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Document Preview Employment Agreement |
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Title: |
Employment Agreement |
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Date: |
2001 |
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Preview shows 5KB of 36KB total |
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Price: |
$34 |
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ID: |
#1507883 |
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EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this "Agreement") dated as of June 8, 2000
(the "Effective Date"), between LifePoint Hospitals, Inc., a Delaware
corporation ("LifePoint" or the "Company") and James M. Fleetwood, Jr. (the
"Executive").
W I T N E S S E T H:
WHEREAS, LifePoint desires to secure the services of the Executive as
its Chairman of the Board of Directors and Chief Executive Officer, on the terms
and conditions set forth herein; and
WHEREAS, the Executive is willing to serve LifePoint as the Chairman of
the Board of Directors, a member of such Board and Chief Executive Officer,
LifePoint Hospitals, Inc. on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereby
covenant and agree as follows:
1. TERMS AND CONDITIONS OF EMPLOYMENT
(a) Employment. LifePoint hereby agrees to employ the Executive and the
Executive hereby agrees to remain in the employ of LifePoint on and subject to
the terms and conditions of this Agreement.
<PAGE> 2
(b) Positions, Duties and Responsibilities. The Executive at all times
shall serve as, and with the title, office, and authority of, the Chief
Executive Officer of LifePoint, reporting directly to the Board of Directors of
LifePoint (the "Board of Directors" or "Board") as well as serving as a member
of the Board and as the Chairman of the Board. LifePoint shall use its best
efforts to take such action as may be required to maintain the Executive's
status as such.
(c) Full-Time Employment. The Executive agrees to devote substantially
all of his professional working time and attention to the benefit of LifePoint
under the terms of this Agreement; provided, however, that nothing in this
Agreement is intended nor shall be construed as limiting or restricting the
Executive's right to engage in any activity that is unrelated to his position
specified in paragraph (b) above, including, without limitation, managing
private, passive investments, engaging in church, community, and civic
activities and other activities approved by the Board, and serving as a director
or a member of an advisory committee of any corporation or other entity on which
the Executive is serving as of the Effective Date or any other corporation or
entity that is not in competition with LifePoint, provided that such activities
do not impinge in any material way upon the requirement that the Executive
devote substantially all of his professional working time and attention to the
Company and perform the duties of his position specified in paragraph (b) above.
2. COMPENSATION
In consideration of the services rendered by the Executive during the
Agreement Term (as defined below), LifePoint shall (except as otherwise provided
in item (iii) of paragraph (b) below), pay or provide the Executive with the
compensation and benefits set forth below.
2
<PAGE> 3
(a) Salary. The Executive shall be paid a base salary (his "Base
Salary") equal to $350,000 per annum, payable in bi-weekly installments. His
Base Salary shall be reviewed not less than once each calendar year by the
Compensation Committee of the Board of Directors of LifePoint and may be
increased, but not decreased, in such Compensation Committee's sole and absolute
discretion.
(b) Annual Bonus. Effective for calendar year 2000, and continuing for
each subsequent calendar year ending during the Agreement Term, the Executive
shall be entitled to receive a bonus (an "Annual Bonus") based on the extent to
which LifePoint achieves or exceeds its target performance goals for the
relevant calendar year (the "Annual Targets"). Such Annual Bonus for any
calendar year shall equal 50% of his Base Salary (as in effect on the last day
of such year) if LifePoint shall achieve but not exceed the applicable Annual
Targets and shall exceed 50% of such Base Salary if LifePoint shall exceed the
applicable Annual Targets, but in no event shall such Annual Bonus exceed 100%
of such Base Salary. The establishment of Annual Targets for each calendar year,
the adjustment to be made in the Annual Bonus in the event of attainment of
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