Document:

Unassociated Document

    EXHIBIT
      10.2

    EMPLOYMENT
      AGREEMENT

    

    

    This
      EMPLOYMENT AGREEMENT (this “Agreement”)
      is
      made as of February 10, 2006 (“Agreement
      Date”)
      by and
      between Basic Care Networks, Inc., a Delaware corporation (the “Company”),
      and
      Robert S. Goldsamt (“Executive”),
      with
      reference to the following facts:

    

    A. Basic
      Care Networks, Inc., a Delaware corporation (the “Company”),
      is a
      health care management company that manages and operates a number of
      multi-disciplinary medical clinics. 

    

    B. Executive
      has extensive experience in the field of health care management.

    

    C.  The
      Company contemplates filing a registration statement on Form S-1 in connection
      with its firm commitment underwritten initial public offering (“IPO”), which the
      Company anticipates will be declared effective in 2006 (the “Effective
      Date”).
      

    

    D.  The
      Company desires to employ Executive to perform the duties and responsibilities
      described herein on the terms and conditions hereinafter set forth.

    

    NOW,
      THEREFORE, the parties agree as follows:

    

    1.  Employment.
      The
      Company hereby employs Executive and Executive hereby accepts such employment
      upon the terms and conditions hereinafter set forth.

     

    2.  Duties.
      Subject
      to the terms and provisions of this Agreement, Executive is hereby employed
      by
      the Company as Chief Executive Officer of the Company. Executive shall have
      full
      responsibility and authority for such duties as customarily are associated
      with
      service as Chief Executive Officer of the Company at the direction of the Board
      of Directors of the Company (the “Board”).
      Executive shall faithfully and diligently perform such duties assigned to
      Executive and shall report directly to the Board. 

     

    3.  Scope
      of Services.
      Executive shall devote substantially all of his business time, attention,
      energies, skills, learning and efforts to the Company’s business.

     

    4.  Term.
      Subject
      to prior termination of this Agreement as hereinafter provided, the term of
      this
      Agreement shall commence on the Effective Date and shall continue for three
      (3)
      years thereafter, unless earlier terminated as provided in this Agreement.
      

     

    5.  Compensation.

     

    5.1  Salary.
      Executive’s annual compensation (“Base
      Compensation”)
      under
      this Agreement shall be $300,000 per year, prorated for any partial year,
      commencing upon the Effective Date. The Base Compensation shall be payable
      semi-monthly in arrears from the Effective Date in accordance with the ordinary
      payroll procedures of the Company. Any increases in Base Compensation shall
      be
      in the sole and absolute discretion of the Board.

     

    
      
        
        

      

      
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    5.2  Accrued
      Compensation for Prior Services.
      The
      Company agrees that as compensation for prior services rendered by the Executive
      from January 1, 2005 to the Agreement Date, and from the Agreement Date until
      the Effective Date, the Executive shall be entitled to a salary at the rate
      of
      $240,000 per annum, prorated for any partial period, payable within 10 days
      after the Closing of the IPO (on the Effective Date), or a sooner date agreed
      in
      writing by the parties; provided,
      however
      that the compensation provided under this Section 5.2 shall be due and payable
      to the Executive only if the IPO shall have occurred during 2006 while the
      Executive is employed by the Company. 

     

    5.3  Bonus.
      Executive shall be entitled to participate in an executive bonus plan adopted
      by
      the board of directors, or an individual bonus, which shall provide for bonus
      compensation of up to three (3) times Base Compensation based on the
      Executive’s achievement of appropriate performance criteria to be determined by
      the board of directors (or its compensation committee). 

     

    5.4  Expenses.
      The
      Company shall reimburse Executive for all reasonable business, office personnel,
      Company-related entertainment and travel expenses actually incurred or paid
      by
      Executive in the performance of his services on behalf of the Company
      (“Expenses”), in accordance with the Company’s expense reimbursement policy as
      from time to time in effect. In the period prior to the Effective Date:

     

    (a)
       The
      Company agrees to advance, against Expenses incurred by Executive prior to
      the
      Effective Date, an amount equal to $15,000 per month from December 1, 2004
      through and until the earlier of (i) May 15, 2006 or (ii) the Effective Date.
      

     

    (b)
       If
      the
      IPO shall occur, and if total Expenses incurred by the Executive exceed the
      aggregate amount advanced pursuant to Section 5.4(a) as of the Effective Date,
      the Company shall, within 30 days after the Effective Date, reimburse the
      Executive in the amount of such excess. 

     

    (c)
       If
      the
      Effective Date shall occur, the if the aggregate amount advanced pursuant to
      Section 5.4(a) are in excess of Expenses incurred by the Executive as of the
      Effective Date, the Executive shall, promptly after the Effective Date, return
      the amount of such excess to the Company.

     

    5.5  Options.
      The
      Executive shall be eligible to participate in the Company’s 2005 Stock Incentive
      Plan, and receive option grant(s) thereunder for the purchase common stock
      of
      the Company (“Options”
or
      “Option”)
      at the
      discretion of the Board of Directors. The Executive shall receive an initial
      Option, provided that the IPO shall have closed, for the purchase of a number
      of
      shares of Company common stock representing up to five percent (5%) of the
      issued and outstanding common stock of the Company at an exercise price per
      share equal to the per share price in the IPO. Options granted to the Executive
      shall be controlled by the terms and conditions set forth in a Notice of Grant
      and Stock Option Agreement approved by the Board of Directors (“Option
      Agreement”).
      

     

    6.  Other
      Rights and Benefits.
      Executive shall receive all other rights and benefits, including health
      insurance, life insurance, a car allowance, vacation time, sick pay and
      retirement plan participation, as are made available to all other executives
      of
      the Company and its affiliates. 

