Document:

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                                                                     EXHIBIT 4.3

                          AMENDMENT TO RIGHTS AGREEMENT

       Amendment to Rights Agreement dated as of June 12, 1997, between ASSISTED
LIVING CONCEPTS, INC., a Nevada corporation (the "Company"), and AMERICAN STOCK
TRANSFER & TRUST COMPANY, as Rights Agent (the "Rights Agent"), effective as of
November 8, 2000.

                                    RECITALS:

       A. On June 12, 1997, the Board of Directors of the Company adopted the
Rights Agreement dated as of June 12, 1997.

       B. On November 8, 2000, the Board of Directors approved an amendment to
the Rights Agreement to be effective as of November 8, 2000. Such amendment is
set forth below.

       NOW, THEREFORE, for valuable consideration, given and received, the
parties hereto agree as follows:

                                   AGREEMENTS:

       1. Incorporation of Recitals. Each Recital set forth above is
incorporated into this Amendment to Rights Agreement as though fully set forth
herein. Unless the context clearly provides otherwise, all capitalized terms not
otherwise defined herein shall have the same meaning as set forth in the Rights
Agreement.

       2. Amendment to Section 1. Section 1 shall be amended by adding a new
subsection, Section 1.14, the definition of "Convertible Debentures," for
purposes of the Rights Agreement, as amended:

       "Convertible Debentures" shall mean the Company's 6% convertible
subordinated debentures due November 2002 and the Company's 5.625% Convertible
Subordinated Debentures due May 2003.

       3. Amendment to Section 1.3. Section 1.3(ii)(A) shall be amended by
inserting after subsection (ii)(A)(z) the following:

       "or (xx) up to $15,000,000 in principal amount of Convertible Debentures,
including any securities issuable upon conversion thereof;".

       The parties acknowledge and understand that, as a result of the foregoing
amendment, the acquisition of up to $15,000,000 "face value" of Convertible
Debentures is not to be considered

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securities "beneficially owned" for the purpose of calculating whether that
Person is the Beneficial Owner of 15% or more of the Common Shares of the
Company then outstanding.

       3. Full Force and Effect. Except as modified and amended as set forth
herein, the Rights Agreement shall remain in full force and effect. In the event
of any inconsistency between this Amendment to Rights Agreement and the Rights
Agreement, this Amendment shall govern.

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

Date: Dec. 5, 2000                 ASSISTED LIVING CONCEPTS, INC.

                                        By: /s/ Wm. James Nichol
                                            ------------------------------------
                                            Wm. James Nicol, Chairman

Date: _____________, 2001               AMERICAN STOCK TRANSFER &
                                        TRUST COMPANY

                                        By:
                                            ------------------------------------
                                        Its:
                                            ------------------------------------

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                                                                   EXHIBIT 10.20

                         MODIFICATION AND AMENDMENT TO
                              EMPLOYMENT AGREEMENT
                               (LOCATION SPECIFIC)

REFERENCE DATE:      January 19, 2000

PARTIES:             Nancy Inez Gorshe ("EMPLOYEE")

and                  Assisted Living Concepts, Inc. ("COMPANY")
                     11835 NE Glenn Widing Drive, Building E
                     Portland, Oregon 97220-9057

                                    RECITAL:

       Employee and Company entered into that certain Employment Agreement dated
February 3, 1998 (the "AGREEMENT"), which provides for an expiration date of
February 3, 2000. Thereafter, the Board of Directors of Company promoted
Employee to Senior Vice President of Community Relations (the "NEW POSITION"),
and on November 30, 1999, the Compensation Committee approved the modifications
and amendments to the Employment Agreement set forth herein.

       NOW, THEREFORE, for valuable consideration, the receipt of which is
acknowledged, the parties agree as follows:

                                   AGREEMENTS:

       1. Employee and Company hereby agree to modify and amend the Employment
Agreement as follows:

              (a) Delete SECTION 1.1 in its entirety and insert:

