Document:

Amendment to the Employment Agreement, dated May 7, 2007

     

    
      
        

      

    AMENDMENT

    TO
      EMPLOYMENT AGREEMENT

    

    THIS
      AMENDMENT is made effective as of May 7, 2007 (the “Amendment Effective Date”),
      by and among Omega Healthcare Investors, Inc., a Maryland corporation (the
      “Company”) and R. Lee Crabill (the “Executive”).

    

    RECITALS:

    

    The
      Company and the Executive are parties to an employment agreement effective
      as of
      September 1, 2004 (the “Employment Agreement”); and

    

    The
      parties wish to amend the Employment Agreement to extend the term of the
      Employment Agreement, update the base salary payable to the Executive, and
      remove the gross-up feature for payments made to the Executive that result
      in an
      excise tax in connection with a change in control. 

    

    In
      consideration of the mutual promises herein contained and other good and
      valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereto agree to amend the Employment Agreement,
      effective as of the date first set forth above, as follows:

    

    1.  By
      deleting the first sentence of Section 2(a) and substituting therefor the
      following:

    

    “The
      Company shall pay the Executive base salary of $253,400 per annum, which base
      salary will be subject to review effective as of January 1, 2008, and at least
      annually thereafter by the Company for possible increases. 

    

    2.  By
      deleting the first sentence of Section 2(b) and substituting therefor the
      following:

    

    “The
      Executive shall be eligible for an annual bonus of up to 50% of the Executive’s
      annual base salary (“Bonus”), which Bonus, if any, shall be payable
      (i) promptly following the availability to the Company of the required data
      to calculate the Bonus for the year for which the Bonus is earned (which data
      may in the Company’s discretion include audited financial statements), and
      (ii) by no later than March 15 of the year following the year for which the
      Bonus is earned.” 

    

    3.  By
      deleting the year “2007” where it appears in Section 2(b) and substituting
      therefor the year “2010.”

    

    4.  By
      deleting in its entirety Section 2(e) and substituting therefor the
      following:

    

    “(e) Paid
      Time Off.
      The
      Executive shall be entitled to paid time off in accordance with the terms of
      Company policy in effect at the Amendment Effective Date.”

    

    5.  By
      deleting in its entirety Section 3(a) and substituting therefor the
      following:

    

    “(a) Term.
      The
      term of this Agreement shall begin as of the Amendment Effective Date. It shall
      continue through December 31, 2010, unless sooner terminated pursuant to Section
      3(b) hereof (the ‘Term’).”

    

    6.  By
      deleting the last three sentences of Section 3(c)(i) and replacing therefor
      the
      following:

    

    “Such
      amount shall be paid in substantially equal annual installments not less
      frequently than twice per month over a twelve (12) month period; provided,
      however, if the Executive is a "specified employee" within the meaning of
      Section 409A of the Internal Revenue Code, as amended (the “Code”), at the date
      of his termination of employment then, to the extent required to avoid a tax
      under Code Section 409A, payments which would otherwise have been made during
      the first six (6) months after termination of employment shall be withheld
      and
      paid to the Executive during the seventh month following the date of his
      termination of employment. Notwithstanding the foregoing, if the total payments
      to be paid to the Executive hereunder, along with any other payments to the
      Executive, would result in the Executive being subject to the excise tax imposed
      by Code Section 4999, the Company shall reduce the aggregate payments to the
      largest amount which can be paid to the Executive without triggering the excise
      tax, but only if and to the extent that such reduction would result in the
      Executive retaining larger aggregate after-tax payments. The determination
      of
      the excise tax and the aggregate after-tax payments to be received by the
      Executive will be made by the Company. If payments are to be reduced, the
      payments made latest in time will be reduced first.”

    

    7.  By
      deleting the first sentence of Section 5(a) and substituting therefor the
      following:

    

    “The
      Executive agrees that during the Applicable Period, the Executive will not
      (except on behalf of or with the prior written consent of the Company, which
      consent may be withheld in Company’s sole discretion), within the Area either
      directly or indirectly, on his own behalf, or in the service of or on behalf
      of
      others, provide managerial services or management consulting services
      substantially similar to those Executive provides for the Company to any
      Competing Business.”

