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Exhibit 10.4
AMENDED AND RESTATED EXCHANGE AGREEMENT
Amended and Restated Exchange Agreement ("Agreement") made effective
this 30th day of June, 1997 by and among ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, an individual residing
at ▇▇ ▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ("▇▇▇▇▇"), and ▇▇▇▇▇▇▇ ▇. ▇▇▇▇,
with an address at Capital Senior Living Corporation, ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇,
▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇ ("▇▇▇▇").
W I T N E S S E T H:
WHEREAS, ▇▇▇▇▇ desires to transfer and ▇▇▇▇ desires to acquire
55,000 shares (the "Shares") of the capital stock of Capital Senior Living
Corporation, a Delaware corporation (the "Corporation"), owned by ▇▇▇▇▇ in
exchange for the Exchange Shares (as hereinafter defined) owned by ▇▇▇▇, on the
terms and subject to the conditions hereinafter set forth; and
NOW, THEREFORE, in consideration of the premises hereof and other good
and valuable consideration, and intending to be legally bound hereby, ▇▇▇▇▇ and
▇▇▇▇ hereby agrees as follows:
1. Exchange of Shares of the Corporation. Subject to the terms
and conditions hereof, ▇▇▇▇▇ hereby agrees to transfer, assign and convey to
▇▇▇▇ and ▇▇▇▇ hereby agrees to accept from ▇▇▇▇▇ the Shares, and in exchange
therefor ▇▇▇▇ agrees to transfer, assign and convey to ▇▇▇▇▇ the Exchange
Shares on the terms and conditions hereinafter set forth. At the Closing (as
hereinafter defined), ▇▇▇▇▇ will deliver the stock certificate representing the
Shares duly endorsed by ▇▇▇▇▇ to ▇▇▇▇.
2. Exchange of Exchange Shares. At the Closing, ▇▇▇▇ shall
transfer, assign and convey to ▇▇▇▇▇ 75 shares (the "Exchange Shares") of the
capital stock of Quality Home Care, Inc., an Indiana corporation ("Quality
Home") owned by ▇▇▇▇ in exchange for the Shares of the Corporation
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set forth in Section 1 hereof. At the Closing, ▇▇▇▇ will deliver the stock
certificate representing the Exchange Shares duly endorsed by ▇▇▇▇ to ▇▇▇▇▇.
3. [Intentionally Deleted]
4. Representations and Warranties Concerning the Transaction.
(a) REPRESENTATIONS AND WARRANTIES OF ▇▇▇▇▇. ▇▇▇▇▇
represents and warrants to ▇▇▇▇ that the statements contained in this Section
4(a) are correct and complete as of the date of this Agreement and will be
correct and complete as of the Closing Date (as though made then and as though
the Closing Date were submitted for the date of this Agreement throughout this
Section 4(a)).
(i) AUTHORIZATION OF TRANSACTION. ▇▇▇▇▇ has full
power and authority to execute and deliver this Agreement and to perform his
obligations hereunder and this Agreement has been duly executed and delivered
by ▇▇▇▇▇. This Agreement constitutes the valid and legally binding obligation
of ▇▇▇▇▇, enforceable in accordance with its terms and conditions. To the best
of ▇▇▇▇▇'▇ knowledge, ▇▇▇▇▇ need not give any notice to, make any filing with,
or obtain any
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authorization, consent, or approval of, any government or governmental agency
or third party in order to consummate the transactions contemplated by this
Agreement, except for the Stock Purchase and Stockholders' Agreement entered
into as of the 1st day of November, 1996, by and among the Corporation, Senior
Living Trust ("Trust"), ▇▇▇▇ and ▇▇▇▇▇ (the "Stockholder Agreement").
(ii) NONCONTRAVENTION. To the best of ▇▇▇▇▇'▇
knowledge, neither the execution and the delivery of this Agreement by ▇▇▇▇▇,
nor the consummation of the transactions contemplated hereby by ▇▇▇▇▇, will (A)
violate any statute, regulation, rule, judgment, order, decree, stipulation,
injunction, charge, or other restriction of any government, governmental
agency, or court to which ▇▇▇▇▇ is subject, or (B) conflict with, result in a
breach of, constitute a default under, result in the acceleration of, create in
any part the right to accelerate, terminate, modify, or cancel, or require any
notice under any contract, agreement or mortgage for borrowed money, instrument
of indebtedness, or other arrangement to which ▇▇▇▇▇ is a party or by which he
is bound or to which the Shares are subject, except for the Stockholder
Agreement.
