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Addendum to Merger Agreement

 
EXHIBIT 10.2

 
ADDENDUM TO 
 
MERGER AGREEMENT AND PLAN OF REORGANIZATION

 
BY AND AMONG 
 
PAINCARE HOLDINGS, INC., 
 
PAINCARE ACQUISITION COMPANY IV, INC., 
 
MEDICAL REHABILITATION SPECIALISTS II, P.A.,

 
AND 
 
KIRK MAURO, M.D. 

 
ADDENDUM TO
MERGER AGREEMENT AND PLAN OF REORGANIZATION 
 
This Addendum (the “Addendum”) is made and entered into this 6th day of May, 2003 with respect to that certain MERGER AGREEMENT AND PLAN OF REORGANIZATION (the “Merger Agreement”) entered into
on April 17, 2003 (the “Execution Date”) by and among PAINCARE HOLDINGS, INC., a Florida corporation (“PainCare”), PAINCARE ACQUISITION COMPANY IV, INC., a Florida corporation (“Subsidiary”, and together
with PainCare, the “Acquiring Companies”), MEDICAL REHABILITATION SPECIALISTS II, P.A., a Florida professional association (the “Company”), and KIRK MAURO, M.D., an individual (the “Shareholder”).
PainCare, Subsidiary, the Company and the Shareholder are sometimes referred to herein individually as a “Party” and collectively as the “Parties.” 
 
WHEREAS, the Parties of desirous of amending and modifying certain provisions of the Merger Agreement as
hereinafetr set forth. 
 
NOW THEREFORE, in
consideration of the mutual covenants and agreements contained herein, the parties hereby agree as follows: 
 
1. Transaction Consideration. Section 3.1(b) of the Merger Agreement shall be deleted in its entirely and its place and stead the
following new Section 3.1(b) shall be inserted: 
 
“The initial aggregate transaction consideration that PainCare shall transfer to the Shareholder shall equal Two Million Seven Hundred Fifty Thousand and 00/100 Dollars ($2,750,000), comprised of: (i) the Deposit which shall be
applied against the purchase price at Closing; (ii) Six Hundred Thousand and 00/100 Dollars ($600,000) (the “Cash Due At Closing”) which shall be delivered via wire transfer on the Closing Date to a bank account designated by the
Shareholder; (iii) a promissory note in the form attached hereto as Exhibit “A” payable to the Shareholder in the amount of Four Hundred Thousand and 00/100 Dollars ($400,000) (the “Purchase Money Note”); plus (iv) One Million
One Hundred Thousand (1,100,000) PainCare Shares valued at One Million Three Hundred Seventy Five Thousand and 00/100 Dollars ($1,375,000 or $1.25 per share) (collectively, the “Transaction Consideration”). In addition to the Transaction
Consideration, the Shareholder shall be entitled to the Earn-out Payment (if any) subject to the adjustments set forth in Section 3.3 below. At least five (5) days prior to the Closing Date, the Shareholder shall notify PainCare in writing of the
bank account to which the Cash Due At Closing shall be wired.” 
 
2. CLOSING. Section 6 of the Merger Agreement shall be deleted in its entirely and its place and stead the following new Section 6 shall be inserted: 
 
“The closing of the Transaction (the “Closing”) shall take place at the offices of PainCare,
or via remote location as coordinated by the Parties’ respective counsel within three (3) days of the execution of this Addendum (the “Closing Date”).” 
 
3. Entire Agreement. The Merger Agreement, as modified hereby, supersedes all prior and
contemporaneous agreements and understandings between the parties hereto, oral or written, and may not be modified or terminated orally. No modification, termination or attempted waiver shall be valid unless in writing, signed by the party against
whom such modification, termination or waiver is sought to be enforced. 

 
4.
Counterparts. This Addendum may be executed in counterparts, all of which taken together shall be deemed one original. 
 
5. Effect of Addendum. Except as otherwise provided herein, the terms and conditions of the Merger Agreement shall remain unchanged
and are hereby republished in their entirety subject to the modifications set forth herein. 
 
IN WITNESS WHEREOF, the Parties hereto have executed this Addendum as of the date first above written. 
 

	 PAINCARE:
  
 PAINCARE HOLDINGS, INC.,
 a Florida corporation

	
	 By:
	 	 /s/    MARK SZPORKA

	 Print:
	 	 Mark Szporka

	 Its:
	 	 CFO

 

	 SUBSIDIARY:
  
 PAINCARE ACQUISITION COMPANY
IV, INc.,
 a Florida corporation

	
	 By:
	 	 /s/    MARK SZPORKA

	 Print:
	 	 Mark Szporka

	 Its:
	 	 CFO

 

	 COMPANY:
  
 MEDICAL REHABILITATION SPECIALISTS II,
P.A.,
 a Florida professional association

	
	 By:
	 	 /s/    KIRK MAURO, M.D.

