EXHIBIT 10.44
SETTLEMENT AGREEMENT
This is a Settlement Agreement (the "Agreement") dated as of July 6,
2000 by and among Select Medical Corporation, a Delaware corporation ("Select"),
NC Resources, Inc., a Delaware corporation ("NCR"), NAHC, Inc. (f/k/a/ NovaCare,
Inc.), a Delaware corporation ("NAHC"), and NovaCare Holdings, Inc., a Delaware
corporation and a wholly-owned indirect subsidiary of NAHC ("NH").
Background
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Select, NCR and NAHC entered into the Stock Purchase Agreement dated
as of October 1, 1999, as amended (the "SPA"). Capitalized terms used but not
defined herein shall have the meanings ascribed to them in the SPA. The parties
are in dispute over various claims in connection with the SPA. LDN Stuyvie
Partnership, a partnership organized under the laws of Oklahoma ("LDN") has made
certain allegations against Select in connection with the SPA including
allegations relating to NAHC's and NCR's authority to enter into the SPA. The
parties hereto have negotiated a settlement with respect to such claims and now
desire to memorialize such settlement.
Terms
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A. Agreement Between Select and NCR.
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NOW, THEREFORE, in consideration of the mutual covenants contained
herein and intending to be legally bound hereby, Select and NCR agree as
follows:
1. Earn-Out Escrow. Select and NCR hereby agree that all of the
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money, including all of the principal and interest earned in the Earn-Out Escrow
Account, held in the Earn-Out Escrow Account shall immediately be released to
Select.
2. Escrow. Select and NCR hereby agree that all of the money held in
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the Escrow Account shall immediately be released as follows: (a) Select shall be
paid $24,577,577.30, (b) NCR shall be paid $4,340,753.49, and (c) the balance of
the monies in the Escrow Account, representing interest earned on the monies in
the Escrow Account, shall be paid to and divided between Select and NCR, as
follows: (i) 82.64% to Select and (ii) 17.36% to NCR.
3. Instructions to Escrow Agent. Concurrently with the execution of
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this Agreement, Select and NCR shall deliver to the Escrow Agent irrevocable
joint instructions in the form set forth on Exhibit A hereto to give effect to
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Article A, Sections 1 and 2 of this Agreement.
B. Agreement Among Select, NAHC and NCR.
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NOW, THEREFORE, in consideration of the mutual covenants contained
herein and intending to be legally bound hereby, the parties hereto agree as
follows:
1. Certain Obligations of NAHC and NCR.
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▇. ▇▇▇▇▇▇▇▇▇. NAHC and NCR shall pay to Select an aggregate of
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$1,350,000 in satisfaction of their obligations under Sections 8.10(d) and
8.10(e) of the SPA. Such amount shall be paid by wire transfer of immediately
available funds to Select's account as set forth on Exhibit B hereto, as
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follows:
Date Amount
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October 2, 2000 $ 450,000
December 1, 2000 $ 450,000
January 2, 2001 $ 450,000
b. Columbia\Georgia Physical Therapy Joint Venture. NAHC and
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NCR shall pay to Select an aggregate of $350,000 in satisfaction of their
obligations under Section 8.26 of the SPA. Such amount shall be paid by wire
transfer of immediately available funds to Select's account as set forth on
Exhibit B on or before October 16, 2000.
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c. Ohio "Wedge" Audit. NAHC and NCR shall pay to Select an
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aggregate of $250,000 in satisfaction of their obligations for damages sustained
by Select and/or its subsidiaries in connection with the Ohio "Wedge" Audit
referred to in Schedule 2.15 of the SPA. Such amount shall be paid by wire
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transfer of immediately available funds to Select's account as set forth on
Exhibit B on or before October 16, 2000.
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d. Transition Services. The parties acknowledge that NAHC has
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paid to Select an aggregate of $89,790.30 in satisfaction of all of the
obligations, as such reconciliation of obligations is set forth in the letter
dated June 26, 2000 from NAHC to Select and the letter dated June 30, 2000 from
Select to NAHC, both attached hereto as Exhibit C (the "Letters"), under the
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Transition Services Agreement dated as of November 19, 1999 by and between NAHC
and Select. Each party agrees to pay each vendor the amount such party has been
credited for paying such vendor in calculating the reconciliation described in
the Letters.
