1
EXHIBIT 99.6
AMENDED AND RESTATED
EMPLOYMENT AGREEMENT
This Amended and Restated Employment Agreement (the "Agreement") is
entered into effective January 1, 2001, by and between Assisted Living Concepts,
Inc., a Nevada corporation (the "Company"), and Wm. Xxxxx Xxxxx (the
"Executive"). This Agreement amends and restates in its entirety that certain
Employment Agreement (the "Prior Agreement"), effective November 1, 2000, by and
between the Company and the Executive.
WHEREAS the Company desires to employ the Executive pursuant to this
Agreement effective as of January 1, 2001 (the "Effective Date"), and the
Executive desires to accept employment with the Company, on the terms and
conditions set forth below.
NOW, THEREFORE, in consideration of the foregoing recital and the
respective covenants and agreements of the parties contained in this document,
the Company and the Executive agree as follows:
1. EMPLOYMENT AND DUTIES. The Executive will serve as President and
Chief Executive Officer of the Company. The duties and responsibilities of the
Executive shall include the duties and responsibilities as set forth in the
Company's Bylaws from time to time in effect and such other duties and
responsibilities as the board of directors of the Company (the "Board of
Directors") may from time to time reasonably assign the Executive, in all cases
to be consistent with the Executive's corporate offices and positions. The
Executive shall also serve as an officer and/or director of affiliates of the
Company, without additional compensation, if requested to do so by the Company.
The Executive shall devote his full time to the business of the Company and
shall faithfully perform the executive duties assigned to him to the best of his
ability but may devote reasonable time to other business affairs (not in
conflict with the business of the Company) as otherwise provided in paragraph 10
of this Agreement.
2. EMPLOYMENT PERIOD.
(a) TERM. Subject to earlier termination as provided herein, the term
of Executive's employment hereunder shall be for a period beginning on the
Effective Date and ending on the day after the date on which the Restructuring
(as defined below) is consummated (the "Term"); provided, however, that if the
Restructuring is not consummated on or before June 30, 2002, the Term shall
automatically end on June 30, 2002. For purposes of this Agreement,
"Restructuring" shall mean a restructuring of the Company's 6% Debentures due
2002 and 5.625% Debentures due 2003 pursuant to a prepackaged, prenegotiated or
other plan of reorganization pursuant to Chapter 11 of the United States Code.
(b) INVOLUNTARY TERMINATION WITHOUT CAUSE. Subject to the terms and
conditions of this Agreement, the Company may terminate the Executive's
employment without Cause (as defined below) at any time by providing Executive
at least thirty (30) days advance notice in writing. During any such notice
period, the Executive's duties shall be transitionary in
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nature and he will be free to devote up to fifty percent (50%) of his time in
the pursuit of employment or personal matters.
(c) INVOLUNTARY TERMINATION WITH CAUSE. The Company may terminate the
Executive's employment for Cause by providing the Executive notice in writing.
For all purposes under this Agreement, "Cause" shall mean (i) willful failure by
the Executive to perform his duties hereunder, other than a failure resulting
from the Executive's complete or partial incapacity due to physical or mental
illness or impairment, (ii) gross negligence by the Executive in performing his
duties hereunder, other than negligence resulting from the Executive's complete
or partial incapacity due to physical or mental illness or impairment, (iii) a
willful act by the Executive which constitutes gross misconduct and which is
injurious to the Company, (iv) a willful violation of a federal or state law or
regulation applicable to the business of the Company. No act or failure to act
by the Executive shall be considered "willful" unless committed without good
faith and without a reasonable belief that the act or omission was in the
Company's best interest. The determination of Cause hereunder shall be made by a
majority of the Company's disinterested Board of Directors. No Severance Pay as
defined in paragraph 11(a)(i) will be paid to the Executive under this Agreement
in the event of a termination for Cause. Executive's rights under any applicable
benefit plans of the Company shall be determined under the provisions of those
plans.
(d) DEATH. The Executive's employment will terminate in the event of
his death.
(e) RESIGNATION WITHOUT CAUSE. The Executive may terminate his
employment by providing the Company at least thirty (30) days advance written
notice; provided that in such event, the Executive will cease performing any
duties and responsibilities immediately or at any time during such thirty (30)
day period, if so requested by the Company.
Executive's termination of employment shall not be deemed to be
voluntary and shall be deemed to be a resignation with "Good Reason" if it is
based upon one more of the following, without Executive's prior written consent:
(i) a material diminution in Executive's title, duties or salary; (ii) a
reduction in benefits which is not part of an across-the-board reduction in
benefits of all senior executive personnel; (iii) a direction by the Board of
Directors that Executive report to anyone other than the Board of Directors or
(iv) a material breach of this Agreement by the Company. It shall also
constitute Good Reason for Executive to resign if he no longer serves on the
Board of Directors, unless the Executive declines to so serve.
3. PLACE OF EMPLOYMENT. The Executive's services shall be performed at
the Company's principal executive offices at Portland, Oregon and the Executive
understands that he is expected to travel extensively in carrying out his duties
with the Company. The parties hereby acknowledge that the Executive's primary
residence currently is in Seal Beach, California and that no relocation is
contemplated. The Executive has agreed, however, to commute to Portland as is
reasonably necessary to perform his duties, provided that the Company shall
reimburse Executive for his reasonable travel expenses to and from his residence
in Seal Beach to Portland.
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4. BASE SALARY. For all services to be rendered by the Executive
pursuant to this Agreement, the Company agrees to pay the Executive an annual
base salary (the "Base Salary") of $360,000. This Base Salary may not be reduced
without the express written consent of the Executive. The Base Salary shall be
paid in accordance with the Company's regular payroll practices.
5. BONUSES. During Executive's employment with the Company under this
Agreement, the Executive will be eligible to receive the following bonus
payments (each, a "Bonus"). In the event that the Executive resigns for Good
Reason or the Executive's employment is terminated by the Company as described
in paragraph 11(a)(i), the Executive shall be entitled to receive the Bonuses,
if any, to the extent provided in paragraph 11(b).
(a) RESTRUCTURING APPROVAL BONUS. If the Restructuring Approval (as
defined below) occurs on or before June 30, 2002 and the Executive remains
continuously employed by the Company through the Approval Date (as defined
below), the Executive shall be entitled to a bonus (the "Restructuring Approval
Bonus") in an amount equal to $125,000. For purposes of this Agreement,
"Approval Date" shall mean the date on which the Company receives lock-up
agreements or other commitments in an amount sufficient to confirm the
Restructuring pursuant to a prenegotiated plan of reorganization (whether
through cramdown or otherwise) prior to the filing of a Chapter 11 case (such
event, the "Restructuring Approval"). The Company shall pay the Restructuring
Approval Bonus to the Executive as soon as practicable following the Approval
Date (but in no event later than the day before the filing of the Chapter 11
case).
