shall set forth in sufficient detail the
reasons underlying said termination. In such event, Executive shall
cease to be an employee of Company and shall cease to have any
power or authority of his position as of the effective date of
termination ( i.e. , ninety (90) days following
submission of notice) or such earlier time as the Company may elect
in its sole discretion; at which time the Company shall be relieved
of further obligation to Executive, including the payment of
further compensation as outlined in Section 4 herein. In the
event that Executive terminates his employment with the Company,
the Company may but shall have no obligation to issue Severance
Compensation to Executive pursuant to Section 5.3 below.
Notwithstanding the foregoing, Executive agrees to remain bound by
the provisions of Sections 7 and 8 hereof upon voluntary
termination of his employment, and shall continue to abide by its
restrictions for the duration provided therein.
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5.3
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Severance
Compensation . In the
event that the Company is obligated to (pursuant to
Section 5.1 above) or agrees to (pursuant to Section 5.2
above) provide Executive Severance Compensation, Executive hereby
agrees that any such agreement or obligation on the part of Company
shall be conditioned upon and subject to Executive’s
execution of a Severance Agreement addendum to this Agreement
(hereinafter referred to as “ Severance Agreement
”), which shall contain all terms and conditions governing
Executive’s ongoing entitlement to receipt thereof,
specifically including but not limited to any restrictive covenants
contained therein. In such circumstances, Executive shall be
entitled to Severance Compensation in an amount equal to
(i) Executive’s current monthly salary times
(ii) the number of full months that Executive has been
employed by the Company, up to a maximum of twelve
(12) months, (hereinafter referred to as “ Severance
Compensation ”), payable in one lump sum no later than 10
business days after the
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execution date of the Severance
Agreement. Should, for any reason, Executive refuse or fail to
timely execute the Severance Agreement as presented by the Company,
Executive shall be deemed to have foregone the entirety of
Severance Compensation otherwise due or offered to his, and
Executive shall not be entitled to any further compensation from
Company.
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6.
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Representations by Executive
. Executive hereby represents to the
Company that he is physically and mentally capable of performing
his duties hereunder and he has no knowledge of present or past
physical or mental conditions that would cause his not to be able
to perform his duties hereunder. Executive further represents to
the Company that he has never been convicted of any criminal
offense (other than minor vehicle infractions) or found (either
through adjudication or settlement) civilly liable for any
violation of any federal or state health care fraud or abuse law.
Executive further represents to the Company that he has not been
sanctioned, excluded, debarred, suspended, or otherwise prohibited
from participation in a federal health care program pursuant to the
provisions of 42 U.S.C. Section 1320a et seq .
Executive further represents that he is not bound by any agreement
that prevents his entering into this Agreement or restricts or
limits his abilities to perform his duties hereunder.
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7.
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Confidentiality and Non-Disclosure of
Information .
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7.1
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Confidentiality . Executive shall not, during his employment
with the Company or at any time thereafter, divulge, disclose,
communicate, furnish, distribute, or make available or accessible
to anyone, without the Company’s prior written consent, any
knowledge or information with respect to any confidential or secret
aspect or trade secret of the Company or its Business which, if
disclosed, may reasonably be expected to have a material adverse
effect on the Company or its Business (the “ Confidential
Information ”).
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7.2
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Ownership of
Information . Executive
recognizes that any and all Confidential Information and copies or
reproductions or portions thereof relating to the Company’s
operations and activities made or received by Executive in the
course of his employment are and shall be the exclusive property of
the Company, and Executive holds and uses same as trustee and a
fiduciary for the Company and, at all times, subject to the
Company’s sole control; and Executive will deliver same to
the Company at the t
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