Document:

Exhibit 10.1

 

Employment Agreement between VantageMed Corporation and
Liesel Loesch dated April 25, 2006

 

EMPLOYMENT
AGREEMENT

This
Employment Agreement (the “Agreement”) is made and entered into by and between
VantageMed Corporation (the “Company”) and Liesel Loesch (the “Employee”). 
The effective date of this Agreement is April 25, 2006 (the “Effective Date”). This agreement supersedes all previous
agreements between the parties, including the offer of employment dated January
2, 2003, as the Corporate Controller for the Company.

1.                                       Position and Duties.  Employee will be employed by the
Company as its Chief Financial Officer, reporting to the Company’s Chief
Executive Officer.  Employee will also have a dotted line reporting
relationship to the Audit Committee of the Board.  Employee accepts employment with the Company
on the terms and conditions set forth in this Agreement, and Employee agrees to
devote Employee’s full working time, energy and skill to Employee’s duties at
the Company and shall use his best efforts to perform his duties.  These
duties will include, but not be limited to, those duties normally performed by
a Chief Financial Officer, as well as any other reasonable duties that may be
assigned to Employee from time to time.

 

2.                                       Term of Employment.  Employee’s employment with the
Company started on January 2, 2003, and shall continue for a period of three
(3) years (the “Term”) from the Effective Date; provided, however, that the
relationship may be terminated by Employee or the Company pursuant to the
provisions of Paragraphs 4 and 5 below.  Thereafter, subject to the
provisions for termination in Paragraph 4, this Agreement shall be extended
automatically for a term of one year (the “Renewal Term”), unless:  (a)
the Company or the Employee gives written termination notice to the other party
at least thirty days prior to either the termination of the initial Term of
employment or any Renewal Term established thereafter; or (b) the Company and
the Employee agree to a mutually acceptable date on which to terminate this
agreement.

 

3.                                       Compensation.  Employee will be compensated by
the Company for Employee’s services as follows:

 

(a)           Salary:  Employee will be
paid an annual salary of One Hundred Forty Thousand Dollars in U.S. currency
($140,000.00), less applicable withholding, in accordance with the Company’s
normal payroll procedures.  Salary will be increased to One Hundred Fifty
Thousand Dollars ($150,000.00) effective September 1, 2006 and to One Hundred
Sixty Thousand Dollars ($160,000.00) December 1, 2006.  In addition, Employee’s salary will be
reviewed by the Board of Directors (the “Board”) from time to time, but no less
frequently than annually, and may be subject to adjustment based upon various
factors including, but not limited to, Employee’s performance and the Company’s
profitability.  Any adjustment to Employee’s salary shall be in the sole
discretion of the Board.

 

(b)           Bonus:  Employee will be
eligible to receive a bonus consisting of cash, stock options or other monetary
compensation based upon the Company’s achievement of various financial and/or
other goals established by the Board. 
The amount of the bonus will be determined by the Board at its
discretion and subject to the terms of the management team bonus plan pertaining
to senior executives as adopted from the Board from time to time.  Unless otherwise specified in writing, such
bonus payments(s) shall not be deemed to have been earned or accrued until all
of the time and performance conditions for the bonus are met by Employee.

 

(c)           Benefits:  Employee will have
the right, on the same basis as other senior executives of the Company, to
participate in and to receive benefits under any Company medical, life,
long-term disability or other group insurance plans, as well as under the
Company’s business expense reimbursement and other policies.  Employee
will accrue three (3) weeks paid vacation annually and shall be compensated in
accordance with the Company’s vacation policy.  Vacation shall be taken at
a reasonable time or times so as not to negatively impact the operations of the
Company.  Employee may accrue a maximum of four weeks vacation.  At
that time, no further vacation shall be earned until Employee has used some
portion of his accrued vacation, thereby reducing the total amount below the
permitted maximum.

 

(d)           Stock Options:  Employee will be
granted an additional option to purchase 75,000 shares of the Company’s common
stock under the Company’s 1998 Stock Option/Stock Issuance Plan, as amended and
restated on November 22, 1999 (the “Stock Option Plan”) at an exercise price
equal to the fair market value of that stock on the Effective Date (the “Option”). 
The Option will be governed by and subject to the terms and conditions of the
Company’s standard form of stock option agreement (which Employee will be
required to sign in connection with the issuance of the Option).

