Document:

exv10w11

 

Exhibit 10.11

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (“Agreement”) is made as of    ,
2003 by and between Eclipsys Corporation, a Delaware corporation (the
“Company”), and [Name of Outside Director] (the “Indemnitee”).

     Whereas, Indemnitee is currently serving as an outside director of the
Company and the Company wishes Indemnitee to continue his service in such
capacity without concern of unwarranted personal liability;

     Whereas, the Company desires to attract and retain the services of highly
qualified individuals, such as Indemnitee, to serve as outside directors on the
Company’s Board of Directors (“Board”) and to indemnify its outside directors
so as to provide them with the maximum protection against personal liability
permitted by law;

     Whereas, the Company’s Third Amended and Restated Certificate of
Incorporation (the “Certificate of Incorporation”) authorizes the Company to
provide indemnification and to advance expenses to the full extent not
prohibited by Delaware law;

     Whereas, the Certificate of Incorporation also expressly recognizes that
the indemnification provisions of the Certificate of Incorporation is not
exclusive of, and does not affect, any other rights to which a person seeking
indemnification may be entitled under any agreement;

     Whereas, the Company wishes to provide Indemnitee with an independent
contractual right to indemnification and advancement of defense expenses in
addition to those rights provided in the Certificate of Incorporation;

     Now, Therefore, the Company and Indemnitee hereby agree as follows:

     1. Indemnification in Third Party Proceedings. The Company shall
indemnify, defend, and hold harmless Indemnitee from and against, and shall
compensate and reimburse Indemnitee for, any Damages (as defined below) that
are directly or indirectly suffered or incurred by Indemnitee as a result of,
or are directly or indirectly connected with, any threatened, pending or
completed action or proceeding (other than an action or proceeding by or in the
right of the Company to procure a judgment in its favor), whether civil,
criminal, administrative or investigative, to which Indemnitee is or was a
party, or is threatened to be made a party, by reason of, or arising from, the
fact that Indemnitee is or was a member of the Company’s Board, or the board of
directors of any subsidiary of the Company, by reason of any action or inaction
on the part of Indemnitee in his role as a member of the Company’s Board or by
reason of the fact that Indemnitee is or was serving at the request of the
Company as a director, officer, employee, agent or fiduciary of the Company or
of another corporation, partnership, joint venture, trust or other enterprise,
provided however, that the Company shall not be obligated to indemnify
Indemnitee under this Section 1 unless Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company, and,

 

 

with respect to any criminal action or proceeding, Indemnitee had no
reasonable cause to believe Indemnitee’s conduct was unlawful. The termination
of any action or proceeding by judgment, order, settlement, conviction, or upon
a plea of nolo contendere or its equivalent shall not, of itself, create a
presumption that (i) Indemnitee did not act in good faith, (ii) Indemnitee did
not act in a manner which Indemnitee reasonably believed to be in the best
interests of the Company, or (iii) with respect to any criminal action or
proceeding, Indemnitee had reasonable cause to believe that Indemnitee’s
conduct was unlawful. Anyone seeking to overcome the presumption that
Indemnitee is entitled to indemnification under this Section 1 shall have the
burden of proof and the burden of persuasion by clear and convincing evidence.
“Damages” shall mean any Expenses (as defined below),
judgments, fines and
amounts paid in settlement actually and reasonably incurred by Indemnitee or on
his behalf in connection with an action or proceeding. “Expenses” shall mean
any expenses actually and reasonably incurred by Indemnitee or on his behalf in
connection with an action or proceeding, including any fee (including any legal
fee, expert fee, accounting fee or advisory fee), charge, cost (including any
cost of investigation) or expense of any nature, but shall not include the
amount of any judgments, fines, or amounts paid in settlement of any action or
proceeding.

     2. Indemnification in Proceedings by or in the Right of the Company. The
Company shall indemnify, defend, and hold harmless Indemnitee from and against,
and shall compensate and reimburse Indemnitee for, any Expenses and, to the
extent permitted by law, amounts paid in settlement that are directly or
indirectly suffered or incurred by Indemnitee as a result of, or are directly
or indirectly connected with, any threatened, pending or completed action or
proceeding by or in the right of the Company to procure a judgment in its
favor, to which Indemnitee is or was a party, or is threatened to be made a
party, by reason of, or arising from, the fact that Indemnitee is or was a
member of the Company’s Board, or the board of directors of any subsidiary of
the Company, by reason of any action or inaction on the part of Indemnitee in
his role as a member of the Company’s Board or by reason of the fact that
Indemnitee is or was serving at the request of the Company as a director,
officer, employee, agent or fiduciary of the Company or of another corporation,
partnership, joint venture, trust or other enterprise, provided however, that
the Company shall not be obligated to indemnify Indemnitee under this Section
2: (1) unless Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests of the
Company; or (2) for any claim, issue or matter as to which Indemnitee shall
have been adjudged to be liable to the Company, unless and only to the extent
that the court in which such action or proceeding is or was pending shall
determine upon application that, despite the adjudication of such liability but
in view of all the circumstances of the case, Indemnitee is fairly and
reasonably entitled to indemnity for Expenses and then only to the extent that
the court shall determine. The termination of any action or proceeding by
judgment, order, settlement, conviction, or upon a plea of nolo contendere or
its equivalent shall not, of itself, create a presumption that (i) Indemnitee
did not act in good faith, or (ii) Indemnitee did not act in a manner which
Indemnitee reasonably believed to be in the best interests of the Company.
Anyone seeking to overcome the presumption that Indemnitee is entitled to
indemnification under this Section 2 shall have the burden of proof and the
burden of persuasion by clear and convincing evidence.

 2.

 

     3. Expenses; Indemnification Procedure.

          (a) Advancement of Expenses. The Company shall advance all Expenses
incurred by Indemnitee in connection with the investigation, defense,
settlement or appeal of any civil or criminal action or proceeding referenced
in Sections 1 or 2 hereof (but not amounts actually paid in settlement of any
such action or proceeding). Indemnitee hereby undertakes to repay such amounts
advanced only if, and to the extent that, it shall ultimately be determined
such Expenses were not reasonable or that Indemnitee is not entitled to be
indemnified by the Company as authorized hereby. The advances to be made
hereunder shall be paid by the Company to Indemnitee within ten (10) days
following delivery of a written statement therefor by Indemnitee to the
Company. Such statement or statements shall reasonably evidence the Expenses
incurred by the Indemnitee. Any advances and undertakings to repay pursuant to
this Section 3(a) shall be made without regard to the financial ability of the
Indemnitee to make repayment and shall be unsecured and interest free.

          (b) Witness Expenses. Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee is, by reason of, or arising from, the
fact that Indemnitee is or was a member of the Company’s Board, or the board of
directors of any subsidiary of the Company, a witness in any proceeding to
which Indemnitee is not a party, he shall be indemnified against all expenses
actually and reasonably incurred by him or on his behalf in connection
therewith.

          (c) Notice/Cooperation by Indemnitee. Indemnitee shall give the Company
notice in writing as soon as practicable of any claim made against Indemnitee
for which indemnification will or could be sought under this Agreement. Notice
to the Company shall be directed to the President of the Company at the address
shown on the signature page of this Agreement (or such other address as the
Company shall designate in writing to Indemnitee). In addition, Indemnitee
shall give the Company such information and cooperation as it may reasonably
require and as shall be within Indemnitee’s power.

