EXHIBIT 10.7
EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT, dated as of September 1, 2001, by and
among ACCREDO HEALTH, INCORPORATED, a Delaware corporation (the
"Company"), and DAVID D. STEVENS (the "Executive").
W I T N E S S E T H:
WHEREAS, the Company desires to employ the Executive for the
period provided in this Agreement, and the Executive is willing to
accept such employment with the Company on a full-time basis, all in
accordance with the terms and conditions set forth below;
NOW, THEREFORE, for and in consideration of the premises
hereof and the mutual covenants contained herein, the parties hereto
hereby covenant and agree as follows:
1. Employment.
(a) The Company hereby employs the Executive, and the
Executive hereby accepts such employment with the
Company, for the period set forth in Section 2
hereof, all upon the terms and conditions
hereinafter set forth.
(b) The Executive affirms and represents that he is
under no other obligation to any former employer or
other party which is in any way inconsistent with,
or which imposes any restriction upon, the
Executive's acceptance of employment hereunder with
the Company, the employment of the Executive by the
Company, or the Executive's undertakings under this
Agreement.
2. Term of Employment. Unless earlier terminated as hereinafter
provided, the term of the Executive's employment under this Agreement shall
initially be for a period beginning on the date hereof and ending August 31,
2004; provided that on September 1, 2004 and on each September 1 thereafter,
the term of the Executive's employment hereunder shall automatically be
extended for an additional one-year period unless, prior to such September 1,
the Company shall have given the Executive, or the Executive shall have given
the Company, written notice that the Employment Term shall not be so extended.
The period commencing on the date hereof and ending on the earlier of (i) the
termination of Executive's employment hereunder, and (ii) the later of August
31, 2004 or the expiration of all one-year extensions described in the
preceding sentence, is referred to herein as the Employment Term.
If the Executive continues in the full-time employ of the
Company after the end of the Employment Term (it being expressly understood and
agreed that the Company does not now, nor hereafter shall have, any obligation
to continue the Executive in its employ whether or not on a full-time basis,
after said Employment Term ends), then, unless otherwise expressly agreed to by
the Executive and the Company in writing, the Executive's continued employment
by the Company after the Employment Term shall, notwithstanding anything to the
contrary expressed or implied herein, be terminable by the Company at will,
with or without cause and with or without notice, but shall in all other
respects be subject to the terms and conditions of this Agreement.
3. Duties. The Executive shall be employed as Chairman and Chief
Executive Officer of the Company, shall, subject to the direction of the Board
of Directors of the Company (the "Board"), faithfully and competently perform
such duties as inhere in such position and shall also perform and discharge
such other executive employment duties and responsibilities consistent with his
position as Chairman and Chief Executive Officer as the Board of Directors of
the Company may from time to time reasonably prescribe, including serving as
Chairman and Chief Executive Officer of one or more of the Company's
subsidiaries or affiliates. The Executive's primary workplace will be located
in Memphis, Tennessee. Except as set out herein or as may otherwise be approved
in advance by the Board, and except during vacation periods and reasonable
periods of absence due to sickness, personal injury or other disability,
personal affairs or non-profit public service activities, the Executive shall
devote his full time during normal business hours throughout the Employment
Term to the services required of him hereunder. The Executive shall render his
business services exclusively to the Companies (as defined in Section 6(a))
during the Employment Term and shall use his best efforts, judgment and energy
to improve and advance the business and interest of the Companies in a manner
consistent with the duties of his position.
4. Salary and Bonus.
(a) Salary. As compensation for the performance by
the Executive of the services to be performed by
the Executive hereunder during the Employment Term,
the Company shall pay the Executive a base salary
at the annual rate of Three Hundred Fifty Thousand
($350,000.00) Dollars (said amount being
hereinafter referred to as "Salary"). Any Salary
payable hereunder shall be paid in regular
intervals (but in no event less frequently than
monthly) in accordance with the Company's payroll
practices from time to time in effect. The Salary
payable to the Executive pursuant to this Section
4(a) shall be increased annually, as of September
1, 2002 and each September 1 thereafter for the
twelve-month period then commencing, by an amount
equal to (i) the annual percentage increase in the
Consumer Price Index for Urban Consumers, All
Items, Memphis, Tennessee Area, for the most recent
twelve-month period for which such figures are then
available as reported in the Monthly Labor Review
published by the Bureau of Labor Statistics of the
U.S. Department of Labor or (ii) such higher
amount as may be determined from time to time by
the Board in its sole discretion. Any increase in
salary shall be reflected in minutes of the Board
or the Compensation Committee of the Board and this
Agreement shall automatically be amended to reflect
such salary increase without the necessity of a
formal amendment executed by the parties.
