Exhibit 10.1

 

June 19, 2015

 

Diplomat Pharmacy, Inc.,
as Borrower, and the other

Credit Parties

4100 S. Saginaw Street

Flint, Michigan 18507

Attention:  Sean Whelan,

Chief Financial Officer

Facsimile: (810) 282-0195

 

Re:                             Diplomat Pharmacy, Inc. —
Consent to Acquisition of Burman’s Apothecary, L.L.C and AmerisourceBergen Lien
Amendment

 

Ladies and Gentlemen:

 

Reference is made to the Second Amended and Restated Credit Agreement dated as
of April 1, 2015 (as amended, the “Credit Agreement”), by and among Diplomat
Pharmacy, Inc., a Michigan corporation (“Borrower”), the other Credit Parties
party thereto, and General Electric Capital Corporation, a Delaware corporation,
in its capacity as agent (in such capacity, “Agent”) for the several financial
institutions from time to time party thereto.  Capitalized terms used in this
letter and not otherwise defined herein shall have the respective meanings given
to them in the Credit Agreement.

 

Borrower has advised Agent and the Lenders that it intends to acquire 100% of
the membership interests of Burman’s Apothecary, L.L.C., a Pennsylvania limited
liability company (“Burman’s”) and its subsidiaries, pursuant to that certain
Membership Interest Purchase Agreement (as may be amended, restated,
supplemented or otherwise modified in accordance with the terms of the Credit
Agreement, as defined herein, the “Burman’s Purchase Agreement”) dated as of
June 19, 2015, by and among Borrower, Burman’s, Burman’s Media Pharmacy, LLC, a
Pennsylvania limited liability company, PharmTrack, LLC, a Nevada limited
liability company, SLB Holdings, Inc. and Steven L. Burman, John R. Regester,
and Cassandra Peleckis (the “Burman’s Acquisition”).  The total consideration
payable is $82,000,000 (as increased by pre-closing purchase price adjustments
for a tax gross up to sellers (estimated at approximately $800,000) and cash on
hand, and subject to a net working capital adjustment), of which $72,000,000
(subject to such adjustments) is payable in cash and $10,000,000 is payable in
common Stock of Borrower.

 

Pursuant to the definition of “Permitted Acquisition”, the total consideration
paid or payable (including without limitation, all transaction
costs, Indebtedness incurred, assumed and/or reflected on a consolidated balance
sheet of the Credit Parties and their Subsidiaries after giving effect to such
Acquisition and the maximum amount of all deferred payments, including
Contingent Acquisition Consideration for all Acquisitions consummated after the
Closing Date during any Fiscal Year shall not exceed $75,000,000 in the
aggregate for all such Acquisitions (the “Permitted Acquisition Fiscal Year
Cap”).  Borrower has informed the Agent and the Lenders that the total
consideration paid or payable pursuant to the Burman’s Acquisition will

 

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

 

cause the total consideration paid or payable for all Acquisitions consummated
after the Closing Date during the Fiscal Year ending December 31, 2015 to exceed
the Permitted Acquisition Fiscal Year Cap for the Fiscal Year ending
December 31, 2015.

 

In addition, Borrower has requested that Section 5.1(p) of the Credit Agreement
with respect to Liens in favor of AmerisourceBergen be amended and restated as
follows (the “AmerisourceBergen Lien Amendment”):

 

“(p) Liens in favor of AmerisourceBergen or any of its Affiliates that are from
time to time party to the AmerisourceBergen Intercreditor Agreement (including
by amendment or joinder) securing the AmerisourceBergen Indebtedness, subject to
the AmerisourceBergen Intercreditor Agreement; and”

 

