Document:

Exhibit 10.84

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT is made as of the 30th day of October, 2013, by and between SELECT MEDICAL CORPORATION, a Delaware corporation (the “Company”), and THOMAS A. SCULLY, an individual (“Consultant”).

 

WITNESSETH:

 

WHEREAS, the Company desires the services of Consultant, and Consultant is willing to be engaged by the Company in a consulting capacity as an independent contractor, upon and subject to the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the mutual promises herein contained, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.                                      Engagement.  The Company hereby engages Consultant, and Consultant hereby accepts such engagement, on and subject to the terms and conditions set forth herein, to serve the Company in a consulting capacity.

 

2.                                      Term.  The period of service of Consultant to the Company will be for a term of two years commencing on October 31, 2013 and ending on October 30, 2015 (the “Consulting Period”).  Notwithstanding the foregoing, either party hereto may terminate this Agreement at any time, without cause, after giving the other party hereto ten (10) days’ prior written notice of such decision.

 

3.                                      Duties.

 

(a)  Subject to the terms and conditions hereinafter provided, the Company engages Consultant to provide consulting services related to government and regulatory matters and strategies.  During the term of this Agreement, Consultant shall report to either the Executive Chairman or the Chief Executive Officer of the Company.  If agreed upon between the Company and Consultant, Consultant will perform such additional or different duties and services appropriate to Consultant’s abilities.  Consultant shall at all times comply with, and be subject to, such reasonable policies, procedures, rules and regulations as the Company may establish from time to time.

 

(b)  During the Consulting Period, Consultant shall use his best efforts to preserve and promote the name, reputation and business of the Company.  Consultant agrees that at all times during and after the Consulting Period he shall take no action which would adversely affect the name, reputation or business of the Company.

 

4.                                      Compensation.  As compensation for the consulting services rendered hereunder, the Company agrees to cause 100,000 shares of restricted common stock of Select Medical

 

 

Holdings Corporation (“Holdings”) to be issued to the Consultant, such shares to vest 50% on October 30, 2014 and 50% on October 30, 2015, provided that this Agreement remains in effect on such date.  The terms and conditions of such grant of restricted common stock will be subject to the 2011 Equity Incentive Plan, as amended, and that certain Restricted Stock Award Agreement between the Consultant and Holdings, dated of even date herewith.

 

5.                                      Expenses. All reasonable and customary travel expenses incurred by Consultant in performance of the services required by this Agreement, including, but not by way of limitation, all related out-of-pocket expenses, shall be reimbursed promptly by the Company upon appropriate documentation by Consultant.

 

6.                                      Confidentiality.  Consultant covenants and agrees that he will not, to the detriment of the Company, at any time during or after the termination of the Consulting Period, reveal, divulge or make known to any person (other than the Company or its officers, employees or agents who need to know such information, or as a result of legal process) or use for his own account or the account of any other person any confidential or proprietary records, data, trade secrets, customer lists or any other confidential or proprietary information whatsoever (the “Confidential Information”) used by the Company and made known (whether or not with the knowledge and permission of the Company, and whether or not developed, devised or otherwise created in whole or in part by the efforts of Consultant) to Consultant by reason of his association with the Company. Consultant further covenants and agrees that he shall retain all such knowledge and information which he shall acquire or develop respecting such Confidential Information in trust for the sole benefit of the Company and its successors and assigns.

 

7.                                      Independent Contractor; Limitations on Authority.  In the performance of the duties and obligations imposed under this Agreement, it is mutually understood and agreed that Consultant is at all times acting and performing as an independent contractor.  It is agreed by the parties hereto that no act or inaction of Consultant shall be construed to make or render Consultant the agent, employee or servant of the Company.  Consultant shall have no authority to bind the Company by or to any obligation, agreement, promise or representation without first obtaining the Company’s prior written approval.

 

8.                                      Taxes.  Consultant will assume full responsibility for payment of federal, state and local taxes, contributions required under Social Security and any other taxes imposed with respect to his receipt of compensation hereunder.  Consultant agrees to fully indemnify and hold the Company harmless with respect to any claims, assessments, suits, expenses (including, but not limited to reasonable attorneys’ fees) damages, settlements or losses incurred by or threatened against the Company which arise as a result of any taxing authority alleging liability on the part of the Company for any such taxes.

 

9.                                      Entire Agreement. This agreement sets forth the entire agreement and understanding between the Company and you and shall supersede all prior agreements, documents or discussions with respect to the matters herein covered.

 

2

 

10.                               Section Headings. The Section headings of this Agreement are for convenience of reference only and shall not limit or define the text thereof.

 

11.                               Severability. In the event that any one or more of the provisions of this Agreement shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected thereby.

 

12.                               Notices.  All notices and other communications which are required or permitted hereunder shall be in writing and shall be sufficient if mailed by registered or certified mail, postage prepaid to the following addresses:

 

If to Consultant:

 

Thomas A. Scully

c/o Welsh Carson Anderson & Stowe

320 Park Avenue

25th Floor

New York, NY  10022-6815

 

If to the Company:

 

Select Medical Corporation

4714 Gettysburg Road

Mechanicsburg, PA  17055

Attention: General Counsel

 

or such other address as any party hereto shall have specified by notice in writing to the other party hereto. All such notices and communications shall be deemed to have been received on the date of delivery thereof or the third business day after the mailing thereof, whichever is earlier.

 

13.                               Amendments and Waivers. This Agreement may not be modified or amended except by an instrument or instruments in writing signed by the party against whom enforcement or any such modification or amendment is sought.  Either party hereto may, by an instrument in writing, waive compliance by the other party with any term or provision of this Agreement on the part of such other party hereto to be performed or complied with. The waiver by any party hereto of a breach of any term or provision of this Agreement shall not be construed as a waiver of any subsequent or other breach, whether or not similar to the breach waived.

