As of March 15, 2008 Art Lehrer c/o ViPS, Inc. One Pennsylvania Avenue, Suite 700 Baltimore, MD 21204 Dear Art:
Exhibit 10.64
CONFORMED COPY
As of March 15, 2008
Art Xxxxxx
c/o ViPS, Inc.
Xxx Xxxxxxxxxxxx Xxxxxx, Xxxxx 000
Xxxxxxxxx, XX 00000
c/o ViPS, Inc.
Xxx Xxxxxxxxxxxx Xxxxxx, Xxxxx 000
Xxxxxxxxx, XX 00000
Dear Art:
Reference is made to the Employment Agreement dated as of July 9, 2004 (the “Employment Agreement”)
by and between you (either “you” or the “Executive”) and ViPS, Inc. (the “Company”). In connection
with the possible sale of the Company and its subsidiaries, the Company has determined that it is
appropriate to enter into this amendment to the Employment Agreement (“Amendment”) in order to
encourage you to remain in the employ of the Company and to remain focused on the business and
operations of the Company without distraction.
1. Retention Bonus.
A new Section 2.4 is hereby added to the Employment Agreement at the end of Section 2 to read as
follows:
“Retention Bonus. (a) Executive shall be entitled to receive a bonus (the “Retention
Bonus”) of $100,000 or such greater amount as may be determined by the Compensation Committee
(“Committee”) of the Board of Directors of HLTH Corporation (“HLTH”) if (i) a ViPS Change of
Control (as defined below) occurs on or before September 30, 2008 and (ii) Executive remains in the
employ of the Company or its successor for a period of 60 days following such ViPS Change of
Control (the “Retention Date”). The payment of the Retention Bonus shall be made promptly
following the Retention Date so long as the release described below in subsection 2.4(d) is
effective (which release must be effective and the payment made within 60 days following the
Retention Date). Notwithstanding the above, in the event that Executive’s employment is terminated
by the Company without Cause or by Executive with Change of Control Good Reason (as defined below)
following a ViPS Change of Control but prior to the Retention Date, Executive shall receive the
Retention Bonus within the time period and subject to the condition described above; provided that
the payment of the Retention Bonus shall be delayed and paid to the Executive within 10 days
following the six month anniversary of the date of termination in accordance with the requirements
of Section 409A of the Internal Revenue Code of 1986 (the “Code”), if HLTH or the Company
determines in good faith that such delay is required to comply with Section 409A of the Code and
would avoid the imposition of additional taxes on Executive under Section 409A of the Code.
(b) For purposes of this Agreement, a “ViPS Change of Control” shall mean the consummation of a
transaction that results in (i) HLTH ceasing to own, directly or indirectly, 50% or more of the
voting power of the Company or (ii) the sale of all or substantially all of the assets of the
Company, provided that a ViPS Change of Control shall not be deemed to have occurred if the
successor is HLTH or an affiliate of HLTH.
(c) For purposes of this Agreement, “Change of Control Good Reason” shall mean any of the following
conditions or events which condition(s) or event(s) remain in effect 30 days after written notice
is provided by Executive to Company detailing such condition or event:
(i) any reduction in Base Salary; or
(ii) the relocation of Executive’s place of work to a location more than 50 miles from his
work location as of the date of this Amendment, provided that the place of relocation also is at a
further distance from Executive’s residence than is his current work location as of the date of
this Amendment.
For the sake of clarity, a change in Executive’s title, responsibilities or duties shall not
constitute a Change of Control Good Reason event.
(d) The payment of the Retention Bonus is contingent upon the Executive’s execution, delivery
and nonrevocation of a release in a form satisfactory to the Company and HLTH.”
2. Effect of a ViPS Change of Control on HLTH Equity. In the event that your employment
with HLTH and its subsidiaries terminates as a result of a ViPS Change of Control, any vesting of
your equity awards outstanding as of the date hereof that would have occurred through June 6, 2009,
will be accelerated to the closing date of the ViPS Change of Control, so long as you are employed
by the Company on the closing date. Your vested options affected by this Amendment (including the
portion that was accelerated) would remain outstanding through the post-termination exercise period
specified in the applicable option agreement and plan. Any remaining unvested portion of your
options or restricted stock awards would be forfeited upon the sale of the Company. Absent this
amendment, all of your unvested equity awards would be forfeited at such time as a sale occurs
pursuant to the applicable plan and award agreement. Except as set forth herein, your equity
awards remain subject to the applicable award agreement and equity plan.
3. No Sale Obligation.
Notwithstanding anything else contained herein, HLTH and its affiliates have no obligation to
close, negotiate or otherwise pursue any sale or other disposition of all or substantially all of
the Company or any component thereof. The existence of this Amendment shall not limit, affect or
restrict in any way the right or power of HLTH or any of its affiliates to make or authorize (or to
refrain from making or authorizing, as the case may be) (i) any adjustment, recapitalization,
reorganization or other change in
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capital structure or business, (ii) any merger, amalgamation, consolidation or change in ownership,
(iii) any dissolution or liquidation, (iv) any sale or transfer of assets or business, or (v) any
other corporate act or proceeding by the entity.
4. Section 409A.
Any payments required to be paid to you pursuant to the Employment Agreement during the first six
months following the termination of Executive’s employment shall be paid to Executive in a lump sum
payment at the end of such six-month period in accordance with the requirements of Section 409A,
provided that such payments will not apply to the extent that guidance issued under Section 409A
allows payments to be made when otherwise due without subjecting the Executive to additional taxes
under Section 409A.
5. Effect on Employment Agreement.
Except as set forth herein, the Employment Agreement remains in full force and effect. All
references to the Employment Agreement shall be deemed a reference to the Employment Agreement as
amended hereby.
Please evidence your approval of this letter amendment by signing the acknowledgement below.
ViPS, INC. |
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By: | /s/ Xxxxxxx X Xxxx | |||
Xxxxxxx X. Xxxx | ||||
Executive Vice President | ||||
Acknowledged and Agreed |
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/s/ Xxxxxx Xxxxxx | ||||
XXXXXX XXXXXX | ||||
Acknowledged HLTH CORPORATION |
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By: | /s/ Xxxxxxx X. Xxxx | |||
Xxxxxxx X. Xxxx | ||||
Executive Vice President | ||||
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