Exhibit 10.10
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT ("Agreement") is made
and entered into effective as of the 1st day of April, 2003, by and between
PEDIATRIX MEDICAL GROUP, INC., a Florida corporation (hereinafter called the
"Company"), and XXXXX X. XXXXX, M.D., M.B.A. (hereinafter called the
"Executive").
PRELIMINARY STATEMENTS
A. The Company is presently engaged in the business of providing
neonatal and pediatric physician management services to hospitals (the
"Business").
B. The Executive has had several years of experience in the Business,
is currently Chairman of the Company's Board of Directors, and previously held
the positions of President and Chief Executive Officer of the Company.
C. The Company is desirous of employing the Executive and benefiting
from his contributions to the Company.
D. The Company and Executive previously entered into an Employment
Agreement dated January 1, 2001 which will be canceled in its entirety upon the
effective date of this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and mutual covenants
set forth herein, the parties agree as follows:
1. EMPLOYMENT.
1.1. EMPLOYMENT AND TERM. The Company hereby agrees to employ
the Executive and the Executive hereby agrees to serve the Company, on the terms
and conditions set forth herein, for a three-year term ("Initial Term")
commencing on April 1, 2003 and expiring on March 31, 2006 (the "Expiration
Date") unless sooner terminated as hereinafter set forth. The Initial Term of
this Agreement, and the employment of the Executive hereunder, shall be
automatically renewed for one (1) year periods thereafter until terminated in
accordance hereunder. (The Initial Term and any automatic renewals shall be
hereinafter referred to as the "Employment Period").
1.2. DUTIES OF THE EXECUTIVE. During the Employment Period,
the Executive shall serve as Chief Executive Officer of the Company and shall
have powers and authority superior to any other officer or employee of the
Company or of any subsidiary of the Company. The Executive shall be required to
report solely to, and shall be subject solely to the supervision and direction
of, the Board of Directors of the Company (the "Board") at duly called meetings
thereof. During the Employment Period, and excluding any periods of vacation and
sick leave to which the Executive is entitled, the Executive agrees to devote
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substantially all of his attention and business time during normal business
hours to the business and affairs of the Company and, to the extent necessary to
discharge the responsibilities assigned to the Executive hereunder as a senior
executive officer involved with the general management of the Company, to use
the Executive's reasonable best efforts to perform faithfully and efficiently
such responsibilities. During the Employment Period, it shall not be a violation
of this Agreement for the Executive to (i) serve on corporate, civic or
charitable boards or committees; (ii) deliver lectures, fulfill speaking
engagements or teach at educational institutions; or (iii) manage personal
investments and engage in other business activities, so long as such activities
do not significantly interfere with the performance of the Executive's
responsibilities as an employee of the Company in accordance with this
Agreement. It is expressly understood and agreed that to the extent that any
such activities have been conducted by the Executive prior to the date hereof,
the continued conduct of such activities (or the conduct of activities similar
in nature and scope thereto) subsequent to the date hereof shall not thereafter
be deemed to interfere with the performance of the Executive's responsibilities
to the Company.
1.3. PLACE OF PERFORMANCE. The Executive shall be based at the
Company's principal executive offices located in Broward County, Florida, except
for required travel relating to the Company's Business.
2. BASE COMPENSATION AND BONUS.
2.1. BASE SALARY. Commencing on the date hereof, the Executive
shall receive a base salary at the annual rate of not less than Six Hundred
Thousand Dollars ($600,000) (the "Base Salary") during the term of this
Agreement, with such Base Salary payable in installments consistent with the
Company's normal payroll schedule, subject to required applicable withholding
for taxes. The Base Salary shall be reviewed, at least annually, for merit
increases and may, by action and in the discretion of the Compensation Committee
of the Board, be increased at any time or from time to time. At the sole
discretion of the Compensation Committee, Company may adjust Executive's Base
Salary to reflect annual changes in the cost of living. The Base Salary, if so
increased, shall not thereafter be decreased for any reason.
2.2. PERFORMANCE BONUS. For each year calendar year during the
Employment Period, the Executive shall be eligible to receive a performance
bonus (the "Performance Bonus") in an amount up to one hundred percent (100%) of
the Base Salary, with the actual amount, if any, to be determined on the basis
of individual performance goals and Company earnings thresholds as established
annually by the Compensation Committee. Company shall pay the Performance Bonus,
if any, to Executive within ninety (90) days after the end of each applicable
calendar year.