     

    
      
        
        

      

      
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    7.  Termination.
      Executive’s employment may be terminated as follows:

     

    7.1  Termination
      for Death.
      Executive’s employment shall terminate immediately upon Executive’s
      death.

     

    7.2  Termination
      Upon Disability.
      Executive’s employment shall terminate if Executive should become totally and
      permanently disabled. For purposes of this Agreement, Executive shall be
      considered “totally and permanently disabled” if Executive is treated as
      permanently “disabled” under any permanent disability insurance policy
      maintained by the Company and is entitled to full benefits payable under such
      policy upon a total and permanent disability. In the event any such policy
      is
      either not in force or the benefits are not available under such policy, then
      “total and permanent disability” shall mean the inability of Executive, as a
      result of substance abuse, any mental, nervous or psychiatric disorder, or
      physical condition, injury or illness to perform substantially all of his
      current duties on a full-time basis for a period of six (6) consecutive months,
      as determined by a licensed physician selected by the Board.

     

    7.3  Termination
      by Company for “Cause”.
      The
      Company may terminate this Agreement for “Cause” upon three days written notice
      so long as the Company has given Executive written notice describing the Cause
      pursuant to subsections (c) and/or (e) Executive has not cured such Cause within
      a reasonable time, but no less than 14 days. For purposes of this Agreement,
      “Cause” shall mean the existence or occurrence of any of the
      following:

     

    (a)  Executive’s
      conviction for or pleading of nolo contendre to any felony involving the Company
      or moral turpitude.

     

    (b)  Executive’s
      misappropriation of Company assets.

     

    (c)  Executive’s
      willful violation of a Company policy or a directive of the Board previously
      delivered to him in writing.

     

    (d)  Executive’s
      breach of his obligations set forth in Sections 11, 12, or 13
      below.

     

    (e)  Any
      willful neglect or material breach of duty by Executive under this Agreement,
      or
      any failure by Executive to perform under this Agreement. 

     

    8.  Change
      in Control.
      If this
      Agreement is not assumed upon a Change in Control, Company shall pay Executive
      the balance of all Base Compensation for the remainder of the term set forth
      in
      Section 4, less all appropriate federal and state income and employment taxes,
      promptly upon such Change in Control. If the Executive’s employment is
      terminated by Executive without Cause or terminated by the Company for Cause,
      death or disability of Executive, Executive shall not be entitled to any
      severance pay or other benefits, except as mandated by law. For purposes of
      this
      Agreement, a “Change
      in Control” means
      a
      change in ownership or control of the Company after the effective date of the
      IPO effected through the direct or indirect acquisition by any person or related
      group of persons of securities possessing more than fifty percent (50%) of
      the
      total combined voting power of the Company’s outstanding securities pursuant to
      a tender or exchange offer made directly to the Company’s stockholders which a
      majority of the directors on the board of directors who are not affiliates
      of
      the offeror do not recommend such stockholders accept. 

     

    
      
        
        

      

      
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    9.  Representations
      and Warranties.
      Executive hereby represents and warrants to Company that as of the date of
      execution of this Agreement: (i) this Agreement will not cause or require
      Executive to breach any obligation to, or agreement or confidence with, any
      other person; (ii) Executive is not representing, or otherwise affiliated in
      any
      capacity with, any other lines of products, manufacturers, vendors or customers
      of the Company; and (iii) Executive has not been induced to enter into this
      Agreement by any promise or representation other than as expressly set forth
      in
      this Agreement.

     

    10.  Non-Solicitation.

     

    10.1  Non-Solicitation
      of Employees.
      Executive agrees that he will not, while employed by the Company and for a
      period of two (2) years following termination of such employment:

     

    (a)  directly
      solicit, encourage, or take any other action which is intended to induce any
      other employee of the Company to terminate his or her employment with the
      Company; or 

     

    (b)  directly
      interfere in any manner with the contractual or employment relationship between
      the Company and any such employee of the Company.

     

    The
      foregoing shall not prohibit Executive or any entity with which Executive may
      later be affiliated from hiring a former or existing employee of the Company
      or
      any of its subsidiaries, provided that such hiring does not result from the
      direct actions of Executive. For purposes of this Article 10, Article 11,
      Article 12 and Article 13, any reference to the Company shall include all of
      the
      Company’s Affiliates. As used herein, “Affiliate” means any person or entity
      controlling, controlled by or under common control with another person or
      entity. 

     

    10.2  Non-Solicit
      of Customers with respect to Competitive Business Activity.
      Executive agrees that he will not, while employed by the Company and for a
      period of two (2) years following termination of such employment, directly
      or
      indirectly, whether for his own account or for the account of any other
      individual or entity, solicit the business or patronage of any customers of
      the
      Company with respect to products and/or services directly related to a
      Competitive Business Activity. “Competitive
      Business Activity”
shall
      mean engaging in, whether independently or as an employee, agent, consultant,
      advisor, independent contractor, partner, stockholder, officer, director or
      otherwise, any business which is materially competitive with the business of
      the
      Company as conducted or actively planned to be conducted by the Company during
      his employment by it, provided that Executive shall not be deemed to engage
      in a
      Competitive Business Activity solely by reason of (i) owning 1% or less of
      the
      outstanding common stock of any corporation if such class of common stock is
      registered under Section 12 of the Securities Exchange Act of 1934, or (ii)
      after the termination of his employment by the Company, being employed by or
      otherwise providing services to a corporation having total revenue of at least
      $500 million (or such lower number as may be agreed by the Board) so long as
      such services are provided solely to a division or other business unit of such
      corporation which does not engage in a business which is then competitive with
      the business of the Company. 

     

    
      
        
        

      

      
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    11.  Confidentiality.
      Executive hereby acknowledges that the Company has made and will make available
      to Executive certain customer lists, product design information, performance
      standards and other confidential and/or proprietary information of the Company
      or licensed to the Company, including without limitation trade secrets,
      copyrighted materials and/or financial information of the Company (or any of
      its
      Affiliates), including without limitation, financial statements, reports and
      data (collectively, the “Confidential
      Material”);
      however, Confidential Material does not include any of the foregoing items
      which
      has become publicly known or made generally available through no wrongful act
      of
      Executive or of others who were under confidentiality obligations as to the
      item
      or items involved. Except as essential to Executive’s obligations under this
      Agreement, neither Executive nor any agent, employee, officer, or independent
      contractor of or retained by Executive shall make any disclosure of this
      Agreement, the terms of this Agreement, or any of the Confidential Material.
      Except as essential to Executive’s obligations under this Agreement, neither
      Executive nor any agent, employee, officer, or independent contractor of or
      retained by Executive shall make any duplication or other copy of any of the
      Confidential Material. Immediately upon request from the Company, Executive
      shall return to the Company all Confidential Material. Executive shall notify
      each person to whom any disclosure is made that such disclosure is made in
      confidence, that the Confidential Material shall be kept in confidence by such
      person. Nothing contained in this Section 11 shall be construed as preventing
      Executive from providing Confidential Material in compliance with a valid court
      order issued by a court of competent jurisdiction, providing Executive takes
      reasonable steps to prevent dissemination of such Confidential
      Material.

