Compensation and Services Agreement between Gilman + Ciocia, Inc. and Steven J. Gilbert

Summary

This agreement outlines the compensation and responsibilities for Steven J. Gilbert in his role with Gilman + Ciocia, Inc. Gilbert will provide personal production, lead sales calls, and represent the company at events, with a commission rate of 52.5% and discretion over payout allocation. He will also help develop a joint venture for annuity sales. The contract includes a fee of up to $400,000 over seven years, subject to performance requirements, and specifies early termination fees if production targets are not met or if Gilbert leaves early. Additional payments and reconciliations are also detailed.

EX-10.2 3 e500626_ex10-2.txt AGREEMENT WITH STEVEN J. GILBERT EXHIBIT 10.2 Steven J. Gilbert Gilman + Ciocia, Inc. 2420 Enterprise Road Clearwater, FL 33763 Dear Steve: Per our discussion, the purpose of this letter is to outline the compensation structure for your relationship with Gilman + Ciocia, Inc. and affiliates (the "Company"). Role: Personal production, lead by example and be a statesman for the Company. Responsibilities: Personal production. Coordinate the Weekly Sales Call. Speak at Company functions as requested. This would be in a similar capacity and level of time commitment as Jim Ciocia (ten or less days per year). Develop our joint venture with a mutually agreeable IMO partner to sell Fixed and Index annuities through agents recruited through the joint venture. Commission Rate: 52.5% payout. You will decide, at your discretion, how to allocate the payout between yourself, Paul and Peggy. Joint Venture: 50% of Joint Venture overrides earned by the Company on representatives newly recruited through the Joint Venture. Contract Fee: Amount: Up to $400,000, paid at the rate of $5,128 per bi-weekly pay period for up to 78 bi weekly pay periods. Payment shall be tied to maintaining a quarterly production level equal to at least 75% of your average quarterly production for the prior calendar year, as described below. Term: Seven years. Early Termination Fee: Should you leave the Company for any reason, or your production for any quarter commencing with the quarter ending March 31, 2005 is less than 75% of your average quarterly production for the prior calendar year, payment of the Contract Fee will cease and you would owe the Company an early termination fee determined as follows: o Quarters ended through March 31, 2008 100% of Contract Fee o Quarters ended June 30, 2008 through March 31, 2009 80% of Contract Fee o Quarters ended June 30, 2009 through March 31, 2010 60% of Contract Fee o Quarters ended June 30, 2010 through March 31, 2011 40% of Contract Fee o Quarters ended June 30, 2011 through March 31, 2012 20% of Contract Fee AFP: The Company will provide you a payment of $6,000 per semi monthly commission pay period from the second commission pay period in February, 2005 through the first commission pay period in May, 2005 (the "Payment Period"). On the May 15, 2005 commission cycle, the Company will produce a reconciliation of your actual AFP fees earned for the Payment Period verses these payments. Should there be a deficit (which seems highly unlikely), you would owe the Company a fee equal to the amount of the deficit. -23- Conclusion: I believe that this structure provides the means for you to continue to fill a big leadership role within the Company while focusing on those activities that will generate personal income. Please indicate your agreement by signing below. We will start you on this new compensation plan upon your execution. This letter will supercede any current compensation arrangements with the Company. I think we have worked well through this transition and look forward to a long and mutually profitable future together. Sincerely, GILMAN + CIOCIA, INC. By: /s/ Michael P. Ryan Michael P. Ryan President & CEO Acknowledged and Agreed: /s/ Steven J. Gilbert Steven J. Gilbert MPR:llm -24-