EXHIBIT 10-G(i)
EMPLOYMENT AGREEMENT
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THIS EMPLOYMENT AGREEMENT ("Agreement") is made as of the 1st day of June,
1997, by and between Priority Healthcare Corporation, an Indiana corporation
(the "Company"), and Xxxxxxx X. Xxxxxxx (the "Employee").
Recitals
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1. The Company is engaged in the business of the provision of health care
services and in various related activities.
2. The Company desires to have the Employee as an employee of the
Company, and the Employee desires such employment, all on the terms and
conditions set forth in this Agreement.
Agreement
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NOW, THEREFORE, in consideration of the premises and the mutual
covenants and conditions set forth herein, the Company and the Employee agree as
follows:
ARTICLE I
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Employment
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The Company hereby agrees to the Employee's employment with the
Company in accordance with the terms and conditions of this Agreement, and the
Employee hereby agrees to the terms and conditions of this Agreement. The
Employee is employed as Vice President-Marketing of Priority Healthcare
Corporation and shall have duties, responsibilities and powers as shall be
determined from time to time by, and all of his duties, responsibilities and
powers shall at all times be subject to the order, direction and supervision of
any superior officers within the Company.
ARTICLE II
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Term of Agreement
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The term of employment which this Agreement establishes shall commence
as of the date of this Agreement and end on February 28, 1999. Notwithstanding
the foregoing, the term of employment established by this Agreement is subject
to prior termination as hereinafter provided.
ARTICLE III
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Devotion to Duties
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During the term of employment, the Employee shall devote his full
time, attention, skill and effort to the operations of the Company and shall
not, during such term, engage in any other business activity requiring any
substantial amount of his time (whether or not such business activity is pursued
for gain, profit or pecuniary advantage).
ARTICLE IV
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Regular Compensation
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The Company shall pay to the Employee and the Employee shall accept
from the Company, as compensation for his services and for his covenants and
other obligations hereunder, the gross bi-weekly salary of $4,423.08. Employee's
salary will be reviewed annually consistent with the Company's compensation
policies.
ARTICLE V
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Expenses and Benefits
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The Company shall reimburse the Employee for all ordinary and
necessary business expenses incurred by Employee while carrying out Employee's
employment responsibilities under this Agreement. The Employee shall be entitled
to participate in such fringe benefit programs as the Company from time to time
shall establish for all of its other full time employees, if Employee is
otherwise eligible to participate in such programs. The Company retains the
right to establish limits on the types or amounts of business expenses that the
Employee may incur and to abolish or alter the terms of any fringe benefit
program that it may establish.
The Employee shall be paid a bonus up to 50% of the gross salary paid
to Employee during the year. Such bonus shall be based on individual and Company
performance and shall be paid to the Employee no later than March 31 of the year
following the year in which the bonus is earned.
The Employee shall also be eligible to participate in the Company's
stock option plan and shall be entitled to receive annual options for at least
15,000 shares of the Company's common stock (or common stock of Bindley Western
Industries, Inc. if the Company's common stock is not publicly traded) during
the term of this Agreement, which options shall be subject to the terms and
conditions of the Company's stock option plan.
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ARTICLE VI
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Termination
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Section 6.01. Reasons for Termination. The Employment of the Employee
shall be terminated upon the occurrence of any of the following events:
(a) Death of the Employee.
(b) At the Company's option, upon the Employee's violation of Company
policy or failure to perform any of his duties or obligations under this
Agreement in a satisfactory manner, or upon any dishonesty of any kind or
willful misconduct of the Employee, including, but not limited to, theft of or
other unauthorized personal use of Company funds or other remuneration from
Company suppliers or potential suppliers. Employee may be terminated under this
paragraph 6.01(b) only following prior notice to the Employee of the reason for
termination and an opportunity to dispute such reason.
(c) At the Company's option, if the Employee shall suffer a permanent
disability. For purposes of this Agreement, "permanent disability" shall be
defined as the Employee's inability through physical or mental illness or other
cause to perform, in the opinion of the Company, duties assigned to him
hereunder for the continuous period of three months during the term of this
Agreement.
(d) At the Company's option, without cause.
(e) At the Employee's option, without cause.
Section 6.02. Compensation Upon Termination.