(b) RESTRUCTURING CONSUMMATION BONUS. If the Restructuring is
consummated on or before June 30, 2002 and the Executive remains continuously
employed by the Company through the date on which the Restructuring is
consummated (the "Consummation Date"), the Executive shall be entitled to a
bonus (the "Restructuring Consummation Bonus") based on the following table:
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IF EBITDA FOR THE COMPANY' S MOST RECENT THE AMOUNT OF THE RESTRUCTURING
FISCAL QUARTER ENDING IMMEDIATELY PRIOR TO CONSUMMATION BONUS SHALL BE:
(OR CONCURRENTLY WITH) THE CONSUMMATION
DATE IS:
------------------------------------------------------------------------------------
equal to or less than $4,499,999 $75,000
------------------------------------------------------------------------------------
between $4,499,999 and $5,499,999 $125,000
------------------------------------------------------------------------------------
equal to or above $5,500,000 $175,000
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For purposes of this Agreement, "EBITDA" shall mean the Company's
operating results (unaudited quarterly as filed on the Company's form 10-Q as
reviewed by the Company's auditors) for the Company' s most recent fiscal
quarter ending immediately prior to (or concurrently with) the Consummation
Date, derived by subtracting the Company's operating costs and selling, general
and administrative costs from its net revenues, exclusive of costs associated
with restructuring of company finances, costs associated with settlement of
shareholder litigation, including the settlement itself, and other material
costs not associated with the operations of the Company's business. The Company
shall pay the Restructuring
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Consummation Bonus to the Executive as soon as practicable (but in no event
later than ten (10) days) following the Consummation Date.
6. EXPENSES. The Executive shall be entitled to reimbursement by the
Company for Executive's reasonable expenses for room, board and transportation
in Portland and for all reasonable, ordinary and necessary travel, entertainment
and other expenses incurred by the Executive during the term of this Agreement
(in accordance with the policies and procedures established by the Company for
its senior executive officers) in the performance of his duties and
responsibilities under this Agreement; provided, however, that the Executive
shall properly account for such expenses in accordance with the Company's
policies and procedures.
7. BENEFITS. The Executive shall be entitled to participate in employee
benefit plans or programs of the Company, if any, to the extent that his
position, tenure, salary, age, health and other qualifications make him eligible
to participate, subject to the rules and regulations applicable thereto. In
addition, the Executive will be entitled to receive an annual physical
examination at Company's expense, or at the Company's request, will take a
physical examination annually and provide the results to the Board of Directors.
8. VACATIONS AND HOLIDAYS. In accordance with the Company's policies in
effect from time to time, the Executive shall be entitled to paid vacation time
in the amount of four weeks per year, prorated for each complete month of
service, and Company holidays. Executive's right to carryover accrued unused
vacation shall be governed by the Company's policy then in effect.
9. INDEMNIFICATION. The Company shall enter, or shall have entered, into
an Indemnification Agreement with the Executive in substantially the same form
as that attached hereto as Exhibit A and incorporated herein by this reference
that shall provide the Executive with the maximum amount of protection allowed
under the laws of Nevada to the extent that such protection is not inconsistent
with the Company's Certificate of Incorporation or Bylaws with respect to such
subject matter.
10. OTHER ACTIVITIES. The Executive shall devote substantially all of
his working time and efforts during the Company's normal business hours to the
business and affairs of the Company and to the diligent and faithful performance
of the duties and responsibilities duly assigned to him pursuant to this
Agreement, except for vacations, holidays and sickness. The Executive may,
however, devote a reasonable amount of his time, in general after the regular
business hours of the Company, to civic, community or charitable activities and,
with the prior written approval of the Board of Directors, to serve as a
director of other corporations and other types of businesses or public
activities not expressly mentioned in this paragraph. The Company hereby
approves the Executive's continuing to serve as a Director of Laguna Medical
Systems, Inc. and Renal Solutions, Inc., and as a Director of and consultant to
Counterpart Capital Corporation, all of which are privately held corporations,
so long as such companies do not engage in a business which is competitive with
the Company's business and so long as such activities do not unreasonably
interfere with the Executive's duties hereunder.
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11. TERMINATION BENEFITS. In the event the Executive's employment
terminates, then the Executive shall be entitled to receive Severance Pay (as
defined below), if any, and other benefits as follows:
(a) SEVERANCE.
(i) INVOLUNTARY TERMINATION WITHOUT CAUSE; RESIGNATION FOR GOOD
REASON; EXPIRATION OF TERM. If Executive's employment with the Company is
terminated (A) during the Term by the Company other than for Cause or
Executive's death or disability or by the Executive for Good Reason or (B) upon
the expiration of the Term, then the Company shall pay the Executive a severance
payment of $180,000 (the "Severance Pay"), which Severance Pay shall be paid to
Executive in periodic installments in accordance with the Company's regular
payroll practices over a period of six (6) months immediately following the date
of termination. In addition to payment of the Severance Pay over the six-month
period, if Executive elects to continue Executive's health insurance benefits
through a COBRA election, the Company shall reimburse Executive each month for
Executive's COBRA expenses for the same six-month period as Severance Pay is
paid to Executive, conditioned only upon Executive providing reasonably
satisfactory proof of payment to Company of such COBRA expenses each month
during the six-month period. Notwithstanding the foregoing, the Executive's
right to receive the Severance Pay and any other monies described in this
subsection during said six-month period shall be subject to the Executive
signing, delivering and abiding by a Separation Agreement and Release,
substantially in the form attached hereto as Exhibit B and incorporated herein
by this reference; and provided, however, that even if Executive satisfies the
foregoing condition precedent to receipt of Severance Pay and other monies
described in this subsection, the Company's obligations hereunder shall cease
upon a breach by the Executive of his obligations under paragraphs 12, 14 and 16
hereof.
(ii) OTHER TERMINATION. In the event the Executive's employment
terminates for Cause or due to Executive's death or disability or Executive's
voluntary resignation (other than for Good Reason), then the Executive shall not
be entitled to receive any Severance Pay or any other benefits, except as may be
provided in the Company's severance and benefit plans and policies at the time
of such termination.