	 Print:
	 	 Kirk Mauro, M.D.

	 Its:
	 	 President

 

	 SHAREHOLDER:

	
	 /s/    KIRK MAURO, M.D.
              

	 Kirk Mauro, M.D.EXHIBIT 10.a.1

CONSENT OF INDEPENDENT AUDITORS  

        We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 333-92229) pertaining to the 1993
Stock Option Plan and the 1996 Employee Stock Purchase Plan of Biovail Corporation, as well as the incorporation by reference in the Registration Statement (Form F-10
No. 333-14048) and the related Prospectus pertaining to the registration of $1,500,000,000 of common shares, debt securities and warrants, of our reports dated April 9, 2003,
with respect to the consolidated financial statements of Biovail Corporation prepared in accordance with Canadian generally accepted accounting principles and United States generally accepted
accounting principles that are included in the Annual Report (Form 20-F), dated May 20, 2003 for the year ended December 31, 2002. 

        Our
audits also included the financial statement schedule of Biovail Corporation included on Page S-1 of the Annual Report (Form 20-F). This schedule is the
responsibility of the Company's management. Our responsibility is to express an opinion based on our audits. In our opinion, the financial statement schedule referred to above, when considered in
relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein. 

	Toronto, Canada	 	/s/ ERNST & YOUNG LLP
	May 20, 2003	 	Chartered Accountants

II-6

   SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

(All dollar amounts expressed in thousands of U.S. dollars)  

	Column A
 
	 	Column B
	 	Column C
	 	Column D
	 	Column E

	 
	 	 
	 	Additions
	 	 
	 	 
	 	 

	 
	 	 
	 	Deductions
	 	 

	 
	 	 
	 	 
	 	Charged to product sales(2)
	 	 
	 	 

	Description
 
	 	Balance at beginning of period
	 	Charged to costs and expenses(1)
	 	Acquisitions of businesses
	 	Write-offs of accounts receivable
	 	Sales discounts and allowances
	 	Balance at end of period

	Allowance for doubtful accounts, deducted from accounts receivable	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year ended December 31, 2002	 	7,085	 	(1,501	)	8,148	 	—	 	(1,368	)	(8,924	)	3,440
	Year ended December 31, 2001	 	4,049	 	3,906	 	4,106	 	—	 	(743	)	(4,233	)	7,085
	Year ended December 31, 2000	 	3,255	 	544	 	1,268	 	1,150	(3)	(841	)	(1,327	)	4,049

	1.
	Amounts
represent the reserve for potential credit losses.

	2.
	Amounts
represent the reserve for sales discounts and allowances.

	3.
	Amount
arising from the acquisition of DJ Pharma, Inc. 

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Exhibit 10.10

Exhibit 10.11

Exhibit 10.12  

EMPLOYMENT CONTRACT  

        This Agreement is entered into this 2nd day of October, 2002, between International Wholesale Tile, Inc. (hereinafter referred to as the
"EMPLOYER") having its principal place of business at 4401 SW Port Way, Palm City, Florida 34990, and FORREST P. JORDAN, (hereinafter referred to as the "EMPLOYEE"), whose mailing address is
P.O. Box 412, Palm City, Florida 34991. 

        In
consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration exchanged between the parties, the EMPLOYER and the EMPLOYEE hereby agree
as follows: 

ARTICLE I

TERM OF EMPLOYMENT  

	1.01
	The
EMPLOYER employs the EMPLOYEE and the EMPLOYEE accepts employment with the EMPLOYER for a period of one (1) year commencing upon the execution of this Agreement and
subject to perpetual renewal as further set forth in paragraph 9.02; however, this Agreement may be terminated earlier as provided below. 

 
 

ARTICLE II
  DUTIES OF EMPLOYEE    
    

	2.01
	The
EMPLOYEE is employed as an employee without title and subject to further, if any, decision of Board of Directors. The duties to be performed by the EMPLOYEE shall be those
defined and amended from time to time by Board of Directors of IWT Tesoro Corporation ("IWT"), the parent company of the EMPLOYER. The EMPLOYEE shall devote his entire work time to the business of the
EMPLOYER and shall perform all employment duties in compliance with the directions of the IWT's Board of Directors.