Effective as of the date hereof, upon execution of this letter agreement by the
Agent, the Required Lenders and the Credit Parties and subject to the prior
satisfaction of all conditions specified in the definition of “Permitted
Acquisition” as set forth in the Credit Agreement, other than the Permitted
Acquisition Fiscal Year Cap for the Fiscal Year ending December 31, 2015, in
reliance upon the representations and warranties of the Credit Parties set forth
in the Credit Agreement and notwithstanding any provisions in the Credit
Agreement to the contrary, the Agent and the Lenders party hereto hereby
(i) waive compliance with the Permitted Acquisition Fiscal Year Cap for the
Fiscal Year ending December 31, 2015 solely with respect to the Burman’s
Acquisition and (ii) consent to and approve the AmerisourceBergen Lien Amendment
and authorize the Agent, on behalf of the Required Lenders, if it deems
appropriate, to execute an amendment to further memorialize such
AmerisourceBergen Lien Amendment.  In addition, Credit Parties hereby
acknowledge and agree that upon consummation of the Burman’s Acquisition, no
further Permitted Acquisitions may occur in the current Fiscal Year without
first obtaining the prior written consent of the Agent and Required Lenders, and
that the aggregate consideration paid in respect of the Burman’s Acquisition
will reduce dollar-for-dollar the aggregate amount available during the
remainder of the term of the Credit Agreement.

 

Except to the extent specifically set forth herein, this letter shall not
constitute an amendment or waiver by Agent or any Lender of any provisions of
the Credit Agreement or any other Loan Document, and all of the provisions of
the Credit Agreement and the other Loan Documents shall remain in full force and
effect to the extent in effect prior to the date hereof.  This letter may be
executed in any number of several counterparts, each of which shall be an
original, but all of which shall constitute one and the same letter agreement. 
Delivery of an executed counterpart of a signature page to this letter by
facsimile transmission shall be effective as delivery of a manually executed
counterpart thereof.  This letter shall be governed by, and construed and
enforced in accordance with, the laws of the State of New York applicable to
contracts made and performed in such state, without regard to the principles
thereof regarding conflict of laws.

 

[signature pages follow]

 

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

 

 

GENERAL ELECTRIC CAPITAL CORPORATION, as Agent, Swingline Lender and as a Lender

 

 

 

 

 

 

By:

/s/ Karen M. Dahlquist

 

Name:

Karen M. Dahlquist

 

Title:

Duly Authorized Signatory

 

Signature Page to Consent Letter — June 2015

 

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

 

 

GE CAPITAL BANK,

 

as a Lender

 

 

 

 

 

 

By:

/s/ Paul Sleet

 

Name:

Paul Sleet

 

Title:

Duly Authorized Signatory

 

Signature Page to Consent Letter — June 2015

 

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

 

 

COMERICA BANK,

 

as a Lender

 

 

 

 

 

 

By:

/s/ Michael H. Cliff

 

Name:

Michael H. Cliff

 

Title:

Vice President

 

Signature Page to Consent Letter — June 2015

 

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

 

 

JPMORGAN CHASE BANK, N.A.,

 

as a Lender

 

 

 

 

 

 

By:

/s/ Wieslaw R. Sliwinski

 

Name:

Wieslaw R. Sliwinski

 

Title:

Authorized Signatory

 

Signature Page to Consent Letter — June 2015

 

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

 

 

WELLS FARGO BANK, N.A.,

 

as a Lender

 

 

 

 

 

 

By:

/s/ Scott Sanford

 

Name:

Scott Sanford

 

Title:

Duly Authorize Signatory

 

Signature Page to Consent Letter — June 2015

 

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

 

 

BANK OF AMERICA, N.A.,

 

as a Lender

 

 

 

 

 

 

By:

/s/ Lori Ryan

 

Name:

Lori Ryan

 

Title:

Senior Vice President

 

Signature Page to Consent Letter — June 2015

 

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

 

 

CAPITAL ONE, N.A.,

 

as a Lender

 

 

 

 

 

 

By:

/s/ Clarke V. Bayless

 

Name:

Clarke V. Bayless

 

Title:

Vice President

 

Signature Page to Consent Letter — June 2015

 

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

 

 

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender

 

 

 

 

 

 

By:

/s/ Michaela Kenny

 

Name:

Michaela Kenny

 

Title:

Authorized Signatory

 

Signature Page to Consent Letter — June 2015

 

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

 

 

FIFTH THIRD BANK,

 

as a Lender

 

 

 

 

 

 

By:

/s/ Nathaniel E. Sher

 

Name:

Nathaniel E. Sher

 