NAHC and NCR shall reimburse Select for all costs and expenses, including
reasonable attorney's fees, of enforcing Select's rights under this Section 1.
2. Security Interest.
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▇. ▇▇▇▇▇ of Security Interest.
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(1) As security for the full, prompt and complete payment
and performance of NAHC's and NCR's obligations under Article B, Section 1(a),
including all costs, expenses and liabilities (including, without limitation,
reasonable attorneys' fees) that may be incurred or advances that may be made by
Select in any way in connection with NAHC's, NH's and NCR's obligations, or with
respect to the enforcement thereof, or any collateral security therefor, NAHC,
NCR and NH hereby grant to Select a security interest under the Pennsylvania
Uniform Commercial Code, as amended, under the Delaware Uniform Commercial Code,
as amended, and under any other applicable law, in and to any and all of NAHC's,
NCR's and NH's accounts receivable, Medicare indemnification receivables or
general intangibles, all
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proceeds and products thereof and all parts thereof and all accessions thereto
(collectively, the "Collateral"), and hereby pledges and assigns to Select all
of their right, title and interest in and to the Collateral. If, at any time,
the Collateral shall be evidenced by a promissory note or other instrument or
chattel paper, NAHC, NCR and NH shall deliver and pledge to Select such note,
instrument or chattel paper duly indorsed and accompanied by duly executed
instruments of transfer or assignment, all in form and substance satisfactory to
Select.
(2) Attached hereto as Exhibit D is a chart from NAHC's Form 10-
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Q, dated as of March 31, 2000, indicating that NAHC's long term care services
accounts receivable, net of reserves, were recorded on NAHC's books at
$17,326,000 and that Medicare indemnification receivables, net of reserves, were
recorded on NAHC's books at $11,051,000. Certain notes receivable, totaling
approximately $3,000,000, are included within the foregoing accounts receivable
and Medicare indemnification receivables; such notes receivable, totaling
approximately $3,000,000, have been pledged to a third party and, therefore, are
not included herein as Collateral. NAHC does not make any representations or
warranties as to the collectability of its accounts receivable.
b. Representations, Warranties and Covenants.
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(1) NAHC, NCR and NH are the sole beneficial owners of the
Collateral, no lien, security interest, encumbrance or other right, title or
interest of any other person exists or will exist upon such Collateral at any
time, except for the security interest in favor of Select, which security
interest shall, upon the filing of financing statements by NAHC, NCR and NH as
required hereunder or possession of Collateral which is required for perfection,
constitute a first priority perfected security interest in and to the
Collateral. NAHC, NCR and NH shall not sell, transfer, mortgage or otherwise
encumber any of the Collateral. The locations of the principal places of
business of NAHC, NCR and NH, and the offices where their books and records are
kept concerning the Collateral are set forth on Exhibit E hereto, and NAHC, NCR
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and NH will not change such principal places of business or the location of its
books and records without providing at least 30 days' prior written notice to
Select. Except for the filing of the financing statements as required hereunder,
no authorization, approval or other action by, and no notice to or filing with
any governmental authority or regulatory body is required either for (a) the
grant by NAHC, NCR and NH of the security interest granted hereby or for the
execution, delivery or performance of this Agreement by them, or (b) the
perfection of or the exercise by Select of its rights and remedies hereunder.
(2) As of the time any Collateral becomes subject to the security
interest provided for hereby, each of NAHC, NCR and NH hereby warrants, or shall
be deemed to warrant, that such Collateral and all papers and documents relating
thereto are genuine and in all respects what they purport to be; that such
Collateral is valid and subsisting and arises out of a bona fide sale of goods
sold and delivered by NAHC, NCR and NH to, or in the process of being delivered
to, or out of and for services theretofore actually rendered by NAHC, NCR and NH
to the account debtor named therein; that the amount represented as owing is the
correct amount actually owing from the account debtor, is not subject to any
setoffs or deductions (other than normal trade discounts) or any counter-claim
or other defense on the part of such account debtor; that no such Collateral is
evidenced by any note unless such instrument or chattel paper has theretofore
been endorsed and delivered to the Select; and that no surety bond was required
or given in connection with said Collateral or the contracts or purchase orders
out of which the same arose.
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c. Recording and Maintenance of Lien.
