Document:

EX-10.61

 

Exhibit 10.61

July 18, 2005

Brian Reagan

BioScrip

Dear Brian,

I am pleased that the BioScrip board of directors has approved the executive compensation
arrangements. I want you to be part of the future success of the company and, accordingly, am
pleased to formally extend to you this offer of continued employment with BioScrip. This offer of
employment is in accordance with the June 14, 2004 Change of Control Severance Agreement between
you and Chronimed, Inc (the “Agreement”).

I believe this offer package is fair and competitive and provides substantial opportunity for you
to share in the success of the integration process and the future growth of BioScrip. It is
intended that the arrangements discussed here are privileged communications between you, the
Compensation Committee, and myself and may not be disclosed or communicated without their consent.

Job Title and Authority

Your position would be Executive Vice President, Sales and Corporate Development. In that
capacity, you would be responsible for carrying out your responsibilities as per the attached job
description.

Salary, Benefits and Annual Incentives

Your total cash compensation opportunity is $368,000. It is derived as follows:

Your base salary would be $230,000 per year, payable on a bi-weekly basis. I have attached a
summary of all employee benefit plans, programs and policies currently in effect and for which you
are eligible to participate, with the exception of vacation. You would continue to be eligible to
participate in those plans. You would receive four weeks of vacation time. These benefits will
remain substantially similar until at least January 1, 2006 at which time we expect to merge former
MIM and Chronimed employees into a single benefits program that would continue to be a valuable and
competitive complement to the financial package described herein.

You are also eligible to participate in BioScrip’s annual management bonus plan as long as you
remain continuously employed with BioScrip through the last date of the fiscal year on which a
bonus is based. Your BioScrip target bonus opportunity would be 40% of your base salary, or
$92,000; with an upside opportunity of up to another 20% or $46,000. Keep in mind that your 2005
bonus opportunity will be pro-rated to reflect three quarters. The Plan is based on the
achievement of corporate financial objectives as well as individual objectives; I will be
distributing to you shortly the specifics of the bonus criteria and thresholds determining bonus
entitlement.

Long-Term Incentive Compensation

To facilitate your sharing in the long-term success of BioScrip and to align your interests with
those of BioScrip’s shareholders, BioScrip’s Compensation Committee has granted you 103,500 options
to purchase BioScrip’s common stock, at an exercise price of $6.00 per share. As we discussed,
this number represents 150% of the base grant, is subject to forfeiture in the event that certain
financial performance thresholds are not met, and shall be subject to the terms and conditions of a
stock option agreement that you will receive shortly. For so long as you are

																	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	10900 Red Circle Drive
	 	 
	 	Minnetonka, Minnesota 55343
	 	 
	 	952-979-3600
	 	 
	 	www.bioscrip.com
	 	 

 

 

employed with BioScrip, you will be eligible to participate in BioScrip’s Long Term Incentive Plan.

In future years, targets will be set at the beginning of each year and a performance-based grant
will be made at the end of the year consistent with directives of the
Compensation Committee. The Company reserves the right to modify, amend or terminate the terms and provisions, thresholds
and/or benchmarks of any health or other company benefits, the bonus program, the long term
incentive compensation program or any other benefit or program generally available to you from time
to time and at any time; provided, that any such modification, amendment or termination will not
affect your entitlement to amounts or benefits to be received thereunder and no such modifications,
amendments or termination will adversely affect you for periods prior to the effective date
thereof.

Non Competition & Nondisclosure Agreement

As a condition of continued employment, you will be required to review, complete, and sign the
Restrictive Covenants attached to this offer letter. The job offer and benefits described herein,
shall supersede all prior or current verbal or written arrangements you have with Chronimed Inc.

Please note that this letter does not constitute a guarantee of continued employment for any term.
Under this offer, you will remain an “at will” employee, as you are currently, but of course,
subject to the Agreement. Under the Agreement, if you accept this offer, then, during the one year
period commencing on the date you begin performing services in accordance with this offer, if (i)
BioScrip terminates your employment without cause, (ii) you terminate your employment for Good
Reason, (iii) the Company delivers a notice of termination of the June 14, 2004 Change of Control
Severance Agreement or (iv) fails to assign said agreement to a successor employer, then you shall
be entitled to receive the severance benefit described in Section 4 of the Agreement.