	2.02
	At
the commencement of the employment, the EMPLOYEE shall perform his duties at the offices of the EMPLOYER located at 4401 SW Port Way, Palm City, Florida 34990. However, at any
time deemed necessary or advisable by the EMPLOYER for business purposes, the EMPLOYEE shall work at any other place or places that may be designated by the EMPLOYER within the EMPLOYER'S "territory"
which shall comprise various locations within and without the State of Florida. 

HOURS OF EMPLOYMENT  

	2.03
	The
EMPLOYEE shall work such hours as are reasonably necessary to fulfill the duties of their position as an employee and as may be further defined by the Board of Directors from
time to time. 

ENGAGING IN OTHER EMPLOYMENT  

	2.04
	The
EMPLOYEE shall devote his entire productive time, ability and attention to the business of the EMPLOYER during the term of this Agreement. The EMPLOYEE shall not directly or
indirectly render any services of a business, commercial or professional nature to any other person or organization, whether for compensation or otherwise, without the prior written consent of the
EMPLOYER, regardless of the nature of said services, and regardless of whether they are rendering said services in competition or not. 

ARTICLE III

COMPENSATION OF EMPLOYEE AND EMPLOYEE BENEFITS  

	3.01
	As
compensation for service rendered under this Agreement, the EMPLOYEE shall be entitled to receive from the EMPLOYER a base salary as designated by the Compensation Committee
designated by IWT's Board of Directors to commence at $63,250 (Sixty Three Thousand, Two Hundred Fifty and no/100 Dollars) per quarter, and payable in the routine manner and as set forth in Exhibit
"A" adopted by the EMPLOYER for compensation of its EMPLOYEES.

	3.02
	The
EMPLOYEE shall be paid additional compensation as follows:

	A.
	The
EMPLOYEE shall be provided with a Life Insurance Policy in an amount to be determined, from time to time, by the Compensation Committee as designated by the Board of Directors of
EMPLOYER. The EMPLOYEE shall be given the full discretion to designate the beneficiaries of said life insurance policy.

	B.
	The
EMPLOYEE shall also be entitled to receive such additional compensation as described in Exhibit "B", as applicable.

	C.
	The
EMPLOYEE shall receive such other bonuses and benefits, if any, as determined by the Compensation Committee designated by the Board of Directors. 

ARTICLE IV

VACATION PAY  

	4.01
	The
EMPLOYEE shall be entitled to an annual leave of four (4) weeks each calendar year with full pay which shall not interfere with the effective operation of the EMPLOYER
corporation.

	4.02
	Every
five (5) years commencing upon execution of this agreement, EMPLOYEE shall be entitled to an additional one (1) week of vacation per year to be taken in
accordance with paragraph 4.01 and 4.04.

	4.03
	The
EMPLOYEE shall be entitled to normal annual holidays determined from time to time by the Compensation Committee as designated by the Board of Directors of EMPLOYER with full pay.

	4.04
	The
EMPLOYEE shall not be entitled to carry over unused vacation and/or holiday leave to succeeding years, and shall be deemed to have lost any unused leave.

	4.05
	In
any case, EMPLOYEE shall not be entitled to any more than 7 (seven) total weeks of vacation per year (not including holidays). 

ARTICLE V

REIMBURSEMENT OF EMPLOYEE EXPENSES  

	5.01
	The
EMPLOYER in its reasonable discretion shall reimburse the EMPLOYEE for expenses related to any continuing educational courses, licenses, or professional associations required for
the EMPLOYEE to perform his duties. 

ARTICLE VI

PROHIBITION ON DISCLOSURE OF CONFIDENTIAL INFORMATION  

	6.01
	EMPLOYEE
acknowledges he will have access to operating financial and other information of EMPLOYER and customers of the EMPLOYER including, without limitation, procedures, business
strategies, and prospects and opportunities, techniques, methods and information about, or received by it, from its customers and that divulgence will irreparably harm the 

EMPLOYER
("Confidential Information"). EMPLOYEE also acknowledges that the foregoing provides EMPLOYER with a competitive advantage (or that could be used to the disadvantage of the EMPLOYER by a
competitor). EMPLOYEE also acknowledges the interest of the EMPLOYER in maintaining the confidentiality of such information and EMPLOYEE shall not, nor any person acting on behalf of EMPLOYEE,
divulge, disclose or make known in any way or use for the individual benefit of EMPLOYEE or others any of such Confidential Information. The foregoing is not applicable to such Confidential
Information that is established by EMPLOYER to be in the public domain otherwise than as a result of its unauthorized disclosure by EMPLOYEE or any other person. 

