Document:

exv10w2

 

Exhibit 10.2

CHICAGO BRIDGE & IRON COMPANY

INCENTIVE COMPENSATION PLAN

Overview

     
This Incentive Compensation Plan (the “Incentive
Program”) is designed to align the activities of key
managers and other key employees of Chicago Bridge &
Iron Company N.V. and its affiliates (the “Company”)
with the achievement of specific Company-wide financial
performance goals, other Company-wide and business unit
performance goals, and individual performance objectives. The
Company’s overall financial goals are (1) to provide
an above average return to shareholders and (2) to provide
sufficient capital for reinvestment in the business. The
Incentive Program’s financial targets are set in accordance
with these goals. Annual incentive bonuses are paid in cash to
eligible Participants depending upon the achievement of the
bonus goals. Achieving these goals will increase the
Company’s overall competitiveness within the industry, and
create increased value for shareholders. The Incentive Program
provides a method of rewarding the necessary contributions and
leadership behaviors to achieve those results.

     
The bonus opportunity of a Participant will generally be a
target percentage of base salary established at the beginning of
the bonus year based on position and responsibilities. The
amount of the bonus earned is based on the achievement of
corporate goals, business unit goals, if any, and individual
goals.

Administration

     
The Incentive Program is administered by the Organization and
Compensation Committee (the “Committee”) of the
Supervisory Board of Chicago Bridge & Iron Company N.V.
The Committee in its discretion construes and interprets the
Incentive Program and determines all questions arising under the
Incentive Program. The Committee in its discretion directly
determines Company-wide financial performance goals, targets and
achievement percentages based on Company-wide financial
performance, and certifies the achievement of such financial
performance goals.

     
For the Chief Executive Officer and any other individual who is
among the five highest compensated officers of the Company
(together with the Chief Executive Officer, the “Covered
Executives”) in the fiscal year of the Company for which a
bonus is payable (the “Bonus Year”), the Committee
directly determines in its discretion the target financial
performance incentive and the extent to which bonus otherwise
payable under the Incentive Program shall be reduced on the
basis of nonattainment of individual performance goals or other
factors.

     
The Committee may in its discretion delegate other
administrative responsibilities under the Incentive Program to
the management of the Company. Management of the Company shall
make such recommendations to the Committee as the Committee may
deem necessary or appropriate for the administration of this
Incentive Program.

Eligibility

     
Employees of the Company and its affiliates who are in salary
grades 16 and above are eligible to be selected to become
participants (“Participants”) in the Incentive
Program. If an affiliate of the Company has nonconforming salary
grades the Committee in its discretion shall determine the
employees of such affiliate who are considered to be in salary
grades 16 and above. The Committee in its discretion will
directly select Covered Executives who may be Participants.
Company management with the approval of the Committee in its
discretion will select other eligible employees to become
Participants. Selection as a Participant for any Bonus Year
shall not entitle the individual to be a Participant for any
later Bonus Year unless again selected to be a Participant in
such later Bonus Year.

     
A Participant hired during a Bonus Year shall have a prorated
target bonus opportunity based on the number of weeks worked
from the date of hire to the end of the year. A Participant
whose employment

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terminates before the last day of the Bonus Year by reason of a
reduction-in-force program, death, disability or retirement, and
whose employment terminates on or after April 1 of the
Bonus Year, shall have a prorated target bonus opportunity based
on the number of weeks worked from the beginning of the year to
the date of termination. A Participant whose employment
terminates during the Bonus Year under circumstances not
described in the preceding sentence shall not be entitled to a
bonus for such Bonus Year.

     
As a condition to receipt of a bonus a Participant must keep his
or her bonus eligibility strictly confidential. A Participant
may not discuss his or her bonus with any individual other than
(i) the Vice President of Human Resources, Human Resources
staff administering the program, or superiors in the
Participant’s chain of command, (ii) a
Participant’s spouse, attorney or accountant who undertake
not to further disclose the Participant’s bonus
information, or (iii) in a disclosure required by law.

     
Notwithstanding anything in this Incentive Program to the
contrary, no Participant shall have any vested right to a bonus.
The Committee in its sole discretion may reduce or cancel a
Participant’s bonus for any reason or no reason at any time
prior to actual payment.

