Second Amendment to Employment Agreement between Ramsay Youth Services, Inc. and Luis E. Lamela

Summary

This amendment, effective June 30, 2002, updates the employment agreement between Ramsay Youth Services, Inc. and Luis E. Lamela. The main change is an increase in Mr. Lamela's base salary to $500,000 per year, paid according to the company's standard payroll practices. All other terms of the original agreement remain unchanged. The amendment is governed by Delaware law and is signed by both parties.

EX-10.1 3 g77628exv10w1.txt SECOND AMENTMENT TO EMPLOYMENT AGREEMENT -LAMELA EXHIBIT 10.1 AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT This AMENDMENT NO. 2 dated as of July 30, 2002 (this "Amendment") is entered into by and between RAMSAY YOUTH SERVICES, INC., a Delaware corporation (the "Company"), and LUIS E. LAMELA (the "Employee"). WHEREAS, the Company (then known as Ramsay Health Care, Inc.) and the Employee have entered into that certain Employment Agreement dated as of October 1, 1997 as amended by that certain Amendment No. 1 to Employment Agreement dated as of December 1, 1998 (the "Agreement"); and WHEREAS, the Company and the Employee desire to amend certain terms of the Agreement as hereinafter set forth. NOW, THEREFORE, the Agreement is hereby amended as follows: 1. Section 3.1(a) of the Agreement is hereby deleted in its entirety and replaced with the following: "3.1 SALARY. (a) In consideration of the performance by the Employee of the services set forth in Section 2 and his observance of the other covenants set forth herein, the Company shall pay the Employee, and the Employee shall accept, a base salary at the rate of $500,000 per annum, payable in accordance with the standard payroll practices of the Company." 2. This Amendment shall be effective as of the close of business on June 30, 2002. 3. Except as specifically modified by this Amendment, all of the terms and provisions of the Agreement are hereby reaffirmed and shall remain in full force and effect and shall not be altered or amended in any manner. 4. This Amendment shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be performed entirely within such State, without regard to any conflict of laws principles of such State. 5. This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same agreement. * * * IN WITNESS WHEREOF, the Company and the Employee hereto have executed this Amendment as of the date first above written. RAMSAY YOUTH SERVICES, INC. By /s/ Marcio C. Cabrera ----------------------------------------- Name: Marcio C. Cabrera Title: Executive Vice President and Chief Financial Officer /s/ Luis E. Lamela ----------------------------------------- Luis E. Lamela 2