(b) Bonus. The Executive will be entitled to receive
bonus compensation from the Company in respect of
each fiscal year (or portion thereof) occurring
during the Employment Term beginning with the year
which starts on July 1, 2001 provided that
Executive is employed by Company on the last day of
said fiscal year. The amount of such bonus
compensation is based on the extent to which the
Company's planned earnings established by the Board
for the corresponding period (the "Plan EPS") and
the Company's revenue target ("Revenue Target") or
such other targets as shall be set by the Board
have been achieved, as set out on Exhibit A.
Exhibit A may be amended each fiscal year to
reflect the Plan EPS, Revenue Target and other
targets established by the Board for the then
current fiscal year. Exhibit A will be replaced
with the revised Exhibit A approved by
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the Board when and as amended without the necessity
of said amendment being executed by the parties
hereto.
(c) Withholding, Etc. The payment of any Salary and
bonus hereunder shall be subject to applicable
withholding and payroll taxes, and such other
deductions as may be required by law or the
Company's employee benefit plans.
5. Other Benefits. During the Employment Term, the Executive
shall:
(i) be eligible to participate in employee
fringe benefits and pension and/or profit
sharing plans that may be provided by the
Company for its senior executive employees
in accordance with the provisions of any
such plans, as the same may be in effect
from time to time;
(ii) be eligible to participate in any medical
and health plans or other employee welfare
benefit plans that may be provided by the
Company for its senior executive employees
in accordance with the provisions of any
such plans, as the same may be in effect
from time to time;
(iii) be entitled to twenty-five paid vacation
days in each calendar year beginning January
1, 2001, as well as all paid holidays given
by the Company to its senior executive
officers;
(iv) be entitled to personal time off, sick
leave, sick pay and disability benefits in
accordance with any Company policy that may
be applicable to senior executive employees
from time to time; and
(v) be entitled to reimbursement for all
reasonable and necessary out-of-pocket
business expenses incurred by the Executive
in the performance of his duties hereunder
in accordance with the Company's policies
applicable thereto.
In addition, from the date hereof until the expiration of
the Employment Term, the Company shall maintain term insurance
coverage on the life of the Executive (excluding any such coverage
provided for pursuant to the foregoing provisions of this Section 5)
in the aggregate amount of $500,000, payable to that Executive's
named beneficiaries in accordance with standard policy terms and
conditions. For purposes of determining eligibility, vesting and
benefit accrual under each of the benefit plans and arrangements
referred to in this Section 5, the Executive shall be credited with
service for all years and partial years of service with NFI, Southern
Health Systems, Inc. ("SHS"), or any of their affiliates prior to
the date hereof.
6. Confidential Information. The Executive hereby covenants,
agrees and acknowledges as follows:
(a) The Executive has and will have access to and will
participate in the development of or be acquainted
with confidential or proprietary information and
trade secrets related to the business of the
Company and any other present or future
subsidiaries or affiliates of the Company
(collectively, with the Company, the "Companies"),
including but not limited to (i) customer and
physician lists; patient histories, patient
identities and related records and compilations of
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information; the identify, lists or descriptions of
any new customers or physicians, referral sources
or organizations; financial statements; cost
reports or other financial information; contract
proposals or bidding information; business plans;
training and operations methods and manuals;
personnel records; software programs; reports and
correspondence; premium structures; and management
systems, policies or procedures, including related
forms and manuals; (ii) information pertaining to
future developments such as future marketing or
acquisition plans or ideas, and potential new
business locations and new suppliers and (iii) all
other tangible and intangible property, which are
used in the business and operations of the
Companies but not made public. The information and
trade secrets relating to the business of the
Companies and described hereinabove in this
paragraph (a) are hereinafter referred to
collectively as the "Confidential Information",
provided that the term Confidential Information
shall not include any information (x) that is or
become generally publicly available (other than as
a result of violation of this Agreement by the
Executive) or (y) that the Executive receives on a
nonconfidential basis from a source (other than the
Companies or their representatives) that is not
known by him to be bound by an obligation of
secrecy or confidentiality to any of the Companies.
