Document:

Exhibit 10.7

 

EMPLOYMENT AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (“Agreement”) is made as of September 29,
1999 by and between Elizabeth V. Hopper
(“Officer”), and National Mentor, Inc.,
a Delaware corporation (“Employer”).

 

WHEREAS,
Employer desires to continue to obtain the services of Officer and Officer
desires to continue to render services to Employer; and

 

WHEREAS,
Employer and Officer desire to set forth the terms and conditions of Officer’s
continued employment with Employer under this Agreement;

 

NOW,
THEREFORE, in consideration of the foregoing and of the
mutual covenants and agreements contained in this Agreement, the parties agree
as follows:

 

STATEMENT OF AGREEMENT

 

1.                                      Employment. Employer agrees to employ Officer, and
Officer accepts such employment in accordance with the terms of this Agreement,
for an initial term of two years commencing on October 1, 1999 and, unless
terminated earlier in accordance with the terms of this Agreement, ending on September 30,
2001. After the initial term has expired, this Agreement will renew
automatically on the anniversary date of each year for a one-year term. If
either party desires not to renew the Agreement, they must provide the other
party with written notice of their intent not to renew the Agreement at least
sixty days prior to the next anniversary date. If Employer chooses not to renew
this Agreement, Employer shall continue to pay Officer the compensation
provided for in Section 4(a) of this Agreement for one year
commencing on such anniversary date.

 

2.                                      Position
and Duties of Officer. Officer will serve as Executive Vice President
and Chief Operating Officer of Employer. Officer agrees to serve in such
position, or in such. other positions of a similar status or level as Employer
determines from time to time, and to perform the commensurate duties that
Employer may assign from time to time to Officer until the expiration of the
term or such time as Officer’s employment with Employer is terminated pursuant
to this Agreement.

 

3.                                      Time
Devoted and Location of Officer.

 

(a)                                  Subject to Section 3(c), Officer
will devote his/her full business time and energy to the business affairs and
interests of Employer, and will use his/her best efforts and abilities to
promote Employer’s interests. Officer agrees that he/she will diligently
endeavor to perform services contemplated by this Agreement in a manner
consistent with his/her position and in accordance with the policies
established by the Employer and provided to Officer from time to time.

 

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(b)                                 Officer’s primary business office and
normal place of work will be located in Boston, Massachusetts.

 

(c)                                  Officer may serve as an officer,
director, agent or employee of any direct or indirect subsidiary or other
affiliate of Employer, but may not serve as an officer, director, agent or
employee of any other business enterprise without the written approval of the
Board; provided, that Officer may serve in any capacity with any civic,
educational or charitable organization, or any governmental entity or trade
association, without seeking or obtaining such written approval of the Board,
if such activities and services do not interfere or conflict with the
performance of Officer’s duties under this Agreement.

 

4.                                      Compensation.

 

(a)                                  Base Salary. Employer will pay Officer a base
salaryy in the amount of $230,000 per year, which amount will be paid in
accordance with Employer’s normal payroll schedule less appropriate
withholdings ings for federal and state taxes and other deductions authorized
by Officer. Such salary will be subject to review and adjustment by Employer
from time to time.

 

(b)                                 Benefits.
Officer will be eligible to participate in all benefit plans of Employer to the
same extent as they are made available to other senior executives of Employer
at Officer’s level. Officer will receive separate information detailing the
terms of the benefit plans and the terms of such plans will control. Officer
also will be eligible to participate in any annual incentive plan and stock
option plan applicable to Officer by its terms (including without limitation
Employer’s Executive Sale Equity Bonus Plan).

 

5.                                      Expenses.
During the term of this Agreement, Employer will reimburse Officer promptly for
all reasonable travel, entertainment, parking, business meetings and similar
expenditures in pursuance and furtherance of Employer’s businesss upon receipt
of reasonably supporting documentation as required by Employer’s policies
applicable to its officers and employees generally.

