Employment Offer Memorandum between Universal American Financial Corp. and Jason Israel for Chief Operating Officer Position at CHCS Services, Inc.
Universal American Financial Corp. offers Jason Israel the position of Chief Operating Officer at CHCS Services, Inc., with a salary of $260,000 per year, bonus opportunities, equity participation, stock options, and standard benefits. The agreement outlines job duties, compensation details, vacation, car allowance, relocation support, and severance terms if the company is sold or employment ends. Jason is expected to spend significant time in Pensacola, with housing and travel provided as needed. The offer is subject to formalization in a letter upon Jason's confirmation.
Exhibit 10.17
UNIVERSAL AMERICAN
FINANCIAL CORP.
INTEROFFICE MEMORANDUM
| TO: |
| JASON ISRAEL |
| FROM: |
| RICHARD A. BARASCH |
| DATE: |
| JUNE 17, 2002 |
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| SUBJECT: |
| JASON ISRAEL |
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| EMPLOYMENT OFFER |
Jason, I am delighted that you have decided to join our team.
Following is a summary of what we discussed. Please review and let me know if this is correct and, if so, we will put it in a formal letter.
1) Title: Chief Operating Officer, CHCS Services, Inc.
2) Duties: Part of senior management team of UHCO, manage the operations of the TPA, UHCO corporate administrative responsibilities.
3) Salary: $260,000 per annum, paid bi-weekly
4) Bonus:
a. Target Bonus: 50% of salary.
b. Guaranteed minimum bonus for 2002 of $20,000.
c. Target is based 70% on company hitting its earnings goats, 30% on individual performance.
d. Bonus cycle is 1/1 to 12/31 of each year; bonus determined in March and paid in April of subsequent year, after numbers are finalized.
e. Bonus paid 70% in cash, 30% in UHCO stock based on price prior to year-end earnings release
5) Participation in Senior Equity Plan: an additional $500,000 of equity based compensation will be awarded to senior management based on company
performance, in a plan being worked out currently. You will be a part of this plan with an expectation of $60 to 90K of value (prorated for 2002).
6) Initial Option Grant: 60,000 options, 15,000 to vest immediately, 15,000 on each of the next three anniversaries of your start date. Options may be granted in future years.
7) $500/ month car allowance
8) Normal benefits
9) Vacation: 4 weeks per year, “use it or lose it” in each year.
10) For as long as needed, you will agree to spend as much time as is needed in Pensacola; an appropriate apartment will be provided for your use, plus your travel, plus travel for your wife as appropriate.
11) Severance: If UHCO is sold, and you are not offered an appropriate job by new owner, you will get one year severance in salary. Otherwise,
a. For the first 6 months, severance will be 6 months salary
b. Thereafter, one year.
12) If it is decided that you should move to Pensacola, we will pay for a standard moving package.
