Document:

Exhibit 10.27

Separation and General Release Agreement dated January 20, 2006, 

between InfoTech USA, Inc. and Sebastian Perez

 

January 20, 2006

 

Mr. Sebastian Perez

 

Dear Seb:

 

This letter is to accept your resignation from InfoTech USA, Inc., with thanks for your years of service.  This letter is also to set forth the terms of the benefits you will receive in exchange for your agreements as set forth herein.

 

1.        (a)Your resignation as of January 20, 2005 is hereby accepted.  On the next regular payroll date, January 31, 2006, InfoTech will pay you for any unpaid wages plus accrued and unused vacation pay, in each case less applicable withholding amounts.

 

(b)           If you elect to continue your current health insurance coverage in accordance with COBRA, InfoTech will pay up to three months’ of COBRA premiums.  You will receive a package regarding COBRA.  If and when you elect to continue your benefits, please notify Bob Patterson by e-mail at bpatterson@infotechusa.com and he will arrange for your COBRA premiums to be paid.

 

2.             On the next regular payroll date following the eighth day after this letter, InfoTech will pay to you $6,630.00.  On each subsequent regular payroll date, InfoTech will pay you the same amount until the total of the payments under this paragraph equals $39,780.00, fourteen weeks of financial compensation.   In all cases, the actual amount of the check will be reduced by applicable withholding amounts as if you were still an employee.

 

3.             Upon reasonable request therefore, you agree that you will cooperate with InfoTech, its affiliates and their counsel (i) in connection with any litigation, arbitration or dispute that may from time to time arise relating to events while you were employed with InfoTech, and (ii) with respect to your duties while you were employed with InfoTech.  While we have no expectation that this will occur, this cooperation may include serving as a witness in a deposition, trial or hearing.  If any cooperation is requested of you pursuant to this paragraph, InfoTech will reimburse you for your reasonable out-of-pocket expenses in connection therewith upon presentment by you of receipts for such expenses.  Nothing in this paragraph is intended to suggest that your cooperation will involve your taking a position
that is not, in your good faith judgment, accurate and true.  InfoTech will use reasonable efforts to minimize the time and travel burden in connection with any requested cooperation.

 

5.            You, for yourself and your heirs, successors and assigns, hereby unconditionally release, settle, compromise, quitclaim and forever discharge InfoTech, its affiliates, directors, shareholders, employees and agents and affiliates’ directors, shareholders, partners, employees and agents, and all persons acting in concert with them (collectively, the “Released Parties”) from any and all claims, debts, contracts, promises, option grants (except as specifically set forth herein), sums of money, claims for recoupment, fees, warranties, compensation, counterclaims, cross claims, rights, obligations, demands, losses, damages, trespasses, bonds, executions, liabilities, suits, actions and causes of action, actual or potential which you ever had, now have or may have, in law or equity, of every nature or
description, whether known or unknown, suspected or unsuspected, foreseen or unforeseen, actual or potential (including, without limitation, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1988, the Fair Labor Standards Act, the Americans with Disabilities Act, the Employee Retirement Income Security Act and any similar or analogous state statute), against the Released Parties or their respective property, which exist as of the date hereof or arise hereafter as a result of any act, transaction, agreement, event or omission occurring or committed from the beginning of time to the date hereof. 

 

6.            You will have the right to revoke your agreement to paragraphs 2 through 5 of this letter agreement by delivering a written notice to InfoTech (c/o Bob Patterson) which notice is received on or prior to the 

 

 

seventh day following the date hereof, whereupon paragraphs 2 through 5 shall terminate and be of no force or effect.

 

You agree, for a period of five years from the date hereof, not to malign InfoTech or its affiliates, or any of their officers, employees, or directors.  You also agree not to disclose or cause to be disclosed the provisions of this agreement, except as required by law or as permitted by InfoTech, including the terms of this paragraph 6.  You also agree not to disclose or cause to be disclosed, except as required by law or as permitted by InfoTech, any information (which is not already in the public domain) that you learned as a result of your employment with InfoTech.

 

You agree to refrain for a period of twelve months from contacting or soliciting INFOTECH USA, INC. customers on behalf of any company doing business in competition with INFOTECH USA, INC., including all accounts that you had previously contacted or solicited while employed by INFOTECH USA, INC..

 

You also agree not to induce or attempt to influence any present or future employee of the Company to leave INFOTECH USA, INC. for a period of eighteen months subsequent to the termination of your employment with the company.

