Document:

exv10w4

 

Exhibit 10.4

          , 2006

Assisted Living Concepts, Inc.

111 West Michigan Street

Milwaukee, WI 53203

Attention: Laurie A. Bebo, President

Re: Agreement for Reimbursement Services

Dear Ms. Bebo:

This letter shall serve as the agreement (the “Agreement”) between Extendicare Health Services,
Inc., a Delaware corporation, Milwaukee, Wisconsin (“EHSI”) and Assisted Living Concepts, Inc., a
Nevada corporation, Milwaukee, Wisconsin (“ALC”) relating to the provision of certain specific
reimbursement services to ALC by EHSI.

	 	1.	 	EHSI, through its Reimbursement Services Department, shall provide to ALC the specific
reimbursement services described on Exhibit A, attached hereto and incorporated herein by
reference (the “Reimbursement Services” or “Services”). Additional Reimbursement Services
shall be provided at the request of ALC at the hourly rates set forth in Exhibit A. These
Reimbursement Services do not include the actual preparation of the Texas or other cost
reports. The Reimbursement Services only provide that EHSI shall provide advice to ALC to
enable ALC personnel to prepare the cost reports, to review the cost reports for accuracy,
to co-sign the report (as a authorized), and to respond to questions on cost reports for
those specific cost reports years for which ALC has engaged EHSI to perform the Services.
	 
	 	2.	 	ALC will engage EHSI to perform the Services for a defined cost report year. For
example, ALC will engage EHSI to provide services for the Texas 2006 Cost Reports that have
a fiscal year end of August 31, 2006. The term of this Agreement shall commence on the
date ALC becomes an independent, public company (the “Commencement Date”) and expire prior
to the commencement of the next cost report year being August 31, 2007, unless extended or
terminated pursuant hereto.
	 
	 	3.	 	ALC shall not have the right to terminate this Agreement.
	 
	 	4.	 	ALC shall have the option to extend the Term of this Agreement for one additional
period of twelve months upon written notice provided no later than three (3) months prior
to the commencement of the next cost report year, being August 31st. The
extended term shall be on the same terms, covenants and conditions except the Annual Fee
shall be $20,600.00 for the one year renewal term.

 

 

	 	5.	 	ALC shall pay EHSI the total amount of Twenty Thousand and 00/100 Dollars ($20,000.00)
(the “Fee”) for the Reimbursement Services for the Initial Term. The payment shall be paid
no later than 30 days after filing of the Texas Cost reports. The payment of the Fee shall
be made without notice, demand or setoff to EHSI by wire transfer or delivery on such
dates, time being of the essence.
	 
	 	6.	 	The parties acknowledge EHSI is acting solely as an independent contractor in the
performance of the Services. EHSI shall keep any and all information and documentation
provided to EHSI by ALC in the performance of this Agreement confidential. EHSI shall
comply with any and all laws and regulations in the performance of the Services and shall
indemnify and hold ALC harmless from any liability resulting from the delivery of the
Services.
	 
	 	7.	 	Until the expiration of five (5) years after the furnishing of all Services pursuant to
this Agreement, upon written request EHSI shall make available, to any governmental agency
having jurisdiction, this Agreement, and the books, documents and records of EHSI that are
necessary to certify the nature and extent of the costs incurred by EHSI in the performance
of this Agreement; and, if EHSI carries out any of the duties of the Agreement through a
subcontract, with a value or cost of Ten Thousand and 00/100 Dollars ($10,000.00)or more
over a twelve-(12) month period, with a Related Organization (as that term is defined by
regulation), such subcontract shall contain a clause to the effect that until the
expiration of five (5) years after the furnishing of such subcontracted services, the
Related Organization shall make available, upon written request to such governmental
agency, such subcontract, and any books, documents and records of such organization that
are necessary to verify the nature and extent of such costs.
	 
