Document:

EX-10.A: LETTER AGREEMENT RE: PAUL CONLIN

 

Exhibit 10(a)

May 27, 1998

Paul Conlin

Address

City, State zip

Dear Paul:

(It is our pleasure to extend to you an offer of employment at Oxford Health
Plans, Inc. (the “Corporation”), in the position of Vice President, Medical
Delivery. Your date of hire will be May 27, 1998. Your starting salary will
be at a gross amount (prior to necessary payroll deductions) of $16,666.67 per
month, which you will receive in bi-weekly payments of $7,692.31. In this
position you will report directly to me, and you will be working out of our
Norwalk, CT office.

During your employment with Oxford Health Plans, Inc. you will be eligible for
our benefits program in accordance with our policies. More specifically:

	 	1.	 	You will be eligible for a discretionary performance bonus, ranging
from zero to 75% of your earned base salary as recommended by your
manager and approved by the Chairman, CEO and Compensation Committee of
the Board of Directors.
	 
	 	2.	 	You will receive a $50,000 signing bonus, minus applicable taxes,
payable within thirty days of your start date.
	 
	 	3.	 	You will be granted 75,000 options, vesting in four equal annual
installments at a grant price to be determined upon your commencement
of employment with Oxford in accordance with Oxford’s current stock
option plan. In the event of a Change in Control all options will
vest. As a condition of your receipt of stock options, you will be
required to enter into Oxford’s standard Confidentiality and
Non-Competition Agreement. The protections provided by this Agreement
are necessary to safeguard Oxford’s confidential information and other
business interests. Please sign the attached documents and return to
Human Resources as soon as possible.
	 
	 	4.	 	You will be eligible to receive an automobile allowance of up to
$450 per month.
	 
	 	5.	 	Upon your commencement of employment with Oxford, you will be
eligible for Oxford’s Health Coverage (Medical, Dental, Vision and
Prescription Drug coverage). After your successful completion of 60
days of employment with Oxford, you will be eligible for Life, AD&D,
Disability Insurance and Tuition Reimbursement in accordance with plan
requirements.
	 
	 	6.	 	You will be eligible to participate in our 401k Savings Plan after
your successful completion of six months of continuous employment with
Oxford.
	 
	 	7.	 	Upon date of hire you will be eligible to begin accumulating 23
Select Days (paid days off) per calendar year. These days may be taken
after successful completion of 60 days of continuous employment with
Oxford.
	 
	 	8.	 	In the event that your employment is terminated by Oxford without
cause during the first

 

 

year of your employment, Oxford shall pay you an amount equal to your
annual base salary in effect as of your date of hire.

In the event that your employment is terminated by Oxford without cause
after your first year of employment, Oxford shall pay you an amount equal to
the sum of your base salary earned during the twelve month period
immediately preceding your date of termination. Such amount shall be paid
in twelve (12) equal monthly installments in conformity with Oxford’s normal
payroll periods.

	9.	 	In the event that your employment is terminated within 2 years
following a change in control either by the Corporation without cause
(other than for retirement or disability), or by you for good reason,
then the Corporation shall (1) pay you, within 10 days following your
date of termination, a lump sum cash amount equal to two times the sum
of your highest annual rate of base salary during the 3-year period
immediately preceding your date of termination and the highest annual
bonus earned by you in respect of three fiscal years immediately
preceding the year in which your termination occurs, (2) cause each
option to immediately vest and become exerciseable in full, and (3)
continue to provide, for a period of one year following your date of
termination, you (and your dependents if applicable) with the same
level of medical, dental, accident, disability and life insurance
benefits upon substantially the same terms and conditions (including
cost of coverage to you) as existed immediately prior to your date of
termination (or, if more favorable to you, as such benefits and terms
and conditions that existed immediately prior to the change in
control); provided that if you cannot continue to participate in the
plans providing such benefits, the Corporation shall otherwise provide
such benefits on the same after-tax basis as if continued participation
had been permitted. Notwithstanding the foregoing, in the event you
become reemployed with another employer and become eligible to receive
welfare benefits from such employer, the welfare benefits described
herein shall be secondary to such benefits during the period of your
eligibility, but only to the extent that the Corporation reimburses you
for any increased cost and provides any additional benefits necessary
to give you the benefits hereunder.
	 