 

6.                                      Termination;
Rights upon a Change of Control.

 

(a)                                  Termination
Due to Resignation and Termination with Cause. Except as otherwise set
forth in this Agreement, this Agreement, Officer’s employment, and Officer’s
rights to receive compensation and benefits from Employer, will terminate upon
the occurrence of any of the following events: (i) the effective date of
Officer’s resignation without good reason, or (ii) termination for cause
at the discretion of Employer under the following circumstances: (a) Officer’s
commission of an act of fraud or dishonesty involving his/her duties on behalf
of Employer; (b) Officer’s willful failure or refusal to faithfully and
diligently perform material duties assigned to Officer consistent with Section 2
above, or other breach of any material term under this Agreement; (c) Officer’s
willful failure or refusal to abide by Employer’s material policies, rules,
procedures or directives; or (d) Officer’s conviction of a felony or a

 

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misdemeanor involving
moral turpitude. If Officer is terminated pursuant to this Section 6(a),
Employer’s only remaining financial obligation to Officer under this Agreement
will be to pay any earned but unpaid base salary and accrued but unpaid
vacation and reimbursable travel and entertainment expenses through the date of
Officer’s termination.

 

For the events described
in Sections 6(a)(ii)(b) and (c), Employer will give Officer written notice
of such event and a reasonable opportunity to cure such situation, but in no
event less than thirty days.

 

(b)                                 Termination Without Cause. Officer may terminate his/her
employment without cause at any time by giving thirty days written notice of
resignation to Employer. Employer may terminate this Agreement without cause at
any time by giving thirty days prior written notice to Officer. If Employer
terminates this Agreement without cause, Employer may direct Officer to cease
providing services immediately. Subject to the limitation set forth in Section 7(a) below,
if Employer terminates this Agreement without cause, Employer shall continue to
pay Officer the compensation provided for in Section 4(a) of this
Agreement for a period of time equal to the greater of (i) the remaining
term of this Agreement or (ii) two years. No other benefits or
compensation will be paid to Officer if he/she is terminated pursuant to this Section 6(b),
unless otherwise provided for in the terms of the applicable plan or benefit.

 

(c)                                  Termination by Officer for Good Reason. Officer may terminate this Agreement,
and his/her employment with Employer, for “good reason” upon the occurrence of
any of the following:

 

(i)                                     a requirement by Employer that Officer
relocate his/her primary business office more than 25 miles from its current
location in order to fulfill Officer’s duties under this Agreement;

 

(ii)                                  the
failure of Employer to comply with Section 4; or

 

(iii)                               any
material breach of this Agreement by Employer; or

 

(iv)                              the assignment to Officer of duties
materially inconsistent with Officer’s status as President and Chief Executive
Officer of Employer.

 

Prior
to terminating this Agreement pursuant to this Section, Officer shall give to
Employer written notice of his/her “good reason” for terminating this Agreement
and provide Employer with a reasonable period in which to contest or correct
the “good reason”, but in no event less than thirty days. In the event of a
termination for “good reason” pursuant to this Section, Officer will be
entitled to receive all compensation and benefits provided for in this Agreement
for a termination by Employer without cause, subject to the limitation set
forth in Section 7(a) below.

 

(d)                                 Automatic Termination. This Agreement will terminate
automatically upon the death or permanent disability of Officer. Officer will
be deemed

 

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to be “Disabled” or to
suffer from a “Disability” within the meaning of this Agreement if, because of
a physical or mental impairment, Officer has been unable to perform the
essential functions of his/her position for a period of 180 consecutive days,
or if Officer can reasonably be expected to be unable to perform the essential
functions of his/her position for such period. The term “essential duties” is
defined as the ability to consistently perform his/her assigned duties,
including travel requirements. Subject to continuing coverage under applicable
benefit plans, and except as otherwise provided in this Agreement and Employer’s
Executive Sale Equity Bonus Plan, if Officer is terminated pursuant to this Section 6(d),
Employer’s only remaining financial obligation to Officer under this Agreement
will be to pay any earned but unpaid base salary and accrued but unpaid
vacation and reimbursable travel and entertainment expenses through the date of
Officer’s termination.

