Document:

Amended and Restated Employment and Non-Competition Agreement - Mark S. Heaney

 Exhibit 10.2 
 AMENDED AND RESTATED 
 EMPLOYMENT AND NON-COMPETITION AGREEMENT 
 THIS AMENDED AND RESTATED EMPLOYMENT AND NON-COMPETITION AGREEMENT is executed on this 6th day of May, 2008 (this “Agreement”), and will be made effective as of the date hereof (the
“Effective Date”), by and between ADDUS HEALTHCARE, INC., an Illinois corporation (“Corporation”), and Mark S. Heaney, an individual domiciled in the State of Indiana (“Executive”).

 WITNESSETH: 
 WHEREAS, Corporation is currently engaged in the business of providing professional home care services under both contracts with state and local government agencies and contracts with private payors (the “Business”).

 WHEREAS, Corporation and Executive are party to an existing Employment and Non-Competition Agreement, dated as of
September 19, 2006 (the “Original Employment Agreement”). 
 WHEREAS, Corporation and Executive entered into the
Original Employment Agreement, which is amended and restated in its entirety by this Agreement, and Corporation desires to continue to employ Executive and Executive desires to continue to be employed by Corporation, all upon the terms and
conditions hereinafter set forth. 
 WHEREAS, the parties desire that upon the Effective Date, the Original Employment Agreement shall
automatically terminate with no further action required by the parties hereto, be of no further force and effect, and this Agreement shall govern the relationship between the parties. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties hereto, intending to be legally bound, agree
as follows: 
 1. Term of Employment. Corporation hereby employs Executive, and Executive hereby accepts employment by Corporation,
for the period commencing on the Effective Date 

  

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and ending September 19, 2011 (hereinafter called the “Employment Term”), subject to earlier termination as hereinafter set forth in
Paragraph 6 or 7. During the Employment Term, Executive shall (i) devote substantially all of his business time, loyalty and efforts to discharge his duties hereunder on a timely basis; (ii) use his best efforts to loyally and diligently
serve the business and affairs of Corporation; and (iii) endeavor in all respects to promote, advance and further Corporation’s interests in all matters. 
 2. Employment Duties. Corporation agrees to employ Executive during the Employment Term as its President and Chief Executive Officer. Executive shall be subject to the authority of the Board of Directors of
Addus Holding Corporation, a Delaware corporation (the “Board of Directors”) and shall report directly to the Board of Directors. Executive’s principal duties and responsibilities shall be to oversee and direct the
Corporation’s operations including the management, marketing and delivery of home care and adult day care services and the performance of such other executive duties and responsibilities as may be assigned to him by the Board of Directors and
are consistent with the Executive’s position as President and Chief Executive Officer of the Corporation. 
 3. Compensation.
Corporation will pay Executive as follows during the Employment Term: 
 (a) Base salary. Base salary starting at the rate of $325,000
per annum (“Base Salary”), which shall be paid in accordance with the normal payroll practices of Corporation and shall be subject to review and adjustment in the sole discretion of the Board of Directors. 
 (b) Bonus. Executive shall be further compensated according to the Bonus Plan attached as Exhibit 1 hereto. 
 4. Expenses. It is recognized that Executive in the performance of his duties hereunder may be required to expend sums for travel, entertainment
and lodging. During the Employment Term, Corporation shall reimburse Executive for reasonable business expenses incurred by him during the Employment Term in connection with the performance of his duties hereunder conditioned upon and subject to
written receipt from Executive of an itemized accounting in accordance with Corporation’s regular business expense verification practices. 
  

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 5. Fringe Benefits. During the Employment Term, Executive shall be entitled to the following
benefits: 
 (a) Executive will be eligible to participate in all employee benefit programs generally available to senior executive officers
of Corporation. 
 (b) Executive shall be entitled to (i) four (4) weeks of paid vacation during each calendar year and
(ii) paid holidays in accordance with Corporation’s established policies. 
 (c) Executive shall be entitled to paid disability
insurance benefits in the same amount and to the same extent as provided to the Chairman of the Board or Chief Financial Officer of the Corporation. 
 (d) Corporation will provide a 10-Year Level Term Life insurance policy insuring the life of Executive and providing a minimum death benefit equal to 5 times the Executive’s base salary, payable to such
beneficiaries as Executive shall designate; provided, that Corporation shall not be required to spend greater than three percent (3%) of the Base Salary in purchasing such insurance policy. 
 The above Paragraph 5(d) shall have no effect on the Northwestern Mutual Life “65 Whole Life” insurance plan in place between the Corporation
and Executive as Executive’s retirement plan. Under this plan, the Corporation pays the annual premium of approximately $27,000, and the Executive’s W2 is increased by that amount as additional bonus. Executive shall provide the
Corporation with such assistance as may reasonably be requested for purposes of determining or verifying the amounts payable pursuant to Paragraph 5(d) hereof (the “Gross-Up Provision”), including furnishing Corporation with copies
of his federal, state and local tax returns for any calendar year during the Employment Term. If, based on the actual tax liability of Executive in any calendar year, it is determined that the amount paid to Executive pursuant to the Gross-Up
Provision in any year differs from the amount to which Executive was entitled hereunder, Executive agrees to promptly remit to Corporation the amount of any overpayment and Corporation agrees to promptly pay to Executive the amount of any
deficiency. 
 (e) A Corporation provided vehicle of a similar type, style and cost as Executive is currently provided. 
  

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 6. Termination by Corporation. 
 (a) Corporation may terminate Executive’s employment hereunder for reasonable cause. The term “reasonable cause” shall be limited to the
following: 
 (i) (A) Executive’s commission of any act involving the misuse or misappropriation of money or other
property of Corporation or a felony or habitual use of drugs or intoxicants; or (B) Executive’s willful engagement in other gross conduct (similar in nature to the circumstances described in the foregoing clause (A)) which is materially
and demonstrably injurious to Corporation. 
 (ii) Executive’s (A) death or (B) disability (by reason of
physical or mental disease, defect, accident or illness) such that Executive is or, in the opinion of an independent physician retained by Corporation for purposes of making this determination will be, unable for an aggregate of one hundred eighty
(180) or more days during any continuous 12-month period to render the services required of him hereunder (in which event Executive shall be deemed permanently disabled); or 
 (iii) Executive’s violation of any material term or provision of this Agreement including, without limitation, Paragraph 9 hereof,
provided such violation is not remedied within thirty (30) days after notice thereof to Executive. 
 Termination of Executive’s employment for
reasonable cause shall terminate the Employment Term but shall not affect Executive’s obligation pursuant to Paragraph 9 hereof, which obligation shall remain in effect for the period therein provided. 
 (b) Corporation may terminate Executive’s employment hereunder for any reason at any time. Termination of Executive’s employment by Corporation
for any reason (including, without limitation, the non-renewal by the Corporation of the Employment Term upon the expiration thereof) other than reasonable cause shall terminate the Employment Term but shall not affect Corporation’s obligation
pursuant to Paragraph 8 hereof or Executive’s obligation pursuant to Paragraph 9 hereof. 
  