     

    12.  Proprietary
      Information.
      For
      purposes of this Agreement, “Proprietary
      Information”
shall
      mean any information, observation, data, written material, record, document,
      software, firmware, invention, discovery, improvement, development, tool,
      machine, apparatus, appliance, design, promotional idea, customer list,
      practice, process, formula, method, technique, trade secret, product and/or
      research related to the actual or anticipated research, marketing strategies,
      pricing information, business records, development, products, organization,
      business or finances of the Company. Proprietary Information shall not include
      information in the public domain as of execution of this Agreement except
      through any act or omission of Executive. All right, title and interest of
      every
      kind and nature whatsoever in and to the Proprietary Information made,
      discussed, developed, secured, obtained or learned by Executive during the
      term
      of this Agreement shall be the sole and exclusive property of the Company for
      any purposes or uses whatsoever, and shall be disclosed promptly by Executive
      to
      the Company. The covenants set forth in the preceding sentence shall apply
      regardless of whether any Proprietary Information is made, discovered,
      developed, secured, obtained or learned (a) solely or jointly with others,
      (b)
      during the usual hours of work or otherwise, (c) at the request and upon the
      suggestion of the Company or otherwise, or (d) with the Company’s materials,
      tools, instruments or on the Company’s premises or otherwise. All Proprietary
      Information developed, created, invented, devised, conceived or discovered
      by
      Executive that is subject to copyright protection is explicitly considered
      by
      Executive and the Company to be works made for hire to the extent permitted
      by
      law. Executive hereby forever fully releases and discharges the Company, and
      the
      Company and their respective officers, directors and employees, from and against
      any and all claims, demands, damages, liabilities, costs and expenses of
      Executive arising out of, or relating to, any Proprietary Information. Executive
      shall execute any documents and take any action the Company may deem necessary
      or appropriate to effectuate the provisions of this Agreement, including without
      limitation assisting the Company in obtaining and/or maintaining patents,
      copyrights or similar rights to any Proprietary Information assigned to the
      Company, if the Company, in their sole discretion, requests such assistance.
      Executive shall comply with any reasonable rules established from time to time
      by the Company for the protection of the confidentiality of any Proprietary
      Information. Executive irrevocably appoints the President of the Company to
      act
      as Executive’s agent and attorney-in-fact to perform all acts necessary to
      obtain and/or maintain patents, copyrights and similar rights to any Proprietary
      Information assigned by Executive to the Company under this Agreement if
      (a) Executive refuses to perform those acts, or (b) is unavailable, within
      the meaning of any applicable laws. Executive acknowledges that the grant of
      the
      foregoing power of attorney is coupled with an interest and shall survive the
      death or disability of Executive. Executive shall promptly disclose to the
      Company, in confidence (a) all Proprietary Information that Executive creates
      during the term of this Agreement, and (b) all patent applications, copyright
      registrations or similar rights filed or applied for by Executive within six
      months after termination of this Agreement. Any application for a patent,
      copyright registration or similar right filed by Executive within six months
      after termination of this Agreement shall be presumed to relate to Proprietary
      Information created by Executive during the term of this Agreement, unless
      Executive can prove otherwise. Nothing contained in this Agreement shall be
      construed to preclude the Company from exercising all of its rights and
      privileges as sole and exclusive owner of all of the Proprietary Information
      owned by or assigned to the Company under this Agreement. The Company, in
      exercising such rights and privileges with respect to any particular item of
      Proprietary Information, may decide not to file any patent application or any
      copyright registration on such Proprietary Information, may decide to maintain
      such Proprietary Information as secret and confidential, or may decide to
      abandon such Proprietary Information or dedicate it to the public. Executive
      shall have no authority to exercise any rights or privileges with respect to
      the
      Proprietary Information owned by or assigned to the Company under this
      Agreement. This Agreement does not apply to any Proprietary Information that
      qualifies fully under the provisions of California Labor Code Section 2870
      or
      any similar or successor statute.

     

    
      
        
        

      

      
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    13.  Business
      Opportunities.
      During
      the term of this Agreement, if Executive (or any agent, employee, officer or
      independent contractor of or retained by Executive) becomes aware of, or
      develops, creates, invests, devises, conceives or discovers, any project,
      investment, venture, business or other opportunity (any of the preceding, an
      “Opportunity”)
      that
      is similar to, competitive with, related to or in the same field as the Company,
      or any project, investment, venture, or business of the Company, then Executive
      shall so notify the Company immediately in writing of such Opportunity and
      shall
      use Executive’s good-faith efforts to cause the Company to have the opportunity
      to invest in, participate in or otherwise become affiliated with such
      Opportunity.

     

    14.  Miscellaneous.

     

    14.1  Section
      Headings.
      The
      section headings or captions in this Agreement are for convenience of reference
      only and do not form a part hereof, and do not in any way modify, interpret
      or
      construe the intent of the parties or affect any of the provisions of this
      Agreement.

     

    14.2  Survival.
      The
      obligations and rights imposed upon the parties hereto by the provisions of
      this
      Agreement which relate to acts or events subsequent to the termination of this
      Agreement shall survive the termination of this Agreement and shall remain
      fully
      effective thereafter, including without limitation the obligations of Executive
      with to any Confidential Material under Section 11.

     

    
      
        
        

      

      
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    14.3  Arbitration.
      