3. OTHER BENEFITS.
3.1. EXPENSE REIMBURSEMENT. The Company shall promptly
reimburse the Executive for all reasonable expenses actually paid or incurred by
the Executive in the course of and pursuant to the Business of the Company,
including expenses for travel and entertainment. The Executive shall account and
submit reasonably supporting documentation to the Company in connection with any
expense reimbursement hereunder in accordance with the Company's policies.
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3.2. OTHER BENEFITS. During the Employment Period, the Company
shall continue in force all existing comprehensive major medical and
hospitalization insurance coverages, either group or individual for the
Executive and his dependents; shall continue in force all existing life
insurance for the Executive; and shall continue in force all existing disability
insurance for the Executive (collectively, the "Policies"), which Policies the
Company shall keep in effect throughout the term of this Agreement. The
Executive and/or the Executive's family, as the case may be, shall be eligible
for participation in and shall receive all benefits under all welfare benefit
plans, practices, policies and programs provided by the Company (including,
without limitation, medical, prescription, dental, disability, salary
continuance, employee life, group life, accidental death and travel accident
insurance plans and programs) to the extent applicable generally to senior
executive officers or other peer executives of the Company. The Executive shall
also be entitled to participate in all incentive, savings and retirement plans,
practices, policies and programs and such other perquisites as applicable
generally to senior executive officers or other peer executives of the Company.
The Executive shall be reimbursed for up to $1,500 per year for professional
dues and subscriptions in accordance with written policies and procedures of the
Company. Nothing paid to the Executive under any plan or arrangement presently
in effect or made available in the future shall be deemed to be in lieu of the
Base Salary payable to the Executive pursuant to this agreement.
3.3. WORKING FACILITIES. The Company shall furnish the
Executive with such facilities and services suitable to his position and
adequate for the performance of his duties hereunder.
3.4. VACATION. The Executive shall be entitled to such number
of paid vacation and leave days in each calendar year as determined by the Board
from time to time for its senior executive officers, but in no event less than
six (6) weeks of paid vacation during each calendar year. Unused vacation days
may be carried forward from year to year at the option of the Executive;
provided that the Executive notifies the Company of his intention to accrue any
unused vacation or leave time.
3.5. STOCK OPTIONS. The Executive shall be entitled to
participate in the Company's Stock Option Plan or any other similar plan adopted
by the Company that provides for the issuance of stock options to its employees.
In connection with the execution of this Agreement, Executive has been granted
200,000 options at market price with a three year vesting period. The terms of
the Stock Option Grant and the Company Stock Option Plan shall control the
Employee's rights and interest in and to said options.
3.6 PROFESSIONAL MEETINGS AND SEMINARS AND EXPENSES. The
Executive shall be entitled to educational leave of ten (10) days annually
without diminution of compensation. Company shall reimburse expenses incurred by
the Executive while attending educational meetings and for publications,
association membership, and other materials related to medical management, up
the Three Thousand Dollars ($3,000) annually. The Executive shall also be
reimbursed for up to Two Thousand Dollars ($2,000) per year for professional
meetings and seminars in accordance with written policies and procedures of the
Company.
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3.7 PERSONAL USE OF CORPORATE AIRCRAFT. Corporate aircraft may
be used by Executive for personal matters provided, however, the aircraft is not
being used, nor during the period Executive has requested use for personal
matters will it be needed for use, by the Company for business-related matters,
as the Company shall have priority over Executive's personal use. The
Compensation Committee shall determine annually such terms and other conditions
applicable to any such personal use of the aircraft by Executive.
4. TERMINATION.
4.1. TERMINATION FOR CAUSE.
(a) The Company may terminate this Agreement for
Cause. As used in this Agreement, the term "Cause" shall mean:
(i) A material willful breach committed in
bad faith by the Executive of the Executive's obligations under Section 1.2
hereof (other than as a result of incapacity due to physical or mental illness)
which is not remedied in a reasonable period of time after receipt of written
notice from the Company specifying such breach; OR
(ii) The conviction of the Executive of a
felony based upon a violent crime or a sexual crime involving baseness, vileness
or depravity; OR
(iii) Substance abuse by the Executive in a
manner which materially affects the performance of the Executive's obligations
under Section 1.2 hereof; OR
(iv) Any act or omission of the Executive
which is materially contrary to the business interests, representations or
goodwill of the Company.
