Exhibit 10.1

SECOND AMENDMENT
TO AMENDED AND RESTATED CREDIT AGREEMENT

          This SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”), dated as of December 10, 2004, is by and among LINCARE HOLDINGS
INC., a Delaware corporation (the “Borrower”), each of the Borrower’s
Subsidiaries (individually a “Guarantor” and collectively the “Guarantors”;
together with the Borrower, individually a “Credit Party”, and collectively the
“Credit Parties”), the Required Lenders signatory hereto and BANK OF AMERICA, N.
A., as Agent for the Lenders (in such capacity, the “Agent”).

W I T N E S S E T H

          WHEREAS, the Credit Parties, the Lenders and the Agent have entered
into that certain Amended and Restated Credit Agreement dated as of April 25,
2002, as amended by that certain First Amendment to Amended and Restated Credit
Agreement dated as of June 4, 2003 (collectively, the “Existing Credit
Agreement”);

          WHEREAS, the Borrower has requested, and the Lenders have agreed, to
amend certain provisions of the Existing Credit Agreement as set forth
hereinbelow.

          NOW, THEREFORE, in consideration of the agreements hereinafter set
forth, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

PART I
DEFINITIONS

          SUBPART 1.1     Certain Definitions.  Unless otherwise defined herein
or the context otherwise requires, the following terms used in this Amendment,
including its preamble and recitals, have the following meanings:

                    “Amended Credit Agreement” means the Existing Credit
Agreement as amended hereby.

                    “Amendment No. 2 Effective Date” is defined in Subpart 3.1.

          SUBPART 1.2     Other Definitions.  Unless otherwise defined herein or
the context otherwise requires, terms used in this Amendment, including its
preamble and recitals, have the meanings provided in the Existing Credit
Agreement.

PART II
AMENDMENTS TO EXISTING CREDIT AGREEMENT

          Effective on (and subject to the occurrence of) the Amendment No. 2
Effective Date, the Existing Credit Agreement is hereby amended in accordance
with this Part II. 

          SUBPART 2.1     Amendments to Section 1.1.  Section 1.1 of the
Existing Credit Agreement is hereby amended in the following respects:

 

 

 

(a)     The definition of “Consolidated Scheduled Funded Debt Payments” is
hereby in its entirety to read as follows:

 

 

 

          “Consolidated Scheduled Funded Debt Payments” means, as of the end of
each fiscal quarter of the Consolidated Parties, for the Consolidated Parties on
a consolidated basis, the sum of all scheduled payments of principal on Funded
Indebtedness for the applicable period ending on such date (including the
principal component of payments due on Capital Leases during the applicable
period ending on such date); it being understood that Consolidated Scheduled
Funded Debt Payments shall not include:  (i) voluntary prepayments or the
mandatory prepayments required pursuant to Section 3.3 or (ii) scheduled
payments of principal with respect to Deferred Acquisition Obligations.

 

 

 

(b)     The following new definition of “Deferred Acquisition Obligations” is
hereby added to Section 1.1 of the Existing Credit Agreement in appropriate
alphabetical order:

 

 

 

          “Deferred Acquisition Obligations” means all obligations of such
Person issued or assumed as the deferred purchase price of Property or services
purchased by such Person in connection with a Permitted Acquisition which appear
as liabilities on a balance sheet of such Person.

          SUBPART 2.2     Amendments to Section 7.11(a).  Section 7.11(a) of the
Existing Credit Agreement is hereby amended in its entirety to read as follows:

 

          (a)     Fixed Charge Coverage Ratio.  The Fixed Charge Coverage Ratio,
as of the last day of any fiscal quarter of the Consolidated Parties shall be
greater than or equal to the ratio set forth below opposite such fiscal quarter:

 

Closing Date through September 30, 2005

2.75 to 1.0

 

October 1, 2005 and thereafter

2.25 to 1.0

          SUBPART 2.3     Amendments to Section 8.7.  Section 8.7 of the
Existing Credit Agreement is hereby amended in its entirety to read as follows:

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8.7

Restricted Payments.

 

 

 

 

 

          The Credit Parties will not permit any Consolidated Party to, directly
or indirectly, declare, order, make or set apart any sum for or pay any
Restricted Payment, except, so long as no Default or Event of Default shall have
occurred or would occur as a result thereof, (a) to make dividends payable
solely in the same class of Capital Stock of such Person, (b) to make dividends
or other distributions payable to any Credit Party (directly or indirectly
through Subsidiaries), (c) repurchases, distributions, dividends or redemptions
by the Borrower in respect of its Capital Stock, provided that the aggregate
price for all such repurchases, distributions, dividends or redemptions after
December 10, 2004  shall not exceed $300,000,000 and (d) as permitted by
Section 8.8.

PART III
CONDITIONS TO EFFECTIVENESS

          SUBPART 3.1     Amendment No. 2 Effective Date.  This Amendment shall
be and become effective as of December 10, 2004 (the “Amendment No. 2 Effective
Date”) when all of the conditions set forth in this Part III shall have been
satisfied, and thereafter this Amendment shall be known, and may be referred to,
as “Amendment No. 2.”

