Exhibit 10.5

 

$8,000,000.00 REVOLVING CREDIT LOAN

 

AMENDMENT NO. 2

 

TO

 

LOAN AND SECURITY AGREEMENT

 

originally dated as of August 31, 2000

 

by and among

 

HEALTHMONT, INC.,

HEALTHMONT OF GEORGIA, INC.

(dba Memorial Hospital of Adel and Memorial Convalescent Center),

HEALTHMONT OF TEXAS, INC.,

HEALTHMONT OF TEXAS I, LLC (dba Dolly Vinsant Memorial Hospital),

HEALTHMONT OF OREGON I, INC.,

HEALTHMONT OF OREGON II, INC.,

HEALTHMONT OF OREGON III, INC. (dba Woodland Park Medical Plaza),

HEALTHMONT OF OREGON V, LLC (dba Woodland Park Hospital),

HEALTHMONT OF OREGON IV, LLC (dba Eastmoreland Hospital), and

HEALTHMONT OF MISSOURI, INC. (dba Callaway County Community Hospital)

(collectively, “Borrower”)

 

and

 

HELLER HEALTHCARE FINANCE, INC.

(“Lender”)

 

Amended as of February 28, 2002

 

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AMENDMENT NO. 2 TO LOAN AND SECURITY AGREEMENT

 

THIS AMENDMENT NO. 2 TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is made
as of February 28, 2002, by and among HEALTHMONT, INC., a Tennessee corporation,
HEALTHMONT OF GEORGIA, INC., a Tennessee corporation (dba Memorial Hospital of
Adel and Memorial Convalescent Center), HEALTHMONT OF TEXAS, INC., a Tennessee
corporation, HEALTHMONT OF TEXAS I, LLC, a Tennessee limited liability company
(dba Dolly Vinsant Memorial Hospital), HEALTHMONT OF MISSOURI, INC., a Tennessee
corporation (dba Callaway County Community Hospital) (collectively, the
“Continuing Borrower”), HEALTHMONT OF OREGON I, INC., a Tennessee corporation,
HEALTHMONT OF OREGON II, INC., a Tennessee corporation, HEALTHMONT OF OREGON
III, INC., a Tennessee corporation (dba Woodland Park Medical Plaza), HEALTHMONT
OF OREGON V, LLC, a Tennessee limited liability company (dba Woodland Park
Hospital), and HEALTHMONT OF OREGON IV, LLC, a Tennessee limited liability
company (dba Eastmoreland Hospital) (collectively, the “Withdrawing Borrower”;
the Continuing Borrower and the Withdrawing Borrower are sometimes collectively
referred to herein as the “Borrower”), and HELLER HEALTHCARE FINANCE, INC., a
Delaware corporation (“Lender”).

 

RECITALS

 

A. Pursuant to that certain Loan and Security Agreement dated August 31, 2000 by
and among Borrower and Lender (as amended, restated, modified or supplemented
from time to time, the “Loan Agreement”), the parties have established certain
financing arrangements that allow Borrower to borrow funds from Lender in
accordance with the terms and conditions set forth in the Loan Agreement.

 

B. Borrower now wishes to effect the withdrawal of Withdrawing Borrower as a
Borrower under the Loan Agreement, and to make such further amendments as are
necessary to effect such transaction.

 

C. Capitalized terms used but not defined in this Amendment shall have the
meanings that are set forth in the Loan Agreement.

 

NOW, THEREFORE, in consideration of the premises set forth above, the terms and
conditions contained in this Amendment, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Lender and Borrower have agreed to the following amendments to the Loan
Agreement.

 

1. Withdrawal of Withdrawing Borrower. Lender, Continuing Borrower and
Withdrawing Borrower agree that Withdrawing Borrower shall no longer be party to
the Loan Agreement or the other Loan Documents and will not be bound by any of
the conditions, covenants, representations, warranties and other agreements set
forth in the Loan Agreement.

 

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2. Other Amendments to Loan Agreement. Section 9.4 shall be deleted in its
entirety and substituted with the following language:

 

“Section 9.4. Notices. Any notice or other communication required or permitted
under this Agreement shall be in writing and personally delivered, mailed by
registered or certified mail (return receipt requested and postage prepaid),
sent by telecopier (with a confirming copy sent by regular mail), or sent by
prepaid overnight courier service, and addressed to the relevant party at its
address set forth below, or at such other address as such party may, by written
notice, designate as its address for purposes of notice under this Agreement:

 

If to Borrower:

  

c/o Healthmont, Inc.

113 Seaboard Lane

Suite C-200

Franklin, Tennessee 37067

Attn: President

Telephone: (615) 250-7800

Telecopy: (615) 250-7802

If to Lender:

  

Heller Healthcare Finance, Inc.

