EXHIBIT 10.65
EXECUTION COPY
AMENDMENT NO. 3 TO AMENDED AND RESTATED CREDIT AGREEMENT
AMENDMENT dated as of December 20, 2002 to the Amended and Restated
Credit Agreement dated as of April 25, 2001 (as amended prior to the date
hereof, the "CREDIT AGREEMENT") among XXXXXXX ENTERPRISES, INC. (with its
successors, the "BORROWER"), the BANKS listed on the signature pages thereof,
JPMORGAN CHASE BANK (formerly known as The Chase Manhattan Bank, successor by
merger to Xxxxxx Guaranty Trust Company of New York), as Issuing Bank (with its
successors in such capacity, the"ISSUING BANK"), and JPMORGAN CHASE BANK, as
Administrative Agent (the "ADMINISTRATIVE AGENT").
WITNESSETH:
WHEREAS, the parties hereto desire to amend the Credit Agreement as set
forth herein;
NOW, THEREFORE, the parties hereto agree as follows:
SECTION 1. Defined Terms; References. Unless otherwise specifically
defined herein, each term used herein which is defined in the Credit Agreement
has the meaning assigned to such term in the Credit Agreement. Each reference to
"hereof", "hereunder", "herein"and "hereby" and each other similar reference and
each reference to "this Agreement" and each other similar reference contained in
the Credit Agreement shall, after this Amendment becomes effective, refer to the
Credit Agreement as amended hereby.
SECTION 2. Definition of Amendment No. 3. Section 1.01 of the Credit
Agreement is hereby amended by adding, in appropriate alphabetical order, the
following definition of "Amendment No. 3":
"AMENDMENT NO. 3" means Amendment No. 3 to Amended and Restated Credit
Agreement dated as of December 20, 2002 among the Borrower, the Banks, the
Issuing Bank and the Administrative Agent.
SECTION 3. Definition of Consolidated EBITDA. The definition of
"Consolidated EBITDA" in Section 1.01 of the Credit Agreement is amended to read
in full as follows:
"CONSOLIDATED EBITDA" means, for any period, Consolidated Net Income of
the Borrower and its Consolidated Subsidiaries for such period plus, without
duplication, any amounts deducted in determining such Consolidated Net Income in
respect of (a) Consolidated Interest Charges for such period, (b) Consolidated
Tax Charges for such period, (c) expenses for such period of the types
classified as "depreciation and amortization" on the consolidated statement of
operations included in the Base Financials, (d) non-cash charges for such period
under FASB Statement No. 142, Goodwill and Other Intangible Assets, (e) non-cash
expenses for such period arising from the grant of stock options to officers,
directors and employees of the Borrower and its Consolidated Subsidiaries and
(f) non-cash charges in the fiscal quarter ending December 31, 2002 arising from
the Borrower's change in its methodology for establishing patient liability
reserves from a discounted to a non-discounted basis; provided that, unless all
of the Banks shall have consented to Amendment No. 3, for purposes of the
definition of Pricing Ratio contained in the Pricing Schedule (and the
definition of Consolidated EBITDAR contained therein), Consolidated EBITDA shall
be calculated without regard to clauses (d), (e) and (f) above.
SECTION 4. Amendment of Minimum Consolidated Net Worth Covenant.
Section 5.05 of the Credit Agreement is amended to read in full as follows:
SECTION 5.05. Minimum Consolidated Net Worth. Consolidated Net
Worth shall not be less than:
(a) on any date prior to December 31, 2002, an amount equal to
85% of Consolidated Net Worth at December 31, 2001 plus (i)
50% of the aggregate positive Consolidated Net Income
(excluding any consolidated net loss) of the Borrower and its
Consolidated Subsidiaries for each fiscal quarter ending after
December 31, 2001 plus (ii) 50% of the aggregate net proceeds,
including the fair market value of property other than cash
(as determined in good faith by the Borrower's board of
directors), received by the Borrower from the issuance and
sale after December 31, 2001 of any capital stock of the
Borrower (other than the proceeds of any issuance and sale of
any capital stock (x) to a Subsidiary or (y) which is required
to be redeemed, or is redeemable at the option of the holder,
if certain events or conditions occur or exist or otherwise)
or in connection with the conversion or exchange of any Debt
of the Borrower into capital stock of the Borrower after
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December 31, 2001 plus (iii) the excess (if any) of the aggregate
amount of Specified 2001 Charges (exclusive of charges against reserves
established on or prior to September 30, 2001) over $290,000,000; and
(b) on any date on or after December 31, 2002, an amount equal to (i)
the greater of (x) 85% of Consolidated Net Worth at December 31, 2002
and (y) $135,000,000 plus (ii) 50% of the aggregate positive
Consolidated Net Income (excluding any consolidated net loss) of the
Borrower and its Consolidated Subsidiaries for each fiscal quarter
ending after December 31, 2002 plus (iii) 50% of the aggregate net
proceeds, including the fair market value of property other than cash
(as determined in good faith by the Borrower's board of directors),
received by the Borrower from the issuance and sale after December 31,
2002 of any capital stock of the Borrower (other than the proceeds of
any issuance and sale of any capital stock (x) to a Subsidiary or (y)
which is required to be redeemed, or is redeemable at the option of the
holder, if certain events or conditions occur or exist or otherwise) or
in connection with the conversion or exchange of any Debt of the
Borrower into capital stock of the Borrower after December 31, 2002.