 

(e)                                  Effect of Termination. Except as otherwise provided for in
this Agreement, upon termination of this Agreement, all rights and obligations
under this Agreement will cease except for the rights and obligations under
Sections 4 and 5 to the extent Officer has not been compensated or reimbursed
for services performed prior to termination or has not been paid vacation and
reimbursable travel and entertainment expenses accrued through the termination
date (the amount of compensation to be prorated for the’ portion of the pay
period prior to termination); the rights and obligations under Section 7
that expressly state that they will continue after termination of employment,
the rights and obligations under Sections 8, 9 and 10; and all procedural and
remedial provisions of this Agreement. A termination of this Agreement will
constitute a termination of Officer’s employment with Employer.

 

7.                                      Rights
upon a Change of Control; Retention Bonus.

 

(a)                                  Rights Upon a Change of Control.

 

(i) For
purposes of this Agreement, a “change of control” of Employer will take place
upon the occurrence of any of the following events: (a) the acquisition
after the beginning of the term in one or more transactions of beneficial
ownership (within the meaning of Rule 13d-3(a)(1) under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) by any person
or entity (other than a wholly owned subsidiary of Magellan Health Services, Inc.
(“Magellan”)), or any group of persons or entities who constitute a group (within
the meaning of Rule 13d-5 of the Exchange Act), of any securities of
Employer such that as a result of such acquisition such person or entity or
group beneficially owns (within the meaning of Rule 13d3(a)(1) under
the Exchange Act) more than 50% of Employer’s then outstanding voting
securities entitled to vote on a regular basis for a majority of the Board of
Directors of Employer; or (b) the sale of all or substantially all of the
assets of Employer (including, without limitation, by way of merger, consolidation,
lease or transfer) in a transaction where Employer or Magellan do not receive (i) voting
securities representing a majority of the voting power entitled to vote on a
regular basis for the Board of Directors of the acquiring entity or of an affiliate
which controls the acquiring entity, or (ii) securities representing a
majority of the equity interest in the acquiring entity or of an affiliate that

 

4

 

controls the acquiring
entity, if other than a corporation. The foregoing notwithstanding, a spinoff
or other similar distribution of the shares or business of Mentor shall not
constitute a change of control for purposes of this Agreement.

 

(ii) In
the event of a change of control of Employer occurs during the term of Officer’s
employment hereunder, (or within six months after the term of Officer’s
employment hereunder ends due to non-renewal of this Agreement by Employer,
termination by Employer without cause, termination by Officer for good reason, or
termination due to death or disability as contemplated by Section 6(d))
Officer shall be entitled to receive a lump sum payment of (a) 100% of her
Base Salary paid on the date of the closing of the transaction constituting
such change in control, and (b) 100% of her Base Salary on the first
anniversary of such closing. Officer shall not be entitled to any such payment
provided in the preceding clause (b), if prior to the time for payment thereof,
(x) Employer shall have terminated Officer’s Employment with Cause, (y) Officer
shall have terminated her Employment without good reason (as defined above), or
(z) Officer shall have violated the covenants set forth in Section 8
hereof, unless prior to the occurrence of (x), (y) or (z) above, Officer shall
have entered into a new Employment Agreement with the party acquiring control
in such change of control transaction. Any amounts paid to Officer upon a
change of control as contemplated by this Section 7(a) shall be in
lieu of any amounts otherwise payable to Officer under the last sentence of Section 1,
or Section 6(b) or Section 6(c) hereof.

 

(iii) Alternatively,
if there is a change of control. (as defined above mutatis mutandis) of
Magellan during the term of this Agreement, and Employer is still a subsidiary
of Magellan at the time of such change of control, Officer will be entitled to
terminate this Agreement within 90 days after such change of control, and upon
such termination will be entitled to all of the compensation provided in Section 4(a) of
this Agreement for a period of one year. Any amounts payable to Officer upon a
change of control of Magellan as contemplated by this paragraph shall be
applied towards any amounts otherwise payable to Officer under the last
sentence of Section 1, or Section 6(b) or Section 6(c) hereof.