	6.02
	The
customers of the EMPLOYER entrust the EMPLOYER with responsibility for their business in the expectation that the EMPLOYER will hold all such matters, including in some cases the
fact that they are doing business with the EMPLOYER and the specific transactions in which they are engaged, in the strictest confidence ("Customer Confidences"). EMPLOYEE covenants that after the
termination of his employment with the EMPLOYER, he will hold all Customer Confidences in a fiduciary capacity and will not directly or indirectly disclose or use such information.

	6.03
	Employee
hereby assigns to the EMPLOYER his entire right, title and interest in any idea, concept, technique, invention and related documentation, other works of authorship, and the
like (all hereinafter called "Developments") made, conceived, written or otherwise created solely by him or jointly with others, whether or not such Developments are patentable, subject to copyright
protection or susceptible to any other form of protection which relate to the actual business or research or development of the EMPLOYER. EMPLOYEE, after the termination of its employment with
EMPLOYER, shall return to the EMPLOYER (and shall not retain any copies or excerpts therefrom) all documents, notes, analyses or compilations, including all copies thereof, and all other property
relating to the EMPLOYER ("Employer Documents") including, but not limited to, documents generated by EMPLOYEE pursuant to his relation with the EMPLOYER.

	6.04
	EMPLOYEE
acknowledges that the EMPLOYER has a compelling business interest in preventing unfair competition stemming from the use of disclosure of Customer Confidences and
Confidential Information in the event that, after any termination on the post-employment activities of EMPLOYEE, EMPLOYEE goes to work or becomes affiliated with a competitor of the
EMPLOYER.

	6.05
	EMPLOYEE
further acknowledges that all customers he services or dealt with while employed with the EMPLOYER are customers of the EMPLOYER and not EMPLOYEE's personally. EMPLOYEE also
acknowledges that, by virtue of his employment with the EMPLOYER, EMPLOYEE has gained or will gain knowledge of the identity, characteristics and preferences of the customers of the EMPLOYER, and that
EMPLOYEE will not use such Customer Confidences and Confidential Information at any time. 

COVENANTS NOT TO COMPETE OR SOLICIT  

	6.06
	The
EMPLOYEE undertakes that during the term of this Agreement and for 24 months thereafter, he will not, directly or indirectly (whether as sole proprietor, partner,
stockholder, director, officer, employee or in any other capacity as principal or agent) compete with, or participate in any business that competes with, the EMPLOYER; provided that the EMPLOYEE may
invest in (i) the securities of any business or enterprise (but without otherwise participating in the activities of such business or enterprise) which are listed on a national or regional
securities exchange or traded in the over-the-counter market, and (ii) equity interests of the EMPLOYER, of any member thereof.

	6.07
	The
EMPLOYEE undertakes that during the term of this Agreement and for a period of 24 months thereafter he will not, directly or indirectly (whether as a sole proprietor,
partner, 

stockholder,
director, officer, employee or in any other capacity as principal or agent), do any of the following: 

	i.
	Hire,
or attempt to hire for employment any person who is an employee of the EMPLOYER on the date of such termination of employment, or attempt to influence any such person to
terminate his employment by the EMPLOYER; or

	ii.
	In
any other manner interfere with, disrupt or attempt to disrupt the relationship, contractual or otherwise, between the EMPLOYER and any of its employees, or disparage the business
or reputation of the EMPLOYER to any such person.

	iii.
	The
EMPLOYEE undertakes that during the term of this Agreement and for 24 months thereafter he will not, directly or indirectly (whether as a sole proprietor, partner,
stockholder, director, officer, employee or in any other capacity as principal or agent), do any of the following:

	A.
	Solicit
service, or accept any actual or prospective accounts, clients or customers of the EMPLOYER during the period of the EMPLOYEE's employment by the EMPLOYER;

	B.
	Influence
or attempt to influence any of the accounts, customers or clients referred to in Section 7.b iii to transfer their business or patronage from the EMPLOYER to any other
person or company engaged in a similar business;

	C.
	Directly
assist any person or company soliciting, servicing or accepting any of the accounts, customers or clients referred to in Subsection 7.biii, or any other person, or disparage
the business or reputation of the EMPLOYER to any such person.

	iv.
	The
EMPLOYER undertakes that at all times, now or hereafter, he will not, directly or indirectly, disparage the business or reputation of the EMPLOYEE to any accounts, customers or
clients referred to in this Section 7, or any other person. 

