Full Press Release Details
EMPLOYMENT AND NON-COMPETITION AGREEMENT
This EMPLOYMENT AND NON-COMPETITION AGREEMENT (this Agreement ) is effective as of December 15, 2014 (the
Effective Date ), by and between Addus HealthCare, Inc., an Illinois corporation (the Company ), and Maxine Hochhauser, an individual domiciled in the State of Florida (the Executive ).
WHEREAS, the Company, its parent and its subsidiaries (collectively, the Addus HealthCare Group ) provide home care
services to individuals, county and state governments, health maintenance organizations, independent physician associations, insurance companies, facilities, other business purchasers of such services, and to the general public at large.
WHEREAS, the Company desires to employ the Executive as its Chief Operating Officer, and the parties hereto desire to enter this
Agreement to secure the Executive s employment, all on the terms and conditions set forth herein.
WHEREAS, by virtue of the
Executive s employment by the Company pursuant to the terms hereof, the Executive will obtain and become familiar with certain valuable confidential and proprietary information relating to the Addus HealthCare Group, its customers and
WHEREAS, the Company desires to protect the goodwill and all proprietary rights and information of the Addus HealthCare
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties hereto, intending to
be legally bound, agree as follows:
During the Employment Term, the Company will employ the
Executive as its Chief Operating Officer, a senior executive position that reports directly to the Chief Executive Officer of the Company. The Executive s principal duties and responsibilities shall be those reflected in the employment
description set forth on Exhibit A hereto.
The Company will pay the Executive as follows during the
(i) Reasonable, documented out-of-pocket expenses related to the packing and transportation of the Executive s furniture and other
personal belongings, up to $30,000;
(ii) A one-time relocation bonus of $30,000 to reimburse the Executive for other costs related to the
(iii) All reasonable, documented out-of-pocket costs of temporary housing in an agreed-upon corporate apartment unit through
July 31, 2015 (the Relocation Period ); and
(iv) All reasonable, documented out-of-pocket airfare and rental car
expenses for the Executive s trips to and from the Company s Support Center at the Company s request until the earlier of the Relocation and the end of the Relocation Period.
All Relocation Expenses will be reimbursed in accordance with the Company s established policies and procedures related to the timing of
reimbursement of expenses.
such termination is prior to the three-month anniversary of the Effective Date, the Executive will reimburse the Company for 100% of the Relocation Expenses;
(ii) If such termination is prior to the six-month anniversary of the Effective Date, the Executive will reimburse the Company for 75% of the
Relocation Expenses;
(iii) If such termination is prior to the nine-month anniversary of the Effective Date, the
Executive will reimburse the Company for 50% of the Relocation Expenses; and
(iv) If such termination is prior to the twelve-month
anniversary of the Effective Date, the Executive will reimburse the Company for 25% of the Relocation Expenses.
recognized that the Executive in the performance of her duties hereunder may be required to expend sums for travel (e.g., airfare, automobile rental, etc.), entertainment and lodging. During the Employment Term, the Company shall reimburse the
Executive for reasonable business expenses incurred by her during the Employment Term in connection with the performance of her duties hereunder conditioned upon and subject to the Company s established policies and procedures, including
written receipt from the Executive of an itemized accounting in accordance with the Company s regular business expense verification practices.
During the Employment Term, the Executive shall be entitled to
benefits under such plans, programs or arrangements as the Board of Directors may establish or maintain from time to time for similarly-situated employees, and in accordance with its policies, which may change at the sole discretion of the Board of
Directors. Benefits as of the Effective Date are:
(i) A material breach or omission by the Executive of any of her duties or obligations under this Agreement (except due to Disability, as
defined below) that the Executive shall fail to cure after receipt of written notice of such breach or omission from the Company s President and Chief Executive Officer (the CEO ) or Board of Directors, which notice shall
designate the period of time within which the breach or omission must be cured to the satisfaction of the CEO or the Board of Directors, as applicable, in order to prevent a termination for Reasonable Cause; provided, however, that the Executive
shall only be permitted the opportunity to cure such breaches or omissions a total of two times in any twelve (12)-month rolling period;
(ii) The Executive shall willfully engage in any action that materially damages, or that may reasonably be expected to materially damage, the
Addus HealthCare Group or the business or goodwill thereof;
(iii) The Executive shall breach her fiduciary duty to the Addus HealthCare
(iv) The Executive shall commit any act involving fraud, the misuse or misappropriation of money or other property of the Addus
HealthCare Group, a felony, habitual use of drugs or other intoxicants or chronic absenteeism;
(v) Gross negligence or willful misconduct
(vi) The Executive shall commit acts constituting gross insubordination, such as, without limitation, the intentional
disregard of any reasonable directive of the CEO or the Board of Directors;
(vii) The Executive shall fail to perform any material duty in a timely and effective
manner and shall fail to cure any such performance deficiency after receipt of written notice of the deficiency from the CEO or Board of Directors, which notice shall designate the period of time within which the performance deficiency must be cured
to the satisfaction of the CEO or the Board of Directors, as applicable, in order to prevent a termination for reasonable cause; provided, however, that the Executive shall only be permitted the opportunity to cure performance
deficiencies a total of two times in any twelve (12)-month rolling period; or
(viii) The Executive shall fail to relocate to the
Chicago, Illinois metropolitan area prior to the end of the Relocation Period.