Title:

Vice President

 

Signature Page to Consent Letter — June 2015

 

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

 

 

FIRSTMERIT BANK, N.A.,

 

as a Lender

 

 

 

 

 

 

 

By:

/s/ John Zimbo

 

Name:

John Zimbo

 

Title:

Vice President

 

Signature Page to Consent Letter — June 2015

 

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

 

 

FLAGSTAR BANK, FSB,

 

as a Lender

 

 

 

 

 

 

By:

/s/ Elizabeth K. Hausman

 

Name:

Elizabeth K. Hausman

 

Title:

First Vice President

 

Signature Page to Consent Letter — June 2015

 

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

 

 

THE HUNTINGTON NATIONAL BANK,

 

as a Lender

 

 

 

 

 

 

By:

/s/ Michael D. Marte

 

Name:

Michael D. Marte

 

Title:

Senior Vice President

 

Signature Page to Consent Letter — June 2015

 

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

 

 

TALMER BANK AND TRUST,

 

as a Lender

 

 

 

 

 

 

By:

/s/ Peggy Cummins

 

Name:

Peggy Cummins

 

Title:

Managing Director

 

Signature Page to Consent Letter — June 2015

 

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

 

ACKNOWLEDGED AND AGREED:

 

 

 

 

 

 

DIPLOMAT PHARMACY, INC.

 

 

 

 

By:

/s/ Philip R. Hagerman

 

 

Name:  Philip R. Hagerman

 

 

Title:    Chief Executive Officer

 

 

 

 

DIPLOMAT HEALTH SERVICES, LLC

 

DIPLOMAT SPECIALTY PHARMACY OF FLINT, LLC

 

DIPLOMAT SPECIALTY PHARMACY OF GRAND RAPIDS, LLC

 

DIPLOMAT SPECIALTY PHARMACY OF CHICAGO, LLC

 

DIPLOMAT SPECIALTY PHARMACY OF FT. LAUDERDALE, LLC

 

DIPLOMAT SPECIALTY PHARMACY OF SOUTHERN CALIFORNIA, LLC

 

DIPLOMAT SPECIALTY PHARMACY GREAT LAKES DISTRIBUTION CENTER, LLC

 

DIPLOMAT CORPORATE PROPERTIES, LLC

 

 

 

By: Diplomat Pharmacy, Inc., its member

 

 

 

 

By:

/s/ Philip R. Hagerman

 

Name:

Philip R. Hagerman

 

Title:

Chief Executive Officer

 

 

 

NAVIGATOR HEALTH SERVICES, LLC

 

DSP FLINT REAL ESTATE, LLC

 

DSP-BUILDING C, LLC

 

DIPLOMAT INFUSION SERVICES, LLC

 

DIPLOMAT HOLDING, LLC

 

DIPLOMAT HEALTH MANAGEMENT, LLC

 

 

 

 

By:

/s/ Philip R. Hagerman

 

Name:

Philip R. Hagerman

 

Title:

Manager

 

 

 

 

 

AMERICAN HOMECARE FEDERATION, INC.

 

 

 

 

By:

/s/ Jeff Rowe

 

Name:

Jeff Rowe

 

Title:

President

 

Signature Page to Consent Letter — June 2015

 

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

 

 

MEDPRO RX, INC.

 

 

 

 

By:

/s/ Jeffrey Rowe

 

Name:

Jeffrey Rowe

 

Title:

President

 

 

 

 

 

 

 

AMBASSADOR COMPOUNDING, LLC

 

ENVOY HEALTH MANAGEMENT, LLC

 

 

 

 

By:

/s/ Jeffrey Rowe

 

Name:

Jeffrey Rowe

 

Title:

Manager

 

 

 

 

 

 

BIORX, LLC

 

 

 

 

By:

/s/ Jeffrey Rowe

 

Name:

Jeffrey Rowe

 

Title:

Manager

 

 

 

 

 

DIPLOMAT BLOCKER, INC.

 

 

 

 

 

 

By:

/s/ Gary Kadlec

 

Name:

Gary Kadlec

 

Title:

President

 

Signature Page to Consent Letter —June 2015

 

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