	 	8.	 	The parties shall each execute an original of the Business Associate Agreement attached
hereto as Exhibit B (the “Business Associate Agreement”), which is required pursuant to the
Health Insurance Portability and Accountability Act of 1996, Public Law Number 104-191
(“HIPAA”) and the regulations promulgated by the U.S. Department of Health and Human
Services.
	 
	 	9.	 	Any notices required or given pursuant to this agreement shall be personally delivered
or sent by certified or registered mail, return receipt requested or by a nationally
recognized courier with proof of delivery, and shall be sent to the individuals executing
this Agreement at the address set forth above with copies to the Legal Counsel for each
party.
	 
	 	10.	 	This Agreement may not be assigned by either party without the prior written consent of
the other party, which consent shall not be unreasonably withheld or delayed. This
Agreement shall be governed by the laws of the State of Wisconsin. This Agreement
constitutes the entire agreement and understanding between the parties relating to its
subject matter. This Agreement may not be modified or changed except by a written document
executed by both parties. This Agreement may be executed in one or more

2

 

	 	 	 	counterparts, each of which shall be deemed an original and all of which, when taken
together, will be deemed to constitute one and the same document.

If you are in agreement with the terms, covenants and conditions of this Agreement please indicate
your acceptance and intent to be bound thereto by executing the enclosed copy and returning it to
the undersigned.

Very Truly Yours,

Extendicare Health Services, Inc.

By:                                                             

Philip W. Small, President

The undersigned, Laurie A. Bebo, President of Assisted Living Concepts, Inc. hereby accepts the
terms, covenants and conditions of this Agreement on behalf of ALC this      day of           , 2006.

Assisted Living Concepts, Inc.

By:                                                             

Laurie A. Bebo, President

3exv10w5

 

Exhibit 10.5

MASTER TECHNOLOGY SERVICES – STANDARD PROVISIONS

AN AGREEMENT (“Agreement”) is being entered into by and between Virtual Care Provider, Inc., a
Wisconsin corporation (hereinafter “Service Provider”), with offices at 111 West Michigan Street,
Milwaukee, Wisconsin 53203, and Assisted Living Concepts (hereinafter “Client”), 111 West Michigan
Street, Milwaukee, Wisconsin 53203.

Background

Client desires to engage Service Provider from time to time pursuant to one or more Statement of
Works to perform various technology-related Projects, and Service Provider is interested in
accepting such engagements, subject to the parties’ further agreement on the scope and terms of
each such Statement of Work.

Terms and Conditions

NOW THEREFORE, unless Client and Service Provider otherwise agree in writing, the following
standards will govern the Statement of
Work(s):

1. Definitions.

     The following definitions shall apply:

	 	1.1	 	“Intellectual Property Rights” shall mean any rights under patent,
semiconductor chip protection, copyright, trade secret, trademark, or similar laws
throughout the world.
	 
	 	1.2	 	“Other Service Provider Software” shall mean any source or object code or other
materials originally created independent of work under a Statement of Work, to the
extent such code or materials are included in or used for the Work Product delivered to
Client under a Statement of Work (e.g. commercially available preexisting software).
	 
	 	1.3	 	“Work Product” shall mean the deliverable items (services, materials, products,
etc., but not hardware or software purchased from a third party supplier by Service
Provider and resold or leased to Client) that Service Provider provides or creates as
described more specifically in each applicable Statement of Work.
	 
	 	1.4	 	“Work Product IP Rights” shall mean all Intellectual Property Rights with
respect to any Work Product created pursuant to a Statement of Work and delivered to
Client by Service Provider (including without limitation any software source or object
code), except to the extent that such Intellectual Property Rights relate to Other
Service Provider Software included in the Work Product.

2. Nature And Scope Of Work.

	 	2.1	 	Statement of Work. This sets forth the general terms and conditions applicable
to Projects which may be performed by Service Provider pursuant to one or more
Statement of Works as provided below. Each Statement of Work shall be effective only
when signed by both parties.
	 