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(1) NAHC, NCR and NH will, forthwith, upon the execution and
delivery of this Agreement and thereafter from time to time, cause all required
financing statements to be filed, registered and recorded in such manner and in
such places as shall be necessary or desirable or as Select may request, to
publish notice of and fully protect the lien thereof as it relates to the
Collateral, and to continue such protection, refile, reregister and rerecord
whenever necessary, and from time to time upon the request of Select will
perform or cause to be performed any other act as provided by law and will
execute or cause to be executed any and all further instruments for such
publication and protection. Without limiting the foregoing, NAHC, NCR and NH
hereby authorizes Select to file one or more financing or continuation
statements, and amendments thereto, relative to all or any part of the
Collateral without the signature of NAHC, NCR and NH where permitted by law. A
carbon, photographic or other reproduction of this Agreement or any financing
statement covering the Collateral or any part thereof shall be sufficient as a
financing statement where permitted by law.
(2) NAHC, NCR and NH shall (i) pay all filing, registration and
recording taxes and fees and any federal, or state taxes, duties, imposts,
assessments and charges arising out of or in connection with any financing,
continuation or termination statements and the security interests created
hereby, (ii) sign and execute alone, or with Select, any financing statement or
renewal, substitution or correction thereof, (iii) at its sole expense, procure
any consents or documents and pay all incidental costs, and (iv) take any acts
deemed necessary or desirable by Select, in each case, to protect the security
interests of Select under this Agreement against the rights or interests of
third parties or to carry into effect the purposes of this Agreement. NH hereby
further agree to do any and all further things and to execute any and all
further documents (including, without limitation, UCC-1 Financing Statements) as
Select shall require and as shall be necessary to further perfect the security
interest granted to Select hereunder or to assist Select in enforcing its rights
hereunder or to effectuate the delivery (and, if requested, assignment) to
Select of all items now or hereafter constituting Collateral.
d. Rights upon Default.
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(1) Any of the following events shall be considered an "Event of
Default," if NAHC, NH and NCR do not cure such default or failure described in
subsections (a), (b) and (c) hereto, within ten (10) calendar days following
written notice of any such default or failure: (a) any default by NAHC and NCR
in making any payment under Article B, Section 1(a) if NAHC and NCR; (b) any
representation or warranty made by NAHC, NH or NCR in this Article B, Section 2
shall prove to have been incorrect in any material respect when made; or (c)
NAHC, NH or NCR shall fail to perform or observe any other term or agreement
contained in this Article B, Section 2. Upon the occurrence of an Event of
Default, Select may exercise, in addition to all other rights and powers
described herein or permitted under applicable law, all remedies available to a
secured creditor under the Pennsylvania Uniform Commercial Code, as amended, and
under any other applicable law.
(2) At any time after the occurrence of an Event of Default,
Select shall have the right to notify any and all account debtors of the
assignment of such Collateral to Select and to direct such account debtors or
obligors to make payment of all amounts due or to become due to NAHC, NCR or NH
thereunder directly to Select and, upon such notification and at the expense of
NAHC, NH and NCR, to enforce collection of any such
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Collateral, and to adjust, settle or compromise the amount or payment thereof,
in the same manner and to the same extent as NAHC, NCR or NH might have done,
and NAHC, NCR and NH shall not adjust, settle or compromise the amount or
payment of any Collateral, or release wholly or partly any account debtors or
obligor thereof, or allow any credit or discount thereon. Notwithstanding the
anything to the contrary herein, prior to the occurrence of an Event of Default,
NAHC, NCR and NH may use the proceeds of NAHC's, NCR's and NH's accounts
receivable in the ordinary course of their business.
(3) Following such notification, the Collateral at any time
received by NAHC, NCR or NH shall (unless Select shall otherwise elect in
writing) be forthwith accounted for and transmitted to Select, or a bank
designated by Select, to an account in its name in the same form as received
(not less often than once per week) by NAHC, NCR or NH, shall be received in
trust for Select and shall not be commingled with any other funds of NAHC, NH
and NCR. In the event that Select shall at any time elect in writing not to have
the proceeds transmitted to Select, Select nevertheless shall have and retain
the right at any time thereafter to demand that such proceeds be delivered and
transmitted to Select as set forth above. The proceeds of the Collateral so
transmitted to Select or such designee bank may be handled and administered by
Select in and through a remittance or similar account at Select or such bank,
and NAHC, NH and NCR acknowledge that the maintenance of such an account by
Select is solely for Select's own convenience and that NAHC and NCR does not
have any right, title or interest in such remittance or similar account or any
amounts at any time credited thereto. NAHC, NCR and NH shall accompany each
transmission of proceeds to Select with a report in such form as Select shall
require identifying the particular Collateral to which such proceeds apply. Upon
the occurrence of an Event of Default, at the request of Select and NAHC, NCR
and NH will enter into such lock box arrangements for payments of Collateral as
Select shall request.