     

    (a)  Any
      claim, dispute or other controversy (a “Controversy”)
      relating to this Agreement shall be settled and resolved by binding arbitration
      in Los Angeles County, California before a single arbitrator under the
      Employment Rules of the American Arbitration Association (“AAA”)
      in
      effect at the time a demand for arbitration is made. If there is any conflict
      between the AAA rules and this arbitration clause, this arbitration clause
      will
      govern and determine the rights of the parties. The Parties to this Agreement
      (the “Parties”)
      shall
      be entitled to full discovery regarding the Controversy as permitted by the
      California Code of Civil Procedure. The arbitrator’s decision on the Controversy
      shall be a final and binding determination of the Controversy and shall be
      fully
      enforceable as an arbitration award in any court having jurisdiction and venue
      over the Parties. The arbitrator shall also award the prevailing Party any
      reasonable attorneys’ fees and reasonable expenses the prevailing Party incurs
      in connection with the arbitration, and the non-prevailing Party shall pay
      the
      arbitrator’s fees and expenses. The arbitrator shall determine who is the
      prevailing Party. Each Party also agrees to accept service of process for all
      arbitration proceedings in accordance with AAA’s rules. 

     

    (b)  The
      obligation to arbitrate shall not be binding upon either party with respect
      to
      requests for temporary restraining orders, preliminary injunctions or other
      procedures in a court of competent jurisdiction to obtain interim relief when
      deemed necessary by such court to preserve the status quo or prevent irreparable
      injury pending resolution by arbitration of the actual dispute between the
      Parties.

     

    (c)  The
      provisions of this Section shall be construed as independent of any other
      covenant or provision of this Agreement; provided that, if a court of competent
      jurisdiction determines that any such provisions are unlawful in any way, such
      court shall modify or interpret such provisions to the minimum extent necessary
      to have them comply with the law.

     

    (d)  This
      arbitration provision shall be deemed to be self-executing and shall remain
      in
      full force and effect after expiration or termination of this Agreement. In
      the
      event either party fails to appear at any properly noticed arbitration
      proceeding, an award may be entered against such party by default or otherwise
      notwithstanding said failure to appear.

     

    14.4  Severability.
      Should
      any one or more of the provisions of this Agreement be determined to be illegal
      or unenforceable in any relevant jurisdiction, then such illegal or
      unenforceable provision shall be modified by the proper court, if possible,
      but
      only to the extent necessary to make such provision enforceable, and such
      modified provision and all other provisions of this Agreement shall be given
      effect separately from the provision or portion thereof determined to be illegal
      or unenforceable and shall not be affected thereby; provided
      that,
      any such modification shall apply only with respect to the operation of this
      Agreement in the particular jurisdiction in which such determination of
      illegality or unenforceability is made.

     

    
      
        
        

      

      
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    14.5  Waiver.
      The
      failure of either party to enforce any provision of this Agreement shall not
      be
      construed as a waiver of any such provision, nor prevent such party thereafter
      from enforcing such provision or any other provision of this Agreement. The
      rights granted both parties herein are cumulative and the election of one shall
      not constitute a waiver of such party’s right to assert all other legal remedies
      available under the circumstances.

     

    14.6  Parties
      in Interest.
      Nothing
      in this Agreement, except as expressly set forth herein, is intended to confer
      any rights or remedies under or by reason of this Agreement on any persons
      other
      than the parties to this Agreement and the successors, assigns and affiliates
      of
      the Company, nor is anything in this Agreement intended to relieve or discharge
      the obligation or liability of any third person to any party to this Agreement,
      nor shall any provision give any third person any right of action over or
      against any party to this Agreement.

     

    14.7  Assignment.
      The
      rights and obligations under this Agreement shall be binding upon, and inure
      to
      the benefit of, the heirs, executors, successors and assigns of Executive and
      the Company. Except as specifically provided in this Section 14, neither the
      Company nor Executive may assign this Agreement or delegate their respective
      responsibilities under this Agreement without the consent of the other party
      hereto. Upon the sale, exchange or other transfer of substantially all of the
      assets of the Company, the Company shall assign this Agreement to the transferee
      of such assets. No assignment of this Agreement by the Company shall relieve
      the
      Company of, and the Company shall remain obligated to perform, its duties and
      obligations under this Agreement, including, without limitation, payment of
      the
      Base Compensation set forth in Section 5, above.

     

    14.8  Attorneys’
      Fees.
      In the
      event of any Controversy, suit, action or arbitration to enforce any of the
      terms or provisions of this Agreement, the prevailing party shall be entitled
      to
      its reasonable attorneys’ fees and costs. The foregoing entitlement shall also
      include attorneys’ fees and costs of the prevailing party on any appeal of a
      judgment and for any action to enforce a judgment.

     

    14.9  Modification.
      This
      Agreement may be modified only by a contract in writing executed by the
      party(ies) to this Agreement against whom enforcement of such modification
      is
      sought.

     

    14.10  Prior
      Understandings.
      This
      Agreement contains the entire agreement between the parties to this Agreement
      with respect to the subject matter of this Agreement, is intended as a final
      expression of such parties’ agreement with respect to such terms as are included
      in this Agreement, is intended as a complete and exclusive statement of the
      terms of such agreement, and supersedes all negotiations, stipulations,
      understandings, agreements, representations and warranties, if any, with respect
      to such subject matter, which precede or accompany the execution of this
      Agreement.

     

    14.11  Interpretation.
      Whenever the context so requires in this Agreement, all words used in the
      singular shall be construed to have been used in the plural (and vice versa),
      each gender shall be construed to include any other genders, and the word
“person” shall be construed to include a natural person, a corporation, a firm,
      a partnership, a joint venture, a trust, an estate or any other
      entity.

     

    
      
        
        

      

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

     

    14.13  Applicable
      Law.
      This
      Agreement and the rights and obligations of the parties hereunder shall be
      construed under, and governed by, the laws of the State of California without
      giving effect to conflict of laws provisions.

     

    14.14  Drafting
      Ambiguities.
      Each
      party to this Agreement has reviewed and revised this Agreement. Each party
      to
      this Agreement has had the opportunity to have such party’s legal counsel review
      and revise this Agreement. The rule of construction that any ambiguities are
      to
      be resolved against the drafting party shall not be employed in the
      interpretation of this Agreement or of any amendments or exhibits to this
      Agreement.

