EMPLOYMENT AGREEMENT
Exhibit
(e)(7)
THIS EMPLOYMENT AGREEMENT (this “Agreement”), made effective as of the ___day of ,
2007, by and between Option Care, Inc., a corporation incorporated under the laws of Delaware (the
“Company”), and (“Executive Officer”).
EMPLOYMENT
Subject to the terms and conditions of this Agreement, the Company will employ Executive Officer
as Senior Vice President and Chief Financial Officer reporting to the Chief Executive Officer of
the Company, and having the responsibilities, duties and authority commensurate with the position
of Senior Vice President and Chief Financial Officer. The principal location at which Executive
Officer will perform such services will be the Company’s facility located at Buffalo Grove, IL.
1. TERM OF AGREEMENT.
This Agreement shall commence as the date hereof (the “Effective Date”) and shall continue in
effect until the first anniversary of the Effective Date; provided, that commencing on the first
anniversary of the Effective Date and on each subsequent anniversary thereof, the term of this
Agreement shall automatically be extended for one (1) year unless either the Company or Executive
Officer shall have given written notice to the other at least ninety (90) days prior thereto that
the term of this Agreement shall not be so extended; and provided, further, that notwithstanding
any such notice by the Company not to extend, the term of this Agreement shall not expire prior to
the expiration of twelve (12) months after the occurrence of a Change in Control.
2. DEFINITIONS.
2.1. Accrued Compensation.
“Accrued Compensation” shall mean an amount which shall include all amounts earned or accrued
through the Termination Date (as hereinafter defined) but not paid as of the Termination Date,
including, without limitation, (i) base salary, (ii) reimbursement for reasonable and necessary
expenses incurred by Executive Officer on behalf of the Company during the period ending on the
Termination Date, and (iii) vacation pay.
2.2. Base Amount.
“Base Amount” shall mean the amount of Executive Officer’s annual base salary at the greater of the
rate in effect immediately prior to the Change in Control (if applicable) or the rate in effect on
the Termination Date, and shall include all amounts of Executive Officer’s base salary that are
deferred under the qualified and non-qualified employee benefit plans of the Company or any other
agreement or arrangement.
2.3. Bonus Amount.
“Bonus Amount” shall mean an amount equal to the total eligible bonus amount under the Company’s
annual bonus incentive plan most recently approved by the Company or the Company’s Board of
Directors or Committee thereof.
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2.4. Cause.
A termination of employment is for “Cause” if Executive Officer has been convicted of or enters a
plea of nolo contendere with regard to any felony or crime involving fraud, dishonesty or moral
turpitude or the termination is evidenced by a resolution adopted in good faith by the Board to the
effect that Executive Officer (i) continually failed substantially to perform Executive Officer’s
reasonably assigned duties with the Company (other than a failure resulting from Executive
Officer’s incapacity due to physical or mental illness or, following a Change in Control, from
Executive Officer’s assignment of duties that would constitute Good Reason (as hereinafter
defined)), which failure continued for a period of at least ten (10) days after a written notice of
demand for substantial performance has been delivered to Executive Officer specifying the manner in
which Executive Officer has failed substantially to perform, or (ii) engaged in conduct which is
demonstrably and materially injurious to the Company.
2.5. Change in Control.
“Change in Control” shall mean any of the following:
(a) An acquisition (other than directly from the Company) of any voting securities of the Company
(the “Voting Securities”) by any Person (as the term “person” is used for purposes of Section 13 or
14 of the Securities Exchange Act of 1934, as amended (the “1934 Act”)) immediately after which
such Person has Beneficial Ownership (as the term “beneficial ownership” is defined under Rule
13d-3 promulgated under the 0000 Xxx) of forty percent (40%) or more of the combined voting power
of the Company’s then outstanding Voting Securities;
(b) The individuals who, as of the date hereof, are members of the Board (the “Incumbent Board”),
cease for any reason to constitute at least a majority of the Board; provided, that if the
appointment, election or nomination for election by the Company’s shareholders of any new director
was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for
purposes of this Agreement, be considered a member of the Incumbent Board; and provided, further,
that no individual shall be considered a member of the Incumbent Board if such individual initially
assumed office as a result of either an actual or threatened “Election Contest” (as described in
Rule 14a-11 promulgated under the 0000 Xxx) or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board (a “Proxy Contest”) including by
reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest;
(c) The consummation of a merger, consolidation or reorganization involving the Company, unless the
shareholders of the Company immediately before such merger, consolidation or reorganization own,
directly or indirectly, immediately following such merger, consolidation or reorganization, at
least sixty percent (60%) of the combined voting power of the outstanding voting securities of the
corporation resulting from such merger, consolidation or reorganization (the “Surviving
Corporation”) in substantially the same proportion as their ownership of the Voting Securities
immediately before such merger, consolidation or reorganization; and
(d) The consummation of an agreement for the sale or other disposition of all or substantially all
of the assets of the Company to any Person (other than a transfer to a Subsidiary).
