Document:

exv4w3

 

Exhibit 4.3

FIRST AMENDMENT TO RIGHTS AGREEMENT

     This Agreement (“Agreement”), dated as of November 4, 2004, by and between
Assisted Living Concepts, Inc., a Nevada corporation (the “Company”), and
American Stock Transfer & Trust Company, as Rights Agent (the “Rights Agent”),
constitutes the First Amendment to the Rights Agreement, effective as of
October 1, 2004 by and between the Company and the Rights Agent (the “Rights
Agreement”).

WITNESSETH:

     WHEREAS, the parties hereto desire to amend the Rights Agreement in
certain respects on the terms and conditions hereinafter set forth;

     NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto do hereby agree as follows:

     1. The Rights Agreement is hereby amended by:

	 	(a)	 	Adding the following sentence at the end of the definition of
“Acquiring Person” in Section 1 of the Rights Agreement:

“Notwithstanding any of the terms of the
foregoing definition, no Person shall become an
“Acquiring Person” as the result of the
execution and delivery of, or the consummation
of the transactions contemplated by, the Plan of
Merger and Acquisition Agreement dated as of
November 4, 2004, and any amendments thereto,
(the “Merger Agreement”) by and among the
Company, Extendicare Health Services, Inc.
(“Parent”), and Alpha Acquisition, Inc.
(“Acquisition”), and any agreements, documents
or instruments executed or entered into by
Company and Parent or Acquisition in connection
with the Merger Agreement (collectively with the
Merger Agreement, the “Transaction Documents”).”

	 	(b)	 	Adding the following sentence at the end of the definition of
“Share Acquisition Date” in Section 1 of the Rights Agreement:

“Notwithstanding any of the terms of the
foregoing definition, no “Share Acquisition
Date” will occur as the result of the execution
and delivery of, or the consummation of the
transactions contemplated by, the Transaction
Documents, or any public announcement of any of
the foregoing.”

 

 

	 	(c)	 	Adding the following sentence at the end of the definition of
“Triggering Event” in Section 1 of the Rights Agreement:

“Notwithstanding any of the terms of the
foregoing definition, no “Triggering Event” will
occur as the result of the execution and
delivery of, or the consummation of the
transactions contemplated by, the Transaction
Documents, or any public announcement of any of
the foregoing.”

	 	(d)	 	Adding the following clause at the end of the definition of
“Distribution Date” immediately prior to the “(x)” in Section 3(a)
of the Rights Agreement:

“; provided, however, that notwithstanding any
of the terms of the foregoing definition, no
“Distribution Date” will occur as the result of
the execution and delivery of, or the
consummation of the transactions contemplated
by, the Transaction Documents”

	 	(e)	 	Adding the following sentence at the end of Section 7(a) of
the Rights Agreement:

“Notwithstanding anything in this Agreement to
the contrary, the Rights shall expire, and no
holder of any Rights shall be entitled to
exercise such Rights, immediately prior to the
occurrence of the Effective Time (as defined in
the Merger Agreement), but only if the Effective
Time shall occur.”

	 	(f)	 	Adding the following Section 35 to the Rights Agreement:

“Section 35. Termination. Immediately prior to
the occurrence of the Effective Time, but only
if the Effective Time shall occur, (a) this
Agreement shall be terminated and be without any
further force or effect, (b) none of the parties
to the Rights Agreement will have any rights,
obligations or liabilities thereunder; provided,
however, Section 18 of this Agreement shall
survive termination of this Agreement, and (c)
the holders of the Rights shall not be entitled
to any benefits, rights or other interests under
this Agreement, including, without limitation,
the right to purchase or otherwise acquire Units
or any other securities of the Company. As
promptly as is practicable following the
termination of this Agreement, the Company shall
file with the Nevada Secretary of State a
certificate withdrawing the Certificate of
Designation concerning the Junior Preferred
Stock in accordance with the applicable
provisions of the Nevada Revised Statutes.”

2

 

     2. The Company expressly acknowledges that the purpose and intent of this
Agreement is that the Rights Agreement and the Rights shall not apply to the
transactions contemplated by the Transaction Documents.

     3. All terms defined in the Rights Agreement that are used herein shall
have the meanings defined in the Rights Agreement, unless specifically defined
otherwise herein.

     4. The term “Agreement” or “Rights Agreement” as used in the Rights
Agreement shall mean the Rights Agreement, as amended by this Agreement, or as
it may from time to time be amended in the future by one or more other written
amendment or modification agreements entered into pursuant to the applicable
provisions of the Rights Agreement.

     5. This Agreement shall be binding upon and shall inure to the benefit of
the parties hereto and their respective successors and assigns.

     6. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Nevada.