 

4.                                       Termination.  Employee’s employment hereunder
shall terminate upon the occurrence of any of the following events:

 

(a)           Voluntary Resignation.  Employee’s
voluntary resignation upon thirty (30) days’ written notice.  The Company
may, in its sole discretion, elect to waive all or any part of such notice
period and accept Employee’s resignation at an earlier date;

 

 

1

 

(b)           Death or Disability.  Employee’s
death or disability (meaning that Employee is unable to perform Employee’s
duties for three or more consecutive months or four or more non-consecutive
months in any one-year period as a result of a physical and/or mental
impairment);

 

(c)           Termination with Cause.  The
Company may terminate Employee’s employment hereunder at any time prior to the
end of the Term or any renewal term for “Cause” as defined below.  For
purposes of this Agreement, a termination for “Cause” occurs upon the happening
of any of the following events:  (i) Employee pleads guilty to, or is
convicted of any felony that impairs Employee’s ability to perform his duties
under this Agreement;  (ii) Employee’s theft, dishonesty, fraud, or the
intentional falsification of any employment or Company records; (iii) Employee
intentionally discloses any of the Company’s confidential or proprietary
information or otherwise materially breaches the Company’s standard form of
employee confidentiality and assignment of inventions agreement; (iv) failure
of Employee to satisfactorily perform the duties of the office held by the
Employee as reasonably determined by the Board, and such failure is not cured
within thirty (30) days after the Employee receives notice thereof from the
Board; (v) a material breach of this Agreement or any other material agreement
between Employee and the Company which, if curable, is not cured within thirty
(30) days after Company provides Employee with written notice of such breach;

 

(d)           Termination without Cause. The
Company may terminate Employee’s employment hereunder at any time prior to the
end of the Term or any Renewal Term without Cause and for any reason;

 

(e)           Termination for Good Reason. 
This Agreement shall terminate at Employee’s option under the following
circumstances: (i) the Company’s failure to perform or observe any of the
material terms or provisions of this Agreement, and the continued failure of
the Company to cure such default within thirty (30) days after written demand
for performance has been give to the Company by the Employee, which demand
shall describe specifically the nature of such alleged failure to perform or
observe such material terms or provisions; (ii) a material reduction in the
scope of the Employee’s responsibilities and duties; or (iii) in the absence of
a written agreement between the Company and Employee, a material reduction in
Employee’s base pay or incentive compensation.

 

Termination under
this subparagraph (e) shall be effective upon the delivery by Employee to the
Company of a Notice of Intended Termination (the “Notice”) at least fifteen
(15) business days prior to termination by Employee.  The Notice shall
state with particularity the basis of such termination.  The Company shall
have fifteen (15) business days after receipt of such Notice to remedy the
facts and circumstances underlying the termination.  Employee shall make a
good faith determination immediately after such fifteen (15) day period whether
such facts and circumstances have been remedied and shall communicate Employee’s
determination in writing to the Company.

 

5.                                       Benefits upon Termination.  Employee shall receive the
following benefits upon the termination of his employment hereunder pursuant to
the terms hereunder:

 

(a)           In the event Employee’s employment is
terminated pursuant to paragraph 4 (a), (b), (c), or at the end of the Initial
Term or any Renewal Term, Employee shall receive all compensation accrued under
Paragraph 3 which is unpaid as of the date of termination. Employee shall not
receive any other compensation from the Company other than that earned under
Paragraph 3 through the date of Employee’s termination.

 

(b)           In the event Employee’s employment is
terminated pursuant to paragraph 4(d) or (e) prior to the end of the Initial
Term and any Renewal Term and if Employee signs a general release of all
claims, known and unknown, Employee may have against the Company arising out of
his employment or termination of employment, in a form satisfactory to the
Company, Employee shall receive the following:

 

(i)    A severance payment equal to 9 months’
salary at Employee’s then current salary, less applicable withholding, in
accordance with the Company’s normal payroll schedule through the applicable
severance period.

 

(ii)   In addition to the severance payment, the
Company shall pay the premiums to continue Employee’s group health insurance
coverage under COBRA for the period that Employee is receiving the severance
payment; provided, however, that from and after the first date that Employee
first commences other employment or provides services as a consultant or other
self-employed individual, the Company, at its option, may eliminate or
otherwise reduce payment of the COBRA premiums to the extent the Employee
receives health benefits from such other employment or self-employment.

 

6                                          Confidential and Proprietary Information.   As a condition of Employee’s
employment, Employee agrees to sign the Company’s standard form of employee
confidentiality and assignment of inventions agreement.