Notwithstanding the foregoing, no “Change in Control” shall be deemed to have occurred if there is
consummated any transaction or series of integrated transactions immediately following which the
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record holders of the Voting Securities of the Company immediately prior to such transaction or
series of transactions continue to have substantially the same proportionate ownership in an entity
which owns all or substantially all of the assets of the Company immediately following such
transaction or series of transactions.
2.6. Company.
The “Company” shall mean Option Care, Inc. and shall include its “Successors and Assigns” (as
hereinafter defined).
2.7. Disability.
“Disability” shall mean a physical or mental infirmity which impairs Executive Officer’s ability to
substantially perform Executive Officer’s duties with the Company for a period of one hundred
eighty (180) consecutive days; provided, that Executive Officer has not returned to Executive
Officer’s full-time employment prior to the Termination Date as stated in the Notice of Termination
(as hereinafter defined).
2.8. Good Reason.
(a) “Good Reason” shall mean the occurrence of any of the events or conditions described in
subsections (i) through (v) hereof:
(i) (A) a change in Executive Officer’s status or responsibilities which represents a material
and adverse change from Executive Officer’s status or responsibilities, or (B) the assignment to
Executive Officer of any duties or responsibilities which are materially inconsistent with
Executive Officer’s status or responsibilities (in either case without sole regard to any change in
title or the Company’s status as a public or private entity);
(ii) a reduction in Executive Officer’s base salary to a level below that in effect at any
time previously (except to the extent such reduction is not due to a Change in Control and is part
of a comprehensive reduction in salary applicable to employees of the Company generally so long as
the reduction applicable to Executive Officer is comparable to the reduction applied to other
senior executives of the Company);
(iii) the Company’s requiring Executive Officer to be based at any place outside a 50-mile
radius from Executive Officer’s job location or residence without Executive Officer’s written
consent, except for travel that is reasonably necessary in connection with the Company’s business;
(iv) the insolvency or the filing (by any party, including the Company) of a petition for
bankruptcy of the Company, which petition is not dismissed within sixty (60) days;
(v) the failure of the Company to obtain an agreement, satisfactory to Executive Officer, from
any Successors and Assigns (as hereinafter defined) to assume and agree to perform this Agreement,
as contemplated in Section 13 hereof.
(b) Executive Officer’s right to terminate Executive Officer’s employment pursuant to this Section
2.8 shall not be affected by Executive Officer’s incapacity due to physical or mental illness.
Executive
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Officer must determine whether to invoke the right to terminate employment pursuant to any
condition under Section 2.8(a) within ninety (90) days of the initial existence of such condition
and the Company shall be given a period of thirty (30) days during which it may remedy such
condition.
2.9. Notice of Termination.
“Notice of Termination” shall mean a written notice of termination of Executive Officer’s
employment which indicates the specific termination provision in this Agreement relied upon and
which sets forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive Officer’s employment under the provision so indicated.
2.10. Pro-Rata Bonus.
“Pro-Rata Bonus” shall mean an amount equal to the Bonus Amount multiplied by a fraction the
numerator of which is the number of days in the fiscal year through the Termination Date and the
denominator of which is 365.
2.11. Successors and Assigns.
“Successors and Assigns” shall mean a corporation or other entity acquiring all or substantially
all the assets and business of the Company (including this Agreement), whether by operation of law
or otherwise.