Company-Wide Performance Goals

     
The bonus opportunity for all Covered Executives for a Bonus
Year will initially depend on achievement of Company-wide
financial performance goals. The bonus opportunity for other
Participants will depend on achievement of Company-wide
financial performance goals to the extent determined by the
Committee.

Performance Goals

     
The Committee selects Company-wide performance measures from
among (i) operating income, (ii) earnings (before or
after any of interest, taxes, depreciation and amortization),
(iii) return on net assets, (iv) net income (before or
after taxes), (v) after-tax return on investment,
(vi) sales, (vii) revenue, (viii) earnings per
share, excluding special charges, as reported to shareholders,
(ix) total shareholder return, (x) return on equity,
(xi) total business return, (xii) return on invested
capital, (xiii) operating cash flow, (xiv) free cash
flow, (xv) economic value added, (xvi) new business
taken measured by revenue, net income or operating income, and
(xvii) contract backlog.

     
The Committee may state performance goals for the foregoing
performance measures using any one or any fixed combination of
those performance measures and using target levels or target
growth rates of any of those performance measures.

     
The Committee may adjust the attainment of any company-wide
performance goal to reflect or offset (i) a change in
accounting standards, (ii) a significant acquisition or
divestiture, (iii) a significant capital transaction, or
(iv) any other unusual, nonrecurring item; provided in any
such case such item is separately identified on the
company’s audited financial statements in accordance with
generally accepted accounting principles, and is attributable to
an event occurring after the performance goals for the year have
were established. However, the actual cost of this Incentive
Program will be part of the calculation of income from
operations.

Performance Target Amount

     
The Committee assigns each Covered Executive a bonus target
amount for achievement of the target goals for the selected
Company-wide financial performance measures for each Bonus Year.
The bonus target amount is set at a percentage of the Covered
Executive’s base salary as in effect at the time the
performance goal is established (“Base Salary”) based
on the Covered Executive’s position and job level. The
target amount shall not exceed 100% of a Covered
Executive’s Base Salary.

Thresholds

     
The Committee selects minimum, target and maximum performance
levels for the Company-wide performance goal(s) it has selected
for Covered Executives. If performance is less than minimum, no
Company-wide performance bonus shall be available. If
performance is at the minimum, 20% of the

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Company-wide performance bonus shall be available. If
performance is at target, the target Company-wide performance
bonus shall be available. If performance is at or above maximum,
200% percent of the Company-wide performance bonus shall be
available. If performance results fall between two designated
thresholds, the Company-wide performance bonus availability will
be determined by interpolation as determined or approved by the
Committee. In no event will the Company-wide performance bonus
availability exceed 200% of Base Salary.

Application of Financial Performance Incentive

     
The Committee shall establish the Company-wide financial
performance goal(s), targets and thresholds within the first
90 days of the each Bonus Year. Prior to the payment of any
bonus and within the first 90 days of the year following
the Bonus Year, the Committee shall certify the extent of
achievement of the Company-wide financial performance goal(s)
for the Bonus Year.

Negative Discretion on Bonus for Covered Executives

     
The bonus for any Covered Executive shall not exceed the amount
of the Company-wide performance bonus earned by such Covered
Executive. The Committee may in its discretion reduce the bonus
otherwise payable to any Covered Executive on the basis of
individual performance or such other factors as the Committee in
its discretion deems appropriate. The exercise of such
discretion with respect to any Covered Executive or other
Participant shall not result in an in increase in the amount
paid to any Covered Executive.

Bonus Pool

     
The bonus opportunity for Participants other than Covered
Executives will depend on achievement of performance measures,
which may include but are not limited to company-wide
performance measures, in any one or fixed combination of
performance measures and using target levels or target growth
rates of any of those performance measures.

Performance Target Amount

     
The Committee assigns each Participant (other than a Covered
Executive) a bonus target amount for achievement of the target
goals for the selected performance measures for each Bonus Year.
The bonus target amount is set at a percentage of the
Participant’s Base Salary based on the Participant’s
position and job level. The target amount shall not exceed 100%
of Base Salary. Prior to the payment of any bonus and within the
first 90 days of the year following the Bonus Year, the
Committee shall determine the level of achievement of the
selected performance goals for the Bonus Year and the resulting
achieved bonus opportunity for each such Participant.