     

    

     

    [Signature
      Page Follows]

    
      
        
        

      

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

     

    
 

    THE
      COMPANY:

    

    BASIC
      CARE NETWORKS, INC.,

    a
      Delaware corporation

    

    By:  /s/
      David Rapoport

    

    Name: David
      Rapoport

    

    Title: President

     

    

    EXECUTIVE:

    

    /s/
      Robert Goldsamt

    Robert
      Goldsamt

    

    

    

    
      
        
        

      

      
        10Unassociated Document

    EXHIBIT
      10.3

    EMPLOYMENT
      AGREEMENT

    

    

    This
      EMPLOYMENT AGREEMENT (this “Agreement”)
      is
      made as of February 10, 2006 (the “Agreement
      Date”)
      by and
      between Basic Care Networks, Inc., a Delaware corporation (the “Company”),
      and
      David Rapoport (“Executive”),
      with
      reference to the following facts:

    

    A. Basic
      Care Networks, Inc., a Delaware corporation (the “Company”),
      is a
      health care management company that manages and operates a number of
      multi-disciplinary medical clinics. 

    

    B. Executive
      has extensive experience in the field of health care management.

    

    C.  The
      Company contemplates filing a registration statement on Form S-1 in connection
      with its firm commitment underwritten initial public offering (“IPO”), which the
      Company anticipates will be declared effective in 2006 (the “Effective
      Date”).
      

    

    D.  The
      Company desires to employ Executive to perform the duties and responsibilities
      described herein on the terms and conditions hereinafter set forth.

    

    NOW,
      THEREFORE, the parties agree as follows:

    

    1.  Employment.
      The
      Company hereby employs Executive and Executive hereby accepts such employment
      upon the terms and conditions hereinafter set forth.

     

    2.  Duties.
      Subject
      to the terms and provisions of this Agreement, Executive is hereby employed
      by
      the Company as President and Chief Operating Officer of the Company. Executive
      shall have full responsibility and authority for such duties as customarily
      are
      associated with service as the President and Chief Operating Officer of the
      Company at the direction of the Board of Directors of the Company (the
“Board”).
      Executive shall faithfully and diligently perform such duties assigned to
      Executive and shall report directly to the Board. The Executive shall be
      expected to work in Los Angeles, California, unless the Company and Executive
      mutually agree in writing that the Executive shall based elsewhere.

     

    3.  Scope
      of Services.
      Executive shall devote substantially all of his business time, attention,
      energies, skills, learning and efforts to the Company’s business.

     

    4.  Term.
      Subject
      to prior termination of this Agreement as hereinafter provided, the term of
      this
      Agreement shall commence on the Effective Date and shall continue for three
      (3)
      years, unless earlier terminated as provided in this Agreement. 

     

    5.  Compensation.

     

    5.1  Salary.
      Executive’s annual compensation (“Base
      Compensation”)
      under
      this Agreement shall be $200,000 per year, prorated for any partial year,
      commencing upon the Effective Date, for the term of this Agreement. The Base
      Compensation shall be payable semi-monthly in arrears from the Effective Date
      in
      accordance with the ordinary payroll procedures of the Company. Any increases
      in
      Base Compensation shall be in the sole and absolute discretion of the Board.
      

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.2  Bonus.
      Executive shall be entitled to participate in an executive bonus plan adopted
      by
      the board of directors, or an individual bonus, which shall provide for bonus
      compensation of up to two (2) times Base Compensation based on the Executive’s
      achievement of appropriate performance criteria to be determined by the board
      of
      directors (or its compensation committee). 

     

    5.3  Expenses.
      The
      Company shall reimburse Executive for all reasonable business, entertainment
      and
      travel expenses actually incurred or paid by Executive in the performance of
      his
      services on behalf of the Company, in accordance with the Company’s expense
      reimbursement policy as from time to time in effect.

     

    5.4  Options.
      The
      Executive shall be eligible to participate in the Company’s 2005 Stock Incentive
      Plan, and receive option grant(s) thereunder for the purchase common stock
      of
      the Company (“Options”
or
      “Option”)
      at the
      discretion of the Board of Directors. The Executive shall receive an initial
      Option, provided that the IPO shall have closed, for the purchase of a number
      of
      shares of Company common stock representing up to two percent (2%) of the issued
      and outstanding common stock of the Company at an exercise price per share
      equal
      to the per share price in the IPO. Options granted to the Executive shall be
      controlled by the terms and conditions set forth in a Notice of Grant and Stock
      Option Agreement approved by the Board of Directors (“Option
      Agreement”).
      

     

    6.  Other
      Rights and Benefits.
      Executive shall receive all other rights and benefits, including health
      insurance, life insurance, a car allowance, vacation time, sick pay and
      retirement plan participation, as are made available to all other executives
      of
      the Company and its affiliates. 

     

    7.  Termination.
      Executive’s employment may be terminated as follows:

     

    7.1  Termination
      by the Company or Executive.
      

     

    (a)  During
      the one (1) year period after the Effective Date, this Agreement may not be
      terminated by either party except pursuant to Section 7.2, 7.3 or 7.4 below.
      

     

    (b)  After
      the
      one (1) year period in Section 7.1(a), for two (2) years thereafter, Executive
      may not be terminated by the Company except pursuant to Section 7.2, 7.3 or
      7.4
      below, provided, however that during said two year period the board of directors
      of the Company may alter the responsibilities of the Executive to other
      senior-level functions, and change the Executive’s title to a mutually agreeable
      alternative title. 

     

    7.2  Termination
      for Death.
      Executive’s employment shall terminate immediately upon Executive’s
      death.

     

    7.3  Termination
      Upon Disability.
      Executive’s employment shall terminate if Executive should become totally and
      permanently disabled. For purposes of this Agreement, Executive shall be
      considered “totally and permanently disabled” if Executive is treated as
      permanently “disabled” under any permanent disability insurance policy
      maintained by the Company and is entitled to full benefits payable under such
      policy upon a total and permanent disability. In the event any such policy
      is
      either not in force or the benefits are not available under such policy, then
      “total and permanent disability” shall mean the inability of Executive, as a
      result of substance abuse, any mental, nervous or psychiatric disorder, or
      physical condition, injury or illness to perform substantially all of his
      current duties on a full-time basis for a period of six (6) consecutive months,
      as determined by a licensed physician selected by the Board.