(b) The Termination Date for a termination of this
Agreement pursuant to this Section 4.1 shall be the date specified by the Board
in a written notice to the Executive of finding of Cause.
(c) Upon any termination of this Agreement pursuant
to this Section 4.1, the Executive shall be entitled to the compensation
specified in Section 5.1 hereof.
4.2. DISABILITY. The Company may terminate this Agreement upon
the Disability (as defined below) of the Employee in strict accordance with the
following procedure: Upon a good faith determination by not less than a majority
of the Board of the entire membership of the Board (excluding the Executive)
that the Executive has suffered a Disability, the Company shall give the
Executive written notice of its intention to terminate this Agreement due to
such Disability. In such event, the Executive's employment with the Company
shall terminate effective on the 30th day after receipt of such notice by the
Executive (the "Disability Effective Date"), provided that, within the 30 days
after such receipt, the Executive shall not have returned to full-time
performance of the Executive's duties. For purposes of this Agreement,
"Disability" shall mean the absence of the Executive from the Executive's duties
with the Company on a full-time basis for six consecutive months or twelve
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months whether or not consecutive as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers and acceptable to the Executive or the
Executive's legal representative (such agreement as to acceptability not to be
withheld unreasonably). The Termination Date for a termination of this Agreement
pursuant to this Section 4.2 shall be the date specified by the Board in the
resolution finding that the Executive has suffered a Disability, which date may
not be any earlier than 30 days after the date of Board's finding. Upon any
termination of this Agreement pursuant to this Section 4.2, the Executive shall
be entitled to the compensation specified in Section 5.2 hereof.
4.3. DEATH. This Agreement shall terminate automatically upon
the death of the Executive, without any requirement of notice by the Company to
the Executive's estate. The date of the Executive's death shall be the
Termination Date for a termination of this Agreement pursuant to this Section
4.3. Upon any termination of this Agreement pursuant to this Section 4.3, the
Executive shall be entitled to the compensation specified in Section 5.3 hereof.
4.4 TERMINATION BY THE COMPANY WITHOUT CAUSE. The Company may
terminate the Executive's employment, without cause, as provided in this Section
4.4. To terminate the Executive's employment without cause in accordance with
this Section 4.4, the Company shall give the Executive written notice of such
termination. The Termination Date shall be the date specified by the Company in
such notice. Upon any termination of this Agreement pursuant to this Section
4.4, the Executive shall be entitled to the compensation specified in Section
5.4 hereof.
4.5. TERMINATION UPON A CHANGE IN CONTROL OF THE COMPANY. In
the event a Change in Control (as hereafter defined) in the Company shall occur
during the Employment Period, and the Executive elects to terminate his
employment with Company because Executive is (i) assigned any position, duties
or responsibilities that are significantly diminished or changed when compared
with the position, duties, responsibilities or compensation of the Executive
prior to such Change in Control, or (ii) forced to relocate to another location
more than 25 miles from the Executive's location prior to the Change in Control,
or (iii) Executive is terminated by Company, then the Executive shall be
entitled to the compensation specified in Section 5.5 hereof and any other
compensation and benefits provided in this Agreement in connection with a Change
in Control of the Company. For purposes of this Section 4.5, "Change in Control
of the Company" shall mean (i) the acquisition by a person or an entity or a
group of persons and entities, directly or indirectly, of more than fifty (50%)
percent of the Company's common stock in a single transaction or a series of
transactions (hereinafter referred to as a "50% Change in Control"); (ii) a
merger or other form of corporate reorganization resulting in an actual or DE
FACTO 50% Change in Control; or (iii) the failure of Applicable Directors
(defined below) to constitute a majority of the Board during any two (2)
consecutive year period after the date of this Agreement (the "Two-Year
Period"). "Applicable Directors" shall mean those individuals who are members of
the Board at the inception of a Two-Year Period and any new director whose
election to the Board or nomination for election to the Board was approved
(prior to any vote thereon by the shareholders) by a vote of at least two-thirds
(2/3) of the directors then still in office who either were directors at the
beginning of the Two-Year Period at issue or whose election or nomination for
election during such Two-Year Period was previously approved as provided in this
sentence. If the Executive elects to terminate his employment pursuant to the
terms of this Section 4.5, the Executive shall give the Company a written
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termination notice. The Termination Date shall be the date specified in such
notice, which date may not be earlier than 30 days nor later than 90 days from
the Company's receipt of such notice.