 

If the foregoing accurately reflects your understanding of the agreement between InfoTech and you, please sign this letter agreement and the enclosed copy and send one of them to InfoTech (c/o Bob Patterson), whereupon this letter agreement will constitute a binding agreement between us.

 

Very truly yours,

 

INFOTECH USA, INC.  

 

By:          /s/ Jonathan F. McKeage    

Name:  Jonathan F. McKeage

	
             
 	
            Title:  
 	
            President and CEO 
 

 

Agreed to and accepted

 

        /s/ Sebastian Perez        DATE:  January 20, 2006

	
             
 	
            Sebastian Perez<PAGE>
                                                                     EXHIBIT 4.1

                               AMENDMENT NO. 1 TO
                                RIGHTS AGREEMENT

         AMENDMENT NO. 1 (the "Amendment"), dated as of May 12, 2006, to the
Rights Agreement, dated as of November 18, 1998, between American Retirement
Corporation, a Tennessee corporation (the "Company"), and American Stock
Transfer and Trust Company (the "Rights Agent") (the "Rights Agreement").

                                    RECITALS

         WHEREAS, Brookdale Senior Living Inc., a Delaware corporation
("Purchaser"), Beta Merger Sub Corporation, a Delaware corporation and
wholly-owned subsidiary of Purchaser ("Sub"), and the Company contemplate
entering into the Merger Agreement (as defined below) pursuant to which Sub will
merge with and into the Company (the "Merger"). The Board of Directors of the
Company has approved the Merger Agreement.

         WHEREAS, pursuant to Section 27 of the Rights Agreement, prior to the
Distribution Date (as defined in the Rights Agreement), the Company may, and the
Rights Agent shall if the Company so directs, from time to time supplement and
amend the Rights Agreement without the approval of any holders of certificates
representing shares of Common Stock.

         WHEREAS, no Distribution Date has yet occurred and there is not any
Acquiring Person and, in accordance with Section 27 of the Rights Agreement, an
officer of the Company has delivered a certificate as to the compliance of this
Amendment with said Section 27.

         WHEREAS, the Board of Directors of the Company has determined that an
amendment to the Rights Agreement as set forth herein is necessary and desirable
in connection with the foregoing and the Company and the Rights Agent desire to
evidence such amendment in writing.

         WHEREAS, all other acts and things necessary to make this Amendment a
valid agreement, enforceable according to its terms, have been done and
performed, and the execution and delivery of this Amendment by the Company and
the Rights Agent have been in all respects duly authorized by the Company and
the Rights Agent.

         NOW THEREFORE, in consideration of the mutual covenants and agreements
set forth herein and in the Rights Agreement, the parties hereto, intending to
be legally bound, agree as follows:

         A. Amendment of Section 1. Section 1 of the Rights Agreement is hereby
amended and supplemented to add the following definitions in the appropriate
locations:

         "Purchaser" means, collectively, Brookdale Senior Living Inc., a
         Delaware

<PAGE>

         corporation, and Beta Merger Sub Corporation , a Delaware corporation.

         "Merger" shall mean the "Merger" as such term is defined in the Merger
         Agreement.

         "Merger Agreement" shall mean the Agreement and Plan of Merger, dated
         as of May 12, 2006, by and among the Company, Brookdale Senior Living
         Inc. and Beta Merger Sub Corporation, as it may be amended from time to
         time.

         B. Amendment of the definition of "Acquiring Person". The definition of
"Acquiring Person" in Section 1(a) of the Rights Agreement is hereby amended and
supplemented by adding the following sentence at the end thereof:

                  "Notwithstanding anything in this Rights Agreement to the
         contrary, neither Purchaser nor any of its Affiliates or Associates
         shall be deemed to be an Acquiring Person for purposes of this Rights
         Agreement solely by virtue of one or more of (i) the approval,
         execution or delivery of the Merger Agreement, (ii) the public or other
         announcement of the Merger Agreement or the transactions contemplated
         thereby, (iii) the consummation of the Merger or (iv) the consummation
         of any other transaction contemplated in the Merger Agreement (each
         such event, to the extent such event occurs prior to the termination of
         the Merger Agreement in accordance with its terms, an "Exempt Event")."

         C. Amendment of the definition of "Stock Acquisition Date". The
definition of "Stock Acquisition Date" in Section 1(t) of the Rights Agreement
is hereby amended and supplemented by adding the following sentence at the end
thereof:

                  "Notwithstanding anything in this Rights Agreement to the
         contrary, a Stock Acquisition Date shall not be deemed to have occurred
         solely as the result of an Exempt Event."