 

(iv) If
Officer becomes entitled to any payments (whether hereunder or otherwise) by
reason of an event described in Internal Revenue Code Section 280G (a “Parachute
Event”) that would constitute “excess parachute payments” (as defined in
Internal Revenue Code Section 280G) if paid, then Officer’s entitlement to
such payments will be reduced by such amount as will cause none of such
payments to constitute excess parachute payments, if, and only if, the net
amount received by Officer by reason of the Parachute Event, after imposition
of all applicable taxes (including taxes under Internal Revenue Code Section 4999),
would be greater after such reduction than if such reduction were riot made.

 

(b)                                 Retention Bonus. Employer shall pay to Officer a
retention bonus of, 100% of the base salary figure stated in Section 4(a) above on the second anniversary of the date of this
Agreement, provided that prior to such time Officer has not been terminated for
cause, or terminated his/her employment without good reason, or

 

5

 

terminated his or her
employment after a change in control of Magellan as contemplated by Section 7(a)(iii) above,
and provided further, that no transaction involving a change of control of
Employer (as defined above) has occurred by that time. Alternatively, and in
lieu of the foregoing retention bonus, in the event of a spinoff or other
similar distribution of the shares or business of Mentor, Employer shall pay to
Officer a retention bonus of 100% of the base salary figure stated in Section 4(a) above
on each of the first and second anniversaries of the closing of such spinoff,
provided that Officer has not been terminated for cause or terminated his/her
employment without good reason prior to such time. In the event that Employer
adopts any “above
target” bonus
program, any amounts paid to Officer thereunder shall be credited toward
payment of the foregoing retention bonuses.

 

8.                                      Protection
of Confidential Information/Non-Competition/Non-Solicitation. 

 

Officer covenants and
agrees as follows:

 

(a)                                  During Employer’s employment of Officer
and for a period of eighteen months following the termination of Officer’s
employment for any reason, Officer will not use or disclose, directly or
indirectly, for any reason whatsoever or in any way, other than at the
direction of Employer (with the written consent of Magellan) during the course
of Officer’s employment, or following the termination of Officer’s employment
after receipt of the prior written consent of Employer, any confidential
information or trade secrets of Employer or its controlled subsidiaries or
affiliates, including, but not limited to, the following: lists of past,
current or potential customers of Employer and its controlled subsidiaries and
affiliates; all systems, manuals, materials, processes and other intellectual
property of any type used by Employer or its controlled subsidiaries and
affiliates in connection with their respective business operations; financial
statements, cost reports and other financial information; contract proposals
and bidding information; rate and fee structures; policies and procedures
developed as part of a confidential business plan; and management systems and
procedures, including manuals and supplements (collectively, the “Confidential
Information”). The obligation not to use or disclose any Confidential
Information will not apply to: (i) any Confidential Information known by
Officer before commencing employment with Employer, (ii) Confidential Information
which Officer obtains from a third party, provided Officer has no actual or
constructive knowledge that the third party obtained the Confidential
Information by wrongful or inappropriate means, (iii) following the,
termination of the employment of Officer with Employer, to any information that
is or becomes public knowledge through no fault of Officer, and that may be
utilized by the public without any direct or indirect obligation to Employer,
but the termination of the obligation for non-use or nondisclosure by reason of
such information becoming public will extend only from the date such
information becomes public knowledge, or (iv) disclosure compelled by
legal process. The above will be without prejudice to any rights or remedies of
Employer under any state or federal law protecting trade secrets or other
information.

 

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(b)                                 Officer
covenants and agrees that during the term of his/her employment with Employer
and for a period of twelve months immediately following the termination of said
employment for any reason, he/she will not, directly or indirectly, seek,
obtain or accept a “Competitive Position” in the “Restricted Territory” with a “Competitor”
of Employer.