	 	2.2	 	Statement of Works. A Statement of Work is a Project description that refers
to this standard, describes work to be done pursuant to this standard, and identifies
the Work Product to be produced and delivered there under. Each Statement of Work
shall also preferably identify the services, equipment, facilities, and any other
resources to be provided by each party in order for the tasks specified in such
Statement of Work to be performed.

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2.3 Adoption Of Statement of Works; Changes. Statement of Works, changes to Statement of Works,
and amendments to these general terms and conditions shall be effective only if in writing
accompanied by dated signatures of authorized representatives of both parties. Replacement pages
initialed and dated by authorized representatives of both parties will be sufficient for that
purpose. Unless otherwise indicated, a change or amendment shall be effective on the date signed
by both parties. Each party recognizes that as various Projects are carried out, unforeseen
circumstances may result in the need to change the scope of the Project described in the Statement
of Work or may require other reasonable adjustments to the Statement of Work. Each party agrees to
consider in good faith any changes proposed by the other party to any particular Statement of Work.
However, no such Statement of Work shall be amended except in writing signed by both parties as
described above. For example, as a result of the Health Information Portability and Accountability
Act (“HIPAA”) and regulations which might be promulgated in connection therewith, certain
modifications to the Agreement and/or internal procedures may be appropriate in order to comply
therewith. Each party agrees to consider in good faith any such changes. However, no such changes
shall be required unless agreed to in a writing signed by both parties as described above. In the
event that modifications necessary as a result of HIPAA are not agreed upon within thirty days of a
party requesting in writing that a change be made for that purpose, the party requesting the change
will have the right to terminate the agreement.

3. Performance.

	 	3.1	 	Reasonable Efforts. Service Provider agrees to use commercially reasonable
effort to perform the tasks specified in and to complete the Work Product specified in
each applicable Statement of Work. Service Provider shall endeavor in good faith to
provide services in a good and workmanlike manner by personnel having a level of skill
commensurate with their responsibilities. However, Client acknowledges that
“debugging” and similar working through of technology problems is a normal part of the
computer technology development process (especially where problems derive from existing
compatibility problems between software obtained from multiple different third party
suppliers).
	 
	 	3.2	 	Target Dates. Unless otherwise expressly agreed in the Statement of Work,
scheduled performance dates are Service Provider’s best estimates only, based on its
experience. Both parties recognize that such dates are dependent on development,
resource availability, funding, assistance, incompatibility between existing software,
hardware, and communications systems, and other factors that may cause dates to shift
or interfere with completion. Upon Client’s request, Service Provider will provide
Client with reports on Service Provider’s progress with regard to specific Statement of
Works and any anticipated delays in estimated work schedules.
	 
	 	3.3	 	Third-Party Resources. References to Work Product or the assignment to Service
Provider of responsibility for particular services relating to Work Product shall not
be construed to make Service Provider responsible for securing any related Intellectual
Property Rights that may be owned or retained by third parties, unless the applicable
Statement of Work expressly makes Service Provider responsible for securing those
Intellectual Property Rights. Unless the problem arises because Service Provider fails
to provide Intellectual Property Rights that it is required to provide, Client shall
hold Service Provider harmless from all problems arising out of such Intellectual
Property Rights being used by Service Provider or Client as contemplated in a Statement
of Work. A statement or reference in a Statement of Work that Service Provider is
responsible for obtaining third-party resources, including services, equipment,
facilities, or Intellectual Property Rights, is subject to the availability of those
resources.

4. Payments.

	 	4.1	 	Method Of Compensation.
	 
	 	 	 	4.1.1 General. Client shall pay Service Provider fees for all work performed
pursuant to these standards in accordance with one of two methods: (a) fixed price;
or (b) hourly rate. The method of compensation will be specified in the Statement
of Work. If no method is specified then the work will be performed on an hourly
rate basis.

