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Employment Agreement

 

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Title:

Employment Agreement

Entities:

Interdent Inc

Date:

2002

Size:

Preview shows 6KB of 31KB total

Price:

$36

ID:

#1528509

 

 

► Employment ► Employment Agreements

 

 

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                              EMPLOYMENT AGREEMENT


This Employment Agreement (this "Agreement"), is effective as of
September 5, 2001, by and between InterDent, Inc., a Delaware corporation (the
"Company"), and Wayne Posey ("Employee").

RECITAL:

WHEREAS, the Company desires to employ Employee for the period provided
in this Agreement, and Employee is willing to serve in the employ of the Company
for such period, each upon the terms and conditions provided in this Agreement.

NOW, THEREFORE, in consideration of the foregoing, the covenants set
forth in this Agreement and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

Section 1. Employment. The Company hereby agrees to employ Employee, and
Employee hereby accepts such employment, in each case upon the terms and
conditions set forth herein, for a period commencing as of September 5, 2001
(the "Commencement Date"), and ending on December 31, 2002 (the "Expiration
Date"), subject to earlier termination as set forth herein (such period, as it
may be so terminated, being referred to herein as the "Term").

Section 2. Duties and Services.

(a) Offices. During the Term, Employee shall serve as the Chairman and Chief
Executive Officer of the Company, and in such capacity shall hold the most
senior positions in the Company. In the performance of his duties hereunder,
Employee shall report to and shall be responsible to the Board of Directors of
the Company (the "Board").

(b) Primary Responsibilities. During the Term, Employee's duties and
responsibilities will be those customarily performed by a Chief Executive
Officer of a company of comparable size to the Company. Employee shall also
perform those duties that are assigned to him by the Board, which shall be
commensurate with his position as Chief Executive Officer.

Section 3. Compensation and Related Matters. As full compensation for his
services hereunder, the Company shall pay, grant, issue or give, as the case may
be, to Employee the compensation and benefits described below:

(a) Base Salary. The Company shall pay Employee $420,000 per annum ($35,000 per
month) from the Commencement Date through September 5, 2002, and $450,000 per
annum ($37,500 per month) from September 5, 2002 through the Expiration Date,
which base salary shall be paid to Employee in accordance with the customary
employee payroll policy of the Company as in effect from time to time.

(b) Incentive Bonus.

(i) Calendar Year 2001. The Company shall pay Employee an incentive bonus (the
"2001 Incentive Bonus") equal to 100% of the base salary earned through December
31, 2001. The 2001 Incentive Bonus shall be payable in one lump sum payment,
upon completion by the Company's outside auditors of their audit of the
Company's financial statements for the year ended December 31, 2001.

(ii) Calendar Year 2002. The Company shall pay Employee an incentive bonus (the
"2002 Incentive Bonus") if the Company meets the earnings before interest,
taxes, depreciation and amortization ("EBITDA") objective for calendar year
2002, which EBITDA objective shall be $27,000,000 (with adjustments as necessary
to reflect items beyond Employee's control, including, but not limited to,
elimination of consulting fees and legal fees). If the Company's actual EBITDA
equals the EBITDA objective, the Company will pay Employee a bonus equal to 100%
of the base salary provided to be paid from January 1, 2002 through December 31,
2002 pursuant to Section 3(a) (the "2002 Base Salary"). If the Company's actual
EBITDA is less than the EBITDA objective then the Company will pay Employee a
bonus pursuant to the following table:

Percentage of EBITDA Percentage of 2002 Base Salary
Objective Met Due as Incentive Bonus

99% 97%

98% 93%

97% 88%

96% 82%

95% 75%

Less than 95% 25%

If the Company's actual EBITDA exceeds the EBITDA objective, then for each 1%
over which the actual EBITDA exceeds the EBITDA objective, the Company shall pay
Employee an amount equal to 3% of 2002 Base Salary. In calculating additional
amounts due, any partial percentage point over which the actual EBITDA exceeds
the EBITDA objective shall be calculated on a pro rata basis with respect to the
incremental 3% increase.

(iii) Payment of 2002 Incentive Bonus. The Company shall make quarterly advances
against the 2002 Incentive Bonus to Employee at a rate of 50% of the 2002 Base
Salary earned during each quarter, payable on each of April 1, 2002, July 1,
2002, October 1, 2002, and December 31, 2002. To the extent that the aggregate
amount paid to Employee pursuant to this Section 3(b)(iii) exceeds the amount of

 

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