     

    
      
         

      

      
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    7.4  Termination
      by Company for “Cause”.
      The
      Company may terminate this Agreement for “Cause” upon three days written notice
      so long as the Company has given Executive written notice describing the Cause
      pursuant to subsections (c) and/or (e) Executive has not cured such Cause within
      a reasonable time, but no less than 14 days. For purposes of this Agreement,
      “Cause” shall mean the existence or occurrence of any of the
      following:

     

    (a)  Executive’s
      conviction for or pleading of nolo contendre to any felony involving the Company
      or moral turpitude.

     

    (b)  Executive’s
      misappropriation of Company assets.

     

    (c)  Executive’s
      willful violation of a Company policy or a directive of the Board previously
      delivered to him in writing.

     

    (d)  Executive’s
      breach of his obligations set forth in Sections 11, 12, or 13
      below.

     

    (e)  Any
      willful neglect or material breach of duty by Executive under this Agreement,
      or
      any failure by Executive to perform under this Agreement. 

     

    8.  Change
      in Control.
      If this
      Agreement is not assumed upon a Change in Control, Company shall pay Executive
      the balance of all Base Compensation for the remainder of the term set forth
      in
      Section 4, less all appropriate federal and state income and employment taxes,
      promptly upon such Change in Control. If the Executive’s employment is
      terminated by Executive without Cause or terminated by the Company for Cause,
      death or disability of Executive, Executive shall not be entitled to any
      severance pay or other benefits, except as mandated by law. For purposes of
      this
      Agreement, a “Change
      in Control” means
      a
      change in ownership or control of the Company after the effective date of the
      IPO effected through the direct or indirect acquisition by any person or related
      group of persons of securities possessing more than fifty percent (50%) of
      the
      total combined voting power of the Company’s outstanding securities pursuant to
      a tender or exchange offer made directly to the Company’s stockholders which a
      majority of the directors on the board of directors who are not affiliates
      of
      the offeror do not recommend such stockholders accept. 

     

    9.  Representations
      and Warranties.
      Executive hereby represents and warrants to Company that as of the date of
      execution of this Agreement: (i) this Agreement will not cause or require
      Executive to breach any obligation to, or agreement or confidence with, any
      other person; (ii) Executive is not representing, or otherwise affiliated in
      any
      capacity with, any other lines of products, manufacturers, vendors or customers
      of the Company; and (iii) Executive has not been induced to enter into this
      Agreement by any promise or representation other than as expressly set forth
      in
      this Agreement.

     

    
      
         

      

      
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    10.  Non-Solicitation.

     

    10.1  Non-Solicitation
      of Employees.
      Executive agrees that he will not, while employed by the Company and for a
      period of two (2) years following termination of such employment:

     

    (a)  directly
      solicit, encourage, or take any other action which is intended to induce any
      other employee of the Company to terminate his or her employment with the
      Company; or 

     

    (b)  directly
      interfere in any manner with the contractual or employment relationship between
      the Company and any such employee of the Company.

     

    The
      foregoing shall not prohibit Executive or any entity with which Executive may
      later be affiliated from hiring a former or existing employee of the Company
      or
      any of its subsidiaries, provided that such hiring does not result from the
      direct actions of Executive. For purposes of this Article 10, Article 11,
      Article 12 and Article 13, any reference to the Company shall include all of
      the
      Company’s Affiliates. As used herein, “Affiliate” means any person or entity
      controlling, controlled by or under common control with another person or
      entity. 

     

    10.2  Non-Solicit
      of Customers with respect to Competitive Business Activity.
      Executive agrees that he will not, while employed by the Company and for a
      period of two (2) years following termination of such employment, directly
      or
      indirectly, whether for his own account or for the account of any other
      individual or entity, solicit the business or patronage of any customers of
      the
      Company with respect to products and/or services directly related to a
      Competitive Business Activity. “Competitive
      Business Activity”
shall
      mean engaging in, whether independently or as an employee, agent, consultant,
      advisor, independent contractor, partner, stockholder, officer, director or
      otherwise, any business which is materially competitive with the business of
      the
      Company as conducted or actively planned to be conducted by the Company during
      his employment by it, provided that Executive shall not be deemed to engage
      in a
      Competitive Business Activity solely by reason of (i) owning 1% or less of
      the
      outstanding common stock of any corporation if such class of common stock is
      registered under Section 12 of the Securities Exchange Act of 1934, or (ii)
      after the termination of his employment by the Company, being employed by or
      otherwise providing services to a corporation having total revenue of at least
      $500 million (or such lower number as may be agreed by the Board) so long as
      such services are provided solely to a division or other business unit of such
      corporation which does not engage in a business which is then competitive with
      the business of the Company. 

     

    11.  Confidentiality.
      Executive hereby acknowledges that the Company has made and will make available
      to Executive certain customer lists, product design information, performance
      standards and other confidential and/or proprietary information of the Company
      or licensed to the Company, including without limitation trade secrets,
      copyrighted materials and/or financial information of the Company (or any of
      its
      Affiliates), including without limitation, financial statements, reports and
      data (collectively, the “Confidential
      Material”);
      however, Confidential Material does not include any of the foregoing items
      which
      has become publicly known or made generally available through no wrongful act
      of
      Executive or of others who were under confidentiality obligations as to the
      item
      or items involved. Except as essential to Executive’s obligations under this
      Agreement, neither Executive nor any agent, employee, officer, or independent
      contractor of or retained by Executive shall make any disclosure of this
      Agreement, the terms of this Agreement, or any of the Confidential Material.
      Except as essential to Executive’s obligations under this Agreement, neither
      Executive nor any agent, employee, officer, or independent contractor of or
      retained by Executive shall make any duplication or other copy of any of the
      Confidential Material. Immediately upon request from the Company, Executive
      shall return to the Company all Confidential Material. Executive shall notify
      each person to whom any disclosure is made that such disclosure is made in
      confidence, that the Confidential Material shall be kept in confidence by such
      person. Nothing contained in this Section 11 shall be construed as preventing
      Executive from providing Confidential Material in compliance with a valid court
      order issued by a court of competent jurisdiction, providing Executive takes
      reasonable steps to prevent dissemination of such Confidential
      Material.