(4) NAHC, NCR and NH hereby irrevocably appoints Select its
attorney-in-fact and proxy, with full authority in its place and stead, in its
own name or in the name of NAHC, NCR and NH, from time to time in Select's
discretion after the occurrence of an Event of Default, to take any action and
to execute any instrument which Select may deem necessary or advisable to
accomplish the purposes of this Agreement including, without limitation, to
demand, collect, receive, ▇▇▇ for, compound and give acquittance for any and all
amounts due or to become due on the Collateral and to endorse the name of NAHC,
NCR and NH on all commercial paper given in payment or partial payment thereof
and, in addition, may upon the occurrence of an Event of Default, in its
discretion, file any claim or take any other action or proceeding which Select
may deem necessary or appropriate to protect and preserve and realize upon the
security interest of Select in the Collateral and the proceeds thereof.
3. Releases; Termination of Representations.
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a. As a material inducement to Select to enter into this
Agreement, NCR and NAHC, on behalf of itself and all of its parent and
subsidiary corporations and all of their respective officers, directors,
employees, agents, shareholders, and assigns, and all persons claiming under or
through it or any of them (collectively, "Releasors") hereby release any and all
claims, liabilities, obligations, promises, agreements, controversies, damages,
actions, causes of action, suits, rights, demands, costs, losses, debts and
expenses (including attorneys' fees and costs incurred) of whatsoever kind or
nature, whether know or unknown, suspected or unsuspected, that any of them can,
shall, or may have against Select, and all of its parent and
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subsidiary corporations and all of their respective officers, directors,
employees, shareholders, agents, and assigns (collectively, "Releasees"), (i)
arising from or relating to any claims that the transactions effected pursuant
to the SPA were not properly approved by or disclosed to the stockholders of NCR
or NAHC, including LDN, (ii) that Releasees, themselves or in conjunction with
others, defrauded, or conspired to defraud, Releasors or the shareholders of NCR
or NAHC, and (iii) for rescission or rescissory damages in relation to the SPA
(the "Released Claims") and hereby covenant and agree not to ▇▇▇ or bring any
action against any Releasee based on or arising from any Released Claims.
Notwithstanding anything to the contrary contained elsewhere in this Article B,
Section 3(a), (i) the persons identified on Exhibit F attached hereto and made a
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part hereof shall not be deemed "Releasees" pursuant to this Agreement and (ii)
the persons identified on Exhibit G attached hereto and made a part hereof shall
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not be deemed "Releasees" pursuant to this Agreement for any acts or omissions
of such Releasees occurring at or prior to the closing under the SPA.
b. NAHC, NCR and Select agree that the following
representations and covenants of NAHC and/or NCR in the SPA are hereby
terminated with the effect that neither Select nor any of the Purchaser
Indemnified Parties shall have any claim against NAHC or NCR under the SPA for
breach of such representations or covenants: Sections 2.01, 2.02, 2.04, 2.05,
2.06, 2.08, 2.10, 2.11, 2.12, 2.13, 2.14, 2.15, 2.16(a), 2.16(b), 2.17, 2.18,
2.19, 2.22, 2.23, 2.24, 2.29, 2.33, 2.34, 8.01, 8.09, 8.10(d), 8.10(e),
8.14,8.15, 8.17, 8.18, 8.19, 8.20, 8.21, 8.23, 8.24, 8.26 and 8.28.
Notwithstanding the foregoing, this subsection (b), insofar as it relates to
Sections 8.10(d), 8.10(e) and 8.26, shall be void ab initio if either of NAHC or
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NCR fail to comply with their obligations under Article B, Sections 1 hereof.
c. As of the date hereof, Select is not aware of any Damages
sustained or incurred by any Purchaser Indemnified Party based upon a breach by
NAHC or NCR of Section 2.20 of the SPA. Select agrees that it will not ▇▇▇ or
bring any action against NAHC or NCR for any breach of Section 2.20 of the SPA
unless any person or entity makes any allegation inconsistent with the
representations set forth in Section 2.20 of the SPA, that is substantially
harmful, or potentially substantially harmful, to Select in Select's reasonable
judgment.