                     1.1 Employment. Effective on the Commencement Date of
       February 3, 1998, Assisted Living Concepts, Inc. ("ALC") or one of its
       Affiliated Companies (defined below) hereby agrees to employ Employee,
       and Employee hereby agrees to serve the Company, on the terms and
       conditions of this Agreement. Such employment shall be for the initial
       term of two (2) years, with an automatic rollover at the end of each year
       from and after the Commencement Date for an additional year unless
       terminated by the Company by its providing written notice of such
       termination to Employee within ninety (90) days prior to the anniversary
       of the Commencement Date (in which event Employee shall have one year
       remaining until the termination of this Agreement, unless terminated
       earlier pursuant to Section 6 hereunder). For example, in the event that
       Employee were an employee of the Company on March 15, 2000 and the
       Company were not to have provided written notice to Employee between
       December 15, 1999 and March 15, 2000 that Employee's employment would
       terminate on March 15, 2001, then the term of this Agreement would
       automatically rollover an additional year to March 15, 2002 from March
       15, 2001. On the other hand, if

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       the Company were to provide written notice to Employee of the termination
       of this Agreement within 90 days prior to the anniversary date of March
       15, 2000, then this Agreement would terminate on March 15, 2001 (unless
       terminated earlier pursuant to Section 6 hereunder), and there would be
       no automatic rollover.

For purposes of this Agreement, "AFFILIATED COMPANIES" shall mean an entity
controlling, controlled by, or under common control with ALC, and shall include
a corporation which acquires the stock of ALC, should a merger occur.

              (b) Delete the last sentence of SECTION 1.2 and insert:
"Employee's position and duties may change from time to time during the term of
this Agreement. Such change might include, without limitation, Employee's place
of work being relocated at the discretion of the party to whom Employee reports,
provided that the position qualifies as Comparable Employment within the meaning
of that term, as defined in SECTION 6.2(b)."

              (c) Delete SECTION 6.2(b), in its entirety and insert: "WITHOUT
CAUSE. In the event of the termination of the employment of Employee by the
Company without cause and without the Company offering Comparable Employment
(defined below) prior to the expiration hereof, Employee shall be paid an amount
equal to that set forth in SCHEDULE 6.2(b), which is attached hereto and
incorporated herein by this reference (the "SEVERANCE AMOUNT"), and such
Severance Amount shall be paid in a lump sum within 60 days after the effective
date of the termination of employment; provided, however, that if Employee is
offered Comparable Employment with ALC or an Affiliated Company and refuses to
accept the offer of Comparable Employment, then the Company shall have no
obligation whatsoever to pay the Severance Amount. Likewise, if Employee is
offered and accepts a position with the Company which is Comparable Employment,
the Company shall have no obligation whatsoever to pay any Severance Amount due
to such change; however, this Agreement shall remain in full force and effect
until its expiration or earlier termination after such change to Comparable
Employment. "COMPARABLE EMPLOYMENT" shall mean employment with ALC or an
Affiliated Company in a position that is: (i) not materially different in level
of responsibility or duties; (ii) at the same or higher salary level; (iii) with
the same or similar title or rank; and (iv) which is to be based within a
20-mile radius of the location of Employee's prior position with the Company."

              (d) Revise "comparable employment" in SECTION 6.4 to "Comparable
Employment."

              (e) Amend the Agreement with the attached SCHEDULE 6.2(b)
reflecting the Severance Amount.

       3. FULL FORCE AND EFFECT. Except as modified and amended herein, the
Agreement shall remain in full force and effect. In the event of any
inconsistency between this Modification and Amendment Agreement (this
"MODIFICATION") and the Agreement, this Modification shall prevail.

       DUE TO THIS MODIFICATION BEING "LOCATION SPECIFIC," EMPLOYEE MUST
COMPLETE "WORK LOCATION" SET FORTH BELOW IN ORDER FOR THIS MODIFICATION TO BE
EFFECTIVE.

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        IN WITNESS WHEREOF, the parties hereto execute this Modification on the
date below written.

                                        "EMPLOYEE"

Date: 19 January, 2000                  /s/ Nancy Inez Gorshe
                                        ----------------------------------------
                                        Nancy Inez Gorshe

                                        Present Position:
                                        Senior Vice President of Community
                                        Relations

                                        Work Location:
                                        11835 NE Glenn Widing Drive, Building E
                                        Portland, Oregon 97220-9057

                                        "COMPANY"
                                        ASSISTED LIVING CONCEPTS, INC.

Date: 19 January, 2000                  By: /s/ Keren Brown Wilson
                                           -------------------------------------
                                           Keren Brown Wilson
                                           Chief Executive Officer and President

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                                 SCHEDULE 6.2(b)

              The Severance Amount shall be calculated as follows:

Employee's Annual Salary (as of the date of termination) x 24 (months) = $______
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