1
EXHIBIT 10.14
ADDENDUM / MODIFICATION TO EMPLOYMENT AGREEMENT
Pursuant to Article IX of the Employment Agreement made the 14th day of
September 1998, effective July 2nd, 1998 by and between Xxxxxx X. Xxxxxx,
("Executive") and Comprehensive Care Corporation, (the "Company"), the parties
agree to modify the Employment Agreement effective December 27th, 1999 as
follows:
ARTICLE IX, TERM AND TERMINATION is deleted and replaced by the following:
(A) This Agreement shall commence on the date hereof and end as of the
date of termination of employment.
(B) This Agreement may be terminated prior to the expiration of its
term as follows:
a. Upon the mutual agreement of the Company and Executive.
b. Upon the death or permanent disability of Executive, in which
case Executive shall be entitled to all Base Salary through
the date of termination. For the purposes of the foregoing,
permanent disability shall be the inability of Executive to
attend to his usual duties for a period of two (2) months in
any 12-month period of the term or sixty (60) consecutive
calendar days.
c. For cause by the Company, in which case Executive shall only be
entitled to his Base Salary through the date of termination. For
the purpose of the foregoing, cause shall be (a) a breach or
default in the performance by Executive of any of his material
obligations under this Agreement, which breach or default is
not cured within ten (10) business days following written notice
thereof to Executive, or (b) the commission by Executive of any
act resulting in or intending to result in his personal gain or
enrichment at the expense of the Company, or the commission by
Executive of any felony or misdemeanor or act involving moral
turpitude.
d. By the Company without cause, in which case Executive shall be
entitled to an amount equal to twelve (12) months of his Base
Salary in effect at the time of termination, payable in salary
continuation or lump sum in accordance with Company practice.
e. By the executive if, at any time during the term as a result of
a change in control of the Company shall have occurred, in which
case Executive shall be entitled to an amount equal to twelve
(12) months of his Base Salary in effect at the time of
termination plus a pro-rata portion of his Incentive Bonus at
target for the period of the beginning of the fiscal year
through date of termination, payable in salary continuation or
lump sum in accordance with Company practice. For the purpose of
the foregoing, a change in control shall occur in the
2
event the Company enters into any agreement involving the sale
of a controlling interest in the Company or the sale by the
company of all or substantially all of its assets to any other
entity, or the merger of the Company into and with another
entity in which the Company is not the survivor, or in which
the Company is not the controlling shareholder. In the event
of termination by Executive under this subparagraph, Executive
shall be entitled to receive, as a special severance benefit,
all options granted to Executive and which shall not have
heretofore vested, shall immediately vest and become presently
exercisable.
IN WITNESS WHEREOF, the parties hereto have executed this Addendum and affixed
their hands and seals this 27th day of December 1999.
COMPREHENSIVE CARE CORPORATION
By: /s/ Xxxxxx X. Street
---------------------------------
Xxxxxx X. Street
Chairman, President and Chief
Executive Officer
By: /s/ Xxxxxx X. Xxxxxx
---------------------------------
Xxxxxx X. Xxxxxx (Executive)