     7. Except as expressly herein amended, the terms and conditions of the
Rights Agreement shall remain in full force and effect.

     8. This Agreement is not intended to be, nor shall it be construed to be,
a novation.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.

	 	 	 	 	 
	 
	 	ASSISTED LIVING CONCEPTS, INC.
	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	Name:	 	 
	

	 	 	 	

	

	 	Title:	 	 
	

	 	 	 	

	 
	 	 	 	 
	 
	 	AMERICAN STOCK TRANSFER & TRUST
COMPANY
	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	Name:	 	 
	

	 	 	 	

	

	 	Title:	 	 
	

	 	 	 	

3<PAGE>

                                                                    Exhibit 10.1

                           THE SPORTSMAN'S GUIDE INC.
                            2004 STOCK INCENTIVE PLAN

                     INCENTIVE STOCK OPTION AWARD AGREEMENT

      This Agreement is made as of ___________, 200_ (the "Grant Date"), by and
between The Sportsman's Guide, Inc. (the "Company") and ___________________ (the
"Participant").

      WHEREAS, the Committee, pursuant to the Company's 2004 Stock Incentive
Plan (the "Plan"), has made an Award to the Participant and authorized and
directed the execution and delivery of this Agreement;

      NOW, THEREFORE, in consideration of the foregoing, the mutual promises
hereinafter set forth, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Company and the Participant
hereby agree as follows:

      1.    AWARD. The Participant is hereby granted an Incentive Stock Option
            (an "Option") to purchase from the Company up to a total of ______
            shares of Common Stock of the Company at $_____ per share (the
            "Exercise Price"). The term of such Option shall be ten years,
            commencing on the Grant Date (the "Term"). This Option is intended
            to qualify as an Incentive Stock Option.

      2.    EXERCISE. The Option may be exercised only in accordance with the
            Plan, as supplemented by this Agreement, and not otherwise.

            a.    VESTING. During its Term and prior to its earlier termination
                  in accordance with Section 3 of this Agreement, the Option
                  shall vest and become exercisable in cumulative installments
                  in accordance with the following schedule:

<TABLE>
<CAPTION>
PERCENT OF OPTION                          EXERCISABLE AS OF
-----------------                          -----------------
<S>                                        <C>
33 1/3%                                    First Anniversary of the Grant Date
33 1/3%                                    Second Anniversary of the Grant Date
33 1/3%                                    Third Anniversary of the Grant Date
</TABLE>

                  The Option may be exercised for less than the full number of
                  Shares for which the Option is then exercisable.

            b.    EXERCISE. To the extent then exercisable, the Option may be
                  exercised by the Participant by giving written notice of
                  exercise to the Company in such form as may be provided by the
                  Committee, specifying the number of Shares with respect to
                  which the Option is to be exercised and such other information
                  as the Committee may require. Such exercise shall be effective
                  upon receipt by the Company of such written notice together
                  with the required

<PAGE>

                  payment of the Exercise Price and any applicable withholding
                  taxes.

            c.    PAYMENT OF EXERCISE PRICE. Payment of the Exercise Price may
                  be made by cash, check (subject to collection) or, provided
                  that such Shares have been owned by the Participant for at
                  least six months prior to such payment, by the delivery (or
                  attestation of ownership) of Shares having a Fair Market Value
                  equal to the aggregate Exercise Price and any applicable
                  withholding taxes. Alternatively, the Participant may make
                  such payment by authorizing the simultaneous sale of Shares
                  (or a sufficient portion thereof) acquired upon exercise
                  through a brokerage or similar arrangement approved in advance
                  by the Committee. Subject to the foregoing and except as
                  otherwise provided by the Committee before the Option is
                  exercised, the Company will deliver to the Participant, within
                  a reasonable period of time thereafter, a certificate or
                  certificates representing the Shares so acquired, registered
                  in the name of the Participant or in accordance with other
                  delivery instructions provided by the Participant and
                  acceptable to the Committee.

      3.    TERMINATION. Except as otherwise provided in this Section 3, the
            Option shall terminate upon the expiration of its Term or, if
            earlier, termination of the Participant's employment or other
            service.

            a.    If the Participant's employment or other service terminates
                  for any reason other than cause, disability (as defined below)
                  or death, the Participant may at any time within a period of
                  three months after such termination of employment or other
                  service exercise the Option to the extent the Option was
                  exercisable by the Participant on the date of such
                  termination.

            b.    If the Participant's employment or other service terminates
                  because of disability within the meaning of Code section
                  22(e)(3), the Participant may at any time within a period of
                  one year after such termination of employment or other service
                  exercise the Option to the extent the Option was exercisable
                  by the Participant on the date of such termination.

            c.    If the Participant dies at a time when the Option was
                  exercisable by the Participant, his or her estate, personal
                  representative or beneficiary to whom it has been transferred
                  pursuant to Section 6 hereof may, within six months following
                  the death, exercise the Option to the extent the Option might
                  have been exercised at the time of the Participant's death.

            d.    The Option may not be exercised to any extent by anyone after
                  the expiration of its Term.

