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EXHIBIT 10.4

 

 

                              EMPLOYMENT AGREEMENT

 

 

        THIS EMPLOYMENT AGREEMENT  ("Agreement") is made and entered into on the

  26th day of May,  1999, by and between  Capital Senior Living  Corporation,  a

  Delaware  corporation  ("CSL" or "the  Company"),  and  Lawrence A. Cohen,  an

  individual  residing in the State of New York  ("Employee").  The term of this

  Agreement  shall be deemed to have  commenced as of June 1, 1999  ("Employment

  Commencement Date").

 

        1. APPOINTMENT,  TITLE AND DUTIES.  CSL hereby employs Employee to serve

  in the positions as assigned to him by its Board of Directors, which currently

  shall be as its Chief Executive  Officer and as the Vice Chairman of its Board

  of Directors  and a member of the  Executive  Committee of the Board.  In such

  capacity,  Employee  shall  report to the  Chairman  of the Company of CSL and

  shall  have  such  powers,  duties  and  responsibilities  as are  customarily

  assigned  to the  Chief  Executive  Officer  and Vice  Chairman.  In  addition

  Employee shall have such other duties and  responsibilities  as may reasonably

  be  assigned  to him by the Board of  Directors,  including  serving  with the

  consent  or at the  request  of CSL on the board of  directors  of  affiliated

  corporations.

 

        2. TERM OF AGREEMENT.  The initial term of this Agreement shall be for a

  three  (3) year  period  ending  on May 31,  2002,  however,  the term of this

  Agreement  shall  automatically  be  extended  for a one  (1)  year  term on a

  consecutive  basis.  The term of this  Agreement may be extended by the mutual

  written  consent of the Employee and Company.  This Agreement  shall terminate

  upon the earlier of: (i) the date of the  voluntary  resignation  of Employee,

  (ii) the date of Employee's death or  determination  of Employee's  disability

  (as defined in Paragraph 6 below), (iii) the date of notice by CSL to Employee

  that this Agreement is being terminated by CSL whether "for cause" (as defined

  in Paragraph 6 below) or without cause,  (iv) upon the date a notice of intent

  to resign for "good  reason" (as defined in Paragraph 6 below) is delivered to

  the Company by Employee, or (v) expiration of the term.

 

        3.  ACCEPTANCE  OF  POSITION.  Employee  hereby  accepts  the  positions

  assigned  by the Board of  Directors,  and agrees that during the term of this

  Agreement he will faithfully perform his duties and will devote  substantially

  all of his  business  time to the  business  and  affairs  of CSL and will not

  engage,  for his own account or for the account of any other person or entity,

  in any other business or enterprise  except with the express written  approval

  of the Board of Directors of CSL.  Employee may, at his sole  discretion,  (i)

  serve as a director on the boards of directors of other  entities,  businesses

  and  enterprises  he  currently  serves  on, and (ii) make  personal,  passive

  investments.  Employee agrees to perform his duties faithfully, diligently and

  to the  best of his  ability,  to use his best  efforts  to  advance  the best

  interests of the Company at all times, and to abide by all moral,  ethical and

  lawful policies, guidelines, procedures,  instructions and orders given to him

  by the Company from time to time;  PROVIDED,  HOWEVER,  that in no event shall

  Employee  be  required  to move from the New York  City,  New York  area.  The

  Company will provide an office either in New York City or the immediate  area.

  Employee  shall  spend a  reasonable  amount of time in Dallas to conduct  the

  affairs of the Company.

 

        4. SALARY AND BENEFITS. During the term of this Agreement:

 

 

 

 

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                 A) CSL shall pay to Employee a base salary at an annual rate of

  not less than $300,000 per annum, paid in approximately  equal installments no

  less  frequently  than  semi-monthly.  An  annual  bonus of  thirty-three  and

  one-third  percent  (33-1/3%)  of  Employee's  base  salary  shall  be paid in

  quarterly  installments,  subject to meeting  performance  standards  that the

  Company's  reported  quarterly  earnings  per share is not less than the First

  Call consensus earnings per share for that quarter, and subject to increase by

  the Compensation Committee. The Compensation Committee will use its reasonable

  discretion to determine  the amount of the  quarterly  bonus to be paid if the

  reported  quarterly earnings per share are lower than the First Call consensus

  earnings per share. The Company shall deduct from Employee's  compensation and

  bonus all applicable local, state,  Federal or foreign taxes,  including,  but

  not limited to, income tax,  withholding  tax, social security tax and pension

  contributions (if any).