2.12. Termination Date.
“Termination Date” shall mean (i) in the case of Executive Officer’s death, Executive Officer’s
date of death, (ii) in the case of Good Reason, the last day of Executive Officer’s employment, and
(iii) in all other cases, the date specified in the Notice of Termination; provided, that if
Executive Officer’s employment is terminated by the Company for Cause or due to Disability, the
date specified in the Notice of Termination shall be at least forty-five (45) days from the date
the Notice of Termination is given to Executive Officer; and provided, further, that in the case of
Disability, Executive Officer shall not have returned to the full-time performance of Executive
Officer’s duties during such period of at least thirty (30) days.
3. EXECUTIVE OFFICER OBLIGATIONS.
During the term of this Agreement, and excluding any periods of vacation and leave due to sickness
or Disability to which Executive Officer is entitled, Executive Officer agrees to devote his full
time and attention spent on business matters to the business and affairs of the Company and, to the
extent necessary to discharge the responsibilities assigned to Executive Officer by the Company, to
use Executive Officer’s reasonable best efforts to perform faithfully and efficiently such
responsibilities; provided, that it shall not be a violation of this Agreement for Executive
Officer to, without limitation, (i) serve on corporate, civic or charitable boards or committees,
(ii) deliver lectures or fulfill speaking engagements, (iii) manage personal investments and (iv)
perform such other activities as the Company’s Chief Executive Officer may approve, so long as such
activities do not interfere materially with the performance of Executive Officer’s responsibilities
as an employee of the Company. It is expressly understood and agreed that to the extent that any
such activities have been conducted by Executive Officer prior to the date of a Change in Control,
the continued conduct of such activities (or the conduct of activities similar in nature and scope
thereto) subsequent to such date shall not thereafter be deemed to interfere with the performance
of Executive Officer’s responsibilities to the Company.
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4. TERMINATION OF EMPLOYMENT NOT IN CONNECTION WITH A CHANGE IN CONTROL.
4.1. Termination Benefits
The Executive Officer shall be entitled to the following compensation and benefits if, during the
term of this Agreement, Executive Officer’s employment with the Company shall be terminated more
than ninety (90) days prior to a Change in Control, or Executive Officer’s employment with the
Company shall be terminated at any time after the first anniversary of the occurrence of a Change
in Control:
(a) If Executive Officer’s employment with the Company shall be terminated (i) by the Company for
Cause, (ii) due to Executive Officer’s Disability or death, (iii) due to Executive Officer’s
retirement pursuant to the Company’s policies applying to executive officers generally, or (iv) by
Executive Officer other than for Good Reason, the Company shall pay to Executive Officer the
Accrued Compensation;
(b) If Executive Officer’s employment with the Company shall be terminated by the Company without
Cause, or by the Executive Officer for Good Reason, Executive Officer shall be entitled to the
following:
(i) the Company shall pay Executive Officer all Accrued Compensation and a Pro-Rata Bonus;
(ii) the Company shall pay Executive Officer as severance pay and in lieu of any further
compensation for periods subsequent to the Termination Date, an amount in cash equal to one (1)
times the sum of (A) the Base Amount and (B) the Bonus Amount;
(iii) until the first (1st) anniversary of the Termination Date, Executive Officer shall have
such rights with respect to benefits provided by the Company, including without limitation car
allowance, life insurance, disability, medical, dental and hospitalization benefits as were
provided to Executive Officer as of the Effective Date or, if greater, at any time within ninety
(90) days preceding the Termination Date; and
(c) The amounts provided for in Sections 4.1(a) and 4.1(b)(i), and (ii) shall be paid in a single
lump sum cash payment within thirty (30) days, or as soon as administratively practicable, after
the Termination Date (but in no event later than March 15 of the following calendar year), and
shall be subject to all applicable tax and other withholdings.
(d) The Executive Officer shall not be required to mitigate the amount of any payment provided for
in this Agreement by seeking other employment or otherwise and, no such payment shall be offset or
reduced by the amount of any compensation or benefits provided to Executive Officer in any
subsequent employment.
4.2. Cooperation.
Notwithstanding anything to the contrary contained in this Agreement, payment of the amounts
specified in Section 4.1(b)(ii) hereof is conditional upon Executive Officer reasonably cooperating
with the Company in connection with all matters relating to Executive Officer’s employment with the
Company and assisting the Company as reasonably requested in transitioning Executive Officer’s
responsibilities to Executive Officer’s replacement; provided that Executive Officer shall not be
required
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to perform any duties or take any action that would constitute Good Reason.