 

7.                                       Dispute Resolution.  Any dispute arising out of, or
relating to, the rights or obligations of the parties under this Agreement
shall be conclusively determined by binding arbitration.  The arbitration
shall be conducted as follows:

 

 

2

 

(a)   Binding Arbitration.  Any dispute
between the parties shall be submitted to, and conclusively determined by,
binding arbitration in accordance with this paragraph.  The provisions of
this paragraph shall not preclude any party from seeking injunctive or other
provisional or equitable relief in order to preserve the status quo of the
parties pending resolution of the dispute, and the filing of any action seeking
injunctive or other provisional relief shall not be construed as a waiver of
that party’s arbitration rights.  A single arbitrator in accordance with
the then-existing employment rules of the American Arbitration Association
shall conduct the arbitration.  The arbitrator, whose decision shall be
final and binding, shall be selected in accordance with the rules of the
American Arbitration Association.

 

(b)   Location of Arbitration.  Any
arbitration hearing shall be conducted in the county in which venue would be
proper for an initiation of a civil action arising out of the dispute.

 

(c)   Applicable Law.  The arbitration
of any dispute shall be governed by the California Arbitration Act (California
Code of Civil Procedure  § 1280, et  seq.) and minimum
due process requirements established by the California Supreme Court in Armendariz v. Foundation Health Psychcare Services,
Inc., 24 Cal.4th 83 (2000).

 

(d)   Limitation on Scope of Arbitrator’s Award
or Decision.  The parties to this Agreement agree that if the
arbitrator finds any disputed claim to be meritorious, the arbitrator shall
have the authority to order legal and/or equitable relief appropriate to the
claim.

 

(e)   Attorney’s Fees.  Each party
shall initially bear its/his own attorney’s fees.  However, the parties to
this Agreement agree that the arbitrator, in his or her discretion, may award
to the prevailing party the reasonable attorney’s fees incurred by the party in
participating in the arbitration process.

 

8.                                       Representation by Counsel.  The parties have carefully read
this Agreement and the contents hereof are known and understood by all
parties.  The parties have each had the opportunity to receive independent
legal advice from attorneys of their choice with respect to the advisability of
executing this Agreement.  The parties acknowledge that they have executed
this Agreement after independent investigation and without fraud, duress, or
undue influence.

 

9.                                       Notices.  For purposes of this Agreement, notices and
other communications provided for in this Agreement shall be in writing and
shall be delivered personally or sent by United States certified mail, return
receipt requested, postage prepaid, addressed as follows:

 

	
  If to Employee:

  
	
   

  	
  Liesel Loesch

  438 Listowe Drive

  Folsom, CA 95630

  
	
   

  
	
  If to Company:

  
	
   

  
	
   

  	
  Chairman of the Audit
  Committee

  
	
   

  	
  VantageMed Corporation

  
	
   

  	
  11060 White Rock Road

  
	
   

  	
  Suite 210

  
	
   

  	
  Rancho Cordova,
  CA  95670

  
	
   

  	
   

  	
   

  

 

10.                                 Severability.  If any provision of this
Agreement is deemed invalid, illegal or unenforceable, such provision shall be
modified so as to make it valid, legal and enforceable, and the validity,
legality and enforceability of the remaining provisions of this Agreement shall
not in any way be affected.

 

11.                                 Assignment.   In view of the personal nature of the
services to be performed under this Agreement by Employee, Employee cannot assign
or transfer any of Employee’s obligations under this Agreement.

 

12.                                 Entire Agreement.   This Agreement and the
agreements referred to above constitute the entire agreement between Employee
and the Company regarding the terms and conditions of Employee’s employment,
and they supersede all prior negotiations, representations or agreements
between Employee and the Company regarding Employee’s employment, whether
written or oral.

 

 

3

 

13.                                 Modification.   This Agreement may only be
modified or amended by a supplemental written agreement signed by Employee and
an authorized representative of the Company.

 

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the date and year
written below.

 

	
   

  	
  VantageMed Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Steve Curd

  
	
  Date: 4/25/06

  	
  By: Steve Curd

  
	
   

  	
  Its:  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date: 4/25/06

  	
  /s/
  Liesel Loesch

  
	
   

  	
  Liesel Loesch

  

 

 

4Exhibit 10.1

 

UNITED STATES OF AMERICA

BEFORE THE

BOARD OF GOVERNORS OF THE FEDERAL RESERVE
SYSTEM

WASHINGTON, D.C.

