Document:

Exhibit
10.15

 

FIRST
ADDENDUM TO EMPLOYMENT AGREEMENT

 

This FIRST ADDENDUM TO EMPLOYMENT AGREEMENT (this “Addendum”)
is made and entered into this 30th day of July, 2007 with an effective date of July 1,
2007 (the “Addendum Effective Date”) with reference to that certain
Employment Agreement (the “Agreement”) dated May 17, 2007, by and
between OnCURE Medical Corp. (the “Corporation”) and David S. Chernow
(the “Employee”).

 

RECITALS

 

A.            The
Employee serves as Chief Executive Officer of the Corporation.

 

B.            The
Corporation owns, manages and intends to acquire additional entities, which
provide (1) radiation therapy, medical oncology and related oncology
services and (2) physician practice management services for medical and
radiation oncologists.

 

C.            The
Employee and the Corporation desire to amend the Agreement as set forth herein.

 

D.            Terms not defined in this Addendum shall have the
meanings ascribed to them in the Agreement.

 

NOW, THEREFORE, in consideration of the foregoing
and of the respective covenants and undertakings hereunder and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, intending to be legally bound, the parties hereto do hereby agree
as follows:

 

1.             Amendment.
The Agreement shall be amended as follows:

 

Section 7.1            “Salary” is deleted in
its entirety and replaced with the following:

 

“Section 7.1  Salary.  Commencing on
the Employment Commencement Date, the Corporation shall pay the Employee an
annual base salary of Five Hundred Thousand dollars ($500,000), which amount
shall thereafter be reviewed by the Board or the Compensation Committee at the
end of each fiscal year commencing with the fiscal year ending December 31,
2007. The Employee’s salary may also be increased from time to time in the
discretion of the Board. The Corporation will pay the Employee his annual
salary in accordance with the Corporation’s normal payroll practices.”

 

 

Section 7.2            “Annual Bonus” is deleted in
its entirety and replaced with the following:

 

“Section 7.2  Annual Bonus.  The Employee
shall be eligible to earn an annual bonus as determined by the Compensation
Committee or Board. The bonus will be based upon the achievement by the
Corporation of certain objectively determinable financial performance targets
directly tied to revenue growth and EBITDA performance of the Corporation or
such other objectives established by the Board or the Compensation Committee
and approved by the Board. For each year of the Term, the Corporation shall
adopt an annual bonus program affording the Employee an opportunity to earn
bonuses equal to 100% of his annual base salary. Notwithstanding the foregoing,
the Executive’s bonus for 2007 (i.e., $250,000 which is pro-rated for six
months of service in 2007) shall be based upon the following criteria:

 

(a)          50% of the 2007 bonus
($125,000) shall be earned and payable in accordance with the terms and
conditions of the Corporation’s 2007 Executive Incentive Plan based upon the
Corporation earning $30.5 million of EBITDA for 2007; provided, however,
certain expenses not budgeted during the 2007 budgeting process such as
incremental salary and benefit expenses (i.e., CFO, CIO and VP of Recruiting);
the engagement of The Breakaway Group; Delaware franchise taxes related to the
2006 formation of Holdings; the additional expense/accrual related to the
change in auditors; and the amount of 2006 discretionary bonuses paid in excess
of the 2006 bonus accrual shall be excluded from the calculation of EBITDA for
2007; and

 

(b)         50% of the 2007 bonus ($125,000)
shall be based upon Executive’s successful completion of the following by December 31,
2007:

 

(i)                      hiring of a new
Chief Financial Officer ($41,667);

 

(ii)                   identifying and securing the
commitment of a qualified radiation oncologist to become the Corporation’s
Medical Director ($41,667); and

 

(iii)                delivery to the Board of a
written strategic plan for the Corporation ($41,667).”

 

Section 7.4            “Options” is amended
by deleting the first sentence thereof and replacing it with the following:

 

“On or as soon as reasonably practicable following the Employment
Commencement Date, and subject to approval by the Compensation Committee or
Board, the Employee will receive an option to purchase 773,574 shares of Common
Stock, at an exercise price of $3.50 per share, pursuant to the terms of
Holdings’ Equity Incentive Plan (the “Stock Options”).”

 

2.             General
Provisions.

 

2.1.          Reference
to and Effect on the Agreement. This Addendum modifies the Agreement to the
extent set forth herein, is hereby incorporated by reference into the Agreement
and made a part thereof. Except as specifically amended by this Addendum, the
Agreement shall

 

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remain in full force and effect and is hereby ratified and confirmed.
The execution, delivery and performance of this Addendum shall not constitute a
waiver of any provision of, or operate as a waiver of any right, power or
remedy of the parties to the Agreement.