Bonus Pool

     
The sum of the achieved bonus opportunities for all Participants
(other than Covered Executives) shall comprise a bonus pool for
the award of bonuses. Covered Executives shall not participate
in the bonus pool. The Committee may further adjust the
aggregate amount of the bonus pool upward or downward based on
the Company-wide performance. Prior to the payment of any bonus
and within the first 90 days of the year following the
Bonus Year, the Committee shall approve the aggregate amount of
the bonus pool.

Unit Performance and Individual Performance Adjustments

     
The Committee may adjust the achieved bonus opportunity of any
Participant (other than a Covered Executive) or any group of
such Participants upward or downward based on business unit
performance or individual performance or both.

     
The Committee determines business unit performance by applying
(1) the financial performance goals specified above to the
business unit or subunit in which the Participant or group of
Participants is employed, (2) functional non-financial
operating goals specific to such business unit or subunit,
(3) operating safety

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management of the business unit or subunit, or (4) such
similar factors as the Committee deems appropriate. To the
extent the Committee in its discretion deems feasible, the
criteria for determining business unit performance shall be
objective and relate to matters which can be influenced by the
Participant or group of Participants in their individual
capacities and chosen to contribute to meeting the
Company’s short- and long-term goals.

     
The Committee develops criteria for determining individual
performance. Individual goals for Participants shall be
determined by the Participant’s manager and business unit
head, giving appropriate consideration to the manager’s
discretion and judgment in conjunction with the Committee’s
determination of individual performance criteria.

Allocation of Bonus Pool

     
The Committee shall allocate the bonus pool among Participants
(other than Covered Executives) on the basis of achieved bonus
opportunity as adjusted for business unit performance and
individual performance. The aggregate amount of all bonuses
(excluding bonuses of Covered Executives) shall not exceed (but
may be less than) the aggregate amount of the bonus pool. The
actual bonus payable to any Participant shall not exceed 200% of
the Participant’s Base Salary for the Bonus Year.

     
Bonuses shall be paid as soon as reasonably practicable after
their determination and approval by the Committee.

Miscellaneous Provisions

     
Nothing in this Incentive Program restricts the ability of the
Company to pay bonus or other irregular compensation to any
individual for any reason, including but not limited to hiring
incentives, retention incentives, safety and service awards or
bonuses or awards on any other basis.

     
This Incentive Program is effective, beginning with the
Company’s fiscal year 2000, upon its approval by the
shareholders of Chicago Bridge & Iron Company N.V. This
Incentive Program as amended to read as set forth in this
document shall be effective for the Company’s fiscal year
2005 and thereafter, subject to approval by the shareholders of
the Company.

     
The Committee may, without further action by the shareholders,
amend this Incentive Program from time to time, effective
prospectively or retroactively, in any manner the Committee
deems desirable provided, however, that no such amendment shall
enlarge the class of employees who may be Participants in this
Incentive Program, add to the permitted Company-wide financial
performance measures, or increase the maximum bonus payable
under this Incentive Program beyond 200% of any
Participant’s Base Salary, without the consent of the
shareholders of Chicago Bridge & Iron Company N.V.

4exv10w1

 

SEPARATION AGREEMENT AND RELEASE

     This Separation Agreement and Release (the “Agreement”) is made as of the date last set forth
below by and between Eclipsys Corporation (the “Company”) and Paul L. Ruflin (the “Employee”)
(collectively the “parties”).

     WHEREAS, the Employee entered into an Amended and Restated Employment Agreement with the
Company dated March 15, 2005 (the “Employment Agreement”);

     WHEREAS, the Employee separated from the Company pursuant to Section 6(a) of the Employment
Agreement effective April 29, 2005;

     WHEREAS, the parties wish to resolve amicably the Employee’s separation from the Company and
establish the terms of the Employee’s severance arrangement; and

     WHEREAS, the parties wish to enter into this Agreement that will terminate and supercede the
Non-Competition and Non-Solicitation Agreement the Employee executed for the benefit of the Company
(the “Non-Competition Agreement”) and, except as expressly set forth herein, the Employment
Agreement;

     NOW, THEREFORE, in consideration of the promises and conditions set forth herein, the
sufficiency of which is hereby acknowledged, the Company and the Employee agree as follows:

     1. Separation Date. The Employee’s effective date of separation from the Company is
April 29, 2005 (the “Separation Date”).