 

                  B)  Employee  shall  participate  in all  health,  retirement,

  Company-paid  insurance,  sick leave,  disability,  expense  reimbursement and

  other  benefit  programs,  if any,  which  CSL  makes  available,  in its sole

  discretion,  to its  senior  executives;  however,  nothing  herein  shall  be

  construed  to obligate  the Company to  establish  or  maintain  any  employee

  benefit  program.  The Company may  purchase and maintain in force a death and

  disability  insurance  policy in an amount at all times equal to not less than

  an amount equal to Employee's  annual base salary multiplied by three (3). The

  Company shall be the  beneficiary of said policy and shall use said policy for

  the  purposes  described  in  Paragraph  7(A)(i),   below.   Reimbursement  of

  Employee's  reasonable and necessary business expenses incurred in the pursuit

  of the  business  of the  Company  or any of its  affiliates  shall be made to

  Employee upon his  presentation to the Company of itemized bills,  vouchers or

  accountings  prepared  in  conformance  with  applicable  regulations  of  the

  Internal Revenue Service and the policies and guidelines of the Company.

 

                  C) Employee  shall be entitled to reasonable  vacation time in

  an  amount  of four (4) weeks per year  pursuant  to the  Company's  Corporate

  Policies and Procedures Manual.

 

         5. STOCK  OPTIONS.  If the Company  adopts a stock option plan or other

  incentive  compensation  plan,  Employee  shall  receive  options to  purchase

  Company  Common  Stock.  The number of shares of Common  Stock of the  Company

  covered by options to be granted to  Employee  and the  exercise  price of the

  options shall be determined by the Compensation  Committee,  if it exists, and

  in the absence of a  Compensation  Committee,  by the Board of Directors.  The

  number of shares and approximate  vesting schedule of such options shall be at

  least as  favorable to Employee as those  contained in options  granted to any

  other officer of the Company and its subsidiaries.

 

         6. CERTAIN TERMS DEFINED. For purposes of this Agreement:

 

                  A)  Employee  shall be deemed to be  disabled if a physical or

  mental  condition shall occur and persist which, in the written opinion of two

  (2) licensed physicians, has rendered Employee unable to perform the duties of

  Chief Executive Officer, Vice Chairman and member of the Board of Directors of

  CSL for a period of ninety (90) calendar days or more, and which condition, in

  the opinion of such physicians, is likely to continue for an indefinite period

  of time, rendering Employee unable to return to his duties for CSL. One (1) of

  the two (2)  physicians  shall  be  selected  in good  faith  by the  Board of

  Directors of CSL, and the other of the two (2) physicians

 

 

 

 

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  shall be  selected  in good faith by  Employee.  In the event that the two (2)

  physicians  selected  do not agree as to  whether  Employee  is  disabled,  as

  described  above,  then said two (2)  physicians  shall  mutually agree upon a

  third (3rd) physician  whose written opinion as to Employee's  condition shall

  be conclusive upon CSL and Employee for purposes of this Agreement.

 

                  B) A  termination  of  Employee's  employment  by CSL shall be

  deemed  to be "for  cause"  if it is based  upon  (i) a  final,  nonappealable

  conviction of Employee for commission of a felony  involving moral  turpitude,

  (ii) Employee's willful gross misconduct that causes material economic harm to

  the Company or that brings substantial  discredit to the Company's reputation,

  or (iii)  Employee's  material  failure or  refusal  to perform  his duties in

  accordance with this Agreement, if Employee has failed to cure such failure or

  refusal to perform within thirty (30) days after the Company notifies Employee

  in writing of such failure or refusal to perform.

 

                  C) A  resignation  by  Employee  shall  not  be  deemed  to be

  voluntary,  and shall be deemed to be a resignation for "good reason" if it is

  based upon (i) a material diminution in Employee's duties which is not part of

  an overall  diminution  for all executive  officers of the Company,  or (ii) a

  material  breach by CSL of the Company's  obligations  to Employee  under this

  Agreement or under the Company's Stock Option Plan, if adopted.

 