          (d) Procedure. Any indemnification provided for in Section 1 or 2 shall
be made no later than forty-five (45) days after receipt of the written request
of Indemnitee. If a claim under this Agreement, under any statute, or under
any provision of the Company’s Certificate of Incorporation or Bylaws providing
for indemnification, is not paid in full by the Company within forty-five (45)
days after a written request for payment thereof has first been received by the
Company, Indemnitee may, but need not, at any time thereafter bring an action
against the Company to recover the unpaid amount of the claim and, subject to
Section 17 of this Agreement, Indemnitee shall also be entitled to be paid for
the Expenses (including attorneys’ fees) of bringing such action. It shall be
a defense to any such action (other than an action brought to enforce a claim
for Expenses incurred in connection with any action or proceeding in advance of
its final disposition) that Indemnitee has not met the standards of conduct
which make it permissible under applicable law for the Company to indemnify
Indemnitee for the amount claimed, but the burden of proving such defense shall
be on the Company, and Indemnitee shall be entitled to receive interim payments
of Expenses pursuant to Subsection 3(a) unless and until such defense may be
finally adjudicated by court order or judgment from which no further right of
appeal exists. It is the parties’ intention that if the Company contests
Indemnitee’s right to indemnification, the question of Indemnitee’s right to
indemnification shall be for the court to decide, and neither the failure of
the Company (including its Board of

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Directors, any committee or subgroup of the Board of Directors,
independent legal counsel, or its shareholders) to have made a determination
that indemnification of Indemnitee is proper in the circumstances because
Indemnitee has met the applicable standard of conduct required by applicable
law, nor an actual determination by the Company (including its Board of
Directors, any committee or subgroup of the Board of Directors, independent
legal counsel, or its shareholders) that Indemnitee has not met such applicable
standard of conduct, shall create a presumption that Indemnitee has or has not
met the applicable standard of conduct.

          (e) Settlements. Notwithstanding anything to the contrary contained
herein, the Company shall not be required to indemnify the Indemnitee under
this Agreement for any amounts paid in settlement of any action or proceeding
effected without the Company’s prior written consent. The Company shall not
settle any action or proceeding in any manner that would impose any penalty or
limitation on Indemnitee without Indemnitee’s prior written consent. Neither
the Company nor the Indemnitee shall unreasonably withhold their consent to any
proposed settlement.

          (f) Selection of Counsel. In the event the Company shall be obligated
under Section 3(a) hereof to pay the Expenses of any proceeding against
Indemnitee, the Company, if appropriate, shall be entitled to assume the
defense of such proceeding, with counsel approved by Indemnitee, which approval
shall not be unreasonably withheld, upon the delivery to Indemnitee of written
notice of its election so to do. After delivery of such notice, approval of
such counsel by Indemnitee and the retention of such counsel by the Company,
the Company will not be liable to Indemnitee under this Agreement for any fees
of counsel subsequently incurred by Indemnitee with respect to the same
proceeding, provided that (i) Indemnitee shall have the right to employ his
counsel in any such proceeding at Indemnitee’s expense; and (ii) if (A) the
employment of counsel by Indemnitee has been previously authorized by the
Company, (B) counsel to the Indemnitee shall have reasonably concluded that
there may be a conflict of interest between the Company and Indemnitee in the
conduct of any such defense or (C) the Company shall not, in fact, have
employed counsel to assume the defense of such proceeding, then the fees and
expenses of Indemnitee’s counsel shall be at the expense of the Company except
as otherwise expressly provided in this Agreement.

     4. Additional Indemnification Rights; Nonexclusivity.

          (a) Scope. Notwithstanding any other provisions of this Agreement, the
Company hereby agrees to indemnify the Indemnitee to the fullest extent
permitted by law, notwithstanding that such indemnification is not specifically
authorized by the other provisions of this Agreement, the Company’s Certificate
of Incorporation, the Company’s Bylaws or by statute. In the event of any
change, after the date of this Agreement, in any applicable law, statute or
rule which expands the right of a Delaware corporation to indemnify a member of
its Board, such changes shall be, ipso facto, within the purview of
Indemnitee’s rights and Company’s obligations, under this Agreement. In the
event of any change in any applicable law, statute or rule which narrows the
right of a Delaware corporation to indemnify a member of its Board, such
changes, to the extent not otherwise required by such law, statute or rule to
be applied to this Agreement shall have no effect on this Agreement or the
parties’ rights and obligations hereunder.

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          (b) Nonexclusivity. The indemnification provided by this Agreement shall
not be deemed exclusive of any rights to which Indemnitee may be entitled under
the Company’s Certificate of Incorporation, its Bylaws, any agreement, any vote
of shareholders or disinterested directors, Delaware law, or otherwise, both as
to action in Indemnitee’s official capacity and as to action in another
capacity while holding such office. The indemnification provided under this
Agreement shall continue as to Indemnitee for any action taken or not taken
while serving in an indemnified capacity even though he may have ceased to
serve in such capacity at the time of any action or otherwise covered
proceeding.

     5. Partial Indemnification. If Indemnitee is entitled under any provision
of this Agreement to indemnification by the Company for some or a portion of
the Expenses, judgments, fines, or amounts paid in settlement actually or
reasonably incurred by him in the investigation, defense, appeal or settlement
of any civil or criminal action or proceeding, but not, however, for the total
amount thereof, the Company shall nevertheless indemnify Indemnitee for the
portion of such Expenses, judgments, fines, or amounts paid in settlement to
which Indemnitee is entitled. For purposes of this Section 5 and without
limitation, the termination of any claim, issue or matter by dismissal, with or
without prejudice, shall be deemed to be a successful result as to such claim,
issue or matter.

     6. Mutual Acknowledgment. Both the Company and Indemnitee acknowledge
that in certain instances, Federal law or applicable public policy may prohibit
the Company from indemnifying its directors, officers or other advisors under
this Agreement or otherwise. Indemnitee understands and acknowledges that the
Company has undertaken or may be required in the future to undertake with the
Securities and Exchange Commission to submit the question of indemnification to
a court in certain circumstances for a determination of the Company’s right
under public policy to indemnify Indemnitee.

     7. Severability. Nothing in this Agreement is intended to require or
shall be construed as requiring the Company to do or fail to do any act in
violation of applicable law. The Company’s inability, pursuant to applicable
law (as determined by a court of competent jurisdiction), to perform its
obligations under this Agreement shall not constitute a breach of this
Agreement. The provisions of this Agreement shall be severable as provided in
this Section 7. If this Agreement or any portion hereof shall be invalidated
on any ground by any court of competent jurisdiction, then the Company shall
nevertheless indemnify Indemnitee to the full extent permitted by any
applicable portion of this Agreement that shall not have invalidated, and the
balance of this Agreement not so invalidated shall be enforceable in accordance
with its terms.

     8. Exceptions. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of
this Agreement to indemnify Indemnitee or to advance Expenses in connection
with any of the following:

          (a) Excluded Acts. With respect to any acts or omissions or transactions
from which a director may not be relieved of liability under Delaware law;

          (b) Claims Initiated by Indemnitee. With respect to proceedings or claims
initiated or brought voluntarily by Indemnitee and not by way of defense,
except with respect to

 5.