<PAGE>

      4.    CHANGE OF CONTROL. Notwithstanding the provisions of Section 2(a)
            hereof, in the event of a Change of Control, the Option shall fully
            vest and become immediately exercisable in its entirety, provided
            that the Participant's employment or other service has not
            terminated prior to the date of such Change of Control.

      5.    WITHHOLDING. The Company shall withhold all applicable taxes
            required by law from all amounts paid in respect of the Option. A
            Participant may satisfy the withholding obligation (i) by paying the
            amount of any such taxes in cash or check (subject to collection),
            (ii) by the delivery (or attestation of ownership) of Shares or
            (iii) with the approval of the Committee, by having Shares deducted
            from the payment. Alternatively, the Participant may satisfy such
            obligation by authorizing the simultaneous sale of Shares (or a
            sufficient portion thereof) acquired upon exercise through a
            brokerage or similar arrangement approved in advance by the
            Committee. The amount of the withholding and, if applicable, the
            number of Shares to be delivered or deducted, as the case may be,
            shall be determined by the Committee as of when the withholding is
            required to be made, provided that the number of Shares so delivered
            or withheld shall not exceed the minimum required amount of such
            withholding.

      6.    NON-ASSIGNABILITY. The Option is not assignable or transferable
            other than by will or by the laws of descent and distribution and,
            during the Participant's life, may be exercised only by the
            Participant.

      7.    RIGHTS AS A SHAREHOLDER. A Participant shall have no rights as a
            shareholder with respect to any Shares subject to this Award until
            the date the Participant becomes the holder of record of the Shares.

      8.    NO RIGHT TO CONTINUED SERVICE. Nothing herein shall obligate the
            Company or any Subsidiary to continue the Participant's employment
            or other service for any particular period or on any particular
            basis of compensation.

      9.    BURDEN AND BENEFIT. The terms and provisions of this Agreement shall
            be binding upon, and shall inure to the benefit of, the Participant
            and his or her executors or administrators, heirs, and personal and
            legal representatives.

      10.   EXECUTION. This Option is not enforceable until this Agreement has
            been signed by the Participant and the Company. By executing this
            Agreement, the Participant shall be deemed to have accepted and
            consented to any action taken under the Plan by the Committee, the
            Board of Directors or their delegates.

      11.   GOVERNING LAW. This Agreement shall be construed and enforced in
            accordance with the laws of the State of Minnesota, without regard
            to the conflict of laws principles thereof.

                                       3
<PAGE>

      12.   MODIFICATIONS. Except for alterations and amendments permitted under
            the Plan without the consent of the Participant, no change or
            modification of this Agreement shall be valid unless it is in
            writing and signed by the parties hereto.

      13.   ENTIRE AGREEMENT. This Agreement, together with the Plan, sets forth
            all of the promises, agreements, conditions, understandings,
            warranties and representations between the parties hereto with
            respect to the Option, and there are no promises, agreements,
            conditions, understandings, warranties or representations, oral or
            written, express or implied, between them with respect to the Option
            other than as set forth herein or therein. The terms and conditions
            of the Plan are incorporated by reference herein, and to the extent
            that any conflict may exist between any term or provision of this
            Agreement and any term or provision of the Plan, the term or
            provision of the Plan shall control.

      14.   ADDITIONAL DEFINITIONS. Any capitalized term to the extent not
            defined in this Agreement shall have the same meaning as set forth
            in the Plan.

      15.   CONSTRUCTION. The use of any gender herein shall be deemed to
            include the other gender and the use of the singular herein shall be
            deemed to include the plural and vice versa, wherever appropriate.

      16.   NOTICES. Any and all notices required herein shall be addressed: (i)
            if to the Company, to the principal executive offices of the
            Company; and (ii) if to the Participant, to his or her address as
            reflected in the records of the Company.

      17.   INVALID OR UNENFORCEABLE PROVISIONS. The invalidity or
            unenforceability of any particular provision of this Agreement shall
            not affect the other provisions hereof, and this Agreement shall be
            construed in all respects as if the invalid or unenforceable
            provisions were omitted.

      IN WITNESS WHEREOF, the Company and the Participant have executed this
Agreement as of the date first above written.

                                        THE SPORTSMAN'S GUIDE, INC.

                                        By: __________________________
                                              Gregory R. Binkley
                                              President/CEO

                                        _________________________________

                                       4

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