(b) The Executive shall not disclose, use or make known
for his or another's benefit any Confidential
Information or use such Confidential Information in
any way except as is in the best interests of the
Companies in the performance of the Executive's
duties under this Agreement. The Executive may
disclose Confidential Information when required by
a third party and applicable law or judicial
process, but only after providing (I) notice to the
Company of any third party's request for such
information, which notice shall include the
Executive's intent with respect to such request,
and (ii) sufficient opportunity for the Company to
challenge or limit the scope of the disclosure on
behalf of the Companies, the Executive or both.
(c) The Executive acknowledges and agrees that a remedy
at law for any breach or threatened breach of the
provisions of this Section 6 would be inadequate and,
therefore, agrees that the Companies shall be
entitled to injunctive relief in addition to any
other available rights and remedies in case of any
such breach or threatened breach; provided, however,
that nothing contained herein shall be construed as
prohibiting the Companies from pursuing any other
rights and remedies available for any such breach or
threatened breach.
(d) The Executive agrees that upon termination of his
employment with the Company for any reason, the
Executive shall forthwith return to the Company all
Confidential Information in whatever form maintained
(including, without limitation, computer discs and
other electronic media).
(e) The obligations of the Executive under this Section 6
shall, except as otherwise provided herein, survive
the termination of the Employment Term and the
expiration or termination of this Agreement.
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(f) Without limiting the generality of Section 10 hereof,
the Executive hereby expressly agrees that the
foregoing provisions of this Section 6 shall be
binding upon the Executive's heirs, successors and
legal representatives.
7. Termination.
(a) The Executive's employment hereunder shall be
terminated upon the occurrence of any of the
following:
(i) death of the Executive;
(ii) The Executive's inability to perform his
duties on account of disability or
incapacity for a period of one hundred
eight (180) or more days, whether or not
consecutive, within any period of twelve
(12) consecutive months;
(iii) the Company giving written notice, at any
time, to the Executive that the Executive's
employment is being terminated "for cause"
(as defined below);
(iv) the Company giving written notice, at any
time, to the Executive that the Executive's
employment is being terminated other than
pursuant to clause (i), (ii) or (iii) above;
or
(v) the Executive giving written notice, at any
time, to the Company that the Executive is
terminating his employment for "good reason"
(as defined below).
The following actions, failures and events by or affecting
the Executive shall constitute "cause" for termination within the meaning of
clause (iii) above: (A) an indictment for or conviction of the Executive of, or
the entering of a plea of nolo contendere by the Executive with respect to,
having committed a felony, (B) acts of fraud or criminal conduct by the
Executive that are detrimental to the financial condition or business
reputation of one or more of the Companies, (C) acts or omissions by the
Executive that the Executive knew were likely to damage the business of one or
more of the Companies, (D) willful failure by the Executive to perform, or
willful disregard by the Executive of, his obligations hereunder or otherwise
relating to his employment, or (E) willful failure by the Executive to obey the
reasonable and lawful policies or orders of the Board that are consistent with
the provisions of this Agreement. For purposes of this Agreement, the
Executive shall not be deemed to have been terminated for cause unless and
until there shall have been delivered to the Executive a copy of a resolution,
duly adopted by the Board, stating that, in the good faith opinion of the
Board, the Executive is guilty of an action or omission that constitutes cause
and specifying the particulars thereof in reasonable detail. Before adopting
any such resolution, the Board shall offer the Executive, upon reasonable
written notice (which need not exceed two days), an opportunity for him
together with his counsel, to be heard by the Board.
The following circumstances shall constitute "good reason"
for termination within the meaning of clause (v) above: (I) the assignment to
the Executive of duties that are materially inconsistent with the Executive's
position or with his authority, duties or responsibilities as contemplated by
Section 3
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of this Agreement, or any other action by the Company or their successors which
results in a material diminution or material adverse change in the Executive's
title, position, authority, duties or responsibilities, (II) any material
breach by the Company or their successors of any provision of this Agreement,
(III) a relocation of the Executive's primary workplace without his written
consent to any location other than the one described in Section 3 hereof, or
(IV) the Company fails to continue in effect any cash or stock-based incentive
or bonus plan, retirement plan, welfare benefit plan or other benefit plan,
unless the aggregate value of all such compensation, retirement and benefit
plans provided to the Executive after the changes is not less than the
aggregate value of the plans as of the date before such plans are changed.
(b) In the event that (A) the Executive's employment is
terminated pursuant to clause (iv) or (v) of
Section 7(a) above, whether during the Employment
Term or during any continuation of employment
pursuant to Section 2 above, or (B) Executive shall
resign his employment within twelve (12) months
following a Change in Control, the Company shall
pay to the Executive, as severance pay or
liquidated damages or both, bi-monthly payments at
the rate per annum of his Salary at the time of
such termination or resignation for a period from
the date of such termination to the first
anniversary of such termination or resignation.