 

proceedings brought to establish or enforce a right to indemnification
under this Agreement or any other statute or law, but such indemnification or
advancement of Expenses may be provided by the Company in specific cases if the
Board of Directors has approved the initiation or bringing of such suit;

          (c) Lack of Good Faith. For any Expenses incurred by the Indemnitee with
respect to any proceeding instituted by Indemnitee to enforce or interpret this
Agreement, if a court of competent jurisdiction determines that each of the
material assertions made by the Indemnitee in such proceeding was not made in
good faith or was frivolous;

          (d) Claims Under Section 16(b). For Expenses and the payment of profits
arising from the purchase and sale by Indemnitee of securities in violation of
Section 16(b) of the Securities Exchange Act of 1934, as amended, or any
similar successor statute;

          (e) Insurance Payments. To the extent that payment is actually made to
the Indemnitee under a valid, enforceable and collectible insurance policy;

          (f) Other Payments. To the extent that the Indemnitee is indemnified and
actually paid otherwise than pursuant to this Agreement; or

          (g) Personal Advantage. If it is proved by final judgment in a court of
law or other final adjudication to have been based upon or attributable to the
Indemnitee’s in fact having gained any personal profit or advantage to which he
was not legally entitled.

     9. Remedies of Indemnitee.

          (a) In the event that (i) the Company makes a determination that
Indemnitee is not entitled to indemnification under Section 1 or 2 of this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section
3 of this Agreement, (iii) payment of indemnification is not made pursuant to
this Agreement within forty-five days after receipt by the Company of a written
request therefore, Indemnitee shall be entitled to an adjudication in an
appropriate court in the state of Delaware, or in any other court of competent
jurisdiction, of his entitlement to such indemnification.

          (b) In the event that Indemnitee, pursuant to this Section 9, seeks a
judicial adjudication of his rights under, or to recover damages for breach of,
this Agreement, or to recover under any directors’ and officers’ liability
insurance policies maintained by the Company, the Company shall pay on his
behalf, in advance, any and all expenses actually and reasonably incurred by
him in such judicial adjudication, regardless of whether Indemnitee ultimately
is determined to be entitled to such indemnification, advancement of expenses
or insurance recovery, unless as a part of such adjudication, the court of
competent jurisdiction determines that each of the material assertions made by
Indemnitee as a basis for such action were not made in good faith or were
frivolous.

     10. Insurance. To the extent that the Company maintains an insurance
policy or policies providing liability insurance for directors, officers,
employees, or agents or fiduciaries of the Company or any other corporation,
partnership, joint venture or other enterprise which such person serves at the
request of the Company, Indemnitee shall be covered by such policy or

 6.

 

policies in accordance with its or their terms to the maximum extent of
the coverage available for any such director, officer, employee or agent under
such policy or policies.

     11. Subrogation. In the event of any payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all papers required and take all
action necessary to secure such rights, including execution of such documents
as are necessary to enable the Company to bring suit to enforce such rights.

     12. Effectiveness of Agreement. To the extent that the indemnification
permitted under the terms of certain provisions of this Agreement exceeds the
scope of the indemnification provided for under Delaware law, such provisions
shall not be effective unless and until the Company’s Certificate of
Incorporation authorize such additional rights of indemnification. In all
other respects, the balance of this Agreement shall be effective as of the date
set forth on the first page.

     13. Enforcement. The Company expressly confirms and agrees that it has
entered into this Agreement and assumed the obligations imposed on it hereby in
order to induce Indemnitee to serve as a director of the Company, and the
Company acknowledges that Indemnitee is relying upon this Agreement as
consideration for serving as a director of the Company.

     14. Construction of Certain Phrases.

          (a) For purposes of this Agreement, references to the “Company” shall
include, in addition to the resulting corporation, any constituent corporation
(including any constituent of a constituent) absorbed in a consolidation or
merger which, if its separate existence had continued, would have had power and
authority to indemnify its directors, officers, employees or agents, so that if
Indemnitee is or was a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, Indemnitee
shall stand in the same position under the provisions of this Agreement with
respect to the resulting or surviving corporation as Indemnitee would have with
respect to such constituent corporation if its separate existence had
continued.

          (b) For purposes of this Agreement, references to “other enterprises”
shall include employee benefit plans; references to “fines” shall include any
excise taxes assessed on Indemnitee with respect to an employee benefit plan;
and references to “serving at the request of the Company” shall include any
service as a director, officer, employee or agent of the Company which imposes
duties on, or involves services by, such director, officer, employee or agent
with respect to an employee benefit plan, its participants, or beneficiaries.

     15. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall constitute an original.

     16. Successors and Assigns. This Agreement shall be binding upon the
Company and its successors and assigns, and shall inure to the benefit of
Indemnitee and Indemnitee’s estate, heirs, legal representatives and assigns.
This agreement will continue in effect whether Indemnitee continues to serve as
an officer or director of the Company or any other enterprise at the Company’s
request.

 7.

 

     17. Attorneys’ Fees. In the event that any action is instituted by
Indemnitee under this Agreement to enforce or interpret any of the terms
hereof, Indemnitee shall be entitled to be paid all court costs and expenses,
including reasonable attorneys’ fees, incurred by Indemnitee with respect to
such action, unless as a part of such action, the court of competent
jurisdiction determines that each of the material assertions made by Indemnitee
as a basis for such action were not made in good faith or were frivolous. In
the event of an action instituted by or in the name of the Company under this
Agreement or to enforce or interpret any of the terms of this Agreement,
Indemnitee shall be entitled to be paid all court costs and expenses, including
attorneys’ fees, incurred by Indemnitee in defense of such action (including
with respect to Indemnitee’s counterclaims and cross-claims made in such
action), unless as a part of such action the court determines that each of
Indemnitee’s material defenses to such action were made in bad faith or were
frivolous.

     18. Notices. All notices, requests, demands and other communications
under this Agreement shall be in writing and shall be deemed duly given (i) if
delivered by hand and receipted for by the party addressee, on the date of such
receipt, or (ii) if mailed by domestic certified or registered mail, properly
addressed with postage prepaid, on the third business day after the date
postmarked; otherwise a notice shall be deemed duly given when such notice
shall be actually received by the addressee. Addresses for notice to either
party are as shown on the signature page of this Agreement, or as subsequently
modified by written notice. The failure to notify the Company shall not
relieve the Company of any obligation which it may have to the Indemnitee under
this Agreement or otherwise.

     19. Modification and Waiver. No supplement, modification, termination or
amendment of this Agreement shall be binding unless executed in writing by both
parties. No waiver of any of the provisions of this Agreement shall be deemed
or shall constitute a waiver of any other provisions hereof (whether or not
similar) nor shall such wavier constitute a continuing waiver.

     20. Choice of Law. This Agreement shall be governed by and its provisions
construed in accordance with the laws of the State of Delaware as applied to
contracts between Delaware residents entered into and to be performed entirely
within Delaware.

[Signature Page Follows]

 8.

 

     IN WITNESS WHEREOF, the parties hereto have executed this Indemnification
Agreement as of the date first above written.

	 	 	 	 	 	 	 
	AGREED TO AND ACCEPTED
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	INDEMNITEE:	 	 	 	COMPANY:
	 
	 	 	 	 	 	 
	
	 	 	 	

	By: [Name of Outside Director]
	 	 	 	 	 	 
	

	 	 	 	By:
	 	

	

	 	 	 	Title:
	 	

	

	 	 	 	Address:	 	 
	 	 	 	 	

	 	 	 	 	

	 	 	 	 	

 

 

 2.exv10w16

 

Exhibit 10.16

EMPLOYMENT
AGREEMENT

     THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is entered into by and
between ECLIPSYS CORPORATION, a Delaware corporation
(“Company”), and PAUL L.
RUFLIN, an individual (“Executive”), effective
February 3, 2004 (“Effective
Date”).