 

The
following definitions shall apply to this Section:

 

•                                          “Competitor”
means any business, individual, partnership, joint venture, association, firm,
corporation or other entity engaged, wholly or in part, in the provision or
sale of therapeutic foster care or other home or community-based healthcare or
human services (the “Competitive Business”).

 

•                                          “Competitive
Position” means any position (including a consulting position) or employment
with a “Competitor” of Employer in which Officer is engaged in corporate or
operational management of the part of such Competitor’s business which
constitutes a Competitive Business.

 

•                                          “Restricted
Territory” is the geographic area set forth in Exhibit A to this
Agreement. The parties agree to review the geographic area included within the
Restricted Territory from time to time at either party’s request and the
Restricted Territory will thereafter be modified so that its coverage extends
to, but only to, the geographic area necessary to protect the interest of the
Employer and its controlled subsidiaries and affiliates engaged in the
provision or sale of therapeutic foster care or other home or community-based
healthcare or human services. No such reformation will be valid unless it is
evidenced by written amendment to this Agreement and signed by both parties.

 

(c)                                  To protect the goodwill of Employer and
its controlled subsidiaries and affiliates, or the customers of Employer and
its controlled subsidiaries and affiliates, Officer agrees that, for a period
of eighteen months immediately following the termination of his/her employment
with Employer, he/she will not, without the prior written permission of
Employer, directly or indirectly, for himself or herself or on behalf of any
other person or entity, solicit, divert away, take away or attempt to solicit or
take away any Customer of Employer for purposes of providing or selling or
providing therapeutic foster care or other home or community based healthcare
or human services if Employer, or the particular controlled subsidiary or
affiliate of Employer, is then still engaged in the sale or provision of such
services at the time of the solicitation. For purposes of this Section 8(c),
“Customer” means any individual or entity to whom Employer or its controlled
subsidiaries or affiliates has provided, or contracted to provide, therapeutic
foster care or other” home or community-based healthcare or human services, and
with whom Officer had, alone or in conjunction with others, Material Contact
during the twelve months prior to the termination of her employment. For
purposes of this Section 8(c), Officer had “Material Contact” with a
customer if (i) Officer had business dealings with the customer on behalf
of Employer or its controlled subsidiaries or affiliates; (ii) Officer was
responsible for supervising or coordinating the

 

7

 

dealings between the
customer and Employer or its controlled subsidiaries or affiliates; or (iii) Officer
obtained trade secrets or confidential information about the customer as a
result of Officer’s association with Employer or its controlled subsidiaries or
affiliates.

 

(d)                                 During Employer’s employment of .Officer
and for a period of eighteen months following the termination of Officer’s
employment with Employer for any reason, Officer will not solicit for
employment, directly or indirectly, any employee of Employer or any of its
controlled subsidiaries or affiliates who was employed with Employer or its
controlled subsidiaries or affiliates within the one year period immediately
prior to Officer’s termination.

 

(e)                                  Employer may, with the prior written
consent of Magellan, waive compliance with one or more of the covenants of
Officer set forth in this Section 8 for the purpose of facilitating the
negotiation of the acquisition of Employer by a third party. Such a waiver must
be made in writing and executed by Employer and Magellan, and shall be
effective only with respect to the acts specifically described therein.

 

9.                                      Work
Made for Hire. Officer agrees that any written program materials, protocols,
research papers and all other writings (the “Work”), which Officer develops for
Employer’s use, or for use by Employer’s controlled subsidiaries or affiliates,
during the term of this Agreement, will be considered “work made for hire”
within the meaning of the United States Copyright Act, Title 17, United States
Code, which vests all copyright interest in and to the Work in the Employer. In
the event, however, that any court of competent jurisdiction finally declares
that the Work is not or was not a work made for hire as agreed, Officer agrees
to assign, convey, and transfer to the Employer all right, title and interest
Officer may presently have or may have or be deemed to have in and to any such
Work and in the copyright of such work, including but not limited to, all
rights of reproduction, distribution, publication, public performance, public
display and preparation of derivative works, and all rights of ownership and
possession of the original fixation of the Work and any and all copies. Additionally,
Officer agrees to execute any documents necessary for Employer to record and/or
perfect its ownership of the Work and the applicable copyright. The foregoing
will not apply to any writings Officer develops which are not for Employer’s
use or are in each instance specifically excluded in advance of publication
from the coverage of the foregoing by Employer’s Board of Directors.