 

 

     2. Final Wages. The Company has paid the Employee any wages and unused vacation accrued
through the Separation Date.

     3. Consideration. In return for the execution and nonrevocation of this Agreement,
and provided that the Employee has complied with all conditions set forth in this Agreement, the
Company agrees to provide the Employee with the following consideration (the “Consideration”):

          (a) Severance Pay. The Company and Employee hereby agree to terminate the severance
payments provided for in Sections 6(a)(3)(A) and (B) of the Employment Agreement, and in
consideration for such, the Company agrees to pay the Employee as severance pay one million four
hundred ninety-six thousand two hundred seventy-seven dollars and thirty-eight cents
($1,496,277.38), less all applicable state and federal taxes and withholdings, payable in one lump
sum payment within ten (10) days after execution of this Agreement.

          (b) Acceleration of Stock Option Vesting. The vesting of the Employee’s option to
purchase 850,000 shares of the Company’s Voting Common Stock (the “Option”) granted pursuant to the
Non-Qualified Option Agreement between the Company and the Employee dated July 15, 2002 (the
“Option Agreement”) shall be governed by Section 6(a)(3)(D) of the Employment Agreement so that the
Option is exercisable by the Employee as if the Separation Date were April 29, 2006, subject to the
remaining terms of the Option Agreement. For the avoidance of doubt, the Company and the Employee
agree that, pursuant to Section 6(a)(3)(D) of the Employment Agreement, as of the Separation Date
and without taking into account any exercise of the Option after the Separation Date, the Option
was exercisable by the Employee with respect to 637,313 shares of the Company’s Voting Common
Stock, subject to the remaining terms of the Option Agreement.

          (c) Acceleration of Restricted Stock Vesting. The vesting of the Employee’s 100,000
shares of the Company’s Voting Common Stock (the “Restricted Stock”) granted pursuant

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to the Amended and Restated Restricted Stock Agreement (Without 83(b) Election) between the
Company and the Employee dated July 15, 2002 (the “Restricted Stock Agreement”) shall be governed
by Section 6(a)(3)(D) of the Employment Agreement so that the Purchase Option (as defined in the
Restricted Stock Agreement) is exercisable by the Company as if the Separation Date were April 29,
2006, subject to the remaining terms of the Restricted Stock Agreement. For the avoidance of
doubt, the Company and the Employee agree that, pursuant to Section 6(a)(3)(D) of the Employment
Agreement, the Purchase Option is exercisable by the Company with respect to 37,500 shares of the
Restricted Stock, subject to the remaining terms of the Restricted Stock Agreement.

          (d) Benefits Continuation. The Company agrees to pay for the continuation of benefits
under the life, group health and dental insurance benefit plans the Employee (and, if applicable,
his family) was enrolled in immediately prior to the Separation Date until the earlier of: (i) the
end of the eighteen (18) month period following the Separation Date; or (ii) the date on which the
Employee becomes eligible to receive substantially similar benefits under any plan or program from
another employer. The continuing coverage provided under this Section 3(d) is subject to the
Employee’s eligibility and the availability of such continuation under the terms of the applicable
plan documents and all provisions of applicable law. If the Employee is not eligible for such
continued coverage under one or more of the Company-provided benefit plans noted in this Section
3(d), the Company shall pay the Employee the cash equivalent of the cost of replacement insurance
for such continued coverage for the duration of the applicable period, and such payments shall be
made in accordance with the Company’s normal payroll procedures.

          (e) Legal Fees . The Company agrees to pay the Employee, and Employee agrees
to accept, twenty-five thousand dollars ($25,000.00), as payment in full for any obligation owed to
the Employee under Section 4(c) of the Employment Agreement, less all applicable state and

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federal taxes and withholdings, payable in one lump sum payment within ten (10) days after
execution of this Agreement.

     4. Execution of this Agreement. The Company hereby advises the Employee to consult
with an attorney of his own choosing before signing this Agreement and he may take up to twenty-one
(21) days to do so. The Employee must execute and return this Agreement to Mr. Eugene Fife,
Chairman of the Board, no later than June 11, 2005. If the Employee returns the Agreement via
facsimile, he must send the originally executed Agreement via overnight delivery to Mr. Fife within
five (5) days of his execution of the Agreement. The Employee acknowledges that the Consideration
described herein is adequate and sufficient consideration for entering into this Agreement,
including Section 7 hereof.