     

    
      
         

      

      
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    12.  Proprietary
      Information.
      For
      purposes of this Agreement, “Proprietary
      Information”
shall
      mean any information, observation, data, written material, record, document,
      software, firmware, invention, discovery, improvement, development, tool,
      machine, apparatus, appliance, design, promotional idea, customer list,
      practice, process, formula, method, technique, trade secret, product and/or
      research related to the actual or anticipated research, marketing strategies,
      pricing information, business records, development, products, organization,
      business or finances of the Company. Proprietary Information shall not include
      information in the public domain as of execution of this Agreement except
      through any act or omission of Executive. All right, title and interest of
      every
      kind and nature whatsoever in and to the Proprietary Information made,
      discussed, developed, secured, obtained or learned by Executive during the
      term
      of this Agreement shall be the sole and exclusive property of the Company for
      any purposes or uses whatsoever, and shall be disclosed promptly by Executive
      to
      the Company. The covenants set forth in the preceding sentence shall apply
      regardless of whether any Proprietary Information is made, discovered,
      developed, secured, obtained or learned (a) solely or jointly with others,
      (b)
      during the usual hours of work or otherwise, (c) at the request and upon the
      suggestion of the Company or otherwise, or (d) with the Company’s materials,
      tools, instruments or on the Company’s premises or otherwise. All Proprietary
      Information developed, created, invented, devised, conceived or discovered
      by
      Executive that is subject to copyright protection is explicitly considered
      by
      Executive and the Company to be works made for hire to the extent permitted
      by
      law. Executive hereby forever fully releases and discharges the Company, and
      the
      Company and their respective officers, directors and employees, from and against
      any and all claims, demands, damages, liabilities, costs and expenses of
      Executive arising out of, or relating to, any Proprietary Information. Executive
      shall execute any documents and take any action the Company may deem necessary
      or appropriate to effectuate the provisions of this Agreement, including without
      limitation assisting the Company in obtaining and/or maintaining patents,
      copyrights or similar rights to any Proprietary Information assigned to the
      Company, if the Company, in their sole discretion, requests such assistance.
      Executive shall comply with any reasonable rules established from time to time
      by the Company for the protection of the confidentiality of any Proprietary
      Information. Executive irrevocably appoints the President of the Company to
      act
      as Executive’s agent and attorney-in-fact to perform all acts necessary to
      obtain and/or maintain patents, copyrights and similar rights to any Proprietary
      Information assigned by Executive to the Company under this Agreement if
      (a) Executive refuses to perform those acts, or (b) is unavailable, within
      the meaning of any applicable laws. Executive acknowledges that the grant of
      the
      foregoing power of attorney is coupled with an interest and shall survive the
      death or disability of Executive. Executive shall promptly disclose to the
      Company, in confidence (a) all Proprietary Information that Executive creates
      during the term of this Agreement, and (b) all patent applications, copyright
      registrations or similar rights filed or applied for by Executive within six
      months after termination of this Agreement. Any application for a patent,
      copyright registration or similar right filed by Executive within six months
      after termination of this Agreement shall be presumed to relate to Proprietary
      Information created by Executive during the term of this Agreement, unless
      Executive can prove otherwise. Nothing contained in this Agreement shall be
      construed to preclude the Company from exercising all of its rights and
      privileges as sole and exclusive owner of all of the Proprietary Information
      owned by or assigned to the Company under this Agreement. The Company, in
      exercising such rights and privileges with respect to any particular item of
      Proprietary Information, may decide not to file any patent application or any
      copyright registration on such Proprietary Information, may decide to maintain
      such Proprietary Information as secret and confidential, or may decide to
      abandon such Proprietary Information or dedicate it to the public. Executive
      shall have no authority to exercise any rights or privileges with respect to
      the
      Proprietary Information owned by or assigned to the Company under this
      Agreement. This Agreement does not apply to any Proprietary Information that
      qualifies fully under the provisions of California Labor Code Section 2870
      or
      any similar or successor statute.

     

    
      
         

      

      
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    13.  Business
      Opportunities.
      During
      the term of this Agreement, if Executive (or any agent, employee, officer or
      independent contractor of or retained by Executive) becomes aware of, or
      develops, creates, invests, devises, conceives or discovers, any project,
      investment, venture, business or other opportunity (any of the preceding, an
      “Opportunity”)
      that
      is similar to, competitive with, related to or in the same field as the Company,
      or any project, investment, venture, or business of the Company, then Executive
      shall so notify the Company immediately in writing of such Opportunity and
      shall
      use Executive’s good-faith efforts to cause the Company to have the opportunity
      to invest in, participate in or otherwise become affiliated with such
      Opportunity.

     

    14.  Miscellaneous.

     

    14.1  Section
      Headings.
      The
      section headings or captions in this Agreement are for convenience of reference
      only and do not form a part hereof, and do not in any way modify, interpret
      or
      construe the intent of the parties or affect any of the provisions of this
      Agreement.

     

    14.2  Survival.
      The
      obligations and rights imposed upon the parties hereto by the provisions of
      this
      Agreement which relate to acts or events subsequent to the termination of this
      Agreement shall survive the termination of this Agreement and shall remain
      fully
      effective thereafter, including without limitation the obligations of Executive
      with to any Confidential Material under Section 11.

     

    14.3  Arbitration.
      

     

    (a)  Any
      claim, dispute or other controversy (a “Controversy”)
      relating to this Agreement shall be settled and resolved by binding arbitration
      in Los Angeles County, California before a single arbitrator under the
      Employment Rules of the American Arbitration Association (“AAA”)
      in
      effect at the time a demand for arbitration is made. If there is any conflict
      between the AAA rules and this arbitration clause, this arbitration clause
      will
      govern and determine the rights of the parties. The Parties to this Agreement
      (the “Parties”)
      shall
      be entitled to full discovery regarding the Controversy as permitted by the
      California Code of Civil Procedure. The arbitrator’s decision on the Controversy
      shall be a final and binding determination of the Controversy and shall be
      fully
      enforceable as an arbitration award in any court having jurisdiction and venue
      over the Parties. The arbitrator shall also award the prevailing Party any
      reasonable attorneys’ fees and reasonable expenses the prevailing Party incurs
      in connection with the arbitration, and the non-prevailing Party shall pay
      the
      arbitrator’s fees and expenses. The arbitrator shall determine who is the
      prevailing Party. Each Party also agrees to accept service of process for all
      arbitration proceedings in accordance with AAA’s rules. 

