6737 W. Washington Street Milwaukee, WI ###-###-####, U.S.A. (414) 977-4000 phone ###-###-#### fax
Exhibit 10.20
MERGE HEALTHCARE INCORPORTED
6737 W. Washington Street Milwaukee, WI ###-###-####, U.S.A. (414) ###-###-#### phone (414) ###-###-#### fax |
July 3, 2008
Steven Oreskovich
6737 W. Washington Street
Milwaukee, WI 53214
Dear Steve,
On behalf of Merge Healthcare, I’m very pleased to confirm your acceptance of our offer for the position of Chief Financial Officer, reporting to Justin Dearborn, CEO. The following points outline the compensation plan we are offering for this important role:
Base Compensation: Start Date: Term: | $200,000 per year base pay (2 pay periods per month, 15th and last business day of the month). June 5, 2008 The employment relationship is “at will” and therefore can be terminated by either you or the company at any time for any reason not prohibited by law. | |
Bonus: | Bonus target of 50% of base salary. Achievement of bonus will be tied to factors defined by the Compensation Committee, and could result in a bonus amount which is more or less than the targeted bonus. Payable annually. | |
Stock Options: | 200,000 options granted. Options will vest at 25% per year on the anniversary of the grant date. These options are non-qualified with a 6 year term. All options will vest upon a change in control of the Company. Notwithstanding the above, the terms and conditions of the options will be set forth in the 2005 Equity Plan and the stock option award agreement. | |
Severance: | Conditioned on your execution of a release agreement approved by the company, 12 months of severance will be paid if the company terminates your employment other than for cause as determined by the company, or due to your death or disability. The 12 months includes base salary only, no bonus. The 12 months severance will be paid following your separation from service (within the meaning of Internal Revenue Code Section 409A, applying the default rules thereof) in accordance with the Company’s normal payroll practice. However, if you are a specified employee (within the meaning of Code Section 409A) on the date of your separation from service and if, during the first six months of severance, your severance payments will exceed two times your prior year’s base salary or two times the Code Section 401(a)(17) compensation limit in effect for the year of your separation, whichever is less, then the severance payments in excess of such limit that would have otherwise been paid during the first six months following your separation from service will instead be accumulated and paid in a lump sum on the first day of the seventh month following the month of your separation from service. | |
Employee Review: Stock Purchase Plan: Vacation Time: | Performance and compensation will be reviewed annually. You will be eligible to participate in the Merge Employee Stock Purchase Plan on July 1, 2008. You will be eligible for 20 vacation days, 5 sick days & 4 personal days as described in the Merge Healthcare Time Off program |
| Non-Competition & Non-Solicitation (of Customers): |
For a period of twelve months after the termination of your employment with Merge Healthcare for any reason whatsoever, you agree not to, unless you have the prior written consent from Merge Healthcare, which consent may be withheld by Merge Healthcare, in its sole discretion:
(i) directly or indirectly contact any Customer of Merge Healthcare (or any of its subsidiaries or affiliates) for the purposes of providing or selling to those Customers services or products similar to, or competitive with, the services or products provided by Merge Healthcare;
(ii) directly or indirectly transact any business with any Customer of Merge Healthcare (or any of its subsidiaries or affiliates) relating to services or products similar to, or competitive with, the services or products provided by Merge Healthcare in the previous twenty-four months to that Customer.
For the purposes of this Non-Competition provision, Customer shall mean (i) any person or entity to whom Merge Healthcare or any of its subsidiaries or affiliates has provided services or products at any time in the 18 month period immediately prior to the termination of your employment and with which or whom you have had contact; or (ii) any entity to whom Merge Healthcare or any of its subsidiaries or affiliates has submitted a bid, quotation, estimate, or a response to Request for Proposal (RFP), Request for Tender (RFT), Expression of Interest (EOI), Request for Quotation (RFQ), at any time in the 12 month period immediately prior to the termination of your employment and with which or whom you have had contact, regardless of whether such bid, quotation, estimate or response has been successful or not.
| Non-Solicitation (of Employees): |
For a period of twelve months after the termination of your employment with Merge Healthcare for any reason whatsoever, you agree not to, unless you have the prior written consent from Merge Healthcare, which consent may be withheld by Merge Healthcare, in its sole discretion:
| (i) | on your own behalf, or on behalf of any entity with whom you are connected, directly or indirectly solicit any employee employed by Merge Healthcare or any of its affiliates or subsidiaries at the time of your termination or within the six month period immediately prior to the termination your employment, for the purposes of obtaining the services of such employee, either as an employee or consultant. |
You acknowledge that this offer letter, the Employee Confidentiality and Intellectual Property Assignment Agreement executed on our about July 3 , 2008, and the above-referenced 2005 Equity Plan and the stock option award agreement form the entirety of the contract of employment between you and Merge Healthcare Incorporated. You confirm that there are no “side deals”, understandings, warranties, promises, representations, either orally or in writing, that are part of the contract of employment between you and Merge Healthcare.
| Prior Agreements: This Agreement amends, restates and supersedes any prior employment related agreements, including that certain Key Officer Agreement dated October 12, 2005, which shall no longer be in effect. |
Steve, I am certain that your skills and abilities will make tremendous contributions towards the success of the Merge Healthcare team.
Sincerely,
/s/ Todd Scott
Todd M. Scott
Director, Human Resources
MERGE HEALTHCARE
The foregoing employment offer is not intended to create a right to employment for a guaranteed term, nor does it preclude a change in salary or benefits as may be deemed appropriate.
Please review, sign, and return to me by no later than July 7, 2008.
/s/ Steven Oreskovich | 7/3/08 | |
Steven Oreskovich | Date | |
Company Receipt Acknowledged: | ||
/s/ Todd Scott | 7/15/08 | |
Todd M. Scott | Date |
Director, Human Resources