                  D) A  Fundamental  Change  shall  be  defined  as  any  of the

  following:  (A) a merger,  consolidation,  statutory  share  exchange or sale,

  lease,  exchange or other transfer (in one  transaction or a series of related

  transactions)  of all or  substantially  all of the assets of the Company that

  requires  the consent or vote of the holders of the  Company's  Common  Stock,

  other than a  consolidation,  merger or share exchange of the Company in which

  the  holders  of  the  Company's  Common  Stock   immediately  prior  to  such

  transaction  have the same  proportionate  ownership  of  Common  Stock of the

  surviving corporation immediately after such transaction; (B) the stockholders

  of the Company approve any plan or proposal for the liquidation or dissolution

  of the  Company;  (C) the  cessation  of  control  (by  virtue  of  their  not

  constituting a majority of directors) of the Board of Directors of the Company

  by the individuals  (the  "Continuing  Directors") who (x) at the date of this

  Agreement  were  directors  or (y)  become  directors  after  the date of this

  Agreement  and whose  election or  nomination  for  election by the  Company's

  stockholders  was approved by a vote of at least  two-thirds  of the directors

  then in  office  who were  directors  at the date of this  Agreement  or whose

  election or  nomination  for election  was  previously  so  approved;  (D) the

  acquisition  of beneficial  ownership  (within the meaning of Rule 13d-3 under

  the  Securities  Exchange  Act of 1934) of an  aggregate of 20% or more of the

  voting power of the Company's  outstanding  voting securities by any person or

  group (as such term is used in Rule 13d-5 under the Securities Exchange Act of

  1934)  who  beneficially  owned  less  than  15% of the  voting  power  of the

  Company's outstanding voting securities on the date of this Agreement,  or the

  acquisition of beneficial ownership of an additional 5% of the voting power of

  the  Company's  outstanding  voting  securities  by any  person  or group  who

  beneficially  owned  at  least  15%  of the  voting  power  of  the  Company's

  outstanding  voting  securities  on the  date  of  this  Agreement;  provided,

  however,  that  notwithstanding  the  foregoing,   an  acquisition  shall  not

  constitute a Fundamental  Change hereunder if the acquiror is (x) a trustee or

  other  fiduciary  holding  securities  under an employee  benefit  plan of the

  Company and acting in such  capacity,  (y) a  wholly-owned  subsidiary  of the

  Company or a corporation owned, directly or indirectly, by the stockholders of

  the Company in the same proportions as their ownership of voting securities of

  the  Company or (z) any other  person  whose  acquisition  of shares of voting

  securities is approved in

 

 

 

 

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     advance by a majority  of the  Continuing  Directors;  or (E) in a Title 11

     bankruptcy proceeding,  the appointment of a trustee or the conversion of a

     case involving the Company to a case under Chapter 7.

 

         7.       CERTAIN BENEFITS AND OBLIGATIONS UPON TERMINATION.

 

                  A) In the event  that  Employee's  employment  terminates  (i)

     because of death or disability,  (ii) because CSL has  terminated  Employee

     other than "for cause," as described  above, or (iii) because  Employee has

     voluntarily resigned for "good reason," as described above, then,

 

                           i)      CSL shall pay Employee in accordance with its

     Corporate  Policies and  Procedures  Manual his base salary plus his annual

     bonus paid during the term of this Agreement in the past twelve (12) months

     for the balance of the term of this  Agreement  (not  including  any future

     extensions), but not less than two (2) years (base salary plus annual bonus

     paid during the term of this  Agreement  in the past twelve (12) months for

     three (3) years if termination  due to a Fundamental  Change) from the date

     of the notice of  termination,  and  Employee  shall retain all his Company

     stock options that are vested; provided, however, the benefits described in

     this Paragraph 7(A)(i) shall terminate at such time as Employee  materially

     breaches the provisions of Paragraphs 7(D), 8, or 9 hereof.

 

                           ii)      All accrued but unpaid or unused vacation,

     sick pay and expense  reimbursement  shall be calculated in accordance with

     CSL's Corporate  Policies and Procedures  Manual and shall be promptly paid

     to Employee upon such termination.

 

                  B) In the event that Employee's  employment terminates for any

     other cause other than those set forth in Paragraph 7(A), which can include

     but  not  be  limited  to  voluntary   resignation   without  good  reason,

     termination  by CSL "for cause,"  expiration of the term of the  Agreement,

     etc., then,

 

                           i)       CSL shall promptly pay Employee his base

     salary and pro-rated annual bonus up to and through the date of termi-

     nation;

 

                           ii)      All accrued but unpaid or unused vacation,

     sick pay and expense reimbursement  shall be calculated in accordance with

     CSL's Corporate Policies and Procedures Manual and shall be  promptly  paid

     to Employee upon such termination.

 

                  C) In the  event  that  Employee's  employment  terminates  by

  reason of his death,  all benefits  provided in this Paragraph 7 shall be paid

  to  Employee's  estate or as his  executor  or personal  representative  shall

  direct,  but  payment may be deferred  until  Employee's  executor or personal

  representative  has been appointed and qualified pursuant to the law in effect

  in Employee's jurisdiction of residence at the time of his death;

 

                  D)  Following  the  termination  for any reason of  Employee's

  employment,  Employee  shall not for himself or any third  party,  directly or

  indirectly  (i) divert or attempt to divert from the Company or its affiliated

  companies  any  business  of any  kind in  which  it is or has  been  engaged,

  including,  without  limitation,  the solicitation of,  interference  with, or

  entering into any

 

 

 

 

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  contract  with any of its past or then  existing  customers,  and (ii) employ,

  solicit for employment, or recommend for employment any person employed by the

  Company  or its  affiliated  companies  during  the  period  of such  person's

  employment and for a period of two (2) years thereafter.

