Document:

exv10w6

 

Exhibit 10.6

[CONCORD EFS, INC. LETTERHEAD]

September 11, 2002

Mr. Richard Buchignani

6065 River Oaks Cove

Memphis, TN 38120

Dear Richard:

I am pleased to confirm our offer of employment as Vice Chairman and General
Counsel of Concord EFS, Inc. Your salary will be $275,000 annualized. In
addition to your salary, the following compensation stipulations also apply:

BONUS: You are eligible to participate in Concord’s Annual Bonus Program
consistent with members of the Executive Management Staff.

STOCK OPTIONS: You will be granted 25,000 stock options effective October 4,
2002 and will be eligible to participate in the Concord Stock Option Plan as
outlined in the Concord EFS, Inc. 2002 Incentive Stock Option Plan, as amended,
subject in all respects to the terms of the Plan and the Option Agreement
evidencing this grant.

BENEFITS: You are eligible to participate in our healthcare plan (to include
health, disability, and term life), our 401(k) plan, and our Senior Executive
Retirement Savings Plan.

Upon termination, death, disability, change of control, or change of position or
location, Concord will pay one year’s salary to your or your designated
beneficiary(s). Options will continue to vest during the one-year period.

Concord will also pay for professional organization dues, CLE, seminars, and
other customary expenses related to your position.

If you are in agreement with the terms of this offer, please acknowledge your
acceptance by signing in the space provided below and return one copy to me.

Richard, I am looking forward to welcoming you to Concord as a member of our
Executive Management Team.

Sincerely,

/s/ Dan M. Palmer

Dan M. Palmer

Chairman and CEO

	 	 	 	 	 
	 	 	
/s/ J. Richard Buchignani
	 	9/18/02
	 	 	

	 	

	 	 	
Richard Buchignani
	 	Date

JMF/kwexv10w7

 

	 
	CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT WAS OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION IN ACCORDANCE WITH THE
SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED, AND 17 C.F.R. 240.24B-2 AND
200.80. OMITTED INFORMATION WAS REPLACED WITH ASTERISKS

Exhibit 10.7

[Concord EFS, Inc. Letterhead]

August 30, 2002

Bond Isaacson

5216 Providence Country Club Drive

Charlotte, NC. 28277

Dear Bond,

I am pleased to confirm our offer of employment as an Executive Vice President
of Concord, EFS, Inc.

Your salary will be $500,000.00 annualized. In addition to your salary, the
following compensation stipulations also apply:

RELOCATION: Concord has agreed to assist you with all costs associated with
relocation.

SIGNING BONUS: You will receive a signing bonus in your first pay period of
$500,000.00. This bonus is granted under the terms of a prorated 12-month
payback provision (enclosed).

STOCK OPTIONS: You will be granted 400,000 STOCK OPTIONS effective October 4,
2002.

ADDITIONAL COMPENSATION:

In May 2003, you will be granted a bonus of $600,000.00.

In May 2004, you will be granted a bonus of $600,000.00.

Additionally, for every large financial institution included in the following
list that you renew or extend as a client of Concord, you will receive a bonus
of $500,000.00.

***

	 

 

 

	 
	CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT WAS OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION IN ACCORDANCE WITH THE
SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED, AND 17 C.F.R. 240.24B-2 AND
200.80. OMITTED INFORMATION WAS REPLACED WITH ASTERISKS

If you renew or extend *** of the *** financial institutions listed above as a
client of Concord, you will receive a bonus of $2,000,000.00.

You are eligible to participate in our healthcare plan, our 401(k) plan and our
Senior Executive Retirement Savings Plan.

Bond, I am certainly looking forward to welcoming you to Concord as a member of
our Executive Management Team, and developing a mutually beneficial working
relationship.

Sincerely,

/s/ Ed Labry

Ed Labry

President

Concord EFS, Inc.

	 	 	 
	/s/ Bond Isaacson	 	
September 6, 2002
	
	 	

	Bond Isaacson	 	
Date

 

 

SIGN-ON BONUS RE-PAY AGREEMENT

	 	 	 
	EMPLOYEE NAME:	 	
Bond Isaacson
	 	 	

With regards to the sign-on bonus I will receive as part of my employment offer,
I agree that if I am terminated for cause or voluntarily resign my employment
with Concord less than one year following my receipt of such bonus payment, I
will reimburse Concord the amount paid to me. I agree that the amount of the
reimbursement to Concord will be pro-rated based on each full month of
employment I complete following such payment. I further authorize Concord to
deduct from my final paycheck(s), severance, paid time off, or other benefits
any amounts due and owing to Concord pursuant to this Agreement. In the event
the amount deducted from my final paycheck(s), severance, paid time-off or other
benefits is less than the amount I owe Concord pursuant to this Agreement, I
agree to pay Concord the full balance due within 30 days of the termination of
my employment. I also agree to bear all legal and administrative costs incurred
by Concord in enforcing this Agreement.