4.6. TERMINATION BY THE EXECUTIVE DUE TO POOR HEALTH. The
Executive may terminate his employment under this Agreement upon written notice
to the Company if the Executive's health should become impaired to any extent
that makes the continued performance of the Executive's duties under this
Agreement hazardous to the Executive's physical or mental health or his life
(regardless of whether such condition would be deemed a Disability under any
other section of this Agreement), provided that the Executive shall have
furnished the Company with a written statement from a qualified doctor to that
effect and provided further that, at the Company's written request and expense,
the Executive shall submit to a medical examination by a qualified doctor
selected by the Company and acceptable to the Executive (which acceptance shall
not be unreasonably withheld) which doctor shall substantially concur with the
conclusions of the Executive's doctor. The Termination Date shall be the date
specified in the Executive's notice to the Company, which date may not be
earlier than 30 days nor later than 90 days from the Company's receipt of such
notice. Upon any termination of this Agreement pursuant to this Section 4.6, the
Executive shall be entitled to the compensation specified in Section 5.6 hereof.
4.7. TERMINATION BY THE EXECUTIVE. The Executive may terminate
his employment under this Agreement for any reason whatsoever upon not less than
90 days prior written notice to the Company. The Termination Date under this
Section 4.7 shall be the date specified in the Executive's notice to the
Company, which date may not be earlier than 90 days from the Company's receipt
of such notice. Upon any termination of this Agreement pursuant to this Section
4.7, the Executive shall be entitled to the compensation specified in Section
5.7 hereof.
5. COMPENSATION AND BENEFITS UPON TERMINATION.
5.1. CAUSE. If the Executive's employment is terminated for
Cause, the Company shall pay the Executive his full Base Salary through the
Termination Date specified in Section 4.1 at the rate in effect at the
Termination Date, and the Company shall have no further obligation to the
Executive under this Agreement.
5.2. DISABILITY. During any period that the Executive is
unable to perform his duties under this Agreement as a result of incapacity due
to physical or mental illness, the Executive shall continue to receive his full
Base Salary until the Termination Date specified in Section 4.2, plus the
prorated amounts specified in Section 5.10. After such termination, the
Executive shall receive in equal monthly installments 100% of his Base Salary at
the rate in effect at the Termination Date for one year and thereafter for two
additional years at an annual rate equal to 50% of the Base Salary which would
have been in effect under this Agreement, reduced, in each case, for any
disability payments otherwise payable by or pursuant to plans provided by the
Company.
5.3. DEATH. Upon the Executive's death, the Company shall pay
to the person designated by the Executive in a notice filed with the Company or,
if no person is designated, to his estate (i) any unpaid amounts of his Base
Salary and accrued vacation to the date of the Executive's death, plus the
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prorated amounts specified in Section 5.10; and (ii) any payments the
Executive's spouse, beneficiaries or estate may be entitled to receive pursuant
to any pension or employee benefit plan or life insurance policy or similar plan
or policy then maintained by the Company. Upon full payment of all amounts
required to be paid under this Section 5.3, the Company shall have no further
obligation under this Agreement.
5.4 TERMINATION BY THE COMPANY WITHOUT CAUSE. If the Company
terminates the Executive's employment without cause in accordance with and
subject to Section 4.4, then (i) the Company shall pay the Executive his full
Base Salary through the Termination Date specified in Section 4.4 at the rate in
effect at such Termination Date, plus the prorated amounts specified in Section
5.10; and (ii) in lieu of further salary payments to the Executive for periods
subsequent to the Termination Date and in consideration of the rights of the
Company under Section 8, the Company shall pay as severance pay to the Executive
on the fifth day following the Termination Date, a lump sum amount equal to 200%
of the sum of (a) the annual Base Salary at the highest rate in effect during
the 12 months immediately preceding the Termination; plus (b) the average of the
three annual Performance Bonus payments paid with respect to the preceding three
years under this Agreement (or the number of years the Executive has been
employed with the Company under this Agreement or otherwise if less than three
years).