The Executive shall continue to participate in the
medical, dental, life, accident and disability
benefit plans and arrangements of the Company as
provided in Section 5 and on the same basis and at
the same cost to Executive as on the date of
termination until the earlier of (x) the first
anniversary of such termination or resignation, or
(y) the date the Executive becomes covered by a
plan that provides coverage or benefits at least
equal to the Company's plan. In addition, to the
extent that Executive is not then 100% vested in
any employer matching contribution and earnings
thereon allocated to his account in the Company's
401(k) Plan, and said non-vested amount is
forfeited, the Company will pay Executive a lump
sum amount on the date of such forfeiture equal to
the non-vested forfeited amount.
(c) For purposes of this Agreement, "Change in
Control" means and includes each of the following:
(1) The acquisition by any individual,
entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the 1934 Act) (a "Person") of
beneficial ownership (within the meaning of Rule
13d-3 promulgated under the 1934 Act) of 50% or more
of the combined voting power of the then outstanding
voting securities of the Company entitled to vote
generally in the election of directors (the
"Outstanding Corporation Voting Securities");
provided, however, that for purposes of this
subsection (1), the following acquisitions shall not
constitute a Change of Control: (i) any acquisition
directly from the Company, (ii) any acquisition by
the Company, (iii) any acquisition by any employee
benefit plan (or related trust) sponsored or
maintained by the Company or any corporation
controlled by the Company, or (iv) any acquisition by
any corporation pursuant to a transaction which
complies with clauses (i), (ii) and (iii) of
subsection (3) of this definition; or
(2) Individuals who, as of the date of this
Agreement, constitute the Board (the "Incumbent
Board") cease for any reason to constitute at least a
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majority of the Board; provided, however, that any
individual becoming a director subsequent to the
Effective Date whose election, or nomination for
election by the Company's stockholders, was approved
by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be
considered as though such individual were a member of
the Incumbent Board, but excluding, for this purpose,
any such individual whose initial assumption of
office occurs as a result of an actual or threatened
election contest with respect to the election or
removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf
of a Person other than the Board; or
(3) Consummation of a reorganization, merger
or consolidation or sale or other disposition of all
or substantially all of the assets of the Company (a
"Business Combination"), in each case, unless,
following such Business Combination, (i) all or
substantially all of the individuals and entities who
were the beneficial owners of the Outstanding
Corporation Voting Securities immediately prior to
such Business Combination beneficially own, directly
or indirectly, more than 50% of the combined voting
power of the then outstanding voting securities
entitled to vote generally in the election of
directors of the Company resulting from such Business
Combination (including, without limitation, a
corporation which as a result of such transaction
owns the Company or all or substantially all of the
Company's assets either directly or through one or
more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to
such Business Combination of the Outstanding
Corporation Voting Securities, and (ii) no Person
(excluding any corporation resulting from such
Business Combination or any employee benefit plan (or
related trust) of the Company or such corporation
resulting from such Business Combination)
beneficially owns, directly or indirectly, 50% or
more of the combined voting power of the then
outstanding voting securities of such corporation
except to the extent that such ownership existed
prior to the Business Combination, and (iii) at least
a majority of the members of the board of directors
of the corporation resulting from such Business
Combination were members of the Incumbent Board at
the time of the execution of the initial agreement,
or of the action of the Board, providing for such
Business Combination; or
(4) Approval by the stockholders of the
Company of a complete liquidation or dissolution of
the Company.
(d) Notwithstanding anything to the contrary
expressed or implied herein, except as required by
applicable law and except as set forth in Section
7(b) above, the Company (and its affiliates) shall
not be obligated to make any payments to the
Executive or on his behalf of whatever kind or
nature by reason of the Executive's cessation of
employment (including, without limitation, by
reason of termination of the Executive's employment
by the Company for "cause"), other than (i) such
amounts, if any, of his Salary as shall have
accrued and remained unpaid as of the date of said
cessation, (ii) such other amounts, if any, which
may be then otherwise payable to the Executive
pursuant to clause (v) of Section 5 above, and
(iii) any amounts owed or obligations to the
Executive pursuant to the terms of any option or
other stock-based award granted to him by the
Company.
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(e) No interest shall accrue on or be paid with
respect to any portion of any payments timely
made hereunder.