5. TERMINATION OF EMPLOYMENT FOLLOWING A CHANGE IN CONTROL.
5.1. Termination Benefits.
If, during the term of this Agreement, Executive Officer’s employment with the Company shall be
terminated within ninety (90) days prior to or twelve (12) months following a Change in Control,
Executive Officer shall be entitled to the following compensation and benefits:
(a) If Executive Officer’s employment with the Company shall be terminated (i) by the Company for
Cause, (ii) due to Executive Officer’s Disability or death, (iii) due to Executive Officer’s
retirement pursuant to the Company’s policies applying to executive officers generally, or (iv) by
Executive Officer other than for Good Reason, the Company shall pay to Executive Officer the
Accrued Compensation;
(b) If Executive Officer’s employment with the Company shall be terminated by the Company without
Cause, or by the Executive Officer for Good Reason, Executive Officer shall be entitled to the
following:
(i) the Company shall pay Executive Officer all Accrued Compensation and a Pro-Rata Bonus;
(ii) the Company shall pay Executive Officer as severance pay and in lieu of any further
compensation for periods subsequent to the Termination Date, an amount in cash equal to two (2)
times the sum of (A) the Base Amount and (B) the Bonus Amount;
(iii) until the second (2nd) anniversary of the Termination Date, Executive Officer shall have
such rights with respect to benefits provided by the Company, including without limitation car
allowance, life insurance, disability, medical, dental and hospitalization benefits as were
provided to Executive Officer as of the Effective Date or, if greater, at any time within ninety
(90) days preceding the date of the Change in Control; and
(iv) the restrictions on any outstanding incentive awards (including restricted stock and
granted performance shares or units) granted to Executive Officer under the Company’s stock option
and other stock incentive plans or under any other incentive plan or arrangement shall lapse and
such incentive award shall become 100% vested, all stock options and stock appreciation rights
granted to Executive Officer shall become immediately exercisable and shall become 100% vested and
all performance units granted to Executive Officer shall become 100% vested.
(c) The amounts provided for in Sections 5.1(a) and 5.1(b)(i), (ii) and (iii) shall be paid in a
single lump sum cash payment within thirty (30) days, or as soon as administratively practicable,
after the Termination Date (but in no event later than March 15 of the following calendar year),
and shall be subject to all applicable tax and other withholdings.
(d) The Executive Officer shall not be required to mitigate the amount of any payment provided for
in this Agreement by seeking other employment or otherwise and, no such payment shall be offset or
reduced by the amount of any compensation or benefits provided to Executive Officer in any
subsequent employment.
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5.2. Cooperation.
Notwithstanding anything to the contrary contained in this Agreement, payment of the amounts
specified in Section 5.1(b)(ii) hereof is conditional upon Executive Officer reasonably cooperating
with the Company in connection with all matters relating to Executive Officer’s employment with the
Company and assisting the Company as reasonably requested in transitioning Executive Officer’s
responsibilities to Executive Officer’s replacement; provided that Executive Officer shall not be
required to perform any duties or take any action that would constitute Good Reason.
6. OTHER BENEFIT POLICIES.
The severance pay and benefits provided for in Sections 4 or 5 shall be in lieu of any other
severance or termination pay to which Executive Officer may be entitled under any Company severance
or termination plan, program, practice or arrangement. Notwithstanding the foregoing, nothing in
this Agreement shall prevent or limit Executive Officer’s continuing or future participation in any
benefit, bonus, incentive or other plan or program provided by the Company (except for any
severance or termination policies, plans, programs or practices) and for which Executive Officer
may qualify, nor shall anything herein limit or reduce such rights as Executive Officer may have
under any other agreements with the Company (except for any severance or termination agreement).
Amounts which are vested benefits or which Executive Officer is otherwise entitled to receive under
any plan or program of the Company shall be payable in accordance with such plan or program, except
as explicitly modified by this Agreement. The Company may condition the payment to Executive
Officer of severance benefits upon Executive Officer’s delivery of a reasonable form of release in
favor of the Company containing customary terms and conditions for the release of employment
related claims and including mutual non-disparagement provisions. Nothing in this Agreement shall
alter Executive Officer’s status as an “at will” employee of the Company.