 

         8. CONFIDENTIALITY. Employee hereby acknowledges his understanding that

  as a result of his  employment by CSL, he will have access to, and  possession

  of,  valuable and important  confidential or proprietary  data,  documents and

  information  concerning  CSL, its  operations  and its future plans.  Employee

  hereby agrees that he will not,  either during the term of his employment with

  CSL,  or at any time  after the term of his  employment  with CSL,  divulge or

  communicate to any person or entity, or direct any employee or agent of CSL or

  of his to  divulge  or  communicate  to any  person or  entity,  or use to the

  detriment of CSL or for the benefit of any other person or entity,  or make or

  remove any copies of, such  confidential  information or  proprietary  data or

  information,  whether or not marked or otherwise identified as confidential or

  secret.  Upon any  termination  of this  Agreement for any reason  whatsoever,

  Employee  shall  surrender  to CSL any and all  materials,  including  but not

  limited to drawings, manuals, reports,  documents,  lists, photographs,  maps,

  surveys,  plans,  specifications,  accountings and any and all other materials

  relating to the Company or any of its business,  including all copies thereof,

  that Employee has in his possession,  whether or not such material was created

  or  compiled  by  Employee,  but  excluding,   however,  personal  memorabilia

  belonging  to  Employee  and  notes  taken by him as a member  of the Board of

  Directors.  With  the  exception  of such  excluded  items,  materials,  etc.,

  Employee  acknowledges  that all such  material is solely the property of CSL,

  and that  Employee  has no right,  title or interest in or to such  materials.

  Notwithstanding  anything to the contrary  set forth in this  Paragraph 8, the

  Provisions of this Paragraph 8 shall not apply to information which: (i) is or

  becomes generally available to the public other than as a result of disclosure

  by  Employee,  or (ii) is  already  known to  Employee  as of the date of this

  Agreement from sources other than CSL, or (iii) is required to be disclosed by

  law or by regulatory or judicial process.

 

         9. NON-COMPETITION.  Employee hereby agrees that during the term of his

  employment  with the  Company  and for a  period  of one (1)  year  after  any

  termination for any reason whatsoever of this Agreement,  he will not and will

  cause his  Affiliates  not to,  directly or  indirectly,  acquire,  develop or

  operate senior living  facilities  anywhere in the United  States,  other than

  through the Company and its subsidiaries  except as otherwise requested by the

  Company.  CSL hereby  acknowledges  and agrees that Employee's  ownership of a

  class  of   securities   listed  on  a  stock   exchange   or  traded  on  the

  over-the-counter  market  that  represents  five  percent  (5%) or less of the

  number of shares of such class of securities then issued and outstanding shall

  not constitute a violation of this Paragraph 9.

 

         10.  WORK   PRODUCT.   The  Employee   agrees  that  all   innovations,

  improvements,  developments,  methods,  designs,  analyses,  reports  and  all

  similar or related  information  which  relates to the Company's or any of its

  subsidiaries' or affiliates'  actual or anticipated  business,  or existing or

  future products or services and which are conceived,  developed or made by the

  Employee while employed by the Company ("Work  Product") belong to the Company

  or such subsidiary or affiliate. The Employee will promptly disclose such Work

  Product to the Board and perform all actions reasonably requested by the Board

  (whether  during or after the  employment  period) to establish and to confirm

  such ownership (including, without limitation,  assignments,  consents, powers

  of attorney and other instruments).

 

 

 

 

<PAGE>

 

 

 

         11. LEGAL ACTION. In the event that any action or proceeding is brought

  to enforce the terms and provisions of this  Agreement,  the prevailing  party

  shall be  entitled to recover  reasonable  attorneys'  fees and costs.  In the

  event of a breach  or  threatened  breach by  Employee  of the  provisions  of

  Paragraph  7(D), 8, 9, or 10, Employee and the Company agree that the Company,

  shall,  in  addition  to any  other  available  remedies,  be  entitled  to an

  injunction  restraining  Employee from  violating the terms of the  applicable

  Paragraph and that said  injunction is appropriate  and proper relief for such

  violation.

 

         12. NOTICES.  All notices and other  communications  provided to either

  party hereto under this  Agreement  shall be in writing and  delivered by hand

  delivery,   overnight  courier  service  or  certified  mail,  return  receipt

  requested,  to the party  being  notified  at said  party's  address set forth

  adjacent to said party's signature on this Agreement, or at such other address

  as may be  designated  by a party  in a notice  to the  other  party  given in

  accordance  with this  Agreement.  Notices given by hand delivery or overnight

  courier  service shall be deemed received on the date of delivery shown on the

  courier's  delivery  receipt or log.  Notices given by certified mail shall be

  deemed received three (3) days after deposit in the U.S. Mail.

 

         13. CONSTRUCTION.  In construing this Agreement, if any portion of this

  Agreement shall be found to be invalid or  unenforceable,  the remaining terms

  and provisions of this  Agreement  shall be given effect to the maximum extent

  permitted without considering the void, invalid or unenforceable provision. In

  construing  this  Agreement,  the  singular  shall  include  the  plural,  the

  masculine shall include the feminine and neuter genders,  as appropriate,  and

  no meaning or effect shall be given to the captions of the  paragraphs in this

  Agreement, which are inserted for convenience of reference only.

 

         14.  CHOICE OF LAW;  SURVIVAL.  This  Agreement  shall be governed  and

  construed in  accordance  with the internal laws of the State of Texas without

  resort to choice of law  principles.  The provisions of Paragraphs 7, 8, 9, 10

  and 17  shall  survive  the  termination  of this  Agreement  for  any  reason

  whatsoever.

