MEDCATH CORP
EXHIBIT 10.61
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<TYPE>EX-10.61
<SEQUENCE>4
<FILENAME>g04654exv10w61.htm
<DESCRIPTION>EXHIBIT 10.61
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<TITLE>Exhibit 10.61</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.61</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FIRST AMENDMENT TO<BR>
EMPLOYMENT AGREEMENT</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS FIRST AMENDMENT to the Employment Agreement by and between MedCath Corporation (the
&#147;Company&#148;) and James E. Harris (&#147;Executive&#148;) (the &#147;First Amendment&#148;) is effective as of the 1st day
of September, 2006.
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RECITALS:</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Company and Executive entered into an Employment Agreement dated September&nbsp;30, 2005
(the &#147;Agreement&#148;);
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Executive has been employed by Company prior to the date hereof;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Company and Executive desire to continue Executive&#146;s employment in accordance with
the terms of Executive&#146;s Employment Agreement and in accordance with the terms of this First
Amendment; and
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the parties now wish to amend the Agreement on the terms set forth below:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged
and confessed, Company and Executive agree to amend the Agreement on the following terms:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The first paragraph of Section&nbsp;6.1(c) of the Agreement (Termination By Company Without
Cause or By Executive for Good Reason) shall be deleted in its entirety and replaced with the
following:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;For purposes of this Agreement, &#147;<U>Good Reason</U>&#148; shall mean any of the following
(without Executive&#146;s express prior written consent):
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A substantial reduction by the Company of Executive&#146;s duties or
responsibilities, other than in connection with the termination of Executive&#146;s
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">employment by the Company for Cause, by Executive without Good Reason or as a result
of Executive&#146;s Permanent Disability or death;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A reduction by the Company in Executive&#146;s Base Salary or Target Bonus;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A reduction or elimination of Executive&#146;s eligibility to participate in
any of the Company&#146;s employee benefit plans that is inconsistent with the
eligibility of similarly situated executives of the Company to participate therein;
or
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company provides Executive written notice of the non-renewal
of this Agreement pursuant to Section&nbsp;2.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Capitalized terms not defined in this First Amendment shall have the meaning assigned to
them in the Agreement.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Except as specifically set forth in this First Amendment, the terms and conditions of the
Agreement shall remain in full force and effect.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;In the event of any conflict between the terms of this First Amendment and terms of the
Agreement, the terms of this First Amendment shall control.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have executed this First Amendment on the day first written
above.
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
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    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">MEDCATH CORPORATION</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ O. Edwin French</TD>
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</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">O. Edwin French</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
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    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">JAMES E. HARRIS</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
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    <TD colspan="3" align="left" valign="top">/s/ James E. Harris</TD>
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    <TD>&nbsp;</TD>
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