7. NOTICE OF TERMINATION.
Any purported termination of Executive Officer’s employment by the Company shall be communicated by
Notice of Termination to Executive Officer. For purposes of this Agreement, no such purported
termination shall be effective without such Notice of Termination.
8. CONFIDENTIAL INFORMATION.
8.1. Confidence.
Executive Officer shall hold in confidence for the benefit of the Company all secret or
confidential information, knowledge or data relating to the Company and its businesses, which shall
have been obtained by Executive Officer in the course of Executive Officer’s employment by the
Company and which shall not be public knowledge (other than by acts by Executive Officer in
violation of this Agreement) (“Confidential Information”). Whether before or after termination of
the Executive Officer’s employment with the Company, Executive Officer shall not, without the prior
written consent of the Company, communicate, use or divulge any Confidential Information, other
than to the Company and to those persons or entities designated by the Company or as otherwise is
reasonably necessary for Executive Officer to carry out his or her responsibilities as an executive
of the Company. Confidential Information shall not include information which is required to be
disclosed pursuant to law, provided Executive Officer uses reasonable efforts to give the Company
reasonable notice of such required disclosure.
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8.2. Remedies.
Executive Officer agrees that any breach or threatened breach by Executive Officer of this Section
8 will entitle the Company to defer or withhold any amounts otherwise payable to Executive Officer
under this Agreement.
9. COVENANT NOT TO COMPETE.
9.1. Non-Competition.
Executive Officer agrees that from the Effective Date hereof until the sooner to occur of (i) the
end of the twelfth month following the Termination Date or (ii) the end of the twelfth month
following the Change in Control (if applicable), Executive Officer will not, directly or
indirectly, engage in any business activity that is or may reasonably be found to be in competition
with the business of the Company and its subsidiaries as such business may exist at any time from
the Effective Date through the Termination Date, unless Executive Officer can demonstrate that any
action that otherwise would contravene this Section 9.1 was done without use in any way of
Confidential Information; provided, that nothing in this Agreement shall be deemed to prohibit
Executive Officer from owning not more than five percent (5%) of any class of publicly traded
securities of a competitor.
9.2. Non-Solicitation.
Executive Officer agrees that from the Effective Date hereof to the sooner to occur of (i) the end
of the twelfth month following the Termination Date or (ii) the end of the twelfth month following
the Change in Control (if applicable), Executive Officer will not:
(a) Solicit, raid, entice or induce any employee of the Company to be employed by any competitor of
the Company (except to the extent that such employee has first responded to a general advertisement
or general employment search by Executive Officer’s place of employment at the time);
(b) Solicit business for any competitor from, or transact such business for any competitor with,
any person, firm or corporation which was, at any time during Executive Officer’s employment
hereunder, a customer of the Company; or
(c) Assist a competitor in taking such action.
9.3 Property of the Company. All ideas, discoveries, creations, manuscripts and properties,
innovations, improvements, know-how, inventions, designs, developments, apparatus, techniques,
methods, and formulae (collectively the “Inventions”) which may be used in the business of the
Company, whether patentable, copyrightable or not, which Executive Officer may conceive, reduce to
practice or develop while Executive Officer is employed hereunder, alone or in conjunction with
another or others, and whether at the request or upon the suggestion of the Company or otherwise,
will be the sole and exclusive property of the Company, and that Executive Officer will not publish
any of the Inventions without the prior written consent of the Company. Executive Officer hereby
assign to the Company all of his right, title and interest in and to all of the foregoing.
9.4. Remedies.
Executive Officer agrees that any breach or threatened breach by Executive Officer of any provision
of
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this Section 9 will entitle the Company, in addition to any other legal remedies available to it,
to apply to any court of competent jurisdiction to enjoin the breach or threatened breach, it being
acknowledged and agreed that any such material breach will cause irreparable injury to the Company
and that any damages will not provide adequate remedies to the Company.
10. EXCLUSIVE REMEDY.
10.1. Executive Officer’s right to salary continuation and other severance benefits pursuant to
Sections 4 and 5 shall be Executive Officer’s sole and exclusive remedy for any termination of
Executive Officer’s employment by the Company other than for Death, Disability or Cause or by
Executive Officer for Good Reason.
10.2. Except as provided in Section 16(i), the Company agrees to pay, to the full extent permitted
by law, all legal fees and expenses which Executive Officer may reasonably incur as a result of any
contest by the Company or others of the validity or enforceability of, or liability under, any
provision of this Agreement which is ultimately decided in favor of Executive Officer.