 

         15.  INTEGRATION;  AMENDMENTS.  This is an integrated  Agreement.  This

  Agreement constitutes and is intended as a final expression and a complete and

  exclusive  statement of the  understanding and agreement of the parties hereto

  with  respect  to the  subject  matter of this  Agreement.  All  negotiations,

  discussions  and writings  between the parties hereto  relating to the subject

  matter of this  Agreement  are merged  into this  Agreement,  and there are no

  rights  conferred,  nor  promises,   agreements,   conditions,   undertakings,

  warranties or representations,  oral or written, expressed or implied, between

  the  undersigned  parties as to such matters  other than as  specifically  set

  forth herein.  No amendment or  modification of or addendum to, this Agreement

  shall be valid  unless the same shall be in writing  and signed by the parties

  hereto.  No waiver of any of the provisions of this  Agreement  shall be valid

  unless in  writing  and  signed by the party  against  whom it is sought to be

  enforced.

 

         16. BINDING  EFFECT.  This Agreement is binding upon and shall inure to

  the  benefit  of the  parties  hereto  and their  respective  heirs,  personal

  representatives,  successors  and assigns;  PROVIDED,  HOWEVER,  that Employee

  shall not be entitled to assign his interest in this Agreement  (except for an

  assignment by operation of law to his estate),  or any portion hereof,  or any

  rights hereunder, to any

 

 

 

 

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  party. Any attempted  assignment by Employee in violation of this Paragraph 16

  shall be  null,  void,  ab  initio  and of no  effect  of any  kind or  nature

  whatsoever.

 

         17.      REGISTRATION RIGHT.

 

                  A) If the Company at any time  proposes to register any of its

  securities  under the Securities  Act for sale to the public,  whether for its

  own account or for the account of other security  holders or both (except with

  respect to  registration  statements  on Forms S-4 or S-8 or another  form not

  available for registering the Registrable  Securities for sale to the public),

  each such time it will give written  notice to Employee of its intention so to

  do. Upon the written  request of Employee,  received by the Company  within 30

  days after the giving of any such  notice by the  Company,  the  Company  will

  cause the Registrable  Securities as to which  registration shall have been so

  requested to be included in the  securities to be covered by the  registration

  statement proposed to be filed by the Company,  all to the extent requisite to

  permit the sale or other  disposition  by  Employee  (in  accordance  with its

  written  request) of such  Registrable  Securities  so  registered;  provided,

  however,  that if the managing  underwriter of the Company's offering delivers

  in good faith a written  opinion to Employee  that  either  because of (A) the

  kind of securities which the Employee or the Company intends to include in the

  offering or (B) the size of the offering  which Employee or the Company intend

  to make,  the success of the offering or the market for the  Company's  common

  stock would be  materially  and  adversely  affected by the  inclusion  of the

  Registrable Securities requested to be included (I) in the event that the size

  of the  offering  is the basis for the  managing  underwriter's  opinion,  the

  amount of the  securities  to be offered for the account of the  Employee  and

  each other person  registering  securities of the Company  pursuant to similar

  incidental  registration  rights  shall  be  reduced  pro  rata to the  extent

  necessary  to reduce the total  amount of  securities  to be  included in such

  offering to the amount  reasonably  recommended by such managing  underwriter;

  and (II) in the event that the  combination of securities to be offered is the

  basis of such managing  underwriter's  opinion, 1) the Registrable  Securities

  and other  securities  to be  included  in such  offering  shall be reduced as

  described  in clause (I) above or, 2) if the actions  described  in clause (I)

  would, in the reasonable judgment of the managing underwriter, be insufficient

  to  substantially  eliminate the material and adverse effect that inclusion of

  the  Registrable  Securities  requested  to be  included  would  have  on such

  offering,  such  Registrable  Securities  will be excluded from such offering.

  Notwithstanding  the  foregoing  provisions,  the  Company  may  withdraw  any

  registration  statement  referred to in this Paragraph  17(A) without  thereby

  incurring  any  liability  to Employee.  The Company  shall not be required to

  register  shares of  Registrable  Securities of Employee after the Company has

  filed two (2) registration  statements which included  Registrable  Securities

  and such registration statements have become effective, remained effective for

  the period of distribution, and the transaction described therein were closed.