(b) BONUSES. In the event the Executive's employment is terminated
by the Company as described in paragraph 11(a)(i) above, then the Executive
shall be entitled to receive the Restructuring Approval Bonus, and/or the
Restructuring Consummation Bonus if, and to the extent that, the Executive would
have been entitled to receive such Bonuses had his employment not been
terminated. Each Bonus to which the Executive is entitled pursuant to this
paragraph 11(b) shall be paid at the time and in the manner that such Bonus
would have been payable to the Executive had his employment not been terminated.
In the event the Executive's employment terminates for any other reason, then
the Executive shall not be entitled to any Bonus which has not become payable as
of such date.
12. PROPRIETARY INFORMATION. The Executive shall not, without the prior
written consent of the Company, disclose or use for any purpose (except in the
course of his employment under this Agreement and in furtherance of the business
of the Company) any confidential
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information or proprietary data of the Company. As an express condition of the
Executive's employment with the Company, the Executive agrees to execute
confidentiality agreements as requested by the Company, including but not
limited to, the Company's standard form of employee proprietary information
agreement, a form of which is attached hereto as Exhibit C and incorporated
herein by this reference.
13. ABSENCE OF CONFLICT. The Executive represents and warrants that his
employment by the Company as described herein shall not conflict with and will
not be constrained by any prior employment or consulting agreement or
relationship.
14. ARBITRATION. Except as provided in paragraph 16(b)(1), any dispute
or controversy of any kind arising under or in connection with this Agreement
shall be settled exclusively by binding arbitration in Portland, Oregon, in
accordance with the rules of the American Arbitration Association then in effect
by an arbitrator selected by both parties within ten (10) days after either
party has notified the other in writing that it desires a dispute between them
to be settled by arbitration. In the event the parties cannot agree on such
arbitrator within such ten (10) day period, each party shall select an
arbitrator and inform the other party in writing of such arbitrator's name and
address within five (5) days after the end of such ten (10) day period and the
two arbitrators so selected shall select a third arbitrator within fifteen (15)
days thereafter; provided, however, that in the event of a failure by either
party to select an arbitrator and notify the other party of such selection
within the time period provided above, the arbitrator selected by the other
party shall be the sole arbitrator of the dispute. Each party shall pay his or
its own attorneys fee and expenses associated with such arbitration, including
the expense of any arbitrator selected by such party and the Company will pay
the expenses of the jointly selected arbitrator. The decision of the arbitrator
or a majority of the panel of arbitrators shall be binding upon the parties and
judgment in accordance with that decision may be entered in any court having
jurisdiction there over. Punitive damages shall not be awarded.
BY AGREEING TO SUBMIT A DISPUTE OR CONTROVERSY TO ARBITRATION, THE PARTIES
UNDERSTAND THAT THEY WILL NOT ENJOY THE BENEFITS OF A JURY TRIAL. ACCORDINGLY,
THE PARTIES HERETO EXPRESSLY AGREE TO WAIVE THE RIGHT TO A JURY TRIAL.
15. APPLICABLE LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Oregon as applied to agreements between
Oregon residents entered and to be performed entirely within Oregon.
16. CERTAIN COVENANTS OF THE EXECUTIVE.
(a) COVENANTS AGAINST COMPETITION. The Executive acknowledges that
(i) the principal business of the Company and its affiliates involves the
operation of free-standing assisted living residences, primarily located in
small-to-middle market rural and suburban communities, the provision of personal
care and support services to meet the needs of its residents, and other related
businesses which the Company and its affiliates currently operate and which the
Company and its affiliates may become involved with during the Executive's
employment under this Agreement (collectively, the "Company Business"); (ii) the
Company
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Business is national in scope; (iii) the Executive's work for the Company will
bring him into close contact with many confidential affairs not readily
available to the public; and (iv) the Company would not enter into this
Agreement but for the agreements and covenants of the Executive contained
herein. In order to induce the Company to enter into this Employment Agreement,
the Executive covenants and agrees that:
(1) NON-COMPETE. During the time Executive is employed under
this Agreement and for a period of six (6) months following the termination
(whether for cause of otherwise) of the Executive's employment with the Company
or any of its affiliates (the "Restricted Period"), the Executive shall not, in
the United States of America or in any foreign country, directly or indirectly,
(i) engage in the Company Business for his own account; (ii) enter the employ
of, or render any services to, any persons engaged in such activities; or (iii)
become interested in any person engaged in the Company Business, directly or
indirectly, as an individual, partner, shareholder, officer, director,
principal, agent, employee, trustee, consultant or in any other relationship or
capacity; provided, however, that the Executive may own, directly or indirectly,
solely as an investment, securities of any person which are traded on any
national securities exchange or NASDAQ if the Executive (a) is not a controlling
person of, or a member of a group which controls such person or (b) does not,
directly or indirectly, own 1% or more of any class of securities of such
person.
(2) CONFIDENTIAL INFORMATION. During and after the Restricted
Period, the Executive shall keep secret and retain in strictest confidence, and
shall not use for the benefit of himself or others except in connection with the
business and affairs of the Company, all confidential matters of the Company and
its affiliates. Such confidential matters include, without limitation, trade
secrets, customer lists, subscription lists, details of consultant contracts,
pricing policies, operational methods, marketing plans or strategies, product
development techniques or plans, business acquisition plans, new personnel
acquisition plans, designs and design projects, inventions and research projects
of the Company and its affiliates, learned by the Executive heretofore or
hereafter that are sufficiently secret to have the possibility, whether or not
realized, of deriving economic value from not being generally known to other
persons who can obtain economic value from their disclosure or use, and the
Executive shall not disclose them to anyone outside of the Company and its
affiliates, either during or after employment, by the Company or any of its
affiliates, except as required in the course of performing duties hereunder or
with the Company's express written consent. The Executive's obligations pursuant
to this Employment Agreement shall not extend to matters which are within the
public domain or hereafter enter the public domain through no fault or action or
failure to act, whether directly or indirectly, on the part of the Executive.
(3) PROPERTY OF THE COMPANY. All memoranda, notes, lists,
records and other documents (and all copies thereof) made or compiled by the
Executive or made available to the Executive concerning the business of the
Company or any of its affiliates shall be the Company's property and shall be
delivered to the Company promptly upon the termination of the Executive's
employment with the Company or any of its affiliates or at any other time on
request.