 

10.                               Property
of Employer. Officer agrees that, upon the termination of Officer’s
employment with Employer, Officer will immediately surrender to Employer all
property, equipment, funds, lists, books, records and other materials of
Employer or its controlled subsidiaries or affiliates in the possession of or
provided to Officer, provided, however, Officer shall be entitled to retain
individualized bound volumes of transaction documents in which Officer provided
services.

 

11.                               Governing
Law. This Agreement and all issues relating to the validity,
interpretation and performance will be governed by and interpreted under the
laws of the State of Maryland.

 

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12.                               Remedies.
Employer and Officer agree that an actual or threatened violation by Officer of
the covenants and obligations set forth in Sections 8, 9 and 10 will cause
irreparable harm to Employer or its controlled subsidiaries or affiliates and
that the remedy at law for any such violation will be inadequate. Officer
agrees, therefore, that Employer or its controlled subsidiaries or affiliates
will be entitled to appropriate equitable relief, including, but not limited
to, a temporary restraining order and a preliminary injunction, without the
necessity of posting a bond. The provisions of Sections 8, 9 and 10 will
survive the termination of this Agreement in accordance with the terms set
forth’in each Section.

 

13.                               Arbitration.
Except for an action for injunctive relief as described in Section 12, any
disputes or controversies arising under this Agreement will be settled by
arbitration in Boston, Massachusetts in accordance with the rules of the
American Arbitration Association relating to the arbitration of employment
disputes. The determination and findings of such arbitrators will be final and
binding on all parties and may be enforced, if necessary, in any court of
competent jurisdiction.

 

	
  /s/ EVH

  	
   

  
	
  Officer’s

  
	
  Initials

  

 

14.                               Notices.
Any notice or request required or permitted to be given to any party will be
given in writing and, excepting personal delivery, will be given at the address
set forth below or at such other address as such party may designate by written
notice to the other party to this Agreement:

 

	
  To Officer:

  	
   

  	
  Elizabeth V. Hopper

  
	
   

  	
   

  	
  804 Island Circle West

  
	
   

  	
   

  	
  Dataw Island, SC 29920

  
	
   

  	
   

  	
   

  
	
  To Employer:

  	
   

  	
  National Mentor, Inc.

  
	
   

  	
   

  	
  313 Congress Street

  
	
   

  	
   

  	
  Boston, Massachusetts 02210

  
	
   

  	
   

  	
  Attention: General
  Counsel

  
	
   

  	
   

  	
  Facsimile: 617-790-4941

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Magellan Health
  Services, Inc.

  
	
   

  	
   

  	
  6950 Columbia Gateway
  Drive

  
	
   

  	
   

  	
  Columbia, Maryland
  21046

  
	
   

  	
   

  	
  Attention: General
  Counsel

  
	
   

  	
   

  	
  Facsimile: 414-953-5207

  

 

Each notice given in accordance
with this Section will be deemed to have been given, if personally
delivered, on the date personally delivered; if delivered by facsimile
transmission, when sent and confirmation of receipt is received; or, if mailed,
on the third

 

9

 

day following the day on
which it is deposited in the United States mail, certified or registered mail,
return receipt requested, with postage prepaid, to the address last. given in
accordance with this Section.

 

15.                               Headings.
The headings of the sections of this Agreement have been inserted for
convenience of reference only and should not be construed or interpreted to
restrict or modify any of the terms or provisions of this Agreement.