 

                  B) If and whenever the Company is required by Paragraph  17(A)

  to effect a piggy back  registration,  the Company shall as  expeditiously  as

  possible:

 

                           i) prepare and file with the Securities and Exchange

  Commission ("Commission") a registration statement (which, in the case of an

  underwritten public  offering shall be on Form S-1, Form S-2, Form S-3, any

  successor forms thereto, or other form of general  applicability  satisfactory

  to the managing underwriter selected as therein provided) with respect to such

  securities and use its best efforts to cause such registration statement to

  become and remain

 

 

 

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     effective  for the  period of the  distribution  contemplated  thereby ( as

     determined  hereinafter ); provided,  however that the Company may postpone

     the filing,  effectiveness,  supplementing  or amending of the registration

     statement  for up to 90 days if, in the good faith opinion of the Company's

     Board of Directors,  the  registration  or sale of  Registrable  Securities

     would adversely affect a material  financing,  acquisition,  disposition of

     assets or stock,  merger or other  comparable  transaction or would require

     the Company to make public  disclosure of information the public disclosure

     of which would have a material adverse effect upon the Company.  During any

     time that the Company defers  amending or  supplementing  the  registration

     statement,   the  holders  of  Registrable   Securities  shall  discontinue

     disposing of Registrable Securities;

 

                           ii)      subject to the proviso in subparagraph (i),

     prepare and file with the Commission  such  amendments  and  supplements to

     such registration statement and the prospectus used in connection therewith

     as may be necessary to keep such registration  statement  effective for the

     period of distribution and comply with the provisions of the Securities Act

     with respect to the  disposition of all Registrable  Securities  covered by

     such  registration  statement in  accordance  with the  intended  method of

     disposition set forth in such registration statement for such period;

 

                           iii)     furnish to Employee and to each underwriter

     such  number of copies of the  registration  statement  and the  prospectus

     included therein  (including each  preliminary  prospectus) as such persons

     reasonably  may  request in order to  facilitate  the public  sale or other

     disposition  of the  Registrable  Securities  covered by such  registration

     statement;

 

                           iv)      use its best efforts to register or qualify

     the Registrable Securities covered by such registration statement under the

     securities or "blue sky" laws of such  jurisdictions as the Employee or, in

     the case of an  underwritten  public  offering,  the  managing  underwriter

     reasonably shall request,  provided however, that the Company shall not for

     any such purpose be required to qualify generally to transact business as a

     foreign  corporation in any jurisdiction where it is not so qualified or to

     consent to general service of process in any such jurisdiction;

 

                           v)       use its best efforts to list or qualify for

     quotation the Registrable Securities covered by such registration statement

     with any securities exchange or inter-dealer  quotation system on which the

     common stock of the Company is then listed or quoted;

 

                           vi)     notify Employee at any time when a prospectus

     relating to  Registrable  Securities is required to be delivered  under the

     Securities  Act or the  happening  of any  event as a result  of which  the

     prospectus  included  in such  registration  statement  contains  an untrue

     statement  of a  material  fact or  omits  any fact  necessary  to make the

     statements  therein not  misleading,  and, at the request of Employee,  the

     Company will prepare a supplement or amendment to such  prospectus so that,

     as thereafter  delivered to the purchasers of such Registrable  Securities,

     such prospectus will not contain an untrue  statement of a material fact or

     omit to  state  any  fact  necessary  to make the  statements  therein  not

     misleading, provided that the 180-day period described below will be tolled

     from the time a prospectus  contains  such a statement or omission  until a

     prospectus  correcting such statement or omission has been delivered to the

     Employee  and  may be  delivered  to the  purchasers  of  such  Registrable

     Securities in compliance with the Securities Act;

 

                           vii)     notify the Employee immediately, and confirm

     the notice in writing,

 

 

 

 

<PAGE>

 

 

 

     (1) when the registration statement becomes effective,  (2) of the issuance

     by  the  Commission  of  any  stop  order  or of  the  initiation,  or  the

     threatening, of any proceedings for that purpose, (3) of the receipt by the

     Company of any notification with respect to the suspension of qualification

     of the  Registrable  Securities  for  sale  in any  jurisdiction  or of the

     initiation,  or the threatening,  of any proceedings for that purpose,  and

     (4) of the receipt of any comments, or requests for additional information,

     from the Commission or any state regulatory authority. If the Commission or

     any state  regulatory  authority  shall  enter  such a stop  order or order

     suspending  qualification  at any time,  the Company will  promptly use its

     best reasonable efforts to obtain the lifting of such order; and

 

                           viii)   otherwise use its best efforts to comply with

     -all applicable rules and regulations of the Commission, and make available

     to its security  holders as soon as reasonably  practicable,  but not later

     than 15 months after the effective date of the  registration  statement,  a

     statement  covering  a period  of at least 12  months  beginning  after the

     effective date of the  registration  statement,  which  earnings  statement

     shall satisfy the provisions of Section 11(a) of the Securities Act.

 

         For  purposes  hereof,   the  period  of  distribution  of  Registrable

     Securities  in a firm  commitment  underwritten  public  offering  shall be

     deemed to extend until each  underwriter has completed the  distribution of

     all  securities  purchased  by  it,  and  the  period  of  distribution  of

     Registrable  Securities in any other registration shall be deemed to extend

     until the earlier of the sale of all Registrable Securities covered thereby

     or 180 days after the effective date thereof.

 

         In connection with each registration  hereunder,  Employee will furnish

     to  the  Company  in  writing  such  information  with  respect  to it as a

     stockholder as reasonably shall be necessary in order to assure  compliance

     with federal and applicable state securities laws.