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	 	 	 	4.1.2 Fixed Price. If the fixed price method is specified in the Statement of
Work, then the Client shall pay Service Provider the total fixed price specified in
the Statement of Work in accordance with the schedule specified in the Statement of
Work. If milestones are specified in the Statement of Work with percentages of
completion, then Client shall pay Service Provider the specified percentage of the
total fixed price upon completion or attainment of each such milestone. Otherwise,
fifty percent (50%) of the fixed price specified in the Statement of Work shall be
due upon execution of the Statement of Work and the remaining fifty percent (50%)
shall be due within thirty days after delivery of the Work Product specified in the
Statement of Work where the Work Product operates as required hereunder. The fixed
price shall be payable without regard to the number of hours actually worked by
Service Provider with respect to such Statement of Work, even if the hours used to
determine the fixed price are set forth in the Statement of Work. However, any
changes to the scope of the Project identified in the Statement of Work may require
an increase in the fixed price for that Project. Such change to the scope and the
correlating fixed price shall be agreed to in writing by amendment to the applicable
Statement of Work.
	 
	 	 	 	4.1.3 Hourly Rate. If the hourly rate method is specified in the Statement of
Work, then the Client shall pay Service Provider for all work performed by Service
Provider (including travel time) pursuant to the Statement of Work at Service
Provider’s then current standard hourly rate with respect to such services. Service
Provider will advise Client of applicable hourly rates and may adjust these rates
upon 90 days written notice to Client. Where a particular service needs to be
provided and there is no standard existing rate provided therefore, Service Provider
and Client shall jointly establish an initial rate before Service Provider shall be
required to proceed therewith. If the Project is to be provided on an hourly basis,
upon Client’s request, Service Provider will provide Client with a good faith
estimate of the number of hours, costs and expenses that Service Provider reasonably
believes will be needed for Service Provider’s performance under a Statement of
Work. Such estimate will not be binding on Service Provider, but is intended to
provide Client with a reasonable expectation of the hours and costs involved with a
particular Project or task.
	 
	 	4.2	 	Expenses. Unless the Statement of Work otherwise specifies to the contrary,
Client will reimburse Service Provider for all reasonable out of pocket third-party
expenses relating to travel, telephone charges for computer connections, messenger and
shipping costs, and media charges sustained by Service Provider in providing services
to Client pursuant to the Statement of Work(s). Expenses for auto travel will be
billed at the then-applicable federal mileage rate.
	 
	 	4.3	 	Payment. All fixed price fees shall be due as specified in Section 4.1.2.
Fees for work performed on an hourly rate basis are incurred as the work is performed.
All hourly fees and expenses shall be due within thirty (30) days after receipt of an
invoice from Service Provider specifying the amount due. Any charges not paid within
thirty days after they are due shall accrue interest at the rate of one and one-half
(1.50%) per month. If Client does not pay any amount when due, Service Provider may
temporarily stop work on any Statement of Work until such amount is paid, provided that
Service Provider notifies Client of such stoppage of work. Any deadlines applicable to
Service Provider under any Statement of Work may be delayed based on the delay caused
by such work stoppage.
	 
	 	4.4	 	Compensation Upon Termination. In the event of any termination of any
Statement of Work prior to completion, payment shall immediately be due for performance
rendered pursuant to such Statement of Work, including expenses incurred in connection
with discontinuance of the work in a mutually agreed, orderly fashion.

5. Contract Administration.

	 	5.1	 	Contacts. The parties will designate and maintain Principal and Legal Contacts
for purposes of all work and business between them concerning the Statement of Works
and all notices required or permitted hereunder. These initially will be:

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	 	For Service Provider:	 	 
	 
	 

	 	For day to day matters:	 	 
	 
	 

	 	Principal Contact:
	 	Mr. Dan Weise
	 

	 	Business Phone:
	 	(414) 908-8794
	 

	 	Business Mailing Address:
	 	111 West Michigan Street
	 

	 	 	 	Milwaukee, WI 53203
	 

	 	Business Email Address:
	 	DWEISE@VCPI.COM
	 
	 	 	 	 
	 