4. Release from LDN. As a condition for Select to enter into this
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Agreement, concurrently with the execution of this Agreement, LDN shall enter
into a release in substantially the form attached hereto as Exhibit H.
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5. Amendment to the SPA.
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a. Section 9.01(h) of the SPA is hereby deleted.
b. Section 9.01(m) of the SPA is hereby deleted.
c. Section 9.02(h) of the SPA is amended by replacing the words
"twenty-five percent (25%)" with the words "one hundred percent (100%)".
d. Section 9.02 of the SPA is hereby amended by adding before
the period at the end of the first sentence thereof, the following:
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", and (j) any liabilities arising from any claim included on
Exhibit 9.02(j)."
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e. Section 9.04 of the SPA is hereby amended and restated in
its entirety to read as follows:
"9.04 Limits on the Liability of the Parent and Seller. Subject
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to the terms of Section 9.07 hereof, the aggregate liability of the Parent and
the Seller for Damages for breaches of the representations contained in Sections
2.16(c) through (h), 2.25, 2.26, 2.27, 2.28, 2.30 and 2.31 herein and for
Damages sustained by Purchaser and/or the Group Members relating to the Ohio
"Wedge" Audit referred to in Schedule 2.15 hereto (including any amount paid by
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Parent to Purchaser pursuant to Article B, Section 1(c) of the Settlement
Agreement dated as of July 3, 2000 by and among Parent, Seller, Purchaser and
NovaCare Holdings, Inc.) shall be limited to an aggregate amount equal to Two
Million Dollars ($2,000,000)."
f. Section 9.05(a) of the SPA is hereby deleted.
g. Section 9.05(b) of the SPA is amended by replacing the
words "2.07, 2.21, 2.24, 8.15 and 8.20" with the words "2.07 and 2.21".
h. Section 9.08 of the SPA is hereby deleted.
i. Section 9.10 of the SPA is hereby deleted.
j. The SPA is hereby amended to add Section 9.11, as follows:
"9.11 Medicare Indemnification. Either Parent and Seller, on the
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one hand, or Purchaser, on the other hand, shall have the right to assume and
conduct the appeal of any claim made by a governmental authority relating to any
Medicare Representation (including claims for recoupment or overpayment under
Medicare reimbursement law or regulation but excluding the Ohio "Wedge" Audit
referred to in Schedule 2.15 hereto). For so long as both Parent and Seller, on
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the one hand, and Purchaser, on the other hand, decide to proceed with such an
appeal, Parent and Seller, jointly and severally, shall be liable for 90% of all
costs and expenses arising from such appeal and Purchaser shall be liable for
10% of all costs and expenses arising from such appeal; and any benefit to the
parties received from such appeal shall be split 90% in favor of Parent and
Seller, jointly, and 10% in favor of Purchaser. Either Parent and Seller, on the
one hand, or Purchaser, on the other hand, may discontinue their part in the
appeal process at any time. If either Parent and Seller, on the one hand, or
Purchaser, on the other hand, decide to withdraw from the appeal, or chooses not
to participate in such appeal, then the party that chooses to continue the
appeal process shall be liable for all of the costs and expenses arising from
such appeal from the point of time of such withdrawal forward and shall receive
all of the benefits obtained from the outcome of such appeal."
k. The SPA is hereby amended to add Exhibit 9.02(j) as set
forth in Exhibit I hereto.
6. Legal Fees. If any party initiates any action or proceeding to
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enforce or interpret any provision hereof, the prevailing party in such action
or proceeding shall be entitled
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to recover from the other party all costs and expenses of such suit, including
without limitation reasonable attorneys' fees and the reasonable costs of
investigation and discovery.
7. Non-Admission of Liability. This Agreement shall not in any way
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be construed as an admission by any party hereto that such party has acted
wrongfully or unlawfully. Select specifically disclaims any liability to or
wrongful acts against NAHC, NCR, LDN or any other person, on the part of Select
and Select's employees and agents. The parties hereto agree that this Agreement
(in whole or in part) shall not be admissible in any court or other forum for
any purpose other than the enforcement of its terms.