8. Non-Assignability.
(a) Neither this Agreement nor any right or interest
hereunder shall be assignable by the Executive or
his beneficiaries or legal representatives without
the Company's prior written consent; provided,
however, that nothing in this Section 8(a) shall
preclude the Executive from designating a
beneficiary to receive any benefit payable
hereunder upon his death or incapacity. Neither
this Agreement nor any right or interest hereunder
shall be assignable by the Company; provided,
however, that notwithstanding the foregoing, this
Agreement and the Company's rights and interests
hereunder may be assigned by the Company pursuant
to a merger or consolidation in which the Company
is not the continuing entity, or the sale or
liquidation of all or substantially all of the
assets of the Company, provided that (i) the
assignee or transferee is the successor to all or
substantially all of the assets of the Company and
(ii) such assignee or transferee assumes the
liabilities, obligations and duties of the Company,
as contained in this Agreement, either
contractually or as a matter of law.
(b) Except as required by law, no right to receive
payments under this Agreement shall be subject to
anticipation, commutation, alienation, sale,
assignment, encumbrance, charge, pledge, or
hypothecation or to exclusion, attachment, levy or
similar process or to assignment by operation of law,
and any attempt, voluntary or involuntary, to effect
any such action shall be null, void and of no effect.
9. Restrictive Covenants
(a) Competition. During the Employment Term,
during any continuation of employment pursuant to
Section 2 above and during the twelve (12) month
period following termination of the Executive's
employment with the Company for any reason,
provided that payments, if any, required pursuant
to Section 7(b) hereof are made in full and in a
timely fashion, the Executive will not directly or
indirectly (as a director, officer, executive
employee, manager, consultant, independent
contractor, advisory or otherwise) engage in
competition with, or own any interest in, perform
any services for, participate in or be connected
with any business or organization which engages in
competition with any of the Companies within the
meaning of Section 9(d), provided, however, that
the provisions of this Section (a) shall not be
deemed to prohibit the Executive's ownership of not
more than two percent (2%) of the total shares of
all classes of stock outstanding of any publicly
held company, or ownership, whether through direct
or indirect stockholding or otherwise, of one
percent (1%) or more of any other business.
(b) Non-Solicitation. During the Employment Term,
during any continuation of employment pursuant to
Section 2 above and during the twelve (12) month
period following termination of the Executive's
employment with the Company for any reason,
provided that payments, if any, required pursuant
to Section 7(b)
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hereof are made in full and in a timely fashion,
the Executive will not knowingly directly or
indirectly induce or attempt to induce any employee
of any of the Companies to leave the employ of any
of the Companies or of their subsidiaries or
affiliates, or in any way interfere with the
relationship between any of the Companies and any
employee thereof.
(c) Non-Interference. During the twelve (12) month period
following termination of the Executive's employment
with the Company for any reason, provided that
payments, if any, required pursuant to Section 7(b)
hereof are made in full and in a timely fashion, the
Executive will not directly or indirectly hire,
engage, send any work to, place orders with, or in
any manner be associated with any business entity
which, during the period of twelve months preceding
or following such termination of employment, was
among the five largest suppliers of the Company by
dollar volume.
(d) Certain Definitions. For purposes of this
Section 9, a person or entity (including without
limitation, the Executive) shall be deemed to be a
competitor of one or more of the Companies, or a
person or entity (including, without limitation,
the Executive) shall be deemed to be engaging in
competition with one or more of the Companies, if,
at the time of determination, such person or entity
(A) engages in any business engaged in or proposed
to be engaged in by any of the Companies, or (B) in
any way conducts, operates, carries out or engages
in the business of managing any entity engaged in
any business described in clause (A), in each case,
in any state of the United States of America,
excluding, however, during any period following the
termination of the Executive's employment with the
Company, (x) any business or any state in which
none of the Companies was engaged or had proposed
to be engaged at the time of termination of the
Executive's employment with the Company, and (y)
after termination of the Executive's employment,
any business which was not, prior to such
termination, directly or indirectly supervised by
the Executive.
(e) Certain Representations of the Executive. In
connection with the foregoing provisions of this
Section 9, the Executive represents that his
experience, capabilities and circumstances are such
that such provisions will not prevent him from
earning a livelihood. The Executive further agrees
that the limitations set forth in this Section 9
(including, without limitation, time and
territorial limitations) are reasonable and
properly required for the adequate protection of
the current and future businesses of the Companies.
It is understood and agreed that the covenants made
by the Executive in this Section 9 shall survive
the expiration or termination of this Agreement.