     5. Release. In exchange for the Consideration, which the Employee acknowledges he
would not otherwise be entitled to receive, the Employee hereby fully, forever, irrevocably and
unconditionally releases, remises and discharges the Company, its officers, directors,
stockholders, affiliates, subsidiaries, parent companies, agents and employees (each in their
individual and corporate capacities) (hereinafter, the “Released Parties”) from any and all claims,
charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money,
costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions,
damages, executions, obligations, liabilities and expenses (including attorneys’ fees and costs),
of every kind and nature that the Employee ever had or now has against any or all of the Released
Parties, including, but not limited to, all claims arising out of his employment with and/or
separation from the Company, including, but not limited to, all employment discrimination claims
under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Age
Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Americans With Disabilities
Act of 1990, 42 U.S.C. § 12101 et seq., the Family and Medical Leave Act, 29 U.S.C.
§ 2601 et seq., the Rehabilitation Act of 1973, 29 U.S.C.

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§ 701 et seq., the Florida Civil Rights Act of 1992, Fla. Stat. ch. 760.01
et seq., Fla. Stat. ch. 448.101 et seq. (Florida anti-retaliation
law), Fla. Stat. ch. 725.07 (Florida law forbidding discrimination in pay) and Fla. Stat. ch.
448.07 (Florida law prohibiting wage rate discrimination based on sex), all as amended, all claims
arising out of the Fair Credit Reporting Act, 15 U.S.C. § 1681
et seq. and the Employee
Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., all as amended, all
common law claims including, but not limited to, actions in tort, defamation and breach of contract
(including, without limitation, claims arising out of or related to the Employment Agreement and
the Non-Competition Agreement), all claims to any non-vested ownership interest in the Company,
contractual or otherwise, including, but not limited to, claims to stock or stock options, and any
claim or damage arising out of the Employee’s employment with and/or separation from the Company
(including a claim for retaliation) under any common law theory or any federal, state or local
statute or ordinance not expressly referenced above; provided, however, that
nothing in this Agreement prevents the Employee from filing, cooperating with, or participating in
any proceeding before the EEOC or a state Fair Employment Practices Agency (except that the
Employee acknowledges and understands that he may not be able to recover any monetary benefits in
connection with any such claim, charge or proceeding).

     6. No Complaints or Charges. The Employee confirms that he has not filed any
complaints or charges against any of the Released Parties with any federal, state or local court or
agency. By entering into this Agreement, the Employee agrees to withdraw any pending complaints
and charges initiated by him in the Company’s Human Resources or Legal Departments.

     7. Noncompetition, Nonsolicitation, Proprietary Information and Developments. The
Employee acknowledges and agrees that:

          (a) Noncompetition and Nonsolicitation. For a period of eighteen (18) months from the
Separation Date, the Employee shall not, in the geographical areas that the Company or

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any of its subsidiaries does business or has done business at the time of the Employee’s
departure, directly or indirectly:

               (i) engage in any business or enterprise (whether as owner, partner, officer, director,
employee, consultant, investor, lender or otherwise, except as the holder of not more than 1% of
the outstanding stock of a publicly-held company) that is competitive with the Company’s business,
including, but not limited to, any business or enterprise that develops, manufactures, markets or
sells any product or service that competes with any product or service developed, manufactured,
marketed or sold, or planned to be developed, manufactured, marketed or sold, by the Company or any
of its subsidiaries while the Employee was employed by the Company; provided,
however, that the Company agrees that, notwithstanding the foregoing, the Employee may
provide consulting services as a partner or employee of a management consulting firm, including a
consulting firm a portion of whose business is competitive with the Company’s business, so long as
and to the extent that the Employee shall not himself, directly or indirectly, (A) engage in any
activity that is competitive with the Company’s business, including without limitation, developing,
manufacturing, marketing or selling any product or service that competes with any product or
service developed, manufactured, marketed or sold, or planned to be developed, manufactured,
marketed or sold, by the Company or any of its subsidiaries while the Employee was employed by the
Company, (B) provide any services to the part of such consulting firm whose business is competitive
with the Company’s business or (C) otherwise violate any of the provisions of this Agreement;

               (ii) either alone or in association with others: (A) solicit, recruit, induce or attempt to
solicit, recruit or induce, or permit any organization directly or indirectly controlled by the
Employee to solicit, recruit, induce or attempt to solicit, recruit or induce, any employee of the
Company to leave the employ of the Company; or (B) solicit, recruit, induce or attempt to solicit,