 

16.                               Severability.
If any provision of this Agreement is held to be illegal, invalid, or
unenforceable under present or future laws effective during the term of this
Agreement, such provision will be fully severable and this Agreement and each
separate provision will be construed and enforced as if such illegal, invalid
or unenforceable provision had never comprised a part of this Agreement, and
the remaining provisions of this Agreement will remain in full force and effect
and will not be affected by the illegal, invalid or unenforceable provision or
by its severance from this Agreement. In addition, in lieu of such illegal,
invalid or unenforceable provision, there will be added automatically, as a
part of this Agreement, a provision as similar in terms to such illegal,
invalid or unenforceable provision as may be possible and be legal, valid and
enforceable, if such reformation is allowable under applicable law.

 

17.                               Binding
Effect. This Agreement will be binding upon and shall inure to the
benefit of each party and each party’s respective successors, heirs and legal
representatives. This Agreement may not be assigned by Officer to any other
person or entity but may be assigned by Employer to any wholly-owned subsidiary
or affiliate of Employer or to any successor to or transferee of all, or any
part, of the stock or assets of Employer.

 

18.                               Employer
Policies, Regulations and Guidelines for Officers. Employer may issue
policies, rules, regulations, guidelines, procedures or other material, whether
in the form of handbooks, memoranda, or otherwise, relating to its officers.
These materials are general guidelines for Officer’s information and will not
be construed to alter, modify or amend this Agreement for any purpose
whatsoever.

 

19.                               Entire
Agreement. This Agreement embodies the entire agreement and
understanding between the parties with respect to its subject matter and
supersedes all prior agreements and understandings, whether written or oral,
relating to its subject matter, unless expressly provided otherwise within this
Agreement. No amendment or modification of this Agreement will be valid unless
made in writing and signed by each of the parties and countersigned by
Magellan. No representations, inducements or agreements have been made to
induce either Officer or Employer to enter into this Agreement which are not
expressly set forth within this Agreement. Officer and Employer acknowledge and
agree that Employer’s wholly-owned subsidiaries and affiliates are express
third party beneficiaries of this Agreement.

 

*                                         *                                         *

 

10

 

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

 

	
  ELIZABETH
  V. HOPPER

  	
  NATIONAL
  MENTOR, INC.

  
	
  “Officer”

  	
  “Employer”

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Elizabeth V. Hopper

  	
   

  	
  By:

  	
  /s/ Gregory Torres

  	
   

  
	
   

  	
  Name:

  	
  Gregory Torres

  	
   

  
	
   

  	
  Title:

  	
  President and CEO

  	
   

  
							

 

 

EXHIBIT A

Restricted Territory

 

The Restricted Territory
is any location within a radius of fifty miles of any existing operation of
Employer, or its affiliates or controlled subsidiaries, engaged in the
provision or sale of therapeutic foster care or other home or community-based
healthcare or human services.Exhibit 10.8

 

FIRST AMENDMENT TO
EMPLOYMENT AGREEMENT

 

THIS
FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”),
dated as of March 9 , 2001, is made to the Employment Agreement
(the “Employment Agreement”), dated as of September 29, 1999, by
and between Elizabeth V. Hopper (“Officer”) and National Mentor, Inc.,
a Delaware corporation (“Employer”). All capitalized terms used herein
and not otherwise defined herein shall have the meanings given to such terms in
the Employment Agreement.

 

WHEREAS,
Officer and National Mentor Holdings, Inc., a Delaware corporation and the
parent corporation of Employer, are party to that certain Management Stock
Purchase Agreement, dated as of the date hereof;

 

WHEREAS,
in connection with the purchase and sale of stock thereunder, Officer has
agreed to enter into this Amendment; and

 

WHEREAS,
the parties hereto wish to amend the Employment Agreement as set forth herein.