SECTION 5. Consent to Amendment of Pledge Agreement and Subsidiary
Guaranty. The Banks party hereto hereby consent to (i) the amendment of the
Pledge Agreement set forth in Amendment No. 2 to Amended and Restated Pledge
Agreement dated as of December 20, 2002 among the Borrower, Xxxxxxx Health,
Xxxxxxx Enterprises - Pennsylvania, Inc. and the Administrative Agent and (ii)
the amendment of the Subsidiary Guaranty set forth in Amendment No. 2 to Amended
and Restated Subsidiary Guaranty dated as of December 20, 2002.
SECTION 6. Representations. (a) The Borrower represents and warrants
that (i) the representations and warranties of the Borrower set forth in Article
4 of the Credit Agreement will be true on and as of the Amendment No. 3
Effective Date and (ii) no Default will have occurred and be continuing on such
date.
(b) Each Subsidiary Guarantor represents and warrants that the
representations and warranties set forth in Article 3 of the Amended and
Restated Subsidiary Guaranty dated as of April 25, 2001 (as amended through to
the Amendment No. 3 Effective Date) among the Borrower and the Subsidiaries of
the Borrower party thereto will be true on and as of the Amendment No. 3
Effective Date.
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SECTION 7. Governing Law. This Amendment shall be governed by and
construed in accordance with the laws of the State of New York.
SECTION 8. Counterparts. This Amendment may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.
SECTION 9. Effectiveness. . This Amendment shall become effective as of
the date hereof on the date when the following conditions are met (the
"AMENDMENT NO. 3 EFFECTIVE DATE"):
(a) the Administrative Agent shall have received from each of the
Borrower, the Subsidiary Guarantors, and the Required Banks a counterpart hereof
signed by such party or facsimile or other written confirmation (in form
satisfactory to the Administrative Agent) that such party has signed a
counterpart hereof;
(b) the Administrative Agent shall have received (i) from each of the
Borrower, Xxxxxxx Health and Xxxxxxx Enterprises-Pennsylvania, Inc. a
counterpart of Amendment No. 2 to Amended and Restated Pledge Agreement dated as
of December 20, 2002 signed by such party and (ii) from each of the Borrower and
the Subsidiary Guarantors a counterpart of Amendment No. 2 to Amended and
Restated Subsidiary Guaranty dated as of December 20, 2002 signed by such party
(or, in either case, facsimile or other written confirmation (in form
satisfactory to the Administrative Agent) that such party has signed a
counterpart thereof);
(c) The Administrative Agent shall have received a favorable written
opinion of each of (i) Xxxx Xxxxx, General Counsel - Corporate of the Borrower,
and (ii) Weil, Gotshal & Xxxxxx LLP, in each case covering such matters as the
Required Banks shall reasonably request (including, without limitation,
non-contravention of principal debt agreements), and in each case in form and
substance satisfactory to the Administrative Agent;
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of the date first above written.
XXXXXXX ENTERPRISES, INC.
By:
-----------------------------
Title:
SUBSIDIARY GUARANTORS:
4F FUNDING, INC. (f/k/a Xxxxxxx Enterprises
- Oklahoma, Inc.)
AEDON STAFFING, LLC
AEDON HOMECARE, LLC
AEGIS THERAPIES, INC. (f/k/a
Xxxxxxx Rehabilitation, Inc.)