 

         In connection  with each  registration  pursuant to Paragraph 17 hereof

     covering an underwritten public offering, the Company and Employee agree to

     use  their  best  efforts  to  select  a  managing   underwriter  (and  any

     co-managers)  and to enter  into a  written  agreement  with  the  managing

     underwriter  selected  in the  manner  herein  provided  in such  form  and

     containing such provisions as are customary in the securities  business for

     such an arrangement between such underwriter and companies of the Company's

     size and investment stature.

 

                  C) All  expenses  incurred  by the Company in  complying  with

     Paragraph 17 hereof,  including,  without limitation,  all registration and

     filing  fees,  printing  expenses,  fees and  disbursements  of counsel and

     independent  public   accountants  for  the  Company,   fees  and  expenses

     (including  counsel fees) incurred in connection  with complying with state

     securities  or  "blue  sky"  laws,  fees  of the  National  Association  of

     Securities  Dealers,  Inc.,  transfer  taxes,  fees of transfer  agents and

     registrars,  costs of insurance,  and fees and disbursements of one counsel

     for  the  Employee  but   excluding  any  Selling   Expenses,   are  called

     "Registration Expenses." All underwriting discounts and selling commissions

     applicable  to the  sale of  Registrable  Securities  are  called  "Selling

     Expenses."

 

                           i)    The Company shall pay all Registration Expenses

     attributable  to the  shares  of  Registrable  Securities  included  in the

     registration in connection with each registration statement under Paragraph

     17 hereof.

 

 

 

 

<PAGE>

 

 

 

 

                           ii)      All Selling Expenses in connection with each

     such registration  statement  applicable to Registrable  Securities sold by

     Employee shall be borne by the Employee.

 

                  D) Subject to applicable  law, the Company will indemnify each

  underwriter, the Employee and each person controlling any of them, against all

  claims,  losses,  damages and liabilities,  including legal and other expenses

  reasonably  incurred,  arising out of any untrue  statement of a material fact

  contained in the registration  statement,  or any omission to state a material

  fact required to be stated in the registration  statement or necessary to make

  the statements not misleading,  or arising out of any violation by the Company

  of the  Securities  Act,  any  state  securities  or  "blue-sky"  laws  or any

  applicable  rule or  regulation.  This  indemnification  will not apply to any

  claims,  losses,  damages or liabilities to the extent that they may have been

  caused by an untrue statement or omission based upon information  furnished in

  writing to the  Company  by such  underwriter,  the  Employee  or  controlling

  person,  respectively,  expressly for use in the registration statement.  With

  respect to such untrue  statement or omission in the information  furnished in

  writing to the  Company by the  Employee,  the  Employee  will  indemnify  the

  underwriters,  the  Company,  its  directors  and  officers,  and each  person

  controlling  any of them  against any  losses,  claims,  damages,  expenses or

  liabilities to which any of them may become subject as a result of such untrue

  statement or omission.

 

                  E)  The  registration   rights  of  the  Employee  under  this

  Agreement may be transferred to any trust,  family partnership or other family

  entity  formed by Employee to hold shares of common stock and to any member of

  the family of the Employee.

 

                  F) In the event of any merger, consolidation or share exchange

  pursuant to which the Company is not the  surviving or resulting  corporation,

  the  Company's  obligations  under this  Paragraph 17 shall be assumed by such

  surviving or resulting corporation.

 

         18.  CANCELLATION OF PRIOR EMPLOYMENT  AGREEMENT.  Employee and Company

  hereby agree that the Employment  Agreement,  dated November 1, 1996,  between

  Employee and Company shall be, upon execution and delivery of this  Agreement,

  canceled and of no further force and effect.

 

 

 

 

 

 

<PAGE>

 

 

 

         IN WITNESS  WHEREOF,  the parties have executed  this  Agreement on the

  date set forth above to be effective as of the date  specified in the preamble

  of this Agreement.

 

                                              CAPITAL SENIOR LIVING CORPORATION,

                                              a Delaware corporation

 

  Address:

  14160 Dallas Parkway, #300

  Dallas, TX  75240                           By:  /s/ James A. Stroud

                                                   -----------------------------

                                                   James A. Stroud, Chairman

 

                                              EMPLOYEE

 

  Address:

  41 Willow Road

  Woodsburgh, NY  11598                       /s/ Lawrence A. Cohen

                                              ----------------------------------

                                              Lawrence A. Cohen

 

 

 

 

 

 

 

 

EXHIBIT 10.106

 

                    SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

                              OF LAWRENCE A. COHEN

 

This second amendment (the "Amendment") to the Employment Agreement of Lawrence

A. Cohen is entered into effective as of January 16, 2003, by and between

Capital Senior Living Corporation (the "Company") and Lawrence A. Cohen

("Employee").

 

WHEREAS, the Company and Employee entered into the Employment Agreement dated

June 1, 1999, as amended by the Amendment to Employment Agreement dated June 1,

2002, (the "Employment Agreement"), and

 

WHEREAS, the Company and Employee desire to amend the Employment Agreement.