 

2.2.          Governing
Law.   This Addendum shall be governed by, and construed and
enforced in accordance with, the laws of the State of California.

 

2.3.          Captions.   The
captions or headings in this Addendum are made for convenience and general
reference only and shall not be construed to describe, define or limit the
scope or intent of the provisions of this Addendum.

 

2.4.          Severability.   The
provisions of this Addendum shall be deemed severable and if any portion shall
be held invalid, illegal or unenforceable for any reason, the remainder of this
Addendum shall be effective and binding upon the parties.

 

2.5.          Counterparts.   This
Addendum may be executed in one or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the parties and delivered to the
other party, it being understood that all parties need not sign the same
counterpart. Delivery of a copy of this Addendum bearing an original signature
by facsimile transmission or by electronic mail in “portable document format”
shall have the same effect as physical delivery of the paper document bearing
the original signature.

 

2.6.          Parties
in Interest.   Nothing expressed or implied in this Addendum
is intended or shall be construed to confer upon or give to any Person other
than the parties hereto any rights or remedies under or by reason of this
Amendment or any transaction contemplated hereby.

 

2.7.          No
Prejudice.   This Agreement has been jointly prepared by the
parties hereto and the terms hereof shall not be construed in favor of or
against any party on account of its participation in such preparation.

 

(Remainder
of page intentionally left blank.)

 

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IN WITNESS WHEREOF, the parties hereby execute this
Addendum as of the Addendum Effective Date.

 

	
   

  	
   

  	
  ONCURE MEDICAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Russell D. Phillips, Jr.

  
	
   

  	
   

  	
  Name:

  	
  Russell D. Phillips, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David S. Chernow

  
	
   

  	
   

  	
  Name:

  	
  David S. Chernow

  

 

4Exhibit 10.16

 

SECOND
AMENDMENT TO EMPLOYMENT AGREEMENT

 

This second amendment (the “Amendment”)  to the Employment
Agreement by and between Oncure Medical Corp. (the “Corporation”) and
David S. Chernow (the “Employee”),  dated
as of December 17, 2008, is hereby made and entered into effective as of December 17,
2008, by and between the Corporation and the Employee.

 

WHEREAS, the Corporation
and the Employee entered into the Employment Agreement dated as of May 17,
2007 (the “Agreement”);  and

 

WHEREAS, the Corporation
and the Employee desire to amend the Agreement to conform the Agreement to the
requirements of Section 409A of the Internal Revenue Code of 1986, as
amended, and the Treasury Regulations and Internal Revenue Service guidance
thereunder.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements of the parties set forth
in this Amendment, and other good and valuable consideration, the parties
hereto, intending to be legally bound, agree as follows:

 

1.             Section 11.11
of the Agreement is hereby amended in its entirety to read as follows:

 

11.11.             Compliance with Section 409A
of the Internal Revenue Code.

 

(a)  All payments
of “nonqualified deferred compensation” (within the meaning of Section 409A
of the Code (together with Department of Treasury regulations and other
official guidance issued thereunder, “Section 409A”)) are intended to comply with the
requirements of Section 409A, and shall be interpreted in accordance
therewith. No party individually or in combination with any other may accelerate
any such deferred payment, except in compliance with Section 409A, and no
amount shall be paid prior to the earliest date on which it is permitted to be
paid under Section 409A.

 

(b)  Unless
otherwise expressly provided, any payment of compensation by the Corporation to
the Employee, whether pursuant to this Agreement or otherwise, shall be made
within two and one-half months (21/2 months) after the end of the
later of the calendar year or the Corporation’s fiscal year in which the
Employee’s right to such payment vests (i.e., is not subject to a substantial
risk of forfeiture for purposes of Section 409A). Such amounts shall not
be aggregated with any other payments and shall not be subject to the
requirements of subsection (d) below applicable to “nonqualified deferred
compensation.”