         D. Amendment of definition of "Section 11(a)(ii) Event". The definition
of "Section 11(a)(ii) Event" in Section 1(r) of the Rights Agreement is hereby
amended and supplemented by adding the following sentence at the end thereof:

                  "Notwithstanding anything in this Rights Agreement to the
         contrary, a Section 11(a)(ii) Event shall not be deemed to have
         occurred solely as a result of an Exempt Event."

         E. Amendment of definition of "Section 13 Event". The definition of
"Section 13 Event" in Section 1(s) of the Rights Agreement is hereby amended and
supplemented by adding the following sentence at the end thereof:

                  "Notwithstanding anything in this Rights Agreement to the
         contrary, a Section 13 Event shall not be deemed to have occurred
         solely as a result of an Exempt Event."

                                      -2-

<PAGE>

         F. Amendment of definition of "Triggering Event". The definition of
"Triggering Event" in Section 1(v) of the Rights Agreement is hereby amended and
supplemented by adding the following sentence at the end thereof:

                  "Notwithstanding anything in this Rights Agreement to the
         contrary, a Triggering Event shall not be deemed to have occurred
         solely as a result of an Exempt Event."

         G. Amendment to Section 3(a). Section 3(a) of the Rights Agreement is
hereby amended and supplemented by adding the following proviso immediately
following the words "...the earlier of (i) and (ii) above being the
'Distribution Date'" in the third parenthetical in Section 3(a):

                  "; provided however, that notwithstanding anything in this
         Rights Agreement to the contrary, a Distribution Date shall not be
         deemed to have occurred solely as the result of an Exempt Event."

         H. Amendment of Section 3. Section 3 of the Rights Agreement is hereby
amended and supplemented to add the following sentence at the end thereof as
Section 3(d):

                  "Nothing in this Rights Agreement shall be construed to give
         any holder of Rights or any other Person any legal or equitable rights,
         remedies or claims under this Rights Agreement by virtue of an Exempt
         Event."

         I. Amendment of Section 11. Section 11 of the Rights Agreement is
hereby amended and supplemented to add the following clause at the end thereof
as Section 11(a)(iv):

                  "(iv) Notwithstanding the foregoing or anything else in this
         Rights Agreement to the contrary, this Section 11(a) shall not apply to
         any Exempt Event."

         J. Amendment of Section 13. Section 13 of the Rights Agreement is
hereby amended and supplemented to add the following clause at the end thereof
as Section 13(f):

                  "(f) Notwithstanding the foregoing or anything else in this
         Rights Agreement to the contrary, an Exempt Event shall not cause the
         Rights to be adjusted or exercisable in accordance with, or any other
         obligation to arise pursuant to, this Section 13."

         K. Amendment of the Rights Agreement to add a new Section. The Rights
Agreement is hereby amended and supplemented to add the following Section 35:

                  "Section 35. Termination of this Agreement.

                  As of the Effective Time (as defined in the Merger Agreement),
         this Agreement shall terminate and shall forthwith become void and have
         no effect, without any liability or obligation on the part of the
         Company, the Rights Agent or the holders of any Rights."

         L. Effectiveness. This Amendment shall be deemed effective as of, and
immediately prior to, the execution and delivery of the Merger Agreement. Except
as amended

                                      -3-
<PAGE>

hereby, the Rights Agreement shall remain in full force and effect and shall be
otherwise unaffected hereby.

         M. Miscellaneous. This Amendment shall be deemed to be a contract made
under the laws of the State of Tennesee and for all purposes shall be governed
by and construed in accordance with the laws of such state applicable to
contracts executed in and to be performed entirely in such state. This Amendment
may be executed in any number of counterparts, each of such counterparts shall
for all purposes be deemed to be an original, and all such counterparts shall
together constitute but one and the same instrument. If any provision, covenant
or restriction of this Amendment is held by a court of competent jurisdiction or
other authority to be invalid, illegal or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Amendment shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.
Except as otherwise expressly provided herein, or unless the context otherwise
requires, all terms used herein have the meanings assigned to them in the Rights
Agreement. The Rights Agent and the Company hereby waive any notice requirement
under the Rights Agreement pertaining to the matters covered by this Amendment.

                                      -4-

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed and attested, all as of the date and year first written above.

                                       AMERICAN RETIREMENT CORPORATION

                                       By:
                                           ------------------------------------
                                           Name:
                                           Title:

                                       AMERICAN STOCK TRANSFER AND TRUST COMPANY

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                      -5-

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