WITNESSETH:

     WHEREAS, Executive has been serving as the Chief Executive Officer of
Company pursuant to the terms of an offer letter dated May 5,
2002 (the “Offer
Letter”); and

     WHEREAS, Executive commenced employment with Company on July 15, 2002 (the
“Commencement Date”); and

     WHEREAS, Company and Executive contemplated at the time of the Offer
Letter that they would enter into a more formal employment agreement; and

     WHEREAS, Company desires to continue to employ Executive, and Executive
desires to continue to be employed by Company;

     NOW THEREFORE, in consideration of the mutual covenants and promises
contained in this Agreement, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by the parties to this
Agreement, the parties agree as follows:

     Section 1 - Employment.

	 	(a)	 	Company agrees to continue to employ Executive as its Chief
Executive Officer, and Executive shall have the customary powers,
responsibilities and authorities of a Chief Executive Officer. In
this capacity, Executive shall report to the Board of Directors of
Company (the “Board”). Executive agrees to devote his best efforts
to the performance of his duties and responsibilities hereunder,
subject at all times to review and control of the Board.

	 	(b)	 	Nothing in this Agreement shall preclude Executive from
engaging in charitable and community affairs, from managing any
passive investment (i.e., an investment with respect to which
Executive is in no way involved with the management or operation of
the entity in which Executive has invested) made by him in publicly
traded equity securities or other property (provided that no such
investment may exceed five percent (5%) of the equity of any entity,
without the prior approval of the Board) or from serving, as a
member of boards of directors or as a trustee of any other
corporation, association or entity, to the extent that any of the
above activities do not

 

 

	 	 	 	interfere with his ability to discharge his duties hereunder and
the subject entity does not directly compete with Company.

     Section 2
— Term of Employment. Executive’s term of employment under this
Agreement (“Term of Employment”) commenced on the Commencement Date and,
subject to the terms hereof, shall terminate on the date that either party
terminates Executive’s employment under this Agreement.

     Section 3 — Compensation.

	 	(a)	 	Salary. During the period from the Commencement Date through
July 15, 2004 (the “Initial Period”), Company shall pay Executive at
the annualized rate of Seven Hundred Fifty Thousand Dollars
($750,000.00) (“Base Salary”), in bi-weekly payments of Twenty Eight
Thousand Eight Hundred Forty Six and 15/100 Dollars ($28,846.15).
Base Salary shall be payable in accordance with the ordinary payroll
practices of Company and shall be subject to all applicable federal,
state and local withholding and reporting requirements. Executive’s
Base Salary shall not be decreased during the Initial Period.
During the Term of Employment, the Board shall review, and may,
subject to the immediately preceding sentence, adjust Executive’s
Base Salary annually, in accordance with Company’s customary
procedures and practices for reviewing compensation of senior
executives.

	 	(b)	 	Eclipsys Executive Compensation Program
(“EECP”). Executive
shall be eligible to participate in the EECP, subject to all the
terms and conditions of such plan, as such plan may be modified from
time to time; provided, however, that Executive’s annual target
bonus under the EECP (the “Target Bonus”) shall initially be at
least Two Hundred Fifty Thousand Dollars ($250,000.00) , with the
actual bonus earned being based on achieving such performance
targets and management objectives as may be established by the Board
or the Compensation Committee of the Board each year as contemplated
by the EECP. Executive’s Target Bonus shall not be decreased during
the Initial Period.

     Section 4
- Employee Benefits.

	 	(a)	 	Employee Retirement Benefit Programs, Welfare Benefit
Programs, Plans and Practices. Company shall provide Executive with
coverage during the Term of Employment under any retirement benefit
programs, welfare benefit programs, plans and practices, that
Company makes available to its senior executives, including, but not
limited to, its life and short- and long-term disability insurance,
hospitalization and major medical insurance, Company 401(k) Plan,
Employee Stock Purchase Plan, dental insurance, directors and
officers liability insurance, and any other nonqualified
compensation program (including deferred compensation or
supplemental retirement programs) as in effect from time to time.

2

 

	 	(b)	 	Vacation. Executive shall be entitled to five weeks of paid
vacation each calendar year, which shall be taken at such times as
are consistent with Executive’s responsibilities hereunder;
provided, however, that Executive shall not be entitled to carry
over unused vacation from year to year in an amount exceeding that
which Executive would be entitled to carry over in accordance with
Company’s standard vacation policy as applied to employees of
Executive’s longevity with Company.
	 
	 	(c)	 	Relocation and Travel Expenses. Company shall pay all
reasonable and customary costs related to the relocation of his
family and the family residence to Florida (or other location of
the Company’s corporate headquarters if it is relocated) at such
time during the Term of Employment as Executive decides such a move
is appropriate. The costs included in the relocation cost to be
paid by the Company shall include, without limitation, all moving
costs; all expenses relating to the sale of Executive’s Ohio
residence, such as brokerage commissions and closing costs; all
expenses relating to travel between Ohio and Florida (or other
corporate headquarters location) relating to such relocation; and
reimbursement of any nonrefundable deposits that are forfeited by
Executive on account of the relocation. Executive acknowledges that
during the Term of Employment he shall be required to travel
extensively to meet with customers, prospects, investors and Company
employees in order to perform his duties hereunder, and that Company
shall bear all the reasonable costs and expenses of such travel,
including travel to and from his family’s residence for business
purposes.

     Section 5
- Expenses. Subject to prevailing Company policy or such
guidelines as may be established by the Board from time to time, in addition to
the travel costs and expenses referred to in 4(c) above, Company shall
reimburse Executive for all reasonable expenses incurred by Executive in
carrying out his duties.

     Section 6
- Termination of Employment.

	 	(a)	 	Termination Without Cause or Termination for Good
Reason.
If Executive’s employment is terminated during the Term of
Employment by Company for any reason other than Cause (as defined in
Section 6(c) hereof), Executive’s Disability (as defined in Section
6(e) hereof), or Executive’s death, or if Executive’s employment is
terminated during the Term of Employment by Executive for Good
Reason (as defined in Section 6(a)(2) hereof), then Company shall
pay Executive (x) the Accrued Amounts (as defined below) and (y)
subject to the following sentence, the Severance Package. The
payment of the Severance Package to Executive under this Section
6(a) shall (i) be contingent upon the execution by Executive of
Company’s standard release agreement then in effect and (ii)
constitute the sole remedy of Executive in the event of a
termination of Executive’s employment in the circumstances set forth
in this Section 6(a). The Accrued Amounts shall be payable

3

 

	 	 	 	in a lump sum within ten (10) days of termination of employment.

	 	(1)	 	For purposes of this Agreement, the “Accrued
Amounts” shall mean Executive’s Base Salary, any declared but
unpaid bonus and any other earned but unpaid amounts payable
to him hereunder, in each case as accrued through the last
day of his actual employment by Company.

