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Form #1455MEDICAL CORPORATION WITH PHYSICIAN
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MEDICAL CORPORATION WITH PHYSICIAN.
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Medical corporation with
physician.
This Employment Agreement, entered into [Date], at
_________ between _________, a _________ Corporation ("Corporation"),
and _________("Doctor").
In consideration of the mutual promises and agreements
contained here, the Corporation employs Doctor, and Doctor agrees to work for
the Corporation, upon the following terms and conditions:
1. Doctor is employed by the Corporation to serve as a
practicing physician and surgeon in connection with the professional practice
conducted by the Corporation and to perform such duties as may be assigned by
the Corporation to Doctor in his or her medical specialty. Doctor further
agrees, and it is an express condition of this Agreement, that he or she will
at all times during the existence of the Agreement be a person licensed to
practice medicine and/or surgery in the state of _________ and accredited to
practice his or her specialty on behalf of patients assigned to him or her from
time to time by the Corporation, failing either of which this employment under
this Agreement shall immediately terminate and be subject to the provisions of
paragraph 8 under this agreement.
2. Subject to the provisions of paragraph 7, the term
of this Agreement shall continue until [Date] and on a year to year basis
thereafter until the Doctor reaches the age of _________; provided, however,
that Corporation may terminate this Agreement by the approval of at least
four-fifths [or as the case may be] of its Board of Directors; provided,
further, prior to the vote to terminate Doctor's employment, the Board of
Directors shall notify Doctor in writing of the proposed action to be taken,
set forth the alleged grounds for the action and inform Doctor that he or she
has a right to appear in person or through any representative he or she chooses
to hear the charges against him or her.
(a). Grounds for termination for cause are designated
here as:
(i) Failure of the Doctor to carry out duties assigned
to him or her pursuant to paragraph 3(a) of this contract;
(ii) Failure of the Doctor to reasonably comply with
the provisions of paragraphs 3(b) and 3(c) of this contract;
(iii) Any action or activity by Doctor which, in the
opinion of the Board of Directors, may damage the reputation of the Corporation
and/or _________ Hospital.
3. Doctor agrees:
(a). To devote so much of his or her time, skill,
labor and attention to the affairs and activities of the Corporation as may be
reasonably required to serve the best interests of the patients of the
Corporation and, to handle such administrative and supervisory responsibilities
as may be assigned to him or her from time to time by the Corporation.
(b). Not to engage in, or work for any individual,
firm, association or corporation engaged in, the same or similar activities now
or afterwards carried on by the Corporation, (i) during the term of this
Agreement without the consent of the Board of Directors of the Corporation, or
(ii) within a _________ mile radius of _________ Hospital in _________ for a
_________ year period after termination of employment.
(c). Doctor shall not participate in any business,
organization, activity or have any investment of any kind relating to or
affecting, directly or indirectly, the practice of medicine, without first
obtaining the consent of the Board of Directors. Doctor shall make full
disclosure to the Secretary of the Corporation, at such time or times and in
such manner as the Board of Directors shall prescribe, of all of his or her
interest in or connection with any such businesses, organizations, investments,
and activities. If requested to do so by the Board of Directors, Doctor shall
sever and terminate any and all such memberships, investments, connections and
interests.
4. Subject to the provisions of paragraph 6 of this
agreement, the Corporation agrees to pay to Doctor as compensation for his or
her services:
(a). A base salary at an annual rate of $_____ payable
in equal installments of $_____ on the _________ day of each month.
(b). An annual cash bonus in an amount which equals
that same proportion of the total annual bonus declared by the Board of
Directors which Doctor's salary paid for the year pursuant to paragraph 4(a)
here bears to the total base salary paid to all Doctors during the year under
Employment Agreements with the Corporation.
(c). At any time before Doctor reaches the age of
_________ increments or reductions in base salary payable pursuant to
subparagraph 4(a) must be approved by a vote of four–fifths [or as the case may
be] of the entire Board of Directors. Reductions in base salary, unless
consented to in writing by Doctor, can be made only on _________, effective for
following years. Corporation agrees to furnish Doctor written notice of any
base salary reduction at least _________ days preceding the effective date of
the reduction.
(d). Until such time as Doctor's base salary, paid in
accordance with paragraph 4(a) is at an annual rate of $_____, Doctor shall
receive annual $_____ increments in base salary effective as of the first day
of _________. Doctor's base salary payable under this agreement shall not
exceed an annual rate of _________.
(e). Doctor shall no longer be eligible for a bonus as
set out in subparagraph 4(b) in the year after he or she reaches the age of
_________.
(f). Doctor shall be entitled to participate in any
pension and/or profit sharing plan, health and accident plan, or other employee
benefit plans as may be established by the Board of Directors from time to
time; provided, however, Doctor's rights under this agreement shall be subject
to the limitations contained within such plans adopted.
5. Corporation agrees to take out and maintain
professional liability insurance on Doctor and pay dues for Doctor in such
professional organizations and societies as shall be determined by the Board of
Directors from time to time.