	10.	 	Termination for cause shall mean termination because you (i) engage
in the following conduct in connection with your employment with the
Corporation: personal dishonesty, willful misconduct, breach of
fiduciary duty involving personal profit, breach of a restrictive
covenant against competition, disclosure of confidential information of
the Corporation, consistent intentional failure to perform stated
duties after notice, or (ii) willfully violate any law, rule, or
regulation (other than traffic violations or similar offenses), which
willful violation materially impacts the performance of your duties to
the Corporation.
	 
	11.	 	If, as a result of your incapacity due to physical or mental
illness, you shall have been absent from your duties hereunder on a
full-time basis for the entire period of six (6) consecutive months,
and within thirty (30) days after written notice of termination is
given (which may occur before or after the end of such six (6) month
period) shall not have returned to the performance of your duties
hereunder on a full-time basis, the Corporation may terminate your
employment hereunder for disability.
	 
	12.	 	Termination by you for good reason after a change in control shall
mean termination based on the occurrence without your express consent
of any of the following: (i) a significant diminution by the
Corporation of your duties and responsibilities, other than for cause
or disability, (ii) a reduction in your base salary, other than for
cause or disability and other than as part of an across-the-board
salary reduction generally imposed on executives of the Corporation or
(iii) any requirement of the Corporation that you be based anywhere
more than thirty miles from the office where you are located at the
time of the Change in Control.

 

 

	 	13.	 	Change in control, for the purposes of this agreement shall have
the same meaning ascribed thereto in Oxford’s 1991 Stock Option Plan.
	 
	 	14.	 	The severance payments hereunder may not be transferred, assigned,
or encumbered in any manner, either voluntarily or involuntarily. In
the event of your death, any payments then or thereafter due hereunder
will be made to your estate.
	 
	 	15.	 	The payments provided hereunder shall constitute the exclusive
payments due you from, and the exclusive obligation of, the Corporation
in the event of any termination of your employment, except for any
benefits which may be due you in normal course under any employee
benefit plan of the Corporation which provides benefits after
termination of employment.

The obligation to make the payments hereunder is conditioned upon your
execution and delivery to the Corporation of a release, in a form satisfactory
to the Corporation, of any claims you may have as a result of your employment
or termination of employment under any federal, state or local law, excluding
any claim for benefits which may be due you in normal course under any employee
benefit plan of the Corporation which provides benefits after termination of
employment. The obligation to make the payments hereunder is further
conditioned upon the terms set forth in paragraph 16 hereof.

	 	16.	 	You agree that any right to receive severance payments hereunder
will cease if during the one-year period following your termination of
employment you (1) directly or indirectly become an employee, director,
advisor of, or otherwise affiliated with, any other entity or
enterprise whose business is in competition with the business of the
Corporation, or (2) violate the terms of the Confidentiality and
Non-Competition Agreement.
	 
	 	17.	 	If a dispute or controversy arises concerning any provisions of
this agreement, it shall be resolved exclusively by arbitration in
Norwalk, Connecticut by three (3) arbitrators in accordance with the
rules of the American Arbitration Association then in effect. Judgment
may be entered on the arbitration award in any court having
jurisdiction. The Corporation shall bear all costs and expenses
arising in connection with any arbitration proceeding pursuant to this
section.
	 
	 	18.	 	In order for the Corporation to comply with government regulations
pertaining to the Immigration Reform and Control Act of 1986, we
require that you verify your identity and establish your right to work
within the United States by providing documentation as described in the
enclosed list entitled, “Acceptable Identification.” Please note that
one form of ID from column A is sufficient, or one item each from
column B and C. We will photocopy your identification and return the
originals to you immediately. It is imperative that you provide us
with this documentation on your first day of work; your failure to do
so will require us to delay your employment.
	 
	 	19.	 	This offer and your subsequent employment is contingent upon
successful results of a background check, which includes a
pre-employment drug test and reference and criminal checks. Enclosed
is a Quest Diagnostics drug screen form. Please bring this with you at
the time of your testing. Please contact their Patient Service Center
Locator at 800-225-7483 if there is not a Quest Diagnostics Lab
conveniently located near you.
	 