 

NOW, THEREFORE, in consideration of the foregoing, the mutual promises of the

parties hereto and other good and valuable consideration, the receipt and

sufficiency of which are hereby acknowledged, the parties hereto agree as

follows:

 

      1.    The first phrase of the second sentence of Paragraph 1 that reads,

            "In such capacity, Employee shall report to the Chairman of the

            Company of CSL" shall be deleted, and the following substituted in

            its place: "In such capacity, Employee shall have the duties

            specified for such position in the CSL Bylaws in effect from time to

            time and shall report to the Board of Directors of CSL".

 

IN WITNESS WHEREOF, this Amendment has been duly executed on the 27 day of

January, 2003.

 

                                    COMPANY: CAPITAL SENIOR LIVING CORPORATION

 

                                    By: /s/ David R. Brickman

                                        --------------------------------------

 

 

                                    EMPLOYEE:

 

                                    By: /s/ Lawrence A. Cohen

                                       ---------------------------------------

                                            Lawrence A. Cohen

 

 

 

EXHIBIT 10.1

 

 

                     THIRD AMENDMENT TO EMPLOYMENT AGREEMENT

                              OF LAWRENCE A. COHEN

 

 

 

This third amendment (the  "Amendment") to the Employment  Agreement of Lawrence

A. Cohen is entered  into  effective  as of February  11,  2004,  by and between

Capital  Senior  Living  Corporation  (the  "Company")  and  Lawrence  A.  Cohen

("Employee").

 

WHEREAS,  the Company and Employee  entered into the Employment  Agreement dated

June 1, 1999, as amended by the Amendment to Employment  Agreement dated June 1,

2002, and the Second  Amendment to Employment  Agreement dated January 16, 2003,

(the "Employment Agreement"), and

 

WHEREAS, the Company and Employee desire to amend the Employment Agreement.

 

NOW,  THEREFORE,  in consideration of the foregoing,  the mutual promises of the

parties  hereto and other  good and  valuable  consideration,  the  receipt  and

sufficiency  of which are  hereby  acknowledged,  the  parties  hereto  agree as

follows:

 

          1.   At the end of Paragraph  17(A),  the following  sentence shall be

               added: "The offering by the Company completed using the Company's

               Prospectus  Supplement  dated  January 28,  2004  pursuant to the

               Company's Form S-3 Registration Statement shall not be considered

               one (1) of the two (2)  registration  statements  of the  Company

               which would limit Employee's  registration rights as described in

               the preceding  sentence,  since Employee  voluntarily  waived his

               registration rights with respect to such offering."

 

IN WITNESS  WHEREOF,  this  Amendment  has been duly executed on the 11th day of

February, 2004.

 

                                    COMPANY: CAPITAL SENIOR LIVING CORPORATION

 

 

 

                                    By: /s/ James A. Stroud

                                       -----------------------------------------

 

 

                                    EMPLOYEE:

 

 

 

                                    By: /s/ Lawrence A. Cohen

                                       -----------------------------------------

                                            Lawrence A. Cohen

 

 

EX-10.1 2 c99412exv10w1.htm EXHIBIT 10.1

Exhibit 10.1

FOURTH AMENDMENT TO EMPLOYMENT AGREEMENT
OF LAWRENCE A. COHEN

This fourth amendment (the “Amendment”) to the Employment Agreement of Lawrence A. Cohen is entered into effective as of January 1, 2010, by and between Capital Senior Living Corporation (the “Company”) and Lawrence A. Cohen (“Employee”).

WHEREAS, the Company and Employee entered into the Employment Agreement effective June 1, 1999, as amended by the Amendment to Employment Agreement dated June 1, 2002, and the Second Amendment to Employment Agreement dated January 16, 2003, and the Third Amendment to Employment Agreement dated February 11, 2004 (the “Employment Agreement”), and

WHEREAS, the Company and Employee desire to amend the Employment Agreement.

NOW, THEREFORE, in consideration of the foregoing, the mutual promises of the parties hereto and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.

 

Paragraph 4(A) shall be deleted in its entirety and the following Paragraph shall be added in its place: “Effective January 1, 2010, CSL shall pay to Employee a base salary of an annual rate of not less than $636,366 per annum, subject to annual adjustment on the anniversary of the Employment Commencement Date and paid in approximately equal installments no less frequently than semi-monthly. An annual bonus shall be paid as determined by the Compensation Committee. The Company shall deduct from Employee’s compensation all applicable local, state, Federal or foreign taxes, including, but not limited to, income tax, withholding tax, social security tax and pension contributions (if any).”

IN WITNESS WHEREOF, this Amendment has been duly executed on the 14 day of April, 2010.

 

 

 

 

 

 

COMPANY: CAPITAL SENIOR LIVING CORPORATION
 

 

 

By:  

/s/ David R. Brickman, VP

 

 

 

EMPLOYEE:
 

 

 

By:  

/s/ Lawrence A. Cohen  

 

 

 

Lawrence A. Cohen