EX-10.1: LETTER AGREEMENT
EX-10.1 2 y22436exv10w1.htm EX-10.1: LETTER AGREEMENT EX-10.1
Exhibit 10.1
June 21, 2006
Mr. Stanley Rosenbaum
c/o BioScrip, Inc.
100 Clearbrook Road
Elmsford, NY 10523
c/o BioScrip, Inc.
100 Clearbrook Road
Elmsford, NY 10523
Re: Severance Agreement
Dear Stan:
This will confirm our agreement that if you are terminated by BioScrip, Inc. (the Company) (or any successor) other than for Cause (as defined below) or if you terminate your employment with the Company (or any successor) for Good Reason (as defined below), you will be entitled to receive severance payments equal to 18 months of salary at your then current salary level, payable in accordance with the Companys then applicable payroll practices and subject to all applicable federal, state and local withholding, and (ii) all outstanding securities contemplated to be issued under the terms of the Companys 2001 Incentive Stock Plan granted to you and held by you at the time of termination shall vest and become immediately exercisable and shall otherwise be exercisable in accordance with their terms and conditions. If your employment with the Company is terminated for any reason whatsoever, whether by you or the Company, the Company would not be liable for, or obligated to pay you any stock or cash bonus compensation, incentive or otherwise, or any other compensation contemplated hereby not already paid or not already accrued as of the date of such termination, and no other benefits shall accrue or vest subsequent to such date.
For purposes of this Agreement, Cause shall mean any of the following: (i) commission by you of criminal conduct which involves moral turpitude; (ii) acts which constitute fraud or self-dealing by or on the part of you against the Company or any of its subsidiaries, including, without limitation, misappropriation or embezzlement; (iii) your willful engagement in conduct which is materially injurious to the Company or any of its subsidiaries; (iv) your gross misconduct in the performance of duties as an employee of the Company, including, without limitation, failure to obey lawful written instructions of the Board of Directors of the Company, any committee thereof or any executive officer of the Company or failure to correct any conduct which constitutes a breach of any written agreement between you and the Company or of any written policy promulgated by the Board of Directors of either the Company, any committee thereof or any executive officer of the Company, in either case after not less than ten days notice in writing to you of the Companys intention to terminate you if such failure is not corrected within the specified period (or after such shorter notice period if the Company in good faith deems such shorter notice period to be necessary due to the possibility of material injury to the Company).
For purposes of this Agreement, Good Reason shall mean the existence of any one or more of the following conditions that shall continue for more than 30 days following written notice thereof by you to the Company: (i) the assignment to you of duties materially inconsistent with your position or positions with the Company (provided, however, that in the event that you are named Chief Operating Officer of the Company as contemplated by your offer letter of June 21, 2006, such event shall not be deemed Good Reason); or (ii) the reduction of your then current annual salary rate, without your consent.
Mr. Stanley Rosenbaum
June 21, 2006
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June 21, 2006
Page 2
This letter agreement constitutes the entire understanding of the parties with respect to the subject matter hereof. This agreement shall be construed in accordance with, and its interpretation shall otherwise be governed by, the laws of the State of New York, without giving effect to principles of conflicts of law.
Kindly signify your agreement to the foregoing by signing below and forward an executed copy to me for our files.
Sincerely, BioScrip, Inc. | ||||
By: | /s/ Barry A. Posner | |||
Barry A. Posner, EVP and General Counsel | ||||
Agreed and Accepted
on this 21st day of June, 2006:
on this 21st day of June, 2006:
/s/ Stanley Rosenbaum |