Exhibit 10.26

 

Execution Copy

 

AMENDMENT NO. 4

TO

BRIDGE LOAN AGREEMENT

 

AMENDMENT NO. 4, dated as of September 30, 2005 (this “Amendment”), to the
Bridge Loan Agreement, dated as of June 25, 2002, among CONCENTRA INC., as the
Borrower, CITICORP NORTH AMERICA, INC., as Lender and the Administrative Agent,
and the other Lenders party thereto from time to time (as amended, supplemented
or otherwise modified from time to time, the “Loan Agreement”).

 

W I T N E S S E T H :

 

WHEREAS, the Borrower and Operating Co. have advised the Administrative Agent
and the Lenders that Operating Co. and the Borrower intend to enter into a new
Operating Co. Credit Agreement, dated as of September 30, 2005, by and among
Operating Co., as borrower, the Borrower, as guarantor and the several banks and
financial institutions or entities party thereto from time to time as lenders,
issuers and agents (the “Operating Co. Credit Agreement”) pursuant to which the
lenders thereunder will extend loans and issue letters of credit in the
aggregate original principal amount of up to $675,000,000 to Operating Co.; and

 

WHEREAS, Operating Co. intends to use the Net Proceeds (as defined below) of the
Operating Co. Credit Agreement to, among other things, (A) repay the existing
Operating Co. Credit Facility, dated as of August 13, 2003, by and among
Operating Co., as borrower, the Borrower, as guarantor and the several banks and
financial institutions or entities party thereto from time to time as lenders,
issuers and agents (the “Existing Operating Co. Credit Facility Repayment”) and
(B) pay a portion of the cash consideration for the acquisition by Operating Co.
of Beech Street Corporation, a Delaware corporation (“Beech”), pursuant to that
certain Agreement and Plan of Merger, dated as of August 2, 2005, by and among
Operating Co., Island Acquisition Corp. (“Island”), a Wholly-Owned Subsidiary of
Operating Co. and Beech, by which Island will merge with and into Beech, with
Beech being the surviving corporation and becoming a Wholly-Owned Subsidiary of
Operating Co. (the “Beech Acquisition” and together with the Existing Operating
Co. Credit Facility Repayment, the “Transactions”); and

 

WHEREAS, the Borrower has requested the Lenders (i) waive compliance with
Sections 2.6 (Mandatory Prepayments), 7.6 (Prepayment and Cancellation of
Indebtedness) and 7.7 (Restriction on Fundamental Changes; Permitted
Acquisitions) of the Loan Agreement to the extent necessary in order to permit
the Borrower and Operating Co. to consummate the Transactions and (ii) amend the
definition of Operating Co. Credit Facility, in each case, as provided herein;
and

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WHEREAS, the Lenders signatory hereto have agreed to (i) waive certain
provisions of the Loan Agreement to enable the Borrower and its Subsidiaries to
consummate the Transactions on the terms and subject to the conditions herein
provided and (ii) amend the definition of Operating Co. Credit Facility as
further provided herein.; and

 

WHEREAS, pursuant to Section 10.1(a) of the Loan Agreement, the consent of the
Requisite Lenders is required to effect the waivers and amendments set forth
herein.

 

NOW, THEREFORE, in consideration of the foregoing premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree to the following:

 

Section 1. Defined Terms.

 

(a) Capitalized terms used, but not otherwise defined, herein have the meanings
set forth in the Loan Agreement.

 

(b) “Net Proceeds” as used in this Amendment, shall mean the proceeds of the
borrowings under the Operating Co. Credit Agreement less any and all transaction
costs and expenses incurred by the Borrower or Operating Co. in connection with
the Transactions.

 

Section 2. Amendments. As of the Effective Date (as hereinafter defined), the
Loan Agreement is amended by deleting the definition of “Operating Co. Credit
Facility” in Section 1.1 of the Loan Agreement in its entirety and inserting in
lieu thereof the following language:

 

“Operating Co. Credit Facility” means the Credit Agreement, dated as of
September 30, 2005, by and among Operating Co., the Borrower, the several banks
and other financial institutions or entities party thereto from time to time as
lenders and agents, as amended, supplemented, otherwise modified or refinanced
from time to time and giving effect to any waiver or consent granted thereunder.

