Sample Business Contracts

Employment Agreement - SAVVIS Communications Corp. and Robert A. McCormick

Employment Forms

  • Employment Agreement. Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
  • Consulting Agreement. Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
  • Commission Agreement. Employers who compensate their sales employees based on commissions can prepare an agreement to reduce misunderstandings by specifying the base salary and how commissions are calculated.
  • Executive Employment Agreement. Companies may offer their business executives a contract that is different from the one provided to their regular employees. Executive employment agreements may be more complex because the compensation structure may include a combination of salary and commissions, provide for bonuses based on sales, stock or other financial targets, and include non-compete, confidentiality and severance provisions.
  • Sales Representative Contract. Independent sales representatives offer companies the potential to increase the sale of products or services without the burden of increasing headcount. Both parties should understand how commissions are calculated, when commissions will be paid, as well as how the representative will treat confidential information from the company and whether the representative may also sell a competing line of products or services.
  • More Employment Agreements

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                         WELSH, CARSON, ANDERSON & STOWE
                                 320 PARK AVENUE
                                   SUITE 2500
                          NEW YORK, NEW YORK 10022-6815

                                                                   TELEPHONE NO.
                                                                  (212) 893-9500
                                                                   FACSIMILE NO.
                                                                  (212) 893-9575

                                        April 2, 2001

Mr. Robert A. McCormick
Chairman and Chief Executive Officer
SAVVIS Communications Corporation
717 Office Parkway
St. Louis, MO 63141

Dear Rob:

         SAVVIS Communications Corporation ("Company") would like to confirm the
terms of your  employment  by the Company as its Chairman of the Board and Chief
Executive Officer, effective as of January 3, 2000.


         Your base salary will be $400,000  per year.  You will also be eligible
to receive an annual  incentive  bonus of up to $750,000  based on attainment of
mutually  agreed-upon  objectives.  You are  guaranteed  to receive no less than
$500,000 in annual incentive bonus for the year 2000. The annual incentive bonus
will be paid  within  thirty  (30)  days  after  receipt  of the  final  audited
financial results of the year.


         You have previously  received two separate  grants of options  totaling
750,000  (the  "Options").  These  grants  shall  remain in force and  effect in
accordance  with their existing terms and  conditions,  subject to the terms and
conditions set forth below,  which shall govern.  Any  additional  option grants
shall be at the discretion of the Board of Directors.

         All of the  restrictions  with  respect  to any of the  Shares you have
purchased by executing  Options  shall lapse upon the  occurrence of a change of
control or the sale of substantially all of the Company's assets.

         All of the  restrictions  with  respect  to any of the  Shares you have
purchased  by  executing   Options  shall  lapse  upon  the  occurrence  of  the
termination of your employment by the Company without "cause" or by you for good

         If your employment is terminated for "cause," the Company will have the
right to buy all  Shares  not yet  salable  by you at the price you paid for the
shares on  written  notice  given to you  within  fifteen  (15) days  after such
termination of employment.

         Continuation  of the right to exercise all vested options will continue
for one year after termination of employment unless termination is for cause.


         Standard  health and insurance  programs  consistent  with other senior


         In the event the Company  terminates your employment without "cause" or
you terminate your employment for good reason, you will be entitled to receive a
lump sum severance  payment equal to your then current base annual salary (which
for this  purpose  shall not be less than your  highest  annual  salary from the
Company). The severance payment will be due within thirty (30) days of your last
day of employment.


         For purposes of this Agreement,  "Change of Control" shall include, but
not be limited to, a merger or consolidation of the Company or a subsidiary with
another  company  as a result of which  more  than  fifty  percent  (50%) of the
outstanding   shares  of  the  Company  after  the   transaction  are  owned  by
shareholders who were not shareholders of the Company before the transaction.

         In the event of a "Change  of  Control"  of the  Company  while you are
employed by the Company and upon  request of the new  ownership  given to you in
writing  no later  than 15 days after the date of such  change of  control,  you
shall  remain  with the  Company on the terms and  conditions  set forth in this
letter  for a period of time up to twelve  months  from the date of  "Change  of
Control"  provided that none of the conditions of  "Termination  by You for Good
Reason" are violated. For purposes of this paragraph, you shall not be deemed to
be  terminated  for good reason  solely on account of your being asked to remain
with the Company in a transitional role.

         The Company will gross you up for any  parachute  taxes you incur under
Internal Revenue code Section 4999 as a result of such a change of control.


         Your  employment  with SAVVIS  Communications  may be  terminated  with
"cause" at any time without  notice.  For purposes of this  agreement,  cause is
defined as (i) any conduct by you as an employee  of the Company  that  violates
state or  federal  laws or Company  policies  and


standards of conduct; (ii) dishonesty by you in performance of your duties as an
employee of SAVVIS, or (iii) willful misconduct by you that you know (or should
know) will materially injure the reputation of SAVVIS. If you are terminated for
cause, you will not be entitled to severance benefits.


         For purposes of the  agreement,  a termination of employment by you for
Good Reason will be deemed to include a  termination  of your  employment by you
after (a) your title,  authority,  duties or responsibilities  are substantially
reduced  without your written  consent,  or (b) the Company fails to fulfill its
salary, bonus or stock option obligations described above.

         If the  Company  fails to fulfill  its  salary,  bonus,  stock  option,
severance  or  gross-up  obligations  described  above,  it  will  pay  you  all
reasonable costs and expenses you incur to obtain payment.

         If you have any questions or comments regarding this letter, please let
me know.

                                               Very truly yours,

                                               /s/ Thomas E. McInerney
                                               Thomas E. McInerney
                                               Chairman, Compensation Committee
                                               SAVVIS Communications Corporation