The Executive may terminate her employment
with the Company (a) for Good Reason (as defined below) or (b) without Good Reason, in each case, upon not less than thirty (30) days prior written notice to the Company; provided, however, that after the receipt of such
notice, the Company may, in its discretion accelerate the effective date of such termination at any time by written notice to the Executive. Termination of the Executive s employment by the Executive shall terminate the Employment Term, but
shall not affect the Executive s obligations under Section 9 hereof, which obligations shall remain in effect for the period therein provided. As used herein, Good Reason means (i) any reduction in the
Executive s Base Salary, (ii) any material reduction to the Executive s employment duties and responsibilities, (iii) any willful breach by the Company of any material term of this Agreement, other than a breach which is remedied
by the Company within 10 days after receipt of written notice given by the Executive, or (iv) a change in the Executive s direct reporting duty to a person other than the Chief Executive Officer of the Company or the Board of Directors.
(i) Any unpaid Base Salary under Section 3(a) hereof for any period prior to the effective date of termination;
(ii) Any accrued but unpaid benefits under Section 5 hereof for any period prior to the effective date of termination; and
(iii) In the case of termination pursuant to Section 6(b), eligibility for life or disability insurance benefits described in Sections
5(e) or (f), as applicable.
Such payments shall be made to the Executive whether or not the Company chooses to utilize the services of
the Executive for the required notice period specified in Section 7.
(i) Any unpaid Base Salary under
Section 3(a) hereof for any period prior to the effective date of termination;
(ii) A pro rata portion of the bonus under
Section 3(b) hereof based on what Executive would have been entitled to receive pursuant to the Company s then-effective bonus plan had her employment not been terminated, which shall be payable following the time the Company determines
the amount of bonuses payable to its executives following the end of the year in which termination occurs;
(iii) Any accrued but unpaid
benefits under Section 5 hereof for any period prior to the effective date of termination;
(iv) Conditioned upon the
Executive s strict compliance with the post-employment restrictions described in Section 9 below and subject to applicable withholdings and deductions and early termination upon the Executive s commencement of employment with a new
employer (written notice of which shall be promptly provided by the Executive to the Company), severance pay ( Base Severance Pay ) in an amount equal to the Executive s Base Cash Compensation (as defined below) to be paid in
equal installments on the Company s regular pay dates over the twelve (12) month period following termination of the Executive s employment (subject to applicable
withholdings and deductions and early termination upon the Executive s employment with a new employer), plus, if the Executive elects to continue her health, dental and/or vision insurance
coverage under COBRA, the Executive shall be eligible to receive cash payments equal to the difference between her COBRA continuation coverage premiums and the amount of premiums paid by similarly-situated active employees of the Company under the
Company s health, dental and/or vision insurance plans, for a period of twelve (12) months following the Executive s date of termination of employment, to be paid in equal installments on the Company s regular pay dates (subject
to applicable withholdings and deductions and early termination upon the Executive s employment with a new employer).
of this Agreement, Base Cash Compensation shall mean the highest annual Base Salary in effect for the Executive.
For purposes of this Agreement, Annual Cash Compensation shall mean the sum of (a) the highest annual Base Salary in
effect for the Executive and (b) the greater of (i) the Executive s bonus for the most recently-completed year, if any, or (ii) the annualized amount of the Executive s target bonus for the then current year.
(i) Engage in, assist or have any interest in, as principal, consultant, advisor, agent,
financier or employee, any business entity that is, or that is about to become engaged in, providing goods or services in competition with the Addus HealthCare Group within a geographic radius of fifty (50) miles from any Addus HealthCare Group
(ii) Solicit or accept any business (or help any other person solicit or accept any business) from any person or entity
that on the Effective Date is a customer of the Addus HealthCare Group or during the Employment Term becomes a customer of the Addus HealthCare Group, other than a customer that does not engage in the Business;
(iii) Induce or attempt to induce any employee of the Addus HealthCare Group to terminate such employee s relationship with the Addus
HealthCare Group or in any way interfere with the relationship between the Addus HealthCare Group and any employee thereof; or
Induce or attempt to induce any customer, referral source, supplier, vendor, licensee or other business relation of the Addus HealthCare Group to cease doing business with the Addus HealthCare Group, or in any way interfere with the relationship
between any such customer, referral source, supplier, vendor, licensee or business relation, on the one hand, and the Addus HealthCare Group, on the other hand.
For purposes hereof, the term Business means the business of providing home care services of the type and nature that the
Addus HealthCare Group then performed and/or any other business activity in which the Addus HealthCare Group then performed or program or service then under active development proposed to be performed and/or any other business activity in which the
Addus HealthCare Group becomes engaged in on or after the date hereof while the Executive is employed by the Company.
hereof, the term Restrictive Period means the period beginning on the date on which the Executive s employment is terminated by the Company or the Executive for any reason and ending on the first anniversary of such date;
provided, that if the Executive s employment is terminated by the Company pursuant to Section 6(c) hereof or by the Executive pursuant to Section 7(a) hereof, or as a result of Non-Renewal by the Company, the Executive shall
use reasonable best efforts to obtain employment with a new employer beginning on the first day of the seventh month following the date on which the Executive s employment is so terminated.