EXHIBIT 10.5
November 3, 2003
Xxxxxx X. Xxxxxxxxxx
0000 X.X. Xxxxx Xxx
Xxxxxx, XX 00000-0000
Re: Amendment to Executive Employment Agreement
Dear Xxxxx,
This letter agreement serves to further amend the Employment Agreement dated as
of September 1, 2000, by and between you and PolyMedica Corporation (the
"Company"), as amended December 14, 2000; September 24, 2001; October 4, 2001;
January 31, 2002; May 31, 2002; July 15, 2002 and August 29, 2003 (together, the
"Executive Employment Agreement").
1. Section 3.6 Severance Pay is hereby deleted in its entirety and
replaced with the following in lieu thereof:
"3.6 Severance Pay. If at any time during the term of this
Agreement (including any Extended Employment Period), the Executive's
employment is terminated by the Company without cause (i.e. other than
pursuant to Section 3.5 or Section 4 hereof), and subject to the
Executive's execution and non-revocation of a severance agreement and
release drafted by and satisfactory to counsel for the Company, the
Company shall continue to pay Executive at his then current Base Salary
for the remainder of the Employment Period or for eighteen months,
whichever is longer (the "Severance Period"). Neither party shall be
entitled to any compensation or claim for good will or other loss
suffered by reason of termination of this Agreement. Notwithstanding
the foregoing, the Company's obligations under this Section 3.6 shall
cease immediately upon the payment by the Company to the Executive of
the lump sum payment described in Section 4.2(a)(i) of the Executive
Retention Agreement dated as of September 1, 2000, as may be amended
from time to time, by and between the Company and the Executive."
2. Section 3.7 Benefits During Severance Period is hereby deleted in its
entirety and replaced with the following in lieu thereof:
"3.7 Benefits During Severance Period. Except as otherwise
required by law, the Executive shall not be entitled to any employee
benefits provided under Section 3.3 after termination of Executive's
employment whether or not severance pay is being provided, except that
if severance pay is being provided (i) the Company shall continue in
full force and effect, at its expense, the life insurance provided for
in Section 3.3(b) for a period of eighteen (18) months after
termination of Executive's employment hereunder or until Executive
becomes employed, whichever first occurs, and (ii) the Company shall
offer, at its expense, continued health and dental insurance as
required under the Consolidated
Omnibus Budget Reconciliation Act of 1985 ("COBRA") or other law for a
period of eighteen (18) months after termination of Executive's
employment hereunder or until Executive becomes employed, whichever
first occurs. If Executive elects not to maintain health insurance
pursuant to COBRA or other law, the Company is under no obligation to
reimburse Executive for his otherwise elected coverage. Executive shall
be obligated to give the Company prompt notice of his subsequent
employment and at that time, the Company's obligations pursuant to this
Section 3.7, if any, shall cease."
If the foregoing is acceptable to you, please indicate your agreement by signing
a copy of this letter agreement and returning it to the undersigned.
Very truly yours,
/s/ Xxxxxx X. Xxxxxxxx
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Xxxxxx X. Xxxxxxxx
Lead Director and
Interim Chief Executive Officer
ACCEPTED AND AGREED TO:
/s/ Xxxxxx X. Xxxxxxxxxx
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Xxxxxx X. Xxxxxxxxxx
November 3, 2003
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Date
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