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(4) EMPLOYEES OF THE COMPANY. During the Restricted Period, the
Executive shall not, directly or indirectly, hire, solicit or encourage to leave
the employment of the Company or any of its affiliates, any employee of the
Company or its affiliates or hire any such employee who has left the employment
of the Company or any of its affiliates within six (6) months of the termination
of such employee's employment with the Company or any of its affiliates.
(5) CONSULTANTS AND INDEPENDENT CONTRACTORS OF THE COMPANY.
During the Restricted Period, the Executive shall not, directly or indirectly,
hire, solicit or encourage to cease to work with the Company or any of its
affiliates, any consultant, sales representative or other person then under
contract with the Company or any of its affiliates.
(b) RIGHTS AND REMEDIES UPON BREACH. If the Executive breaches, or
threatens to commit a breach of, any of the provisions of Section 16(a) (the
"Restrictive Covenants"), the Company shall have the following rights and
remedies, each of which rights and remedies shall be independent of the other
and severally enforceable, and all of which rights and remedies shall be in
addition to, and not in lieu of, any other rights and remedies available to the
Company under law or in equity.
(1) SPECIFIC PERFORMANCE. The right and remedy to have the
Restrictive Covenants specifically enforced by any court having equity
jurisdiction, it being acknowledged and agreed that any such breach or
threatened breach will cause irreparable injury to the Company and its
affiliates and that money damages will not provide an adequate remedy to the
Company. The Parties further agree that the Company's claim for specific
performance shall not be a claim which is covered by the parties' agreement to
arbitrate as set forth in paragraph 14.
(2) ACCOUNTING. The right and remedy to require the Executive to
account for and pay over to the Company all compensation, profits, monies,
accruals, increments or other benefits (collectively, "Benefits") derived or
received by the Executive as a result of any transactions constituting a breach
of any of the Restrictive Covenants, and the Executive shall account for and pay
over such Benefits to the Company.
(c) SEVERABILITY OF COVENANTS. If any court determines that any of
the Restrictive Covenants, or any parts thereof, are invalid or unenforceable,
the remainder of the Restrictive Covenants shall not thereby be affected and
shall be given full effect, without regard to the invalid portions.
(d) "BLUE-PENCILING". If any court construes any of the Restrictive
Covenants, or any part thereof, to be unenforceable because of the duration of
such provision or the area covered thereby, such court shall have the power to
reduce the duration or area of such provision and, in its reduced form, such
provision shall then be enforceable and shall be enforced.
(e) ENFORCEABILITY IN JURISDICTIONS. The parties intend to and
hereby confer jurisdiction to enforce the Restrictive Covenants upon the courts
of any jurisdiction within the geographical scope of such Restrictive Covenants.
If the courts of any one or more of such
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jurisdictions hold the Restrictive Covenants wholly unenforceable by reason of
the breadth of such scope or otherwise, it is the intention of the parties that
such determination not bar or in any way affect the Company's right to the
relief provided above in the courts of any other jurisdiction within the
geographical scope of such Restrictive Covenants, as to breaches of such
Restrictive Covenants in such other respective jurisdictions, such Restrictive
Covenants as they relate to each jurisdiction being, for this purpose, severable
into diverse and independent covenants.
17. SUCCESSORS. The Company will require any successor (whether direct
or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. Failure of the Company to obtain such assumption agreement
prior to the effectiveness of any such succession shall entitle the Executive to
the Severance Pay described in paragraph 11(a)(i), subject to the terms and
conditions therein.
18. ASSIGNMENT. This Agreement and all rights under this Agreement shall
be binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective personal or legal representatives, executors,
administrators, heirs, distributees, devisees, legatees, successors and assigns.
This Agreement is personal in nature, and, except as provided in paragraph 17
hereof, neither of the parties to this Agreement shall, without the written
consent of the other, assign or transfer this Agreement or any right or
obligation under this Agreement to any other person or entity. If the Executive
should die while any amounts are still payable to the Executive hereunder, all
such amounts, unless otherwise provided herein, shall be paid in accordance with
the terms of this Agreement to the Executive's devisee, legatee, or other
designee or, if there be no such designee, to the Executive's estate.
19. NOTICES. For purposes of this Agreement, notices and other
communications provided for in this Agreement shall be in writing and shall be
delivered personally or sent by United States certified mail, return receipt
requested, postage prepaid, addressed as follows:
If to the Executive: W. Xxxxx Xxxxx
c/o Assisted Living Concepts, Inc
00000 XX Xxxxx Xxxxxx Xxxxx, Xxxx. X.
Xxxxxxxx, Xxxxxx 00000-0000
If to the Company: Assisted Living Concepts, Inc.
00000 XX Xxxxx Xxxxxx Xxxxx, Xxxx. X.
Xxxxxxxx, Xxxxxx 00000-0000
Attention: Xxxxxx Xxxxxxxx
Senior Vice President and General Counsel
with a copy to: Xxxx X. Xxxxxx
Chief Financial Officer
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or to such other address or the attention of such other person as the recipient
party has previously furnished to the other party in writing in accordance with
this paragraph. Such notices or other communications shall be effective upon
delivery or, if earlier, three (3) days after they have been mailed as provided
above.
20. WAIVER. Failure or delay on the part of either party hereto to
enforce any right, power or privilege hereunder shall not be deemed to
constitute a waiver thereof. Additionally, a waiver by either party of a breach
of any promise hereof by the other party shall not operate as or be construed to
constitute a waiver of any subsequent breach by such other party.
21. SEVERABILITY. Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective, valid and enforceable
under applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability will
not affect any other provision or any other jurisdiction, but this Agreement
will be reformed, construed and enforced in such jurisdiction as if such
invalid, illegal or unenforceable provision had never been contained herein.
22. RIGHT TO ADVICE OF COUNSEL. The Executive acknowledges that he has
consulted with counsel and is fully aware of his rights and obligations under
this Agreement.
23. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, none of which need contain the signature of more than one party
hereto, and each of which shall be deemed to be an original, and all of which
together shall constitute a single agreement,
24. FACSIMILE TRANSMISSION AND SIGNATURES. Facsimile transmission of any
signed original document, and retransmission of any signed facsimile
transmission, shall be the same as delivery of an original document. At the
request of either party, the parties will confirm facsimile transmitted
signatures by signing an original documents.
25. INTEGRATION. This Agreement represents the final and entire
agreement and understanding between the parties as to the subject matter hereof
and supersedes all prior or contemporaneous agreements whether written or oral.