          SUBPART 3.2     Execution of Counterparts of Amendment.  The Agent
shall have received counterparts of this Amendment, which collectively shall
have been duly executed on behalf of each of the Borrower, the Guarantors and
the Required Lenders.

          SUBPART 3.3     Fees and Expenses.  The Borrower has paid all fees and
expenses incurred in connection with the negotiation, preparation, execution and
delivery of this Agreement and the other transactions contemplated herein
including, without limitation, the legal fees and expenses of Moore & Van Allen
PLLC, counsel to the Agent provided an invoice therefore has been submitted to
Borrower on or prior to the Amendment No. 2 Effective Date.

          SUBPART 3.4     Other Items.  The Agent shall have received such other
documents, agreements or information which may be reasonably requested by the
Agent.

PART IV
MISCELLANEOUS

          SUBPART 4.1     Representations and Warranties.  The Borrower hereby
represents and warrants to the Agent and the Lenders that, after giving effect
to this Amendment, (a) no Default or Event of Default exists under the Credit
Agreement or any of the other Credit Documents and (b) the representations and
warranties set forth in Section 6 of the Existing Credit Agreement are, subject
to the limitations set forth therein, true and correct in all material respects
as of the date hereof (except for those which expressly relate to an earlier
date).

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          SUBPART 4.2     Reaffirmation of Credit Party Obligations.  Each
Credit Party hereby ratifies the Credit Agreement and acknowledges and reaffirms
(a) that it is bound by all terms of the Credit Agreement applicable to it and
(b) that it is responsible for the observance and full performance of its
respective Credit Party Obligations.

          SUBPART 4.3     Cross-References.  References in this Amendment to any
Part or Subpart are, unless otherwise specified, to such Part or Subpart of this
Amendment.

          SUBPART 4.4     Instrument Pursuant to Existing Credit Agreement. 
This Amendment is a Credit Document executed pursuant to the Existing Credit
Agreement and shall (unless otherwise expressly indicated therein) be construed,
administered and applied in accordance with the terms and provisions of the
Existing Credit Agreement.

          SUBPART 4.5     References in Other Credit Documents.  At such time as
this Amendment No. 2 shall become effective pursuant to the terms of
Subpart 3.1, all references in the Credit Documents to the “Credit Agreement”
shall be deemed to refer to the Credit Agreement as amended by this Amendment
No. 2.

          SUBPART 4.6     Counterparts/Telecopy.  This Amendment may be executed
by the parties hereto in several counterparts, each of which shall be deemed to
be an original and all of which shall constitute together but one and the same
agreement.  Delivery of executed counterparts of the Amendment by telecopy shall
be effective as an original and shall constitute a representation that an
original shall be delivered.

          SUBPART 4.7     Governing Law.  THIS AMENDMENT SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

          SUBPART 4.8     Successors and Assigns.  This Amendment shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

          SUBPART 4.9     General.  Except as amended hereby, the Existing
Credit Agreement and all other Credit Documents shall continue in full force and
effect.

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          IN WITNESS WHEREOF, each of the parties hereto has caused a
counterpart of this Amendment to be duly executed and delivered as of the date
first above written.

BORROWER:

LINCARE HOLDINGS INC.,

 

a Delaware corporation

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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GUARANTORS:

LINCARE INC.,

 

a Delaware corporation

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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LINCARE PROCUREMENT INC.,

 

a Delaware corporation

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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LINCARE ASSET MANAGEMENT LP,

 

a Nevada limited partnership

 

 

 

 

By:

LINCARE HOLDINGS INC., a

 

 

Delaware corporation, its general

 

 

partner

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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LINCARE OF NEW YORK INC.,

 

a New York corporation

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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LINCARE PHARMACY SERVICES INC.,

 

a Delaware corporation

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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LINCARE LICENSING INC.,

 

a Delaware corporation

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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CONVACARE SERVICES INC.,

 

an Indiana corporation

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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MED 4 HOME INC.,

 

a Delaware corporation

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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ALPHA RESPIRATORY, INC.,

 

a Delaware corporation

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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HEALTH CARE SOLUTIONS AT HOME INC.,

 

a Delaware corporation

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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AGENT:

BANK OF AMERICA, N.A.,

 

as Agent

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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LENDERS:

BANK OF AMERICA, N.A.,

 

as a Lender

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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BANK LEUMI LE-ISRAEL B.M., MIAMI AGENCY,

 

as a Lender

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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SCOTIABANC, INC.,

 

as a Lender

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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CREDIT LYONNAIS NEW YORK BRANCH,

 

as a Lender

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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U.S. BANK NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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NATIONAL CITY BANK OF KENTUCKY,

 

as a Lender

 

 

 

 

By:

 

 

 

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Name:

 

 

 

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Title:

 

 

 

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