Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On
Employment Agreements
The Employment Agreements supersede the employment agreements that Drs. Abdou and Bacchus previously entered into.
The initial term of each Employment Agreement will end on
The Employment Agreements provide for an annual base salary (
Under the Employment Agreements, if the Executive's employment is terminated without "cause" by the Company or by the Executive for "cause" (each, as defined in the Employment Agreements), then, in addition to any accrued amounts, the Executive will be entitled to receive the following severance payments and benefits, subject to the Executive's and the Company's timely execution (and non-revocation) of a mutual release of claims:
· Cash severance in an aggregate amount equal to one-and-one-half times the sum
of the Executive's (i) annual base salary then in effect and (ii) target annual bonus amount, payable in equal installments over an 18-month period following the date of termination.
· Company-subsidized COBRA premiums for up to 18 months.
If the Executive's employment is terminated without "cause" by the Executive, then, in addition to any accrued amounts, the Executive will be entitled to receive cash severance in an aggregate amount equal to one-and-one-half times the sum of the Executive's (i) annual base salary then in effect and (ii) target annual bonus amount, payable in equal installments over an 18-month period following the date of termination.
In addition, if the Executive's employment is terminated due to his death, then, in addition to any accrued amounts, the Executive will be entitled to receive a pro-rated portion of his target bonus for the year of termination.
The Employment Agreements contain customary confidentiality and mutual nondisparagement provisions, as well as a standard non-compete restriction effective during employment and for 18 months thereafter and service provider/customer non-solicitation restrictions effective during employment and for 24 months thereafter.
The foregoing description of the Employment Agreements with Drs. Abdou and Bacchus is not complete and is qualified in its entirety by the terms of the applicable agreement, copies of which are filed herewith as Exhibit 10.1 and 10.2, respectively, and incorporated herein by reference.
Transaction Bonus Agreements
The Transaction Bonus Agreements provide for the payment of bonuses in an
aggregate amount equal to
Pursuant to the Transaction Bonus Agreements, the first installment of the
Transaction Bonus (
The Transaction Bonus Terms include: (i) a restriction on the Executive's ability to offer, sell, or announce an intention to dispose of any shares of the Company's Class A common stock until the closing of the Company's first underwritten offering and sale of common stock (the "First Secondary Sale"); (ii) a requirement that, following the First Secondary Sale, the Executive only sell shares of the Company's Class A common stock pursuant to a customary 10b5-1 plan; and (iii) a limitation on the number of shares of Class A common stock the Executive may sell under such 10b5-1 plan. These restrictions apply to Class A common stock held directly by the Executive or in a trust established by the Executive.
The foregoing description of the Transaction Bonus Agreements with Drs. Abdou and Bacchus is not complete and is qualified in its entirety by the terms of the applicable agreement, copies of which are filed herewith as Exhibit 10.3 and 10.4, respectively, and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits Exhibit Description Number 10.1 Employment Agreement, by and amongP3 Health Partners Inc. ,P3 Health Group Management, LLC and Dr.Sherif Abdou . 10.2 Employment Agreement, by and amongP3 Health Partners Inc. ,P3. Health Group Management LLC and Dr.Amir Bacchus . 10.3 Transaction Bonus Agreement, by and amongP3 Health Partners Inc. , P3Health Group Management, LLC and Dr.Sherif Abdou . 10.4 Transaction Bonus Agreement, by and amongP3 Health Partners Inc. , P3.Health Group Management, LLC and Dr.Amir Bacchus . 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
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