8. Confidentiality. Each of NAHC, NCR and Select represents and
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agrees that it shall keep the terms and amount of this Agreement completely
confidential, and that it shall not hereafter disclose any of the terms of the
Agreement to any person except its attorneys and accountants, who shall be
informed of and shall be bound by this confidentiality clause and except as
required to be disclosed by law, order or regulation of a court, tribunal or
governmental authority. NAHC, NCR and Select may disclose this Agreement to
federal and local tax authorities, or pursuant to subpoena.
9. Consultation with Counsel. Select, NAHC and NCR represent and
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agree that they fully understand their rights to discuss all aspects of this
Agreement with their private attorneys, that they have availed themselves of
this right, that they have carefully read and fully understand all of the terms
of this Agreement, and that they are voluntarily, and with proper and full
authority, entering into this Agreement. Each of NAHC and NCR represents that it
has had a reasonable period of time to consider this Agreement, and that it has
considered it carefully before executing it.
10. Other Obligation. The parties acknowledge that the foregoing
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agreement does not represent a settlement of any other obligations arising under
the SPA.
11. Notices. All notices and other communications provided for herein
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and all legal process in regard hereto shall be in writing and shall be sent by
registered mail or certified mail (postage prepaid), by Federal Express or other
recognized next-day courier service, by personal delivery, or by facsimile
transmission, addressed:
(a) if to NAHC, NH or NCR, to:
NAHC, Inc.
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: Chief Executive Officer
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
(b) if to Select, to:
Select Medical Corp.
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: General Counsel
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
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with a copy to:
Dechert Price & ▇▇▇▇▇▇
4000 ▇▇▇▇ Atlantic Tower
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Esquire
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
or to such other address or facsimile number as any party may, from time to
time, designate in a written notice given in a like manner. Each such notice or
other communication shall be treated as effective or having been given three (3)
business days after it is deposited in the mail if it is sent by registered or
certified mail, the next business day if it is sent by Federal Express or other
recognized next-day courier service, on the same business day if it is given by
personal delivery, and upon receipt of confirmation of transmission if it is
sent by facsimile transmission; provided, however, that in the case of facsimile
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transmission, the sender shall also send a copy of the notice, request or other
communication to the recipient by another means permitted hereunder as well.
12. Miscellaneous.
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a. Each party represents and warrants to the others that this
Agreement has been duly authorized, executed and delivered by such party and
constitutes a valid and legally binding obligation of such party, enforceable
against such party in accordance with its terms.
b. This Agreement together with the SPA, as amended by this
Agreement, sets forth the entire agreement between NAHC, NCR and Select, and
supersedes any and all prior agreements or understandings between NAHC, NCR and
Select pertaining to the subject matter hereof, including, without limitation,
the letter agreement dated March 27, 2000 by and among NAHC, NCR and Select.
Except as amended by this Agreement, the SPA remains in full force and effect.
c. The provisions of this Agreement are severable, and if any
part is found to be unenforceable, all other paragraphs shall remain fully valid
and enforceable. A finding that any portion of this Agreement is unenforceable
shall not affect the validity of NAHC's and NCR's releases of Select in Section
3(a) hereto nor the validity of the termination of the representations set forth
in Section 3(b) hereto. This Agreement shall survive the termination of any
arrangements contained herein.
d. This Agreement is made under, and shall be construed and
enforced in accordance with, the laws of the Commonwealth of Pennsylvania
applicable to agreements made and to be performed solely therein, without giving
effect to principles of conflicts of law.
e. This Agreement may be executed in several counterparts, each
of which shall be deemed an original and all of which shall constitute one and
the same instrument.
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[Signatures Appear On Following Page]
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IN WITNESS WHEREOF, the parties hereto have executed this Settlement
Agreement the day and year first above written.
SELECT MEDICAL CORPORATION
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Senior Vice President
NAHC, INC.
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇
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Name: ▇▇▇▇▇ ▇. ▇▇▇▇
Title: CEO
NC RESOURCES, INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: Vice President
NOVACARE HOLDINGS, INC.
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇
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Name: ▇▇▇▇▇ ▇. ▇▇▇▇
Title: CEO