(iii) SHARES. ▇▇▇▇▇ holds of record and owns
beneficially the Shares, free and clear of any restrictions on transfer,
claims, liens, security interests, encumbrances, options, warrants, rights,
contracts, calls, commitments, equities, and demands, except as set forth in
the Stockholder Agreement. ▇▇▇▇▇ is not a party to any option, warrant, right,
contract, call, put, or other agreement or commitment providing for the
disposition or acquisition of any capital stock of the Corporation, except as
set forth in the Stockholder Agreement. Upon payment for the Shares in
accordance with the terms hereof ▇▇▇▇ will acquire good and clear title to all
of the Shares, all of which will be fully paid and non-assessable.
(b) REPRESENTATIONS AND WARRANTIES OF ▇▇▇▇. ▇▇▇▇
represents and warrants to ▇▇▇▇▇ that the statements contained in this Section
4(b) are correct and complete as of the date
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of this Agreement and will be correct and complete as of the Closing Date (as
though made then and as though the Closing Date were substituted for the date
of this Agreement throughout this Section 4(b)).
(i) AUTHORIZATION OF TRANSACTION. ▇▇▇▇ has full
power and authority to execute and deliver this Agreement and to perform his
obligations hereunder and this Agreement has been duly executed and delivered
by ▇▇▇▇. This Agreement constitutes the valid and legally binding obligation
of ▇▇▇▇, enforceable in accordance with its terms and conditions. To the best
of ▇▇▇▇'▇ knowledge, ▇▇▇▇ need not give any notice to, make any filing with, or
obtain any authorization, consent, or approval of, any government or
governmental agency or third party in order to consummate the transactions
contemplated by this Agreement.
(ii) NONCONTRAVENTION. To the best of ▇▇▇▇'▇
knowledge, neither the execution and the delivery of this Agreement by ▇▇▇▇,
nor the consummation of the transactions contemplated hereby by ▇▇▇▇, will (A)
violate any statute, regulation, rule, judgment, order, decree, stipulation,
injunction, charge, or other restriction of any government, governmental
agency, or court to which ▇▇▇▇ is subject, or (B) conflict with, result in a
breach of, constitute a default under, result in the acceleration of, create in
any party the right to accelerate, terminate, modify, or cancel, or require any
notice under any contract, agreement or mortgage for borrowed money, instrument
of indebtedness, or other arrangement to which ▇▇▇▇ is a party or by which it
is bound or to which any of its assets is subject.
(iii) EXCHANGE SHARES. ▇▇▇▇ holds of record and
owns beneficially the Exchange Shares, free and clear of any restrictions on
transfer, claims, liens, security interest, encumbrances, option warrants,
rights, contracts, calls, commitments, equities and demands. ▇▇▇▇ is not a
party to any option, warrant, right, contract, call, put, or other agreement or
commitment
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providing for the disposition or acquisition of any capital stock of Quality
Home. Upon payment for the Exchange Shares in accordance with the terms
hereof, ▇▇▇▇▇ will acquire good and clear title to all of the Exchange Shares,
all of which will be fully paid and non-assessable.
(c) SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The
representations, warranties, covenants and agreements of ▇▇▇▇▇ and ▇▇▇▇
contained in this Agreement (or in any document delivered pursuant hereto)
shall survive the execution and delivery hereof and the Closing.
5. The Closing.
The closing ("Closing") shall take place effective as of June 30, 1997
("Closing Date").
6. Consent of Corporation and Other Shareholders.
▇▇▇▇▇ and ▇▇▇▇ acknowledge that the transfer of the Shares is subject
to restrictions set forth in the Stockholder Agreement. The Corporation,
▇▇▇▇▇, ▇▇▇▇ and Trust hereby consent to the transfer of the Shares hereunder
and waive any rights whatsoever that the Corporation, ▇▇▇▇ or Trust may have to
the Shares.