6. In the event Doctor is unable by reason of illness
or injury to perform his or her duties under this agreement, he or she shall be
considered disabled and shall receive his or her base salary and bonus during
the period of disability beginning with the first day of such illness or
injury; provided, however, the amount provided here shall be reduced by the
amount of insurance proceeds received by Doctor from policies paid for by the
Corporation, and is subject to the following limitation. When illness or injury
shall have prevented Doctor from performing his or her duties under this
agreement for a continuous period of one year, this Agreement may be terminated
pursuant to paragraph 7(b) and the provisions of paragraph 8 shall be
applicable. Doctor must return to full time employment, from a period of
disability, for a period of _________ months before a new period of disability
will take effect. Doctor shall receive only _________ months of disability
payments during any _________ year period and if Doctor is disabled more than
one time during any _________ year period, his or her subsequent disability pay
shall be limited to the unused portion of the disability pay as set out above,
subject to the exception set forth:
(a). If Doctor becomes disabled after _________ years
employment by the Corporation at any age, or after he or she reaches the age of
_________, and if such disability continues for a period in excess of 12
months, Doctor will remain an employee of the Corporation. During the period
Doctor is disabled he or she shall continue to receive his or her base salary
less any disability insurance coverage provided and paid for by the
Corporation; provided, however, that if such disability continues for a period
in excess of 12 months, the Board of Directors, by a vote of four–fifths [or as
the case may be] of its members, may reduce by not more than one-half, the base
salary to which the Doctor is entitled under this agreement. Disability
payments under this agreement shall continue until the death of Doctor or
_________ of the year in which Doctor attains the age of _________, whichever
occurs first.
(b). In the
event of any disagreement as to whether Doctor is temporarily disabled, Doctor
shall designate within _________ days from the date such disagreement arises a
licensed physician and the Board of Directors of the Corporation, other than
Doctor, within _________ days from the date such disagreement arises, shall
designate a licensed physician, which physicians so designated within _________
days from the date the last of the physicians mentioned above is designated
shall together choose a third licensed physician, and the three physicians so
selected shall make a conclusive determination as to temporary disability within
_________ days
from the date the third licensed physician is
selected. In the event that Doctor should fail or refuse to designate a
physician pursuant to the provisions above, the physician designated by the
Board of Directors of the Corporation shall make a conclusive determination as
to temporary disability within _________ days from the date of his or her
selection.
7. This Agreement shall terminate on the first to
occur of the following:
(a). The death of Doctor.
(b). The disability of Doctor extending for a period
of one year as described in paragraph 6.
(c). The permanent disability of Doctor. (In the event
of any disagreement as to whether Doctor is permanently disabled, the
disagreement shall be conclusively resolved in accordance with the procedures
set out in paragraph 6 for resolving disagreement as to whether a Doctor is
temporarily disabled.)
(d). At any time at the option of Doctor upon 30 days'
prior written notice to the Corporation.
(e). Doctor takes a leave of absence beyond a period
approved by the Board of Directors.
(f). _________ of the year in which Doctor attains the
age of _________.
8. Upon termination of this Agreement, Doctor shall be
entitled to the following, and only the following:
(a). In the event of termination of this Agreement by
reason of paragraph 7(a), payment of any insurance proceeds payable on account
of the death of the Doctor on life insurance policies which were paid for by
the Corporation.
(b). In the event of termination of this Agreement by
reasons of paragraphs 1, 2 or 7(b), (c), (d), (e) or (f), the Corporation
agrees to pay to the Doctor or to his or her personal representative in equal
monthly installments over a period of one year, beginning on the last day of
the month in which such disability extended for a continuous period of one year
or _________ days after written notice of termination of employment, or
_________ days after resigning from the staff of _________ Hospital, or
_________ days after the year end in which the Doctor attains age _________,
whichever is the last to occur, an amount equal to _________ percent of
Doctor's base salary paid pursuant to paragraph 4(a) in effect at the date of
termination.
(c). In the event of termination of this Agreement by
reason of paragraphs 1, 2, or 7(a), (b), (c) or (d), the Corporation also
agrees to pay Doctor or his or her personal representative in equal monthly
installments over a period of one year, beginning on the last day of the
following month in which such termination occurred, or _________ days after
resigning from the staff of _________ Hospital in _________, whichever is last
to occur, an amount equal to the earned but unpaid base salary and bonus Doctor
would have been paid pursuant to paragraphs 4(a) and 4(b) if the last day of
the month in which such termination occurred was the last day of the fiscal
year of the Corporation.
9. Doctor shall be entitled to a paid vacation of
_________ weeks per calendar year until _________, then _________ weeks per
calendar year until Doctor reaches the age of _________; after Doctor reaches
the age _________ he or she shall be entitled to a paid vacation of _________
weeks per calendar year.
10. This Agreement shall be construed under the laws
of the state of _________.
11. This Agreement and all rights and benefits under
this agreement are personal to Doctor, and neither this Agreement nor any right
or interest to Doctor here, or arising under this agreement shall be
voluntarily or involuntarily sold, transferred or assigned.
12. The relationship of Doctor and the Corporation is
of a special and unique nature, and it is expressly agreed that this Agreement
shall be enforceable in equity by specific performance.
13. The age of Doctor shall for all provisions of this
Agreement be considered to be his or her age on the first day of the calendar
year involved.
14. This Agreement shall be binding upon and inure to
the benefit of the parties and their respective heirs, representatives and
successors.
In witness of, the parties have executed this
Agreement [Date].
By
_________
_________
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These forms are provided to assist business owners and others in understanding important
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that no legal advice, accounting, or other professional service is being offered
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acceptable in one state may not be enforced the same way under the laws of another
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is not engaged in recommending or referring members on the site or making claims
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Keywords: MEDICAL CORPORATION, PHYSICIAN, Employment
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