 

14.                               Counterparts. This Agreement may be executed in one or more counterparts and all such counterparts so executed shall constitute an original agreement binding on all the parties but together shall constitute but one instrument.

 

15.                               Successors. This Agreement shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective successors, assigns, heirs and legal representatives.

 

3

 

Consultant may not assign Consultant’s rights or interest in this Agreement, and any purported assignment by Consultant in violation hereof shall be null and void.

 

16.                               Governing Law. This Agreement shall be construed and governed in accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to the conflicts of laws principles thereof.

 

IN WITNESS WHEREOF, Consultant and the Company have executed this Agreement on the date first above set forth.

 

 

	
 
    	
The   Company:
    
	
 
    	
 
    
	
 
    	
SELECT   MEDICAL CORPORATION, a Delaware   corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert A. Ortenzio
    
	
 
    	
 
    	
Robert A. Ortenzio,
    
	
 
    	
 
    	
Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
Consultant:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Thomas A. Scullt
    
	
 
    	
 
    	
Thomas A. Scully
    

 

4Exhibit 10.85

 

SELECT MEDICAL HOLDINGS CORPORATION

RESTRICTED STOCK AWARD AGREEMENT UNDER THE

2011 EQUITY INCENTIVE PLAN

 

This Restricted Stock Award Agreement (this “Agreement”) is made as of October 30, 2013 (the “Effective Date”), between SELECT MEDICAL HOLDINGS CORPORATION, a Delaware corporation (the “Company”), and WILLIAM H. FRIST, an individual (the “Participant”).

 

WHEREAS, the Company has adopted the 2011 Equity Incentive Plan (the “Plan”), all of the terms and provisions of which are incorporated herein by reference and made a part hereof;

 

WHEREAS, the Participant serves as a member of the Board of Directors of the Company;

 

WHEREAS, in order to provide an incentive to the Participant to serve as a consultant under the that certain Consulting Agreement between the Company and the Participant, dated of even date herewith (the “Consulting Agreement”), the Company has approved and authorized the issuance of certain shares of the Common Stock of the Company, par value $.001 per share (the “Stock”), to the Participant, subject to the terms of the Plan and this Agreement; and

 

WHEREAS, all capitalized terms used but not defined herein shall have the meanings set forth in the Plan.

 

NOW, THEREFORE, in consideration of the services to be rendered by the Participant under the Consulting Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Participant agree to the terms and conditions set forth herein.

 

1.                                      Award of Restricted Stock.  The Company hereby awards and issues to the Participant, effective as of the date hereof, 100,000 shares of Stock (the “Restricted Stock”).

 

2.                                      Vesting Schedule. Subject to the further provisions of this Agreement, and the Participant’s continued service under the Consulting Agreement, 50% of the shares of Restricted Stock shall vest on October 30, 2014 and 50% of the shares of Restricted Stock shall vest on October 30, 2015.  The period beginning on the date hereof through and including the vesting date for any shares of Restricted Stock shall be referred to herein as the “Restricted Period” with respect to such shares of Restricted Stock.

 

3.                                      Transferability.  Shares of Restricted Stock which have not vested may not be sold, assigned, transferred, pledged, or otherwise disposed of under any circumstances during the applicable Restricted Period, except that such shares may be transferred to a Permitted Transferee who agrees in writing (in a form satisfactory to the Company and its counsel) to be bound by this Agreement to the same extent as the Participant, and any such transferred shares shall continue to be subject to forfeiture upon the Participant’s termination of service under the Consulting Agreement as provided herein.  The Restricted Stock shall not be subject to

 

 

execution, attachment or similar process during the applicable Restricted Period.  Upon any attempt to transfer, assign, pledge, or otherwise dispose of the Restricted Stock during the applicable Restricted Period contrary to the provisions of the Plan or this Agreement, or upon the levy of any attachment or similar process upon the Restricted Stock during the applicable Restricted Period, the Restricted Stock shall immediately be forfeited to the Company and cease to be outstanding.

 

4.                                      Forfeiture of Restricted Stock.  All unvested shares of Restricted Stock shall immediately be forfeited to the Company and cease to be outstanding upon the termination of the Participant’s service under the Consulting Agreement.  The Participant acknowledges that neither the Participant nor the Participant’s estate will have any claim whatsoever against the Company or any Subsidiary related to any forfeiture of the Restricted Stock.

 

5.                                      Acceleration of Vesting Upon Change of Control.  Upon a Change of Control all Restricted Periods shall terminate and all outstanding shares of Restricted Stock shall be vested in full and all limitations on such Restricted Stock set forth in this Agreement shall automatically lapse.

 

6.                                      Plan Governing.  The Participant hereby acknowledges receipt of a copy of the Plan and accepts and agrees to be bound by all of the terms and conditions of the Plan as if set out verbatim in this Agreement.  In the event of a conflict between the terms of the Plan and the terms of this Agreement, the terms of the Plan shall control.

 

7.                                      Miscellaneous.  This Agreement may be amended only by written agreement of the Participant and the Company and may be amended without the consent of any other person.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, representatives, heirs, descendants, distributees and permitted assigns.  This Agreement may be executed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Effective Date.

 

	
 
    	
Company:
    	
SELECT   MEDICAL HOLDINGS CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Robert A. Ortenzio
    
	
 
    	
 
    	
Name:
    	
Robert   A. Ortenzio
    
	
 
    	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Participant:
    	
/s/   William H. Frist
    
	
 
    	
 
    	
 
    	
William   H. Frist
    

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}]]