AEGIS THERAPIES-FLORIDA, INC.
(f/k/a AEGIS-Florida, Inc.)
AGI-CAMELOT, INC.
ARBORLAND MANAGEMENT
COMPANY, INC.
XXXXXXX - ALTOONA HOLDINGS, LLC
XXXXXXX- XXXXX VISTA HOLDING, INC.
XXXXXXX- CAMP XXXX HOLDINGS, LLC
XXXXXXX - CLARION HOLDINGS, LLC
XXXXXXX - FITCHBURG HOLDINGS, LLC
XXXXXXX - MELROSE HOLDINGS, LLC
XXXXXXX - XXXXXX HOLDINGS, LLC
XXXXXXX - INDIANAPOLIS, LLC
XXXXXXX - MISSOURI VALLEY
HOLDING, INC.
XXXXXXX - XXXXXX HOLDINGS, LLC
XXXXXXX - RAPID CITY HOLDING, INC.
XXXXXXX - XXXXXX HOLDINGS, LLC
XXXXXXX - CLINICAL, INC.
XXXXXXX ENTERPRISES
INTERNATIONAL LIMITED
XXXXXXX ENTERPRISES -
ALABAMA, INC.
XXXXXXX ENTERPRISES -
ARIZONA, INC.
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XXXXXXX ENTERPRISES -
ARKANSAS, INC.
XXXXXXX ENTERPRISES -
CALIFORNIA, INC.
XXXXXXX ENTERPRISES -
COLORADO, INC.
XXXXXXX ENTERPRISES -
CONNECTICUT, INC.
XXXXXXX ENTERPRISES -
DELAWARE, INC.
XXXXXXX ENTERPRISES -
DISTRIBUTION SERVICES, INC.
XXXXXXX ENTERPRISES - DISTRICT OF
COLUMBIA, INC.
XXXXXXX ENTERPRISES -
FLORIDA, INC.
XXXXXXX ENTERPRISES -
GARDEN TERRACE, INC.
XXXXXXX ENTERPRISES -
GEORGIA, INC.
XXXXXXX ENTERPRISES - HAWAII, INC.
XXXXXXX ENTERPRISES - IDAHO, INC.
XXXXXXX ENTERPRISES - ILLINOIS, INC.
XXXXXXX ENTERPRISES -
INDIANA, INC.
XXXXXXX ENTERPRISES - IOWA, INC.
XXXXXXX ENTERPRISES - KANSAS, LLC
(successor to Xxxxxxx Enterprises -
Kansas, Inc.)
XXXXXXX ENTERPRISES -
KENTUCKY, INC.
XXXXXXX ENTERPRISES -
LOUISIANA, INC.
XXXXXXX ENTERPRISES - MAINE, INC.
XXXXXXX ENTERPRISES -
MARYLAND, INC.
XXXXXXX ENTERPRISES -
MASSACHUSETTS, INC.
XXXXXXX ENTERPRISES -
MICHIGAN, INC.
XXXXXXX ENTERPRISES -
MINNESOTA, LLC (successor to
Xxxxxxx Enterprises - Minnesota, Inc.)
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XXXXXXX ENTERPRISES -
MISSISSIPPI, INC.
XXXXXXX ENTERPRISES -
MISSOURI, INC.
XXXXXXX ENTERPRISES -
MONTANA, INC.
XXXXXXX ENTERPRISES -
NEBRASKA, INC.
XXXXXXX ENTERPRISES -
NEVADA, INC.
XXXXXXX ENTERPRISES - NEW
HAMPSHIRE, INC.
XXXXXXX ENTERPRISES - NEW
JERSEY, INC.
XXXXXXX ENTERPRISES - NEW
MEXICO, INC.
XXXXXXX ENTERPRISES - NORTH
CAROLINA, INC.
XXXXXXX ENTERPRISES - NORTH
DAKOTA, INC.
XXXXXXX ENTERPRISES - OHIO, INC.
XXXXXXX ENTERPRISES - OREGON,
INC.
XXXXXXX ENTERPRISES -
PENNSYLVANIA, INC.
XXXXXXX ENTERPRISES - RHODE
ISLAND, INC.
XXXXXXX ENTERPRISES - SOUTH
CAROLINA, INC.
XXXXXXX ENTERPRISES - TENNESSEE,
INC.