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 7. Termination by Executive. Executive may terminate his obligations hereunder upon not less than
one hundred and eighty (180) days prior written notice to Corporation; provided, however, that (a) the Corporation, at its sole option, may waive all or any portion of such notice requirement and (b) the Corporation shall waive such
notice requirement for that period for which Executive shall have paid the Corporation an amount equal to the base salary, prior to withholding and income taxes, which Executive would otherwise be entitled to receive for such period. Termination of
Executive’s employment by Executive shall terminate the Employment Term but shall not affect Executive’s obligation pursuant to Paragraph 9 hereof. 
 8. Rights Upon Termination. 
 (a) If Executive’s employment is terminated by Corporation pursuant
to Paragraph 6(a)(i), (ii) or (iii) hereof, Executive shall have no further rights against Corporation hereunder, except for the right to receive (i) any unpaid Base Salary under Paragraph 3(a) hereof with respect to the period prior
to the effective date of termination; (ii) any accrued but unpaid bonus for any period prior to the effective date of such termination which was earned in accordance with the terms of Paragraph 3(b) hereof, and (iii) any accrued but unpaid
benefits under Paragraph 5 hereof; provided, however, that if Executive’s employment is terminated pursuant to Paragraph 6(a)(i) or (iii) hereof, then Executive shall not be entitled to any unpaid bonus payment described in clause
(ii) above. 
 (b) If Executive’s employment is terminated by Corporation pursuant to Paragraph 6(b) hereof, Executive shall be
entitled to, in lieu of any further salary payments to Executive for periods subsequent to the date of termination, (i) any unpaid Base Salary under Paragraph 3(a) hereof with respect to the period prior to the effective date of termination;
(ii) any accrued but unpaid bonus for any period prior to the effective date of such termination which was earned in accordance with the terms of Paragraph 3(b), (iii) any accrued but unpaid benefits under Paragraph 5 hereof and
(iv) conditioned upon Executive’s strict compliance with the post-employment restrictions described in Paragraph 9 below, severance pay in the total amount equal to three (3) times Executive’s annual Base Salary determined at the
time of termination to be paid in equal installments on the Corporation’s regular pay dates for three (3) years following termination of Executive’s employment by Corporation (subject to customary withholding and 

  

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payroll taxes); provided; however, that if a Change in Control (as hereafter defined) occurs either two (2) years prior to or eighteen
(18) months following the termination of Executive’s employment by Corporation pursuant to Paragraph 6(b), Executive shall be entitled to, in lieu of the payments to be made pursuant to clause (iv) above, a lump sum payment equal to
(x) three (3) times Executive’s Annual Cash Compensation (as hereinafter defined) (subject to customary withholding and payroll taxes), less (y) any payment already received pursuant to clause (iv) above. For purposes
of this Paragraph, the following terms shall have the following meanings: 
 “Annual Cash Compensation” shall
mean the sum of (a) the highest annual Base Salary in effect for the Executive during the Employment Term and (b) an amount equal to the average bonus paid to the Executive in the two most recent fiscal years. 
 “Change in Control” shall be deemed to have occurred if (i) any “person” (as such term is used in Sections
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than a trustee or other fiduciary holding securities under an employee benefit plan of Corporation, a corporation owned directly or indirectly by the stockholders of
Corporation in substantially the same proportions as their ownership of stock of Corporation, or W. Andrew Wright, his spouse or his descendants, becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of Corporation representing more than 50% of the total voting power represented by Corporation’s then outstanding securities which vote generally in the election of directors (referred to herein as “Voting
Securities”); or (ii) after the date of this Agreement, the stockholders of Corporation approve (x) a merger or consolidation of Corporation with any other corporation, other than a merger or consolidation, which would result in
the Voting Securities of Corporation outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into Voting Securities of the surviving entity) at least more than 50% of the total voting
power represented by the Voting Securities of Corporation or such surviving entity outstanding immediately after such merger or consolidation, or (y) a plan of complete liquidation of Corporation or an agreement for the sale or disposition by
Corporation of (in one transaction or a series of transactions) all or substantially all of Corporation’s assets. 
  

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 (c) If Executive’s employment is terminated by Executive pursuant to Paragraph 7 hereof, Executive
or his estate shall have no further rights against Corporation, except for the right to receive, with respect to the period prior to the effective date of termination, (i) any unpaid Base Salary under Paragraph 3(a) and (ii) any accrued
but unpaid benefits under Paragraph 5 hereof. Such payments shall be made to Executive whether or not Corporation chooses to utilize the services of Executive for the one hundred and eighty (180) day notice period. Should Corporation, at
it’s sole option, choose to utilize the services of Executive during the notice period, Executive shall also be entitled to any accrued but unpaid performance bonus for any period prior to the effective date of such termination as set forth in
Paragraph 3(b) hereof. 
 (d) If any payment to Executive under this Agreement, either alone or together with other payments to Executive
from Corporation, would constitute a “parachute payment” (as defined in Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”)), such payments shall be grossed up to an amount such that after
payment of the excise tax imposed by Section 4999 of the Code, Executive will receive on an after tax basis the same amount Executive would have received if no such excise tax was imposed. 
 (e) Executive acknowledges and agrees that, Corporation’s obligations to make payments under Paragraph 8 will be conditioned on Executive timely
executing, delivering, and not revoking within the prescribed revocation period a customary general release in form and substance satisfactory to Corporation. 
 9. Covenants of Executive. 
 (a) No Conflicts. Executive represents and warrants that he is not
personally subject to any agreement, order or decree which restricts his acceptance of this Agreement and performance of his duties with Corporation hereunder. 
 (b) Non-Competition; Non-Solicitation. During the Employment Term and thereafter, Executive acknowledges and agrees that he is bound by the non-compete, non-solicitation and other provisions set forth in
Section 11.2 of the Stock Purchase Agreement, dated September 19, 2006, and amended on December 18, 2006, and such provisions are hereby incorporated by reference and made a part of this Agreement. 
  

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 (c) Non-Disclosure. During the Employment Term and thereafter, Executive shall not disclose or
use, except when necessary to further the interests of Corporation or any subsidiary thereof (collectively, the “Addus HealthCare Group”), any Trade Secret (as hereafter defined) of the Addus HealthCare Group, whether such Trade
Secret is in Executive’s memory or embodied in writing or other physical form. For purposes of this Paragraph, “Trade Secret” means any information, not being generally known to, and not being readily ascertainable by proper means by,
other persons who can obtain economic value from its disclosure or use and is the subject of efforts to maintain its secrecy that are reasonable under the circumstances, including, but not limited to, (i) trade secrets, (ii) the business
or affairs of the Addus HealthCare Group, (iii) client and customer lists, (iv) products or services, (v) fees, costs, and pricing structures, (vi) charts, manuals and documentation, (vii) databases, (viii) accounting
and business models, (ix) designs, (x) analyses, (xi) drawings, photographs and reports, (xii) computer software, (xiii) copyrightable works, (xiv) inventions, devices, new developments, methods and processes, whether
patentable or unpatentable and whether or not reduced to practice, (xv) sales records and (xvi) other proprietary commercial information. Said term, however, shall not include general “know-how” information acquired by Executive
during the course of his employment which could have been obtained by him from public sources without the expenditure of significant time, effort and expense. 
 (d) Covenant Regarding Confidential and Proprietary Information. 
 (i) Executive will
promptly disclose in writing to Corporation each improvement, discovery, idea, invention, and each proposed publication of any kind whatsoever, relating to the Business made or conceived by Executive either alone or in conjunction with others while
employed hereunder if such improvement, discovery, idea, invention or publication results from or was suggested by such employment (whether or not patentable and whether or not made or conceived at the request of or upon the suggestion of
Corporation, and whether or not during his usual hours of work, whether in or about the premises of the Addus HealthCare Group and whether prior or subsequent to 