RETURN OF DOCUMENTS  

	6.08
	On
termination of the EMPLOYEE's employment with the Company, or at any time upon the request of the Board of Directors of the Company or its affiliates, the EMPLOYEE shall return to
the EMPLOYER all documents, including all copies thereof, and all other property relating to the business or affairs of the EMPLOYER, including, without limitation, customer lists, agents or
representatives lists, commission schedules and information manuals, letters, materials, reports, lists and records (all such documents and other property being hereinafter referred to collectively as
the "Materials"), in his possession or control, no matter from whom or in what manner he may have acquired such property. The EMPLOYEE acknowledges and agrees that all of the Materials are property of
the EMPLOYER and releases all claims of right of ownership thereto. 

ARTICLE VII

TERMINATION OF EMPLOYMENT  

	7.01
	Termination
for Cause.

	i.
	The
parties agree that if the EMPLOYER shall violate any provision of this Agreement, the EMPLOYEE's employment with the EMPLOYER and all of his rights may be terminated immediately
for such cause at the option of the non-breaching party. Notice of termination shall be given via hand delivery or by certified mail sent to the last known address of the breaching party.

	ii.
	The
EMPLOYER may terminate the EMPLOYEE's employment with the Company for "Cause". The term "Cause" shall mean any willful misconduct, malfeasance, gross 

negligence
or other like conduct adversely affecting the best interests of the Employer, including, without limitation, (A) the failure or neglect by the EMPLOYEE to perform his duties
hereunder, (B) the violation or attempted violation of any provision hereof, (C) the commission of any felony, including, without limitation, any fraud against the EMPLOYER, any of its
affiliates, clients or customers of the EMPLOYER. 

	7.02
	In
the event of a termination of this Agreement by the EMPLOYER as set forth above, the EMPLOYEE shall be entitled to the compensation AND ANY BENEFITS earned by him prior to the
date of termination as provided in this Agreement, computed pro-rata up to and including that date.

	7.03
	At
the discretion of either party, and without regard to cause, this Agreement may be terminated upon either party giving the other a three (3) month advance notice. During
the three (3) month notice period, EMPLOYEE shall continue to perform all duties required and shall be compensated as per this Agreement.

	7.04
	In
the event of either party to this Agreement commences any legal proceeding for the enforcement of the terms and conditions of this Agreement, or the breach thereof, the prevailing
party shall be entitled to recover of reasonable attorneys' fees and costs of such action including any appellate proceedings associates therewith. 

ARTICLE VIII

GENERAL PROVISIONS  

	8.01
	Any
notices to be given under this Agreement by either party to the other may be effected either by personal delivery in writing or by certified mail with postage prepaid and return
receipt requested. Mail notices shall be addressed to the parties at the addresses appearing in the introductory paragraph of this Agreement, but each party may change the address by written notice in
accordance with this paragraph. Notice delivered personally shall be deemed communicated as of actual receipt; mail notices shall be deemed communicated as of three (3) days after mailing.

	8.02
	This
Agreement supersedes any and all other agreements, either oral or in writing between the parties with respect to the employment of the EMPLOYEE by the EMPLOYER and contains all
of the covenants and agreements between the parties with respect to the employment in any manner whatsoever. Each party acknowledges that no representations, inducements, promises, or agreements,
orally or otherwise, have been made by any party, or by anyone acting on behalf of any party, that are not embodied in this Agreement, and that no other agreement, statement, or promise, not contained
in this Agreement shall be valid or binding. Any modification of this Agreement shall be effective only if in writing signed by the parties hereto.

	8.03
	If
any provision in this Agreement is held by a Court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full
force without being impaired or invalidated in any way.

	8.04
	This
Agreement shall be governed by and construed in accordance with the laws of the State of Florida and venue of any legal proceedings arising out of this Agreement shall be in
Martin County, Florida, without giving effect to any conflict of laws principles. 

ARTICLE IX

ADDITIONAL PROVISIONS OF EMPLOYMENT  

	9.01
	In
the event that EMPLOYEE FORREST JORDAN intends to leave the employ of EMPLOYER for any reason otherwise not in breach of this agreement and resign his position, he shall be
required to give written notice of his intent to resign employment at least three (3) months in advance. 

	9.02
	This
Agreement shall be subject to an automatic renewal of the term of employment (for a successive one (1) year term) at the expiration of the term (and each successive term)
unless the EMPLOYER provides written notification to the EMPLOYEE of an intent not to extend the term of employment. This Notice of Non-Renewal must be sent to the EMPLOYEE no later than
three (3) months prior to expiration of the then existing term of employment in order to be effective. Employment during any extended term(s) shall be governed by the terms of this Agreement. 

	FORREST P. JORDAN

EMPLOYEE	 	INTERNATIONAL WHOLESALE TILE, INC.

EMPLOYER
	

 Forrest P. Jordan	
 	

By:	

 Paul F. Boucher, President

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ARTICLE II DUTIES OF EMPLOYEE

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