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recruit or induce for employment or hire or engage as an independent contractor, or permit any
organization directly or indirectly controlled by the Employee to solicit, recruit, induce or
attempt to solicit, recruit or induce for employment or hire or engage as an independent
contractor, any person who was employed by the Company at any time during the term of the
Employee’s employment with the Company; provided, however, that this clause (B)
shall not apply to any individual’s employment with the Company that has been terminated for a
period of six (6) months or longer; or

     (iii) either alone or in association with others, solicit, divert or take away or attempt to
solicit, divert or take away, or permit any organization directly or indirectly controlled by the
Employee to solicit, divert or take away or attempt to solicit, divert or take away, the business
or patronage of any of the clients, customers or accounts or prospective clients, customers or
accounts of the Company that were contacted, solicited or served by the Company at any time during
the term of the Employee’s employment with the Company.

          (b) Proprietary Information.

               (i) The Employee agrees that all information, whether or not in writing, of a private, secret
or confidential nature concerning the Company’s business, business relationships or financial
affairs (collectively, “Proprietary Information”) is and shall be the exclusive property of the
Company. By way of illustration, but not limitation, Proprietary Information may include
discoveries, inventions, products, product improvements, product enhancements, processes, methods,
techniques, formulas, compositions, compounds, negotiation strategies and positions, projects,
developments, plans (including business and marketing plans), research data, clinical data,
financial data (including sales costs, profits and pricing methods), personnel data, computer
programs (including software used pursuant to a license agreement), customer and supplier lists,
and contacts at or knowledge of customers or prospective customers of the Company. The Employee
will not disclose any Proprietary Information to any person or entity

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or use the same for any purpose, or permit such disclosure or use by any third party, without
written approval by an officer of the Company, unless and until such Proprietary Information has
become public knowledge without fault by the Employee.

               (ii) The Employee agrees that all files, disks, documents, letters, memoranda, reports,
records, data, sketches, drawings, models, laboratory notebooks, program listings, computer
equipment or devices, computer programs or other written, photographic, or other tangible material
containing Proprietary Information, whether created by the Employee or others, which came into his
custody or possession, is the exclusive property of the Company and shall not be copied or removed
from the Company premises. All such materials or copies thereof and all tangible property of the
Company in the custody or possession of the Employee have been delivered to the Company, except
that the Employee shall return the Employee’s Company-issued cell phone / personal digital
assistant to the Company within ten (10) days after the date of this Agreement. After such
delivery, the Employee shall not retain any such materials or copies thereof or any such tangible
property.

               (iii) The Employee agrees that his obligation not to disclose or use information and materials
of the types set forth in Sections 7(b)(i) and (ii) above, and his obligation to return materials
and tangible property set forth in Section 7(b)(ii) above, also extends to such types of
information, materials and tangible property of customers of the Company or suppliers to the
Company or other third parties who may have disclosed or entrusted the same to the Company or to
the Employee.

          (c) Developments. If, during the Employee’s employment with the Company or during the
eighteen (18) month period following the Separation Date, the Employee discovers, invents, improves
or creates, either on his own or jointly with others, any process, design, invention, discovery,
article, computer program, documentation or work of authorship (a “Development”) that

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arose out his employment with the Company, such Development shall be the exclusive property of
the Company. The Employee agrees to promptly disclose to the Company in writing the existence of
any such Development. Without additional compensation, the Employee also agrees to execute any
documents that the Company deems appropriate for protecting such Development and the Company’s
intellectual property rights therein. The Employee further agrees to assign and transfer to the
Company his entire right, title and interest in and to such Developments, including any moral
rights that the Employee may claim in any Developments, to perfect assignment and otherwise fully
evidence the Company’s ownership of such Developments. The Company shall pay its expenses of
securing any intellectual property registration. The Employee agrees to cooperate with the Company
with respect to any proceeding involving any of the Developments, regardless of his relationship
with the Company at the time of such proceeding.

          (d) Interpretation. If the Employee violates the provisions of Section 7(a) of this
Agreement, the Employee shall continue to be bound by the restrictions set forth in such section
until a period of eighteen (18) months has expired without any violation of such provisions. If
any restriction set forth in this Section 7 is found by any court of competent jurisdiction to be
unenforceable because it extends for too long a period of time or over too great a range of
activities or in too broad a geographic area, it shall be interpreted to extend only over the
maximum period of time, range of activities or geographic area as to which it may be enforceable.