No waiver, alteration or modification of any of the provisions of this Agreement
shall be binding unless in writing and signed by duly authorized representatives
of the parties hereto.
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IN WITNESS WHEREOF, each of the parties has executed this Agreement, in
the case of the Company by its duly authorized officer, on the day set opposite
its name below.
Date Agreement Executed "COMPANY"
________________, 2001 By: _______________________________________
Xxxx X. Xxxxxx, Senior Vice President
and Chief Financial Officer
________________, 2001 By: _______________________________________
Xxxx X. Xxxxxxx, Member of the
Compensation Committee of the
Board of Directors
"EXECUTIVE"
________________, 2001 ___________________________________
Wm. Xxxxx Xxxxx
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EXHIBIT A
INDEMNIFICATION AGREEMENT
This INDEMNIFICATION AGREEMENT is made and entered into as of the ____
day of __________, 200__ by and between _______________ ("Indemnitee") and
Assisted Living Concepts, Inc. a Nevada corporation and its affiliates
(collectively, the "Company").
RECITALS
A. The Company has recognized the difficulty that publicly held
corporations are having in attracting and retaining qualified directors,
officers and key employees as a result of the increasing risk of claims and
actions against them arising out of their association with the Company.
B. Indemnitee is an officer, director and/or key employee of the
Company.
C. Indemnitee is willing to serve, to continue to serve and to take on
additional service for or on behalf of the Company.
D. In view of the mutual desire of the parties that Indemnitee render
valuable services to the Company, the parties have agreed to enter into this
Indemnification Agreement.
THEREFORE IT IS AGREED:
1. Definitions. The following definitions shall apply to this Agreement:
1.1 "Act" shall be the Nevada Corporation Act, NRS Sections
78.010-.795, and all amendments thereto hereinafter enacted.
1.2 "Expenses" shall include, without limitation, expenses of
investigations, judicial or administrative proceedings or appeals and attorneys'
fees and disbursements and any expenses of establishing a right to
indemnification under this Agreement.
1.3 "Liability" means the obligation to pay a judgment, settlement,
penalty, fine, including an excise tax assessed with respect to an employee
benefit plan, or reasonable Expenses incurred with respect to a Proceeding.
1.4 "Party" includes an individual who was, is or is threatened to be
made a named defendant or respondent in a proceeding.
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1.5 "Proceeding" means any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative and
whether formal or informal.
2. Indemnification. The Company shall indemnify Indemnitee against
Liability and Expenses actually and necessarily incurred by him or her in any
Proceeding in which he or she is made a Party by reason of being or having been
a director, officer or key employee of the Company, except in relation to
matters as to which indemnification is prohibited by the Act; but such
indemnification shall not be deemed exclusive of any other rights to which
Indemnitee may be entitled under any bylaw or agreement of the Company, general
or specific action of the Company's board of directors, vote of the Company's
shareholders or otherwise.
3. Procedure for Indemnification. After the final disposition of any
Proceeding in which Indemnitee may be entitled to indemnification pursuant to
this Agreement, Indemnitee may send to the Company a written request for
indemnification. The Company shall, in accordance with the provisions of the Act
regarding determination and authorization of indemnification, make a finding
whether the indemnification requested is permitted by the laws of the state of
Nevada no later than 60 days following receipt by the Company of such request.
The Company shall cause the indemnification requested to be authorized and paid
unless the Company finds that the indemnification requested is not so permitted.
Indemnitee shall be given an opportunity to be heard and to present evidence in
connection with the consideration of the party or parties determining
Indemnitee's right to indemnification under the Act. If the Company does not
authorize indemnification hereunder, Indemnitee shall have the right to seek
court-ordered indemnification in accordance with the provisions of the Act. In
any such action, neither the making of, nor the failure to make, any finding by
the Company that indemnification of the Indemnitee is proper or not proper in
the circumstances shall be a defense to such action or create a presumption that
the Indemnitee has not met the standard of conduct required by the Act. In
making its determination and in any court proceeding, the Company shall have the
burden of proving that Indemnitee has not met the standard of conduct required
by the Act to entitle Indemnitee to indemnification.
4. Procedure for Advancement of Expenses. The Company shall pay for or
reimburse the reasonable Expenses incurred by Indemnitee as a result of being
Party to a Proceeding in advance of final disposition of the Proceeding promptly
upon receipt of a written request for payment of such Expenses that is in
accordance with the requirements of the Act for such written statements. Such
written statement shall also include or be accompanied by documentation of the
Expenses incurred certified true and correct by Indemnitee. When available, such
documentation of expenses shall include copies of bills or statements evidencing
the Expenses incurred. If the requirements of this Section 4 are met, the
Company shall pay the amount requested promptly notwithstanding the absence of a
final disposition of the Proceeding.
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5. Partial Indemnity. If Indemnitee is entitled under any provision of
this Agreement to indemnification by the Company for some or a portion of the
Expenses or Liability incurred by Indemnitee in the preparation, investigation,
defense, appeal or settlement of any Proceeding but not, however, for the total
amount thereof, the Company shall indemnify Indemnitee for the portion of such
Expenses or Liability to which Indemnitee is entitled in accordance with this
Agreement.
6. Insurance. The Company may, but shall not be required to, purchase
and keep in force during the term of this Agreement a policy or policies of
liability insurance on behalf of Indemnitee against Liability and Expenses
incurred in any Proceeding. Nothing herein shall be construed to prohibit
Indemnitee from maintaining his or her own policy of liability insurance.
7. Exclusions. The Company shall not be liable to make any payment
hereunder:
7.1 If it shall be finally adjudicated that such payment is
prohibited by law;
7.2 On account of any Proceeding brought under Section 16(b) of the
Securities Exchange Act of 1934, as such law is amended from time to time, or
under any similar law that replaces Section 16(b), in which judgment is rendered
against Indemnitee for an accounting for profits made from the purchase or sale
by Indemnitee of the securities of the Company;
7.3 For Liability or Expenses in any Proceeding brought by Indemnitee
against the Company unless (i) the Proceeding is brought as a Proceeding for
indemnity under this Agreement, (ii) Indemnitee is successful in whole or in
part in a Proceeding or (iii) the indemnification is included in a settlement of
the Proceeding or is awarded by a court;
7.4 To the extent payment is actually made to Indemnitee under a
valid, enforceable and collectible insurance policy, whether provided by the
Company or by Indemnitee (the "Insurance Policy"), by or out of a fund created
by the Company and under the control of a trustee or otherwise (the "Fund") or
from other sources provided by the Company ("Other Sources"); or
7.5 For amounts paid in settlement of a claim effected without the
Company's prior written consent, which consent shall not be unreasonably
withheld.