XXXXXXX ENTERPRISES - TEXAS, INC.
XXXXXXX ENTERPRISES - UTAH, INC.
XXXXXXX ENTERPRISES - VERMONT, INC.
XXXXXXX ENTERPRISES - VIRGINIA, INC.
XXXXXXX ENTERPRISES -
WASHINGTON, INC.
XXXXXXX ENTERPRISES - WEST
VIRGINIA, INC.
XXXXXXX ENTERPRISES - WISCONSIN,
INC.
XXXXXXX ENTERPRISES - WYOMING, INC.
XXXXXXX HEALTH AND
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REHABILITATION SERVICES, INC.
XXXXXXX HEALTHCARE, LLC
XXXXXXX HEALTHCARE - CALIFORNIA,
INC.
XXXXXXX HOLDINGS I, INC.
XXXXXXX INDEMNITY, LTD.
XXXXXXX MANOR INC. OF HAWAII
XXXXXXX REAL ESTATE HOLDINGS, INC.
XXXXXXX SAVANA CAY MANOR, INC.
BEVRD, LLC
CARROLLTON PHYSICAL THERAPY
CLINIC, INC.
CERES OXYGEN SERVICES, LLC
CERES STRATEGIES, INC. (f/k/a/ Xxxxxxx
Healthcare Acquisition, Inc.)
COMMERCIAL MANAGEMENT, INC.
COMMUNITY CARE, INC.
COMPASSION AND PERSONAL CARE
SERVICES, INC.
EASTERN HOME HEALTH SUPPLY &
EQUIPMENT CO., INC.
GREENVILLE REHABILITATION
SERVICES, INC.
HALLMARK CONVALESCENT HOMES, INC.
HOMECARE PREFERRED CHOICE, INC.
HOME HEALTH AND REHABILITATION
SERVICES, INC.
HOSPICE OF EASTERN CAROLINA, INC.
HOSPICE PREFERRED CHOICE, INC.
XXXXX CARE RESOURCE, LLC
LAS COLINAS PHYSICAL THERAPY
CENTER, INC.
LIBERTY NURSING HOMES,
INCORPORATED
MATRIX HEALTHCARE SERVICES, LLC
MATRIX OCCUPATIONAL HEALTH, INC.
MATRIX REHABILITATION, INC.
MATRIX WELLNESS, LLC
MATRIX REHABILITATION -
DELAWARE, INC.
MATRIX REHABILITATION - GEORGIA,
INC.
MATRIX REHABILITATION -
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MARYLAND, INC.
MATRIX REHABILITATION - OHIO, INC.
MATRIX REHABILITATION - SOUTH
CAROLINA, INC.
MATRIX REHABILITATION - TEXAS, INC.
MEDICAL ARTS HEALTH FACILITY OF
LAWRENCEVILLE, INC.
MODERNCARE OF LUMBERTON, INC.
NEBRASKA CITY S-C-H, INC.
NORTH DALLAS PHYSICAL THERAPY
ASSOCIATES, INC.
NURSING HOME OPERATORS, INC.
XXXXXXXX HEALTH CARE, INC.
SOUTH ALABAMA NURSING HOME, INC.
SOUTH DAKOTA - XXXXXXX
ENTERPRISES, INC.
SPECTRA HEALTHCARE ALLIANCE, INC.
TAR HEEL INFUSION COMPANY, INC.
THE PARKS PHYSICAL THERAPY AND
WORK HARDENING CENTER, INC.
THERAPHYSICS CORP
THERAPHYSICS PARTNERS OF
COLORADO, INC.
THERAPHYSICS PARTNERS OF TEXAS,
INC.
THERAPHYSICS PARTNERS OF
WESTERN PENNSYLVANIA, INC.
TMD DISPOSITION COMPANY
VANTAGE HEALTHCARE
CORPORATION
All by:
-----------------------------
Title:
9
JPMORGAN CHASE BANK (formerly known as The Chase
Manhattan Bank successor by merger to Xxxxxx Guaranty
Trust Company of New York)
By:
----------------------------------
Title:
BANK OF AMERICA, N.A.
By:
----------------------------------
Title:
THE BANK OF NEW YORK
By:
----------------------------------
Title:
BANK OF MONTREAL
By:
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Title:
GENERAL ELECTRIC CAPITAL CORPORATION
By:
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Title:
10