	 	For legal matters:	 	 
	 
	 

	 	Legal Contact:
	 	Mr. Hugh McManus
	 

	 	Business Phone:
	 	(414) 908-8236
	 

	 	Business Mailing Address:
	 	111 West Michigan Street
	 

	 	 	 	Milwaukee, WI 53203
	 

	 	Business Email Address:
	 	HMCMANUS@VCPI.COM
	 
	 	 	 	 
	 

	 	For Client:	 	 
	 
	 

	 	For day to day matters:	 	 
	 
	 

	 	Principal Contact:
	 	Laurie Bebo
	 

	 	Business Phone:
	 	(414) 980-8471
	 

	 	Business Mailing Address:
	 	111 West Michigan Street
	 

	 	 	 	Milwaukee, WI 53203
	 

	 	Business Email Address:
	 	LBEBO@ALCCO.COM
	 
	 	 	 	 
	 

	 	For legal matters:	 	 
	 
	 

	 	Legal Contact:
	 	NAME
	 

	 	Business Phone:
	 	PHONE NUMBER
	 

	 	Business Mailing Address:
	 	STREET ADDRESS
	 

	 	 	 	CITY, STATE, ZIP
	 

	 	Business Email Address:
	 	EMAIL@CLIENT.COM

	 	5.2	 	Authorizations. The signature or initials of the Principal Contacts on
Statement of Works or changes or amendments to Statement of Works shall be deemed
sufficient as an authorized signature of the respective party (regardless of whether
they are company officers). For all other matters, the signature of the Legal Contacts
will also be needed. Further, all formal legal notices to a party shall be sent to the
Legal Contact.
	 
	 	5.3	 	Replacement of Principal Contact. If either party decides at any time to
replace the person serving as its Principal Contact, an officer of the party may do so
by written notice to the other party.

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	 	 	 	However, prior to Service Provider appointing a new Principal Contact for itself,
Service Provider will discuss the matter with Client.
	 
	 	5.4	 	Notification. Any formal notice pursuant to these standards shall be presumed
given three days after being sent postage prepaid by a nationally recognized overnight
courier, facsimile or mail directed to the appropriate Contact of the party being
notified.

6. Intellectual Property Issues.

	 	6.1	 	Third-Party Intellectual Property Rights. Except as otherwise stated in a
Statement of Work, Client shall have sole responsibility for obtaining any Intellectual
Property Rights of third parties necessary to enable the parties to produce and exploit
the Work Product or otherwise perform their obligations hereunder. The party required
to obtain the Intellectual Property Rights shall indemnify, defend and hold harmless
the other party (as well as any others acting by or under authority of the other party)
for any loss, liability, damage, or expense (including court costs and attorney fees)
arising out of a claim of infringement of such Intellectual Property Rights arising in
connection with Client Products or by virtue of the performance of Service Provider’s
obligations hereunder with respect thereto.
	 
	 	6.2	 	Rights In Work Product. Except as otherwise noted in the Statement of Work,
any Work Product IP Rights shall be retained and owned by Service Provider (or to the
extent Service Provider so designates, a third party). To the extent delivered to
Client, Service Provider hereby grants to Client a nonexclusive, worldwide license
under the Work Product IP Rights to copy, make, have made, use and sell, distribute,
perform, display, and prepare derivative works of the Work Product or any derivative
work thereof, albeit only for its internal business operations and for communications
with Service Provider; provided that such license is further subject to any conditions
and limitations provided by any third party who provided the software where third party
source software is specified.
	 
	 	6.3	 	Other Service Provider Software. Service Provider grants Client a worldwide,
royalty-free, nontransferable, nonexclusive license to copy, make, have made, use and
sell, distribute, perform, display, and prepare derivative works of the Other Service
Provider Software, including the right to sublicense any or all of the foregoing
rights, as necessary for the design, manufacture, sale, use, or repair of products or
software based on the Work Product.
	 