11. INDEMNIFICATION.
The Company will indemnify Executive Officer to the extent permitted by its charter and by-laws and
by applicable law against all costs, charges and expenses, including, without limitation,
attorneys’ fees, incurred or sustained by Executive Officer in connection with any action, suit or
proceeding to which he may be made a party by reason of being an officer, director or employee of
the Company. In connection with the foregoing, Executive Officer will be covered under any
directors and officers, any employment practices, any errors and omissions and any other liability
insurance policy that protects other officers of the Company.
12. RECORDS.
Upon termination of Executive Officer’s employment hereunder for any reason or for no reason,
Executive Officer will deliver to the Company any property of the Company which may be in his
possession, including products, materials, memoranda, notes, records, reports or other documents or
photocopies of the same.
13. SUCCESSORS; BINDING AGREEMENT.
13.1. This Agreement shall be binding upon and shall inure to the benefit of the Company and its
Successors and Assigns, and the Company shall require any Successors and Assigns 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 or assignment had taken place.
13.2. Neither this Agreement nor any right or interest hereunder shall be assignable or
transferable by Executive Officer or Executive Officer’s beneficiaries or legal representatives,
except by will or by the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable by Executive Officer’s legal personal representative.
14. FEES AND EXPENSES.
Except as provided in Section 18(i), the Company and Executive Officer shall pay its own costs and
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expenses related to the negation and execution of this Agreement.
15. NOTICE.
Notices and all other communications provided for in this Agreement (including the Notice of
Termination) shall be in writing and shall be deemed to have been duly given when personally
delivered or sent by certified mail, return receipt requested, postage prepaid, addressed to the
respective addresses last given by each party to the other; provided, that all notices to the
Company shall be directed to the attention of the Board with a copy to the Secretary of the
Company. All notices and communications shall be deemed to have been received on the date of
delivery thereof or on the third business day after the mailing thereof, except that notice of
change of address shall be effective only upon receipt.
16. SETTLEMENT OF CLAIMS.
The Company’s obligation to make the payments provided for in this Agreement and otherwise to
perform its obligations hereunder shall not be affected by any circumstances, including, without
limitation, any set-off, counterclaim, recoupment, defense or other right which the Company may
have against Executive Officer or others.
17. MISCELLANEOUS.
No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by Executive Officer and the Company.
No waiver by either party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. No agreement or representation, oral or otherwise, express or implied,
with respect to the subject matter hereof has been made by either party which is not expressly set
forth in this Agreement.
18. GOVERNING LAW; ARBITRATION.
(a) This Agreement shall be governed by and construed and enforced in accordance with the laws of
the State of Illinois without giving effect to the conflict of laws principles thereof.
(b) Any controversy or claim arising out of, relating to or in connection with this Agreement, or
the breach thereof, shall be settled by arbitration administered by the American Arbitration
Association (“AAA”) in accordance with its then existing Commercial Arbitration rules and judgment
upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.
(c) It is the express agreement of the parties that the provisions of this Section, including the
rules of the AAA, as modified by the terms of this Section 18, shall govern the arbitration of any
disputes arising pursuant to this Agreement. In the event of any conflict between the law of the
State of Illinois, the law of the arbitral location, and the U.S. Arbitration Act (Title 9, U.S.
Code), with respect to any arbitration conducted pursuant to this Agreement, to the extent
permissible, it is the express intent of the parties that the law of Illinois, as modified herein,
shall prevail. To the extent this Section 18 is deemed a separate agreement, independent from this
Agreement, Sections 14, 15, 17, 19 and 20 are incorporated herein by reference. Either party (the
“Initiating Party”) may commence an arbitration by submitting a Demand for Arbitration under the
AAA Rules and by notice to the other Party (the “Respondent”) in accordance with Section 15. Such
notice shall set forth in reasonable detail the basic operative facts upon which the
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Initiating Party seeks relief and specific reference to the clauses of this Agreement, the amount
claimed, if any, and any non-monetary relief sought against the Respondent. After the initial list
of issues to be resolved has been submitted, the arbitrators shall permit either party to propose
additional issues for resolution in the pending proceedings.