  

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the execution hereof). Executive will not disclose any such improvement, discovery, idea, invention or publication to any person, entity or governmental
authority, except to Corporation. Each such improvement, discovery, idea, invention and publication shall be the sole and exclusive property of, and is hereby assigned by Executive to Corporation, and at the request of Corporation, Executive will
assist and cooperate with Corporation and any person or entity from time to time designated by Corporation to obtain for Corporation or its designee the grant of any letters patent in the United States of America and/or such other country or
countries as may be designated by Corporation, covering any such improvement, discovery, idea, invention or publication and will in connection therewith execute such applications, statements, assignments or other documents, furnish such information
and data and take all such other action (including, without limitation, the giving of testimony) as Corporation may from time to time reasonably request. The foregoing provisions of this Section 9(d) shall not apply to any improvement,
discovery, idea, invention of publication for which no equipment, supplies, facilities or confidential and proprietary information of Addus HealthCare Group was used and which was developed entirely on Executive’s own time, unless (x) the
improvement, discovery, idea, invention or publication relates to the Business or the actual or demonstrably anticipated research or development of the Business, or (y) the improvement, discovery, idea, invention or publication results from any
work performed by Executive for the Addus HealthCare Group; and 
 (ii) Executive recognizes and acknowledges that he will
have access to certain confidential and proprietary information of Addus HealthCare Group, including, but not limited to, Trade Secrets and other proprietary commercial information, and that such information constitutes valuable, special and unique
property of Addus HealthCare Group. Executive agrees that he will not, for any reason or purpose whatsoever, except in the performance of his duties hereunder, or as required by law, disclose any of such confidential information to any person;
entity or governmental authority without express authorization of Corporation. 
 (e) No Disparagement. During the Employment Term and
thereafter, Executive agrees that he will not make any statement, either in writing or orally, that is 

  

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communicated publicly or is reasonably likely to be communicated publicly, and that is reasonably likely to disparage or otherwise harm the business or
reputation of Corporation, or the reputation of any of its current or former directors, officers, employees or stockholders. 
 (f) Return
of Documents and Other Property. Upon termination of employment, Executive shall return all originals and copies of books, records, documents, customer lists, sales materials, tapes, keys, credit cards and other tangible property of Addus
HealthCare Group within Executive’s possession or under his control. Corporation acknowledges that Executive already had certain research and form files that he brought with him and may be using to perform his duties herein and that he will and
has been updating and adding to such files during his employment with Corporation. Such research and form files will remain and be the property of Executive and he shall have the right to remove and take such files with him upon any termination of
his employment with Corporation; however, such files do not include any transaction, project, litigation or other general or specific files of Corporation. 
 (g) Remedies for Breach. In the event of a breach or threat of a breach of the provisions of this Section 9, Executive hereby acknowledges that such breach or threat of a breach will cause Corporation to
suffer irreparable harm and that Corporation shall be entitled to an injunction restraining Executive from breaching such provisions; but the foregoing shall not be construed as prohibiting Corporation from having available to it to any other
remedy, either at law or in equity, for such breach or threatened breach, including, but not limited to, the immediate cessation of employment and any remaining severance pay and benefits pursuant to Section 8 and the recovery of damages from
Executive and the notification of any employer or prospective employer of Executive as to the terms and conditions hereof (without limiting or affecting Executive’s obligations under the other paragraphs of this Section 9). 
 (h) Acknowledgement. Executive acknowledges that he will be directly and materially involved as a senior executive in all important policy and
operational decisions of Addus HealthCare Group. Executive further acknowledges that the scope of the foregoing restrictions has been specifically bargained between Corporation and Executive, each being fully informed of all relevant facts.
Accordingly, Executive acknowledges that the foregoing restrictions of this Section 9 are fair and reasonable, are minimally necessary to protect Addus 

  

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HealthCare Group, its stockholders and the public from the unfair competition of Executive who, as a result of his employment with Corporation, will have had
unlimited access to the most confidential and important information of Addus HealthCare Group, the Business and future plans. Executive furthermore acknowledges that no unreasonable harm or injury will be suffered by him from enforcement of the
covenants contained herein and that he will be able to earn a reasonable livelihood following termination of his employment notwithstanding enforcement of the covenants contained herein. 
 (i) Right of Set-Off. In the event of a breach by Executive of the provisions of this Agreement, Corporation is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, and after ten (10) days prior written notice to Executive, to set-off and apply any and all amounts at any time held by Corporation on behalf of Executive and all indebtedness at any
time owing by Corporation to Executive against any and all of the obligations of Executive now or hereafter existing. 
 10. Prior
Agreement. Upon the Effective Date, this Agreement will amend and restate the Original Employment Agreement and supersede any and all other employment arrangements between Executive and Corporation or its predecessor or any subsidiary and any
and all such employment agreements (including, without limitation, the Original Employment Agreement) and arrangements will be automatically terminated with no further action required by the parties hereto and deemed of no further force or effect.

 11. Assignment. Neither this Agreement nor any rights or duties of Executive hereunder shall be assignable by Executive and any
such purported assignment by him shall be void. Corporation may assign all or any of its rights hereunder. 
 12. Successor to
Corporation. 
 (a) Corporation will use commercially reasonable efforts to require any successor or assign (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all the business and/or assets of Corporation, as the case may be, by agreement in form and substance satisfactory to Executive, expressly, absolutely and unconditionally to
assume and agree to perform this Agreement in the same manner and to the 

  

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same extent that Corporation would be required to perform it if no such succession or assignment had taken place. Any failure of Corporation to use
commercially reasonable efforts to obtain such agreement prior to the effectiveness of any such succession or assignment shall be a material breach of this Agreement. 
 (b) This Agreement shall inure to the benefit of and be enforceable by Executive’s personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If
Executive should die while any amounts are still payable to Executive hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to Executive’s devisee, legatee or other designee
or, if there be no such designee, to Executive’s estate. 
 13. Notices. Any notice required or permitted to be given under this
Agreement shall be sufficient if in writing and if sent by certified mail to the following addresses (or to any other address that any party may designate by notice to the other parties hereto): 
  

	 	(a)	if to Executive, to: 

 Mark S. Heaney 
 1340 Inverness Lane 
 Schererville, IN 46375

 with a copy (with shall not constitute notice) to: 
 Robert J. Mrofka 
 Cisar & Mrofka, Ltd. 
 1550 Spring Road, Suite 210 
 Oak Brook,
Illinois 60523 
 Telephone: (630) 530-0000 
 Facsimile: (630) 530-0043 
  

