Ex-10.3



 



AMENDMENT TO EMPLOYMENT, CONFIDENTIALITY AND NON-COMPETE

AGREEMENT BY AND BETWEEN MEDCATH INCORPORATED

AND THOMAS K. HEARN

(EFFECTIVE DATE DECEMBER 3, 1999)



     This Amendment to the Employment, Confidentiality and Non-Compete
Agreement by and between MedCath Incorporated and Thomas K. Hearn (Effective
Date December 3, 1999) (“Amendment”) is made as of December 21, 2001 by and
between MEDCATH INCORPORATED, a North Carolina corporation (the “Company”), and
THOMAS K. HEARN (“Employee”).


RECITALS



     1.     Employee has been employed by the Company prior to the date hereof;


     2.     Employee and Company desire to continue Employee’s employment as
President of the Diagnostics Division of the Company in accordance with the
terms of Employee’s Employment, Confidentiality and Non-Compete Agreement
(Effective Date December 3, 1999 (“Employment Agreement”) and in accordance
with the terms of this Amendment, which provides new and additional
consideration not previously provided to Employee by the Company;


     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Employee and Company hereby agree
as follows:


     1.     Paragraph 5(b) of Employee’s Employment Agreement is amended to read as
follows:


"(b)  By the Company Without
Cause. The Company may terminate Employee’s
employment at any time without cause by giving Employee written notice thereof.


 






 


In the event the Company terminates Employee’s employment without cause, the
Company will continue to pay Employee his current bi-weekly salary, less
applicable lawful deductions, for a period of twelve (12) months following the
date of notice of termination of employment, or until Employee secures other
substantially full-time employment or earns, on a monthly basis, at least 75%
of Employee’s monthly salary hereunder, whichever occurs first. Employee shall
be entitled to receive pro-rata vacation if terminated without cause, plus
other benefits as provided by applicable law or by Company policy.


     If the Company terminates Employee’s employment under this Agreement for
any reason other than Cause, and such termination occurs at the time of and in
connection with a Change of Control (as defined in Employee’s Incentive Stock
Option Agreement and Non-Qualified Stock Option Agreement both dated as of July
31, 1998; and Employee’s Incentive Stock Option Agreement and Non-Qualified
Stock Option Agreement both dated as of October 1, 1999), then Company will be
liable to Employee for an amount equal to his current bi-weekly salary, less
applicable lawful deductions, for a period of twenty four (24) months, to be
paid over the twelve (12) month period following the date of termination in
substantially equal installment payments and in accordance with the normal
payroll practices of the Company, as long as and only if Employee is not
otherwise in default hereunder during that period; provided, however, that
Employee’s salary shall not be payable once Employee secures other
substantially full-time employment or earns, on a monthly basis, at least 75%
of Employee’s monthly salary hereunder, whichever occurs first.”


     Except as provided in this Amendment, all other provisions, terms, and
conditions in Employee’s Employment Agreement, a copy of which is attached
hereto, shall remain in full force and effect.


2






 


Exhibit 10.3



     IN WITNESS WHEREOF, the parties hereto have executed this Amendment
effective as of the day and year first written above.



	 	 	 
	 	 	
MEDCATH INCORPORATED
	 
	 	 	
By:    /s/ Michael Servais



         Name:   Michael Servais

         Title:     Senior Vice President, COO
	 
	 	 	
/s/    Thomas K. Hearn



        Thomas K. Hearn