5.5. TERMINATION UPON A CHANGE IN CONTROL. If the Executive or
Company terminates this Agreement upon a Change in Control of the Company
pursuant to Section 4.5, then (i) the Company shall pay the Executive his full
Base Salary through the Termination Date specified in Section 4.5, at the rate
in effect at such Termination Date, plus the prorated amounts specified in
Section 5.10; (ii) the Executive shall receive all other compensation and
benefits provided in this Agreement in connection with a termination of
employment due to a Change in Control of the Company; and (iii) in lieu of any
further salary payments to the Executive for periods subsequent to such
Termination Date (but without affecting compensation or benefits to the
Executive in accordance with the preceding clauses 5.5(i) and 5.5(ii) and in
consideration of the rights of the Company under Section 8), the Company shall
pay as severance pay to the Executive on the fifth day following the Termination
Date, a lump sum amount equal to 200% of the Executive's Base Salary herein plus
the amount of any Performance Bonus for the preceding twelve months prior to the
Termination Date, reduced, but not below zero, by the amount of compensation or
benefits from the Company to the Executive which would cause the severance pay
payable pursuant to this Section 5.5 to exceed the excess parachute payment
limitation imposed under Section 280G of the Internal Revenue Code of 1986, as
amended (the "Code"), payable to the Executive in 12 equal monthly installments.
In addition, in the event the Termination Date as a result of a Change in
Control occurs within the twelve-month period of a Change in Control, any stock
options held by the Executive on the Termination Date shall fully vest and
become immediately exercisable.
5.6. TERMINATION BY THE EXECUTIVE DUE TO POOR HEALTH. If the
Executive terminates this Agreement pursuant to Section 4.6 hereof, the Company
shall pay to the Executive any unpaid amounts of his Base Salary and accrued
vacation to the Termination Date specified in Section 4.6, plus any disability
payments otherwise payable by or pursuant to plans provided by the Company, plus
the prorated amounts specified in Section 5.10.
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5.7. TERMINATION BY THE EXECUTIVE. If this Agreement
terminates pursuant to Section 4.7 hereof, the Company shall pay to the
Executive any unpaid amounts of his Base Salary and accrued vacation to the
Termination Date specified in Section 4.7, as the case may be, plus the prorated
amounts specified in Section 5.10.
5.8. HEALTH AND MEDICAL PLANS. The Executive shall be entitled
to all continuation of health, medical, hospitalization and other programs
during the period that the Executive is receiving payments under this Agreement
and, in all cases, as provided by any applicable law. The Executive shall also
be entitled to receive those benefits as are provided by the Company to its
employees upon termination of employment with the Company.
5.9. MITIGATION. Except with respect to a termination in
accordance with Section 4.5, the Executive shall be required to mitigate the
amount of any payment provided for in this Section 5 by seeking other employment
or otherwise, any payment provided for in this Section 5 shall be reduced by any
compensation earned by the Executive as the result of employment by another
employer after the Termination Date.
5.10. PERFORMANCE BONUS AND EXPENSE REIMBURSEMENT. If the
Executive's employment with the Company is terminated for any reason, other than
Cause (defined in Section 4.1(a) above), the Executive shall be paid, solely in
consideration for services rendered by the Executive prior to such termination,
a bonus with respect to the Company's fiscal year in which the Termination Date
occurs, equal to the Performance Bonus that would have been payable to the
Executive for the fiscal year if the Executive's employment had not been
terminated, multiplied by the number of days in the fiscal year prior to and
including the date of termination and divided by 365. The Executive shall be
entitled to reimbursement for reasonable business expenses incurred prior to the
Termination Date, subject, however to the provisions of Section 3.1.
6. SUCCESSORS; BINDING AGREEMENT.
6.1. SUCCESSORS. The Company shall require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
acquiring a majority of the Company's voting common stock or any other successor
to all or substantially all of the business and/or assets of the Company to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement, "Company" shall mean the
Company as previously defined and any successor to its business and/or assets
which executes and delivers the agreement provided for in this Section 6 or
which otherwise becomes bound by all the terms and provisions of this Agreement
by operation of law.