7. Initial Public Offering of the Corporation. If an initial
public offering of common stock of the Corporation is not completed by December
31, 1997, effective as of December 31, 1997, ▇▇▇▇▇ and ▇▇▇▇ shall take all
actions necessary to have ▇▇▇▇▇ transfer, assign and convey back to ▇▇▇▇ the
Exchange Shares and to have ▇▇▇▇ transfer, assign and convey back to ▇▇▇▇▇ the
Shares.
8. Amendments to Stockholder Agreement. Section 5.3 of the
Stockholders Agreement concerning registration rights shall be deleted, except
that if the Shares and the Exchange Shares are reconveyed as provided in
Section 7 hereof, Section 5.3 of the Stockholder Agreement shall be
reinstituted and restored. Also, Section 5.4 of the Stockholder Agreement
provides anti-dilution rights to the stockholders. In recognition of the
exchange of shares set forth herein, the 2.8% minimum applicable to ▇▇▇▇▇ in
Section 5.4 shall be adjusted downward to take into account the
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Exchange Shares which ▇▇▇▇▇ is receiving hereunder, except that if the Shares
and the Exchange Shares are reconveyed as provided in Section 7 hereof, the
2.8% minimum applicable to ▇▇▇▇▇ in Section 5.4 shall be reinstituted and
restored.
9. General Provisions.
(a) This Agreement may be amended, modified or terminated
only by written instrument executed by all parties hereto.
(b) Any party hereto may at any time waive compliance by
the other with any covenants or conditions contained in this Agreement but only
by written instrument executed by the party waiving such compliance. No such
waiver, however, shall be deemed to constitute the waiver of any such covenant
or condition in any other circumstance or the waiver of any other covenant or
condition.
(c) If any provision of this Agreement shall finally be
determined to be unlawful, then such provision shall be deemed to be severed
from this Agreement and every other provision of this Agreement shall remain in
full force and effect.
(d) This Agreement is not intended to, and shall not,
create any rights in or confer any benefits upon any person other than the
parties hereto.
(e) The language used in this Agreement will be deemed to
be the language chosen by the parties to express their mutual intent, and no
rule of strict construction shall be applied against any party. The parties
intend that each representation, warranty, and covenant contained herein shall
have independent significance. If any party has breached any representation,
warranty, or covenant relating to the same subject matter as any other
representation, warranty or covenant (regardless of the relative levels of
specificity) which the party has not breached, it shall not detract from or
mitigate the fact that the party is in breach of the first representation,
warranty or covenant.
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(f) All notices or other communications hereunder shall
be in writing and shall be deemed given on the date of delivery if delivered
personally or five days after deposit in a facility of the United States Post
Office if mailed by certified mail (return receipt requested) to the parties at
the addresses set forth above or at such other address as shall be specified by
like notice.
(g) The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.
(h) This Agreement constitutes the entire agreement and
supersedes all prior agreements and understandings, both written and oral,
between ▇▇▇▇▇ and ▇▇▇▇, with respect to the subject matter hereof, except the
Stockholder Agreement and as specifically provided or otherwise referred to
herein. This Agreement shall be governed in all respects including validity,
interpretation and effect by the laws of the State of Delaware and shall be
binding upon and shall inure to the benefit of the parties hereto, their heirs,
administrators or executives, successors and assigns.
(i) The parties hereto agree that they will, from time to
time, execute and deliver any and all additional and supplemental instruments,
and do such other acts and things which may be reasonably necessary or
desirable to effect the purposes and intent of this Agreement, and the
consummation of the transactions contemplated hereby.
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IN WITNESS WHEREOF, the parties have hereunto set their hands and
seals the day and year first above stated.
/s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
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▇▇▇▇▇▇▇▇ ▇▇▇▇▇
/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
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▇▇▇▇▇▇▇ ▇. ▇▇▇▇
Consented To:
Capital Senior Living Corporation
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
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▇▇▇▇▇▇▇ ▇. ▇▇▇▇
Senior Living Trust
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
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▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Trustee
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