If Indemnitee shall become obligated or required to pay any amount that the
Company would be obligated to pay hereunder except for the exclusion in Section
7.4, the Company shall advance such amount to Indemnitee if payment is not
reasonably expected to be made under the Insurance Policy, by the Fund or from
Other Sources prior to the time that Indemnitee must make such payment,
provided, however, that Indemnitee shall
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immediately pay over to the Company, from the funds Indemnitee later receives
under the Insurance Policy, from the Fund or from Other Sources, an amount equal
to the amount advanced.
8. Defense of Claim. If any Proceeding asserted or commenced against
Indemnitee is also asserted or commenced against the Company, the Company shall
be entitled to participate in the Proceeding at its own expense and, except as
otherwise provided herein below, to the extent that it may wish the Company
shall be entitled to assume the defense thereof. After notice from the Company
to Indemnitee of its election to assume the defense of any such Proceeding,
Indemnitee shall have the right to employ Indemnitee's own counsel in such
Proceeding, but the Expenses of such counsel incurred after notice from the
Company to Indemnitee of its assumption of the defense thereof shall be the
Expenses of Indemnitee, and the Company may not be obligated to Indemnitee under
this Agreement for any Expenses subsequently incurred by Indemnitee in
connection therewith other than the reasonable costs of investigation, travel
and lodging Expenses arising out of Indemnitee's participation in the defense of
such Proceeding unless (i) otherwise authorized by the Company, (ii)
Indemnitee's counsel shall have reasonably concluded, and so notified the
Company in writing, that there may be a conflict of interest between the Company
and Indemnitee in the conduct of the defense of such Proceeding or (iii) the
Company shall not in fact have employed counsel to assume the defense of such
Proceeding. If the Company may be obligated for some or all of the Expenses of
Indemnitee under this Section 8, the determination of Indemnitee's entitlement
to indemnification shall be made in accordance with Section 3.
9. Change in Control.
9.1 The Company agrees that, if there is a Change in Control (as
hereinafter defined) of the Company, then with respect to all matters thereafter
arising concerning the rights of Indemnitee to indemnification and Expense
advances under this Agreement, the Company shall seek legal advice only from
special, independent counsel selected by the Company with the consent of
Indemnitee, which consent shall not be unreasonably withheld, with respect to
matters arising out of this Agreement, including but not limited to the right of
Indemnitee to indemnification hereunder. Such counsel shall, among other things,
render its written opinion to the Company and Indemnitee as to whether and to
what extent Indemnitee would be permitted to be indemnified under the Act and as
to the amount of reasonable indemnification. Such written opinion shall be
binding upon the Company and Indemnitee. The Company shall agree to pay the
reasonable fees of such special counsel and to indemnify fully such counsel
against any and all expenses, including attorney fees, claims, liabilities and
damages arising out of or relating to this Agreement or its engagement pursuant
hereto.
9.2 For the purpose of this Section 9, a "Change in Control" shall be
deemed to have occurred if:
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9.2.1 Any "person," as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934 (the "1934 Act"), other than a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company or a corporation owned, directly or indirectly, by the stockholders
of the Company in substantially the same proportion as their ownership of the
Company, becomes the "Beneficial Owner," as defined in Rule 13d-3 under the 1934
Act, directly or indirectly, of securities of the Company representing
twenty-five percent (25%) or more of the combined voting power of the Company's
then outstanding voting securities ("Voting Stock");
9.2.2 During any period of twenty-four (24) consecutive months,
not including any period prior to the execution of this Agreement, individuals
who at the beginning of such period constitute the board of directors of the
Company and any new director, other than a director designated by a person who
has entered into an agreement with the Company to effect a transaction described
in Section 9.2.1 or 9.2.3, whose election was approved by a vote of at least
two-thirds (2/3rds) of the shares entitled to vote, cease for any reason to
constitute a majority of the board; or
9.2.3 The stockholders of the Company (i) approve a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation that would result in the Voting Stock outstanding immediately
prior thereto continuing to represent, either by remaining outstanding or by
being converted into Voting Stock of the surviving entity, at least seventy
percent (70%) of the combined voting power of the Voting Stock of the Company or
such surviving entity outstanding immediately after such merger or
consolidation, (ii) approve a plan of complete liquidation of the Company or
(iii) approve an agreement for the sale or disposition by the Company of all or
substantially all of the Company's assets.
10. Potential Change in Control.
10.1 In the event of a Potential Change in Control (as hereinafter
defined), the Company shall, upon written request by Indemnitee, create a trust
(the "Trust") for the benefit of Indemnitee and from time to time upon written
request of Indemnitee shall fund the Trust in an amount sufficient to satisfy
any and all Expenses reasonably anticipated at the time of each such request to
be incurred in connection with investigating, preparing for and defending any
Proceeding for which Indemnitee may be entitled to indemnification under this
Agreement, and any and all Liability for which Indemnitee is entitled to
indemnification hereunder from time to time actually paid, reasonably
anticipated or proposed to be paid. The amount or amounts to be deposited in the
Trust pursuant to the foregoing funding obligations shall be determined in
accordance with the provisions of the Act with regard to determination and
authorization of indemnification.
10.2 The terms of the Trust shall provide that upon a Change in
Control:
10.2.1 The Trust shall not be revoked or the principal thereof
invaded without the prior written consent of Indemnitee;
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10.2.2 The trustee of the Trust (the "Trustee") shall advance,
within two (2) business days of a written request by Indemnitee in accordance
with the requirements of Section 4, any and all Expenses to Indemnitee, and
Indemnitee hereby agrees to reimburse the Trust under the circumstances under
which Indemnitee would be required to reimburse the Company pursuant to the Act
and Section 4;
10.2.3 The Trust shall continue to be funded by the Company in
accordance with the funding obligation set forth above;
10.2.4 The Trustee shall promptly pay to Indemnitee all amounts
for which Indemnitee shall be entitled to indemnification pursuant to this
Agreement or otherwise; and
10.2.5 All unexpended funds in the Trust shall revert to the
Company upon a final determination by the special counsel established in
accordance with Section 9 or a court of competent jurisdiction, as the case may
be, that Indemnitee has been fully indemnified under the terms of this
Agreement.