	 	(b)	if to Corporation, to: 

 Addus HealthCare, Inc.

 c/o Eos Management, Inc. 
 320 Park Avenue 
 New York, New York 10022 
 Attention: Mark First 
 Telephone: (212) 832-5807 
 Facsimile: (212) 832-5815 
 Email:
MFirst@eospartners.com 
  

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 with a copy (with shall not constitute notice) to: 
 Nixon Peabody LLP 
 437 Madison Avenue

 New York, New York 10022 
 Attention: Bradley C. Vaiana, Esq. 
 Telephone: (212)-940-3778 
 Facsimile: (866)-402-1171 
 Email:
bvaiana@nixonpeabody.com 
 14. Amendment. This Agreement may not be changed, modified or amended except in writing signed by the
party to be charged. 
 15. Waiver of Breach. The waiver by either party of the breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach by either party. 
 16. Invalidity of any Provision. The provisions of
this Agreement are severable, it being the intention of the parties hereto that should any provision hereof be invalid or unenforceable, such invalidity or unenforceability of any provisions shall not effect the remaining provisions hereof, but the
same shall remain in full force and effect as if such invalid or unenforceable provision or provisions were omitted. 
 17. Governing
Law. This Agreement shall be governed by, and construed, interpreted and enforced in accordance with the laws of the State of Illinois, exclusive of the conflict of laws provisions of the State of Illinois. 
  

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

			
	CORPORATION:
	
	ADDUS HEALTHCARE, INC.
		
	By:	 	 /s/ W. Andrew Wright, III

	
	EXECUTIVE:
		
	By:	 	 /s/ Mark S. Heaney

  

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 EXHIBIT 1 
 Bonus Plan 
 1. 2008 Bonus. Corporation shall pay Executive an aggregate bonus for the year
ending December 31, 2008, based upon the achievement of certain EBITDA targets as set forth in the attached Schedule I, subject to a maximum bonus of 100% of Executive’s Base Salary. 
 2. Post-2008 Bonus. For each of the years ending December 31, 2009, December 31, 2010 and December 31, 2011, Corporation shall
pay Executive a bonus in accordance with an annual Bonus Plan to be agreed upon by the Board of Directors or a compensation committee thereof, if any, (excluding Executive if he should be a member of the Board of Directors or a compensation
committee, as applicable). 
 3. Payment. Any bonus payments earned by Executive shall be paid within 30 days after the completion of
audited financial statements for the applicable fiscal year but in no event later than the 105th day following the fiscal year for which the bonus was earned; provided, however, that the obligation of the Corporation to make such payment shall be
deferred if, and only to the extent that, the making of such payment would result in a breach of, or constitute a default (with due notice or lapse of time, or both) under, any agreement of Corporation with an unaffiliated third party regarding
indebtedness for borrowed money. 
  

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 SCHEDULE I 
  

						
	 President & CEO
	  			 	
			
	 Base Salary
	  	325,000	  	 	
	 Bonus (% of Base)
	  	60	% 	 	100% of bonus will be Ebitda based
			
	 2008 Ebitda Budget
	  	18,794,434	  	 	

  

																																								
	 % of Ebitda
achieved
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	82%	 	83%	 	84%	 	85%	 	86%	 	86.73%	 	90%	 	95%	 	100%	 	105%	 	110%	 	115%	 	120%
	 Actual 2008 Ebitda(1)
	 	$	15,411,436	 	$	15,599,380	 	$	15,787,325	 	$	15,975,269	 	$	16,163,213	 	$	16,300,000	 	$	16,914,991	 	$	17,854,712	 	$	18,794,434	 	$	19,734,156	 	$	20,673,877	 	$	21,613,599	 	$	22,553,321
	 % of Bonus
	 	 	5%	 	 	10%	 	 	15%	 	 	20%	 	 	25%	 	 	33%	 	 	55%	 	 	77.7%	 	 	100%	 	 	117%	 	 	133%	 	 	150%	 	 	166%
	 Bonus Earned
	 	$	9,750	 	$	19,500	 	$	29,250	 	$	39,000	 	$	48,750	 	$	64,350	 	$	107,900	 	$	151,450	 	$	195,000	 	$	227,175	 	$	259,350	 	$	291,525	 	$	323,700
	 As a % of Base
	 	 	3.0%	 	 	6.0%	 	 	9.0%	 	 	12.0%	 	 	15.0%	 	 	19.8%	 	 	33.2%	 	 	46.6%	 	 	60.0%	 	 	69.9%	 	 	79.8%	 	 	89.7%	 	 	99.6%
	 Total Compensation
	 	$	334,750	 	$	344,500	 	$	354,250	 	$	364,000	 	$	373,750	 	$	389,350	 	$	432,900	 	$	476,450	 	$	520,000	 	$	552,175	 	$	584,350	 	$	616,525	 	$	648,700

  

	(1)	Actual Ebitda to exclude acquisitions completed during the fiscal year 

 Note: Bonus is self funding. Corporation needs to earn $18,794,434 after accrual for bonuses to earn full bonus. 
 Note: No bonus will be earned
below $15.41 million of Ebitda. Bonus Cap is 100% of base salary. 
  

 16Employment and Non-Competition Agreement - Frank Leonard

 Exhibit 10.3 
 EMPLOYMENT AND NON-COMPETITION AGREEMENT 
 THIS EMPLOYMENT AND
NON-COMPETITION AGREEMENT is executed as of the 31st day of July 2008, and effective
as of the 16th day of July 2008 (the “Effective Date”), by and
between Addus HealthCare, Inc., an Illinois corporation (the “Company”) and Frank Leonard, an individual domiciled in the State of Illinois (the “Executive”). 
 WHEREAS, the Company, its subsidiaries and affiliates (collectively, the “Addus HealthCare Group”) provide home health staffing
and home care services, to individuals, county and state governments, health maintenance organizations, independent physician associations, insurance companies, facilities, other business purchasers of such services, and to the general public at
large; and 
 WHEREAS, the Addus HealthCare Group is currently engaged in the business of providing paraprofessional and professional
home care services under contracts with state and local government agencies and contracts with private payors; and 
 WHEREAS, the
Executive and the Company are desirous of memorializing, in writing, all of their agreements with respect to the Executive’s employment by the Company; and 
 WHEREAS, by virtue of the Executive’s employment by the Company pursuant to the terms hereof, the Executive will obtain and become familiar with certain confidential and proprietary information relating to
the Addus HealthCare Group; and 
 WHEREAS, the Company desires to protect the goodwill and all proprietary rights and information of
the Addus HealthCare Group. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties
hereto, intending to be legally bound, agree as follows: 
  

	 	1.	 Term of Employment. The Company hereby employs the Executive, and the Executive hereby accepts continued employment by the Company, for the period
commencing as of the Effective Date of this Agreement and ending on the fourth (4th) anniversary of the Effective Date, or on such earlier date as provided pursuant to the terms and conditions of this Agreement (the “Initial Employment Term”). At the end of the Initial Employment Term, this Agreement
shall automatically renew for successive one (1) year terms (each, an “Additional Employment Term”, and together with the Initial Employment Term, the “Employment Term”) unless the Company provides notice to
the Executive of its intention not to renew this Agreement at least thirty (30) days prior to the expiration of the Initial Employment Term or any Additional Employment Term. During the Employment Term, the Executive shall (i) devote
substantially all of his professional time, loyalty and efforts to discharge his duties hereunder on a timely basis; (ii) use his best efforts to loyally and diligently serve the business and affairs of the Addus HealthCare Group; and
(iii) endeavor in all respects to promote, advance and further the Addus HealthCare Group’s interests in all matters. 