	 	 	 
	Signature:	 	
/s/ Bond Isaacson
	 	 	

	 	 	 
	Date:	 	
11/9/02
	 	 	

	 	 	 
	Witness	 	
/s/ Bonnie M. Isaacsonexv10w1

 

Exhibit 10.1

AMENDED AND RESTATED COST SHARING AGREEMENT

         THIS AGREEMENT is entered into this 16th day of August, 2002, by and among
SELECT TRANSPORT, INC., a Delaware corporation (“ST”), SELECT MEDICAL
CORPORATION, a Delaware corporation (“SMC”), and SELECT AIR II CORPORATION, a
Pennsylvania corporation (“SAII”).

BACKGROUND

         A.     SMC leases a Cessna Citation III, Manufacturer’s Serial Number
650-0132, Registration Number N49SM (the “Citation III”). The Citation III is
kept in a hangar at the Harrisburg International Airport owned by ST (the
“Hangar”). SAII owns a jet aircraft (the “Citation II”), which also occupies
space in the Hangar.

         B.     On December 11, 2000, SMC, SAII and ST, executed and delivered that
certain Cost Sharing Agreement (the “Prior Agreement”), pursuant to which the
parties thereto provided for an equitable sharing of common expenses relative
to the storage, maintenance and operation of their aircraft. The Prior
Agreement was amended by that certain First Amendment to Cost Sharing Agreement
dated April 1, 2001 and that certain Second Amendment to Cost Sharing Agreement
dated February 12, 2002.

         C.     The parties hereto now desire to amend and restate the Prior Agreement
as hereinafter provided.

         NOW THEREFORE, intending to be legally bound hereby, the parties covenant
and agree as follows:

         1.     Hangar Usage. SMC will pay ST the sum of $3,250 per month (subject to
annual adjustments to be mutually agreed upon by SAII and SMC), which is
intended to reimburse ST for costs attributable to the physical hangar
facility, such as interest, depreciation, real estate taxes, maintenance,
insurance and utilities. Such amount shall be due and payable from SMC to ST
on the first day of each calendar month.

         2.     Mechanic. A full-time, professional aircraft mechanic is employed
through SMC to service the Citation II and the Citation III. Effective on
February 12, 2002, SMC will no longer charge SAII for use of its mechanic in
providing services with respect to the Citation II.

         3.     Pilots. Two full-time professional pilots are employed by SMC. The
pilots fly both the Citation II and the Citation III. In addition, SMC and
SAII from time to time hire contract pilots on a per diem basis. SMC and SAII
will each be solely responsible for retaining and paying such nonemployee
contract pilots to fly their respective aircraft. However, effective on
February 12, 2002, SMC will no longer charge SAII for use of its pilots in
connection with Citation II flights taken for personal trips.

 

 

         4.     Use of Citation II. The parties acknowledge that for business reasons,
SMC may utilize the Citation II from time to time. SMC agrees to pay SAII
$1,500 per flight hour for its use of the Citation II.

         5.     Use of Citation III. Effective on February 12, 2002, the Citation III
(and SMC’s pilots) may be used, from time to time, for personal trips taken by
SMC’s executive officers (who are, in some cases, accompanied by friends and
family members), as follows: (a) Rocco A. Ortenzio, SMC’s Executive Chairman,
and Robert A. Ortenzio, SMC’s President and Chief Executive Officer, may use
the Citation III for personal trips without limitation, (b) all other
executives officers of SMC may use the Citation III only (i) in connection with
a personal emergency or bereavement matter, and (ii) with the prior approval of
either SMC’s Executive Chairman or SMC’s President and Chief Executive Officer.
SMC will receive no charge or reimbursement from any executive officer for
personal use of the Citation III (and SMC’s pilots), or costs incurred by SMC
in connection therewith. In connection with each trip taken by an executive
officer for personal reasons, SMC will calculate the amount of compensation
that must be included in such executive officers W-2 form, as required by IRS
rules.