Brian, I believe that BioScrip is in an excellent position to sustain and enhance its success and
growth. I would like you to be a part of that effort. Please confirm your decision as soon as
possible, but within 30 days, acknowledging your acceptance by signing, dating, and returning the
original of this letter and the enclosed forms to me. A copy is enclosed for your records.

Sincerely,

/s/ Henry Blissenbach

Henry Blissenbach

Chief Executive Officer

Agreed and accepted:

	 	 	 
	/s/ Brian Reagan
 

	 	  
	Name
	 	 
	 
	 	 
	8/16/05
 

	 	 
	Date
	 	 

Please return this letter to:

Colleen Haberman

Vice President, Human Resources

10900 Red Circle Drive

Minnetonka, MN 55343

																	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	10900 Red Circle Drive
	 	 
	 	Minnetonka, Minnesota 55343
	 	 
	 	952-979-3600
	 	 
	 	www.bioscrip.comEX-10.62

 

Exhibit 10.62

April 8, 2005

Brian Reagan

1853 Orchard Hill

St. Paul, MN 55118

	 	 	 
	Re:

	 	Amendment to Change of Control Severance Agreement

Dear Brian:

Reference is made to that certain Form of Change of Control Severance Agreement, dated as of June
14, 2004 (the “Agreement”). Capitalized terms used herein and not otherwise defined herein shall
have the meanings given to those terms in the Agreement.

This letter shall serve to amend the time in which the Company must provide you with the Offer or
Termination Advice.

The phrase “thirty (30) days after the Change in Control” contained in the last sentence of the
first paragraph of Section 1 of the agreement is hereby deleted, and substituted therefor shall be
the phrase “fifteen (15) days following the approval of the Offer by the Company’s Board of
Directors or its Compensation Committee”.

Except as modified hereby, the Agreement shall remain unmodified and in full force and effect.

Kindly signify your agreement to the foregoing by signing your name in the place indicated below.

Very truly yours,

/s/  Barry A. Posner

Barry A. Posner

Executive Vice President and General Counsel

Agreed to and Accepted By:

/s/ Brian Reagan

 

Brian Reagan<PAGE>

EXHIBIT 10.2.2

                                 FIRST AMENDMENT
               TO THE SUPPLEMENTAL SAVINGS AND RETIREMENT PLAN OF
                                 ROCKVILLE BANK

The Supplemental Savings and Retirement Plan of Rockville (the "Plan"),
effective May 23, 2005, is amended effective December 13, 2005 as follows:

1. Section 2.05 of the Plan is amended to read in its entirety as follows:

"'Compensation' shall have the same meaning as provided in the 401(k) Plan, but
without the limitation imposed by Section 401(a)(17) of the Code, including,
however, amounts deferred by the Member under this Plan during a Plan Year and
excluding any amounts paid during a Plan Year under any nonqualified deferred
compensation plan within the meaning provided by Section 409A of the Code."<PAGE>

                                                                  EXHIBIT 10.2.3

                                 Rockville Bank
     Officer Incentive Compensation Plan (OICP) Description for Fiscal 2006

I. Plan Purpose - The OICP is an annual, or short-term compensation plan
specifically designed to encourage participants to produce results that enable
The Bank to reach targeted levels of earnings performance for the fiscal year.
The OICP provides participants with an opportunity to earn variable rewards that
are contingent on the actual fiscal performance of the bank and the contribution
that officers make toward that end. A significant portion of the overall annual
cash compensation of participants comes from the OICP.

II. Performance Period - This is an annual plan that is linked with each fiscal
year. This plan description describes the plan as designed for the period
January 1, 2006 through December 31, 2006.

