EMPLOYMENT
AGREEMENT
This Employment Agreement
(“Agreement”) is entered into effective as of as of the
“Effective Time” as defined in that certain Agreement
and Plan of Merger by and among Patient Infosystems, Inc., PATY
Acquisition Corp. and CCS Consolidated, Inc. (the “Merger
Agreement”), by and between Patient Infosystems, Inc., a
Delaware corporation (the “Company”), and Christine St.
Andre (“Employee”).
Conditioned on the successful
consummation of the Plan of Merger pursuant to the Merger Agreement
and in consideration of the mutual covenants and conditions set
forth herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the
parties hereby agree as follows:
1.
Employment . The Company hereby employs Employee in the
capacity of Chief Operating Officer, Provider Improvement
Subsidiary (“Subsidiary”), reporting to the President
of the Subsidiary. Employee accepts such employment and agrees to
diligently, conscientiously and exclusively perform such services
as are customary to such office and as shall from time to time be
assigned to her by an officer of the Company or by the President of
the Subsidiary. Employee’s employment will be on a full-time
business basis requiring the devotion of substantially all of her
productive business time for the efficient and successful operation
of the business of the Company. It is understood and agreed that
while Employee may from time to time be asked to perform services
related to the business of the Company and not specifically related
to the Subsidiary, the majority of her time is to be spend on the
business of the Subsidiary.
2.
Conditional Agreement; Term . Should Plan of Merger not be
consummated and the Effective Time not occur, this Agreement shall
not become effective. Should this Agreement become effective, the
employment hereunder shall be for a one year period commencing at
the Effective Time, unless earlier terminated as provided in
Section 4 (the “Initial Term”). This Agreement shall be
automatically renewed for successive one-year periods upon the
expiration of the Initial Term unless earlier terminated as
provided in Section 4. The parties expressly agree that designation
of a term and renewal provisions in this Agreement does not in any
way limit the right of the parties to terminate this Agreement at
any time as hereinafter provided. Reference herein to the term of
this Agreement shall refer both to the Initial Term and any
successive term as the context requires.
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3.
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Compensation and
Benefits
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3.1
Salary . For the performance of Employee’s duties
hereunder, the Company shall pay Employee a salary at the
annualized rate of $210,000 (the “Base
Compensation”).
(a) Beginning in calendar year 2006,
and thereafter while this Agreement is in effect, Employee will be
eligible for a calendar year bonus if (a) the Board of Directors
determines in its sole reasonable discretion that the EBITDA for
the Subsidiary for the year has exceeded $1,000,000, and (b) the
Employee remains employed by the Company through December 31 of the
calendar year. If both these conditions are met, the calculation of
EBITDA and, if applicable, the calculation of Employee’s
bonus shall be based on Generally Accepted Accounting Principals
(“GAAP”), consistently applied, and according to the
following formula: 8% of the EBITDA of the Subsidiary over
$1,000,000 but less than $2,000,000; 12% of the EBITDA of at least
$2,000,000 but less than $3,000,000; 16% of the EBIDTA of at least
$3,000,000 but less than $4,000,000; and 20% of the EBITDA over
$4,000,000. For purposes of determining EBITDA, expenses charged to
the Subsidiary will include direct expenses plus a fixed corporate
overhead charge negotiated between the Company and the Subsidiary
to reflect actual costs of
corporate services provided to the
Subsidiary ( e.g. legal and financial services). The bonus
shall be paid within ten (10) days of the Company’s receipt
of audited financial statements for the year.
(b) The Employee will be eligible
during the term of this Agreement for such bonus payments as
awarded to the Employee by the Board of Directors of the
Company.
3.3
Payment and Withholding . All payments required to be made
by the Company to the Employee shall be made in accordance with the
Company’s normal payroll practices and shall be subject to
the withholding of such amounts, if any, relating to tax and other
payroll deductions as the Company may reasonably determine should
be withheld pursuant to any applicable law or
regulation.
3.4
Personnel Policies and Benefits . Unless otherwise specified
herein, the Employee’s employment is subject to the
Company’s personnel policies and procedures as they may be
interpreted, adopted, revised or deleted from time to time in the
Company’s sole discretion. The Employee will be eligible to
participate on the same basis as similarly situated employees in
the Company’s benefit plans in effect from time to time
during her employment. For this purpose, Employee will be
considered “similarly situated” to the executive level
officers of the Company. All matters of eligibility for coverage or
benefits under any benefit plan shall be determined in accordance
with the provisions of the plan. The Company reserves the right to
change, alter, or terminate any benefit plan in its sole
discretion. While this Agreement is in effect the Company agrees to
maintain at its expense a group life insurance program in which the
Employee is eligible to apply for coverage and name the beneficiary
or beneficiaries and a group long term disability insurance program
in which the Employee is eligible to apply for coverage.
3.5
Stock Options . From time to time the Company may grant to
Employee options under the Company’s then current Stock
Option Plan to purchase shares of the Company’s common stock
at a stated exercise price per share. Any options granted will vest
and be exercisable in accordance with a Stock Option Agreement to
be executed pursuant to the Company’s Stock Option Plan.
Employee will participate in any stock grant program established by
the Company on the same basis as similarly situated
employees.
3.6
Reimbursement of Expenses . Employee shall be eligible to be
reimbursed for all reasonable business expenses, including but not
limited to expenses for home office operation, cellular telephone,
BlackBerry, travel, meals and entertainment, incurred by Employee
in connection with and reasonably related to the furtherance of the
Company’s business in accordance with the Company’s
policy. Employee shall submit expense reports and receipts
documenting the expenses incurred in accordance with Company
policy.
4.1
Termination Events . The employment of the Employee and the
Term of this Agreement will terminate upon the occurrence of any of
the following events (“the Termination
Event”):
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(a)
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The Employee’s
Death;
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(b) The
Employee’s “Disability”, defined, subject to
applicable state and federal law, as termination by the Company
because the Employee is unable to perform the essential functions
of Employee’s position (with or without reasonable
accommodation as such term is defined in the Americans with
Disabilities Act) for six months in the aggregate during any twelve
month period. This definition shall be interpreted and applied
consistent with t