(f) Injunctive Relief. The Executive acknowledges and
agrees that a remedy at law for any breach or
threatened breach of the provisions of Section 9
hereof would be inadequate and, therefore, agrees
that the Company and any of its subsidiaries or
affiliates shall be entitled to injunctive relief
in addition to any other available rights and
remedies in cases of any such breach or threatened
breach; provided, however, that nothing contained
herein shall be construed as prohibiting the
Company or any of its affiliates from pursuing any
other rights and remedies available for any such
breach or threatened breach.
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10. Indemnity. To the maximum extent permitted by applicable law
and the charter and by-laws of the Company, the Company shall indemnify the
Executive and hold him harmless; for any acts or decisions made by him in good
faith while performing services for the Company or any of its subsidiaries or
affiliates. Company will use reasonable best efforts to maintain, and after
termination to continue, coverage for Executive under director's and officer's
liability coverage to the same extent as other current or former officers and
directors of the Company and its subsidiaries or affiliates. The Company will,
to the extent provided by its charter and by-laws and applicable law, advance
or pay all expenses, including attorney's fees actually and necessarily
incurred by the Executive in connection with the defense of any action, suit or
proceeding arising out of Executive's service for the Company and in connection
with any appeal thereon, including the cost of court settlements.
11. No Mitigation. In the event of Executive's resignation or
termination of the Executive's employment under Section 7, the Executive shall
be under no obligation to seek other employment and there shall be no offset
against any amounts due the Executive under this Agreement on account of any
remuneration attributable to any subsequent employment that the Executive may
obtain.
12. Binding Effect. Without limiting or diminishing the effect
of Section 8 hereof, this Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective heirs, successors, legal
representatives and assigns.
13. Notices. All notices which are required or may be given
pursuant to the terms of this Agreement shall be in writing and shall be
sufficient in all respects if given in writing and (i) delivered personally,
(ii) mailed by certified or registered mail, return receipt requested and
postage prepaid, (iii) sent via a nationally recognized overnight courier or
(iv) sent via facsimile confirmed in writing to the recipient, if to the
Company at the Company's principal place of business, and if to the Executive,
at his home address most recently filed with the Company, or to such other
address or addresses as either party shall have designated in writing to the
other party hereto.
14. Enforcement. Any dispute arising under this Agreement shall,
at the election of either party, be resolved by final and binding arbitration
to be held in Memphis, Tennessee in accordance with the rules and procedures of
the American Arbitration Association. Judgment upon the award entered by the
arbitrator(s) may be entered in any court having jurisdiction thereof.
15. Law Governing. This Agreement shall be governed by and
construed in accordance with the laws of the State of Tennessee.
16. Severability. The Executive agrees that in the event that any
court of competent jurisdiction shall finally hold that any provision of
Section 6 or 9 hereof is void or constitutes an unreasonable restriction
against the Executive, the provisions of such Section 6 or 9 shall not be
rendered void but shall apply with respect to such extent as such court may
judicially determine constitutes a reasonable restriction under the
circumstances. If any part of this Agreement other than Section 6 or 9 is held
by a court or competent jurisdiction to be invalid, illegal or incapable of
being enforced in whole or in part by reason of any rule of law or public
policy, such part shall be deemed to be severed from the remainder of this
Agreement for the purpose only of the particular legal proceedings in question
and all other covenants and provisions of this Agreement shall in every other
respect continue in full force and effect and no covenant or provision shall be
deemed dependent upon any other covenant or provision.
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17. Waiver. Failure to insist upon strict compliance with any of
the terms, covenants or conditions hereof shall not be deemed a waiver of such
term, covenant or condition, nor shall any waiver or relinquishment of any
right or power hereunder at any one or more times be deemed a waiver or
relinquishment of such right or power at any other time or times.
18. Entire Agreement; Modifications. This Agreement constitutes
the entire and final expression of the agreement of the parties with respect to
the subject matter hereof and supersedes all prior agreements, oral and
written, between the parties hereto with respect to the subject matter hereof.
This Agreement may be modified or amended only by an instrument in writing
signed by both parties hereto.
19. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the Company and the Executive have duly executed
and delivered this Agreement as of the date and year first above written.
ACCREDO HEALTH, INCORPORATED
By: /s/ Thomas W. Bell, Jr.
----------------------------
Thomas W. Bell, Jr.
Sr. Vice President
----------------------------
/s/ David D. Stevens
----------------------------
DAVID D. STEVENS
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