III. Plan Participants - All officers of The Bank are eligible to participate in
the OICP. If an individual joins The Bank as an officer or is promoted to
officer status before June 1 of the fiscal year, the incentive award is prorated
for the amount of time worked during the plan year. Individuals that join the
bank as an officer or are promoted to officer status after June 1 of the plan
year are not eligible to participate in the OICP for that fiscal year.

IV. Participation Levels - Each participant has a target incentive level
identified for the performance period. This is expressed as a percentage of base
salary and a dollar amount. The target incentive is the amount that will be
available if The Bank reaches the earnings target in the business plan. The HR
Committee approves participation levels for the CEO and his/her direct reports
and the CEO approves participation levels for other participating officers. The
SVP HR maintains a record of the target level of performance for each
participant and ensures that all participants are informed of their target
awards and the plan provisions.

V. Plan Formula - The SVP HR and the EVP identify a threshold level of earnings
performance that must be achieved before any incentive awards are made
available. A target, or planned, level of earnings is also determined. This is
the level of earnings that is established in the annual business plan. For FY
2006 the threshold level of performance is set at 75% of plan. At that point the
targeted incentive pool will be 25% funded. As fiscal performance exceeds the
threshold level, and increases in 1% increments, from 75% of plan to 90% of
plan, an additional 1.67% of the target pool will be added at each 1% increase
in plan. At 90% of plan the incentive pool will contain 50% of the target
amount. As fiscal performance exceeds 90% of plan and increases in 1% increments
to 100% of plan, an additional 5.00% of the target pool will be added at each 1%
increase in plan. At the target level of fiscal performance, or 100% of plan,
the incentive pool is sufficient for all participants to be eligible for their
target awards. For Fiscal 2006, the incentive pool will be capped when the
amount reaches the target level.

                                       1

<PAGE>

Individuals in certain roles, like Branch Managers and Commercial Lenders, have
incentive arrangements based on production numbers for their respective branches
and loan portfolios. The incentive awards for Branch managers are contingent on
deposits, loans and Rockville Financial Services referrals for the branches they
manage. The incentive awards for Commercial Lenders are contingent on CRE, C&I
and commercial deposits. However, in order for Branch Managers and Commercial
Lenders to be eligible for any incentive awards, The Bank must reach the
threshold level of fiscal performance. The incentive for the Branch Managers and
Commercial Lenders is then calculated from the performance of the branches and
factors related to loan portfolios.

VI. Plan Communications - Following approval of the OICP by the HR Committee of
the Board of Directors, the SVP HR ensures directly or through others that all
participants are notified of their participation, target awards, the plan
formula, how incentive awards are calculated and what they must do to positively
influence the size of their awards. During the performance period the SVP and
the CEO ensure that all participants are provided with periodic updates on the
status of the OICP.

VII. Award Determination - As soon as practical, following the end of the fiscal
year, the SVP HR the CFO, the EVP and the CEO determine the actual earnings
performance of The Bank and calculate the incentive pool. The actual incentive
pool is divided by the target incentive pool and this percentage is applied to
the target awards of all participants to calculate the formula awards that are
available depending on the personal performance of each officer.

Awards for Branch Managers and Commercial Lenders are calculated from the
formulas established for each of those participants.

Managers appraise the performance of participants who report to them and use
this information to identify the amount of the formula awards that will be paid.
The SVP HR provides guidelines to managers to use in this determination.
Managers submit their recommendations to the SVP HR who forwards them to the CEO
for review.

The CEO and SVP HR present the recommended incentive award payments to the HR
Committee of the Board of Directors for review and approval. As soon as the
awards are approved, the SVP HR notifies participants of their incentive
payments. This process follows the normal communications channels including
functional managers.

VIII. Award Payments - As soon as practical following approval by the HR
Committee of the Board of Directors and before March 15th of the year following
the plan period, incentive awards are paid. The payments are made by separate
check and specifically designated as incentive awards for the fiscal year.

IX. OICP Review -- Each year the CEO reviews the OICP and determines what
modifications are needed for the coming year. The SVP HR ensures that all
participants are informed about any changes in the program.

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