(d) The place of arbitration shall be Chicago, Illinois, or any other place selected by mutual
agreement.
(e) The parties shall attempt, by agreement, to nominate a sole arbitrator for confirmation by the
AAA. If the parties fail so to nominate a sole arbitrator within 30 days from the date when the
Initiating Party’s Demand for Arbitration has been communicated to the other party, a board of
three arbitrators shall be appointed by the parties jointly or, if the parties cannot agree as to
three arbitrators within 30 days after the commencement of the arbitration proceeding, then one
arbitrator shall be appointed by each of Executive Officer and the Company within 60 days after the
commencement of the arbitration proceeding and the third arbitrator shall be appointed by mutual
agreement of such two arbitrators. If such two arbitrators shall fail to agree within 75 days after
commencement of the arbitration proceeding upon the appointment of the third arbitrator, the third
arbitrator shall be appointed by the AAA in accordance with its then existing rules.
Notwithstanding the foregoing, if any party shall fail to appoint an arbitrator within the
specified time period, such arbitrator and the third arbitrator shall be appointed by the AAA in
accordance with its then existing rules. For purposes of this Section 18, the “commencement of the
arbitration proceeding” shall be deemed to be the date upon which the Demand for Arbitration has
been received by the AAA. Any award shall be rendered by a majority of the members of the board of
arbitration.
(f) An award rendered in connection with an arbitration pursuant to this Section 16 shall be final
and binding upon the parties, and any judgment upon such an award may be entered and enforced in
any court of competent jurisdiction.
(g) The parties agree that the award of the arbitral tribunal will be the sole and exclusive remedy
between them regarding any and all claims between them with respect to the subject matter of the
arbitrated dispute. The parties hereby waive all jurisdictional defenses in connection with any
arbitration hereunder or the enforcement of any order or award rendered pursuant thereto (assuming
that the terms and conditions of this arbitration clause have been complied with).
(h) With respect to any award issued by the arbitrators pursuant to this Agreement, the parties
expressly agree (i) that such order shall be conclusive proof of the validity of the
determination(s) of the arbitrators underlying such order; and (ii) any federal court sitting in
Chicago, Illinois, or any other court having jurisdiction, may enter judgment upon and enforce such
order, whether pursuant to the U.S. Arbitration Act, or otherwise.
(i) The arbitrators shall issue a written explanation of the reasons for the award and a full
statement of the facts as found and the rules of law applied in reaching their decision to both
parties. The arbitrators shall apportion to each party all costs (other than attorneys’ fees)
incurred in conducting the arbitration in accordance with what the arbitrators deem just and
equitable under the circumstances. The prevailing party shall be entitled to recover its reasonable
attorneys’ fees, costs and expenses from the other party. Any provisional remedy which would be
available to a court of law shall be available from the arbitrators pending arbitration of the
dispute. Either party may make an application to the arbitrators
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seeking injunctive or other interim relief, and the arbitrators may take whatever interim measures
they deem necessary in respect of the subject matter of the dispute, including measures to maintain
the status quo until such time as the arbitration award is rendered or the controversy is otherwise
resolved. The arbitrator shall have the authority to award any remedy or relief that a court of the
State of Illinois could order or grant, including, without limitation, specific performance of any
obligation created under this Agreement, the issuance of an injunction, or the imposition of
sanctions for abuse or frustration of the arbitration process, but specifically excluding punitive
damages (the parties specifically agree that punitive damages shall not be available in the event
of any dispute).
(j) The parties may file an application in any proper court for a provisional remedy in connection
with an arbitrable controversy, but only upon the ground that the award to which the application
may be entitled may be rendered ineffectual without provisional relief.
19. SEVERABILITY.
The provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability
of any provision shall not affect the validity or enforceability of the other provisions hereof.
20. ENTIRE AGREEMENT.
This Agreement constitutes the entire agreement between the parties hereto and supersedes all prior
agreements, if any, understandings and arrangements, oral or otherwise, between the parties hereto
with respect to the subject matter hereof.
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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized
officer and Executive Officer has executed this Agreement as of the day and year first above
written.
Option Care, Inc. | ||||
a Delaware corporation | ||||
ATTEST: |
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By: | ||||
Name: | ||||
Title: | ||||
Executive Officer | ||||
Signature | ||||
Print Name |