FIRST AMENDMENT TO THE AMENDED AND RESTATED EMPLOYMENT AGREEMENT by and between ODYSSEY HEALTHCARE, INC. and ROBERT A. LEFTON
Exhibit 10.5
FIRST
AMENDMENT TO THE
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
by and between
ODYSSEY HEALTHCARE, INC.
and
XXXXXX X. XXXXXX
THIS FIRST AMENDMENT (this “Amendment”) to the Agreement (as defined below) is dated August 9,
2010, to be effective as of May 23, 2010 (the “Amendment Effective Date”) and is made by and
between Odyssey HealthCare, Inc., a Delaware corporation (the “Company”), and Xxxxxx X. Xxxxxx
(“Employee”).
W I T N E S S E T H:
WHEREAS, the Company and the Employee previously entered into an Amended and Restated
Employment Agreement, dated as of December 23, 2008, to be effective as of October 11, 2005 (the
“Agreement”), which governs the terms and conditions of the Employee’s employment with the Company;
and
WHEREAS, the Employee maintains that at the time of executing the Agreement, he agreed to the
restrictive covenants set forth in Section 10 of the Agreement because he perceived it likely that
he could receive the compensation payable upon a termination of employment on or after the
occurrence of a Change in Control (as defined in the Agreement) including the payment of certain
benefits as provided in Section 6 of the Agreement and the immediate vesting of outstanding equity
awards granted pursuant to the Odyssey HealthCare, Inc. 2001 Equity-Based Compensation Plan (the
“Equity Plan”); and
WHEREAS, Section 13(l) of the Agreement provides that it may be amended by written instrument
approved by the Board and executed by the Company and the Employee; and
WHEREAS, the Company is in the process of undergoing a transaction that could result in a
Change in Control (the “Merger”) triggering the payment of certain benefits to the Employee as
provided in Section 6 of the Agreement and the immediate vesting of outstanding equity awards
granted pursuant to the Equity Plan; and
WHEREAS, Gentiva Health Services, Inc., in connection with the Merger, has requested that the
Company and the Employee extend the term of the Employee’s restrictive covenants in Section 10 of
the Agreement to preserve its investment in the Company against reduction in value due to
competition; and
WHEREAS, such payments could result in the imposition of an excise tax and the loss of the
Company’s deduction pursuant to Sections 280G and 4999 of the Internal Revenue Code of 1986, as
amended; and
WHEREAS, the Company and the Employee have determined that it is desirable to amend the
Agreement as set forth herein to extend the term of the Employee’s restrictive covenants in Section
10 of the Agreement by one (1) year; and
WHEREAS, the Employee acknowledges that he has had the opportunity to receive legal and tax
advice regarding the effects of this Amendment; and
WHEREAS, the Employee represents and warrants to the Company that he will not challenge the
validity or enforceability of the restrictive covenants contained in the Agreement as amended
herein; further, the Employee represents and warrants to the Company that he will not initiate
litigation or arbitration to challenge such restrictive covenants as amended.
NOW, THEREFORE, in consideration of the foregoing and the mutual provisions contained herein,
and for other good and valuable consideration, the sufficiency of which is hereby acknowledged,
including but not limited to the ongoing provision of Confidential Information (as defined in the
Agreement) to the Employee by the Company and the Employee’s obligation to maintain the
confidentiality of such Confidential Information as required by Section 9(a) of the Agreement, the
payment of certain benefits to the Employee as provided in Section 6 of the Agreement and the
immediate vesting of outstanding equity awards granted pursuant to the Equity Plan upon the
occurrence of a Change in Control, the parties agree to amend the Agreement as set forth below.
Capitalized terms used but not defined herein shall have the meanings given such terms in the
Agreement.
1. The definition of “Term of Non-Competition,” contained in Section 1(p) of the Agreement and
used throughout the Agreement is extended by one (1) year. Section 1(p) of the Agreement, as
amended, shall now read as follows:
“(p) ‘Term of Non-Competition’ means the period of time beginning on the
Effective Date and continuing until 11:59 p.m., Dallas, Texas time, on the third anniversary
of the Date of Termination.”
2. Except as expressly provided above, no other terms or provisions of the Agreement are
changed or amended by this Amendment. The Agreement, as amended, remains in full force and effect.
If for any reason any portion of this Amendment is held invalid or unenforceable, the parties
agree that the terms and provisions of the Amendment that are invalid or unenforceable shall be
stricken and the Agreement, as otherwise amended, shall remain in full force and effect. If this
entire Amendment is held unenforceable or invalid for any reason, then the parties intend for the
Agreement, as it existed prior to the Amendment Effective Date, to remain in full force and effect
as if this Amendment never existed.
[SIGNATURE PAGE FOLLOWS]
IN WITNESS WHEREOF, the parties have executed this Amendment as of the Amendment Effective
Date.
| COMPANY: | ||||||
| ODYSSEY HEALTHCARE, INC. | ||||||
| a Delaware corporation | ||||||
| By: | /s/ W. Xxxxxxx Xxxxxxx | |||||
| Name: | ||||||
| Title: | Senior Vice President and General Counsel | |||||
| EMPLOYEE: | ||||||
| /s/ Xxxxxx X. Xxxxxx | ||||||
| Xxxxxx X. Xxxxxx | ||||||
[SIGNATURE PAGE TO AMENDMENT]