	 	(2)	 	For purposes of this Agreement, a termination
of employment by Executive for “Good Reason” shall be a
termination by Executive following the occurrence of any of
the following events unless Company has cured as provided
below:

	 	(A)	 	Removal from the position of Chief
Executive Officer of Company prior to a Change of
Control (as defined in Section 6(d)(4)), except for
Cause or following Executive’s death or Disability;

	 	(B)	 	Prior to or following a Change of
Control, any material diminution in Executive’s duties
or responsibilities, except for Cause or following
Executive’s death or Disability; or

	 	(C)	 	Prior to a Change of Control, a
material reduction in the Base Salary or a material
reduction in the other benefits (other than the Target
Bonus) provided to Executive by Company; or

	 	(D)	 	Following a Change of Control, a
material reduction in the Base Salary or Target Bonus, a
material change in the criteria for measuring the amount
of bonus Executive will be entitled to, or a material
reduction in the other benefits provided to Executive by
Company; or

	 	(E)	 	Prior to or following a Change of
Control, a required relocation of Executive’s primary
residence any time after he and his family relocate to
Florida.

	 	 	 	Executive must notify Company in writing specifically
identifying any event constituting Good Reason within thirty
(30) days after Executive becomes aware of such event or such
event shall not constitute Good Reason for purposes of this
Agreement; provided that Company shall have thirty (30) days
from the date of such notice to cure the Good Reason event.
A termination by Executive following cure shall not be a
termination for Good Reason. A failure of Executive to
notify Company after the first occurrence of an event
constituting Good Reason shall not preclude any subsequent
occurrences of such event (or similar event) from
constituting Good Reason.

4

 

	 	 	 	The parties acknowledge that, although Executive is currently
serving both as President and as Chief Executive Officer of
Company, it shall not constitute Good Reason if the Board
elects to award the title of President to a Company employee
other than Executive, or if the Board elects to assign the
duties normally associated with a chief operating officer to
a Company employee other than Executive. In this regard,
Company acknowledges that Executive would expect to be
consulted by the Board before either of these actions were
taken, but Executive acknowledges that the ultimate authority
to determine who will serve as an executive officer of
Company and what roles those executives should play is
reserved to the Board, acting in accordance with its
fiduciary duties.

	 	(3)	 	For purposes of this Agreement, “Severance Package” shall
mean:

	 	(A)	 	Base Salary continuation for eighteen
(18) months following the date of termination at
Executive’s annual Base Salary rate in effect on the
date of termination, subject to all applicable federal,
state and local withholding and reporting requirements.
These salary continuation payments shall be paid in
accordance with usual Company payroll practices;

	 	(B)	 	A bonus equal to one hundred fifty
percent (150%) of Executive’s Target Bonus in effect on
the date of termination under EECP, payable in equal
installments over the eighteen (18) month period
described in Section 6(a)(3)(A) above, subject to the
same withholding and reporting requirements. In
addition, to the extent not included in the Accrued
Amounts, Executive shall receive a pro rata bonus for
the bonus period during which the date of termination
occurs calculated at one hundred percent (100%) of the
Target Bonus, multiplied by a fraction the numerator of
which is the number of days that Executive was employed
during such bonus term and the denominator of which is
365. Such prorated bonus shall be paid in accordance
with customary practices for payment of bonuses under
EECP;

	 	(C)	 	Twelve (12) months of continued
vesting under all Restricted Stock Awards and Option
Awards (i.e., vesting calculated at the time of
employment termination as if termination were to occur
twelve months later). For purposes of avoiding
confusion, the parties acknowledge that (i) the
Restricted Stock Agreement and the Amended and Restated
Restricted Stock Agreement, both dated as of July 15,
2002, between Company and Executive (together the “2002

5

 

	 	 	 	Restricted Stock Agreements”) contain language intended
to effectuate this continued vesting, which is located
in the proviso to the definition of “Measurement Date”
in Section 2.1(a) thereof, (ii) the inclusion of such
language in the 2002 Restricted Stock Agreements is not
intended to create additional vesting beyond the twelve
months described in the first sentence of this
paragraph (C), and (iii) in light of the first sentence
of this paragraph (C), the 2002 Restricted Stock
Agreements should be read as if such proviso were
deleted.

	 	(D)	 	Continuation of benefits under any
life, group health, and dental insurance benefits
substantially similar to those which Executive was
receiving immediately prior to termination of employment
until the earlier of:

	 	(i)	 	the end of the eighteen
(18) month period following the date of
termination, or

	 	(ii)	 	the date on which
Executive becomes eligible to receive any benefits
under any plan or program of any other employer.

	 	 	 	The continuing coverage provided under this Section
6(a)(3)(D) is subject to the availability of such
continuation under the terms of the applicable plan
documents and all provisions of applicable law. If
Executive is not eligible for such continued coverage
under one of the Company-provided benefit plans noted
in this paragraph (D) that he was participating in
during his employment, Company shall pay Executive the
cash equivalent of the cost of replacement insurance
for the duration of the applicable period.

	 	(b)	 	Voluntary Termination by Executive Without Good Reason. If
Executive terminates his employment with Company without Good
Reason, then Company shall pay Executive the Accrued Amounts in a
lump sum within ten (10) days of termination of employment.

	 	(c)	 	Termination for Cause. If Executive’s employment is
terminated for Cause, Company shall pay Executive the Accrued
Amounts in a lump sum within ten (10) days of termination of
employment. As used herein, the term “Cause” shall be limited to:

	 	(1)	 	Executive’s conviction of or plea of guilty or
nolo contendere to a crime constituting a felony under the
laws of the United States or any state thereof or any other
jurisdiction in which Company conducts business;

6

 

	 	(2)	 	Executive’s willful misconduct or gross
negligence in the performance of his duties that causes
material harm to Company;

	 	(3)	 	Executive’s willful and continued failure to
follow the reasonable instructions of Company’s Board;

	 	(4)	 	Executive’s willful and continued neglect of
duties (other than any such neglect resulting from incapacity
of Executive due to physical or mental illness); or

	 	(5)	 	a material breach of this Agreement by Executive;

	 	 	 	provided, however, that Cause shall arise under items (2), (3), (4)
or (5) only following thirty (30) days written notice thereof from
Company which specifically identifies such misconduct, failure,
neglect or breach and the continuance of such misconduct, failure,
neglect or breach during such notice period, and further provided
that Cause under items (3), (4) and (5) shall be subject to the
last sentence of Section 8(c) hereof. During any such notice
period, Executive shall have the right to be heard before the full
Board and Cause shall not be deemed to exist without a finding by
the Board that Cause has not been cured and continues to exist
after the thirty (30) day cure period. A failure of Company to
notify Executive after the first occurrence of an event
constituting Cause shall not preclude any subsequent occurrences of
such event (or similar event) from constituting Cause.

	 	(d)	 	Certain Terminations Following a Change of Control. In the
event Executive’s employment with Company terminates by reason of a
Qualifying Termination (as defined below) within two (2) years after
a Change of Control of Company (as defined below) that occurs during
the Term of Employment, then Company shall pay to Executive (x) the
Accrued Amounts in a lump sum within ten (10) days of termination of
employment and (y), in lieu of the Severance Package, and subject to
the limitations described in Section 7 below and subject to the
following two sentences, Company shall provide Executive the Change
of Control Benefits (as defined below). The provision of the Change
of Control Benefits to Executive under this Section 6(d) shall (i)
be contingent upon the execution by Executive of Company’s standard
release agreement then in effect or a release in another form
reasonably acceptable to Company and (ii) constitute the sole remedy
of Executive in the event of a termination of Executive’s employment
in the circumstances set forth in this Section 6(d). In addition,
all payments under this Section 6(d) are subject to the timing
rules, calculations and adjustments described in Section 7.