2 Wisconsin Circle, Suite 400

Chevy Chase Maryland 20815

Attn: Chief Counsel

Telephone: (301) 664-9857

Telecopy: (331) 664-9866”

 

3. Confirmation of Representations and Warranties. Each of the Continuing
Borrowers hereby confirms that all of the representations and warranties set
forth in Article IV of the Loan Agreement are true and correct with respect to
the Continuing Borrowers, and specifically represents and warrants to Lender
that it has good and marketable title to all of its respective Collateral, free
and clear of any lien or security interest in favor of any other person or
entity.

 

4. Updated Schedules. As a condition precedent to Lender’s agreement to enter
into this Amendment, and in order for this Amendment to be effective, Continuing
Borrower shall revise, update and deliver to Lender all Schedules to the Loan
Agreement to (a) reflect updated and accurate information with respect to
Continuing Borrower, and (b) to update all other information as necessary to
make the Schedules previously delivered correct. Continuing Borrower hereby
represents and warrants that the information set forth on the attached Schedules
is true and correct as of the date of this Agreement. The attached Schedules are
hereby incorporated into the Loan Agreement as if originally set forth therein.

 

5. Costs. In connection with the execution and delivery of this Amendment and
the related amendment documents executed and delivered as of the date hereof,
Borrower shall unconditionally pay to the Lender a modification fee of $10,000.
In addition, Borrower shall be responsible for the payment of all costs of
Lender incurred in connection with the preparation of this Amendment, including
all reasonable fees of Lender’s in-house counsel. Borrower hereby authorizes
Lender to deduct all of such fees set forth in this Section 5 from the proceeds
of the next Revolving Credit Loan.

 

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6. Reference to the Effect on the Loan Agreement.

 

(a) Upon the effectiveness of this Amendment, each reference in the Loan
Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of
similar import shall mean and be a reference to the Loan Agreement as amended by
this Amendment.

 

(b) Except as specifically amended above, the Loan Agreement, and all other Loan
Documents, shall remain in full force and effect, and are hereby ratified and
confirmed.

 

(c) The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided in this Amendment, operate as a waiver of any
right, power or remedy of Lender, nor constitute a waiver of any provision of
the Loan Agreement, or any other documents, instruments and agreements executed
or delivered in connection with the Loan Agreement.

 

7. Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of Maryland.

 

8. Headings. Section headings in this Amendment are included for convenience of
reference only and shall not constitute a part of this Amendment for any other
purpose.

 

9. Counterparts. This Amendment may be executed in counterparts, and both
counterparts taken together shall be deemed to constitute one and the same
instrument.

 

[SIGNATURES APPEAR ON FOLLOWING PAGE]

 

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

 

LENDER:    

HELLER HEALTHCARE FINANCE, INC.,

a Delaware corporation

    By:   /s/    JOSEPH PRANDONI           (SEAL)    

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Name:

  JOSEPH PRANDONI
   

Title:

  VICE PRESIDENT     CONTINUING BORROWER:    

HEALTHMONT, INC.,

a Tennessee corporation

    By:   /s/    TIMOTHY S. HILL           (SEAL)    

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Name:

  Timothy S. Hill
   

Title:

  President    

HEALTHMONT OF GEORGIA, INC.,

a Tennessee corporation

    By:   /s/    TIMOTHY S. HILL           (SEAL)    

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Name:

  Timothy S. Hill
   

Title:

  President    

HEALTHMONT OF TEXAS, INC.,

a Tennessee corporation

    By:   /s/    TIMOTHY S. HILL           (SEAL)    

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Name:

  Timothy S. Hill
   

Title:

  President    

HEALTHMONT OF MISSOURI, INC.,

a Tennessee corporation

    By:   /s/    TIMOTHY S. HILL           (SEAL)    

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Name:

  Timothy S. Hill
   

Title:

  President    

 

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HEALTHMONT OF TEXAS I, LLC,

a Tennessee limited liability company

    By:   /s/    TIMOTHY S. HILL           (SEAL)    

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Name:

  Timothy S. Hill
   

Title:

  Chief Manager    

 

WITHDRAWING BORROWER:    

HEALTHMONT OF OREGON I , INC.,

a Tennessee corporation

    By:   /s/    TIMOTHY S. HILL           (SEAL)    

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Name:

  Timothy S. Hill
   

Title:

  President    

 

HEALTHMONT OF OREGON II, INC.,

a Tennessee corporation

    By:   /s/    TIMOTHY S. HILL           (SEAL)    

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Name:

  Timothy S. Hill
   

Title:

  President    

 

HEALTHMONT OF OREGON III, INC.,

a Tennessee corporation

    By:   /s/    TIMOTHY S. HILL           (SEAL)    

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Name:

  Timothy S. Hill
   

Title:

  President    

 

HEALTHMONT OF OREGON IV, LLC,

a Tennessee limited liability company

    By:   /s/    TIMOTHY S. HILL           (SEAL)    

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Name:

  Timothy S. Hill
   

Title:

  Chief Manager    

 

HEALTHMONT OF OREGON V, LLC,

a Tennessee limited liability company

    By:   /s/    TIMOTHY S. HILL           (SEAL)    

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Name:

  Timothy S. Hill
   

Title:

  Chief Manager    

 

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