     8. Notice of Purchase Option Exercise Under Restricted Stock Agreement. Pursuant to
Section 2.2(a) of the Restricted Stock Agreement, the Company is hereby giving the Employee notice
that the Company is exercising its Purchase Option (as defined in the Restricted Stock Agreement)
with respect to all 37,500 of the Unvested Shares (as defined in the Restricted Stock Agreement) as
of April 29, 2005 (after giving effect to the acceleration of vesting provided for in Section
6(a)(3)(D) of the Employment Agreement). Upon receipt of a stock certificate

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representing the Unvested Shares, the Company shall mail or deliver to the Employee three
hundred seventy-five dollars ($375), payable by check, representing the Option Price for the
Unvested Shares.

     9. Responses to Employment Inquiries. All inquiries received from prospective
employers shall be directed to Mr. Eugene Fife, who will state the dates the Employee was employed
by the Company, the last position he held, his duties and responsibilities and his final salary.

     10. Return of Company Property. Except for the Employee’s Company-issued cell phone /
personal digital assistant, the Employee confirms that he has returned to the Company in good
working order all keys, files, records (and copies thereof), equipment (including, but not limited
to, computer hardware, software and printers, wireless handheld devices, cellular phones and
pagers), Company identification, Company vehicles and any other Company-owned property in his
possession or control. The Employee agrees to return his Company-issued cell phone / personal
digital assistant to the Company within ten (10) days after the date of this Agreement. The
Employee further confirms that he has left intact all electronic Company documents, including, but
not limited to, those that he developed or helped to develop during his employment. The Employee
further confirms that he has cancelled all accounts for his benefit, if any, in the Company’s name,
including, but not limited to, credit cards, telephone charge cards, cellular phone and/or pager
accounts and computer accounts.

     11. Business Expenses and Final Compensation. The Company and the Employee
acknowledge that the Company inadvertently over-reimbursed the Employee for business expenses of
four thousand five hundred sixty-nine dollars and thirty-four cents ($4,569.34)(the “Overpaid
Amount”). The Company and the Employee further acknowledge that the Company owes the Employee six
thousand six hundred seventy-four dollars and five cents ($6,674.05) for

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unreimbursed business expenses (the “Unreimbursed Amount”). Accordingly, the Company agrees
to pay the Employee the difference between the Unreimbursed Amount and the Overpaid Amount, which
equals two thousand one hundred four dollars and sixty-six cents ($2,104.66), payable in one lump
sum payment within ten (10) days after the execution of this Agreement (the “Final Reimbursement”).
The Employee acknowledges that upon receipt of the Final Reimbursement he will have been
reimbursed by the Company for all business expenses incurred in conjunction with the performance of
his employment and that no other reimbursements are owed to him. The Employee further acknowledges
that he has received payment in full for all services rendered to the Company and that no other
wages, bonuses, relocation expenses, tax or estate planning expenses, severance pay or other
compensation is owed to him except as provided by Section 3 above.

     12. Nondisparagement. The Employee understands and agrees that as a condition for payment to
him of the Consideration described herein, he will not make any false, disparaging or derogatory
statements to any media outlet, industry group, financial institution or current or former
employee, consultant, client or customer of the Company or any other entity or person regarding the
Company or any of its officers, directors, agents, consultants, employees, customers or suppliers
or about the Company’s business affairs or financial condition.

     13. Confidentiality. To the extent permitted by law, the Employee understands and agrees that
as a condition for payment to him of the Consideration herein described, the contents of the
negotiations and discussions resulting in this Agreement shall be maintained as confidential by the
Employee, his agents and representatives and shall not be disclosed except to the extent required
by federal or state law; provided, however, that nothing herein shall be construed
as preventing the Employee from disclosing that he is bound by the restrictions contained in
Section 7 of this Agreement.

     14. Nature of Agreement. The Employee understands and agrees that this Agreement is

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a severance and separation agreement and does not constitute an admission of liability or
wrongdoing on the part of the Company.

     15. Amendment. This Agreement shall be binding upon the parties and may not be modified in
any manner except by an instrument in writing of concurrent or subsequent date signed by a duly
authorized representative of the parties hereto. This Agreement is binding upon and shall inure to
the benefit of the parties and their respective agents, assigns, heirs, executors, successors and
administrators.