 

TEXAS DEPARTMENT OF BANKING 

AUSTIN, TEXAS

 

	
   

  	
  )

  
	
  Written
  Agreement by and among

  	
  )

  
	
   

  	
  )

  
	
  TEXAS
  STATE BANK

  	
  )

  	
  Docket
  No. 06-008-WA/RB-SM

  
	
  McAllen,
  Texas

  	
  )

  
	
   

  	
  )

  
	
  FEDERAL
  RESERVE BANK

  	
  )

  
	
    OF DALLAS

  	
  )

  
	
  Dallas,
  Texas

  	
  )

  
	
   

  	
  )

  
	
  and

  	
  )

  
	
   

  	
  )

  
	
  TEXAS
  DEPARTMENT OF BANKING

  	
  )

  
	
  Austin,
  Texas

  	
  )

  
	
   

  	
  )

  

 

WHEREAS, Texas State Bank,
McAllen, Texas (the “Bank”), a state chartered bank that is a member of the
Federal Reserve System, is taking steps to address deficiencies relating to the
Bank’s compliance with applicable federal anti-money laundering (“AML”) laws,
rules, and regulations, including the Bank Secrecy Act (the “BSA”), 31 U.S.C.
5311 et  seq.; the rules and regulations issued thereunder by
the U.S. Department of the Treasury (31 C.F.R. Part 103); and the AML
requirements of Regulation H of the Board of Governors of the Federal Reserve
System (the “Board of Governors”) (12 C.F.R. 208.62 and 208.63);

 

WHEREAS, it is the common goal of the Bank, the
Federal Reserve Bank of Dallas (the “Reserve Bank”), and the Texas Department
of Banking (the “Commissioner”) to ensure that the Bank fully addresses all
deficiencies in the Bank’s AML program, policies and procedures; and

 

 

WHEREAS, on April 25, 2006, the Bank’s board of directors, at a duly constituted
meeting, adopted a resolution authorizing and directing G.E. Roney  to enter into this Written Agreement (the “Agreement”)
on behalf of the Bank, and consenting to compliance by the Bank and its
institution-affiliated parties, as defined in section 3(u) of the Federal
Deposit Insurance Act, as amended (the “FDI Act”) (12 U.S.C. 1813(u)), with
each and every provision of this Agreement.

 

NOW, THEREFORE, the Bank, the Reserve Bank, and the
Commissioner hereby agree as follows: 

 

Anti-Money Laundering Compliance

 

1.                                       Within 60 days of this Agreement, the Bank
shall submit to the Reserve Bank and the Commissioner an acceptable written
BSA/AML program designed to ensure the Bank’s compliance with all applicable
AML laws, rules, and regulations. The program shall include provisions for
updates on an ongoing basis as necessary to incorporate amendments to the BSA
and the rules and regulations issued thereunder. The program shall, at a
minimum provide, for:

 

(a)                                     enhanced internal controls, including
effective customer identification procedures;

 

(b)                                    the independent testing of compliance with
the BSA and the rules and regulations issued thereunder through regular
comprehensive compliance audits that are fully documented and conducted by
qualified parties who are independent of the Bank’s compliance function;

 

(c)                                     adequate resources for the BSA compliance
officer, including sufficient staff and authority to implement and maintain an
effective BSA/AML program that is commensurate with the Bank’s size and risk
profile; and

 

2

 

(d)                                 effective training for all appropriate Bank
personnel in all aspects of AML regulatory requirements and internal policies
and procedures, and updating of training on a regular basis to reasonably
ensure that personnel are trained in the most current legal requirements,
applicable industry best practices, and internal policies and procedures. 

 

Suspicious Activity Reporting and Customer Due
Diligence

 

2.                                      Within 60 days of this Agreement, the Bank
shall submit to the Reserve Bank and the Commissioner an acceptable written
customer due diligence program designed to reasonably ensure the identification
and timely, accurate, and complete reporting of all known or suspected
violations of law against or involving the Bank and suspicious transactions at
the Bank to law enforcement and supervisory authorities as required by the BSA
and other applicable laws and regulations. At a minimum, the program shall
include:

 

(a)                                     a methodology for assigning risk levels to
the customer base;

 

(b)                                    a risk focused assessment of the customer
base to:

 

(i)                                         identify the categories of customers whose
transactions and banking activities are routine and usual; and

 

(ii)                                      determine the appropriate level of enhanced
due diligence

 

necessary for those categories of customers that pose a heightened risk
of conducting potentially illicit activities at or through the Bank;

 