6.2. BENEFIT. This Agreement and all rights of the Executive
under this Agreement shall inure to the benefit of and be enforceable by the
Executive's personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If the Executive should
die while any amounts would still be payable to him under this Agreement,
including all payments payable under Section 5, if he had continued to live, all
such amounts shall be paid in accordance with the terms of this Agreement to the
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Executive's devisee, legatee, or other designee or, if there is no such
designee, the Executive's estate.
7. CONFLICTS WITH PRIOR EMPLOYMENT CONTRACT. Except as otherwise
provided in this Agreement, this Agreement constitutes the entire agreement
among the parties pertaining to the subject matter hereof, and supersedes and
revokes any and all prior or existing agreements, written or oral, relating to
the subject matter hereof, and this Agreement shall be solely determinative of
the subject matter hereof.
8. NONCOMPETITION; UNAUTHORIZED DISCLOSURE; INJUNCTIVE RELIEF.
8.1. NO MATERIAL COMPETITION. Except with respect to services
performed under this Agreement on behalf of the Company, and subject to the
obligations of the Executive as an officer of the Company and the employment
obligations of the Executive under this Agreement, the Executive agrees that at
no time during the Employment Period or, for a period of one year immediately
following any termination of this Agreement for any reason, for himself or on
behalf of any other person, persons, firm, partnership, corporation or company:
(a) Solicit or accept business from any clients of
the Company or its affiliates, from any prospective clients whose business the
Company or any affiliate of the Company is in the process of soliciting at the
time of the Executive's termination, or from any former clients which had been
doing business with the Company within one year prior to the Executive's
termination;
(b) Solicit any employee of the Company or its
affiliates to terminate such employee's employment with the Company; or
(c) Engage in any neonatology or perinatology-related
business of the types performed by the Company in the geographical area where
the Company is actively doing business or soliciting business, including, but
not limited to, employment or association with Sheridan Healthcare, Inc., its
subsidiaries, affiliates or successors-in-interest.
8.2. UNAUTHORIZED DISCLOSURE. During the Employment Period and
for two years following the termination of this Agreement for any reason, the
Executive shall not, without the written consent of the Board or a person
authorized by the Board or as may otherwise be required by law or court order,
disclose to any person, other than an employee of the Company or person to whom
disclosure is reasonably necessary or appropriate in connection with the
performance by the Executive of his duties as an executive of the Company, any
material confidential information obtained by him while in the employ of the
Company with respect to any of the company's clients, physicians, creditors,
lenders, investment bankers or methods of marketing, PROVIDED, HOWEVER, that
confidential information shall not include any information generally known to
the public (other than as a result of unauthorized disclosure by the Executive)
or any information of a type not otherwise considered confidential by persons
engaged in the same business or a business similar to that conducted by the
Company.
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8.3. INJUNCTION. The Company and the Executive acknowledge
that a breach by the Executive of any of the covenants contained in this Section
8 may cause irreparable harm or damage to the Company or its subsidiaries, the
monetary amount of which may be virtually impossible to ascertain. As a result,
the Executive agrees that the Company shall be entitled to an injunction issued
by any court of competent jurisdiction enjoining and restraining all violations
of this Section 8 by the Executive or his associates, affiliates, partners or
agents, and that the right to an injunction shall be cumulative and in addition
to all other remedies the Company may possess.
8.4. CERTAIN PROVISIONS. The provisions of this Section 8
shall apply during the time the Executive is receiving Disability payments from
the Company as a result of a termination of this Agreement pursuant to Section
4.2 hereof.
9. ARBITRATION. Any dispute or controversy (except for disputes arising
under Section 8) arising under or in connection with this Agreement shall be
settled exclusively by arbitration in accordance with the rules of the American
Arbitration Association then in effect (except to the extent that the procedures
outlined below differ from such rules). Within 7 days after receipt of written
notice from either party that a dispute exists and that arbitration is required,
both parties must within 7 business days agree on an acceptable arbitrator. If
the parties cannot agree on an arbitrator, then the parties shall list the "Big
Four" accounting firms (other than the Company's auditors) in alphabetical order
and the first firm that does not have a conflict of interest and is willing to
serve will be selected as the arbitrator. The parties agree to act as
expeditiously as possible to select an arbitrator and conclude the dispute. The
arbitrator must render his decision in writing within 30 days of his or its
appointment. The cost and expenses of the arbitration and of legal counsel to
the prevailing party shall be borne by the non-prevailing party. Each party will
advance one-half of the estimated fees and expenses of the arbitrator. Judgment
may be entered on the arbitrator's award in any court having jurisdiction;
provided that the Company shall be entitled to seek a restraining order or
injunction in any court of competent jurisdiction to prevent any continuation of
any violation of Section 8 hereof.
10. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Florida without regard to its conflict
of laws principles to the extent that such principles would require the
application of laws other than the laws of the State of Florida.
11. NOTICES. Any notice required or permitted to be given under this
Agreement shall be in writing and shall be deemed to have been given when
delivered by hand or when deposited in the United States mail by registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:
If to the Company: If to the Executive:
____________, Secretary Xxxxx X. Xxxxx, M.D., M.B.A.
Pediatrix Medical Group, Inc. c/o Pediatrix Medical Group, Inc.
0000 Xxxxxxx Xxxxxxx 0000 Xxxxxxx Xxxxxxx
Xx. Xxxxxxxxxx, Xxxxxxx 00000 Xxxxxxx, Xxxxxxx 00000
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or to such other addresses as either party hereto may from time to time give
notice of to the other in the aforesaid manner.
12. BENEFITS: BINDING EFFECT. This Agreement shall be for the benefit
of and binding upon the parties hereto and their respective heirs, personal
representatives, legal representatives, successors and, where applicable,
assigns. Notwithstanding the foregoing, neither party may assign its rights or
benefits hereunder without the prior written consent of the other party hereto.
13. SEVERABILITY. The invalidity of any one or more of the words,
phrases, sentences, clauses or sections contained in this Agreement shall not
affect the enforceability of the remaining portions of this Agreement or any
part thereof, all of which are inserted conditionally on their being valid in
law, and, in the event that any one or more of the words, phrases, sentences,
clauses or sections contained in this Agreement shall be declared invalid, this
Agreement shall be construed as if such invalid word or words, phrase or
phrases, sentence or sentences, clause or clauses, or section or sections had
not been inserted. If such invalidity is caused by length of time or size of
area, or both, the otherwise invalid provision will be considered to be reduced
to a period or area which would cure such invalidity.
14. WAIVERS. The waiver by either party hereto of a breach or violation
of any term or provision of this Agreement shall not operate nor be construed as
a waiver of any subsequent breach or violation.
15. DAMAGES. Nothing contained herein shall be construed to prevent the
Company or the Executive from seeking and recovering from the other damages
sustained by either or both of them as a result of its or his breach of any term
or provision of this Agreement. In the event that either party hereto brings
suit for the collection of any damages resulting from, or the injunction of any
action constituting, a breach of any of the terms or provisions of this
Agreement, then the party found to be at fault shall pay all reasonable court
costs and attorneys' fees of the other, whether such costs and fees are incurred
in a court of original jurisdiction or one or more courts of appellate
jurisdiction.
16. NO THIRD PARTY BENEFICIARY. Nothing expressed or implied in this
Agreement is intended, or shall be construed, to confer upon or give any person
(other than the parties hereto and, in the case of the Executive, his heirs,
personal representative(s) and/or legal representative) any rights or remedies
under or by reason of this Agreement. No agreements or representations, oral or
otherwise, express or implied, have been made by either party with respect to
the subject matter of this Agreement which agreements or representations are not
set forth expressly in this Agreement, and this Agreement supersedes any other
employment agreement between the Company and the Executive.
17. BOARD APPROVAL; AGREEMENT. The Company warrants and represents to
the Executive that this Agreement has been approved and authorized by the Board.
No provisions of this Agreement may be modified, waived or discharged unless
such waiver modification or discharge is agreed to in a writing signed by the
Executive and the officer of the Company which is specifically designated by the
Board.
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IN WITNESS WHEREOF, the undersigned have executed this Agreement
effective as of the date first above written.
PEDIATRIX MEDICAL GROUP, INC. THE EXECUTIVE:
/s/ Xxxxx X. Xxxxxxx /s/ Xxxxx X. Xxxxx
-------------------- -------------------
Xxxxx X. Xxxxxxx Xxxxx X. Xxxxx, M.D., M.B.A.
Chairman, Compensation Committee
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