	 	2.	Employment Duties. The Company will employ the Executive as its Chief Financial Officer. The Executive’s principal duties and responsibilities shall be those
duties and responsibilities reflected in the employment description set forth on Exhibit A hereto. 

  

	 	3.	Compensation. The Company will pay the Executive as follows during the Employment Term: 

 Base Salary. Commencing on the Effective Date of this Agreement, the Company shall pay the Executive a base salary at the annual rate of
Two Hundred and Fifteen Thousand Dollars ($215,000) which shall be paid in accordance with the normal payroll practices of the Company and shall be subject to withholding for applicable Federal, State and local taxes. Thereafter, the
Executive’s base salary shall be subject to review and adjustment by the Board of Directors of the Company (the “Board of Directors”) on or about the anniversary date of his original hiring by the Company for each year during
the Employment Term (as adjusted from time-to-time, the “Base Salary”). 
  

	 	(a)	Bonus. The Executive, at the discretion of the Board of Directors, shall be eligible (but not entitled) to receive an annual bonus during each fiscal year in an amount
as set forth on Exhibit B hereto, which amount may be amended at the sole discretion of the Board of Directors. All amounts payable pursuant to this Section 3(b), if any, shall be paid within no more than thirty (30) days after
completion of the Company’s audited financial statements for the then current fiscal year and shall be subject to applicable withholding taxes. Bonus is not salary and is earned on the day it is paid. To be eligible to receive the bonus, the
Executive must be employed and in good standing and must not have given notice of termination on or prior to such date. 

  

	 	4.	Expenses. It is recognized that the Executive in the performance of his duties hereunder may be required to expend sums for travel, entertainment and lodging. During
the Employment Term, the Company shall reimburse the Executive for reasonable business expenses incurred by him during the Employment Term in connection with the performance of his duties hereunder conditioned upon and subject to the Company’s
established policies and procedures, including written receipt from the Executive of an itemized accounting in accordance with the Company’s regular business expense verification practices. 

  

	 	5.	Benefits. During the Employment Term, the Executive shall be entitled to benefits consistent with benefits paid to other similarly situated employees pursuant to the
Company’s administrative benefit plan, and in accordance with its policies, which may change at the sole discretion of the Board of Directors. Benefits shall be at least: 

  

	 	(a)	Three (3) weeks paid vacation during the Executive’s first five (5) years of employment and four (4) weeks paid vacation during each subsequent year of
employment. Vacation may be carried over to a subsequent year of employment, up to a maximum of two (2) full years of accrued vacation time thereafter (i.e., no more than six weeks during the Executive’s first five years and no more than
eight weeks during the Executive’s subsequent years). 

  

 2 

	 	(b)	Five (5) days personal/sick leave per year, with pay. Personal/sick days may be carried over to a subsequent year of employment, up to a maximum of two (2) full years of
accrued personal/sick days (i.e., no more than ten days). 

  

	 	(c)	Six Company holidays, plus two floating holidays. 

  

	 	(d)	Coverage under the Company’s Health Benefit Plan, which may change, at the sole discretion of the Board of Directors, from time to time. The Company will cover the Executive
and his dependents, if any, to the same extent and according to the same terms as the Company’s other executives are covered. 

  

	 	(e)	Life insurance policy with a face amount of up to five (5) times the Base Salary, provided that the Company shall not be required to spend greater than three percent
(3%) of the Base Salary in purchasing such insurance policy. 

  

	 	(f)	Short-term and long-term disability insurance to the same extent and according to the same terms as the Company’s other executives are covered. 

  

	 	6.	Termination by Company. 

  

	 	(a)	The Company may terminate the Executive’s employment hereunder at any time for reasonable cause. The term “reasonable cause” shall be limited to the following:

 (i) The Executives dies or the Executive is physically or mentally disabled (“Disability”) so that the
Executive is or, in the opinion of an independent physician retained by the Company for purposes of this determination will be, unable to perform his duties in a manner satisfactory to the Company for a period of ninety (90) days out of any one
hundred eighty (180) consecutive-day period (in which event the Executive shall be deemed permanently disabled); 
 (ii) A material
breach or omission by the Executive of any of his duties or obligations under this Agreement (except due to Disability); 
 (iii) The
Executive shall engage in any action that materially damages, or that may reasonably be expected to materially damage, the Addus Healthcare Group or the business or goodwill thereof; 
  

 3 

 (iv) The Executive shall breach his fiduciary duty to the Addus Healthcare Group; 
 (v) The Executive shall commit any act involving fraud, the misuse or misappropriation of money or other property of the Addus Healthcare Group, a
felony, habitual use of drugs or other intoxicants or chronic absenteeism; 
 (vi) Gross negligence or willful misconduct by the Executive;

 (vii) The Executive shall commit acts constituting gross insubordination, such as, without limitation, the intentional disregard of any
reasonable directive of the Company’s President or Chief Executive Officer (the “CEO”) or the Board of Directors; and 
 (viii) The Executive shall fail to perform any material duty in a timely and effective manner and shall fail to cure any such performance deficiency after receipt of written notice of the deficiency from the CEO or Board of Directors, which
notice shall designate the period of time within which the performance deficiency must be cured to the satisfaction of the CEO or the Board of Directors, as applicable, in order to prevent a termination for reasonable cause; provided, however, that
Executive shall only be permitted the opportunity to cure performance deficiency two times in any twelve-month rolling period. 
 Termination
of the Executive’s employment for reasonable cause shall terminate the Employment Term but shall not affect the Executive’s obligations pursuant to Section 9 hereof, which obligations shall remain in effect for the period therein
provided. 
  

	 	(b)	The Company may terminate the Executive’s employment hereunder at any time for any reason other than reasonable cause. If the Company terminates the Executive’s employment
hereunder upon less than thirty (30) days notice, the Company shall pay the Executive a pro rata portion of his salary and shall continue to provide the benefits described in Sections 3 and 5, respectively, for the period of deficient notice.

  

	 	7.	Termination by the Executive. The Executive may terminate his obligations hereunder upon not less than thirty (30) days prior written notice to the Company. If
the Executive terminates his employment hereunder upon less than thirty (30) days notice, the Executive shall pay the Company a pro rated portion of his salary and benefits described in Sections 3 and 5, respectively, for the period of
deficient notice. The Company (a) at its sole option, may waive all or any portion of such notice requirement and (b) shall waive all or a portion of such notice requirement upon the Executive’s payment of that portion of the
Executive’s annual base salary that would otherwise be paid to the Executive during the remaining notice period. 