	 	(1)	 	“Change of Control Benefits” shall mean:

7

 

	 	(A)	 	Base Salary continuation for twenty
four (24) months following the date of termination at
Executive’s annual Base Salary rate in effect on the
date of termination, subject to all applicable federal,
state and local withholding and reporting requirements.
These salary continuation payments shall be paid in
accordance with usual Company payroll practices;

	 	(B)	 	A bonus equal to two hundred percent
(200%) of Executive’s Target Bonus in effect on the date
of termination under EECP, payable in equal installments
over the twenty four (24) month period described in
Section 6(d)(1)(A) above, subject to the same
withholding and reporting requirements. In addition, to
the extent not included in the Accrued Amounts,
Executive shall receive a pro rata bonus for the bonus
period during which the date of termination occurs
calculated at one hundred percent (100%) of the Target
Bonus, multiplied by a fraction the numerator of which
is the number of days that Executive was employed during
such bonus term and the denominator of which is 365.
Such prorated bonus shall be paid in accordance with
customary practices for payment of bonuses under EECP;

	 	(C)	 	Acceleration in full of the vesting of all Restricted
Stock Awards and Option Awards; and

	 	(D)	 	Continuation of life, group health
and dental insurance benefits substantially similar to
those which Executive was receiving immediately prior to
the Qualifying Termination until the earlier of:

	 	(i)	 	the end of the twenty
four (24) month period following Executive’s
termination of employment, or

	 	(ii)	 	the date on which
Executive becomes eligible to receive any benefits
under any plan or program of any other employer.

	 	 	 	The continuing coverage provided under this Section
6(d)(1)(D) is subject to the availability of such
continuation under the terms of the applicable plan
documents and all provisions of applicable law. If
Executive is not eligible for such continued coverage
under one of the Company-provided benefit plans noted
in this paragraph (D) that he was participating in
during his employment, Company shall pay Executive the
cash equivalent of the cost of replacement insurance
for the duration of the applicable period.

8

 

	 	(2)	 	Qualifying Termination. For purposes of this
Agreement, the term “Qualifying Termination” means a
termination of Executive’s employment with Company for any
reason other than:

	 	(A)	 	death;

	 	(B)	 	Disability, as defined herein;

	 	(C)	 	Cause, as defined herein; or

	 	(D)	 	A termination by Executive without Good Reason, as
defined herein.

	 	(3)	 	Change of Control Defined. For purposes of this
Agreement, a “Change of Control” shall have the meaning set
forth in Exhibit A attached hereto.

	 	(e)	 	Disability. In the event that Executive suffers a Disability,
Company may, in its discretion, terminate Executive’s employment
hereunder. For purposes of this Agreement, “Disability” shall be
defined to occur at such time as Executive becomes eligible to receive
benefits under the terms of Company’s then applicable long-term
disability policy, or, in the absence of such policy, shall be defined
as a physical or mental disability that prevents Executive from
performing his duties under this Agreement which continues for ninety
(90) consecutive days or more, or for an aggregate of ninety (90) days
in any period of twelve (12) months. Company may only terminate
Executive on account of Disability after giving due consideration to
whether reasonable accommodations can be made under which Executive is
able to fulfill his duties under this Agreement. The commencement date
and expected duration of any physical or mental condition that prevents
Executive from performing his duties hereunder shall be determined by a
medical doctor mutually acceptable to Executive and Company. In the
event Executive’s employment is terminated by Company pursuant to this
Section 6(e), then Company shall pay Executive the Accrued Amounts in a
lump sum within ten (10) days of termination of employment. In
addition, to the extent not included in the Accrued Amounts, Executive
shall receive a pro rata bonus for the bonus period during which the
date of termination pursuant to this Section 6(e) occurs calculated at
one hundred percent (100%) of the Target Bonus, multiplied by a
fraction the numerator of which is the number of days that Executive
was employed during such bonus term and the denominator of which is
365. Such prorated bonus shall be paid in accordance with customary
practices for payment of bonuses under EECP

	 	(f)	 	Death. In the event of Executive’s death during the Term of
Employment, all obligations of Company to make any further payments,
including the obligation to pay the Accrued

9

 

	 	 	 	Amounts, shall be paid to Executive’s estate, and in any event all
Accrued Amounts shall be paid in a lump sum within ten (10) days of
Executive’s death. In addition, to the extent not included in the
Accrued Amounts, Executive’s estate shall receive a payment or
payments reflecting a pro rata bonus for Executive for the bonus
period during which the date of termination pursuant to this Section
6(f) occurs calculated at one hundred percent (100%) of the Target
Bonus, multiplied by a fraction the numerator of which is the number
of days that Executive was employed during such bonus term and the
denominator of which is 365. Such prorated bonus shall be paid in
accordance with customary practices for payment of bonuses under EECP

	 	(g)	 	Payments as Compensable Compensation. Any participation by
Executive in, and any terminating distributions and vested rights
under, Company-sponsored retirement or deferred compensation plans,
regardless of whether such plans are qualified or nonqualified for tax
purposes, shall be governed by the terms of those respective plans.

	 	(h)	 	Executive’s Duty to Provide Materials. Upon the termination of the
Term of Employment for any reason, Executive or his estate shall
surrender to Company all correspondence, letters, files, contracts,
mailing lists, customer lists, advertising material, ledgers, supplies,
equipment, checks, and all other materials and records of any kind that
are the property of Company or any of its subsidiaries or affiliates,
that may be in Executive’s possession or under his control, including
all copies of any of the foregoing.

     Section 7
- Cap on Payments.

	 	(a)	 	Notwithstanding any other provision of this Agreement, except as
set forth in Section 7(b), in the event that Company undergoes a
“Change in Ownership or Control” (as defined below), Company shall not
be obligated to provide to Executive a portion of any “Contingent
Compensation Payments” (as defined below) that Executive would
otherwise be entitled to receive to the extent necessary to eliminate
any “excess parachute payments” (as defined in Section 280G(b)(1) of
the Internal Revenue Code of 1986, as amended (the “Code”)) for
Executive. For purposes of this Section 7, the Contingent Compensation
Payments so eliminated shall be referred to as the “Eliminated
Payments” and the aggregate amount (determined in accordance with
Proposed Treasury Regulation Section 1.280G-1, Q/A-30 or any successor
provision) of the Contingent Compensation Payments so eliminated shall
be referred to as the “Eliminated Amount.”

	 	(b)	 	Notwithstanding the provisions of Section 7(a), no such reduction
in Contingent Compensation Payments shall be made if (i) the Eliminated
Amount (computed without regard to this sentence) exceeds (ii) 110% of
the aggregate present value (determined in accordance with Proposed
Treasury Regulation Section 1.280G-1, Q/A-31 and Q/A-32 or any
successor provisions) of the amount of any additional taxes that would
be incurred by Executive if the Eliminated Payments (determined without
regard to this sentence) were paid to him (including, state and federal
income taxes on the Eliminated Payments, the

10

 

	 	 	 	excise tax imposed by Section 4999 of the Code payable with respect to
all of the Contingent Compensation Payments in excess of Executive’s
“base amount” (as defined in Section 280G(b)(3) of the Code), and any
withholding taxes). The override of such reduction in Contingent
Compensation Payments pursuant to this Section 7(b) shall be referred
to as a “Section 7(b) Override.” For purpose of this paragraph, if
any federal or state income taxes would be attributable to the receipt
of any Eliminated Payment, the amount of such taxes shall be computed
by multiplying the amount of the Eliminated Payment by the maximum
combined federal and state income tax rate provided by law.