	 	6.4	 	Client’s Rights Contingent on Payment in Full. Client’s rights under Sections
6.2 through 6.3 above are contingent upon Client’s performance of its obligations under
any applicable Statement of Work, including payment of charges due, and Service
Provider retains all such rights and no right or license is granted or conveyed by
Service Provider to Client except when and as such obligations have been performed in
accordance with the terms of these standards and any other applicable standards of
Service Provider.
	 
	 	6.5	 	Trademarks. Nothing in these standards shall be deemed to give either party
any rights to use the other party’s trademarks or trade names without the other party’s
specific, written consent.

7. Confidentiality.

	 	7.1	 	Confidentiality. “Confidential Information” shall include, but not be limited
to, (a) technical processes and formulas, source or object code, product designs, fees
or sales price and other unpublished financial information, product and business plans,
and marketing data); or (b) (prior to the disclosure) identified as confidential by
class (e.g. personal medical records); (c) any health information subject to
confidentiality protection under the Health Information Portability and Accountability
Act and the regulations promulgated in connection therewith (“HIPAA Information”); or
(d) would be considered confidential by a reasonable person. Except for HIPAA
Information, Confidential Information does not include any information that is: (i)
generally

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	 	 	 	known or available to the public through no act of the receiving party, (ii) already
known to the receiving party at the time of receiving the Confidential Information,
(iii) independently developed by the receiving party; or (iv) furnished to the
receiving party by a third party with the right to do so.

	 	7.2	 	Care And Protection Of Confidential Information. During the Term of this
Agreement and for a period of five (5) years thereafter, neither party shall disclose
to any person or entity, directly or indirectly, without the prior written approval of
the other, any Confidential Information relating to the other party obtained by virtue
of this Agreement or the Services performed pursuant to the Agreement. Client shall
use reasonable care to prevent the unauthorized use or dissemination of the
Confidential Information by its employees. Reasonable care means at least the same
degree of care Client uses to protect its own confidential information from
unauthorized use or disclosure. Service Provider is hereby authorized to use the
Confidential Information in connection with any work under any Statement of Work and
for any other purpose consistent with its obligations under the applicable standards.
Nothing herein is intended to authorize Service Provider to disclose Confidential
Information to other affiliates of Service Provider, unless Client specifically agrees
that it may do so.
	 
	 	7.3	 	Exceptions. Service Provider may use or disclose the Confidential Information
if required by any request or order of any government authority, or otherwise as
required by law, or as necessary to establish and enforce Service Provider’s rights.
Service Provider may use or disclose the Confidential Information on a confidential
basis to its business, legal and financial advisors. Before disclosing that
Confidential Information for such purpose, reasonable effort must be made to notify
Client of the circumstances, and the parties shall cooperate with each other to obtain
protection for the confidentiality thereof to the extent available. Unless otherwise
compelled by court order, Service Provider shall provide at least notice of thirty (30)
days to Client before disclosing Confidential Information without Client’s permission.

	8.	 	General Limitations On Liability. Except as specifically otherwise stated in a
Statement of Work, and subject to the additional provisions of any applicable exhibit attached
hereto:

	 	8.1	 	DISCLAIMER OF WARRANTIES. EXCEPT AS PROVIDED BELOW, AND EXCEPT FOR A WARRANTY
OF NONINFRINGEMENT WITH REGARD TO USES OF THE WORK PRODUCT IP RIGHTS IN THE MANNER
CONTEMPLATED HEREIN, ALL SERVICES PROVIDED AND DELIVERIES MADE UNDER EACH STATEMENT OF
WORK, INCLUDING ALL WORK PRODUCT, IS PROVIDED “AS IS”, WITHOUT WARRANTY OF ANY KIND,
INCLUDING (WITHOUT LIMITATION) ANY WARRANTY OF TITLE, MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE. DESCRIPTIONS OR SPECIFICATIONS OF DELIVERABLES SHALL CONSTITUTE
PROJECT OBJECTIVES AND NOT EXPRESS WARRANTIES.
	 