 

NOW
THEREFORE, for good and valuable consideration, the sufficiency of which is
hereby acknowledged, the parties hereto hereby amend the Employment Agreement
as follows:

 

1.                                       The
title of Section 6 is hereby deleted in its entirety and the following is
substituted in its place:

 

“6.                                Termination”

 

2.                                       The
last sentence of Section 6(c) of the Employment Agreement, which
begins with the words “In the event of a termination,” is hereby deleted in its
entirety and the following is substituted in its place:

 

“In the event of a
termination for “good reason” pursuant to this Section, Officer will be
entitled to receive all compensation and benefits provided for in this
Agreement for a termination by Employer without cause.”

 

3.                                       Section 6(e) of
the Employment Agreement is hereby deleted in its entirety and the following is
substituted in its place:

 

“(e) Effect
of Termination. Except as otherwise provided for in this Agreement, upon
termination of this Agreement, all rights and obligations under this Agreement
will cease except for the rights and obligations under Sections 4 and 5 to the
extent Officer has not been compensated or reimbursed for services performed
prior to termination or has not been

 

1

 

paid vacation and
reimbursable travel and entertainment expenses accrued through the termination
date (the amount of compensation to be prorated for the portion of the pay
period prior to termination); the rights and obligations under Sections 8, 9
and 10; and all procedural and remedial provisions of this Agreement. A
termination of this Agreement will constitute a termination of Officer’s
employment with Employer.”

 

4.                                       Section 7 of the Employment
Agreement, entitled “Rights upon, a Change of Control; Retention Bonus,” is
hereby deleted in its entirety.

 

5.                                       In
each place where the word “Magellan” appears in the Employment Agreement such
word shall be deleted and substituted in its place shall be the following:

 

“National Mentor
Holdings, Inc.”

 

6.                                       The
word “Maryland” in Section 10 of the Employment Agreement entitled “Governing
Law” is hereby deleted and the following is substituted in its place:

 

“Massachusetts”

 

7.                                       The
name “Magellan Health Services, Inc.” and the address information
appearing under such name in Section 14 of the Employment Agreement is
hereby deleted in its entirety and the following is substituted in its place:

 

“National Mentor Holdings, Inc.

c/o Madison Dearborn
Capital Partners, LLC

Three First National
Plaza, Suite 3800

Chicago, Illinois 60602

Attention: Timothy
Sullivan

Fax No. (312) 895-1001”

 

8.                                       The
second sentence of Section 19 of the Employment Agreement, which begins
with the words “No amendment or modification,” is hereby deleted in its
entirety and the following is substituted in its place:

 

“No amendment or
modification of this Agreement will be valid unless made in writing and signed
by each of the parties and countersigned by Madison Dearborn Capital Partners,
LLC.”

 

9.                                       Full
Force and Effect. Except as expressly amended or modified hereby, the
Employment Agreement will and does remain in full force and effect.

 

10.                                 Counterparts.
This Amendment may be executed simultaneously in two or more counterparts, any
one of which need not contain the signatures of more than one party, but all
such counterparts taken together shall constitute one and the same Amendment.

 

2

 

11.                                 No
Strict Construction. The language used in this Amendment shall be deemed to
be the language chosen by the parties hereto to express their mutual intent,
and no rule of strict construction shall be applied against any person.

 

*                                         *                                         *                                         *                                         *

 

3

 

IN
WITNESS WHEREOF, this Amendment has been duly executed as of
the date and year first written above.

 

	
   

  	
  NATIONAL
  MENTOR, INC.

  
	
   

  	
  “Employer”

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Torres

  
	
   

  	
   

  	
  Name: Gregory Torres

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Elizabeth V. Hopper

  
	
   

  	
   

  	
  “Officer”

  
	
   

  	
   

  	
  /s/ Elizabeth V. Hopper

  

 

ACKNOWLEDGED AND AGREED

this 9th
day of March, 2001

 

	
  MAGELLAN
  HEALTH SERVICES, INC.

  
	
   

  
	
  By:

  	
  /s/ Mark S. Demilio

  	
   

  
	
  Name: Mark S. Demilio

  
	
  Title: Executive Vice
  President, Finance and Legal

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