 

(c)  Notwithstanding
anything in this Agreement to the contrary, to the extent that any payment or
benefit constitutes non-exempt “nonqualified deferred compensation” for
purposes of Section 409A, and such payment or benefit would otherwise be
payable or distributable hereunder by reason of the Employee’s termination of
employment, all references to the Employee’s termination of employment shall be
construed to mean a “separation from service,” as defined in Treasury
Regulation Section 1.409A-1(h) (a

 

1

 

“Separation from Service”), and the Employee shall not be considered to have a termination of
employment unless such termination constitutes a Separation from Service with
respect to the Employee. If this Section 11.11(c) applies, such
payments or benefits that are subject to Section 409A shall be paid (or,
in the event of any installment payments, shall commence to be paid) on the
date that the Corporation determines within sixty (60) days following the date
of the Employee’s Separation from Service.

 

(d)  Notwithstanding
anything in Section 11.11(c) to the contrary, if the Employee is a “specified
employee” on the date of the Employee’s Separation from Service, any benefit or
payment that constitutes non-exempt “nonqualified deferred compensation”
(within the meaning of Section 409A) shall be delayed in order to avoid a
prohibited payment under Section 409A(a)(2)(B)(i) of the Code, and
any such delayed payment shall be paid to the Employee in a lump sum during the
ten (10) day period commencing on the earlier of (i) the expiration
of the six-month period measured from the date of the Employee’s Separation
from Service, or (ii) the Employee’s death. To the greatest extent
permitted under Section 409A, any separate payment or benefit under the
Agreement will not be deemed to constitute “nonqualified deferred compensation”
subject to Section 409A and the six-month delay requirement to the extent
provided in the exceptions in Treasury Regulation Section 1.409A-1(b)(4), Section 1.409A-1(b)(9) or
any other applicable exception or provision of Section 409A.

 

(e)  Section 11.11(d) above
shall not apply to that portion of any amounts payable upon a Separation from
Service which shall qualify as “involuntary severance” under Section 409A
because such amount does not exceed the lesser of (1) two hundred percent
(200%) of the Employee’s annualized compensation from the Corporation for the
calendar year immediately preceding the calendar year during which the
Separation from Service occurs, or (2) two hundred percent (200%) of the
annual limitation amount under Section 401(a)(17) of the Code for the
calendar year during which the Separation from Service occurs.

 

(f)  With respect
to any continuation healthcare coverage provided under the Agreement, if during
the period of continuation coverage, any plan pursuant to which such benefits
are provided ceases to be exempt from the application of Section 409A
under Treasury Regulation Section 1.409A-1(a)(5), then an amount equal to
each such remaining premium shall thereafter be paid to the Employee as
currently taxable compensation in substantially equal monthly installments over
the remainder of the continuation coverage period.

 

(g)  With respect
to any reimbursements or in-kind benefits, such reimbursements or benefits
shall be provided in a manner that complies with Treasury Regulation Section 1.409A-3(i)(1)(iv),
including the following: (i) in no event shall such benefits or
reimbursements be provided later than the last day of the Employee’s taxable
year following the taxable year in which the expense was incurred or obligation
arose, (ii) the amount of expenses eligible for reimbursement, or in-kind
benefits provided, during the Employee’s taxable year may not affect the
expenses eligible for reimbursement, or in-kind benefits provided, in any other
taxable year of the Employee, and (iii) the right to reimbursements or
in-kind benefits is not subject to liquidation or exchange for another benefit.

 

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(h)  For purposes
of this Agreement any installment payments made on separate dates shall be
treated as a series of separate and distinct payments for purposes of Section 409A.

 

(i)  If the parties
hereto determine that any payments or benefits payable under this Agreement
intended to comply with Section 409A do not so comply, the Employee and
the Corporation agree to amend this Agreement, or take such other actions as
the Employee and the Corporation deem necessary or appropriate, to comply with
the requirements of Section 409A, while preserving benefits that are, in
the aggregate, no less favorable than the benefits as provided to the Employee
under this Agreement. If any provision of the Agreement would cause such
payments or benefits to fail to so comply, such provision shall not be
effective and shall be null and void with respect to such payments or benefits,
and such provision shall otherwise remain in full force and effect.
Notwithstanding anything herein to the contrary, no amendment may be made to
this Agreement if it would cause the Agreement or any payment hereunder not to
be in compliance with Code Section 409A.

 

2.             The
Agreement, as amended by this Amendment, shall remain in full force and effect
in accordance with the terms and conditions thereof. This Amendment may be
executed simultaneously in any number of counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Amendment on the date first written above.

 

	
   

  	
   

  	
  Oncure Medical Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Russell D Phillips, Jr.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Russell D Phillips, Jr.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  EVP & General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Employee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ David S. Chernow

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: David S. Chernow

  

 

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