	 	8.2	 	Exclusive Remedy. Except as otherwise specifically provided herein (e.g.
clause 6.1) Client’s exclusive remedy for any breach under any Statement of Work shall
be the re-performance of Service Provider’s services, albeit if it becomes apparent
that Service Provider is unable to satisfactorily re-perform the services in a manner
complying with the Statement of Work within a reasonable time after the problem is
identified, Client shall be entitled to recover (to the extent already paid) that
portion of the fees for Service Provider’s services that relate to the deficient
services/items, plus a one time payment of One Hundred U.S. Dollars.
	 
	 	8.3	 	EXCLUSION OF CERTAIN DAMAGES. EXCEPT AS PROVIDED IN PARAGRAPH 6.1, IN NO EVENT
SHALL SERVICE PROVIDER BE LIABLE FOR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL
DAMAGES, LOSS OF PROFITS, LOSS OF USE OF DATA OR INTERRUPTION OF BUSINESS, WHETHER SUCH
ALLEGED DAMAGES ARE ALLEGED IN TORT, CONTRACT OR INDEMNITY, EVEN IF SERVICE PROVIDER
HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT SHALL SERVICE
PROVIDER BE LIABLE FOR ANY REASON IN CONTRACT OR TORT FOR

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	 	 	 	ANY AMOUNT IN EXCESS OF THE FEES PAID BY CLIENT WITH RESPECT TO THE STATEMENT OF
WORK TO WHICH SUCH LIABILITY RELATES, PLUS THE AFORESAID PAYMENT OF ONE HUNDRED U.S.
DOLLARS.

	 	8.4.	 	Indemnification. Except as provided above in clauses 6.1 and 8.3, Client
agrees to defend or settle, and to indemnify and to hold Service Provider harmless
from, any Claim by or on behalf of any third party relating to the Work Product, or any
other work provided under any Statement of Work. “Claims” shall include without
limitation all claims, demands, actions, liabilities, losses, damages and expenses
including, without limitation, settlement costs, and reasonable attorney’s fees.

9. Term And Termination.

	 	9.1	 	Term. These standards shall be effective upon the date the first Statement of
Work referring thereto is executed, and unless (and to the extent) terminated earlier
as provided below it shall remain in force for three years after the last Statement of
Work referring thereto is executed.
	 
	 	9.2.	 	Term And Termination Of Statement Of Work.
	 
	 	 	 	9.2.1 General. Unless otherwise stated in the applicable Statement of Work or as
provided in this Section 9.2, the term of a Statement of Work shall last until
performance there under is completed.
	 
	 	 	 	9.2.2 Termination Of Statement Of Work. Either party may terminate an the
Statement of Work for its own convenience upon not less than ninety (90) days notice
to the other party with or without cause, but shall remain in effect as to fees owed
for the period prior to termination.
	 
	 	 	 	9.2.3 Termination For Breach. If a party commits a material breach of any
Statement of Work and such party fails to cure such breach within thirty (30) days
after providing notice of such breach to the other party, the non-breaching party
may terminate any or all Statements of Work by providing written notice of such
termination.
	 
	 	 	 	9.2.4 Winding Up Upon Termination Of Statement Of Work. Upon early termination of
a Statement of Work other than for a Client’s breach under Section 9.2.5, Service
Provider shall inform Client of the extent to which performance has been completed
through such date, and collect and deliver all work in process to Client upon full
payment of any amounts remaining due to Service Provider. In the event of
termination, Service Provider agrees to wind up its work in a commercially
reasonable manner and to preserve and deliver items of value created prior to
termination.
	 
	 	9.3	 	Survival. Notwithstanding any termination of a Statement of Work, the
provisions of Sections 4 (to the extent payments remain due), 6, 7, 8, 9 and 10 shall
remain in effect.
	 