    

    8.  By
      deleting in its entirety Section 5(b) and substituting therefor the
      following:

    

    “(b) The
      Executive agrees that during the Applicable Period, he will not, either directly
      or indirectly, on his own behalf or in the service of or on behalf of others
      solicit any individual or entity which is an actual or, to his knowledge,
      actively sought prospective client of the Company or any of its Affiliates
      (determined as of date of termination of employment) with whom he had material
      contact while he was an Executive of the Company, for the purpose of offering
      services substantially similar to those offered by the Company.”

    

    9.  By
      deleting the first sentence of Section 5(c) and substituting therefor the
      following:

    

    “The
      Executive agrees that during the Applicable Period, he will not, either directly
      or indirectly, on his own behalf or in the service of or on behalf of others,
      solicit for employment with a Competing Business any person who is a management
      level employee of the Company or an Affiliate with whom Executive had contact
      during the last year of Executive’s employment with the Company.”

    

    10.  By
      deleting the year “2007” where it appears in Section 5(f) and substituting
      therefor the year “2010.”

    

    11.  By
      deleting in its entirety Section 9(c) and substituting therefor the
      following:

    

    “(c) ‘Area’
means
      Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia,
      Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Massachusetts, Missouri,
      New Hampshire, North Carolina, Ohio, Pennsylvania, Rhode Island, Tennessee,
      Texas, Utah, Vermont, Washington, and West Virginia.” 

    

    12.  By
      adding
      the word “Amendment” immediately preceding the term “Effective Date” where it
      appears in the head language of Section 9(f).

    

    In
      all
      remaining respects, the terms of the Employment Agreement shall remain in full
      force and effect as prior to this Amendment.

    

    IN
      WITNESS WHEREOF, the parties have caused this Amendment to be executed as of
      the
      day and year first above written.

    

    OMEGA
      HEALTHCARE INVESTORS, INC.:

    

    By:
      _______________________________________

    

    Print
      Name: ________________________________

    

    Title:
      _____________________________________

    

    

    

    R.
      LEE
      CRABILL:

    

    

    __________________________________________Amendment to the Employment Agreement, dated May 7, 2007

     

    
      
        

      

    AMENDMENT

    TO
      EMPLOYMENT AGREEMENT

    

    THIS
      AMENDMENT is made effective as of May 7, 2007 (the “Amendment Effective Date”),
      by and among Omega Healthcare Investors, Inc., a Maryland corporation (the
      “Company”) and Robert O. Stephenson (the “Executive”).

    

    RECITALS:

    

    The
      Company and the Executive are parties to an employment agreement effective
      as of
      September 1, 2004 (the “Employment Agreement”); and

    

    The
      parties wish to amend the Employment Agreement to extend the term of the
      Employment Agreement, update the base salary payable to the Executive, and
      remove the gross-up feature for payments made to the Executive that result
      in an
      excise tax in connection with a change in control. 

    

    In
      consideration of the mutual promises herein contained and other good and
      valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereto agree to amend the Employment Agreement,
      effective as of the date first set forth above, as follows:

    

    1.  By
      deleting the first sentence of Section 2(a) and substituting therefor the
      following:

    

    “The
      Company shall pay the Executive base salary of $262,700 per annum, which base
      salary will be subject to review effective as of January 1, 2008, and at least
      annually thereafter by the Company for possible increases. 

    

    2.  By
      deleting the first sentence of Section 2(b) and substituting therefor the
      following:

    

    “The
      Executive shall be eligible for an annual bonus of up to 50% of the Executive’s
      annual base salary (“Bonus”), which Bonus, if any, shall be payable
      (i) promptly following the availability to the Company of the required data
      to calculate the Bonus for the year for which the Bonus is earned (which data
      may in the Company’s discretion include audited financial statements), and
      (ii) by no later than March 15 of the year following the year for which the
      Bonus is earned.” 

    

    3.  By
      deleting the year “2007” where it appears in Section 2(b) and substituting
      therefor the year “2010.”

    

    4.  By
      deleting in its entirety Section 2(e) and substituting therefor the
      following:

    

    “(e) Paid
      Time Off.
      The
      Executive shall be entitled to paid time off in accordance with the terms of
      Company policy in effect at the Amendment Effective Date.”