         6.     Term/Termination. This Agreement shall continue until terminated by
any party, provided no termination will take effect until thirty (30) days
after notice of intent to terminate.

         7.     Notices. All notices, requests, demands, waivers, consents and other
communications hereunder shall be in writing, shall be delivered either in
person, by telegraphic, facsimile or other electronic means, by overnight air
courier or by mail, and shall be deemed to have been duly given and to have
become effective (a) upon receipt if delivered in person or by telegraphic,
facsimile or other electronic means, (b) one business day after having been
delivered to an air courier for overnight delivery, or (c) three business days
after having been deposited in the mail as certified or registered mail, return
receipt requested, all fees prepaid, directed to the party or its permitted
assignees at the following addresses (or at such other address as shall be
given in writing by either party hereto):

	 	 	 	 	 
	Select Air II Corporation

4716 Old Gettysburg Road

P.O. Box 2034

Mechanicsburg, PA 17055

Attn: Michael Salerno	 	
Select Medical Corporation

4716 Old Gettysburg Road

P.O. Box 2034

Mechanicsburg, PA 17055

Attn: Michael E. Tarvin
	 	Select Transport, Inc.

4716 Old Gettysburg Road

P.O. Box 2034

Mechanicsburg, PA 17055

Attn: Michael E. Salerno

         8.     Attorneys’ Fees. In any litigation or other proceeding relating to
this Agreement, the prevailing party shall be entitled to recover its costs and
reasonable attorneys’ fees.

         9.     Successors and Assigns. This Agreement shall be binding upon, and
inure to the benefit of, the parties hereto, and their successors and assigns.

         10.     Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument.

2

 

         11.     Headings. Captions and section headings used herein are for
convenience only and are not a part of this Agreement and shall not be used in
construing it.

         12.     Entire Agreement. This Agreement (including the exhibits hereto, if
any) and the other documents and instruments specifically provided for herein
contain the entire understanding of the parties hereto concerning the subject
matter of this Agreement and, except as expressly provided for herein,
supersede all prior understandings and agreements, whether oral or written,
between them with respect to the subject matter hereof and thereof.

         13.     Amendments. This Agreement may be amended or modified only by an
instrument signed by each of the parties hereto.

         14.     Construction. This Agreement and any documents or instruments
delivered pursuant hereto shall be construed without regard to the identity of
the person who drafted the various provisions of this Agreement. Each and
every provision of this Agreement, and such other documents and instruments,
shall be construed as though the parties participated equally in the drafting
of this Agreement. Consequently, the parties hereto acknowledge and agree that
any rule of construction that a document is to be construed against the
drafting party shall not be applicable either to this Agreement or to such
other documents and instruments.

         15.     No Waiver. The failure of a party hereto to insist, in any one or
more instances, on performance of any items, covenants and conditions of this
Agreement shall not be construed as a waiver or relinquishment of any rights
granted hereunder or of the future performance of any such term, covenant or
condition, but the obligations of the parties with respect thereto shall
continue in full force and effect. No waiver of any provision or condition of
this Agreement by a party hereto shall be valid unless in writing and signed by
such party.

         16.     Governing Law. This Agreement shall be governed by all respects,
including validity, interpretation and effect, by the laws of the Commonwealth
of Pennsylvania, without regard to principles of conflicts of law thereof.

         17.     Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be valid, binding and enforceable
under applicable law, but if any provision of this agreement is held to be
invalid, void (or voidable) or unenforceable under applicable law, such
provision shall be ineffective only to the extent held to be invalid, void (or
voidable) or unenforceable, without affecting the remainder of such provision
or the remaining provisions of this Agreement.

         IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement,
under

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seal, the day and date first above written:

	 	 	 	 	 
	 	 	SELECT TRANSPORT, INC., a Delaware

corporation
	
	
	
	

	 	 	 	 	 
	 	 	/s/ Michael E. Salerno

	 	 	
By:
	 	Michael E. Salerno,

Treasurer
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	SELECT MEDICAL CORPORATION, a

Delaware corporation

	
	
	
	

	 	 	 	 	 
	 	 	/s/ Michael E. Tarvin

	 	 	
By:
	 	Michael E. Tarvin,

Senior Vice President

	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	SELECT AIR II CORPORATION, a

Pennsylvania corporation

	
	
	
	

	 	 	 	 	 
	 	 	/s/ Michael E. Salerno

	 	 	
By:
	 	Michael E. Salerno,

Vice President

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