	 	20.	 	The employment relationship which exists between Oxford Health
Plans and you is an employment-at-will relationship. Under this
relationship, your employment with Oxford Health Plans is for no set
period of time, and may be terminated by either you or Oxford at any
time for any reason with or without cause and with or without notice;
provided,

 

 

however, that a termination without cause of your employment or good
reason after a change in control shall be governed in accordance with the
terms hereof.

	 	21.	 	All payments hereunder are subject to applicable withholding taxes.
	 
	 	22.	 	This agreement and the Confidentiality and Non-Competition
Agreement set forth the entire understanding with respect to the
subject matter hereof and supersedes all prior agreements, written or
oral or express or implied, between you and the Corporation as to such
subject matter. This agreement may not be amended, nor may any
provision hereof be modified or waived, except by an instrument in
writing duly signed by you and the Corporation.
	 
	 	23.	 	If any provision of this agreement, or any application thereof to
any circumstances, in is invalid, in whole or in part, such provision
or application shall to that extent be severable and shall not affect
other provisions or applications of this agreement.
	 
	 	24.	 	The terms of this agreement shall be governed by the laws of the
state of Connecticut without regard to its conflicts of laws
principles.

Please indicate your agreement by signing below and retain one copy for your
records.

	 	 	 
	/s/ PAUL CONLIN

	 	6/5/98

	Name

	 	Date

Welcome !

/s/ CHUCK BERG

Chuck Berg

Executive Vice President

Medical Delivery

CB:ch

EnclosureEX-10.B: LETTER AGREEMENT RE: PAUL CONLIN

 

Exhibit 10(b)

October 13, 1998

Paul Conlin

50 Pollard Road

Mountain Lakes, NJ 07046

Dear Paul:

This letter will confirm our decision regarding certain additional compensation
arrangements with Oxford Health Plans, Inc. (the Corporation), and will serve
as an addendum to your offer letter of employment, dated May 27, 1998, and
signed by you on June 5, 1998 (the “Offer Letter”).

Effective October 1, 1998, your salary will be at a gross amount (prior to
necessary payroll deductions) of $18,750 per month, which you will receive in
biweekly payments of $8,653.85. You will continue to be eligible for a
discretionary performance bonus consistent with the terms and conditions of the
Corporation’s management incentive program, ranging from 0 to 75% of your
earned base salary, as recommended by your manager and approved by the
Chairman, CEO and Compensation Committee of the Board of Directors. Your bonus
for the fiscal year of 1998, however, will be guaranteed at 75% of your earned
base salary and will be payable at such time when all other eligible employees
receive their corporate bonus.

In addition, in the event that your employment is terminated within 2 years
following a change in control either by the Corporation without cause (other
than for retirement or disability), or by you for good reason, then the
Corporation shall (1) pay you, within 10 days following your date of
termination, a lump sum cash amount equal to two times the sum of your highest
annual rate of base salary during the 3-year period immediately preceding your
date of termination and the highest annual bonus earned by you in respect of
three fiscal years immediately preceding the year in which your termination
occurs, provided, however, for the fiscal year of 1998 the bonus amount shall
for these purposes be deemed to be not be less than $154,760, and (2) continue
to provide, for a period of one year following your date of termination, you
(and your dependents if applicable) with the same level of medical, dental,
accident, disability and life insurance benefits upon substantially the same
terms and conditions (including cost of coverage to you) as existed immediately
prior to your date of termination (or, if more favorable to you, as such
benefits and terms and conditions that existed immediately prior to the change
in control); provided that if you cannot continue to participate in the plans
providing such benefits,
the Corporation shall otherwise provide such benefits on the same after-tax
basis as if continued participation had been permitted. Notwithstanding the
foregoing, in the event you become reemployed with another employer and become
eligible to receive welfare benefits from such employer, the welfare benefits
described herein shall be secondary to such benefits during the period of your
eligibility, but only to the extent that the Corporation reimburse you for any
increased cost and provides any additional benefits necessary to give you the
benefits hereunder.

Any term used herein which is not otherwise defined shall have the meaning
attributed to it in your Offer Letter.

Sincerely,

/s/ CHUCK BERG

 

 

Chuck Berg
Executive Vice President
Medical Delivery

Agreed and accepted:

	 	 	 
	/s/ PAUL CONLIN

	 	10.14.98

	Paul Conlin

	 	Date

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