  

 4 

 Termination of the Executive’s employment by the Executive shall terminate the Employment Term, but
shall not affect the Executive’s obligations pursuant to Section 9 hereof which obligations shall remain in effect for the period therein provided. 
  

	 	8.	Rights and Obligations Upon Termination. 

  

	 	(a)	If the Executive’s employment is terminated by the Company pursuant to Section 6(a) hereof, the Executive shall have no further rights against the Addus HealthCare Group
hereunder, except for the right to receive: 

 (i) Any unpaid base salary under Section 3(a) hereof for any period prior
to the effective date of termination; 
 (ii) If applicable, a pro rata payment for bonus under Section 3(b) hereof for any period prior
to the effective date of such termination; 
 (iii) Any accrued but unpaid benefits under Section 5 hereof. 
  

	 	(b)	If the Executive’s employment is terminated by the Company pursuant to Section 6(b) hereof, the Executive shall be entitled to, in lieu of any further salary payments to
the Executive for periods subsequent to the date of termination; 

 (i) Any unpaid base salary under Section 3(a) hereof
for any period prior to the effective date of termination; 
 (ii) Any accrued but unpaid benefits under Section 5 hereof; and

 (iii) Conditioned upon Executive’s strict compliance with the post-employment restrictions described in
Section 9 below, severance pay (“Severance Pay”) in the total amount equal to (A) one-half ( 1/2) of the Executive’s Annual Cash Compensation to be paid in equal installments on the Company’s regular pay dates for six (6) months following termination of the Executive’s employment by the Company (subject to
customary withholding and payroll taxes and early termination upon the Executive’s employment with a new employer), plus continuation of all benefits at the level then offered to and enrolled in by the Executive, until the earlier of
(x) six (6) months following the termination of the Executive’s employment by the Company or (y) the date that the Executive is eligible to receive coverage and benefits from a new employer; provided, however, that
(A) if the Executive remains continuously employed by the Company through the date that is twelve (12) months from the Effective Date, the severance benefits contained in this clause (iii) shall be automatically increased from
one-half ( 1/2) of the Executive’s Annual Cash Compensation to three-quarters ( 3/4) of the Executive’s Annual Cash Compensation, to be paid in equal installments on the Company’s regular pay dates
(subject to customary withholding 

  

 5 

 
and payroll taxes and early termination upon the Executive’s employment with a new employer) for twelve (12) months following termination of the
Executive’s employment by the Company plus continuation of all benefits for such twelve-month period; and (B) for every twelve-month period the Executive remains continuously employed by the Company thereafter, the Executive shall
receive one (1) additional month of severance (i.e., an additional one-twelfth ( 1/12) of the Executive’s Annual
Cash Compensation) up to a total of twelve (12) total months of severance (i.e., up to an amount not to exceed one (1) year of the Executive’s Annual Cash Compensation), to be paid in equal installments over the then applicable period
following termination of the Executive’s employment by the Company on the Company’s regular pay dates (subject to customary withholding and payroll taxes and early termination upon the Executive’s employment with a new employer)
plus continuation of all benefits for such additional month(s). 
 For purposes of this Agreement, “Annual Cash
Compensation” shall mean the sum of (a) the highest annual Base Salary in effect for the Executive and (b) the greater of (i) the Executive’s last year’s bonus, if any, or (ii) the annualized amount of
the Executive’s current year’s target bonus; provided, however, neither clause (i) nor (ii) shall exceed fifty percent (50%) of the Executive’s current annual Base Salary. 
  

	 	(c)	If the Executive’s employment is terminated by the Executive pursuant to Section 7 hereof, the Executive or his estate shall have no further rights against the Addus
HealthCare Group, except for the right to receive, with respect to the period prior to the effective date of termination; 

 (i) Any unpaid base salary under Section 3(a); and 
 (ii) If applicable, any accrued but unpaid benefits under Section 5
hereof. Such Payments shall be made to the Executive whether or not the Company chooses to utilize the services of the Executive for the required notice period. 
  

	 	(d)	The Executive acknowledges and agrees that the Company’s obligations to make payments under Section 8(b)(i) or (b)(ii) will be conditioned on the Executive timely
executing, delivering and not revoking within the prescribed revocation period a customary general release in form and substance satisfactory to the Company. 

  

	 	9.	Covenants of the Executive. 

  

	 	(a)	No Conflicts. The Executive represents and warrants that he is not personally subject to any agreement, order or decree, which restricts his acceptance of this
Agreement and performance of his duties with the Company hereunder. 

  

 6 

	 	(b)	Non-Competition. During the Employment Term and for a period of time following the termination of the Employment Term equal to the greater of (i) one
(1) year and (ii) the period of time during which the Executive receives Severance Pay (the “Restrictive Period”), the Executive shall not, without the prior written consent of the Company, directly or indirectly, in any
capacity whatsoever, either on his own behalf or on behalf of any other person or entity with whom he may manage, control, participate in, consult with, render services for or be employed or associated, compete with the Business (as hereinafter
defined) in any of the following described manners: 

 (i) Engage in, assist or have any interest in, as principal, consultant,
advisor, agent, financier or employee, any business entity which is, or which is about to become engaged in, providing goods or services in competition with the Addus HealthCare Group within a geographic radius of thirty (30) miles from any
Addus HealthCare Group branch office; or 
 (ii) Solicit or accept any business (or help any other person solicit or accept any business)
from any person or entity which on the date of this Agreement is a customer of the Addus HealthCare Group or which during the Employment Term becomes a customer of the Addus HealthCare Group. For purposes hereof, the term “Business”
means the business of providing home care services of the type and nature that the Addus HealthCare Group then performed and/or any other business activity in which the Addus HealthCare Group then performed or program or service then under active
development proposed to be performed and/or any other business activity in which the Addus HealthCare Group becomes engaged in on or after the date hereof while the Executive is employed by the Company. Furthermore, during the Restrictive Period,
the Executive shall not directly or indirectly, (A) induce or attempt to induce any employee of the Addus HealthCare Group to terminate such employee’s relationship with the Addus HealthCare Group or in any way interfere with the
relationship between the Addus HealthCare Group and any employee thereof, or (B) induce or attempt to induce any customer, referral source, supplier, vendor, licensee or other business relation of the Addus HealthCare Group to cease doing
business with the Addus HealthCare Group, or in any way interfere with the relationship between any such customer, referral source, supplier, vendor, licensee or business relation, on the one hand, and the Addus HealthCare Group, on the other hand.
Notwithstanding the foregoing provisions, nothing herein shall prohibit the Executive from owning 1% or less of any securities of a competitor, if such securities are listed on a nationally recognized securities exchange or traded over-the-counter
on the NASDAQ market or otherwise. If, at the time of enforcement of this Section 9(b), a court holds that the restrictions stated herein are unreasonable under the 

  

 7 

 
circumstances then existing, the parties agree that the maximum period, scope or geographic area reasonable under such circumstances shall be substituted for
the stated period, scope or area determined to be reasonable under the circumstances by such court. 
  

