FIRST AMENDMENT TO EMPLOYMENT AGREEMENT
Exhibit
(d)(4)
EXECUTION COPY
FIRST AMENDMENT TO
EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT
This First Amendment to Employment Agreement (this “Amendment”) is entered into by and between
Xxxxxx X. Xxxxx (the “Executive”) and Dialysis Corporation of America, a Florida corporation
(individually, the “Company” and collectively with the Executive, the “Parties”), dated as of April
13, 2010, and effective as of the Effective Time (as defined below), and hereby amends the
Employment Agreement between the Parties dated February 25, 2009, a copy of which is attached
hereto as Exhibit A (the “Employment Agreement”).
WHEREAS, substantially concurrently with the execution and delivery of this Agreement, the
Company, U.S. Renal Care, Inc., a Delaware corporation (“Parent”), and Urchin Merger Sub, Inc., a
Florida corporation (“Merger Sub”), are entering into an Agreement and Plan of Merger, dated as of
the date hereof (as it may be amended or supplemented from time to time, the “Merger Agreement”),
which provides, among other things, for Merger Sub to commence a tender offer, subject to the terms
and conditions set forth therein, for all of the issued and outstanding shares of common stock of
the Company and that, upon the terms and subject to the conditions therein, Merger Sub will merge
with and into the Company (the “Merger”); and
WHEREAS, Executive is an executive officer of the Company and Parent and Merger Sub desire to
enter into this Amendment to, among other things, ensure that Executive will be available to assist
Parent with transitional matters following the closing of the Merger; and
WHEREAS, as a condition and inducement to the willingness of Parent and Merger Sub to enter
into the Merger Agreement, Parent and Merger Sub have requested that Executive agree, and Executive
has agreed, to enter into this Amendment to be effective upon the closing of the Merger (the
“Effective Time”); and
WHEREAS, the Parties desire to amend the Employment Agreement as set forth herein; and
WHEREAS, pursuant to Section 16 of the Employment Agreement, any provision of the Employment
Agreement may be amended or waived in a writing signed by the Parties; and
NOW, THEREFORE, in consideration of the foregoing and the representations, warranties,
covenants and agreements set forth herein, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, and subject to the terms and conditions set forth
herein, the Parties hereby agree as follows:
AGREEMENT
1. Effective as of the Effective Time:
(a) Section 1.23 of the Employment Agreement is hereby deleted in its entirety and replaced with
the following:
““Restricted Period” shall mean the Term and for a period of two (2) years from the
Date of Termination for whatever reason or occurrence, provided in the event of any
violation of Section 8, the Restricted Period shall be extended by a period of time equal to
that period beginning when the violation commenced and ending when the violation
terminated.”
(b) The reference in Section 8.1 of the Employment Agreement to the phrase “the Company within a
twenty-five (25) mile radius of the Company’s current or future dialysis facilities” in the
definition of “Restricted Activity” in Section 8.1 of the Employment Agreement is hereby deleted
and replaced with “the Company within a fifty (50) mile radius of the Company’s and its affiliates’
current or future dialysis facilities”.
2. Within 48 hours of the Board Appointment Date (as defined in the Merger Agreement), and as partial
consideration for Executive’s obligations set forth in Section 1(a) and (b) of this Amendment, the
Company shall pay Executive $170,000.
3. Except as set forth herein, the Parties’ rights under the Employment Agreement shall remain
unaffected and shall continue in full force and effect. This Amendment is limited precisely as
written and shall not be deemed to be an amendment to any other term or condition of the Employment
Agreement or waiver of any of the Parties’ rights under the Employment Agreement.
4. This Amendment shall form a part of the Employment Agreement for all purposes, and the Parties
shall be bound hereby. From and after the execution of this Amendment by the Parties, any
reference to the Employment Agreement shall be deemed a reference to the Employment Agreement as
amended hereby (unless the context specifically requires otherwise).
5. This Amendment may be signed in any number of counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same instrument. This
Amendment shall become effective when each Party shall have received a counterpart hereof signed
the other Party. Signatures to this Amendment transmitted by facsimile transmission, by electronic
mail in pdf form, or by any other electronic means designed to preserve the original graphic and
pictorial appearance of a document, will be deemed to have the same effect as physical delivery of
the paper document bearing the original signatures.
[Remainder of Page Intentionally Left Blank]
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IN WITNESS WHEREOF, the Executive has signed this Amendment personally and the Company has
caused this Amendment to be executed by its duly authorized representative.
COMPANY: DIALYSIS CORPORATION OF AMERICA, a Florida corporation |
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By: | /s/ Xxxxxxx X. Xxxxxxx | |||
Name: | Xxxxxxx X. Xxxxxxx | |||
Title: | President and Chief Executive Officer | |||
EXECUTIVE: |
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/s/ Xxxxxx X. Xxxxx | ||||
Xxxxxx X. Xxxxx | ||||
[Signature Page to Amendment to Employment Agreement — Xxxxx]