10.3 The Trustee shall be selected by Indemnitee with the consent of
the Company, which consent shall not be unreasonably withheld, and all
reasonable expenses, fees and other disbursements of the Trustee in connection
with the establishment and administration of the Trust shall be paid by the
Company.
10.4 Nothing in this Section 10 shall relieve the Company of any of
its obligations under this Agreement.
10.5 A "Potential Change in Control" shall be deemed to have
occurred if: (i) the Company enters into an agreement, the consummation of which
would result in the occurrence of a Change in Control; (ii) any person,
including the Company, publicly announces an intention to take or to consider
taking actions that, if consummated, would constitute a Change in Control; (iii)
any person, other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or a corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company, who is or becomes the
beneficial owner, directly or indirectly, of stock of the Company representing
nine and one-half percent (9.5%) or more of the combined voting power of the
Company's then outstanding Voting Stock, increases his or her beneficial
ownership of such stock by five (5) percentage points or more over the
percentage so owned by such person; or (iv) the board of directors adopts a
resolution to the effect that, for purposes of this Agreement, a Potential
Change in Control has occurred.
11. Nonexclusivity and Continuation of Rights. The indemnification
provided by this Agreement shall not be deemed exclusive of any other rights
consistent with the laws of the state of Nevada to which Indemnitee may be
entitled under the Company's articles of
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incorporation, bylaws or any other agreement, vote of shareholders or otherwise,
both as to action in Indemnitee's official capacity and as to action in another
capacity while holding office or while employed by or acting as agent for the
Company, and shall continue notwithstanding that Indemnitee may have ceased to
be connected with the Company.
12. Heirs, Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the heirs, successors and assigns of the Company and
Indemnitee.
13. Severability. Wherever possible, each provision in this Agreement
shall be interpreted in such manner as to be effective and valid under the laws
of the state of Nevada, but if any provision of this Agreement shall be
invalidated by any court of competent jurisdiction, such provision shall be
ineffective only to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.
14. Subrogation. In the event of payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all documents required and shall do
all acts necessary to secure such rights, including the execution of such
documents necessary to enable the Company effectively to bring suit to enforce
such rights.
15. Modification and Amendment. No amendment, modification, termination
or claimed waiver of any of the provisions hereof shall be valid unless in
writing and signed by both of the parties hereto.
16. Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if
delivered by hand and receipted for by the party to whom said notice or other
communication shall have been directed or mailed by certified or registered mail
with postage prepaid, on the third business day after the date on which it is so
mailed:
If to Indemnitee: If to the Company:
Wm. Xxxxx Xxxxx Assisted Living Concepts, Inc.
000 Xxxxx Xxxxxx Attn: General Counsel
Xxxx Xxxxx, XX 00000 00000 XX Xxxxx Xxxxxx Xxxxx, Xxxx X
Xxxxxxxx, XX 00000
or to such other address as may have been furnished to the other party.
17. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the state of Nevada.
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00. Counterparts. This Agreement may be executed in one or more separate
counterparts, each of which, once they are executed, shall be deemed to be an
original. Such counterparts shall be and constitute one and the same instrument.
19. Facsimile Transmission and Signatures. Facsimile transmission of any
signed original document, and retransmission of any signed facsimile
transmission, shall be the same as delivery of an original document. At the
request of either party, the parties will confirm facsimile transmitted
signatures with an original document.
IN WITNESS WHEREOF, the parties hereto have executed this
Indemnification Agreement as of the date first hereinabove written.
INDEMNITEE Assisted Living Concepts, Inc.
a Nevada corporation
_________________________ By____________________________
Wm. Xxxxx Xxxxx Title:
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EXHIBIT B
FORM OF SEPARATION AGREEMENT AND RELEASE
This Separation Agreement and Release ("AGREEMENT") is made and entered
into as of this _____ day of ______________, ______, by and between Assisted
Living Concepts, Inc. and one or more of its Affiliates (collectively,
"COMPANY"), and ______________________ ("EMPLOYEE") in order to provide the
terms and conditions of Employee's termination of employment, to fully and
completely resolve any and all issues that Employee may have in connection with
Employee's employment with Company or the termination of that employment, and to
promote an amicable long-term relationship between Company and Employee.
In consideration of the mutual promises and conditions contained herein,
the parties agree as follows:
1. Separation. Employee has been [is currently] employed at Company as
Employee. Employee shall have no further job responsibilities at Company
_______________ and Employee's employment shall be terminated effective as of
such date.
2. Payment to Employee. Pursuant to the Employment Agreement entered
into between the parties and subject to certain conditions precedent set forth
therein, Company agrees to provide a Severance Amount to Employee and
reimbursement of COBRA expenses (if any) for a six-month period, as set forth in
paragraph 11(a)(i) of the Employment Agreement; provided, however, that Employee
must execute and not revoke this Agreement.
3. Release of Claims. In return for the benefits conferred under the
Employment Agreement and this Agreement (which Employee acknowledges Company has
no legal obligation to provide if Employee does not enter into this Agreement),
Employee, on behalf of Employee and Employee's heirs, executors, administrators,
successors and assigns, hereby releases and forever discharges Company and its
past, present and future affiliates, future parent companies, subsidiaries,
predecessors, successors and assigns, and each of their past, present and future
shareholders, officers, directors, employees, agents and insurers, from any and
all claims, actions, causes of action, disputes, liabilities or damages, of any
kind, which may now exist or hereafter may be discovered, specifically
including, but not limited to, any and all claims, disputes, actions, causes of
action, liabilities or damages, arising from or relating to Employee's
employment with Company, or the termination of such employment, except for any
claim for payment or performance pursuant to the terms of this Agreement. This
release includes, but is not limited to, any claims that Employee might have for
reemployment or reinstatement or for additional compensation or benefits and
applies to claims that Employee might have under either federal, state or local
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law dealing with employment, contract, tort, wage and hour, or civil rights
matters, including, but not limited to, Title VII of the Civil Rights Act of
1964, the Age Discrimination in Employment Act, the Americans with Disabilities
Act, the Family and Medical Leave Act, similar state laws, and any regulations
under such laws. This release shall not affect any accrued rights Employee may
have under any medical insurance, workers compensation or retirement plan
because of Employee's prior employment with Company. EMPLOYEE ACKNOWLEDGES AND
AGREES THAT THROUGH THIS RELEASE EMPLOYEE IS GIVING UP ALL RIGHTS AND CLAIMS OF
EVERY KIND AND NATURE WHATSOEVER, KNOWN OR UNKNOWN, CONTINGENT OR LIQUIDATED,
THAT EMPLOYEE MAY HAVE AGAINST COMPANY AND THE OTHER PERSONS NAMED ABOVE, EXCEPT
FOR THE RIGHTS SPECIFICALLY EXCLUDED ABOVE.