	 	(c)	 	For purposes of this Section 7, the following terms shall have the
following respective meanings:

               (i)
“Change in Ownership or Control” shall mean a
change in the ownership or effective control of Company or in
the ownership of a substantial portion of the assets of
Company determined in accordance with Section 280G(b)(2) of
the Code.

               (ii)
“Contingent Compensation Payment” shall mean any
payment (or benefit) in the nature of compensation that is
made or made available (under this Agreement or otherwise) to
a “disqualified individual” (as defined in Section 280G(c) of
the Code) and that is contingent (within the meaning of
Section 280G(b)(2)(A)(i) of the Code) on a Change in
Ownership or Control of Company.

	 	(d)	 	Any payments or other benefits otherwise due to Executive following
a Change in Ownership or Control that could reasonably be characterized
(as determined by Company) as Contingent Compensation Payments (the
“Potential Payments”) shall not be made until the dates provided for in
this Section 7(d). Within 30 days after each date on which Executive
first becomes entitled to receive (whether or not then due) a
Contingent Compensation Payment relating to such Change in Ownership or
Control, Company shall determine and notify Executive (with reasonable
detail regarding the basis for its determinations) (i) which Potential
Payments constitute Contingent Compensation Payments, (ii) the
Eliminated Amount and (iii) whether the Section 7(b) Override is
applicable. Within 30 days after delivery of such notice to Executive,
Executive shall deliver a response to Company (the “Executive
Response”) stating either (A) that he agrees with Company’s
determination pursuant to the preceding sentence, in which case he
shall indicate, if applicable, which Contingent Compensation Payments,
or portions thereof (the aggregate amount of which, determined in
accordance with Proposed Treasury Regulation Section 1.280G-1, Q/A-30
or any successor provision, shall be equal to the Eliminated Amount),
shall be treated as Eliminated Payments or (B) that he disagrees with
such determination, in which case he shall set forth (i) which
Potential Payments should be characterized as Contingent Compensation
Payments, (ii)

11

 

	 	 	 	the Eliminated Amount, (iii) whether the Section 7(b) Override is
applicable, and (iv) which (if any) Contingent Compensation Payments,
or portions thereof (the aggregate amount of which, determined in
accordance with Proposed Treasury Regulation Section 1.280G-1, Q/A-30
or any successor provision, shall be equal to the Eliminated Amount,
if any), shall be treated as Eliminated Payments. In the event that
Executive fails to deliver an Executive Response on or before the
required date, Company’s initial determination shall be final and the
Contingent Compensation Payments that shall be treated as Eliminated
Payments shall be determined by Company in its absolute discretion.
If Executive states in the Executive Response that he agrees with
Company’s determination, Company shall make the Potential Payments to
Executive within three business days following delivery to Company of
the Executive Response (except for any Potential Payments which are
not due to be made until after such date, which Potential Payments
shall be made on the date on which they are due). If Executive states
in the Executive Response that he disagrees with Company’s
determination, then, for a period of 60 days following delivery of the
Executive Response, Executive and Company shall use good faith efforts
to resolve such dispute. If such dispute is not resolved within such
60-day period, such dispute shall be settled exclusively by
arbitration in Boca Raton, Florida, in accordance with the rules of
the American Arbitration Association then in effect. Judgment may be
entered on the arbitrator’s award in any court having jurisdiction.
Company shall, within three business days following delivery to
Company of the Executive Response, make to Executive those Potential
Payments as to which there is no dispute between Company and Executive
regarding whether they should be made (except for any such Potential
Payments which are not due to be made until after such date, which
Potential Payments shall be made on the date on which they are due).
The balance of the Potential Payments shall be made within three
business days following the resolution of such dispute. Subject to
the limitations contained in Sections 7(a) and (b) hereof, the amount
of any payments to be made to Executive following the resolution of
such dispute shall be increased by amount of the accrued interest
thereon computed at the prime rate announced from time to time by
Citibank, compounded monthly from the date that such payments
originally were due.

	 	(e)	 	Upon the written request of Executive (which request must specify
Executive’s actual tax circumstances) delivered to Company within 90
days following the timely filing of all relevant tax returns for the
Executive for the year or other taxable period in which the Eliminated
Payments would have been made, the Eliminated Payments shall be
recomputed based upon the Executive’s actual tax circumstances and the
reference to “110%” in clause (ii) of Section 7(b) shall be deemed to
be “100%”. If, as a result of such recomputation, there are no
Eliminated Payments, the Executive shall become entitled to receive
Contingent Compensation Payments previously treated as Eliminated
Payments within 10 days of the delivery of the aforementioned request.

12

 

	 	(f)	 	The provisions of this Section 7 are intended to apply to any and
all payments or benefits available to Executive under this Agreement or
any other agreement or plan of Company under which Executive receives
Contingent Compensation Payments.

     Section 8
- Other Agreements.

	 	(a)	 	Non-Solicitation; Non-Disclosure, etc. On this date, and in
consideration for the provisions of this Agreement, among other things,
Executive has separately executed a Non-Competition and
Non-Solicitation Agreement (the “Standard Agreement”). Executive
hereby reaffirms his agreement to the terms and conditions set forth in
the Standard Agreement.

	 	(b)	 	Offer Letter. The Offer Letter is hereby superseded in its
entirety and shall have no further force or effect.

	 	(c)	 	No Violation of Other Agreements. Executive hereby represents
that he is not bound by the terms of any agreement with any previous
employer or other party to refrain from using or disclosing any trade
secret or confidential or proprietary information in the course of his
employment with Company or to refrain from competing, directly or
indirectly, with the business of such previous employer or any other
party, except for any such agreement that have been disclosed to the
Company and that could not reasonably be expected to compromise
Executive’s ability to perform his duties as Chief Executive Officer of
Company. Executive further represents that, to his knowledge and
belief, he has not breached any agreement not to compete or any
agreement to keep in confidence proprietary information, knowledge or
data acquired by him in confidence or in trust prior to his employment
with Company, and Executive acknowledges Company’s desire and direction
that he not breach any such agreement in the performance of his
services hereunder. Accordingly, Company agrees that any failure or
refusal of Executive to perform his duties as Chief Executive Officer
of Company shall not constitute “Cause” to the extent such failure or
refusal is attributable to Executive’s compliance with such agreements.

13

 

     Section 9
- Notices. All notices or communications hereunder shall be in
writing, addressed as follows:

	 	 	 	 	 
	

	 	To Company:
	 	Eclipsys Corporation

1750 Clint Moore Road

Boca Raton, FL 33487

ATTN: Chairman of the Board
	 
	 	 	 	 
	

	 	with a copy to:
	 	Brent B. Siler

Hale and Dorr LLP

11951 Freedom Drive

Suite 1400

Reston, Virginia 20190
	 
	 	 	 	 
	

	 	To Executive:
	 	Paul L. Ruflin

5601 Rico Drive

Boca Raton, FL 33489
	 
	 	 	 	 
	

	 	with a copy to:
	 	Michael G. Riley, Esq.

McDonald Hopkins Co., L.P.A.

600 Superior Avenue, Suite 2100

Cleveland, OH 44114

Any such notice or communication shall be delivered by hand or sent certified
or registered mail, return receipt requested, postage prepaid, or by reputable
overnight courier addressed as above (or to such other address as such party
may designate in a notice duly delivered as described above), and the time of
actual delivery, if delivered by hand, the next business day, if sent by
overnight courier, or the third (3rd) business day after the actual date of
mailing, if sent by mail, shall constitute the time at which notice was given.