	 	9.4	 	Return Of Materials. With respect to those Statement(s) of Work that are
terminated, each party shall promptly (and in no case more than 30 days) return to the
other all data, materials and other property of the other party then held by it.

10. Miscellaneous.

	 	10.1	 	Taxes. The charges specified on any Statement of Work and any hourly rates
specified by Service Provider shall be deemed not to have included taxes. Client shall
thus also be responsible for all sales, use, property, value added or similar taxes
based on the services provided. If Service Provider is required to pay such taxes, the
taxes shall be billed to Client and Client agrees to pay Service Provider (within
thirty days) the full amount of such taxes and any interest or penalties incurred due
to late payment or nonpayment of such taxes by Client.

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	 	10.2	 	Force Majeure. Either party shall be excused from delays in performing or from
its failure to perform hereunder to the extent that such delays or failures result from
causes beyond the reasonable control of such party; provided that, in order to be
excused from delay or failure to perform, such party must act diligently to remedy the
cause of such delay or failure.
	 
	 	10.3	 	No Agency Or Employment. Service Provider, in rendering performance under
Statement of Work(s) referring hereto from time to time, is acting solely as an
independent contractor. In no way is Service Provider to be construed as an employee
or agent or acting as the agent of Client in any respect. Service Provider has the
sole right to control and direct the means, manner and method by which the services
required will be performed and may perform the services at any place or locations as
Service Provider may determine. Service Provider shall provide all equipment and
materials necessary to provide services except to the extent otherwise specified in a
Statement of Work or to the extent that some of Service Provider’s work must be
performed on Client’s computer, or existing software, or in Client-specified facilities
(e.g. if Service Provider is implementing the installation of computer hardware or
software at Client’s facilities and training Client employees there).
	 
	 	10.4	 	No Exclusivity. Nothing herein or in any Statement of Work shall be construed
as establishing an exclusive arrangement between Client and Service Provider. Service
Provider shall have the right to perform any services (including without limitation the
same kinds of services provided to Client hereunder) to others during the term of the
activities hereunder, and Client shall have the right to engage others to provide any
services to Client (including without limitation the same kinds of services provided to
Client hereunder).
	 
	 	10.5	 	Severability. If any provision of a Statement of Work or any standard referred
to therein be held to be invalid, the other provisions will not be affected to the
greatest extent possible consistent with the parties’ intent.
	 
	 	10.6	 	No Waiver. The failure of either party to require the performance of any item
or obligation, or the waiver by either party of any breach shall not act as a bar to
subsequent enforcement of such term or obligation or be deemed a waiver of any
subsequent breach.
	 
	 	10.7	 	Governing Law. The validity, construction and enforcement of the obligations
of the parties relating to a Statement of Work shall be determined in accordance with
the laws of Wisconsin, and any disputes relating thereto may only be initially
litigated in a Wisconsin state court or Wisconsin federal district court.
	 
	 	10.8	 	Entire Agreement. The Statement of Work(s), together with the standards
referred to therein, and any confidentiality agreement entered into by the parties
before the date of the first Statement of Work between them subject to this standard,
constitute the entire agreement between the parties relating to the subject matter, and
supersede any prior or contemporaneous understandings, representations or agreements
relating thereto. No change, waiver, or discharge hereof shall be valid unless it is
in writing and is executed by the party against whom such change, waiver, or discharge
is sought to be enforced.
	 
	 	10.9	 	No Assignment. Neither party may, without the prior written consent of the
other party, assign or transfer any obligation incurred relating to a Statement of
Work.

Confidential

Page 8 of 9

 

IN WITNESS WHEREOF, the parties named below, by signatures of their duly authorized
representatives, have executed this Agreement on the dates set forth below, the latter of which
shall be the effective date of the Agreement.

	 	 	 	 	 	 	 	 	 
	Accepted by VCPI	 	 	 	Accepted by Assisted Living Concepts:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

Confidential

Page 9 of 9

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