     

    
      
         

      

      
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    (b)  The
      obligation to arbitrate shall not be binding upon either party with respect
      to
      requests for temporary restraining orders, preliminary injunctions or other
      procedures in a court of competent jurisdiction to obtain interim relief when
      deemed necessary by such court to preserve the status quo or prevent irreparable
      injury pending resolution by arbitration of the actual dispute between the
      Parties.

     

    (c)  The
      provisions of this Section shall be construed as independent of any other
      covenant or provision of this Agreement; provided that, if a court of competent
      jurisdiction determines that any such provisions are unlawful in any way, such
      court shall modify or interpret such provisions to the minimum extent necessary
      to have them comply with the law.

     

    (d)  This
      arbitration provision shall be deemed to be self-executing and shall remain
      in
      full force and effect after expiration or termination of this Agreement. In
      the
      event either party fails to appear at any properly noticed arbitration
      proceeding, an award may be entered against such party by default or otherwise
      notwithstanding said failure to appear.

     

    14.4  Severability.
      Should
      any one or more of the provisions of this Agreement be determined to be illegal
      or unenforceable in any relevant jurisdiction, then such illegal or
      unenforceable provision shall be modified by the proper court, if possible,
      but
      only to the extent necessary to make such provision enforceable, and such
      modified provision and all other provisions of this Agreement shall be given
      effect separately from the provision or portion thereof determined to be illegal
      or unenforceable and shall not be affected thereby; provided
      that,
      any such modification shall apply only with respect to the operation of this
      Agreement in the particular jurisdiction in which such determination of
      illegality or unenforceability is made.

     

    14.5  Waiver.
      The
      failure of either party to enforce any provision of this Agreement shall not
      be
      construed as a waiver of any such provision, nor prevent such party thereafter
      from enforcing such provision or any other provision of this Agreement. The
      rights granted both parties herein are cumulative and the election of one shall
      not constitute a waiver of such party’s right to assert all other legal remedies
      available under the circumstances.

     

    14.6  Parties
      in Interest.
      Nothing
      in this Agreement, except as expressly set forth herein, is intended to confer
      any rights or remedies under or by reason of this Agreement on any persons
      other
      than the parties to this Agreement and the successors, assigns and affiliates
      of
      the Company, nor is anything in this Agreement intended to relieve or discharge
      the obligation or liability of any third person to any party to this Agreement,
      nor shall any provision give any third person any right of action over or
      against any party to this Agreement.

     

    
      
         

      

      
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    14.7  Assignment.
      The
      rights and obligations under this Agreement shall be binding upon, and inure
      to
      the benefit of, the heirs, executors, successors and assigns of Executive and
      the Company. Except as specifically provided in this Section 14, neither the
      Company nor Executive may assign this Agreement or delegate their respective
      responsibilities under this Agreement without the consent of the other party
      hereto. Upon the sale, exchange or other transfer of substantially all of the
      assets of the Company, the Company shall assign this Agreement to the transferee
      of such assets. No assignment of this Agreement by the Company shall relieve
      the
      Company of, and the Company shall remain obligated to perform, its duties and
      obligations under this Agreement, including, without limitation, payment of
      the
      Base Compensation set forth in Section 5, above.

     

    14.8  Attorneys’
      Fees.
      In the
      event of any Controversy, suit, action or arbitration to enforce any of the
      terms or provisions of this Agreement, the prevailing party shall be entitled
      to
      its reasonable attorneys’ fees and costs. The foregoing entitlement shall also
      include attorneys’ fees and costs of the prevailing party on any appeal of a
      judgment and for any action to enforce a judgment.

     

    14.9  Modification.
      This
      Agreement may be modified only by a contract in writing executed by the
      party(ies) to this Agreement against whom enforcement of such modification
      is
      sought.

     

    14.10  Prior
      Understandings.
      This
      Agreement contains the entire agreement between the parties to this Agreement
      with respect to the subject matter of this Agreement, is intended as a final
      expression of such parties’ agreement with respect to such terms as are included
      in this Agreement, is intended as a complete and exclusive statement of the
      terms of such agreement, and supersedes all negotiations, stipulations,
      understandings, agreements, representations and warranties, if any, with respect
      to such subject matter, which precede or accompany the execution of this
      Agreement.

     

    14.11  Interpretation.
      Whenever the context so requires in this Agreement, all words used in the
      singular shall be construed to have been used in the plural (and vice versa),
      each gender shall be construed to include any other genders, and the word
“person” shall be construed to include a natural person, a corporation, a firm,
      a partnership, a joint venture, a trust, an estate or any other
      entity.

     

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

     

    14.13  Applicable
      Law.
      This
      Agreement and the rights and obligations of the parties hereunder shall be
      construed under, and governed by, the laws of the State of California without
      giving effect to conflict of laws provisions.

     

    
      
         

      

      
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    14.14  Drafting
      Ambiguities.
      Each
      party to this Agreement has reviewed and revised this Agreement. Each party
      to
      this Agreement has had the opportunity to have such party’s legal counsel review
      and revise this Agreement. The rule of construction that any ambiguities are
      to
      be resolved against the drafting party shall not be employed in the
      interpretation of this Agreement or of any amendments or exhibits to this
      Agreement.

     

    

     

    [Signature
      Page Follows]

    

    

    

    
      
         

      

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

    

    

    

    

    THE
      COMPANY:

    

    BASIC
      CARE NETWORKS, INC.,

    a
      Delaware corporation

    

    

    

    By:  /s/
      Robert Goldsamt

    

    Name: Robert
      Goldsamt

    

    Title: Chief
      Executive Officer

    

    

    

    

    

    

    

    EXECUTIVE:

    

    

    

    /s/
      David Rapoport

    David
      Rapoport

    

    

    

    
      
         

      

      
        10

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