	 	(c)	Non-Disclosure. During the Employment Term and the Restrictive Period, the Executive shall not, without the prior written consent of the Company, directly or
indirectly, in any capacity whatsoever, either on his own behalf or on behalf of any other person or entity that he manages, controls, participates in, consults with, renders services for or is employed by or associated with, disclose or use, except
when necessary to further the interests of the Business, any Trade Secret (as hereafter defined) of the Addus HealthCare Group, whether such Trade Secret is in the Executive’s memory or embodied in writing or other physical form. For purposes
of this Agreement, “Trade Secret” means any information, not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use and is the subject
of efforts to maintain its secrecy that are reasonable under the circumstances, including, but not limited to, (i) trade secrets, (ii) the business or affairs of the Addus HealthCare Group, (iii) client and customer lists,
(iv) products or services, (v) fees, costs, and pricing structures, (vi) charts, manuals and documentation, (vii) databases, (viii) accounting and business models, (ix) designs, (x) analyses, (xi) drawings,
photographs and reports, (xii) computer software, (xiii) copyrightable works, (xiv) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice,
(xv) sales records and (xvi) other proprietary commercial information. Said term, however, shall not include general “know-how” information acquired by the Executive during the course of his employment which could have been
obtained by him from public sources without the expenditure of significant time, effort and expense. 

  

	 	(d)	Covenant Regarding Confidential and Proprietary Information. 

 (i) The Executive will promptly disclose in writing to the Company each improvement, discovery, idea, invention, and each proposed publication of any kind whatsoever, relating to the Business made or conceived by the
Executive either alone or in conjunction with others while employed hereunder if such improvement, discovery, idea, invention or publication results from or was suggested by such employment (whether or not patentable and whether or not made or
conceived at the request of or upon the suggestion of the Company, and whether or not during his usual hours of work, whether in or about the premises of the Addus HealthCare Group and whether prior or subsequent to the execution hereof). The
Executive will not disclose any such improvement, discovery, idea, invention or publication to any person, entity or governmental authority, except to the Company. Each such 

  

 8 

 
improvement, discovery, idea, invention and publication shall be the sole and exclusive property of, and is hereby assigned by the Executive to the Company,
and at the request of the Company, the Executive will assist and cooperate with the Company and any person or entity from time to time designated by the Company to obtain for the Company or its designee the grant of any letters patent in the United
States of America and/or such other country or countries as may be designated by the Company, covering any such improvement, discovery, idea, invention or publication and will in connection therewith execute such applications, statements,
assignments or other documents, furnish such information and data and take all such other action (including, without limitation, the giving of testimony) as the Company may from time to time reasonably request. The foregoing provisions of this
Section 9(d) shall not apply to any improvement, discovery, idea, invention of publication for which no equipment, supplies, facilities or confidential and proprietary information of Addus HealthCare Group was used and which was developed
entirely on the Executive’s own time, unless (x) the improvement, discovery, idea, invention or publication relates to the Business or the actual or demonstrably anticipated research or development of the Business, or (y) the
improvement, discovery, idea, invention or publication results from any work performed by the Executive for the Addus HealthCare Group. 
 (ii) The Executive recognizes and acknowledges that he will have access to certain confidential and proprietary information of Addus HealthCare Group, including, but not limited to, Trade Secrets and other proprietary commercial
information, and that such information constitutes valuable, special and unique property of Addus HealthCare Group. The Executive agrees that he will not, for any reason or purpose whatsoever, except in the performance of his duties hereunder, or as
required by law, disclose any of such confidential information to any person, entity or governmental authority without express authorization of the Company. 
  

	 	(e)	Non-Disparagement. The Executive agrees that, during the Employment Term and the Restrictive Period, he will not make any statement, either in writing or orally, that
is communicated publicly or is reasonably likely to be communicated publicly, and that is reasonably likely to disparage or otherwise harm the business or reputation of the Addus HealthCare Group, or the reputation of any of its current or former
directors, officers, employees or stockholders. 

  

	 	(f)	Return of Documents and Other Property. Upon termination of employment, the Executive shall return all originals and copies of books, records, documents, customer
lists, sales materials, tapes, keys, credit cards and other tangible property of Addus HealthCare Group within the Executive’s possession or under his control. 

 The Company acknowledges that the Executive already had certain research and form files that he brought with him and may be using to 

  

 9 

 
perform his duties herein and that he will and has been updating and adding to such files during his employment with the Company. Such research and form
files will remain and be the property of the Executive and he shall have the right to remove and take such files with him upon any termination of his employment with the Company; however, such files do not include any transaction, project,
litigation or other general or specific files of the Company. 
  

	 	(g)	Remedies for Breach. In the event of a breach or threat of a breach of the provisions of this Section 9, the Executive hereby acknowledges that such breach or
threat of a breach will cause the Company to suffer irreparable harm and that the Company shall be entitled to an injunction restraining the Executive from breaching such provisions; but the foregoing shall not be construed as prohibiting the
Company from having available to it to any other remedy, either at law or in equity, for such breach or threatened breach, including, but not limited to, the immediate cessation of employment and any remaining Severance Pay and benefits pursuant to
Section 8 and the recovery of damages from the Executive and the notification of any employer or prospective employer of the Executive as to the terms and conditions hereof (without limiting or affecting the Executive’s obligations under
the other paragraphs of this Section 9). 

  

	 	(h)	Acknowledgment. The Executive acknowledges that he will be directly and materially involved as a senior executive in all important policy and operational decisions of
Addus HealthCare Group. The Executive further acknowledges that the scope of the foregoing restrictions has been specifically bargained between the Company and the Executive, each being fully informed of all relevant facts. Accordingly, the
Executive acknowledges that the foregoing restrictions of this Section 9 are fair and reasonable, are minimally necessary to protect Addus HealthCare Group, its stockholders and the public from the unfair competition of the Executive who, as a
result of his employment with the Company, will have had unlimited access to the most confidential and important information of Addus HealthCare Group, its Business and future plans. The Executive furthermore acknowledges that no unreasonable harm
or injury will be suffered by him from enforcement of the covenants contained herein and that he will be able to earn a reasonable livelihood following termination of his employment notwithstanding enforcement of the covenants contained herein.

  

	 	(i)	Right of Set Off. In the event of a breach by the Executive of the provisions of this Agreement, the Company is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, and after ten (10) days prior written notice to the Executive, to set-off and apply any and all amounts at any time held by the Company on behalf of the Executive and all indebtedness at any time owing by
the Addus HealthCare Group to the Executive against any and all of the obligations of the Executive now or hereafter existing. 

  

 10 

	 	10.	Prior Agreement. This Agreement supersedes and is in lieu of any and all other employment arrangements between the Executive and the Company or its predecessor or any
subsidiary and any and all such employment agreements and arrangements are hereby terminated and deemed of no further force or effect. 

  

	 	11.	Assignment. Neither this Agreement nor any rights or duties of the Executive hereunder shall be assignable by the Executive and any such purported assignment by him
shall be void. The Company may assign all or any of its rights hereunder. 