(a) Should the employment of the Employee be terminated under
subsections (a) or (c) of Section 6.01 of this Agreement, the Company shall pay
to the Employee (or the Employee's personal representative), within ten business
days after the date of termination, a sum equal to the aggregate amount of
regular compensation that was paid to the Employee under this Agreement for the
one-month period preceding such date of termination.
(b) Should the employment of the Employee be terminated under
subsections (b) or (e) of Section 6.01 of this Agreement, the Employee shall be
paid his regular compensation up to the date of termination.
(c) Should the employment of the Employee be terminated under
subsection (d) of Section 6.01 of this Agreement, the Company shall pay to the
Employee, within ten business days after the date of termination, a sum equal to
the aggregate amount of regular compensation that the Employee would be entitled
to receive under this Agreement for a six-month period.
(d) Payments to the Employee under this Section 6.02 shall be
considered
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severance pay in consideration of the Employee's past service and in
consideration of his continued service from the date hereof. The Company may, at
its discretion, withhold from such payments any federal, state, city, county or
other taxes. In the event of the termination of the employment of the Employee
for any reason described in Section 6.01 of this Agreement, the severance pay
provided for by this Section 6.02 shall constitute the entire obligation of the
Company to the Employee and full settlement of any claim under law or in equity
that the Employee might otherwise assert against the Company or any of its
employees, officers or directors on account of such termination.
Section 6.03. Reimbursement for Certain Litigation Expenses. In the
event of litigation to determine whether the Employee's employment was properly
terminated under subsection (b) of Section 6.01, the prevailing party shall be
entitled to recover all reasonable costs and expenses, including reasonable
attorneys' fees, incurred in connection with such litigation.
ARTICLE VII
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Confidential Information
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In connection with his employment by the Company, the Employee has and
will become acquainted with the affairs of the Company, its officers and
employees, its sources of supply, its customers, and other trade information
which the Company has acquired or will acquire at great cost and expenses.
Therefore, as an essential ingredient and consideration of this Agreement, the
Employee has entered into the Noncompete Agreement attached hereto as Appendix
A.
ARTICLE VIII
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General
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Section 8.01. Severability. Should any clause, portion or section of
this Agreement be unenforceable or invalid for any reason, such unenforceability
or invalidity shall not affect the enforceability of validity of the remainder
of this Agreement. Should any particular covenant in this Agreement be held
unreasonable or unenforceable for any reason, including, without limitation, the
time period, geographical area, and scope of activity covered by such covenant,
then such covenant shall be given effect and enforced to whatever extent would
be reasonable and enforceable.
Section 8.02. Assignment; Successors in Interest. This Agreement,
being personal to the Employee, may not be assigned by him. The terms and
conditions of this Agreement shall inure to the benefit of and be binding upon
the successors and assigns of the Company, and the heirs, executors and personal
representatives of the Employee.
Section 8.03. Governing Law. This Agreement and the performance of the
parties under this Agreement shall be construed in accordance with the laws of
Indiana (other than its choice of laws provisions), and any action or proceeding
that may be brought, arising out of, in connection with, or by reason of this
Agreement shall be governed by the laws of Indiana (other than its choice of
laws provisions), to the exclusion of the law of any other forum, and regardless
of the jurisdiction
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in which the action or proceeding may be instituted.
Section 8.04. Waiver. Failure to insist upon strict compliance with
any of the terms, covenants or conditions of this Agreement shall not be deemed
a waiver of such term, covenant or condition, nor shall any waiver or
relinquishment of any right or power hereunder at any one or more times be
deemed a waiver or relinquishment of such right or power at any other time or
times.
Section 8.05. Modification and Entire Agreement. No modification,
amendments, extension or alleged waiver of this Agreement or any provision
thereof will be binding upon the Employee or the Company unless in writing and
signed by the Employee and a duly authorized officer of the Company. This
Agreement constitutes the entire employment arrangement between the Employee and
the Company and supersedes and replaces any and all prior agreements and
understandings, written or oral, relative to such employment.
IN WITNESS WHEREOF, this Agreement has been executed as of the date
first above written.
PRIORITY HEALTHCARE CORPORATION
By: /s/ Xxxxxx X. Xxxxx
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Title: President
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/s/ Xxxxxxx X. Xxxxxxx
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Employee Xxxxxxx X. Xxxxxxx
7924 Bridgestone Dr.
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Address
Xxxxxxx, XX 00000
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City, State, Zip
###-##-####
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Social Security Number
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