(c)                                     for each customer whose transactions require
enhanced due diligence, procedures to:

 

(i)                                          determine the appropriate documentation
necessary to verify the identity and business activities of the customer; and

 

(ii)                                        understand the normal and expected
transactions of the customer;

 

3

 

and

 

(d)                                procedures designed to ensure proper
identification and reporting of all known or suspected violations of law and
suspicious transactions, including but not limited to:

 

(i)                                       effective monitoring of customer accounts and
transactions;

 

(ii)                                     appropriate participation by Bank senior
management in the process of identifying, reviewing, and reporting potentially
suspicious activity;

 

(iii)                                  adequate and timely referral of information
about potentially suspicious activity through appropriate levels of Bank
management, including a policy for determining action to be taken when
necessary due diligence information cannot be obtained from a customer or
otherwise; and

 

(iv)                                 maintenance of sufficient documentation by
the Bank with respect to its investigation and analysis of suspicious activity,
including the resolution and escalation of concerns. 

 

Approval, Implementation, and Progress Reports

 

3.                                      (a)                                  The Bank shall submit written programs that
are acceptable to the Reserve Bank and the Commissioner within the applicable
time periods set forth in paragraphs 1 and 2 of this Agreement.

 

(b)                                  The Bank shall adopt the approved programs
within 10 days of approval by the Reserve Bank and the Commissioner. The Bank
shall thereafter implement and fully comply with the approved programs. During
the term of this Agreement, the approved programs shall not be amended or
rescinded without the prior written approval of the Reserve Bank and the
Commissioner.

 

4

 

4.                                       Within 10 days after the end of each calendar
quarter following the date of this Agreement, the Bank shall submit to the
Reserve Bank and the Commissioner written progress reports detailing all
actions taken to comply with the provisions of this Agreement, and the results
thereof. Management’s responses to any audit reports covering BSA/AML matters prepared
by internal or external auditors shall be included with the progress report.
The Reserve Bank and the Commissioner may, in writing, discontinue the
requirement for progress reports or modify the reporting schedule.

 

Notices

 

5.                                       All communications regarding this Agreement
shall be sent to:

 

	
  (a)

  	
  Mr. W.
  Arthur Tribble

  
	
   

  	
  Vice
  President

  
	
   

  	
  Federal
  Reserve Bank of Dallas

  
	
   

  	
  P.
  O. Box 655906

  
	
   

  	
  Dallas,
  Texas 75265

  
	
   

  	
   

  
	
  (b)

  	
  Mr. Randall
  James

  
	
   

  	
  Commissioner

  
	
   

  	
  Texas
  Department of Banking

  
	
   

  	
  2601
  North Lamar

  
	
   

  	
  Austin,
  Texas 78705

  
	
   

  	
   

  
	
  (c)

  	
  Mr. Glen
  E. Roney

  
	
   

  	
  Chairman
  of the Board and Chief Executive Officer 

  
	
   

  	
  P.O. Box
  4797 

  
	
   

  	
  McAllen,
  Texas 78502-4797

  

 

Miscellaneous

 

6.                                       The provisions of this Agreement shall be
binding on the Bank and each of its institution-affiliated parties in their
capacities as such, and their successors and assigns.

 

7.                                       Each provision of this Agreement shall remain
effective and enforceable until stayed, modified, terminated or suspended in
writing by the Reserve Bank and the Commissioner.

 

5

 

8.                                           Notwithstanding any provision of this
Agreement, the Reserve Bank and the Commissioner may, in their sole discretion,
grant written extensions of time to the Bank to comply with any provision of
this Agreement.

 

9.                                           The provisions of this Agreement shall not
bar, estop, or otherwise prevent the Board of Governors, the Reserve Bank, the
Commissioner or any federal or state agency from taking any further or other
action affecting the Bank or any of its current or former institution-affiliated
parties or their successors or assigns.

 

10.                                     This Agreement is a “written agreement” for
the purposes of, and is enforceable by the Board of Governors as an order
issued under, section 8 of the FDI Act.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed as of this 25 day of April,
2006.

 

 

	
  TEXAS
  STATE BANK

  	
  FEDERAL RESERVE BANK 

  OF DALLAS

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ G.E. Roney

  	
   

  	
  By:

  	
  /s/ E. Ann Worthy

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TEXAS
  DEPARTMENT OF BANKING

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Gayle L. Griffin

  	
   

  
	
   

  	
   

  	
  Deputy
  Banking Commissioner

  	
   

  
							

 

6

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