EXHIBIT 10.3.1
F H S
Foundation Health Systems, Inc.
October 14, 1998
Xx. Xxxx X. Xxxxx
00 Xxxxxxx Xxx Xxxxx
Xxx Xxxxxx, XX 00000
Dear Marc:
This letter serves as an addendum to the Letter of Agreement (Agreement) entered
into on February 9, 1998, by and between Foundation Health Systems (FHS) and
Xxxx X. Xxxxx. All original terms and conditions of the Agreement remain in full
force and effect.
1. You will continue in your current position as Chief Financial Officer,
First Option Health Plan, NJ (Physicians Health Services when the
merger is approved), from April 1, 1999 until at least June 30, 1999.
You will continue to be paid your current biweekly rate, less all
deductions required by law until that date. You will report to the FHS
Northeast Region Chief Financial Officer, with a dotted line to the PHS
New Jersey President.
2. In addition to the bonus paid to you on March 31, 1999, if you remain
employed by FHS to June 30, 1999, or if your employment is terminated
for any reason other than "just cause: prior to June 30, 1999, you will
receive an additional bonus equivalent to ten percent (10%) of your
salary, which will be paid on June 30, 1999.
3. On April 30, 1999, FHS will inform you of the status of a potential
future role in the company. If an offer is made to you to continue
employment with FHS, you will have the right to either accept or reject
the offer. If you do not accept, you will be entitled to six (6) months
severance and related salary continuation benefits described in the
Agreement, starting July 1, 1999. If you accept, you will still be
entitled to six (6) months severance and related salary continuation
benefits described in the Agreement if you are terminated in the future
for any reason other than "just cause."
4. On January 31, 1999, if you give Foundation Health Systems sixty (60)
day notice, in writing, that you do not want to extend the Agreement
from April 1, 1999 to June 30, 1999, Items 1 through 3 in the above
addendum will be null and void, and all the original terms and
conditions of the February 9, 1998 Agreement remain in full force and
effect.
Please indicate your acceptance of this agreement by signing below.
Sincerely,
/s/ Xxxxxxx Xxxxxxxx
Xxxxxxx Xxxxxxxx /s/ Xxxx X. Xxxxx
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Senior Vice President, Chief Financial Officer Xxxx X. Xxxxx
Foundation Health Systems, Northeast Region