     16. Waiver of Rights. No delay or omission by the Company in exercising any rights
under this Agreement shall operate as a waiver of that or any other right. A waiver or consent
given by the Company on any one occasion shall be effective only in that instance and shall not be
construed as a bar to or waiver of any right on any other occasion.

     17. Validity. Should any provision of this Agreement be declared or be determined by any
court of competent jurisdiction to be illegal or invalid, the validity of the remaining parts,
terms or provisions shall not be affected thereby and said illegal or invalid part, term or
provision shall be deemed not to be a part of this Agreement.

     18. Equitable Remedies. The Employee acknowledges that the restrictions contained in
this Agreement are necessary for the protection of the business and goodwill of the Company and
considers the restrictions to be reasonable for such purpose. The Employee agrees that any breach
of this Agreement is likely to cause the Company substantial and irrevocable damage and that
therefore, in the event of any such breach, the Employee agrees that the Company, in addition to
such other remedies that may be available, shall be entitled to specific performance and other
injunctive relief without posting a bond.

     19. Breach. The Employee acknowledges that, in addition to any other remedies
available to the Company at law or equity, the Company may cease the payment or provision of the

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Consideration described in Section 3 herein immediately and without notice to the Employee in
the event of any breach of this Agreement by the Employee, including, without limitation, any
breach of any representation made by the Employee herein or any breach of Section 7 hereof.

     20. Applicable Law. This Agreement shall be governed by the laws of the State of
Florida without regard to conflict of laws provisions. The Employee hereby irrevocably submits to
the jurisdiction of the courts of the State of Florida, or if appropriate, a federal court located
in the State of Florida (which courts, for purposes of this Agreement, are the only courts of
competent jurisdiction), over any suit, action or other proceeding arising out of, under or in
connection with this Agreement or the subject matter hereof.

     21. Acknowledgments. The Employee acknowledges that he has been given at least twenty-one
(21) days to consider this Agreement, and that the Company advised him in writing to consult with
an attorney of his own choosing prior to signing this Agreement. The Employee understands that he
may revoke this Agreement for a period of seven (7) days after he signs the Agreement, and that the
Agreement shall not be effective or enforceable until the expiration of this seven (7) day
revocation period.

     22. Voluntary Assent. The Employee affirms that no other promises or agreements of
any kind have been made to or with him by any person or entity whatsoever to cause him to sign this
Agreement, and that he fully understands the meaning and intent of this Agreement. The Employee
states and represents that he has had an opportunity to fully discuss and review the terms of this
Agreement with an attorney. The Employee further states and represents that he has carefully read
this Agreement, understands the contents herein, freely and voluntarily assents to all of the terms
and conditions hereof, and signs his name of his own free act.

     23. Entire Agreement. This Agreement contains and constitutes the entire
understanding and agreement between the parties hereto with respect to severance benefits and the
settlement of

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claims against the Company and terminates and supersedes all previous oral and written
negotiations, agreements and commitments in connection therewith, including, but not limited to,
the Non-Competition Agreement and, except as expressly set forth herein, the Employment Agreement;
provided, however, that nothing herein shall terminate or supercede the Option
Agreement, the Restricted Stock Agreement or the Restricted Stock Agreement (With 83(b) Election)
between the Company and the Employee dated July 15, 2002.

     24. Recital Paragraphs. The recital paragraphs at the beginning of this Agreement are
incorporated by reference as if fully set forth herein.

     25. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original, and all of which together shall constitute one and the
same document.

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     IN WITNESS WHEREOF, all parties have set their hand and seal to this Agreement as of the date
set forth below.

	 	 	 	 	 	 	 
	

	 	ECLIPSYS CORPORATION
	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Eugene V. Fife	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Eugene V. Fife	 	 
	

	 	 	 	Chairman of the Board	 	 
	 
	 	 	 	 	 	 
	

	 	Dated:
	 	May 19, 2005	 	 

	 	 	 	 	 
	PAUL L. RUFLIN
	 	 	 	 
	 
	 	 	 	 
	/s/ Paul L. Ruflin

	 	 
	 	 
	 	 	 
	 
	 	 	 	 
	Dated: May 20, 2005
	 	 	 	 

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