     Section 10
- Separability. If any provision of this Agreement shall be
declared to be invalid or unenforceable, in whole or in part, such invalidity
or unenforceability shall not affect the remaining provisions hereof which
shall remain in full force and effect.

     Section 11
- Assignment and Assumption. This contract shall be binding
upon and inure to the benefit of the heirs and representatives of Executive and
the assigns and successors of Company, but neither this Agreement nor any
rights or obligations hereunder shall be assignable or otherwise subject to
hypothecation by Executive (except by will or by operation of the laws of
interstate succession) or by Company, except that Company may assign this
Agreement to any successor (whether by merger, purchase or otherwise) to all or
substantially all of the stock, assets or business of Company.

14

 

     Section 12
- Amendment. This Agreement may only be amended by written
agreement of the parties hereto.

     Section 13
- Survivorship. The respective rights and obligations of the
parties hereunder shall survive any termination of this Agreement to the extent
necessary to the intended preservation of such rights and obligations. The
provisions of this Section 13 are in addition to the survivorship provisions of
any other section of this Agreement.

     Section 14
- Governing Law; Venue and Jurisdiction. This Agreement shall
be governed by and construed under and in accordance with the laws of the State
of Florida (without reference to the conflicts of law provisions thereof). If
any judicial or administrative proceeding or claim relating to or pertaining to
this Agreement is initiated by either party hereto, such proceeding or claim
shall and must be filed in a state or federal court located in Palm Beach
County, Florida, and Company and Executive each consents to the jurisdiction of
such a court..

     Section 15
- Prior Agreement; Coordination of Benefits. This Agreement,
along with the Standard Agreement, contains the entire understanding between
the parties hereto regarding terms of Executive’s employment and supersedes in
all respects any prior or other employment agreement or understanding, both
written and oral. In the event of a conflict between this Agreement and any
policy or plan that applies generally to employees of Company regarding
performance bonuses, healthcare, retirement, severance, change of control,
relocation, or equity programs such as Restricted stock or Option awards, this
Agreement shall control unless the generally applicable plan or program would
provide a greater benefit or award to Executive, in which case the terms of
such plan or program shall control over this Agreement.

     Section 16
- Withholding. Company shall be entitled to withhold from
payment any amount of withholding required by law.

     Section 17
- Section Headings and Construction. The headings of sections
in this Agreement are provided for convenience only and will not effect its
construction or interpretation. All references to “Section” or “Sections”
refer to the corresponding section or sections of this Agreement unless
otherwise specified. All words used in this Agreement will be construed to be
of such gender or number as circumstances require.

     Section 18
- Counterparts. This Agreement may be executed in one (1) or
more counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute
one and the same Agreement.

     Section 19
- Acknowledgement. Executive states and represents that he has
had an opportunity to fully discuss and review the terms of this Agreement with
an attorney. Executive further states and represents that he has carefully
read this Agreement, understands the contents

15

 

herein, freely and voluntarily assents to all of the terms and conditions
hereof, and signs his name of his own free act.

     Intending to be legally bound hereby, the parties have executed this
Agreement on the date set forth above.

	 	 	 	 	 
	 	 	
COMPANY
	 
	 	 	 	 
	 	 	ECLIPSYS CORPORATION
	 	 	 
	

	 	By:
	 	     /s/ Eugene V. Fife
	

	 	 	 	

	

	 	 	 	     Eugene V. Fife, Chairman of the Board
	 
	 	 	 	 
	 	 	
EXECUTIVE
	 
	 	 	 	 
	

	 	 	 	     /s/ Paul L. Ruflin
	 	 	

	 	 	Paul L. Ruflin

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EXHIBIT A

     “Change in Control” means an event or occurrence set forth in any one or
more of subsections (a) through (d) below (including an event or occurrence
that constitutes a Change in Control under one of such subsections but is
specifically exempted from another such subsection) that occurs during the Term
of Employment:

          (a) the acquisition by an individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) (a “Person”) of beneficial ownership of any
capital stock of the Company if, after such acquisition, such Person
beneficially owns (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) 30% or more of either (x) the then-outstanding shares of common
stock of the Company (the “Outstanding Company Common Stock”) or (y) the
combined voting power of the then-outstanding securities of the Company
entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that for purposes of this
subsection (a), the following acquisitions shall not constitute a Change in
Control: (i) any acquisition directly from the Company (excluding an
acquisition pursuant to the exercise, conversion or exchange of any security
exercisable for, convertible into or exchangeable for common stock or voting
securities of the Company, unless the Person exercising, converting or
exchanging such security acquired such security directly from the Company or an
underwriter or agent of the Company), (ii) any acquisition by the Company,
(iii) any acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any corporation controlled by the Company, (iv)
any acquisition by any corporation pursuant to a transaction which complies
with clauses (i) and (ii) of subsection (c) below; or (v) any acquisition by
General Atlantic Partners 28, L.P., General Atlantic Partners 38, L.P., General
Atlantic Partners 47, L.P., GAP Coinvestment Partners, L.P., General Atlantic
Partners, LLC, and any person directly or indirectly controlled (within the
meaning of Rule 12b-2 promulgated under the Exchange Act) by any of the
foregoing entities described in this clause (v) (each such party is referred to
herein as an “Exempt Person”) of any shares of Common Stock; or

          (b) such time as the Continuing Directors (as defined below) do not
constitute a majority of the Board (or, if applicable, the Board of Directors
of a successor corporation to the Company), where the term “Continuing
Director” means at any date a member of the Board (i) who was a member of the
Board on the date of the execution of this Agreement or (ii) who was nominated
or elected subsequent to such date by at least a majority of the directors who
were Continuing Directors at the time of such nomination or election or whose
election to the Board was recommended or endorsed by at least a majority of the
directors who were Continuing Directors at the time of such nomination or
election; provided, however, that there shall be excluded from this clause (ii)
any individual whose initial assumption of office occurred as a result of an
actual or

17

 

threatened election contest with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or consents, by
or on behalf of a person other than the Board; or

          (c) the consummation of a merger, consolidation, reorganization,
recapitalization or statutory share exchange involving the Company or a sale or
other disposition of all or substantially all of the assets of the Company in
one or a series of transactions (a “Business Combination”), unless, immediately
following such Business Combination, each of the following two conditions is
satisfied: (i) all or substantially all of the individuals and entities who
were the beneficial owners of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of the
then-outstanding shares of common stock and the combined voting power of the
then-outstanding securities entitled to vote generally in the election of
directors, respectively, of the resulting or acquiring corporation in such
Business Combination (which shall include, without limitation, a corporation
which as a result of such transaction owns the Company or substantially all of
the Company’s assets either directly or through one or more subsidiaries) (such
resulting or acquiring corporation is referred to herein as the “Acquiring
Corporation”) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, respectively; and (ii)
no Person (excluding the Acquiring Corporation, any employee benefit plan (or
related trust) maintained or sponsored by the Company or by the Acquiring
Corporation, or any Exempt Person) beneficially owns, directly or indirectly,
30% or more of the then outstanding shares of common stock of the Acquiring
Corporation, or of the combined voting power of the then-outstanding securities
of such corporation entitled to vote generally in the election of directors
(except to the extent that such ownership existed prior to the Business
Combination); or

          (d) approval by the stockholders of the Company of a complete liquidation
or dissolution of the Company.

18

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