 

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Section 3. Waivers. As of the Effective Date, the Lenders waive compliance (i)
with the requirements of Section 2.6 (Mandatory Prepayments) and Section 7.6
(Prepayment and Cancellation of Indebtedness) of the Loan Agreement to the
extent the Net Proceeds are used to consummate the Transactions and (ii) with
the requirements of Section 7.7 (Restriction on Fundamental Changes; Permitted
Acquisitions) of the Loan Agreement to the extent necessary to consummate the
Beech Acquisition.

 

The waivers herein contained are expressly limited as follows: (x) the waivers
are limited solely to consummation of the Transactions and (y) the waivers are
limited, one-time waivers, and nothing contained herein shall obligate the
Lenders to grant any additional or future waivers with respect to, or in
connection with, any provision of any Loan Document.

 

Section 4. Representations and Warranties. Each of the Borrower and the
Guarantors hereby jointly and severally represents and warrants to the
Administrative Agent and each Lender as follows:

 

(a) After giving effect to this Amendment, each of the representations and
warranties of such Person contained in the Loan Agreement and in the other Loan
Documents are true and correct in all material respects on and as of the
Effective Date as though made on and as of such date, except to the extent that
any such representation or warranty expressly relates to an earlier date and
except for changes therein expressly permitted by the Loan Agreement.

 

(b) After giving effect to this Amendment, no Default or Event of Default has
occurred and is continuing as of the date hereof and the Effective Date.

 

(c) The execution, delivery and performance by such Person of this Amendment
have been duly authorized by all requisite action on the part of such Person and
will not violate any of its Constituent Documents.

 

(d) This Amendment has been duly executed and delivered by such Person and each
of this Amendment and the Loan Agreement, as amended hereby, constitutes the
legal, valid and binding obligation of such Person, enforceable against such
Person in accordance with their terms, subject to applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar laws
affecting creditors’ rights and remedies generally and to general principles of
equity (regardless of whether enforcement is sought in a proceeding at law or in
equity).

 

Section 5. Condition to Effectiveness. This Amendment shall become effective as
of the date (the “Effective Date”) on which the Administrative Agent receives
counterparts of this Amendment executed by each of the Borrower, the Guarantors,
the Administrative Agent and the Requisite Lenders. The Administrative Agent
shall promptly notify the Borrower upon its receipt of all such executed
counterparts.

 

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Section 6. Reference to and Effect on the Loan Documents.

 

(a) As of the Effective Date, each reference in the Loan Agreement and the other
Loan Documents to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of
like import, shall mean and be a reference to the Loan Agreement as amended
hereby.

 

(b) Except to the extent amended hereby, the provisions of the Loan Agreement
and all of the 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 herein, operate as a waiver of any right, power or
remedy of the Lenders or the Administrative Agent under any of the Loan
Documents or constitute a waiver of any provision of any of the Loan Documents.

 

Section 7. Execution in Counterparts. This Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same instrument. Receipt by
the Administrative Agent of a facsimile copy of an executed signature page
hereof shall constitute receipt by the Administrative Agent of an executed
counterpart of this Amendment.

 

Section 8. Governing Law. This Amendment shall be governed by and construed and
enforced in accordance with the law of the State of New York.

 

[Signature Pages to Follow]

 

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IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of
the date first above written.

 

Administrative Agent and Lender: CITICORP NORTH AMERICA, INC. By:  

/s/ Hector Guenther

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Name:   Hector Guenther Title:   Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 TO CONCENTRA, INC. BRIDGE LOAN AGREEMENT]

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Lenders:

CREDIT SUISSE, Cayman Islands Branch (formerly

known as CREDIT SUISSE FIRST BOSTON, acting

through its Cayman Islands Branch)

By:  

/s/ David Dodd

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Name:   David Dodd Title:   Vice President By:  

/s/ Mikhail Faybusovich

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Name:   Mikhail Faybusovich Title:   Associate

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 TO CONCENTRA, INC. BRIDGE LOAN AGREEMENT]

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Borrower: CONCENTRA INC. By:  

/s/ Thomas E. Kiraly

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Name:   Thomas E. Kiraly Title:   Executive Vice President and Treasurer
Guarantors: WELSH, CARSON, ANDERSON & STOWE VIII, L.P. By:  

WCAS VIII Associates LLC,

its General Partner

By:  

/s/ Jonathan Rather

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Name:   Jonathan Rather Title:   Managing Member WCAS CAPITAL PARTNERS III, L.P.
By:   WCAS CP III ASSOCIATES L.L.C.,     its General Partner By:  

/s/ Jonathan Rather

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Name:   Jonathan Rather Title:   Managing Member

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 TO CONCENTRA, INC. BRIDGE LOAN AGREEMENT]