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Employment Agreement

 

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Title:

Employment Agreement

Entities:

LXU Healthcare, Inc.; PrimeSource Healthcare Inc.; Skadden, Arps, Slate, Meagher & Flom LLP

Date:

2002

Size:

Preview shows 5KB of 42KB total

Price:

$45

ID:

#1388413

 

 

► Employment ► Employment Agreements
► Healthcare ► Medical Equipment & Supplies
► Services ► Legal

 

 

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<SEQUENCE>3

<FILENAME>exhibittenone.txt
<TEXT>
EMPLOYMENT AGREEMENT
--------------------

This EMPLOYMENT AGREEMENT ("AGREEMENT"), entered into between PrimeSource
Healthcare, Inc., a Massachusetts corporation ("COMPANY"), and Bradford C.
Walker, an individual ("EXECUTIVE"), is effective upon the Initial Closing (as
defined in the Purchase Agreement dated as of August 6, 2002) (the "Effective
Date").

1. EMPLOYMENT.
----------

(a) EXECUTIVE RESPONSIBILITIES. The COMPANY hereby employs the
EXECUTIVE, and the EXECUTIVE hereby agrees to accept employment from the
COMPANY, as President and Chief Executive Officer of the COMPANY. The EXECUTIVE
shall report directly to the COMPANY'S Board of Directors. The EXECUTIVE agrees
during the term of his employment under this Agreement to perform the duties and
responsibilities customarily required of such position, as reasonably directed
by the COMPANY'S Board of Directors, and in accordance with the COMPANY'S bylaws
and applicable state corporation law. The EXECUTIVE further agrees to devote his
full business time and energies to the business and affairs of the COMPANY,
unless otherwise authorized by the Board of Directors of the COMPANY. The
EXECUTIVE may, however, engage in civic and not-for-profit activities so long as
such activities do not materially interfere with the performance of his duties
to the COMPANY hereunder.

(b) DIRECTOR RESPONSIBILITIES. Subject to obtaining any necessary
stockholder consents, the EXECUTIVE shall be elected a member of the Board of
Directors, to serve in such position until the next regular meeting of the
COMPANY'S stockholders. The EXECUTIVE'S continued service on the COMPANY'S Board
of Directors thereafter shall be subject to his election by vote of the
stockholders, but the COMPANY will include the EXECUTIVE in its recommended
slate of candidates for membership on the Board. In the event that the
EXECUTIVE'S employment with the COMPANY under this Agreement is terminated for
any reason, the EXECUTIVE shall promptly submit to the Chairman of the Board his
resignation as a Director.

2. TERM OF EMPLOYMENT. The employment under this Agreement shall commence
as of the Effective Date and shall end at the end of the day on the second
yearly anniversary of the Effective Date (the "EXPIRATION DATE"), unless
otherwise terminated earlier pursuant to paragraph 5 of this Agreement.

3. COMPENSATION.
------------

(a) BASE SALARY. As compensation for services provided to the
COMPANY, the EXECUTIVE shall receive an initial salary at the annual rate of
$250,000, less such payroll and withholding taxes as required by law to be
deducted and any such other amounts as the EXECUTIVE shall authorize in writing.
The salary shall be payable in semi-monthly installments. Such salary shall be
reviewed by the Board of Directors at least annually at the end of each year of
employment hereunder. Such salary may be increased, but not decreased, from time
to time as decided in the discretion of the Board of Directors of the COMPANY.


<PAGE>
(b) BONUSES. The Compensation Committee of the COMPANY'S Board of
Directors shall institute an incentive bonus program in which the EXECUTIVE will
be eligible to participate during each employment year (beginning with the
fiscal year that ends immediately following the Effective Date) while the
EXECUTIVE is employed by the COMPANY. Such bonus program shall provide the
EXECUTIVE a bonus based upon factors established by the Chairman of the
Compensation Committee, after consultation with the EXECUTIVE, and approved by
the Board of Directors; provided that, such annual bonus shall never be less
than $50,000.

(c) EQUITY COMPENSATION.
-------------------

(i) INITIAL OPTION TO PURCHASE COMMON STOCK. Upon the Effective
Date, the COMPANY shall grant to the EXECUTIVE an incentive stock option to

 

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