  

	 	12.	Notices. Unless specified in this Agreement, all notices and other communications hereunder shall be in writing and shall be deemed given upon receipt or refusal
thereof if delivered personally, sent by overnight courier service, mailed by registered or certified mail (return receipt requested), postage prepaid, or emailed to the other party’s email address on the Company’s computer network. Notice
to their party hereto, if mailed or sent by overnight courier service, shall be to the following addresses: 

  

	 	(a)	if to the Executive, to: 

 Frank Leonard 
 5812 North Corona Drive 
 Palatine, IL 60067

  

	 	(b)	if to the Company, to: 

 Addus HealthCare, Inc.

 2401 S. Plum Grove Road 
 Palatine, IL 60067 
 Attention: CEO 
 Telephone: (847) 303-5300 
 Facsimile: (847) 303-1508 
 with a copy to: 
 Eos Management, Inc.

 320 Park Avenue 
 New York,
New York 10022 
 Attention: Mark First 
 Telephone: (212) 832-5807 
 Facsimile: (212) 832-5815 
 E-mail: mfirst@eospartners.com 
  

 11 

 with a copy, which shall not constitute notice, to: 
 Nixon Peabody LLP 
 437 Madison Avenue

 New York, New York 10022 
 Attention: Bradley C. Vaiana, Esq. 
 Telephone: (212) 940-3773 
 Facsimile: (866) 402-1171 
 E-mail:
bvaiana@nixonpeabody.com 
 Any party may change their address for notice by giving all other parties notice of such change pursuant to this
Section 12. 
  

	 	13.	Amendment. This Agreement may not be changed, modified or amended except in writing signed by both parties to this Agreement. 

  

	 	14.	Waiver of Breach. The waiver by either party of the breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by
either party. 

  

	 	15.	Invalidity of Any Provision. The provisions of this Agreement are severable, it being the intention of the parties hereto that should any provision hereof be invalid
or unenforceable, such invalidity or enforceability of any provisions shall not effect the remaining provisions hereof, but the same shall remain in full force and effect as if such invalid or unenforceable provision or provisions were omitted.

  

	 	16.	Governing Law. This Agreement shall be governed by, and construed, interpreted and enforced in accordance with the laws of the State of Illinois as applied to
agreements entirely entered into and performed in Illinois by Illinois residents exclusive of the conflict of laws provisions of any other state. 

  

	 	17.	 Arbitration. Any controversy or claim arising out of or relating to this Agreement (including, without limitation, as to arbitrability and any
disputes with respect to the Executive’s employment with the Company or the termination of such employment), or the breach thereof, shall be settled by individual arbitration (as opposed to class or collective arbitration) administered by a
person mutually selected by the Company and the Executive (the “Arbitrator”). If the Company and the Executive are unable to agree upon the Arbitrator within fifteen (15) days, they shall each select an arbitrator within
fifteen (15) days, and the arbitrators selected by the Company and the Executive shall appoint a third arbitrator to act as the Arbitrator within fifteen (15) days (at which point the Arbitrator alone shall judge the controversy or claim).
The arbitration hearing shall commence within ninety (90) calendar days after the Arbitrator is selected, unless the Company and the Executive mutually agree to extend this time period. The arbitration shall take place in Chicago, Illinois. The
Arbitrator will have full power to give directions and make such orders as the Arbitrator deems just. Nonetheless, the Arbitrator explicitly shall not have the authority, power, or right to alter, change, amend, modify, add, or subtract from any
provision of this Agreement except pursuant to Section 15. The Arbitrator shall issue a written decision that sets forth the essential findings and conclusions upon which the Arbitrator’s award or decision 

  

 12 

	 	 
is based within thirty (30) days after the conclusion of the arbitration hearing. The agreement to arbitrate will be specifically enforceable. The award
rendered by the Arbitrator shall be final and binding (absent fraud or manifest error), and any arbitration award may be enforced by judgment entered in any court of competent jurisdiction. The Company and the Executive shall each pay one-half of
the fees of the Arbitrator. 

 (Signature Page Follows) 
  

 13 

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

			
	ADDUS HEALTHCARE, INC.
		
	By:	 	 /s/ Mark S. Heaney

	Name:	 	Mark S. Heaney
	Title:	 	President & Chief Executive Officer
	
	 /s/ Frank Leonard

	FRANK LEONARD

 Signature Page to Leonard Employment Agreement 

 Exhibit A 
 Employment Duties 
 Those duties set forth in the attached ‘Chief Financial Officer Job Description’
and such other duties and responsibilities which are assigned to the Executive by the CEO and which are appropriate for the position of the Executive. 
 The
Executive shall be subject to the authority of the Board of Directors and shall report directly to the President and CEO of the Company. The Executive shall also perform such further duties as are incidental to or implied from the foregoing,
consistent with the background, training, and qualifications of the Executive or which may be reasonably determined by the President and CEO or the Board of Directors to be in the best interests of the Addus HealthCare Group. 
 The Company may, at its sole discretion, (i) re-assign the Executive within the Company’s organization structure, (ii) change his job description within
the same professional level, (iii) change his work location within fifty (50) miles of the Company’s corporate office in Palatine, Illinois upon six (6) months’ notice, and (iv) add to or delete from his duties under
this Agreement without affecting the enforceability and conditions of this Agreement. 
  

 A-1 

 Job Description 
 Chief Financial Officer 
 Addus Healthcare, Inc. 
 Position Summary 
 Reporting to the President and Chief Executive
Officer, and based in the Company’s corporate office in Palatine, IL, this key senior executive position will provide national leadership to Addus’ Financial Division, which includes the Accounting, Financial Planning, Reimbursement and IT
Departments. The Chief Financial Officer will be the visionary leader for all financial and IT system strategies and initiatives, and will provide direction and guidance in the establishment of national and regional objectives for revenue growth and
profitability. Specific responsibilities will include the following: 
  

	 	•	 	 Provide leadership, direction and guidance on all financial matters to Company managers and the Board. 

  

	 	•	 	 Represent the Company as its financial leader and expert to all lenders, auditors and other third parties, and direct the development of all related financial
reporting packages for these groups. 

  

	 	•	 	 Direct the development and implementation of Company accounting and financial reporting polices and processes, in accordance with established federal, state and
home care industry regulations and guidelines. 

  

	 	•	 	 Direct the Vice President – Finance and Controller and Director of Financial Reporting in the timely and accurate preparation of all Company financial
statements, forecasts, budgets, and related reports and analyses, an in the conduct of monthly financial review discussions. 

  

	 	•	 	 Direct the Director of Reimbursement Department in ensuring the timely and accurate billing of Medicare, Medicaid and other contracting agencies, and the collection
of all accounts receivable, in accordance with established DSO and cash management objectives. 

  

	 	•	 	 Direct the IT Director in the design and implementation of new and modified information systems, the maintenance of existing software systems and hardware, and in
the effective, timely resolution of IT issues. 

  

	 	•	 	 Direct and coordinate the conduct of financial analyses, and related due diligence and integration activities, on all acquisitions. 

 Exhibit B 
 Bonus 
 The Executive is eligible to earn a bonus of up to twenty percent (20%) of his
annual Base Salary during the applicable calendar year based on the Company’s evaluation of the Executive’s performance compared to established Company and individual objectives. 
  

 B-1

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