    

    5.  By
      deleting in its entirety Section 3(a) and substituting therefor the
      following:

    

    “(a) Term.
      The
      term of this Agreement shall begin as of the Amendment Effective Date. It shall
      continue through December 31, 2010, unless sooner terminated pursuant to Section
      3(b) hereof (the ‘Term’).”

    

    6.  By
      deleting the last three sentences of Section 3(c)(i) and replacing therefor
      the
      following:

    

    “Such
      amount shall be paid in substantially equal annual installments not less
      frequently than twice per month over a twelve (12) month period; provided,
      however, if the Executive is a "specified employee" within the meaning of
      Section 409A of the Internal Revenue Code, as amended (the “Code”), at the date
      of his termination of employment then, to the extent required to avoid a tax
      under Code Section 409A, payments which would otherwise have been made during
      the first six (6) months after termination of employment shall be withheld
      and
      paid to the Executive during the seventh month following the date of his
      termination of employment. Notwithstanding the foregoing, if the total payments
      to be paid to the Executive hereunder, along with any other payments to the
      Executive, would result in the Executive being subject to the excise tax imposed
      by Code Section 4999, the Company shall reduce the aggregate payments to the
      largest amount which can be paid to the Executive without triggering the excise
      tax, but only if and to the extent that such reduction would result in the
      Executive retaining larger aggregate after-tax payments. The determination
      of
      the excise tax and the aggregate after-tax payments to be received by the
      Executive will be made by the Company. If payments are to be reduced, the
      payments made latest in time will be reduced first.”

    

    7.  By
      deleting the first sentence of Section 5(a) and substituting therefor the
      following:

    

    “The
      Executive agrees that during the Applicable Period, the Executive will not
      (except on behalf of or with the prior written consent of the Company, which
      consent may be withheld in Company’s sole discretion), within the Area either
      directly or indirectly, on his own behalf, or in the service of or on behalf
      of
      others, provide managerial services or management consulting services
      substantially similar to those Executive provides for the Company to any
      Competing Business.”

    

    8.  By
      deleting in its entirety Section 5(b) and substituting therefor the
      following:

    

    “(b) The
      Executive agrees that during the Applicable Period, he will not, either directly
      or indirectly, on his own behalf or in the service of or on behalf of others
      solicit any individual or entity which is an actual or, to his knowledge,
      actively sought prospective client of the Company or any of its Affiliates
      (determined as of date of termination of employment) with whom he had material
      contact while he was an Executive of the Company, for the purpose of offering
      services substantially similar to those offered by the Company.”

    

    9.  By
      deleting the first sentence of Section 5(c) and substituting therefor the
      following:

    

    “The
      Executive agrees that during the Applicable Period, he will not, either directly
      or indirectly, on his own behalf or in the service of or on behalf of others,
      solicit for employment with a Competing Business any person who is a management
      level employee of the Company or an Affiliate with whom Executive had contact
      during the last year of Executive’s employment with the Company.”

    

    10.  By
      deleting the year “2007” where it appears in Section 5(f) and substituting
      therefor the year “2010.”

    

    11.  By
      deleting in its entirety Section 9(c) and substituting therefor the
      following:

    

    “(c) ‘Area’
means
      Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia,
      Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Massachusetts, Missouri,
      New Hampshire, North Carolina, Ohio, Pennsylvania, Rhode Island, Tennessee,
      Texas, Utah, Vermont, Washington, and West Virginia.” 

    

    12.  By
      adding
      the word “Amendment” immediately preceding the term “Effective Date” where it
      appears in the head language of Section 9(f).

    

    In
      all
      remaining respects, the terms of the Employment Agreement shall remain in full
      force and effect as prior to this Amendment.

    

    IN
      WITNESS WHEREOF, the parties have caused this Amendment to be executed as of
      the
      day and year first above written.

    

    OMEGA
      HEALTHCARE INVESTORS, INC.:

    

    By:
      _______________________________________

    

    Print
      Name: ________________________________

    

    Title:
      _____________________________________

    

    

    

    ROBERT
      O.
      STEPHENSON:

    

    

    __________________________________________

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