4. Confidentiality. Employee agrees to keep this Agreement and each of
its terms, including without limitation the Severance Amount, and the fact that
Employee has received such Amount, strictly confidential. Employee may only
disclose the terms of this Agreement only to Employee's attorney or accountant,
or as required by law. Employee understands that Company may be required to
publicly disclose the terms of this Agreement.
5. No Disparagement. Employee shall not make any disparaging or
derogatory remarks of any nature whatsoever about Company, its officers,
directors or employees, or its services and/or products (if any), either
publicly or privately, unless required to do so by law.
6. No Admission of Liability. This Agreement shall not be construed as
an admission of liability or wrongdoing by Company because no admission is
intended. Employee understands and agrees that this Agreement shall not be
offered as evidence by Employee in any proceeding, whether administrative or
otherwise.
7. Employment Agreement. Employee reaffirms Employee's acknowledgements
and obligations under paragraph 16 of the Employment Agreement executed by
Employee in conjunction with Employee's employment at Company. The terms of such
Employment Agreement are incorporated herein by this reference. Employee agrees
to strictly comply with the terms of the Employment Agreement.
8. Return of Property. Employee agrees to and hereby represents that
Employee has returned to Company all of Company's property and all materials
containing confidential information of Company that were in Employee's
possession or under Employee's control.
9. Miscellaneous.
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9.1 Final and Entire Agreement. This document constitutes the
entire, final, and complete agreement and understanding of the parties
with respect to the subject matter hereof and supersedes and replaces
all written and oral agreements and understandings heretofore made or
existing by and between the parties or their representatives with
respect thereto, other than the Employment Agreement executed between
the parties. There have been no representations or commitments by
Company to make any payment or perform any act other than those
expressly stated herein.
9.2 Waiver. No waiver of any provision of this Agreement shall be
deemed, or shall constitute a wavier of any other provision, whether or
not similar, nor shall any waiver constitute a continuing waiver. No
waiver shall be binding unless executed in writing by the parties making
the waiver.
9.3 Binding Effect. All rights, remedies, and liabilities herein
given to or imposed upon the parties shall extend to, inure to the
benefit of and bind, as the circumstances may require, the parties and
their representative heirs, personal representatives, administrators,
successors and assigns.
9.4 Amendment. No supplement, modification or amendment of this
Agreement shall be valid, unless the same is in writing and signed by
both parties.
9.5 Attorneys Fees. If it becomes necessary to enforce this
Agreement, or any part hereof, the prevailing party shall be entitled to
recover its reasonable attorney fees and costs incurred therein,
including all attorneys fees and costs on appeal and otherwise.
9.6 Governing Law. This Agreement and the rights of the parties
hereunder shall be governed, construed and enforced in accordance with
the laws of the State of Oregon, without regard to its conflict of law
principles. Any suit or action arising out of or in connection with this
Agreement, or any breach hereof, shall be brought and maintained in the
Circuit Court of the State of Oregon for the County of Multnomah. The
parties hereby irrevocably submit to the jurisdiction of such court for
the purpose of such suit or action and hereby expressly and irrevocably
waive, to the fullest extent permitted by law, any claim that any such
suit or action has been brought in an inconvenient forum.
9.7 Employee Given 21 Days to Consider Agreement. Employee
acknowledges that Company advised Employee in writing to consult with an
attorney before signing this Agreement and that Employee has had at
least 21 days to consider whether to execute this Agreement.
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9.8 Revocation. Employee may revoke this Agreement by written
notice delivered to the President or Chief Executive Officer of the
Company within seven (7) days following the date Employee signed the
Agreement. If not revoked under the preceding sentence, this Agreement
becomes effective and enforceable after the seven-day period has
expired.
EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE HAS FREELY AND VOLUNTARILY EXECUTED THIS
AGREEMENT, WITH A COMPLETE UNDERSTANDING OF ITS TERMS AND PRESENT AND FUTURE
EFFECTS.
"EMPLOYEE" ASSISTED LIVING CONCEPTS, INC. on behalf
of itself, and the Affiliated Companies
______________________________ By: ____________________________________
Title: _________________________________
Date:_______________________ Date:___________________________________
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EXHIBIT C
EMPLOYEE NON-DISCLOSURE OF CONFIDENTIAL INFORMATION
During the term of Employee's employment and afterwards, unless authorized in
writing by Assisted Living Concepts, Inc. and its affiliates, herein known as
"Company," Employee shall not disclose any Confidential Information, defined
below, to any person nor shall Employee use Confidential Information for any
purpose at any time, except for the purpose of performing Employee's job duties
on behalf of or as directed by the Company.
All Confidential Information which comes into Employee's possession or is
generated by Employee during Employee's employment by the Company shall be and
remain the exclusive property of the Company, and Employee agrees to return all
such documents and tangible property of the Company on termination of Employee's
employment or at such earlier time as the Company may request.
Information received by Employee shall not be considered Confidential
Information to the extent that (i) the information, as shown by competent
evidence, was already known to Employee from sources outside of the Company at
the time Employee received it from the Company; or (ii) the information is or
becomes, through no fault of Employee, general knowledge in the public domain.
The term "Confidential Information" shall be deemed to include, but shall not be
limited to, the profiles and demographics of residents in the Companies
facilities, costs of care, employee matters, and compliance issues, as well as
the architectural plans and specifications, methods, techniques, financing,
formats, specifications, procedures, business and financial information, systems
and knowledge of and experience in the operation and/or franchising of assisted
living residences, all of which may hereafter be improved, further developed, or
otherwise modified by Company from time to time.
Employee acknowledges and agrees that any breach of the covenants and agreements
contained in this Agreement will cause irreparable injury to Company for which
there is and shall be no adequate remedy at law. Accordingly, Employee hereby
consents to the issuance by any court of competent jurisdiction of an injunction
in favor of Company enjoining any such breach or violation of the covenants or
agreements contained herein; provided, that no request for or receipt of any
such injunction by Company shall be considered an election of remedies or waiver
of any right to assert any other remedies Company may have against Employee,
either at law or in equity.
_____________________, 2000 ______________________________
Date Wm. Xxxxx Xxxxx
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